The Mobile Infrastructure Sector to Explain the Business Environment - Case Study Example

Assessment Name Student no Supply chain distribution Introduction A supply chain is defined as a network that exists between a firm and suppliers engaged in manufacturing and distributing particular products to targeted customers. Supply chain distribution describes the steps taken to get the product to the final destination. The process is today faced with unprecedented changes that act as challenges and opportunity to all involved active participants. The current supply chain and distribution channel constitute several components which are essential in seeing the whole process a success. These components include; distribution which involves the physical logistics of transporting the product along with a chain distribution, inventory management and identification of royal customers. The purpose of this article is to describe international supply chain and distribution, and it uses a case study from the mobile infrastructure sector to explain the business environment. About Nokia Nokia is a Finnish company which began as a paper mill before it diverted its focus on creating technologies powered by research and innovation. The company serves communication service providers, big enterprises, government entities and customers that have a firm’s full end-to-end portfolio of goods, services and licensing. The company started manufacturing phones back in 1982 and developed to become the world’s leader in telecommunication by 1998 and the largest firm in the Europe regarding market capitalization. By 1999, the company reported a $19.9 billion net sales and over 60,000 employees. The company has developed a strong brand with prices being affordable and appealing cells phone that contribute to 70 percent of its returns (Icmrindia.org, 2017). Nokia has 160 nationalities distributed to over 100 countries, and that exhibits a solid management system characterized by a centralized hub supported by satellite chain distributor. Experts in the telecommunication industry have been fascinated by the progress of Nokia and its ability to maintain, manage and adapt to efficient distribution and supply chain for over 150 years. Analysts have linked the success of the company to its supply chain management practices which have seen maintain long-term relation with its main suppliers. Nokia has been able to maintain a low cost of production because of its manufacturing and processing system. The company employed a hybrid manufacturing system which saw it make up with a combination of domestic and outsourcing products. It has also adopted to smart production techniques that have enhanced health competition (Business.com, 2017). On March 2000, a fire broke out at the Royal Philips Electrons plant in New Mexico as a result of a power surge. The plant was the main supplier of semiconductor chips which were used in cell phones by both Ericsson and Nokia. The two companies received a 40 percent of the plant’s chip production, and it was at that time the companies were on the verge of releasing new phones that required the chips. The fire only lasted for 1o minutes, but the damages were severe since stocks of the chips were destroyed. A report of the fire was delivered to both companies with Philips stating it could resume production in a weeks’ time. The information was received differently by the two companies. Reaction at Nokia was very fast as managers actively participated in dealing with the supply disruption by holding a series of meetings and discussions. Philips then realized it had underestimated the damaged by the fire and released a second report indicating production would resume after six weeks. At the time, Nokia had already determined the shortage would reduce production by 5 percent annually if drastic measures were not taken were considering alternatives sources to get chips. A team of 30 members was formed to come up with a solution, and within five days, two suppliers from the USA and Japan responded to the chip inventory and saved Nokia from production loss. As a result, Nokia preceded with the production and launching of the new phones with no hindrance (Walker, 2014). While at Eriksson, the technician that had the initial report of the fire failed to deliver the news on time to his superiors, therefore, no fast action was taken to counter the problem. There was a week delay before the news could reach the executive team and according to Ericson spokesman, the fire did not pose a major threat to production therefore little attention was paid to the matter. Philips was the sole provider of chips to Ericsson, and when news reached the executive team that short -term supply of the chips was uncertain, confusion prevailed, and losses had already been made. Ericsson later announced its loss to the market and shares dropped by 11 percent delaying the launching the first new phones that featured Bluetooth technology (Walker, 2014). Nokia's endeavors to handle a supply chain disruption with flexibility exhibited by its stakeholders demonstrates not only an efficient supply chain management but also effective operational risk management. As with Ericsson, insufficient response to the supply shortage was costly, and insurance only covered the immediate loss of the inventory and physical assets and not the brand damage. A slight drop in the share price as a result of disrupted supply accounts to about 8 percent for the first two days which is a huge drop compared to delays in launching a new product that accounts an average of 5 percent while IT problems to 2 percent. To avoid these costs. Organizations are urged to employ and implement an operational risk structure with a level of quality for Strategy Process and values aided by advanced technology which will enable the company to predict supply chain problems and how to adapt and to counter them. It is significant for companies to consider trade-offs in their risk management plan between firms holding inventories or use several supply sources to avoid disruption (Walker, 2014). Online marketing Introduction. Online marketing refers to methodologies employed for promoting products and services via the internet. It involves a wide range of marketing components compared to the traditional marketing because of the additional channels and marketing techniques available on the internet. The online marketing spectrum differs and is dependent on the business' requirements and specifications. The service aids to connect the company with qualified and potential customers who contribute in taking the business to higher notch within a short period when comparing to the traditional marketing strategy. The technique synergistically combines creativeness in the internet use, design projections, sales and advertisements while concentrating on the primary business models which include: E-commerce Local search Affiliated marketing and Lead-based websites (Techopedia.com, 2017) Businesses irrespective of their sizes are flocking to internet services especially social media platforms to advertise their products and services. The existence of these platforms such as the as Twitter, Facebook, and YouTube enables the businesses to not only sell off their products and services but provides an opportunity to closely engage in conversation with clients to identify their taste and preferences. The internet has drastically changed how information is shared and has had a massive impact on marketing. Over the years, there has been a diversion towards inbound methodologies as many outbound techniques have become obsolete. Many organizations are finding prosperity through the publication of their original content as compared to embedded advertisements, and this is attributed to additional benefits that online marketing offers such as continuous audience growth and branding (Forbes.com, 2017). A business prosperity is characterized by the relation that exists between the company and its customers. One of the ways that firms ought to use to establish authority and gain customers' trust is by continually providing valuable information about the business through some channels. By doing so, the company builds a strong relationship with its demography developing a loyal set of customers. Some of the content marketing strategies are, eNewspaper, case studies and articles found on a business's website. These channels aid the company to build a positive reputation within the sector. Over the years televisions and radios have been extensively been used to advertise commodities and services, but now they are less efficient since the designed content does not target the intended audience raising the need for inbound marketing (Forbes.com, 2017). As many businesses engage in online marketing, customers are encountered by the rising number of advertisements which has brought about the need for companies to make the content easy, quick to digest and captivating. Looking at the social media sites, a majority of them operate the same with all putting emphasis on images it is, therefore, crucial for the content to look appealing.it is depicted that successful blog posts that usually receive the most social media shares and likes have some characteristics. They are always peppered in a well-juxtaposed picture to break the monotony of the content and emphasis on the specific points. For instance the use of infographics which combines images with few texts to elaborate the topic and provide vital statistics concerning the information posted (Forbes.com, 2017). The case studies used in this article are of both international and local business which have found success through social media platforms. Statistics show that the number of small business that has adopted to social media has increased from 12% to 14% last year demonstrating how fast online marketing is paving its way to becoming the next big thing globally (Rao, 2017). Joile De Vivre It is a company based in California that manages and operates 33 luxury hotels. The company has extensively used several social media platforms to advertise its properties and drive sales. For instance every Tuesday the company's Twitter account will tweet exclusive deals to estimated 10,000 followers. In response, the followers will have to book within the offered period to enjoy the steeply discounted rates. The deals are also provided to its 5000-plus Facebook fans on Fridays. Through these deals, Joile De Vivre has managed to book over 1000 room nights in less than a year. The firm has also entered into a partnership with both Mobile Spinach, a coupon site that offers coupons and Foursquare to provide deals for check-ins for various restaurants (Rao, 2017). The company’s vice president, Anne Nadeau stated the hotel industry usually has low seasons shrinking the marketing budgets but social media performance has proved to be significant for both driving sales and building loyalty. The activities on social media are not merely deal based since the company has been encouraging consumers to participate in its road tripping's California contest. Interested persons were only required to submit videos on YouTube sharing the reason why they love California. Out of the 270 videos that were submitted, three winners were selected to win all-expense road trip enjoying stays in the company’s hotels (Rao, 2017). Stone Korean Kitchen The company was co-founded by Chef Terry Lin and his LinkedIn accomplices Robby Kwok and Dan Yoo. Stone Korean Kitchen targets to introduce current and trending Korean cuisine to the Financial District in San Francisco. Once the company was launched, Yoo started a forming network via the social media sites including Yelp and Facebook. From his experience, Yoo stated that it is more efficient interconnecting the content between several profiles rather than congesting the content on one profile. Currently, Yoo has 65 followers on Twitter and 107 fans on Facebook both of whom are loyal customers to keep the kitchen busy. The company realized a crucial traction in both sales and trafficked once it signed up for groupons. Stone Korean Kitchen made sales of 2600 groupons in just a day and received a full packed house for dinner and supper for two months. Besides the increased sales that Groupon has contributed, there was a flux of Yelp reviews. Before the company signed the deal, it toots it six months in coming up with only 80 reviews on Yelp, but after the deal, the restaurant managed to gather 90 reviews in 3 months. Yoo also admits that there has been a steady increase in Foursquare check-ins as a result of the Groupon deal which is an indicator that people are responding well to the content (Rao, 2017). Succession planning process Introduction Succession planning is a component a good HR planning and management that is characterized by systematic procedures approach used to building a leadership pipeline to ensure leadership continuity, developing and nurturing potential successors in ways that enhance their strengths and focusing resources on the talent development as an investment plan. The process acknowledges the fact that staff members will not be staying with the company indefinitely and provides a solution for such alteration. It is vital to note that some jobs are the lifeblood of the company therefore too critical to be left vacant or be occupied by unqualified individuals. If done correctly, succession planning is crucial to achieving the firm’s missions and set objectives, recognizing and retaining top leadership qualities (Hrcouncil.ca, 2017). The process is not an issue that many companies find the urge to address in any systematic way because in most cases succession planning is carried out in non-profit small business with a maximum of 10 employees. Another reason why the process is unpopular to many organization is that businesses are always faced with challenges that require priority of attention and thinking of whom to be the next executive director or what happens if the financial director leaves can be easily foregone to concentrate on more important issues. Despite many companies ignoring the need for succession planning, it’s important to always acknowledge the contribution of every staff to the course of the company which includes carrying out the business’ mission and achieving set goals. We also need to think of what will happen if services from the most reliable staff members cease to be available. Another factor that contributes to the need for succession planning is the changing realities at the place of work. For instance, young managers interested in the position usually have poor skills and experience needed to fit in the position because they are not well nurtured and mentored (Hrcouncil.ca, 2017). The board has the permit and is obligated to facilitate succession planning for the executive directors. The board ensures that a qualified manager is selected at the helm to implement the company's vision. It is, therefore, crucial for board members to spare time and carry out the exercise with a broad understanding of what is required without scrambling to fast replacing the individual. Failure to choose skilful interim may lead to the business falling into disarray, stakeholders withdrawing their resources and other key employees may quit due to poor leadership. The board is also responsible for ensuring that the succession plan mechanism is put in place in preparation for another important position in the firm. Any alteration to the process ought to be communicated to the rest of the staff as soon as possible. This is necessary since it demonstrated that the board is in full control of the situation and helps to clear all misguided information generated (Hrcouncil.ca, 2017). The Carlson situation In 2006, the Carlson family experience a dilemma on whom to succeed the Carlson companies that they have been running and operating since 1930. During that year, third-generation Chief Executive Marilyn Carlson Nelson stepped down, and her position was to be occupied by her son Curtis, but that was the case. A dispute resulted when Marilyn argued that her son would only contribute to the operation of the companies but was not to be entrusted with the ultimate role of the CEO. She took a step further by removing him from his role of chief operating officer with the aim of diminishing his hopes to the top position. Marilyn's had already planned her successor would not be blood-related and with the help of her board, she hired an external company that would spearhead the whole operation of succession considering members from inside and outside the company. Her actions were against expectation as many in the company thought the top post was locked up for her son (MacMillan, 2017). The first stage in the identifying the successor was to define the job description and to outline all qualities and qualification that were considered vital for the successor to poses. This required the active team to organize separate meetings with Carlson family members and setting executives to identify the right person for the job. During the interviews, a consensus idea emerged: Carlson was in search of a candidate with a global mentality, one who had vast knowledge and was comfortable working with diverse industries. That posed a challenge for interested parties especially those within the company because they lacked a broader exposure in management. While external candidates had a different challenge, they had no experience working with Carlson or any of the Nelson family member who would serve as a contributor the operation of the companies (MacMillan, 2017). After a set period, the board identified a candidate that would bring a perfect balance of what was required; Hubert Joly. Hubert Joly had a good record with Carlson companies being in charge of the Carlson Wagonlit Travel Unit for several years, and also he had gained experience from executive offices he occupies on some high profile companies. Hubert also was exposed to and familiar the company’s brands and services since he was involved in corporate executive meetings. Furthermore, he was a French citizen who would serve as an international symbol for the company and its efforts to make a mark globally. According to Carlson, Hubert had exceeded her expectations, and she was grateful the board was committed to ensuring the whole process of succession was a success (MacMillan, 2017). In conclusion, the directors brought in someone who come from within the organization and therefore respected and understood the role the family played towards the interest of the company. Hubert earned respect from both the family and all staff members in the company a clear indication that he deserved the top position which was thought to be Curtis. The family still controls the business to some extent, but it is important to note that there always challenges in such scenarios especially when family dynamics take action. Appointing a non-family member to oversee the family's business operation is also a fundamental step that ensures that family matters do not interrupt company’s operations. Work cited Hrcouncil.ca. (2017). Succession Planning | HR Planning | HR Toolkit | hrcouncil.ca. [online] Available at: http://hrcouncil.ca/hr-toolkit/planning-succession.cfm [Accessed 3 Feb. 2017]. MacMillan, M. (2017). Issue: Carlson: Succession Planning in a Pinch. [online] Bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2008-09-09/issue-carlson-succession-planning-in-a-pinchbusinessweek-business-news-stock-market-and-financial-advice [Accessed 3 Feb. 2017]. Forbes.com. (2017). Forbes Welcome. [online] Available at: http://www.forbes.com/sites/jaysondemers/2013/09/17/the-top-7-online-marketing-trends-that-will-dominate-2014/#52377c515bea [Accessed 3 Feb. 2017]. Fourtane, S. (2017). Supply chain agility: Nokia's supply chain management success. [online] EDN. Available at: http://www.edn.com/electronics-blogs/supply-chain-reaction/4430478/Supply-chain-agility--Nokia-s-supply-chain-management-success [Accessed 3 Feb. 2017]. The Huffington Post. (2017). How the Online Marketing Industry Is Impacting Local Businesses. [online] Available at: http://www.huffingtonpost.com/zev-gotkin/online-marketing_b_1975230.html [Accessed 3 Feb. 2017]. Emeraldinsight.com. (2017). Plan for supply chain agility at Nokia: Lessons from the mobile infrastructure industry: International Journal of Physical Distribution & Logistics Management: Vol 36, No 6. [online] Available at: http://www.emeraldinsight.com/doi/full/10.1108/09600030610677375 [Accessed 3 Feb. 2017]. Rao, L. (2017). How Social Media Drives New Business: Six Case Studies. [online] TechCrunch. Available at: https://techcrunch.com/2010/07/17/how-social-media-drives-new-business-six-case-studies/ [Accessed 3 Feb. 2017]. Business.com. (2017). Supply Chain Distribution. [online] Available at: http://www.business.com/operations-management/supply-chain-distribution/ [Accessed 3 Feb. 2017]. Techopedia.com. (2017). What is Online Marketing? - Definition from Techopedia. [online] Available at: https://www.techopedia.com/definition/26363/online-marketing [Accessed 3 Feb. 2017]. Walker, R. (2014). Nokia's supply chain management. 1st ed. [ebook] Available at: https://www.homeworkmarket.com/sites/default/files/q5/11/11/nokias_supply_chain_management.pdf [Accessed 3 Feb. 2017]. Icmrindia.org. (2017). Supply Chain Management Practices at Nokia Corporation - Operations Case Studies - Case Study, Case Studies|Case Studies|Operations|Case Study|Case Studies. [online] Available at: http://www.icmrindia.org/casestudies/catalogue/Operations/OPER086.htm [Accessed 3 Feb. 2017]. Read More