Monday, March 17, 2008

Is Motorola’s CEO in deep trouble?

As Edward Zander Motorola's CEO is in deep troublesecond-quarter sales at Motorola – the world’s second-biggest maker of mobile phones – fell way short of what the company’s CEO Edward Zander had predicted in April, there’s a buzz in industry circles that Zander’s job may be in a danger. Motorola’s sales fell to between $8.6 billion and $8.7 billion – much below the $9.4 billion Zander had anticipated. And it is now being felt that other than cost-cutting and laying off workers, the CEO has completely failed to come up with any worthwhile strategy (Zander has already eliminated 7,500 positions and, in the process, cut costs by $1 billion). In the first quarter of this fiscal, Motorola reported its first loss in three years, and Nokia and Samsung won over more market share. So is it the time to give Zander the golden handshake? We didn’t say it – the industry is saying so.

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Source :
IIPM Editorial, 2008

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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