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Bronte Wright

on 28 January 2014

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Transcript of NOKIA

It all starts in Finland...

Nokia in China
Purpose of using expatriate managers

Expatriate managers deployed due to lack of local technical skill and for dissemination of corporate culture

In 2004, Nokia had 220 expats living and working in China (Pascoe , 2004)

Increasingly important to international business to develop language and cultural understanding for doing business with China
Nokia's Language Policy
Impacts arising from lack of cultural or language skills in China for Nokia:
Lack of respect and co-operation
Loss of empowerment and motivation
Teamwork impacted
Cultural adaptation – culture shock
Isolation from employees, feelings of exclusion
Lack of training – issues meeting performance targets

Specific Nokia issues
◦ Training for expatriates of Chinese culture inadequate (Goodall, et al., 2007)
◦ No specific language training provided (Goodall, et al., 2007)
◦ Rapid changes in Chinese culture due to increasing personal wealth – loss of market share due to lack of cultural understanding (Rein, 2011), lack of expatriate adaptation with employees (Goodall, et al., 2007)
◦ Lack of co-operation and teamwork (Goodall, et al., 2007)

101,982 people employed in
120 countries
Sales in more than 150 countries
From 2012...
1865 Paper
1898 Rubber
1912 Cable
1967 Merger
1979 Telephone Networks
Today, it's fair to say Nokia is just about everywhere...
Nokia Personnel
by Geographic Area 2013
Nokia Net Sales
by Geographic Area 2013
to global language management

Cultural and language differences
- International, national and regional
Knowledge sharing and relationship building
Distorted communication (Andersen, H. & Rasmussen, E.S., 2004)

In Conclusion
Graph 1

Graphs 2&3

Nokia globla Statistics

Nokia History

Andersen, H. ,& Rasmussen, E.S., 2004, The role of language skills in corporate communication, Corporate Communications: An International Journal, Vol. 9, No. 3, pg. 233, © Emerald Group Publishing Limited

Black, J.S., Gregersen, H.B., Mendenhall, M., & Stroh, L., 1998, Globalizing people through international assignments, Boston, MA: Addison-Wesley.

Goodall, K., Li, N. and Warner, M., 2007, Expatriate managers in China: the influence of Chinese culture on cross-cultural management, Working Paper Series: Cambridge Judge Business School, viewed 24 January 2014, http://www.jbs.cam.ac.uk/fileadmin/user_upload/research/workingpapers/wp0701.pdf

Pascoe , R., 2004 Hot expat destination: China, 23 August 2004, viewed 25 January 2014, http://www.expatica.com/hr/story/hot-expat-destination-china-10944.html

Rein, S., 2011, Why Nokia Falls in China but Apple Soars, CNBC Online, 25 July 2011, viewed 26 January 2014, http://www.cnbc.com/id/43877676

Tahvanainen, M., 2000, Expatriate Performance Management; The Case of Nokia Telecommunications, Human Resource Management, Summer/Fall 2000, Vol. 39, Nos. 2 & 3, pg. 267–275, © 2000 John Wiley & Sons, Inc.

Fisher, H., Flores, G., Friis, A., Johnson, N., Kirkwood, L., Mujitaba, B., G., 2009, Expatriate Performance Appraisal Management: The use of a 360-Degree Feedback at Nokia Telecommunications, January/February 2009, Vol. 5, Nos.1, Nova Southeastern University, USA

British Council, 2013, The English Effect, British Council

Kass. K., 2012, Nokia's internal communication driven by social media, Simple communicate, viewed 25 January 2014, <http://www.simply-communicate.com/case-studies/company-profile/nokia%E2%80%99s-internal-communication-driven-social-media

Phillips A. D., 2008, Finland (Modern World Nations), Chelsea House, New York, p.59 – 60

Harvey, M. G. and Buckley, M. R. 1997. Managing inpatriates: Building a global core competency. Journal of World Business, 32 (1), pp. 35--52.

Neeley, T. 2014. Global Business Speaks English. [online] Available at: http://hbr.org/2012/05/global-business- speaks-english/ar/1 [Accessed: 20 Jan 2014].

Reiche, B. S. 2014. Staffing Across Cultures: Welcoming the Value That Inpatriates Bring. IESEInsight, Iss. Second Quarter 2010 Issue 5 pp. 39-41.
Training & Selective Recruitment
Expatriate Performance Management
Training for users
British Council in Finland has established a major partnership with Nokia to bring English language services to nine million users in 2015 (British Council, 2013)

Selective Recruitment for employees
Recruit employees with qualified English skills
Nokia expatriate performance management (Tahvanainen, 2000, Mujitaba B. G., 2009)

Top manager
Middle manager
Business establisher
Customer Project Employee
R&D project Employee
= 1200 Expatriates
Questions around Expat Performance within Nokia:

Types of goals set
Evaluate performance
Taking training courses opportunity
Linkage between performance and pay

Successes of the policy

Embedded English as Corporate Language

Highly successful use of Expatriate Managers from 1985 (Tahvanainen, 2000).

Effective communication and support tools such as Internal Staff Communication systems (Kass, 2012).

Use of culturally appropriate marketing and media (as highlighted by sales successes in graphs 1&3)
Suggested policy solutions for Nokia
Issue: Lack of knowledge flow
Strategy 1 : Inpatriation
Issue: Cultural Barrier
Strategy 2 : Language & Cultural Training
How to roll out recommendations to staff
Update Language Policy to include the use and management of Expatriates and Inpatriates

Make all employees aware of changes using of existing infrastructure such internal employee communication system and external website.

- A cheaper alternative to Expatriation
-To deepen culture knowledge
-Removes "Glass ceiling perception"
Develop Language Training Modules for Expatriates

Avoiding cultural shock through cultural training

Integration of Chinese inpatriates with expatriate training
Full transcript