Strategic Change

Strategic Change

Abstract

In this paper we have presented the strategic change that is undergone by Nokia Company. In the previous days the Nokia Company faced significant challenges. The company made use of innovative strategy to drive stability in the operational and organizational structure of the company. Within this changed strategy Nokia has proposed its collaboration with the Microsoft. In this paper we have mentioned the adverse facts that constrained the company to adopt the changed strategy and implement that strategy in its organizational and operational areas. Furthermore we have presented the major elements of the new strategy as well as the new organizational framework and leadership team proposed in the new strategy.

Introduction

Strategic change is considered as a need for organizations to survive in an unstable environment. Strong global competition and rapid change of technology are often mentioned as main motives for organizations to adapt their organization strategy. More or less every one who understands that challenges that Nokia is facing agrees that the change is needed and it is unavoidable.

Need of Change

Nokia had unused the most important change in the revolution of smart phones. Mobile phone devices were the main focus of the Nokia Company rather than the applications of the mobile phones (software). The life cycle of their products had considerably reduced as compared to others. This company has faced strong competition from producers of mobile phones. Many of the employees in Nokia Company are now believe that company is focusing more on the product rather than the needs of the customer (Sadowski, 2003). The factors that forced the change of strategy in this company includes: poor complacency and leadership, lacking entrepreneurial and innovation spirit and complex structure of organization with unfortunate accountability.

Elements of New Strategy

Nokia has planned its new direction of strategy, involving changes in operational ...