Management Functions: Apple vs Nokia

This essay analyzes how Apple and Nokia have effectively or ineffectively applied the functions of management in their business operations, specifically focusing on planning, leading, organizing, and controlling. It highlights the variations in management functions between the two companies and how these functions have contributed to their success or failure.

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Fundamentals of Management
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Course
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Introduction
Management is a critical aspect of organizations around the world. An organization can
have the right market, high-quality products, and good corporate culture, but if these resources
are not managed properly, the organization can fail. In every business environment,
organizations are always strategizing ways of being ahead of the competition by enhancing
market dominance. In 1916, Henri Fayol, praised as the father of modern administrative
management, developed theories for management practice. He discovered specific managerial
functions of planning, coordinating, leading and controlling. These functions have developed to
become the foundation of the management process, and they play a critical role in diverse
organizations. This essay will analyze how Apple and Nokia have effectively or ineffectively
applied the functions of Fayol in their business operations. While Nokia is an old technological
giant whose prowess in making mobile devices was once irrefutable, Apple Inc. has come out
strongly and caused the shift in the market. This paper will highlight the variations in
management functions of planning, leading, organizing, and controlling in relation to the
functions of management, citing how the trends in business operations of the two companies
have changed.
Planning outlines the steps to be taken for the future of the organization. It requires the
manager to be aware of the business environment by analyzing the external factors that might
affect the business. The managers then are expected to predict the future business trajectory and
economic conditions and consequently make decisions that will favor the business. The plans
need constant evaluation and adjustments as per the market trend (Dumas 2013, 8). Planning also
involves resources allocation and management in order to reduce waste. Apple planning is based
on the ambition of taking over the technology market. In 2007, Apple launched the iPhone

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amidst speculations that the phone did not stand any chance at the then mobile market. Nokia
had established itself significantly in the market with sales amounting to over half a billion
phones a year and reversing this market trend was viewed as impossible for Apple. In their
planning, Apple focused on innovation and provision of the high-quality mobile handset through
intensive market research and this enabled them to customize the next-generation handset. On
the other hand, Nokia maintained its status quo and did not forge sustainable plans for the
development of their products in line with the changing market conditions, fostered by
technology advancement. The company also did not induce plan to change their hardware and
software as per customer preferences. In their planning, Apple did not only focus on the local
market but they developed plans to expand into the global market (Heracleous 2013, 95). The
company received global recognition and consumer loyalty from diverse markets in the world.
Nokia focused mainly on the local market and this limited their profit margins (Bean 2014).
Planning results in the establishment of concise and precise goals. It provides the framework for
the next course of action. This enables the managers to effectively predict the trends in the
market. The quick advancement of products by Apple resulted in the company acquiring market
superiority at the expense of the fairly rigid Nokia Company. A good management planning
according to Fayol, should consider the competition and the change dynamics of the market.
The leading principle of management requires the managers to influence and motivate the
workforce towards the realization of the goals and objectives of the business. It requires the
constant flow of information in the organization. Good leaders should have attributes such as
effective communication, motivation, and good human personalities (Griffin 2013, 20). They
should be able to influence the workforce to view situations from their perspectives. In modern
business settings, leaders are required to be aggressive while making decisions. It is essential for

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the leader to outline precise directions which the employee can follow. Additionally, leading also
involves the supervision of the employees at work. Before being ousted, Nokia was at the
pinnacle of sales of tech products. The company had been a techno-genius for a long time before
they were finally overtaken by Apple in September 2011. This was primarily because of the
leadership flaws exhibited by the top management of Nokia. The management style of Nokia
CEO, Stephen Elop contributed to the downfall of the company. The CEO made desperate
moves in an attempt to counter the strong competition presented by Apple. He did not consider
the changing market dynamics that necessitated the change of hardware and software for mobile
devices. In contrast, Apple CEO Steve Jobs was a robust leader who used his autocratic
leadership style to effect quick changes in the company. Steve Job pushed for the introduction of
the iPhone, iPod, and iTunes in the product mix of Apple and this has proved to be the key
reason for the success of the company. Steve Job predicted well the market dynamics and
channeled the company towards embracing creativity and innovation. Another failure by Nokia
was in regulating brain drain. Most of the employees were being poached by the competition and
the management did not enforce measures to address this. The success and failure between the
two companies are largely attributed to the difference in the leadership model.
Organizing function is achieved by incorporating together the assets of financial, human
and physical relationships. The managers are required to identify those activities that need to be
accomplished, classify the activities and assign them to specific groups by creating or delegating
responsibilities. It is important for the managers to set the objectives in line with the resources in
the organizations (DeCenzo et al. 2016, 32). Organizing also relates to creating departments
within the organization to handle specific tasks. The contrast in the organization structure
between Apple and Nokia can be seen in the difference in the performance of the two

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organization especially during the last decade, where there was an increase in competition. The
corporate management in Apple is structured in a way that allows quick and easy flow of
information. The company has simple and well-defined hierarchies, with a clear cut division of
labor where each department is allocated a specific task. This increases efficiency within the
organization. The culture of Apple is evident in a way that the company handles communication
regarding its product and also the systematic release of new product each year (Umoh 2017)
However, Nokia is diversified in its production line with the company relying on third-party
software providers such as Android. This diversification is more of a liability to Nokia. The
command chain of Nokia is another limiting issue as there is a hindrance to the fluidity of
information due to management bureaucracy. This limits Nokia from making quick decisions.
Apple simplicity in the organization structure has enabled it to implement key decisions that
have facilitated the expansion of the company.
Controlling management function is tasked with measuring the achievement of the set
objectives. It also provides the mechanism for the managers to evaluate a project and institute an
intervention for a corrective course of action (Talib 2013, 15). It is not only focused on financial
objectives but also on meeting non-tangible objectives. Both Nokia and Apple have affected
control measures in their business operations. For example, Nokia sold its handset division to
Microsoft in 2013, to exercise control on its hardware and software. Additionally, Apple
produces hardware and software solely for the use of the company. Apple has constantly rejected
offers to lease its Software to third party companies. This in house control enables Apple to
efficiently integrate the software with the hardware and minimize compatibility issues.
Additionally, Apple is keen on the copyright of its patent and intellectual property and the
company has been involved in a number of litigation processes regarding copyright

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infringements (Kim, Hyoungshick and Song 2013, 949). The company additionally is active in
the social media platform and tries as much as possible to address the concern of its consumers.
By being in close contact with the users, Apple is able to understand the needs of the niche
market. Nokia has failed on this as their product has not yet met the requirements of the
developing market. The company was not flexible to the changing market demands.
Conclusion
The four functions of Fayol are important in the management of any organization. From
the foregone, it is evident that Apple Inc. utilized well these functions enabling the company to
lead the technological space in the global market. In contrast, Nokia failed to properly implement
the functions and they were fast replaced from the helm of techno-giant. These principles of
Henri Fayol are not only applicable in the consumer electronics space but also in the other
industries as well.

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Bibliography
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