Strategic Management Practices of Nokia Company

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Strategic
Management
&
Leadership
Table of Contents

Task 1.................................................................................................................................................4
Strategic Report..........................................................................................................................4
PESTLE ANALYSIS............................................................................................................................6
PESTLE Analysis of Nokia Company.................................................................................8
TASK 2...............................................................................................................................................14
Current organization structure of Nokia...........................................................................14
Critical Evaluation of Restructure Plan..............................................................................19
Task 3...............................................................................................................................................20
Executive Summary.............................................................................................................................20
REFERENCES...................................................................................................................................22
INTRODUCTION

Strategic management is about forming strategies to achieve the
overall objectives behind the business operations undertaken by the
company. This report is based on the case study of Nokia Company in
respect to its strategic planning and practices as the company has a global base
of business organisation. The organisation is more preferable for this project as it was taking
the lead in 1990 then started to have a bad image after the launch of smartphones (Apple and
Samsung). This report gave me the opportunity to research and to understand how Nokia
company had vanished since I was a Nokia mobile phone user and kept loyal for it despite the
presence of other companies over 10 years, then I changed to Apple phones due to their high
focus on innovation and fast improvement in technology.Nokia is a
telecommunication company engaged in selling mobile phones and other
telecommunication devices. The company is currently associated with
telecommunication equipment, networking equipment, mobile phones and
consumer electronics. It initiated its business operations in the year 1865.
Fredrick Idestam, Leo Mechelin and Eduard Polon are the founders behind
the Nokia Company. Its headquarter is currently located at Espoo, Finland.
Nokia company serves a global area of business operations. This report
would analyze the strategic management practices undertaken byNokia
Company. Henceforth, it would emphasize on relationship between
different stakeholders associated with company and organisation.
Relationship between strategy, stakeholder expectations and
organizational performance would be analyzed in details in this report.
This report would further analyze the impact of all different external
business environment factors put over the organisation. On the basis of
the environment analysis relevant tools will be analyzed and new
strategies would be formed with the support of such analysis.
Furthermore, it would analyze how the strategies support innovation in
context to the organisation. Implementation plan will be developed for
applying such strategies over organisation. Then, the report would discuss
how the plan would meet up the expectations of the stakeholders
associated with the company. Next, it analyses the organisation structure.
Lastly, critically analyses the restructuring plan that the company is

proposing to enhance the growth potential and to achieve the
expectations of all stakeholders’ parts.
Task 1.
Strategic Report
Strategic management practice is about exploring, monitoring and
assessing the strategies company has framed to achieve its overall
objectives behind the business operations (Kiba-Janiak, 2017). This report
would analyze the strategic management along with its different aspects
and practices undertaken by the company. Strategies would be analyzed,
however on the basis of the critical evaluation new strategies would also
be formed.
Relationship between strategy, stakeholder expectations and
organizational performance
Strategies formed by organisation, stakeholder expectations and
organizational performance with all aspects of the company are
interconnected with each others. In order to take competitive advantages,
Nokia Company needs to match up the expectations of all different
stakeholders associated with the organisation. Stakeholders are the
individuals who are connected with the company in any context. Nokia
Company is associated with various stakeholders summarized in the
following way like consumers, employees, investors, suppliers,
competitors, communities and government (Elbanna, 2016). All these
Figure 1 Some early Nokia phones in the 1990s (photo
courtesy: Nokia Corporation)

stakeholders play a crucial role for the company in achieving the
competitive advantages in the market. The management of Nokia
Company forms strategies on the basis of the expectations attached by
company’s stakeholders with the company and on the basis of the
strategies framed by company organizational performance in market. All
these factors related to operation management are interconnected with
each other. All the stakeholders’ parts of Nokia Company carry an
individual presence in the business as presented in figure 2 and explained
below.
Consumers are among the most primary stakeholder’s group of company.
All strategies framed by company carry a deep influence of its customer
group. They carry the huge interest and huge power in the business.
Employees of company carry huge power and huge interest in the
strategies and business operations conducted by company. Investors have
invested huge money in company which makes them also highly
interested in all aspects of the business. Suppliers carry huge interest and
huge power in the business driven by company. Competitors of company
also consist a huge interest but they carry the low power in the business
(Buehring and Liedtka, 2018). Communities also carry huge interest but
they hence less power in the business. Government is a stakeholder that
has low interest as well as low power in the business. On the basis of
involvement in the business, all the above descriptionproject that all
Figure2 Self-
Made

stakeholder groups associated with Nokia company carry different power
and different interest in the business.
VRIO Analysis
VRIO Analysis is another crucial framework that is used by Nokia
Company for framing proper strategies for the growth and development of
the business. This framework comprises with factors like values, rare,
inimitable and non-substitutable. All the four elements involve in the
framework project different dimensions of the business organisation.
Values: Values are the beliefs of the company on which the entire
business depends on. They are the core values behind the business
operations undertaken by a company to achieve its overall objectives.
Nokia company carries the values to achieve the best possible growth rate
along with achieving the best level of customer experiences from the
products and services of company (Nowacki and et.al., 2018). Nokia
Company wishes to have the best possible brand loyalty of all the Nokia
phone users across the globe. Values followed by company allow the
organisation to follow the ethical practices for doing all business
operations. Nokia has set high values for itself for doing business
functions. With the support of proper structure, the company aims to
deliver the best level of customer experience. Profitability is not the
primarily value followed by company. It rather follows the values to
achieving the best level of customer loyalty of all the customers of
company across the globe.
Rare: Rare is another crucial framework part of the VRIP Framework. This
aspect denotes why the brand is unique and different from other
competitors available in the target market. Rare allows company to make
its own brand image in front of the target customers. Nokia Company
gives the value to its customers (Rigtering and et.al., 2017). All products
are designed basing on feedbacks taken from the customers of company.
This is a rare aspect about the Nokia Company. Nokia Company gives