MGM 7102 Strategic Management

Running Head: STRATEGIC MANAGEMENT OF NOKIA
Strategic Management of Nokia
Name of the Student
Name of the University
Author Note

Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
About the Company.................................................................................................................3
Nokia Business Strategy..........................................................................................................3
Current strategic / operational issues in Nokia........................................................................5
Conceptual factors related to the issue (mission, vision values).............................................7
Financial Aspect of Nokia Company.......................................................................................9
Competitors Analysis.............................................................................................................10
The external /environmental factors related to the issue.......................................................10
Internal factors (structure, processes, and people) relevant to these issues...........................11
Recommended alternative strategies.....................................................................................12
First priority Actions..............................................................................................................13
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................15

Introduction
There are times when organizations need strategic change in the highly competitive
market. In order to go smoothly with the constantly changing industry, customer needs,
preferences and market values, organizations observe the theories of strategic organizational
change and try to implement in the operational levels of the organizations. Among the various
legendary theorists of strategic change, Peter Drucker is one. His contribution in the
organizational change theories are highly significant. According to his views strategic changes
are required due to four discontinuities - cultural pluralism, globalization, new technologies and
knowledge capital. Alvin Toffler is another famous management thinker who stood with the idea
of different paradigms intersection, multiplying the rates of change and their subsequent impact
on the businesses. The term ‘future shock’ he coined and used to focus how technology change
can lead to resource constraints and globalism.
One important aspect has been noted by Malcolm Gladwell who also initiated a new term
‘Tripping Point’. He defined that the business process and the society nowadays are determined
by the phenomenon of trends which captures a huge portion of the people. In this respect
another concept has been postulated by Gary Hamel who explains how with the passing of time,
the value of strategies also declines. He further argues that every organization must renew their
business strategies at regular intervals in order to increase sales and achieve customer
satisfaction. The present report will take the Nokia company to highlight the strategic and
operational challenges they have been facing through the past years and how they have made
suitable decisions and changes in order to cope up with the challenges. It has been found that the
company has been suffering from high recession that has caused it decrease in the demand level

of the customers. The firm is going through tough challenges in the international level and there
is a need to pass the company through a new and strong strategic change. The management has
applied suitable modifications in so that it an easily comply with the market. The report will also
focus on the innovative changes of the organization and provide recommendations for better
results. The report will conclude by giving an overview of the entire paper illuminating the
important points.
Discussion
About the Company
The full name of the organization is Nokia Corporation which is multinational
telecommunication with Finnish background. The company also deals with the consumer
electronics and information technology services. In the year 1865, the company had begun
holding the hands of Frederick Idestam and Leo Mechelin. The main headquarters of the
company are located in Espoo, greater Helsinki metropolitan area. According to a latest survey
in the year 2017, the company has employed almost 102,000 people from more than 100
countries all over the world (Wollaston, 2018). The company has dealt and has done business
with 130 countries. The current annual revenue of the company is 23 billion Euros. It has been
found that Nokia is world’s 415th largest company measured on the level of revenues which had
peaked to 85th in the year 2009. Since the 1990s, the company is focused on the
telecommunications infrastructure which are large scale (Doz, and Wilson, 2018). The Nokia
company is a significant contributor to the development of the GSM, 3G, LTE and recently in
the 5G standards. In the year 2014, the company bought by the Microsoft company (Doz, 2018).