International Financial Management - Essay Example

Therefore it can be said that Nokia is responsible for rapid growth in cellular communication and is a pioneer in this field. These four groups are serviced by two other horizontal groups, which are Customer and Market Operations and Technology Platforms. These groups are further supported by various other groups and teams centered mostly in headquarters, related with corporation functions. From 2008 onwards however, three different groups involved in mobile device business and their respective horizontal groups have been integrated into a single unit and named Devices & Services.

The main reason for this integration is to increase horizontal integration across the company. Another important aspect of Nokia’s business model is its sales and customer services units. These units are dispersed across more than 150 countries. There are ten different factories across nine countries involved in cell phone manufacturing operated by Nokia. Some models are outsourced to various contractors as well. Nokia is controlled by a group executive board which is responsible for its operative management.

The appointments on group executive board in turn are made by the Board of Directors. The Group Executive board currently has eleven members. In line with its long term vision of flexibility and innovation Nokia has recently decided to bring central changes to its management structure. The move is not only marked by a management strategy but a major change in business strategy as well. As mentioned earlier mobile phone market is saturated with many different players such as Apple, Samsung, and Philips etc in tough competition.

Therefore Nokia’s group executive board has decided to shift its focus towards making Nokia an internet company. The management structure will therefore be changed into three main units i.e. devices, software and services and markets. The main focus of Nokia’s corporate governance strategy