Wednesday, April 18, 2007

It needs another winner soon...

According to Gartner, despite Razr’s good performance in emerging markets, its dull new launches like Krzr K1 & Motofone & heavy inventory buildup (increasing its holding costs) have played spoilsport. Adding to its woes was a fall in EPS by a heart-rendering 54.35% & a lamentable 48.17% drop in net profits over the previous year. Also, with share prices hovering around a two-year low of $17.73 in March 2007 and M-Cap eroded by 27% over just a year, Motorola is losing ground. The company’s woes are showing up in shareholder meetings too. Corporate tomb raider Carl Icahn (who holds 2.7% voting power) is stepping up his act, seeking a position on the board and pressurizing the company to buy back shares.
Source : NYSE

That’s quite upsetting for a company that was getting increasingly stronger in the mobile phone segment, which contributes around 74% to its revenues. As on December 31, 2006, Motorola held 21.5% of the global market over 17.8% the previous year. The situation calls for innovative launches & cost-cutting measures. First and foremost, urgent steps are needed to create another cash cow to duplicate MotoRazr’s performance.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Friday, April 13, 2007

Found... a new waste basket

As if human beings were short of 510 million sq. km. of earth’s land area, the encroachment of the infinite area of space has already begun, and how! Garbage now lies spilled over space and NASA estimates that there are around 9,000 pieces of man-made space junk larger than 10 cms, around 100,000 objects between 1 and 10 cms, and millions of particles smaller than a centimeter flying around the earth’s orbit. These junk comprise unspent rocket fuel, general debris and sometime entire defunct satellites. But the dangerous part is that these particles can easily cause a spacecraft to breakdown or even get shattered. From penetrating satellite hulls, destroying solar panels and other equipment, to the emission of harmful radiations dangerous to life on earth, these waste items seem to be worse than imagined.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative