In March 2000, a fire broke out at a factory Royal Philips Electronics, damaging its supply of semiconductor chips. Nokia or Ericsson LM rely on these chips to create their mobile phones, together they received 40 percent of chip manufacturing plant. Both companies are going to release a new mobile phone designs that require chips. At Nokia, word quickly spread up the failure of the chain of command. Team Nokia, which had a crisis plan, jumped into action. With aggressive, comprehensive strategy, Nokia avoid any mobile phone production losses. In contrast to the low-level professional who has received information Ericsson has not notified its leaders about the fire until early April and had to scramble to find new sources for chips. This search has delayed production and proved a fatal blow to the independent production Ericsson, mobile phones. Processing of Nokia, its destruction of food chains provides a vivid example of how strategic risk management company can facilitate the financial disaster and lay the foundation for future success. Disturbance in the supply chain management is inevitable, and grow more and more difficult to assess how the market is becoming more global. "Hide
by Russell Walker, Joanna Wilson Source: Kellogg School of the 8 pages. Publication Date: Aug 07, 2012. Prod. #: KEL673-PDF-ENG
Related Case Solutions & Analyses:
Managing Product Safety of Imported Chinese Goods
Plantar S.A. (Brazil): The Value of Carbon Assets
Sanlus Melamine-Tainted Milk Crisis in China
Integrated Distribution Services Group (IDS): Redefining the Asia Distribution Landscape
Lean take two Reflections from the second attempt at Lean Implementation
Nestle: Quality on the Boardroom Agenda (B)
Agile Software–I Want My WebTV
Instill Corp.: Improving the Food Service Industry Supply Chain
E-Procurement-Concepts, Executions, and Available Technological Solutions
Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management
