Nokia gets failed firstly because of its own decision to get it sold to the Microsoft, reflecting its image of incapability to manage its firm.
Nokia Failure Analysis One of the reasons for the failure of Nokia is the incorrect deal of the Nokia with the Windows. After this the workforce, trade unions and local politicians were involved in considering possible solutions even if this still happens the plant closurethis process adds to the legitimacy of the company s decision.
The same was the case with the Nokia, which did not head to the advancement and experienced huge failure. The team of cultural managers would not have to be permanent employees, but could be hired as short term contractors utilized when entering a host nation so that the company could obtain a greater understanding into the differing ways of carrying out business activities and decisions.
These pressures arise due to; y y y The predicted slowdown in growth from onwards did the telecommunications industry predict the GFC?
Obviously any reduction to expenses provided ceteris paribus would equate to an increase in profitability measured as the firms Net Profit or through other metrics such as EBITDA etc The potential challenge which is accompanied with this suggested solution is that Nokia s CFO may have already exhausted this avenue whereby the company has reduced both fixed and variable costs as far as can be realistically achieved.
If the business leaders saw fit to close down production in Bochum, then so be it, and as such the company has been held responsible and has dealt with the backlash which has been thrown its way. Conclusion From the articlewe conclude that the failure of Nokia was, in short, the bad decisions that were taken by it and the avoidance to cope with the advancing world, lack of adoption of new technologies and unfocused innovations.
Nokia could present the counter claim, that this contribution to net profit represented 1. This could include reductions to; y Cost of goods sold COGS such as inventory inputs into the production process variable costy Occupancy costs such as plant rent, and outgoings fixed cost short-medium termy Financing costs Nokia could look to refinance its debt to further reduce costs.
First of all, the company was unable to come up with the epic sets and have not been implemented the correct strategy of umbrella branding. Nokia failed to identify all the problems associated with the decision to close down the Bochum plant seemingly focusing solely on the reduction of labour costs.
Similarly they could be called upon, when decisions such as the closure of the plant in Bochum are needed, as the due diligence of such decisions are carried out.
The ability of this ultimately depends upon its capital structure and term of maturity.