Nokia OYJ: Financing the WP Strategic Plan Harvard Case Solution & Analysis

The Nokia case offers the opportunity to explore financial policy in a situation of wide-ranging tactical change. In the last few years, the leading manufacturer of mobile phones in the world's, Nokia, had seen its market share and profits eroded by rival products such as Apple's iPhone and mobiles featuring Google's Android operating system. In February 2011, enhance its competitive position and Stephen Elop, CEO of Nokia and the recently appointed president, announced a broad strategic strategy and partnership with Microsoft to correct the business class. Analysts see the next two years as a period of great uncertainty for the company.

The CFO of Nokia consider its effects on the potential need for outside capital, as well as the appropriate mix and price of the equity or debt financing that might be utilized to raise those funds and must reassess the company's fiscal policy in light of the plan. Nokia, like many technology businesses, commonly carried high cash balances to maintain fiscal flexibility, but in 2008 and 2009 in response to the worldwide financial crisis it had drawn down cash to historically low levels and experienced several downgrades of its own debt by leading credit score agencies. Students must assess the tradeoffs between maintaining cash reserves and the requirement for outside resources and work through the implications of financing the projected need for external resources with equity or debt.

PUBLICATION DATE: July 13, 2011 PRODUCT #: UV5656-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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