Strategic Enhancement of Nokia Company to Excel in the Market

The assignment content provides insights on how Nokia company can raise its business standard by applying appropriate business strategies. This includes embracing the internet, introducing innovative products like mobile phones with QWERTY keyboards and memory cards, and involving employees in decision-making processes through democratic leadership style. Moreover, the Cultural Web model can help identify customers' needs and demands, leading to better evaluation in the competitive market. By continuously updating technology in their mobile phones, Nokia can maintain its position in the market.

BUSINESS
STRATEGIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
NOKIA COMPANY........................................................................................................................3
IDENTIFICATION AND JUSTIFICATION OF STRATEGIC CHOICE THEORY OF NOKIA
..........................................................................................................................................................4
APPLICATION OF STRATEGIC CHOICE MODEL TO THE NOKIA COMPANY.................5
STRATEGIC THEORY..................................................................................................................6
Cultural Web.......................................................................................................................6
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy plays an important role in the organization because this strategy
provides a platform to the firm where they can plan for their future goals and objectives. It also
provides the information of the competitive markets. This business strategy also guides the
business like what they have to produce or in which market they have to focus more (Teece,
2010). By applying culture web strategy company can easily raise their profit and brand images
in the customers mind. Business strategy is based on the organization internal and external
environment so with the help of business planning, firm can easily find their positive and
negative aspects. The present report is based on Nokia which is a technology based company
which are providing different kinds of mobile phones. This company is famous for their fast
customer service. The prices of their phones are affordable and approximately all mobile shops
sell their products to the customer. Mission of the organization is to connect with their customers
and provide them best and innovative services or products. This report also includes the
organization profile, the roles and responsibility toward their customers and their strategy model.
Strategic theory related to cultural web has also been covered in this report.
NOKIA COMPANY
Nokia Company is known as world no. 1 Manufacture Company for their mobile phones.
The head office of this organization is situated in Finland and the current CEO of the firm is Olli-
Pekka Kallasvuo. This firm acquired approximately 38% mobile market share and the earning is
about $40 billion in the years (Montgomery, 2011). The image of firm is well established and
they have approximate 55,000 employee’s team. This company divided their market into four
segments which are based on customers' satisfaction, devices, competitive market and NAVTEQ.
It is an information provider application which acquired by the company in their Mobile phones.
This company changes the perspective (Verbeke, 2013) of the customers by launching their
small mobiles phones. All people put their interest on it and they do not use the big bulky
phones. Nokia provides so many features in their new phones like they are wireless, having good
camera and the different games' application etc. So all things attract the customers and profit of
the organization goes high. This company launches OVI application into the world. By this
application, people can easily find the operation center and during driving people can easily find
the way if they have internet connection. For the better suitability, company simplified their
products like they divided the mobile phone into series as C, X, E , S etc. Here C shows the
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business focused group, N stand for high end technology, S stands for limits and selective
editions and X shows the entertainment things of the mobile phones. When the time passed,
company launched their new phones which were based on the QWERTY keyboard (Campbell,
Edgar and Stonehouse, 2011). After launching this phone the progress of the organization went
high. More ever, firm start their You-Tube channel where they guide their customers how to use
their phones and the application.
IDENTIFICATION AND JUSTIFICATION OF STRATEGIC CHOICE
THEORY OF NOKIA
Strategic choice theory based on the consideration of the external forces and the impact
on customers and the company. It is the best theory for Nokia because it describes why Nokia
change their mobile phones and what is the main reason behind this. It is very important for
company to change their development process as per competitive environment so this firm
accept all the changes as per requirement and beat the business world. The reason behind using
this theory is it explains the changing environment and how organization accepts the changes.
The culture web theory is based on the company strength, weakness and their opportunities.
Moreover, this theory also provides information about the external environment and the sources.
Buy using this model firm can easily determine customers taste and preference. For example,
with the help of feedback option company can easily determine customers want and according to
their reviews they change their production. Culture web also provides a information about
internal environment so by this head department can easily determine the changing behavior of
employees. Nokia strategic choice is based on operational channel and the latest technology.
This firm put their focus on geographical segmentation and the growth of business. Company
uses this theory for better mobile designs and styles in their mobile phones. The main reason
behind using this theory is when firm get a feedback from their customers so they noticed that
customers want more stylish mobile phones' so for the better convenience they use choice model
theory (Cinquini and Tenucci, 2010). By applying this mode; the organization can easily find
their resources because it is based on the environment analysis. With the help of this, company
can easily find customers' perspective toward them and the negative and positive point of their
mobile phones. As per example, for better customer relationship Nokia put a feedback form at
outside of their office and in their website. So by using this form customers can easily share their
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views and problem with the firm and by customers Review, Company change their future
strategy. This planning is based on the mobile phones design and the services of the company.
APPLICATION OF STRATEGIC CHOICE MODEL TO THE NOKIA
COMPANY
Strategic choice and their evaluation Nokia organization restructure their strategies,
mission and their goal which are based on customers' satisfaction. By applying culture web
model company change their operation and divide their whole work into the team. In team they
appoint one team leader whole guide their whole team. Firm change their goals and make them
long term because with this long term goals firm can set their vision and clear it to all employees.
In strategies model organization used leadership strategies and in this planning they minimize the
cost and put their focus on goal which is based on the development of the organization
(Loorbach, van Bakel and Rotmans, 2010). Further, applying this model Nokia can easily
evaluate customers need and launch new mobile phones which are based on cheap price. So by
this they cover up middle class customers and fulfill their demand. The main evaluation come by
applying this strategy is Nokia Company raise their profit and satisfied their middle class
peoples. So the trust of the other consumers is build and they start purchasing this company
product. Today's world is growing fast so for their better development Nokia put their focus on
the customers' choice and employees welfare. The director of the company uses this model for
understanding the taste and demand of the customers. The main concept of choice model is
organization cannot provide everything to everybody. So for solving this problem, firm choose
the unique way where they launch a product which satisfied the basic need of the consumers.
More ever, Nokia uses the leadership strategy, in this planning they minimize the cost and put
their focus on goal which is based on the development of the organization (Loorbach, van Bakel
and Rotmans, 2010). By applying choice strategy firm provides a cheap price mobile phones to
their middle class customer and also give them discount and loyalty vouchers. The main
evaluation come by applying this strategy is Nokia Company raise their profit and satisfied their
middle class peoples. So the trust of the other consumers is build and they start purchasing this
company product.
Impact of strategic choice model- By applying this model In the organization board of
directors and mangers find that their brand images goes high (Teal and Becker, 2011). It is a high
time for Nokia because in every shop their mobile phones are sell. Approximately 60% of market
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share is based on this organization. Investors start investing in this firm and Customers feel
happy that company put their concentration on their feedback. The trust of the customer on this
company goes high and it creates a positive relationship between them.
Critical analysis of this choice model- According to the Teece (2010) choice model is
good for knowing the customers' need and demand. For the better development of Nokia they
have to use the business strategy as well. As per Verbeke (2013) by applying different strategies
firm not only know the customer need but also gain the knowledge of competitive market and
their internal environment. However, business strategies provides the information of the positive
and negative points of the organization so by this, company put their focus on decreasing
department and by applying appropriate strategies they can easily change into the profitable
department. In other hand,by applying this model company know their positive and negative
points and know the main reason behind the downfall of company reputation
STRATEGIC THEORY
For better understanding Nokia, there has been used for cultural web theory for Nokia
Cultural Web
Culture plays an important role in Nokia because it repents the role and responsibility of
all employees and head department. Moreover, corporate culture put their huge impact on
company work and their internal environment (Campbell, Edgar and Stonehouse, 2011). This
firm time to time take a feedback from their employees and according to their reviews change
their strategies which are based on management system. There are some elements which are
explained as follows:
Elements of Cultural Web
It is a representation or assumption theory which is based on paradigm of Nokia
company. Culture web explains the internal and external environment of an organization. It also
includes how company managers guide and train their employees and develop their skills which
are related to work. Further, the changing behavior of employees for their company and how
firm deal with is all things have been covered by this web (The Cultural Web, 2016). There are
some points in culture web which are explained as follows:
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Stories - In this the board of director of Nokia company explained the role and responsibility to
each other. Like what they have to do and which process is followed by team leader. They also
explain the structure of an organization to their all employees
Symbol- It includes company symbols some logos and the representation of the nature of the
company.
Power structure- This structure explain the power of each department. Like managers of Nokia
company give an instruction to their employees, and all workers follow them and give their
suggestion to head department which are related to work.
Organization structure- This company follows the line and department structure where head
managers of Nokia divide their whole work into sub group. Mangers also appoint one team
leader in one team.
Control system- In this leader, manage their whole team and give their working report to
organization.
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Illustration 1: Illustration 1: Culture Web
Sources: (The Cultural Web, 2016 )

Routines and rituals- Nokia company follow all rules which are provided by government and for
ethics provide a good working conditions to their employee (Loorbach,Bakeln and
Rotmans,2010). For better development human resources' management time to time take a
feedback from their employees and according to their review change their management
strategies.
Story of Nokia company
Nokia is the first company who entered into technology market and today they are best
telecommute company in the world. In order to strength their position is very established in
smart phones market. Company launch GSM, CDMA segment and protocol in the market. in
2011 company face huge losses which they are covered up in 2012. in the year of 2013 company
launch their new phones which contain high uses of battery and in this year company earn
approximate 750 million euro. There are so many declines in past few years but when Microsoft
hire acquire this company ,firm maintain their standard once again. After this company launch
their new Google android phones. Nokia also providing dual SIM ,low weight phones to
customers. Nokia does not face a competition from I phone but there are also big brands like
Sony, Samsung who are big competitors. But this firm beat all the competitors and maintain their
current image into the competitive market.
Organization structure
The structure of organization is horizontal and it provides all kind of facility to their
employees .like they all are free to share tier views and idea to each other. Company divide their
whole department whee production department check the need and demand of customers and
according to their reviews firm plan their units. The solution department solve the customers
queries and they provide 24 hour customer services to their customers. Moreover, service
department also design a service for the internal environment of organization. This department
put their focus on messaging, maps and music services which they can provide to their customer.
Corporate department looks for future growth of company and how they grab more opportunities
in competitive world. This department also provides operation support to their employees. For
example, Nokia company joint venture is with Siemens so this firm provides network structure to
organization.
Nokia last five year performance and culture web impact
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Illustration 2: sales performance of Nokia company
Sources: (Symbian was winning, 2012)

According to this graph it is cleat that last three year was not good for Nokia company
because at that time they gain lots of loses. Moreover, the management of CEO was not up to the
mark. That's why organization corporate revenue fell 40% and sales revenue goes down by
50%.it was a disaster time for Nokia so for Bette situation they change their strategies and apply
culture web strategy at their workplace (Campbell, Edgar and Stonehouse, 2011). After this the
sales margin of company raised with 10% every month and the resown behind their success is
company put their main concentration on customers demand. So according to customer demand
company change the body of Mobile phones and make them more stylist. Due to this customers
start buying the product of this organization.
Analysis of Cultural Web at Nokia
Nokia is a leading company in customers mind and it is famous for their customers’
satisfaction factor. In other hand organization culture provides lots of facilities to their
employees like good working condition, motivation, appraisal etc. Moreover, firm believe in
practical elements of the Cultural Web.
So for this they provide all practical training to their new employees rather than theoretical
description (Nokia: a product or a service company?, 2016). Company time to time changes their
culture and updates it but it is not easy and it takes time. So for better efficiency organization
create a long term goals for their internal environment. All employees of Nokia Company follow
their culture but sometimes it creates some problem when firm adopt two or three culture at one
times.
Corporate cultural of Nokia
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Illustration 3: Nokia contribution in sales
Sources: (NOKIA: NOt a King In America !, 2016)

This company believes in to provide the best product to their customers so for this
they time to time take a feedback from them. According to customers reviews firm change their
strategies. Organisation follows basically four main principle at their workplace and they are
like- respect of individual, satisfaction of employees and customers, learning process and
achievements.
Goal which are based on culture web of Nokia
It is such a big task to maintain their position in competitive market and beat all new
companies. This company time to time updates their technology and tries their best to provide
best services to their customer. Culture web reflects company mission and vision because it
provides a platform where firm can easily determine their all positive and negative aspects.
Nokia house which are situated in Boston provides a research and development facilities to their
employees, so by these workers can easily increase the level of company (Teece, 2010). Second
thing which changed by this organization is, they provide flexible desk to their workers, so by
this, they can easily move their work from one place to another. So it shows organization
provides best working facilities to their employees.
Evaluation of Cultural Web
Culture evaluation explains the changes which are based on human sociology. As a time
passes the need and desire of peoples are change and they want all things stylish and unique.
Culture of organization not only based on internal environment but also based on technology,
people behavior etc. For better evaluation in internal department company divide their whole
work into team and allot one team leader (Campbell, Edgar and Stonehouse, 2011). This person
guide and motivate their workers and help them in their work. Moreover, organization use
culture web model at their workplace and according to this model firm evaluate some points
which are explains as follows:
Urgent innovation in technology – When company apply culture web model so they find
out that there are so many competitors in same markets like Samsung, Sony etc. So for maintain
their current position Nokia company investing R &D facilities to their employees. By this
research and development facilities employees can easily do their work for company. After these
workers come up with sophisticated item and beat all competitive market.
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Embrace the internet- Nokia company launch internet mobile so by this, they replace the
uses of laptop. The main reason behind this is this company mobile provides all facilities to their
customers so they do not want laptop and PC.
Leadership style- Manager of company changes their leadership style and use democratic
style. In this leader involve their all employees into decision making process so by this, they feel
motivated and give their best potential at workplace.
Moreover, Cultural Web put a positive impact in the success of organization. By applying this
model firm can easily understand the need and desire of their employees and customer (Verbeke,
2013). Further, launch innovative products like; QWERTY keyboard mobile, SIM and memory
card mobile etc. For better evaluation company open its website, so with the use of these
costumers give their suggestion to firm.
CONCLUSION
According to the present file, it has been concluded that by applying appropriate business
strategy Nokia Company can raise their business standard in the customers mind. More ever,
with the help of Cultural Web model they can easily identify the customers' need and demand
and the evaluation in competitive market. Firm time to time update the technology in their
mobile phones and by this activity they maintain their position into the market.
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REFERENCES
Books and journal
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & Organizational Change. 6(2). pp.228-259.
Loorbach, D., van Bakel, J. C. and Rotmans, J., 2010. Business strategies for transitions towards
sustainable systems. Business Strategy and the Environment. 19(2). pp.133-146.
Montgomery, C. A., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Teal, R. F. and Becker, A. J., 2011. Business strategies and technology for access by transit in
lower density environments. Research in Transportation Business & Management. 2.
pp.57-64.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
Nokia: a product or a service company?. 2016. [Online]. Available through:
<http://nextconf.eu/2012/09/nokia-a-product-or-a-service-company/>. [Accessed on 11th
April 2016].Teece, 2010)
Elements of the Cultural Web. 2016. [Online]. Available through:
<https://www.mindtools.com/pages/article/newSTR_90.htm>. [Accessed on 20th April
2016].Teece, 2010)
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