SUMBUL MUGHAL

MBA CASE STUDY 2019

MANAGERIAL COMMUNICATION

SUBMITTED TO: Dr. HASSAN

Saturday, DECEMBER 14, 2019

A BOMB IN YOUR POCKET? CRISIS

LEADERSHIP AT NOKIA INDIA

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Answers to the questions asked in the case:

1. How intense is the magnitude of the crisis? How would you unfold and how you
prepare your management team for this?

The leadership crisis at Nokia India will definitely have a larger magnitude,
effecting Nokia itself, the customers and can give an opportunity to the new
entrants in the market. The immensity of such crisis is explained as:

 Magnitude of the crisis:

According to the facts and figures given in the case, in India there were 261
million mobile subscribers in 2007 and 10 million subscribers were being added
every month. So firstly, because of such crisis Nokia might lose a large number of
present customers as well as potential customers. Secondly, as this crisis will hit
the Nokia’s brand image it will make the market share down which is 40% at
international level and 70% at national level. In addition, other competitors can
take this crisis as an opportunity and can lead the market. Lastly, this crisis would
not only damage the Nokia’s image in India but it would hurt the Nokia’s brand
image globally.

 How to unfold:
The first action would be the outright denial in press conference that the story
which media has presented is not true as they’re just exaggerating the issue of
overheating batteries and there is no such big incident, like explosion, took place.
Secondly, I would tell in the press conference that we are working well since
many years and this is the first time that we’re facing such complains. What
media is doing is just the sensationalization of the issue. The actual issue is that
customers are complaining regarding our particular model of Nokia mobile i.e.
BL-5C and we are working on this and soon we’ll find our customers satisfied as
we do care about them.

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 Preparing management team:
I would ask my management team to be active 24/7 until the issue resolves.
Team members have to be alert as much as they can, monitor every complain
they receive from customers and make them satisfied that their mobile batteries
will be soon replaced and there is no such likelihood of any explosion with such
present batteries.

2. As a managing director at Nokia, how would you communicate with the

following:
 Media
 Customers
 Employees
 Retailers/dealers
 Headquarters
 Suppliers

 Media:
For media, I’ll arrange press conference in which I will explain that customers
have complains for only particular model of Nokia mobiles, all others models are
safe to use. Issue with BL-5C model is just of overheated batteries while charging.
We have designed an SMS service for our customers by which they can replace
their batteries by following simple steps mentioned in the SMS. And we are
working on other ways by which this issue can be resolved. Customers don’t have
to worry as their mobile batteries will be soon replaced within a month. We have
large number of mobile units for battery replacement so we want 30 days’ time
period for which we need our customers’ cooperation.

 Customers:
For customers, I will design SMS service as cited above, will contact with
customers via toll-free and will design an advertisement to be run on televisions
and Nokia’s website, in which we will show the whole procedure that how by
following simple steps one can make his/her mobile battery replaced.

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 Employees:
For employees, I would circulate a memo among them. The memo will explain
the following:

To: All employees

From: D. Shivakumar, the Managing Director

Date: August 15, 2007

Subject: to be responsive to handle the ongoing crisis at Nokia

Employees,

As I came to know from all of you and as well as from media that what is going on
at Nokia. It is first time that we are facing such crisis. As per my knowledge, we
are facing an issue with our only particular batch of mobiles so I would ask you all
to follow the actions which I have recommended below:

1. run an SMS throughout India. SMS must contain the website link and the
procedure by which customers can know that whether they are eligible for
battery replacement, by doing so we will have an idea that how many
batteries to replace.

2. be alert and available 24/7 online for the customers and the suppliers too.

3. contact with suppliers to arrange new batteries as soon as possible.

I hope these actions would help us to come out of this dilemma if you effectively
follow these steps. And it is also necessary for you all to don’t get panic in this
situation. You just have to cooperate with each other. We will soon recover!

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 Retailers/dealers:
Foe retailers and dealers, I’ll arrange a meeting the agenda of which is to
communicate with suppliers to provide the retailers new batteries. And the
retailers must have new batteries in bulk so that if any customer comes so he/she
would not leave disappointed.

 Headquarters:
For the headquarters, I would have video conference with them. I will discuss the
whole matter and will also inform them about the actions we are going to take
(same actions mentioned in memo).

 Suppliers:
To suppliers, I will send them an email as they are located in other countries.
The e-mail will be as follows:

Subject line: to arrange new batteries as soon as possible

All suppliers,

As you all are oblivious about Nokia’s current situation. Customers are facing
issue with Nokia’s particular mobile model and media is exaggerating this issue in
its own way. What I have decided is to replace those batteries, for which you all
have to arrange the new ones as soon as possible, because our customers are
also panic right now and we cannot lose them at any cost. So I need your support
in this regard, we all are a team and we have to combinely make efforts to
resolve such issue.

Your cooperation will be highly appreciated.

Best regards,
D. Shivakumar, Managing Director, Nokia India

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