NOKIA CASE STUDY

Nokia Case Study

Nokia Case Study

Introduction

Case Study Analysis

Nokia is a large for profit multinational organization which is founded in Finland. It is one of the biggest manufacturers in the world, but Nokia began its business from producing pulp mill. Nokia adds value by focusing on its technology and improving its products to fit customer's satisfaction. Nokia is part of telecommunication industry, and belongs to tertiary economic sector. Speaking of its achievement, high popularity of its mobile phone and products quality is always praised by its users. As a big company worldwide, Nokia has a great number of employees; therefore, organizing is vital for Nokia. The organizing is the “process of arranging people and resources to work toward a common purpose” (Schermerhorn, 2007). In order to adapt the business environment timely, Nokia improves its organizational structures constantly.

Discussion

Answer to Question No 1

Competitive Environment

Nokia remained indulged in a variety of businesses in the late 1980's. For instance it made different electronic appliances including televisions. It also had a great business in machinery and industrial cables and claiming itself as number third in Europe. During the years 1991 and 1992, Nokia also lost a large sum of money in its major business activities i.e. 120 million dollars. At this point, Nokia required new strategies to tackle this situation. Nokia had already cut out on various business activities but it was still left with businesses like industrial cable and manufacturing. At this point Nokia was also looking forward to a new Chief Executive and their choice was to appoint Jorma Ollila. Ollila had previously run a small division of Nokia. The strategic choice required to focus on mobile phones had four different criteria's which include: judging the telephone market that it had a great potential for growth and development, Nokia already owned a profitable business in this area, telecommunication markets being privatized and deregulated throughout the world and the technological change that is taking place rapidly. However, all these judgments explained carry some or the other risk. The strategic choice of the company seems to be in a constraint because of the presence of limited resources available with the company. Moreover, Nokia was not even able to spend a lot of amount on its research and development as much as its rivals were spending. Its rivals include Ericsson (Sweden) and Motorola (USA). With the passage of time, Nokia sold off its other interests and only focused on cell phones and this helped to overcome some of its difficulties.

Answer to Question No 2

Environmental analysis

The income distribution is changing by the people in some developing countries. Numbers of low income people also tend to spend more money on communication. The effect is that low class mobile phone will become permeate larger. Some overseas companies may decide to change their strategy to reduce their price to withstand the pricing attack from local companies in these countries. The world is increasingly focusing on personality development. More and more people concentrate on their cell phones own characteristic to ...