Nokia Case Study

Business Interests vs German Pressures L/O/G/O www. themegallery. com What are the trends in mobile handset industriousness? Nokia is the largest mobile handset manufacturer in the earthly concern with a 40% market share. Industry enjoyed healthy allowances however since 2001, industry is marked by declining prices and week margins making companies look at cheap production options. Outsourced manufacturing of handsets Demands in the developed markets like US & Europe has pure(a) Significant get onth has been noticed in the Middle easterly, southeasterneast Asia, Africa, China, India and South Korea.Demands of low represent phone in the emerging market has increase Average selling prices fell by 35%, which is directly impacting the tax What is Nokias strategy and how had globalization changed its bureau of operation? High cost manufacturing to low cost manufacturing regions Dominant position in emerging markets much(prenominal) as Brazil, Russia, India and China. High gro wth of in Middle East, South East Asia, Africa, China and consecration on low cost countries Moving to the locations where Govt. s more(prenominal) supportive in granting huge subsidies Impact of globalization Shifting of manufacturing facilities trading operations are taking place at selective places(where both the suppliers and the partners are present to give impetus to over all productivity) Was the German resile against Nokia justified? No country would prefer a MNC like Nokia to mingy its plant and hence affecting 2300 odd workers and their families. )Job less count to grow up , b)the overall economic development of the region to get impact In this particular scenario it was obvious for German backlash as the operating(a) plant is a profit making unit and not a sick unit. It was justified more because the Nokia authority had failed to explain clearly the resolve for the closure of the plant to the employees Nokias refusal to enter at any salmagundi of discussion with t he German authorities to find a mid way to continue the operations. How can nation make themselves more competitive? brazen-faced labor cost(26$in case of Germany compared to 4. 2$ in china) Supportive govt. with subsidies to produce a business. Lower corporate taxes Less bureaucracy. What, if any, were the flaws in Nokias forward motion to announcing and handling its plant closure? The flaws are No clear score for the closure. Thousands of people were left jobless. Refusal to think of an alternative to continue the plant. What can be company do now for damage control? Compensate employees hash out the situation Shift employees to Romania.Try to understand the culture of Germany and be tender to their cultural practices and perceptions. Can return back some portion of subsidies. ratiocination Apart from the concept of Globalization, big corporation should consider corporate accessible responsibility, not as Nokia did to shut down the plant which leads towards unemployment ju st for the senior high school profit even than Bochum plant was make huge profit margin of Euro 90,000 per production worker out of Euro 7. 2 Billions Global profit. Thank You Harsahl Buranpuri L/O/G/O www. themegallery. com