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Rim Research Paper

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Research In Motion | Group Research Presentation | GBA608/9 – Managerial Accounting for Decision Making – Fall 2011 - Dr. Salimi |

Nahin Choudhury, Roxanne Gutierrez, Jimmy Ho, John Miller, Laura Ornelas
11/27/2011
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EXECUTIVE SUMMARY

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Table of Contents
INTRODUCTION 4
HISTORY 5
PRODUCTS AND SERVICES 7
FINANCIAL PERFORMANCE 9
INDUSTRY ANALYSIS9
HANDHELDS9
GROWTH STRATEGY9
RECENT DEVELOPMENTS IN THE MOBILE PHONE INDUSTRY9 TABLETS9
COST ANALYSIS 9
COST ACCOUNTING METHODS 9
GENERAL 10
ELECTRONICS HARDWARE 10
SOFTWARE 11
SERVICE 13
OTHER 13
USE OF ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 15
ABC AND ABM OVERVIEW 9
ADVANTAGES OF ABC COSTING FOR RIM 10
MAJOR COMPONENTS OF OPERATIONS 23
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RIM was able to develop the pagers to send messages and emails on either network. RIM broke away from the pack in September of 1996 when it introduced its ‘Inter@ctive’ pager. Developed jointly with Intel, Inter@ctive was a game changer due to having a built-in contact manager, scheduler, a 16-bit operating system, a full QWERTY keyboard, a display that showed up to 4 lines of text, and could hold up to 100KB of data. The list price was about $675, not including service fees. It was released in 1997 and quickly became the company’s best-know product (“Research In Motion,” 2003).
In 1997, RIM went public with a listing on the Toronto Stock Exchange and raised $115 million from investors (Hempel, 2009). The following year, it made RIM made history again when it introduced the first Blackberry: The RIM 386. The first of its kind, it was a PDA organizer and had the ability to synchronize with corporate emails. This was beginning of their rule in the corporate world. Their products became synonymous with business electronics (“Research In Motion,” 2003). The following year after that, the company introduced its first BlackBerry brand e-mail device, a bulky rectangle with a narrow screen that ran off one AA battery (Hempel, 2009).
Throughout the years, RIM improved and innovated their design of the BlackBerry line of products. In 2000, BlackBerry was named the Product of the Year by InfoWorld. This occurred around the same time that
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