Nokia´s rising star flickers (manufacturing firm)

The problems being encountered by Nokia Corp., a company that grew from a small pulp mill on the Tammerkoski River about 160 km north of Helsinki into one of Finland´s major industrial firms, with manufacturing businesses in rubber, paper, and cable, are discussed. These include the social disruption that its employees suffered during the divestment of its old businesses and because of management mistakes in its new ones and over extension, due to rapid expansion, that resulted in a 16% decline in earnings last year when the recession hit. Current retrenchment efforts, internal expansion, and the use of strategic alliances are examined.<>