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Supporting video
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Reference no. IMD-6-0197-V
Published by: International Institute for Management Development (IMD)
Published in: 1997
Length: 18 minutes
Data source: Field research
Notes: File size 1.42GB. Click for more information.

Abstract

This video is to accompany the case series ''IMD-6-0197, IMD-6-0198 and IMD-6-0199''. The case abstract is as follows: At the end of 1995, the superheated growth in the cellular phones business slowed down, coinciding with a global lack of semiconductors. Inventories started building and costs climbing. After two profit warnings between November 1995 and February 1996, the share price of Nokia Mobile Phones (NMP), the world''s number two cellular phone manufacturer, fell below 50 % of what it was in September the previous year. The series describes the challenges that companies have in high growth, high technology industries in terms of demand chain effectiveness and globalisation of good demand chain practices. The (A) case describes the Supply Line Management program that Nokia Mobile Phones started to improve its demand chain practices when it realised the vulnerability of its chain. The (B) case explains how a supplier partnership was implemented between NMP''s Bochum factory and Rohm Electronics in Germany. The (C) case describes how the work of NMP''s materials management and supply line teams helped to get the company''s logistics on solid footing again. The results are put into the perspective of managing the whole demand chain; as a start for continuously challenging the existing supply/demand chain management practices. This video was previously numbered 697-036-3.
Location:
Industry:
Size:
USD8,500 million
Other setting(s):
1995-1996

About

Abstract

This video is to accompany the case series ''IMD-6-0197, IMD-6-0198 and IMD-6-0199''. The case abstract is as follows: At the end of 1995, the superheated growth in the cellular phones business slowed down, coinciding with a global lack of semiconductors. Inventories started building and costs climbing. After two profit warnings between November 1995 and February 1996, the share price of Nokia Mobile Phones (NMP), the world''s number two cellular phone manufacturer, fell below 50 % of what it was in September the previous year. The series describes the challenges that companies have in high growth, high technology industries in terms of demand chain effectiveness and globalisation of good demand chain practices. The (A) case describes the Supply Line Management program that Nokia Mobile Phones started to improve its demand chain practices when it realised the vulnerability of its chain. The (B) case explains how a supplier partnership was implemented between NMP''s Bochum factory and Rohm Electronics in Germany. The (C) case describes how the work of NMP''s materials management and supply line teams helped to get the company''s logistics on solid footing again. The results are put into the perspective of managing the whole demand chain; as a start for continuously challenging the existing supply/demand chain management practices. This video was previously numbered 697-036-3.

Settings

Location:
Industry:
Size:
USD8,500 million
Other setting(s):
1995-1996

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