Motorola Inc. Case

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Motorola Inc. case précis
Restatement of the case
Motorola was one of the few American companies that marketed a wide range of electronic products, form highly sophisticated integrated circuits to consumer electronic products. The company was organized along product and technology lines. To exploit fully the growing demand for semicustom integrated circuits, Motorola organized the Application Specific Integrated Circuit (ASIC) Division in 1984.
The division was organized along functional lines (see Exhibit 1).
ASIC Division General Manager
Product Engineering Department
New product Development Department
Production Planning Department
Division Financial Controller
Marketing Department
Manufacturing Department
Quality Assurance Department
Exhibit 1

Product Engineering Department a. Deal with customer complaints. b. Design the manufacturing process for existing products, if a customer wanted or required an additional manufacturing process. c. Divide costs between nonrecurring engineering expense and the per unit cost of production d. Estimate product profitability to Market Department.
Market Department a. Exam the estimated product profitability report from Product Engineering Department. b. Identify the initial prospects. c. Price product and forecast the market demand.
New product Development Department a. Design new product according to customers product specification. b. Estimated cost to the marketing group. c. Forecast the future capital expense requirement to Financial Controller.
Production planning department a. Schedule orders from the customenr. b. Bill the client and report information to the financial controller when products were shipped
Quality assurance department a. Sample the product for quality and test the product. b. Discuss with manufacturing operators what constituted a rejection
Manufacturing

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