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The history of Motorola Inc. is dated back to 1928 when two brothers Joseph and Paul Galvin founded the company in Chicago, the USA, calling it Motorola founding company. Since the company was incorporated, it has been committing itself to innovation to improve on the side of communication and electronics. Its first product in early 1928 was a battery eliminator, which could allow battery powered radios and other machines to run household electricity. Motorola is one of the biggest companies that caused changes in communication technology. The company developed mobile communication, public safety networks, and car radios in 1930s.
The main areas which the company focused on include police departments and municipal councils. Their first brand to be sold outside the country was in 1960 in Mexico City. It came up with innovations that led to introduction of a cellular- handheld phone and hand held scanner in 1983 thus improving its standards. It ventured into home entertainment business with Motorola phonographs and home radios.
In 1960s, the company pioneered the development of large television screens called Motorola Astronauts television. It introduced 8-bit MC microprocessor in 1974 for games, automotive and computation to satisfy customer’s needs. It also developed laser check bar code verifier and hand held scanner in 1978 and 1980 respectively. This company has been one of the biggest firms, in the worldwide economic growth and revolution of new technology. Through its strategies of developing as an innovative organization, Motorola has introduced many developments on its products such as radios, televisions and many others, enabling it to hold a very significant position in the economy.
The $14 million contract for premier one (public safety application suite), which was awarded by Florida palm Beach County Sheriff’s office (PBSO) on August 4th last year for enhancing public safety over a long time, has helped to boost Motorola company by far. Premier one is a NG9-1-1 and multimedia platform designed to enable changes in technology in the coming generation, as well as stimulate the grouping of all system components to rationalize functional environment.
The award was for the full suite of the Motorola inc’s premier as one solution for computer Aided Dispatch (CAD), mobile, and jail application, which the company had been committing itself to, leading to public satisfaction with the their solutions. This has helped in increasing the company’s reputation in offering products of high quality using innovative means of new technology, sharing information with public to get views on how to innovate their products, offering quick responses among people, and enhancing safety to the public. In fact, the company designed and enhanced the efficiency of this system by ensuring that Microsoft’s connected justice and public safety solution (JPS) is used to stimulate or enhance integration of public safety systems adopted by the PBSO. Microsoft connected to justice, and public safety in PBSO is required to ensure accurate and enough provision of information of the county (Kaplan, 2000).
Motorola Company’s ability to use its own innovation and creativity to give a relevant and important solution based on the other company’s technology, satisfied PBSO. The company was awarded since it enhanced significant flow of information in the industries and improved the response time as well as improving safety of the citizens. The company engaged in integrated solutions depending on types of technology used by the other companies, thus leading to corresponding solutions to enhance easy means of communication which improved the company’s performance. Motorola also applies services such as messaging, query, and geographic information services to enhance accurate and efficient information statistics and clear reporting mechanisms.
Computer Aided Dispatches in this case, is used to attach real time query results, and other calls to provide awareness and true information to citizens without misrepresentation that may hinder nation’s safety. This helped in providing security to most people, hence attracting large group of citizens as well as proving early and frequent awareness to most respondents. Thus, Motorola applied its integrated solution of Microsoft, which was connected to JPS to produce great power from factors in combination such as Microsoft App Fabric, the National information Exchange model, and logical Entity Exchange specification among others to provide the PBSO with the following capabilities. These involved Alerts and notification, inter-system information Exchange, justice process Automation, federated Query of structured data, and investigating systems.
Since Motorola was incorporated, it has served a large market worldwide and it has met the needs of many people in different countries. This has resulted in great opportunities for the company enabling it to improve its returns and open many branches to help in satisfying its customers’ needs across the world. Besides, Motorola has made communication easier and has enlightened many of its employees to be involved in its innovation.
The Premier One award provided to the company was a type of cost re-imbursement, whereby the company was being compensated to its work towards the growth of the community, plus another amount of money for their great achievement. This is a contract category involving payments to the Motorola Inc. for all actual costs regarded as legal, plus extra money referred to as profit made by the company. This in one way is considered as a corporate social responsibility towards the Florida’s county in which it made the sharing of information easier, and enlightened the community concerning new technology. The following are some reasons why the company was given cost reimbursement contract reward, instead of the other types of rewards. Firstly, it covered the whole cost suffered by the company and gave an additional amount on top to show appreciation to the company. As compared to other types of contract rewards, cost reimbursement was the efficient way of covering the total cost incurred by the company, repaid it and added an extra amount for appreciation since this was for developing the community level thus, referred to as corporate responsibility (Premier one, 2009).
Secondly, cost reimbursement contract was considered because its flexibility gives the company direction in case the scope of work is not well observed. This enables to control the company to stick to the main project and not to alter the contract.
Thirdly, cost reimbursement is classified into three categories, which include cost plus fixed price, cost plus incentive fee, and cost plus award fee. In this case, for the cost plus fixed price it has a benefit in that the amount does not change regardless of change of the company or sellers’ performance unless the project scope is changed. This gives assurance to the company to recover all kinds of costs that are incurred during their work.
Another benefit is illustrated with the category of cost plus incentive fee in which Motorola receives all the allowable cost, plus incentive fee for having achieved a given objective. Then, this category means that in case the final costs are lower or higher than the estimated cost, both the seller (Motorola) and buyer (FBSO) share them equally, unlike fixed price, material and time. This is convenient in ensuring that the company does not suffer loss, because when it incurs a loss both parties share equally. In this case, based on the Motorola performance, if it achieves the set objectives, it must be compensated for their work and awarded if the buyer (FBSO) is satisfied with their work. This category of cost reimbursement was considered for Motorola Inc. to compensate them for their services to the society.
Finally, cost reimbursement contract reward is accurately calculable since both parties can estimate the actual cost suffered in the company (seller) to complete the work. These are their set standards guided by the cost, and strategies made based on the cost.
Thus, the above points in support of cost reimbursement as a type of contract selected to Motorola Company, seems to be more important to the company compared to other two types, which are fixed price, time and material. Also, cost reimbursement contract reward is easily understandable and convenient for innovative companies like Motorola to subsidize it to continue offering the same support as well as encouraging other companies to employ innovation to receive awards, too (Horace, 2004).
In an attempt to achieve, the set objectives Motorola faced a number of challenges which made them incur different types of costs. Costs are categorized into direct and indirect cost. An indirect cost refers to cost that does not contribute to the final product or does not lead to manufacturing a final product while direct cost refers to cost incurred towards producing the final product. In this case, Motorola Company faced the following indirect costs such as insurance cost to cover their buildings, machines and equipment, legal fees charged for any negotiations held, travelling expenses cost for research and development, cost for information and technology machines that are not directly used in production, spread of electricity in the whole community, repairs and maintenance costs for machines and equipment.
The direct costs that Motorola incurred include labor cost (for electricians and technicians), cost for Microsoft, cost for direct materials like direct IT machines, replacement of machines, cost of fiber optic services and cost of electric wires needed. All these are the costs that the company incurred directly to producing the final product that they had agreed. Additionally, all these costs are the ones combined when calculating for the legitimate actual cost for the whole contract or project.
Motorola has changed lives of many people across the world leaving all their customers satisfied. This has contributed a lot to improving the company’s performance hence making it reach the point it is nowadays. Moreover, the company has faced some of the challenges on its way such as capital to fund for research and development, challenges in recruiting innovative employees, introducing the new technologies to people and educating them (Brian, 2003). Nevertheless, as the researchers say, the challenges fuel people to success since they enable one to work hard and avoid failure.
References
Brian, D. (2003). Information Technology: Telecommunications. London: Thomson Learning.
Horace, P. (2004). Management: The Flow of Information. New York, NY: Harvard Business Review.
Kaplan, F. (2000). Transforming Technology: Information Systems. Boston: Harvard Business Review.
Premier One: Public Safety Application Suite. (2009). Web.
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