Nokia Case Study Analysis Recommended Solutions Powerpoint

Slide 1: Title: Nokia s Cost Pressures
Body: y y y
The predicted slowdown in growth from 2008 onwards The change in market expectations and demand Emerging markets dominated sales revenue

Slide 2: Title: Where Nokia went wrong
Body: y y y y
y It s lack of transparency Nokia s inability to reach out to social partners Cultural differences existing between Finland and Germany Nokia s uncompromising stance, (Nokia) would adopt the same strategy if such a situation arose again It s a cultural issue; we don t normally do it like that in Finland .

Slide 3: Title: Management Decisions
Body: y y
Contingency perspective Utilitarianism approach vs moral idealism approach

Slide 4: Title: Solutions
Body: 1.
Reduce non-labour costs through reductions in;

y y y

COGS Occupancy costs Financing costs Miscellaneous costs

Slide 5: Title: Solutions Continued
2. Freeze on wage and bonus remuneration y Seek to implement strategy across all manufacturing hubs labour costs as a % of revenue to fall y Wage freezes common within our current economic climate y Freeze on wages vs loss of job you decide y Possible complications;   Minimum wages   134million operating profit of Bochum plant

Slide 6: Title: Solutions Continued
3. Assignment of a team of global cultural managers y Nokia is responsible to all stakeholders when making its business decisions y The company failed in its unrelenting stance on how it conducted business within Germany


y y

Lack of understanding of German business practices; companies, before announcing a closure, usually explained in public that there were problems and the company needed to make big cuts. After this the workforce, trade unions and local politicians were involved in considering possible solutions even if this still happens (the plant closure), this process adds to the legitimacy of the company s decision. It can say it exhausted all options . Appointment of short-term contracted local cultural managers. Senior vice president of human resources; It s a cultural issue; we don t normally do it like that in Finland .

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