Nokia Case Study

Case study 1 “Nokia”

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2. The German backlash against Nokia was justified. As an international company Nokia needs to and must abide by local cultures in which they conduct business. The German backlash of boycotts and protests to me are understandable. They public were not included in the decision of closures as is customary in Germany. The case clearly states that it was common practice for a large business to consult with the local community when closures are eminent. This consulting gives the public an awareness of the problems that have arisen and allows for people to voice their opinions. The German public it seems was angry not only because the factory was closing but also because they did not have a way to voice their opinions. Almost every human in the world wants to have their voice heard and if it is not then that is when they take to protest, a desperate attempt to be heard.

As a nation it is difficult to become competitive, nations need to focus on their strengths. As an example Romanias strength is the low cost of wages while Germany has high education a strong economy and very productive workers. To attract business nations must play to their strengths. In the case of Germany and Nokia this means that Germany should offer grants in research and development to Nokia. To become competitive nations cannot rely simply on offering subsidies to companies as every nation in the world can do this. The offer of subsidies results in a short term solution while nations needs one that will supply jobs for a long time.

3. The flaws in Nokias announcement of closing their plant in Bochum were many. The largest was that they did not include the public in their decision of closing the plant. In Germany it was common practice for a business to include the public and employees in the decision to close down. Nokia responsibility as a international business was to know this and abide by it. Good reputation is a difficult thing to rebuild and Nokia should have...