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Review the article by Manuj & Mentzner.

Create an essay that applies the Supply Chain Risk Management and
Mitigation Framework (figure 3). Select an international company (focal
firm) and then apply the steps described to create your assessment of the
local company operational risks within the firm and the risks associated with
suppliers and the risks associated with demand risks.
Do not use the figure in your paper. Use the figure as a guide for creating an
essay explaining the risk factors. Include steps two, three, four, and five in
the assessment of each risk.
This paper should be between three and five pages and may include
periodical or magazine articles as support for facts presented in the risks. You
can include the Manuj & Mentzner article as a peer-reviewed journal article.

Individual Assignment Resources:

Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management.
[Article]. Journal of Business Logistics, 29(1), 133-155.

Supply Chain Risk Management for Nokia

American Military University

RLMT 500 Reverse Logistics Management

December 5, 2021
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Supply Chain Risk Management for Nokia

Supply chain risk management is essential in running a successful business. Supply chain

risk management enables companies to predict possible dilemmas that might hinder their success

and prepare appropriate solutions. Risk management also helps a company eliminate waste and

adopt best practices in the supply chain. Nokia is a multinational company founded in 1865

(Nokia, n.d.). Since its inception, the company has successfully provided electronics, such as

phones and telecommunication services to its clientele. Despite its success in previous years,

Nokia still faces several supply chains risks. The five steps that Nokia's management can use to

mitigate these risks are risk identification, risk assessment and evaluation, selection of

appropriate risk management techniques, implementation of supply chain risk management

strategies, and mitigation of supply chain risks.

Supply Chain risks Nokia Faces

One of the risks Nokia currently faces is the operational risk caused by employees’

inability to predict and design technologies that appeal to a larger audience. This operational risk

results in losing clientele to competitors (Manuj & Mentzer, 2008). The appropriate solution to

this problem is encouraging employees to conduct focus groups to interview customers on their

desires and incorporate the feedback into the new products’ design (Coelho et al., 2018). This

solution can be implemented through organizational learning and can help Nokia stay ahead of

its competitors in the future.

Another type of risk affecting Nokia is supply risk. Supply risk occurs when global trade

wars influence how and when Nokia can receive its raw materials or ship its finished products to

its customers. This risk can cause the company to lose its clientele and market share to other

companies. The appropriate solution to this problem would be risk-sharing. Nokia can partner
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with a different telecommunications company, such as Samsung, to produce its consumer

electronic goods and ensure the company always has enough products to sell to its clients.

Implementing this solution will require complexity management since its success will depend on

the effective running of the two organizations. This solution will prepare the company to handle

future trade wars and their effects.

The last form of risk Nokia experiences is demand risk caused by inaccurate sales

forecasts. The company has developed and sold products that do not have as much popularity as

expected on several occasions. These inaccurate sales have led to the loss of capital and raw

material that could have been used on other projects. The best solution to this issue is hedging,

which could help offset the losses made on one product by ensuring that the company has a

related product to sell (Awudu et al., 2019). For this solution to be effective, the company should

invest in sales analytical tools to help determine clients’ demands and needs. Implementing this

solution will enable the firm to eliminate waste and retain its clientele.

Supply chain risk management is essential for running a business effectively. The supply

chain risk management process requires the adoption of five key steps. The steps are risk

identification, risk assessment and evaluation, selection of appropriate risk management

techniques, implementation of supply chain risk management strategies, and mitigation of supply

chain risks. Nokia is a multinational company that has existed for 156 years, and despite its long

history and success, it faces several supply chain risks. These risks can be managed through

organizational learning, complexity management, and the adoption of sophisticated sales

analytical and predictive tools.

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References

Awudu, I., Asare, A., Asa, E., Osmani, A., Gonela, V., & Afful-Dadzie, A. (2019). Maximizing

profits in an ethanol supply chain with hedging strategies. Journal of Supply Chain and

Operations Management, 17(2), 221-241.

https://www.csupom.com/uploads/1/1/4/8/114895679/jscom17n2p5.pdf

Coelho, P. S., Rita, P., & Santos, Z. R. (2018). On the relationship between consumer-brand

identification, brand community, and brand loyalty. Journal of Retailing and Consumer

Services, 43, 101-110. https://doi.org/10.1016/j.jretconser.2018.03.011

Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management. Journal of Business

Logistics, 29(1), 133-155. https://doi.org/10.1002/j.2158-1592.2008.tb00072.x

Nokia. (n.d.). Our history. https://www.nokia.com/about-us/company/our-history/