COURSE TUTOR:

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BMG900J3
Capstone International Strategy
COURSE TUTOR Patrick Mc Namee
Why Nokia Should Locate In Ireland

• Presentation Team
• Liu Hui Su Yuan
• Wang Guohong Zhang Dan
• Wang Wei Zhang Jun Sheng
• Wu Haijian Zhou Zi Qi

5 August, 2002
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The team
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Executive summary

• Introduction to IDA Ireland
• IDAs objective and vision
• Why Ireland Porters diamond model
• Strategy of Nokia company
• Conclusion

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Whats IDA Ireland?

• IDA Ireland has national responsibility for
  securing new investment from overseas in
  manufacturing and international services sectors
  and for encouraging existing foreign enterprises
  in Ireland to expand their businesses (IDA,
  2000).

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What does IDA Ireland want to achieve?

• Objectives
• Encouraging expansion of investors
• Convincing new overseas companies to invest in
  manufacturing internationally traded services
• Fostering objective of regional industrial
  development

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The Vision of IDA

• To be a world-leading society as reflected by-
• A knowledge based economy with world class
  infrastructure
• At the forefront of technological innovation
• One of the top three most competitive countries
  in the world
• People committed to lifetime learning
• A socially inclusive and cohesive multicultural
  nation

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The Vision of IDA

• To be a world-leading society as reflected by-
• The highest environmental standards
• The top five locations in the world as a base for
  manufacturing investment, together with the US,
  Singapore, Finland and the Netherlands
• A stable, profitable, English speaking base to
  service the European market and beyond

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Porters Diamond
Chance
Company Strategy and Rivalry
Demand Conditions
Factor Conditions
Govt
Related and Supporting Industries
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Gateway to Europe
Factor Conditions

• Ireland is a founder member of EMU.
• There are over 25,000 European nationals living
  and working in Ireland.
• Many companies choose to locate their EMEA
  headquarters in Ireland.

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Quality people
Factor Conditions

• Unique Workforce
• Ireland has the youngest population in Europe
  with over 40 under the age of 25 years.
• They are also highly educated and highly
  motivated.

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Cost of Employment
Factor Conditions
Total hourly Compensation costs in US for
production workers
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Education
Factor Conditions

• The education system meets the needs of
  competitive economy. (country score)

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EU Member
Factor Conditions

• Unique advantages
• Only English speaking member of the euro-zone
• Unique trading with the euro-zone without
  exchange rate risk
• Take advantage of all the benefits Ireland

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Related Supporting Industries
ICT in Ireland

• Base of World s leading electronic companies
• Wide activities
• World-wide exporter of software

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Telecommunication
Related Supporting Industries

• (1). Advanced and competitive telecommunications
  systems.
• (2). Unlimited connectivity
• (3). Over a terabit of internet
  protocol/WDM-based capacity.

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Telecommunication
Related Supporting Industries

• State-of-the-art telecommunications
• (4).Irelands sophisticated telecommunications
  system enables companies to
• achieve economies by centralizing their European
  administration
• link design and development engineers, scientists
  and other RD personnel
• provide marketing and customer support by
  telephone throughout Europe from a single call
  centre.

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Word class Sub-supply
Related Supporting Industries

• A strong, high quality support structure
• These suppliers export US 250 million each year.
• Suppliers are accredited, such as ISO 9000, and
  meet the exacting demands of electronics
  manufacturers, including JIT supply.

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Logistics
Related Supporting Industries

• Ireland is a trading nation, exporting 95 of
  GNP. A highly efficient distribution network
  brings most of Europe within 24-48 hours by
  truck. An increasing number of companies are
  gaining additional advantage by centralising
  their pan-European distribution logistics in
  Ireland.

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Financial service
Related Supporting Industries

• International Financial Services Centre
  (IFSC)
• Response to the rapid growth of the financial
  services
• The unique demographic profile
• Employment situation in Ireland.

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Economy
Demand Conditions

• Real GDP Growth 2001

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Economy
Demand Conditions

• High growth rate due to
• Favorable demographics
• Education and technology-oriented investment
• Upturn in global economy

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Rivalry
Company Strategy and Rivalry

• Key competitors in Ireland
• Motorola
• Ericsson
• Siemens

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Government commitment
Govt

• Pro-business regulatory framework
• Social partnership
• Government initiatives
• Science foundation Ireland

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Fiscal incentives
Govt

• Tax
• Capital grants

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Legal environment
Govt

• Common forms of commercial enterprises
• Limited company
• Branch operation
• Joint venture
• Unlimited company

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IDA and government
Govt

• Working closely with various Government
  departments
• A full-service national development agency, a
  so-called one-stop shop. It deals with all
  aspects of inward investment.

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Chance
Chance

• E-business
• Irish Telecoms market
• EU financial environment

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The company

• Nokias objectives
• Strengthen the position as a leading systems
  and products provider.
• Nokia strategic intent
• As the trusted brand, is to create personalized
  communication technology that enables people to
  shape their own mobile world.

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Nokias strategy
The company

• Being the preferred provider of products and
  solutions for mobile communications
• Creating personalized communication technology
• Strengthening and leveraging Nokia, the trusted
  brand
• Expanding the business and market position on a
  global basis.
•  

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Competitive position
The company

• Will be 1 in global tele-market
• Nokias product matrix
• High relative quality

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The company
Leadership

• Innovation capacity

• Best qualified people

• Most motivated staff

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Market addressedNokias sales (2001)
The company
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Why Nokia should locate in Ireland?
Conclusion

• Access to EU market
• Strong government and community support
• Skilled and productive workers
• Competitive operating environment
• Lowest corporation tax
• Congruence of Nokias strategy and locating in
  Ireland

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Conclusion

• Top successful companies located in Ireland

• Apple Computer

• Dell

• ATT

• IBM

• Motorola

• Ericsson

• Choose Ireland--youll be a good company!

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THANK YOU