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Strategic Overv
CHANCE
CONSULTING
Marco Di Stefano Jordan Hartzenburg Jaylen McCurbin
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AGENDA
oCompany OverviewoBackground & MilestonesoCompetitive Analysis
oASIC Strategic AnalysisoCritical IssuesoIndicator 1: Keys to SuccessoIndicator 2: Traditional Costing SystemoIndicator 3: Effective Measures of KSFsoIndicator 4: Implementation of MeasuresoRecommendations to Motorolao
Conclusion
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COMPANY OVERVIEW
Company Background
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
o
Multi-national telecommunications company founded preceding the Great Depression (HQ: Schaumburg, Il
oWell known for their radios and consumer electronic p
oBy 1960s, sold semiconductors and communicationsequipment
oTargeted clients: Average consumers, military, and incompanies
oPresident & COO: Rick Osterloh
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COMPANY OVERVIEWMilestones
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
193
1947
1973
1983
1986
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COMPANY OVERVIEW
Market Performance
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
Stock pric Dip in pric
demand inAmerican business, anticipated
Gate Arrays
1984- $455M
1985- $740M199 - $1.4B(Growth fromexpected to Financial Times, 2015
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COMPANY OVERVIEW
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
In 1984, Moachieved grevenues obehind NEC
Toshiba H
4th
Opportunity:
Shift in demand fCMOS. Focus onand develop core
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ISSUES
Strategic Opportunities Missed
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measures
KSFs
oHigh performance gate array market valued at 91984- Forecasted to grow to 600m in 1990 (6.7xgrowth)
oDemand higher for CMOS, but focus is being pmainly on the bipolar semiconductorsoIn 1984 it captured 40% of the market, soon to be 70% o
market
oProduction efficiencies forgone due to flawed qualitassurance processes
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ISSUES
Inefficiencies in Production Plann
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measures
KSFs
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ISSUES
Manufacturing Processes & Account
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measure
KSFs
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ASIC STRATEGIC ANALYSIS
Introduction
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measures
KSFs
o
Organized ASIC as part of SPS in 1984 in Phoenix, wowith customer to design the semicustom ICs
oCustomers: DEC, Apple Computer, Unisys, Cray, PrimeComputer
oIn the computer manufacturing world, markets are chara
by rapidly changing technology, rapid intro of new produoNew requirements in semicustom gate arrays market-
Involvement of customer in the middle of the developme
oFormed in conjunction with increasing usage of JIT
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ASIC STRATEGIC ANALYSIS
Model 1: SWOT Analysis
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measures
KSFs
STRENGTHS
- Core competency is in design and process expertise
- Leader in semicustom integrated circuits
- Market Leader for Bipolar conductors
- First movers advantage for many products
OPPORTUNITIES
-
-
-
-
WEAKNESSES
- Production Planning Department
- Strategic focus
- Quality assurance issues (no Standard)
- Weak inventory turnover
- Accounting system
THREATS
- New demand shifting
- Environmental standards and regulations
-
-
-
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ASIC STRATEGIC ANALYSIS
Model 2: GAP Analysis
Overview Issues ASIC
Keys to
Success
Traditional
Cost System
Measures
KSFs
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INDICATOR 1
Keys to Success
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
Bipolar CMOS
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INDICATOR 2
Traditional Costing System
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
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INDICATOR 3
Measures of Key Success Factor
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
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INDICATOR 4
Implementation of Measures
Overview ASIC Issues
Keys to
Success
Traditional
Cost System
Measures
KSFs
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RECOMMENDATIONS
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Thank you for choosin