Functional curve. Ø Nokia’s giant production plants will take

Functional level strategy

 

A corporation’s functional level strategy aims
to give firm superior efficiency, quality,innovation and customer
responsiveness. Functional level strategy is
a response to operational level strategy. It advocates for the business to
see its management decisions as specific to a functional area of the
organization, such as marketing, human resources, finance and information
management.

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Production strategy

 Nokia has eight production plants in the
world. Seven locations are in developing country two inchina and one in
Mexico, South Korea, India, Brazil, and Vietnam and other plant is inHungary.
It represents that Nokia wants to get benefited from the cheap labor of
those countyand through that cost efficiency achieved properly. All the
production plants location have somestrategically significance. 

 

Strategy for efficiency 

Ø  China’s Beijing production plant is responsible to produce smart
phone and phonethat will be sold to upper segment. They moved here to
create cluster with its keysupplier which helps them to reduce transportation
cost, better relation with thesupplier, saving energy and production time.

 

Ø  USA is one of the key markets for Nokia but production cost
is high thereand it’salso not efficient so they built a plant in
Mexico-Reynosa. This place is few mileaway from US border. Reynosa delivers
smart phones to North, Central and SouthAmerica.

 

Ø  Vietnam is a rising star among developing countries. So it
has potential to giveefficiency in overall production strategy. Nokia started
building plants there in 2013.

 

Ø  Production plants are in a place where it is easy to find
cheap labor, transportationcost is low, and warehouse rent is low. So over all
fixed cost goes down.

 

 

Ø  They maintain a good collaboration with local universities. They
give studentsinternships, training and collaborate with them in education.
These students are futureemployee of the company. So it has impact on the
learning curve.

 

Ø  Nokia’s
giant production plants will take in an average of around 275 millioncomponentsand
then spit out 900,000 finished mobile phones at the other end ofthe line. 

 

Ø  Manufacturing
quality is Nokia’s one of the key strategic advantage. Becauseof the efficacy
of its production plants Nokia can built a phone at 88$ (average) andcan sell
133$.

 

Strategy for quality

Ø  Nokia never outsource its manufacturing to any outsider because it
maintains a verysophisticated manufacturing process. To maintain quality a
completely well trainedmanufacturing team is used for this process.

 

Ø  Chinese Beijing production plant is maintained continues
association with R labin china to improve design of product. It
shows better work there.

 

Ø  Nokia has a raw material policy. Nokia sources components,
materials and servicesfrom suppliers all over the world and expect suppliers to
meet high standards ofenvironmental and social responsibility. By this
they ensure quality.

 

Ø  Nokia has nine research centers all over the world with highly
capable employee whocontinuously working to improve features and
performance

 

Strategy for innovation

Ø  Nokia has nine research centers all over the world with highly
capable employee whocontinuously working to improve quality in
production process.

 

Ø  “Nokia has a long history of open innovation working with local universities andresearch
organizations to further innovation and solving global communication
issuesfor mobile consumers. It also spend huge amount of money for process
innovation.

 

Ø  Nokia Research Center is actively engaging in Open Innovation
through selectiveand deep research collaborations with world-leading
institutions. Goal of the project is to provide better value to the
customer through innovation.

 

 Strategy for customer responsiveness

Ø  Nokia is very customer focused company, for that reason manufacturing
plants are built flexibly meet quickly changed demand of the customer

 

Ø  Nokia has a highly customized product mix, which represent their
strength inflexibility for production. Especially Korean plant
is very efficient for flexibility.

 

Human Resource Strategy

 Nokia’s recruitment strategy
is ensuring that quality people arerecruited who are likely to thrive
in the organization in the long term. For requiting their beliefsis not to
fill the seat but they requite to meet the organization goal of Nokia. To
achieve the goalapplicants are selected on the basis of their skills and
knowledge in relationship to the jobstechnical requirement (person’s job
fit) and on the basis of the fit between a candidate and Nokiaculture
(persons organizational fit).The requirement and selection process is
believed in diversify management and the inclusion process of
minorities. Because the corporate belief is that a diverse workforce like
differentnationalities, men and women, different ethnic minorities contribute
creativity, innovation andsuccess.

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