Impact of Globalisation on Nokia

3238 Words Dec 8th, 2011 13 Pages
International Business

Question 1. Using one specific company, with which you are familiar, examine the actual and potential impacts of globalisation on that company. Explain the reasoning behind the points you make. Evaluate possible strategies going forward which the company might use to respond to the impacts of globalisation you have identified.

Table of Contents

1. Background 1.1 What is Globalization? 1.2 The Importance of Globalization regarding a business 1.3 Nokia - a brief introduction

2. Characteristics and issues influencing Globalisation

3. How globalisation impacts the company

3. 1 Product 3 .2 Logistics 3. 3 Acquisitions

4. Evaluation and recommendations

4.1
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Due to the fierce competition many businesses are forced to also use the benefits of globalisation to their own advantage. In order to survive the harsh reality of competition businesses need to constantly be aware of changing conditions regarding the quality, efficiency and cost of production and various other important, but constantly fluctuating factors.

1.3 Nokia - a brief introduction

Nokia is a leading manufacturer of mobile devices, with a market share of 30% of all mobile devices globally. Interestingly the company was founded in 1865 and started its operations by manufacturing paper. The company later added electricity generation to its business activities. In the beginning of the 20th century the company started making rubber shoes along with other rubber products. Shortly Nokia expanded to cable and electronics business. By the late 1960’s the company was responsible for many different industries, hence producing many completely different products. During the 1990s the company focused solely on the fastest growing segments in telecommunications and divested itself of all of its non-telecommunications businesses.
While Nokia remains the global leader of mobile devices, the market share is falling slightly. Same time last year the company had 34% global market share, 4% more than currently. Worryingly the profit fell by a staggering 40% in the second