Nokia corporation cross-cultural management

Introduction

The Nokia Corporation has been the leader in mobile phone manufacturing around the world for a long time. Due to its dominance in the cellphone industry, Nokia experienced growth in large numbers until 2008 when competition became fierce, and the cost of production started increasing. As a result, profitability reduced, but with the diversity of its employees and location of its manufacturing plants, the company responded by producing cheap phones that cost less than $50. Even though the company grew much in 1865, more than 150 years ago, its culture of providing products that identify with the target market has remained the same.

 Nokia’sproduct life cycle

However, Nokia was in 2008 the centre of criticism from various types of people after announcing their plans to close their manufacturing plant in Germany. The mobile phone making plant was being closed and moved to Romania because Nokia wanted to secure its long-term competitiveness. Soon after the announcement a wave of protests and demonstration followed in the western German. Most consumers then started turning their backs on Nokia products the company was being accused of acting selfishly by closing a profitable plant (Astikainen et al., 2011). Although it was a viable concern since people would lose jobs and the Germany would lose a source of revenue, the culture of paying exaggerated wages was taking a toll on foreign companies.

Nokia Stakeholders

Nokia has the largest shareholder, Keskinäinen Työeläkevakuutusyhtiö Varma, registered in Finland. Although Nokia as a company is responsible for the interests and goals of its shareholders, the needs and goals of other stakeholders have All interested parties its management.

Problems of Stakeholders

Even though the stakeholders of Nokia benefit greatly from its business activities, they have several problems arising from the conflict between culture and the style of management practiced by the company. Job security is among the most serious challenges faced by employees. When employees are retrenched, the community suffers a setback due to lack of money for survival (Astikainen et al., 2011).

Stakeholders Goals and Concerns

All interested parties in the Nokia Corporation have goals they aim to achieve by associating themselves with the company. However, the stakeholders also have various concerns about how Nokia runs its business activities.

References

Astikainen, P., Stefanics, G., Nokia, M., Lipponen, A., Cong, F., Penttonen, M. and Ruusuvirta, T., 2011. Memory-based mismatch response to frequency changes in rats. PLoS One, 6(9), p.e24208.