The slowdown of the economy had been started by a declining rate in the investment and spending of the business capital. With the bursting of several other new technologies and competition, businesses in the industry of telecommunication networks and products, have been taking up an extremely pessimistic perspective towards the future of the economy and restricted the spending being made for the purchases of equipment, real estate, software, stock and inventories, and several other different forms of investments (Halsey 2007). The industry in which the organization of Nokia had been suffered a lot by the impacts imposed on reducing the spending in capital, where there had been nose- diving in the prices of shares and the earnings as well.
Pressures on Performance
The business of Nokia had been dealing with several pressurizing factors that took place from a number of different sources that were external as well as internal. The external pressures had made an approach mainly from the markets of capital, along with an involvement of inappropriate behaviour in management (Soffer 2007). Management had often been under pressure for meeting the performance indicators of short- term, like growth in revenue or earnings, ratios of finance tied up with the covenants of debt, or several other different types of measures. The members at the top- most level of management had also faced several pressurising factors for demonstrating that there had been a growth in the value of shareholder as a result of their form of leadership.
Sophistication and Complexity of Business Transactions and Structures
There has been an increase in the sophistication in the markets of capital and the creativity involved in the bankers of investment along with a number of other advisers of finance. This had resulted in fostering a number of complex instruments of finance along with structures transactions of finance (Murphy 2009). A number of companies in Finland, along with Nokia, now have been using complex transactions, where there is an involvement of transactions with each other as in case of the sales or purchases of assets, intricate the agreements on operations, and derivative transactions that have been designed for meeting a certain objective of making reports along with an objective focused on the economy.