The case analysis will include the strategic benefits of the global cash management system, the importance of the relationship between Citibank and the Motorola development, implementation, the functioning process of the system, and the factors that helped Motorola to implement their system in the company where the operations of treasury had been decentralized.

The case analysis will include the strategic benefits of the global cash management system, the   importance of the relationship between Citibank and the Motorola development, implementation, the functioning process of the system, and the factors that helped Motorola to implement their system in the company where the operations of treasury had been decentralized (2004, Hill, C. p.30). As part of the analysis, an overview will be demonstrated on the recent developments affecting Motorola currently.  Motorola’s cash management system was implemented starting in 1976. The company wanted to continue the expansion of foreign affairs but without retaining the additional costs of exchange rates, reduce the account payables and increase the account receivables. Previously, Motorola use to handle the finances per location or region. By handling the finances is so many locations the company was seeing huge amounts of pending receivables and suffering other business losses too. In the 1990’s, Motorola changed the cash management system to include the suppliers too.                                                                     

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The benefits of the cash system include reducing the cash flows and the amounts of foreign exchanges while increasing the company’s savings. Once Motorola executed this change the company saved about 6.5 million dollars between the savings, transaction fees, and some other administrative fees. Some of the factors used to implement the change include: the senior managements insights, purchasing of the new technical equipment, previous business investments in buildings and equipment, and training (Holland, C.P., Lockett, G., Richard, J.M.,  and Blackman I. 1994, pp.37-47). The management of Motorola’s payments is handled by Citibank. Citibank handles the transfer of funds between all the different vendors to ensure safety precautions and accurate transfers. The two of these companies sharing the responsibility within the globalization of their international and domestic funds is to improve all the business aspects.          

The global effects of Motorola includes constantly renovating their products and expanding their horizons with other countries. Motorola recently received an award of 165 million dollar contract with Saudi Arabi. On March 19, 2008 Motorola teamed up with Swisscom for development on broadband services in the hospitality arena for Europe, North America and 10 other countries (Motorola.com 2008). Motorola first entered into the market in the mid 1920’s and based on the Presidents future broadcast, the company is not planning on exiting any time soon, but considerations of buying out the competition is expected.

References

Hill, Charles W. L., (2004) International Business: Competing in the global marketplace, 5e

      Retrieved March 23, 2008 from UOP E-Resource/E-Book.

C. P. Holland, G. Lockett, J. M. Richard, and I. Blackman, “The evolution of a global cash

management system,” Sloan Management Review, Fall 1994, pp. 37–47. Retrieved

March 23, 2008 from https://ecampus.phoenix.edu/content/eBookLibrary

Ettorre, B, (1995) “How Motorola closes its books in two days,” Management Review,

March 1995, pp. 84-89. Retrieved March 23, 2008 from https://ecampus.phoenix.edu/          

content/eBookLibrary

Motorola.com (2008) Motorola announces worldwide distribution agreement
with swisscom Retrieved March 23, 2008 from  http://www.motorola.com/mediacenter/news/detail.jsp?globalObjectId=9407_9336_23