Management and Human Resources at Nokia - Essay Example

3. Management and Human Resources Management and human resources are the backbone of any company and Nokia is no exception. When they are moving into Morocco, they are moving in with one of the best management teams, however to be productive in a new territory they need to hire locals, so when they operate, they would operate effectively and efficiently . New Export Structure When Nokia moves into Morocco, they’re corporate will shift a little, the new management structure for Morocco will be the best as they will need people that are more knowledgeable in Moroccan market. Team The team will be divided into four main categories representing four essential departments of the whole Nokia operation in Morocco. President will be the overseer managing everything through other people. Figure 1 displays how the chain of human resource would work; Figure 1 Making a move to Morocco will require creating a small subsidiary like company in Casablanca. Plus, from the demographic and survey reports, it is clear that the most skilled people live in Casablanca in Morocco, so Nokia’s search will be narrowed down. What they need to be looking are managers for finance, supply chain, sales and production. As the official language of Morocco is Arabic, there will be a lot of web apps needed to be developed specifically for Moroccan people in Arabic language. For this local IT experts and web developers will be welcomed. All of the departments will be in touch with the export manager, as he will be traffic sergeant of all the supplies from Finland, the home of Nokia. Another aspect that needs to be considered is how many personnel will need to hired from Morocco and how many will fly from Finland to Morocco. The reason for this plan is Nokia doesn’t need many phone manufacturing experts in Morocco, there is a complete powerhouse back in Finland for Nokia so there is hardly any need for establishing something along the manufacturing lines in Morocco. Nokia will only nee managers that can manage the sales and marker research side. Casablanca headquarters Building The building will be located in Burgogne Ouest, which will give Nokia a central spot in the city to move and supply its Lumia phone easily throughout the city. Better access to phone markets will help refill shelves quickly than the competitors. Rent Rent for this office is feasible as it lies in 5000-7000 Euro/month. The space is 215m2, which is perfect for the purpose for Nokia building (“Search ads in,”). Taxes Taxation system in Morocco consists of two paths; the direct and indirect taxation. Corporates come under the taxation frame known as “impôt sur les societies” or simply corporate tax (“Doing business in,”). Nokia will have to pay a tax rate of 30% of its income as given by Moroccan corporate law. This rate could have been significantly less (almost 8%), had Nokia chosen to setup assembling installation in Morocco but this is only the export of Lumia project that they are undertaking. Normally, foreign companies in Morocco are taxed based on the difference between their trade income and expenditures (“Doing business in,”). From this aspect Nokia doesn’t get any slack in tax hold as expenditures on foreign soil will be very low compared to the income generated. Partnership Nokia is not in a good shape since the explosion of smartphone market. Nokia was the king of cell phone sales but now Apple Inc. and Samsung are leading the way with their user-friendly and trendsetting technology and innovation. Nokia’s move in Morocco for selling Lumia will need to have a partner as its current fiscal situation doesn’t allow it to take such risks alone. With the launch of Windows 8 from Microsoft, Nokia has new hopes for incorporating better tech features in its phones, especially in the Lumia series. For this particular move into Morocco, they will need a joint effort from Microsoft. At this moment, Microsoft is one of the leading tech companies and can easily join forces with Nokia in their Lumia business venture. Nokia’s headquarter in Burgogne Ouest, Casablanca will be supported by Microsoft. It will not be a typical joint venture but Microsoft will definitely be a partner as Lumia’s success will be based on Windows 8 success in Morocco and the apps which both companies will develop to cater the Moroccan market. The other necessary partnership that Nokia needs is the national telecom companies in Morocco that have a hold of over 55% of market share, Maroc Telecom. This will be necessary because Lumia is a smartphone and Morocco is not a very rich country where the majority owns a smartphone, but in over a little over 3 years by the end of 2015, 47% of the population of Morocco will constitute of people over 24 years of age, and from the surveys it is evident that majority of smartphone users in Morocco falls in this category. For these reasons, it is better to equip with a carrier that has the maximum hold on the market. The benefits for this partnership can be innumerable because Nokia will not be the first one to enter into Morocco which has huge potential from smartphone market. As time passes, many more competitors will end up in Morocco selling cell phones. So it will come down to these factors to decide who will sit on top of the smartphone market throne in Morocco; Carrier service App development Price It is a great thing that Lumia is not very rigid in its price; it has various versions which are available in different price ranges and people from all walks of life can equip themselves with this technology. Then comes the carrier service, and only from competitive point of view Nokia needs to partner with Maroc Telecom. Then comes the part of app services which is an untapped goldmine. Every individual needs application. Just to give an example what is an app and how it can affect people’s lives, Facebook is the number one app in the US and people spend hours upon hours using this app and new business and advertisements have made their way in that world. Sources (n.d.). Doing business in morocco. PKF Chartered Accountants and Business Advisers, Retrieved from http://www.pkf.com/media/131815/doing business in morocco.pdf Search ads in Casablanca. (n.d.). Retrieved from http://casablanca.repimmo.com/search_action.php?ctls_type_transaction=1&ctls_type_de_bien=6&ctls_ville=Casablanca&ctls_ville_qualif=8 Read More