The company uses derivative financial instruments such as foreign exchange options and forward foreign exchange contracts to manage hedging and reduce the exposure. Wheelen, L., & Hunger, J. From the table above we can see that the assets funded through equity has been on a declining run throughout the five year period. Nokia’s organizational structure is horizontal and it allows for greater flexibility and speedy communication channels between different departments. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Nokia has businesses all over the world; this global presence means that assets and sales, liabilities and loans taken or completed in different parts of the world may be higher or lower in value when translated into the Euro or any home base currency. Despite the company being the largest phone company in the world, the company is facing a number of strategic issues that if not addressed with immediate effect, then the company is likely to lose its competitiveness and dominance in the market; the following are the strategic issues: Phones are long-lasting equipments and making them as so is one of value and quality assurance of Nokia, however markets are getting saturated with phones thus holding a single phone for a long period of time. The category structure helped clearly to develop Nokia’s market leadership in these days, as they could precisely meet customer needs. focuses on Nokia and aims to find out whether the conclusions of the SOMO report and the publicity that followed afterwards had any harmful effects for the reputation of Nokia among consumers in The Netherlands. The SWOT of Nokia discusses the strengths, weaknesses, opportunities and threats of Nokia which is one of the leading mobile handset manufacturer in the industry. This explains how important the development of new products and markets are to companies like Nokia. It is important to note here that because Nokia’s main sales driver is the mobile device market hence there are higher sales potential for Nokia in developing countries. "These changes are designed to accelerate the execution of our strategy," said Nokia President and CEO Rajeev Suri. Published: 1st Jan 1970 in We will write a custom Essay on Nokia Organizational Structure specifically for you for only $16.05 $11/page. Nokia’s foreign exchange policy is developed by the treasury department of the company which looks after the interests of the company such that foreign exchange exposure is minimized and shareholder value is maximized. Technologies LLC, a company registered in Wyoming, USA. When the department is undertaking this duty, it looks into quantitative and qualitative aspects. Nokia’s corporate governance practices comply with Finnish laws and regulations, Nokia’s Articles of Association, the Finnish Corporate Governance Code 2020 We're here to answer any questions you have about our services. 5. 1. "Organisation Structure Of Nokia Company" Essays and Research Papers . IvyPanda. DRIVING CHANGE “Our new strategy is supported by changes in Nokia’s leadership, operational structure and approach. Despite the company being the largest phone company in the world, the company is facing a number of strategic issues that if not addr… Management: Leading & collaborating in a competitive world. Despite these tough circumstances Nokia continued to expand product development and introduced new products in the mobile device markets, new systems and networks from Nokia Siemens Partnership and navigation phones under the NAVTEQ division. This department also ensures that there is a consistent increase in different services as the market evolves. To change organisational culture is difficult and it takes time. The difference between diluted and basic average number of shares was negligible during all the three years stated above. Had Internal … Nokia Corporation’s shares are listed on the following stock markets: NASDAQ OMX, (Helsinki), Frankfurter, and New York Stock Exchange. December 6, 2019. https://ivypanda.com/essays/nokia-organizational-structure/. The company provides all necessary data to authorities at NYSE because the under the rules any firm that complies with its national laws must file any differences that exist between its national laws and the laws to be followed under NYSE. Supply Chain Contagion. Nokia ursprünglich ein finnischer Holzstoffhersteller, der sich zu einem Mischkonzern und ab den 1970er Jahren zu einem Telekommunikationsunternehmen wandelte galt ab Anfang der 1990er bis Mitte der 2010er Jahre als weltweit bedeutender Mobiltelefonhersteller und war von 1998 bis 2011 Marktführer in dieser Branche. Managing human resources has been an ignored area in traditional business management, however with modern strategic management; managers increasingly understand that the success of their organization is highly dependent with how well they manage their human resources. The recent financial crisis which was coupled with economic downturn as well saw most industries and companies experiencing reduced profits or even losses. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Nokia is an international phone company, with its headquarters in Finland. Steadily over the years Nokia has moved into new markets which have diversified the portfolio of the company hence spreading the risk over different but related markets. The company, by raising additional capital in new markets, not only increases its ability to spend money on acquisitions, development, and supply-chain but also gives credibility and higher standing to the company’s share in the capital markets and makes the company a strong candidate for a better rating from agencies. An organization is defined as an integration of processes with a single purpose; to attain the expected goal of an organization, management needs to develop and effective working organizational structure. The way authority and responsibility is organized at Nokia it shows that the company is exemplary in its approach towards corporate governance. The company delisted its Swedish Depository Receipts (SDRs) from the Stockholm Stock Exchange. Despite the slowed growth, the markets have a number of international players selling their products in the markets. The other significant department is Markets which acts like a supply chain department for Nokia. ESPOO (dpa-AFX) - Nokia announced the planned leadership and organizational structure that it intends to implement after and subject to the successful closing of the public exchange offer for Copying files from PC - file structure How do I copy files to the 8.3? December 6, 2019. https://ivypanda.com/essays/nokia-organizational-structure/. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Share yours for free! This also explains that as years have passed by liabilities have been increasing used as a way of financing assets. Strategic Management and Business Policy: Entering 21st Century Global Society. The unit is also responsible for sales channels, branding and marketing activities for various products and services. IvyPanda, 6 Dec. 2019, ivypanda.com/essays/nokia-organizational-structure/. No plagiarism, guaranteed! Today’s complex, rapidly changing world requires a new operating system that provides organizations with the structures and processes to optimize their current core offerings, as well as the flexibility to develop new processes while responding to market changes. 2019. As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible. It reported annual revenues of around €12.73 billion by conducting sales in more than 151 countries. This report is an analysis of organizational structure of Nokia Phone Company; the report will analyze the current structure of the company and current strategic issues facing the company. As we can see from these numbers that about 59% of sales are coming from the developing world; for a company that began operations from Finland that is an important statistics since most of its revenues are coming from international markets especially from developing countries. Developing new products has its own advantages but moving into new geographical markets can benefit companies from the all important concept of economies of new scale. In terms of the benefits; firstly by listing stocks in a market such as NYSE a company like Nokia gave itself exposure to one of the most valuable and important stock markets in the world. This leadership even gave them the possibility to stay in front of all other competitors during the growing adoption of smartphones. Company Registration No: 4964706. Nokia is a Finnish technology and multinational communication company. The structure is only there to ensure that there is good management and processes within the organization are well managed and controlled. The return on equity declined significantly during 2008. It is a method of optimal brand strength by creating additional sales. Unlike other Nokias, when I connect this to my PC via USB cable the phone's directory structure does not appear. The devices unit looks after the development and management of mobile devices portfolio which is targeted at all major consumer segments. This article presents one of Nokia’s reasons for failure and what you can learn to improve your leadership. Many analysts believe that borrowing is a lesser expensive way of raising funds compared to equity as interest paid reduces effective tax rate; secondly creditors do not have a say in the way management runs the business; thirdly no dividends need to be paid out. Meet our leadership team. View Organizational Structure Of Nokia PPTs online, safely and virus-free! An organizational structure has a total quality approach where all areas of the organization are addressed; despite this totality approach, changes in business environments and industries have sometimes made companies to find their strategies ineffective and irresponsive of current business policies (Wheelen & Hunger, 1998). Problems at Nokia Nokia, considered to be the pioneer in smartphones and a global leader in the mobile phones market, started to face severe challenges to its dominance in the smartphone market in 2007. Nokia is divided into four main departments where every department, also called business group, is given some mandate to undertake, the departments are Mobile Phones; Multimedia; Enterprise Solutions and Networks; other than the departments, the company has two horizontal departments as Technology Platforms and Customer and Market Operations. With the current success in the international markets, Nokia should be thinking of a brand extension approach: brand extension is a marketing tool used to market products using the strength of an existing brand. Safety symbol. The company’s sales are not promising in the country as well as the operating costs in these countries is on the upward rise (Kaushik & Cooper, 2000). Nokia Siemens Networks is a joint venture with Siemens and it provides network infrastructure which is both fixed and wireless. In 1984, Nokia acquired Salora and changed the name of its telecommunications unit to Nokia-Mobira Oy. Through the 19th century the company expanded, branching into several different products. Nokia has a human resources management department with the role of ensuring staff needs have been addressed effectively, the department has the role of ensuring that the company has the right number of human capital at the right time at an appropriate cost. Retrieved from https://ivypanda.com/essays/nokia-organizational-structure/. Safety message. Responsible for the operative management of Nokia. The equity ratio represents the amount of assets represented or funded by the equity holders. Nokia announces changes in its organization and Group Leadership Team to accelerate the execution of company strategy. In terms of the disadvantages economic activities in a foreign country might impact the shareholder value of the whole group. Overall companies are suggested to find an optimum equity and liability combination by working out the WACC at different levels. Nokia is a Finnish multinational corporation founded on 12 May 1865 as a single paper mill operation. The Nokia Corporation Annual General Meeting held on May 7, 2013 resolved that no dividend would be distributed for the fiscal year 2012. Similarly the company faces challenges from Samsung and Motorola in the touch screen phone markets and the latest Android based phones that offer efficient and extremely user friendly interface to consumers. Therefore Nokia as a company does have it own weakness and the weaknesses are as follows. The people who helped Nokia to become the best company were no longer there. Short-term borrowings increased from 714 million Euros in 2007 to 3,578 million Euros in 2008. According to the auditors and company information strict guidelines are followed in terms of code of conduct and ethical behavior of each employee. In 2014, Nokia employed 61,656 persons all over the world. The success of an organization depends on how well physical and human resources of the organization have been organized and managed. On the other hand, organisational culture is brought from the practical experiences from the organisation and learned from the organisational job. Bridging organization theory and supply chain management: The case of best value supply chains. ensure the integrity of our platform while keeping your private information safe. This factor eroded the asset base advantage the company was holding for the previous 4 years before 2008. If we closely analyze the net debt to equity ratio for the 5 year period we see that initially in the years 04, 05 06 and even 07 the company had surplus assets over total debt. Nokia. 1. Organisation Structure Of Nokia Company. The Nokia Company is today one of the world’s leading high tech companies. The 10 markets from which Nokia generated the highest amounts of sales revenues are listed below in decreasing order; with the highest written first and lowest stated last: China, India, the UK, Germany, the United States, Russia, Indonesia, Spain, Brazil and Italy; when combined these markets provided 52% of the total sales in 2009. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Overall the mobile device industry is expected to increase by about 10% in 2010 in terms of volume compared to 2009. As previously announced, Nokia agreed to sell HERE, its mapping and location services business, to a consortium of leading German automotive companies. The group has a policy of not hedging 2-year or beyond forecasted foreign currency cash flows. Technological firms generally have higher risk attached to their stock prices and market values therefore we expect them to do extremely well when the economy is booming and the company is able to come up with consistent and high quality products. (2011). It is very difficult to co… Organizational theory emphasizes that every organization has potential to become competitive in its industry if it organizes the assets, both physical and intangible, that it has. 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