RIM and Organizational Change |
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Research in Motion
Research in Motion (RIM) began as an electronics and computer science consulting business started by Mike Lazaridis (current Co-CEO) and Douglas Fregin in 1984. Within 4 years of inception RIM became the first wireless data technology developer in North America. While RIM started out working with pages its focus changed to two-way wireless communication around the same time that Jim Balsille (current co-CEO) joined the company in 1992 (RIM, 2011).
Since Research in Motions beginnings in 1984 there have been various organizational changes. This paper will ...view middle of the document...
The reasons for this purchase are the use of QNX systems within a new Blackberry operating system as well as the development of a new in-vehicle entertainment platform to be produced by RIM.
While the deal was announced in April it wasn’t until late May the transaction was actually complete as the transaction required regulatory approval. This purchase was made for approximately 200 million dollars. The announcement from Rim state that the acquisition of QNX was designed to support "certain unannounced product plans for intelligent peripherals." We now know that these intelligent peripherals are the in-vehicle entertainment platform and the integration of QNX systems into the future Blackberry operating system (QNX, 2011).
Following the major acquisition of QNX, RIM announced in September of 2010 that it will be producing a tablet computer the BlackBerry PlayBook. The playbook is to use QNX technology in its operating system. The announcement also states the release date for this device is expected to be in early 2011. In the month of November 2010 Apple surpasses RIM as the number two smartphone vendor (Nokia is number one at this point), putting more pressure on RIM to continue advancements (Mawston, 2010). The release date of the Playbook ends up coinciding with the release of Apples iPad 2, so the release date is pushed back till April 2011. The Blackberry Playbook is released in twice as many retail locations as the iPad 2 across North America.
Once RIM released the Blackberry PlayBook, the results were less than stellar due to the fact that the product was not as capable as originally anticipated. The Playbook was not fully ready for release and lacked what had become standard capabilities amongst competitors. This resulted in RIM warning shareholders and investors that the first-quarter earnings for RIM would not be as expected (National Post , 2011).
On June 16th 2011 the results of the first quarter are disappointing for Research in Motion. The results bring about two immediate decisions: reduce the sales and profit forecasts for the second quarter (to a more realistic number) and announce a “cost optimization program.” The day after the two decisions were announced RIM’s stock dropped 21 percent (The Econonmic Times, 2011). In an immediate effort to combat the disappointing results as well as the significant stock drop, RIM lays off 200 employees in its Waterloo office (The Econonmic Times, 2011). This cost cutting procedure continues into July 2011 where RIM cuts 2,000 jobs which equates to roughly 11% of its total work force (Arthur, 2011). This cost cutting also helped reshape second tier management.
With the announcement of job cuts and stock value decreases, the shareholders called for change at the executive level. While the Co-CEO positions have always been questioned, there was never any significant push to make changes as RIM was doing well in the past. With these recent cuts and losses, shareholders began to push...