Nokia is not trying to sell its business. Well, at leas for now. Their operations will continue as normal within the same premises actually. The only difference will be they will have a significant cash boost as a result of this sale. However, they are likely to pay a rent for using the same place owned by someone else.
It's a bit like becoming a tenant in a property you used to own and live in.
They are making their target bigger. If they are trying to sell the company, they sport a better balance sheet and now dont have to worry about selling buildings if the buyer wants to merge both firms.
Well, if the strategy works fine - downsizing/outsourcing and letting space viz-a-viz. Would devising a new driver(s) for its mobile phone business not a best option? Or exploring other innovatives have all been exhausted?
I am not sure if outsourcing will be cheaper than having full-time employees working for Nokia. Maybe if the outsourcing is done in the Far East it could work out to be cheaper. If that is the case, the management overheads for such outsourcing could be quite expensive.
I also agree with Bolaji on Nokia's objective of strengthening the balance sheet.
Nokia has not said how it is going to use the cash. I suppose the money will be used to pay for the expenses without making more staff redundant for a few more months.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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