Nokia Managing problems - Essay Example

Nokia is facing some serious issues regarding its operation management and research & development. This study is designed to determine those issues that are causing the downfall of Nokia in the global market. The main concern of the report is to highlight those issues that are the reasons for declining in the performance of operation management department of Nokia. The analysis declares the main problems and results stated the areas of improvement in the functions of operation management and research & development department.

INTRODUCTION In the last few years Nokia has been facing several problems in different areas of the organization in competing in the global market. The global market is changing day by day especially in the line of technological advancement (Chief Supply Chain Of?cer Insights, 2011). New inventions are being discovered by the leading manufacturers regularly. Continuously innovation has been made in the smart phones by some of the rivalry companies like Samsung and Apple Inc (Simchi-Levi, Kaminsky, & Simchi-levi, 2007).

There are many other competitors all around the globe which give tough competition to Nokia in different markets of different countries. This competition created problems for Nokia in many portions of the business. This study is designed to discuss the issues or problems faces by Nokia in the last few years. These issues brought a great impact over the Nokia’s financial position in the year 2012. According to the report sales of Nokia have dropped by 29% in the international market and net cash has decreased by 24% in one year period (Gassee, 2012).

This report analyses the performance of Nokia. After conducting the research the problem faced by Nokia has been identified that has resulted in declining market of Nokia. The consistent decline in the performance of operation managements of Nokia has been one of the major reasons for the decline in sales of the company. As the operations of the company are analyzed then it can be found that three main departments are responsible for this declining phase and these departments are production department, research and development and supply chain management.

The production department has potential and capacity to produce to meet the demand but still the production does not meet the demand. This gap of demand and supply is the main cause of declining market ok Nokia. The second issue is innovations in their phones. Smart phones introduced by Nokia are not completely grabbing the interest of customers as they are not able to fulfill the needs of the consumers. The third issue is regarding the less efficient supply chain management process in some big markets of Nokia.

For example, According to the Bloomberg, in China Nokia Lumia 920T was facing serious supply chain management issues. The price of Nokia Lumia in China was 4,599-yuan ($738), the distributors of China claimed that they do not have a stock of Nokia Lumia 920T. For this reason Nokia has dropped the holiday session of next week because of its delivery issue. According to the statement of China Mobile spokeswoman, they ordered 90000 units of Nokia Lumia 920T but Nokia has just supplied 30000 units which is 1/3 of the whole demand.

This situation gives the understanding that Nokia is going through a serious problem in the area operation managem