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WEAKNESS
• Underestimation of the problem
• With the initial 100 complaints that was received by Nokia for the battery issue , they did not paid too much attention .
• Which when turned out to be a big problem , leads to a whole lot of difficult and adverse situation for the organisation .
• The operations team had lack of knowledge about the Tax System in different parts of India
• They didn’t had any direct link with the distributor and hence they have to prepare invoice in behalf of HCL
Q3. WHAT RECOMMENDATIONS WOULD YOU MAKE TO NOKIA INDIA’S CEO TO HANDLE
THE NEXT SUCH CRISIS MORE EFFECTIVELY.
CRISIS MANAGEMENT
• Media should be controlled instantly so that wrong information cannot be passed to the customers. This will prevent the media to
tarnish the brand image of the company.
• The company needs to form an inspection department to inspect the materials beforehand so that crisis can be mitigated.
• The company should not overlook the magnitude of the crisis. It means that the company should look at the size and scale of the crisis.
Ensuring Smooth Product Flow
• Third party inspection and certification should be done at the supplier end so that un-defected material can be installed in the
handsets and recall can be minimised.
• Even if there is some defect in the handsets, Nokia should use a recall protocol by using third party logistics companies so that they
can leverage a stronger resource network. This strategy will also minimise interstate tax related issues to a larger extent.
• The company should prepare a legitimate and shortest road map for reverse logistics.
• The company should create amend organizational structure to manage reverse logistics.
Communication with Suppliers
• In case of such exigency, Nokia should inform the suppliers immediately to stop the production of the defected item and ramp up the
production of correct product.
• Nokia should have alternative local suppliers with buffer capacity so that in crisis they can be communicated to provide replacement
for the defected item promptly.
Q3. WHAT RECOMMENDATIONS WOULD YOU MAKE TO NOKIA INDIA’S CEO
TO HANDLE THE NEXT SUCH CRISIS MORE EFFECTIVELY.
t Strictly monitored direct and Priority to produce and ship more batteries to solve Define the root cause of the design issue
pment indirect product procurement the crisis the same
Products and services under New products with rigorous checks to prevent the A contingency design plan is needed
the brand to be of battery issue Changes to be implemented in all produc
International standards Reverse logistics activities gain more importance Remove faulty and obsolete designs .
Contingency plan New production commitments could not be met in
Produce the replaced product some locations
to make sure the safe for
customers
Q4. CHECK LIST OF ACTIONS TO BE TAKEN TO EFFECTIVELY RESPOND TO SUCH A
SITUATION IN THE FOLLOWING GRID.
stics & No product recall system in place Continuous tracking of product and Multiple logistics channels to be explore
mation Reverse logistics was rudimentary information became crucial exigencies
em Logistics mainly by courier Explore new means for storage and Use of 3PL and 4PL logistics support can
companies distribution and thus seek the help of 3 IT systems to be enhanced for customer
PL agents office communications
Supply of batteries from Singapore and
Chennai to fill the demand