Planning and Implementing Organizational Change Report 2022

RUNNING HEAD: PLANNING AND IMPLEMENTING ORGANIZATIONAL CHANGE
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NOKIA
Planning and implementing organizational change
Report
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Part A
Nokia Corporation is a Finnish multinational company indulged in the telecommunications,
consumer electronics, and information technology networks. The company announced further
steps to align its organizational structure to its strategy, strengthening its leadership team and
position the company for success in the 5G era. In the late 1990s, company was a world’s
leading mobile producer it is essential to introduce changes. The company faced layoffs or plant
closure as it was facing losses (Aspara, 2011). The leading players of smartphone business such
as Samsung and Apple give tough competition to Nokia. This has reduced the sales and
diminished the value of company from the market. Nokia faces competition from Chinese local
producers that influences Nokia’s environment as they produce duplicate copies of Nokia’s
mobile phones and sell on the reduced prices. The major reason company diminishes from the
market is that Nokia did not adopt the changes in trends in the telecommunication industry which
are necessary for growth (Bernstrøm, 2015).
The major weakness of the company is it lacks accountability of employees and leadership in the
management. Nokia did not adopt the innovative methods in the emerging competitive
environment and faced the failure with the traditional methods (Senior & Swailes, 2016).Nokia
sells phone assets segment to the Microsoft with the supply agreements, customer contracts, and
software or services. There are different elements that influence Nokia’s environment.
PESTEL Analysis
Political
The political element influences the Nokia’s policies as Finnish government has declined to
provide bailout or special favors that forced the company into an uneasy agreement with
Microsoft. Nokia faces limited support from the end of government as it originates from a small
nation. This is because the company faces challenges in finding ties with superpowers, alliances
with these superpowers are essential for business growth. In addition to this company is facing

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challenges from the Chinese market.These political elements forced the company to take
production units in expensive countries such as the United States ( Bridgman, 2018, ).
Economic
The economic elements influence the Nokia environment as due to the Europe economic turmoil
diminishes the buying power of Nokia in the home markets. Nokia lacks various economic
resources compared to competitors such as Apple and Samsung. The research and development
capabilities of the company are comparatively weak that give opportunities to other companies to
develop new devices and tap new markets. The company lacks finance for extensive research
and development that limits the company to adopt innovative techniques.
Social
Social and cultural factors influences the Nokia’s environment is wide use of smartphones and
mobile applications such as Whatsapp that functioned on the Google’s Android and proprietary
IOS but Nokia relies on the traditional Microsoft Windows Phone that brings failure (Deering,
2018). Along with the emergence of new companies in market has led to change in the taste and
preference of the customers. This has also reduced the sales of Nokia at aggregate level.
Technological
Technological elements that influence the environment of Nokia did not adopt innovative
operating system such as IOS and android. The demands of consumers are changing such as the
quality of photographs, business purpose and watching videos online. The changed taste and
preferences of the customer influence the environment of company as it faced difficulty to sell
the products to younger age group (Gabriela , 2015). Nokia did not adopt innovative technology
such as tablets and wearable technology that negatively influence the business environment.

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Legal
A legal element that influences the Nokia environment is that challenges to operate in the
European Union because of the action taken by authorities against Google. Government new
rules and regulations in the customs rules and regulations affect the business environment
because Nokia’s product manufactured locally (Griffeth, 2011).
Environment
The environment elements that influence the company’s environment are that environmental
authorities draft more rigid laws and regulations regarding the disposing off the waste materials.
The company faced the problem in disposing off the waste material in a sustainable manner. In
recent years, laws of disposing off the waste material through the electronics or recycling used
devices are costly in nature and expensive for the company such as lithium batteries.
PORTER’s 5 force analysis
Threats of Substitutes
Threats from the major brands influence the company’s environment such as Apple technology
the OLED displays in headset design wiped out the Nokia’s product from the market (Jonathan,
2017). The leading players of smartphone business such as Samsung and Apple give tough
competition to the Nokia and diminish the company from the market. Nokia also faces the
competition from the china local producers that influences Nokia’s environment because they
produce duplicate copy and sell them on the low costs.
Bargaining power of buyers
The buying power of customers is increasing in recent years because of the growing number of
alternatives in the telecommunication industry. The competitors of Nokia are all proposing the
same offers at the lowest prices. Nokia did not operate through the direct store as the work
through the intermediaries, which makes it hard for Nokia to have direct effect on the marketing

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of their handsets. Hence, in that case the buyers will have high power as they have alternate to
purchase handsets of competitors rather than Nokia.
Threat of new entrants
New entrants in the market influence the market and sales of Nokia for instance, Xiaomi giving
tough competition to the Nokia in the competitive environment. Others companies providing the
mobile phone at the reasonable rates with creative advertising and gaining the market share.
Currently, Nokia owns 29 percent of the whole mobile phone market so new competitors need
the long-term plan and aggressive investments to be in the race of competition. The threats of
new entrants are comparatively low for Nokia as it is a well-rooted multinational organization.
Bargaining power of Suppliers
At the time of the change in the telecommunication industry, Nokia did not adopt the change, as
the relation with the suppliers was not strong. Microsoft adopted the segment of the Nokia,
which increases the bargaining power of the suppliers. The company’s current position explains
the bargain rate because it has large number of suppliers Microsoft becomes able to negotiate
with the suppliers.
Rivalry
Nokia did not adopt the innovative change in the telecommunication industry and its competitors
have adopted the smart phones and androids. The main competitors are Apple, HTC and Xiomi.
Industrial rivalry of Nokia is very high and it should be aware of the competition in the market.
Lumia series did not achieve the success in the market, as there is an immediate need to invest
more in the research and development. Apple and Sony are main threats for the company.
The internal management of the company is not effective to adopt the innovative change that led
the company towards the insolvency. The microelements that influence the company’s
environment are customer, suppliers, raw materials, shareholders, media and competitors. The
company should import regular materials from the suppliers on the low cost. Nokia loses its
credibility by not contacting suppliers on time and that creates the unavailability. The raw
material is essential for the production for increased supply of the products but there was a lack

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of raw material in the company (Mccray, 2011). Media is the best support for the company to
advertise the company products and Nokia advertisements were not as creative, which will
comply with the changing environment of the smartphone market (Lamoreaux,, 2011)
The competitors majorly influence the business environment of the company such as iPhone has
high-profile android units and gain a big market share in the European market. Competitors with
the high-end feature, touchscreens and mobile applications giving tough competition to the
company that forced the Nokia for the organizational change (Mertens , 2016). The economic
elements influence the Nokia environment as due to the Europe economic turmoil diminishes the
buying power of Nokia in the home markets. Nokia lacks various economic resources compared
to competitors such as Apple and Samsung. The research and development capabilities of
company are very weak that give opportunities to other companies to develop new devices and
tap new markets. The influence of the competitive environment on the Company as it failed to
launch the products with innovative technology such as E-series and handsets were epic failure
for the company. The other products of Nokia also faced problem of the low voice quality and
damage in the batteries. Nokia still has opportunities in the changing market as they can provide
tremendous camera quality. The company should not stuck on its own operating system and must
adopt the android and IOS. The company should adopt an organizational change that improves
the operations with the innovative technology to maintain a successful position in the market
(Senior & Swailes, 2016).
Part: B
Woolworth’s supermarket is an Australian supermarket grocery store owned by Woolworth
groups. Woolworth is majorly involved in selling groceries such as vegetables, packaged foods,
and meat. It currently operates 1000 stores in Australia including online stores known as “Home
Shop” with the efficient delivery service. Change management is a methodology, which leads the
changes in the organization (Woolworths, 2001).Woolworth recent indulge in the organization
change in its subsidiary company because it difficult for them to survive in the market and failed
to adopt the changed taste and preferences of customers. Due to the continuous losses, it has
currently announced a cut down in 400 executive jobs in which it invests the entire savings in
order to revive the sales. The company majorly invests its focus on the cost-cutting rather than

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on the revival of sick units. Due to the organizational change, company loses its senior support
and majority of employees. Woolworths mainly adopted the organization change to make
potential customer relationship, marketing, and loyalty in the management (Senior & Swailes,
2016).
Market pressure is the main causes to bring change within the organization. The pressure from
the external environment such as competitors like Spenser, Mark and Coles. The retail segment
of Australia provides vast job opportunities for large number of people. Woolworths is making
variations in the share price and decreased price causes a huge loss (Wilding , 2011).The
company used the cost-cutting method to get back the trust of the customers in the regular
operations. The changes in the Australian retail business is giving challenges to the companies to
hold their business stable which forced the Woolworths to change the pricing policies to make
the product competitive in the market. Woolworth brings change as it unable to manage the
operations in the different segments and failing to fulfill the customer needs. The rival attack
pressurizes the company to bring the change as they providing quality goods with the cheaper
rates (Viuro, 2016). The company implements organizational change due to pressure from senior
executives because they were losing faith in the company that affected the employee’s
performance. The company announced the loss of $1.235 billion in financial year 2016 that
pressurized the company to bring the variations in the management ( Sebastian , 2011). The
company was facing the problems in sustainability in the business and was not utilizing the
opportunities in the emerging market that forces company to restructure the operations and helps
to focus on its mission statement. Company restructures the policies because of the pressure from
the advanced supply chain, dynamic customer lifestyle and changing culture. The company
cannot stick on the traditional method and needs to adopt the changes in the management to
maintain sustainability in the organization. The company makes alterations in the pricing policies
because government restricted the company for higher prices (Todnem, 2014).
The “Insider view” in the organizational of Woolworths changes according to the chief executive
Grant O’Brien. Company’s internal management observes that business is unable to find the
reason for declining sales. The chief executive of Woolworths states that the company is unable
to find the solution of declining sales and losing customer base. Company is fronting a risk to its
market chief position in a sub-sector it has dropped in sales. Company is facing technical issues

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in the supermarkets that business needs to confront (Senior & Swailes, 2016). Internal
management confesses that it lacks the leadership and converts reactionary in which there is no
clear strategy to apply in the rising competition. The company has adopted changes to make the
management effective and adopted strategies for better implementation of policies. According to
the managing director of Woolworths, due to the economic pressures company is facing
difficulty in deciding the retail prices. Company is facing struggle in sales because of declining
sales in every quarter as its sales decreased by 0.2 percent to 0.7 percent in a financial year
(Todnem, 2014). The internal management regarding the organizational change suggests the
“cheap-cheap campaign improves the number of sales. The management suggests that company
needs visionary leader to achieve the goals and objectives. Paul Nelson the Chief Executive
Director of company confesses that organizational change is required for the company to reduce
its continuously declining sales (Lamoreaux,, 2011).

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Fail to
sustain a
competitive
advantage.
Continue declining
in the profits
Declining in the retail
sector of Australia
Figure: Multiple cause diagrams of Woolworths
The current situation at the Woolworths defines the complexity of the organization that explains
through the multiple-cause diagram. The Multiple-cause diagrams in the organization, which
helps to seizure complex situations in the environment. It provides precise knowledge that how
Market pressure from the
competitors
Unable to manage its
Operations
The decrease in the retail
prices of company

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changes or variations have effects on the other part of the organization (Jonathan, 2017). The
main two reasons to use multiple because diagram is it can be used as analytical tool and defines
the root causes.
Analytical Tool this diagram helps to use for better understanding and managing change in the
organization. It gives information on how competitive environment pressurizes the Woolworths
for the organizational change. It explains the Market pressure is the main causes to bring change
within the organization and Australian retail business is giving challenges to the companies to
hold their business stable, which forced the Woolworths to change the pricing policies to make
the product competitive in the market. The multiple cause diagrams help the company to know
the effects of the change (Woolworths, 2001). Root-cause states that this diagram shows the
causes and its effects on other parts of the organization and helps the organization to take the
step. Its uses to give reason to organizational change and effective method for implementing
change. It is concluded that Woolworths through the organizational change sustain its position in
the market and earns $1.7 billion profit with special-dividend to the shareholders. Changes in the
company show positive results and help to compete with the competitors. Woolworths brings its
change with interaction of every aspect in the organization and makes the change successful but
in changing world, company should adopt the comprehensive and management of change
process that helps to survive in the competitive environment.

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Bibliography
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Deering, A., 2018. Internet tools enable organizational transformation from the inside out: the
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Senior, B. & Swailes, S., 2016. Organizational change. 5 ed. New York: Pearson .
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