The Changes in the Economic Environment of Nokia Essay

The Changes in the Economic Environment of Nokia - Essay Example It is used in finding out how much the company is leveraged in debt, comparing what is owed to what is owned. This is a measure to find out the company’s ability to borrow and repay money.As shown, Nokia has 40% debt leverage in 2009. This figure is 29% higher than its D/E in 2009, and a significant departure from conservative borrowings from 2000 to 2007. Its long-term debt in 2009 amounted to 4.439B representing a 400% increase from 2008 of 861M.Nokia uses the international capital markets to finance investments. The company sells stock, issue bonds, and obtain loans from commercial banks. The Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges. Recent share price is offered at 9.64 â‚ ¬ (Yahoo finance) Nokia has the same outstanding shares of 3.7bil for 2009 and 2008. This is a decline from its previous years’ outstanding shares which are above 4bil. from 2000 to 2007. (msn) Based on the figures derived from the company’s financial statements for 10 years, the company is still in a healthy financial position. Its short-term operations have been affected by the economic recession as shown by the decline of sales and revenue for 2009 and 2008. Yet, the company has remained financially strong to pay its obligations. In 2009, the company has changed its strategy in a capital structure using more debts in financing its resources. As it is, the company is 40% leveraged and 60%f equity. At 40%, debt leverage is still a good balance as it is not more than the total equity. The company tends to have additional benefits in this capital structure such as tax advantage. In conclusion, Nokia can be a safe investment because of its strength has been in business for many years. It operates worldwide and does not concentrate on US market alone. Its weakness lies in technology which is slow in responding to competition’s design. Opportunities remain strong for worldwide operations as communication is an important commodity for everybody. The threat is the fast-changing technology that has to be addressed by Nokia through continued research and development.

Human resource mgt Essay Example | Topics and Well Written Essays - 1500 words

Human resource mgt - Essay Example In a research paper (Geary, 1992) was critical of these assumptions. He found that management's reliance on temporary employees gave rise to a number of contradictions and tensions, and in the end was considered to be disadvantageous. A major advantage of flexible human resource practices is the low cost of labor as cited by (Smith, 1998) in his article. In his study he concluded that a larger proportion of foreign-owned companies had lower labor costs as a result of the greater use of flexible work practices. The application of the most flexible work life balance policy not only increases the loyalty of employee but also increase the fame of the company as best places for employment. (Dex and Scheibl, 2001) Mostly women do not find it compatible to work in the technical field due to their care taking duty towards their family in this way a huge amount of talent is drop out of the talent pool. Due to the flexible environment by the firm a broader recruitment pool can be made available. (Center for Ethical Business Cultures, 1997; Evans, 2001) With providing the employees with the facilities of flexible working hours the firm can also get the benefit by offering increased service hours for the customers. Since in this age of competition and increased customer pressure in order to achieve a cutting edge in the business it is important for a firm to provide 24/7 service (Evans, 2001; Human Resources Development Canada, 2002). The provisions of service for longer hour's will not only improve the corporate image but will provide the firm with increased market share (Dex and Scheibl, 1999; Center for Ethical Business Cultures, 1997; Evans, 2001). With undertaking the flexible work practices there are also some areas which should be addressed by the management in order to effectively undertake human resource practices. Studies of some of the best United States and Australian organizations (Gray, 1992) also suggest that the cement which binds skilled and motivated employees to their organization, who are thus more enthusiastic, more committed and potentially more productive than their competitors' employees, is clear and ongoing communication between organization managers and their employees. The management of the SFL should also take the advantage of the communication process in order achieve the higher level of performance from the employees. A modern and a more permanent approach to motivation are through job enrichment (Wright, 2004). This involves putting meaning into jobs. In other words, it is putting Herzberg's two-factor theory into effect by building motivators into the job. These motivators include achievement, growth, responsibility, advancement and recognition. This approach can also work for SFL staff. According to the approach the organization should plan to change the job contents of the employees in order to motivate them as explained by Ross (1998) in his article A practical