Nokia
Manpreet Kaur
8221186
Organizational Effectiveness BUS8560
Elodie Jordens
October 2,2017
Table of Contents
TOC o “1-3” h z u Executive Summary PAGEREF _Toc494678459 h 3Introduction PAGEREF _Toc494678460 h 4Changes in Organisation PAGEREF _Toc494678461 h 5Before Change PAGEREF _Toc494678462 h 6Need for Change PAGEREF _Toc494678463 h 6Failure of the Change PAGEREF _Toc494678464 h 7Alternative for the Change PAGEREF _Toc494678465 h 7Conclusion PAGEREF _Toc494678466 h 9References PAGEREF _Toc494678467 h 10
Executive SummaryThis case analysis clearly indicated that change is not always good. The Nokia was one of the finest India’s leading company in terms of telecommunication which was initially started as a pulp mining company. It grasped the heart of many customers in very short span of time. The also follow the theory was Lewin’s change Model which includes majorly of three steps-
Unfreezing- This Step usually undertakes the educement of those factors which maintains the behaviour of present level of organisation. This sometimes indulges the process of physiological disconfirmation. Members can be motivated to engage in change activities.
Moving- This step shifts the behaviour of the organisation department or individual to the market new level. It also intervenes in the systems to develop new behaviours, values and attitudes through changes in organisational structures and process.
Refreezing-This step stabilizes the organisation at the new stage of its equilibrium. It is frequently accomplished using supporting mechanism that reinforce the new organisational stage, such as organisational state, culture, rewards and structures.
Nokia is a mobile telecommunication company and offer far more than just mobile phones for every day use, they also offer networking for business solution that help to stay connected and communicate with each other always and places. We had talked about the history and how they entered the competitive world of telecom. Nokia success benefits were some features as well as some services they offer to the consumers. It has some weakness but we considered them be very minimal. Lastly, we had talked about their organizational change and industrial change, we also looked and discussed all the elements and why they were relevant to Nokia.
IntroductionNOKIA is one of the finest Finnish multinational company in the field of information technology. It was established in 1865. Nokia give employment to approx. 1 lakh people across the globe covering 100 countries, it is a public limited company and place its market in national stock exchange too, it posses the 415th largest company measured by the revenues of 2016, its main components are euro stocks and stock market exchange. Its founders are Fredrik Ides tam and Leo Michelin. Its headquarters is situated in Espoo, Usama and Finland. It also serves the people world wide.
It was stated as a pulp mill but since 1990’s it shifted to tele communication infrastructure. Nokia also serves its major parts in mobile telephone industry having recently the development in GSM, 3G, LTE standards, after it gone with the partnership with Microsoft its mobile business got a hike. This deal was completed on 25 April 2014. Nokia also entered in the sector of digital health and virtual reality.
Nokia’s history was started in 1865 when Finnish mining engineer establish the pulp mill near the town, after that in 1992 Nokia joined its hands with Finnish rubber works and Finnish cable works who was a largest producer of cable and electronics. In 1967 these three companies combined and created a new company by the name of Nokia Corporation.
Nokia expanded into the Soviet market. It also acquired a mobile telephone company. It was the first company to start messaging service in other language apart from English.
Changes in OrganisationNokia being one of the reputed mobile manufacturing company had gone through many changes in its management strategy. It is one of the leading manufactures of mobile, the company sells its mobiles in so many countries across the world. Nokia realised the issue of need for change and has ensured that it had a tie up with Microsoft, this organizational change should be carried with the stake holder communication effectively, Nokia joined its hands with Microsoft and dwindled the confidence of many employees and customers. Not only this but the company also changed its management strategies. This organisational change should include the internal communication system with its employees before going for the change but the company hired the staff from outside which resulted in not only demotivation of internal staff but also a high wage to external people.
The company launched its new hand sets in the market and in built a Microsoft processor as it joined its hand with the Microsoft corporation. The new business phone was not at all accepted by many of the customers. Nokia is driving from the change in communication industry to covering internet and its growth. It seems like every year the company re-shuffles its leader and communication policies. The company is also planning to change in its sales and market prices, which is going to affect their many employees in terms of monetary denomination. The company also changes its workforce adjustment in the global process operations.
The company started its life as a lumber pulp mill to a communication company and now into a multi national corporation. The company launched its smart phones in 2007 which had given the rise to downfall of the firm. Many news declared that company will not be able to match its designated position now, as by then apple and Samsung hold a grasp in the market worldwide. This progression tuned out to be the source of reduction in the mind sets of customers.
Before ChangeBefore this change took place, the company was expanding into the sector of electricity business in Finland. To insure the continuation electricity supply from Nokia generators fiendish rubber works acquired the business of insolvent company.
In 2000 Nokia first launched its handset name Nokia 3310 and soon it became one of the 1most popular devices after at the handset Nokia 1100 came into the market and became the best selling mobile phone of all the times and old the position of worlds top selling consumer electronic products.
Nokia was one of the first company to recognize the market opportunity of game in a mobile phone, after that the company also re-entered into the computing market and announced a high end based Netbook. In 2013, Nokia 6600 with the VGA camera, Bluetooth and expandable memory was one of the first Symbian device to sell over a million in number.
The technology which the company was adopting was quite monotonous and stopped getting its popularity after a specific point of time and soon customers starts shedding their interest from this company.
Need for ChangeThe company need this change because the customers was started losing their interest from the company and soon its market was coming down at a fast rate. The reasons are very much visible.
There is always a need in the organisation to change its technology. Nokia did not observe the intensity of mobile internet that was holding a major place in the markets and was busy continuing in its work processors. The company adopts many ways to innovate, develop and transform them according to the need of change in market but was not able to cope up with the running market competitors and they were successfully running across its desired goals more effectively.
Failure of the ChangeThe involvement of share holder is very essential for the successful transformation of any business. The company did not follow its survey feedback background because of which there was an adverse downfall in the financial aspect of the business. The experts who was previously supporting the change by the company were now sharing the concept of external stake holders and started sharing the common vision for the objective of change in management.
Thus, the dis-interest and dis-engagement from the frontline staff was one of the major reason for the downfall of the company. The company launched its first business phone in 2011 which was not at all accepted by many customers as that was a high-tech phone and was not compatible to many customers. At the same time apple launched its I phone in the market with many features which attracts the customers and lined towards its although it was double in cost as compare.
Alternative for the ChangeThe company rather than going for its organisational change should have adopted PROSCI method of change in management. It is one of the effective change method theories. In tis model of change there are three important stages. If the company would have adopted this transformation in the organisation it would have result in the market capitalisation.
Despite of the fact that Nokia has changed its approach towards the first the first phase of change in market value the company only partial part of its phase was successfully implemented. The other changes of PROSCI Model of managing the change have been emphasising on the effective strategy and was missing the accountability and other internal issues. Rather than going for the recruitment of external staff the company should focus on hiring of its internal staff only rather than going for the external hiring so that to have a best knowledge of internal staff which benefit the company in terms of cost and credential its confidential market value.
ConclusionNokia was one of the leading player in the mobile industry and was earning very effective in terms of releasing new method and technology. It also came up with new models which attracted the global markets very soon. Nokia has stick to its old pattern while other companies’ like Apple, Samsung were entering the market with their high- tech technological systems. the traditional mobile devices kept altering its market target, when there was an emergency need to change its fundamental change in management has not been effectively checked by the company. The company’s decision of merging with Microsoft was came out to be not a fruitful decision, which ended up with ruining the fame of Nokia. The new handset which the company launched was not accepted by many customers because of which company started sheading up its shares from the market.
The adverse effect of this change was that the company started losing interest of its employees as this decision was not previously discussed with them. The company started going into the losses on such a vast level that it had to wind up its electrical sector and only few handsets were available in the market. This only emphasis the fact that for any organization their cloud be the need for change management and for such scenario its is very essential that they adapt the change manage principles and guidelines that could provide them a direction the outcome from the entire process of change management.
References BIBLIOGRAPHY (2017). Retrieved from worst tech merger : http://www.zdnet.com/article/worst-tech-mergers-and-acquisitions-nokia-and-microsoft-aol-and-time-warner/
foundation, w. (2017, september 28). Retrieved from Nokia wiki: https://en.wikipedia.org/wiki/Nokia
Gossips, A. (2017). Retrieved from case study of nokia change management: http://atozgossips.com/2016/05/27/the-case-study-of-nokia-change-management/#_Toc406116073
Worley, t. G. (2009). Organizational Development and Change. cengage brain .