Strategic Planning Process for Nokia Corporations in International Business

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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Abstract
The purpose of this assignment is to analyze the strategic planning process and determine the
needs, benefits and approaches for the selected business organization Nokia Corporations which
a Multi National Business organizations. The report, determines the increasing pressure of the
MNC companies operating in the global market and the pressures faced by them for global
integration and national responsiveness. The international strategy implemented by Nokia
Corporations will be identified in the report. The basic steps taken by the business organizations
in strategic planning excluding external environment scanning will be analyzed. It analyzes the
trends in the global market and external changes in the geographic areas in which the chosen
business organization has been operating. Further, the report analyzes the strengths, weakness,
opportunities and threats as well as goal formulation. It reviews the major functions of
marketing, production and finance used by the business organizations and implemented in the
strategic plan. It further explains specialized strategies which are appropriate for the emerging
markets as well as international new ventures. Lastly, the report provides recommendations and
concludes the report.

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Table of Contents
Introduction......................................................................................................................................2
Literature review..............................................................................................................................3
Analysis...........................................................................................................................................6
External environment analysis of India.......................................................................................6
Demand and culture analysis of the country................................................................................7
Strategy formulation........................................................................................................................8
Recommendation...........................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
Appendix........................................................................................................................................20

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Introduction
Nokia Corporation is a multinational company of telecommunications and consumer
electronics. The selected multinational company Nokia corporations have been founded in the
year 1865. The headquarters of this company is situated in Espoo in Finland. Nokia corporations
is considered to be the 415th largest company in the year 2016 measured by its revenue (Alon et
al. 2013). Nokia Corporation manufactures and operates in the mobile and electronics industry.
The company Nokia Corporations manufactures range of cell phones and mobiles, electronic
devices and other software which offers to the customers and the target audience to experience
enhanced facilities like music, videos, capturing images and pictures, games, navigation and
business mobility in their manufactured mobile and electronic devices (Field et al. 2013).
Moreover, Nokia Corporations also offer to its customer’s equipment solutions and other
services by providing communication networks through Nokia Siemens network. It manufactures
and operates in four business groups including manufacturing and selling of mobile and cell
phone devices, multimedia, enterprise solutions and communication. The four business groups
are operated and supported by the other departments of the company such as the customer and
market operations team and the technology platforms including various corporate functions.
According to Gangeshwer 2013, in the past years the company Nokia Corporations strengthened
its positions in its consumer electronics and mobile market and in its telecommunications. The
multinational communication corporations headquartered in Espoo, Finland, produces and
manufactures products such as mobile electronic devices, telecommunication, telephones, maps,
music, games, messaging, and other software related features in the mobile devices offered by
the multinational company Nokia. The company has a joint venture with Nokia Siemens
network and Siemens that provides the company telecommunication facilities network and the
required equipments, services and solutions. With around 124,000 employees in around 120
countries, it is the world’s second largest mobile manufacturing company. Currently, the
company wants to open manufacturing facilities in the country India (Field et al. 2013). The
purpose and objective of this assignment is to perform an in-depth external environment analysis
of the chosen country India. The assignment provides an environmental scanning in India, its
protectionism policies and national responsiveness of the citizens of India. It considers the
internal strengths and weakness of the company and formulates an effective strategy using the

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global integration vs National Responsiveness matrix that can be used by Nokia corporations in
penetrating and developing new markets in the chosen country that is India (Gangeshwer 2013).
It determines the imperative approaches that can be adopted by Nokia Corporations in support of
the strategy. Further, it conducts and external environment analysis of the selected country India
and match the analysis with the internal resources of the selected MNC Nokia Corporations in
the form of financial, operation and human resources through situation analysis. Lastly it
recommends an effective solution in which the selected MNC Nokia corporations can implement
the strategies and concludes the assignment.
Literature review
Summary: The literature review covers the theories and models required by the business
organization for expanding its business to the targeted country. It explains the difficulties and
challenges of business expansion. Further it explains the theory of Hofstede’s culture dimension
theory and its implications while taking decisions for targeting the business expansion in the
selected country. Further, the theories and models of PESTLE model are explained in this section
which is required by the business to analyze the situation of the country in respect to the business
setting. It also explains about the internal strength and weakness of the company in determining
suitability of the company in the selected country for business expansion.
Business expansion challenges and difficulties
According to Halbert and Rouanet (2014), every business organization faces the
difficulties and challenges of business expansion or the growth of the business organization.
Expansion of business is considered to be a part or a stage in the business life cycle or the
product’s life cycle. The business growth or the business expansion is often associated with
increase in the financial revenue of the company’s owner and the employees of the business
organization. It was mentioned by Hang, Garnsey and Ruan (2015), business expansion is
considered is considered as a validation of the company owner’s initial business idea and the
start up of the business organization and to achieve the goal and objectives of the company by
following the vision and mission of the business organization. Business expansion also
represents the owner of the business organization to address the myriad issues. According to

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Hayes (2018), growth and expansion of the business organization presents various challenges
including managerial, legal and financial. Growth and expansion also requires additional capital,
new opportunities and responsibilities to the investors, shareholders, institutional leads and the
investors of the company.
Hofstede’s cultural dimension theory
As mentioned by Halbert and Rouanet (2014), the Hofstede’s cultural dimension theory
can be implemented for the expansion of business to Asia. The theory has been developed by
Geert Hofstede; it is a framework that can be used by the business organizations while taking
decisions upon expanding its business to other countries and to discern the way in which the
business organization analyzes the differences in the culture and habits of the citizens of the
targeted countries by the business organization. As stated by Hang, Garnsey and Ruan (2015), it
is the way in which the business organization discerns the ways in which the business is done
across the cultures and habits of the citizens of the targeted countries. The framework of
hofstede’s cultural dimension theory is used by the business organization to differentiate the
various national cultures, the dimensions of culture and the impact of the culture in the setting of
the business in the particular country. As mentioned by Kumar and Sethi (2016), the framework
of hofstede’s cultural dimension theory can be identified into six categories that define the
culture that includes power distance index, collectivizing vs. Individualism, uncertainty
avoidance index, feminity vs. masculity, short term vs. long term orientation, restraint vs.
indulgence.
PESTLE analysis and framework
As stated by Lauring (2013), PESTLE analysis is used by the company while analyzes
and taking decisions as to which country to expand its business. The PESTLE analysis is
considered as an analytical tool for the strategic business planning. According to Kamalahmadi
and Parast (2016), it is also a framework to understand the external influences of and its impact
on the business organization. For analyzing the external environment of the business PESTLE
analysis and its framework can be used. The framework includes the political factors about the
degree of political intervention in the country or the economy. As mentioned by Kumar and Sethi
(2016), it includes the political stability, the policies and procedures of the country,