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GLOBAL MANAGEMENT

There are 4 questions. Answers don’t have to be long. Two to three sentences are fine. I uploaded the article which you have to read and answer the questions based on the reading. The powerpoint can help in understanding the business concept of it. Please stick to the powerpoint and article when answering DONT GOOGLE. 

(1)

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In analyzing a business’s success (failure), we typically examine its strategies in three domains

1. Vertical scope: strategies used in the same industry; the strategies are those that firms decide to whether vertically integrate or outsource the upstream (downstream) value-chain activities in the same industry.

2. Horizontal scope: strategies used for diversification across different industries; the strategies are those that firms decide how much and where they diversify via multiple products or stay focused.

3. Geographical scope: strategies used for expanding across countries; the strategies are those that firms decide how many and where they globally expand beyond their domestic country markets.

Nokia was ranked as one of most global valuable brand in the world in 2007. How did Nokia do right in (1) vertical scope (2) horizontal scope (3) geographical scope? 

(2)  

In analyzing a business’s success (failure), we typically examine its strategies in three domains

1. Vertical scope: strategies used in the same industry; the strategies are those that firms decide to whether vertically integrate or outsource the upstream (downstream) value-chain activities in the same industry.

2. Horizontal scope: strategies used for diversification across different industries; the strategies are those that firms decide how much and where they diversify via multiple products or stay focused.

3. Geographical scope: strategies used for expanding across countries; the strategies are those that firms decide how many and where they globally expand beyond their domestic country markets.

As a mighty company, Nokia fell from a leader position so fast. How did Nokia do wrong in (1) vertical scope (2) horizontal scope (3) geographical scope? 

(3) 

How did Nokia do wrong in technology? Think more critically about this question. Considering the following facts:

– Nokia was leader of smart phone market in 2006-08

– Nokia started the app business very early (OVI); even Stv Jobs didn’t see the apps revolution in the beginning of iPhone.

– Nokia was good at managing the 1G/2G ecosystems

– For operation system (OS), it is better to control your own destiny when you are still in strong position, which is why Nokia embraces MS-OS, instead of Android. 

(4)

Combing your thoughts on Question 1-3 and other factors, what is the root cause of rise-and-fall of Nokia (the root of problems)? 

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