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
Student Name

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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