Leading and Managing Change: A Case Study of Nokia's Transformation

This report provides a comprehensive analysis of Nokia's change management strategies, focusing on the application of the 'White Water Metaphor' to describe the company's turbulent market environment. It explores the reasons behind Nokia's shift from a position of market dominance to facing significant challenges, highlighting the impact of technological advancements, competition from companies like Apple and Samsung, and the company's slow response to changing consumer preferences. The report examines the implications of these changes, particularly within the Human Resource department, and discusses the importance of adapting to external factors. The report also includes an overview of Lewin's Change Management Model, suggesting how Nokia could have adopted this model to navigate the unplanned changes more effectively. It highlights the importance of understanding market dynamics, the need for innovation, and the significance of change management models in achieving organizational success, ultimately emphasizing the critical role of adaptability and strategic planning in the telecommunications industry.

LEADING AND
MANAGING CHANGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Explanation of 'White Water Metaphor' for NOKIA..............................................................1
2. Reason for the shift of Nokia from Calm water to White Water............................................4
3. Main implications of the change in Human Resource Department of company....................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Changes in business is indispensable part of a company as there are many forces, which
leads and influences the functions and operations of an organisation. It is very important to keep
pace with changes as it leads to serve an easy functioning as well as impactful strategies for
boosting up their business to lead in market and sustain in a leading position as compared to
other competitors.
In this report, the concept of leading and managing changes will be discussing where
business profile of Nokia is going to be explain and along with this, preparation of firm for all
those uncertain changes which can be obstacles to the organisation's growth (Cameron and
Green, 2015). Apart from these, weaknesses of this firm will be depicted to drive towards
changes.
TASK 1
1. Explanation of 'White Water Metaphor' for NOKIA
NOKIA is known as the multinational telecommunication, consumer electronic and
information Technology Company, which was started in 1865. Nokia is considered to be a major
competitor in the mobile telephone industry that had led to the development of GSM, 3G and
LTE standards and presently, it is known as the best and largest vendor of Cellular Phones
worldwide.
With the emergence of change in the telecommunication sector, other major competitors
such as SAMSUNG, APPLE worked towards bringing some new innovations and a shift from
3G to LTE in markets and developing smart phones which can access many other smart features
apart from just dialling numbers and capturing photos.
Change Management is regarded as all those methods or approaches which are used for
preparing as well as supporting all those individuals, teams and companies for in bringing
organisational changes. Changes can be in many perspectives such as evolution of technology,
reviewing of process according to dynamic alteration in market. As Nokia also faced many
changes and made strategies in order to survive in a successful manner.
As the lack of stability and predictability in surrounding demands strategies that are made
for adapting to that changes. White Water Method includes the strategies or changes which has
to be made in accordance to the unstable atmosphere of markets. Nokia was competing in white
1

water scenario which was completely unstable. Change is regarded ot be ocntibousbecause the3
demands of customer in particular market is indefinite and changes with respect ot many factors
therefore every organisation has to work upon this to satisfy them.
With the change in the global trends, the company focuses on providing video calls and
internet services, which were liked by the mobile users. Around 2005, Nokia had about 32
percent of market share in the industry, which was tended to be reduced due to incapability of
accepting changes and remained obsolete which lead to reduce their customer switching over
other competitors in order to achieve more new services (Nokia market share growth flat in
2005: IDC, 2006). Change is regarded to be continuous in the market of electronic devices as
due to globalisation, demands of customer for advanced technology maximises every day which
forces the company to introduces advanced technology in order to compete with competitors in
market.
Apart from these, there were several other reasons which lead to downfall of NOKIA as a
leading company in market due to following reasons, one of the leading competitors Apple lead
to redefine the term of smartphones with a feature of touchscreen and also Blackberry introduced
email services. With the adoption of android, competitors proved that for customer’s software
matters more than the hardware. Nokia was very slow to respond these demands and decided to
not to accept these changes. In addition, other competitors such as SAMSUNG came with budget
friendly phones that have similar features and a long battery backup, which were preferred more
by customers. Their lack of innovation and rigid nature for not accepting changes made them to
see the downfall of their career in market in which at last they sold themselves to Microsoft.
Earlier Nokia was selling under a calm sea but after a while with new change adaptable
strategies they decided to return in market. Some of the growth drivers which this organisation
focused for planning such an effective tactic were concentrating in dynamic forecasting of
customer's demands; smooth functioning of the applications in a handset; the rise in disposable
income for all middle class buyers; depiction of status through mobile phones and tablets in
society and the increase in competition by new entrants are regarded as the growth opportunity
for Nokia in order to succeed in the market.
The changes which are occurred due to revolution in technologies and the shift of
preferences regarding features of a cellular phone among customers were completely unplanned.
2

As there are various external factors that affects particular market (Carnall, 2018). As innovation
is regarded as the base for telecommunication industry, it was very necessary for Nokia to adopt
certain approaches that must have made their adaptability for external responses to be very
strong. However, their rigid structure led to their downfall and made other competitors much
stronger.
Every organisation is needed to adopt some change management model in order to
effectively handle the effects of changes and successfully implement them in the organisational
structure for formulating effective strategies to earn a great profitability and to sustain a good
market position in the economy. One of the effective change model which NOKIA must have
adopted for the unplanned change should be based on the theory of Lewin's Change Management
Model, which has three stages and are described as below:
It basically consists of three major steps that are Unfreeze, Change, Refreeze.
Unfreeze- In this stage, company needs to understand about changes, which are needed
to be adopted so that several methods could be adopted such as conducting survey for
understanding the current state and reason that why changes must be brought in an organisation
(Kuipers and et. al., 2014). It is made to be ensured that strong support is needed from the
management who is most senior which includes Stakeholders analysis and management in order
to acknowledge and identify support of those important people in a firm.
Apart from these, framing of issues should be done to resolve it to move a step ahead.
Creating the need for the change is very important, which comprises of compelling several
messages regarding why the change in needed to occur. Vision and strategies are required for
supporting evidences. At last, managing and understanding all doubts and concerns are taken
into actions. Nokia lacked in understanding the necessity for framing new strategies which was
regarded to be its one of the disadvantage.
Change- This step includes the process of communication in which the planning as well
as implementation of changes happens. All the related benefits are de scripted and associated
effect on every employee. This steps aim for preparing all workers regarding commencement of
particular change. Apart from this, rumours are dispelled in which management should answer in
an open as well as honest manner. Problems must be dealt immediately and necessity of changes
must be provided to every operation. Focus on empowering actions should be given, which leads
to serve many opportunities for involving employees. Managers are provided directions daily. It
3

leads to involve many individuals in the process, which comprises of generation of reinforcing
certain changes and negotiation with stakeholders who are externally present. They did not
comply with changes which were occurring in market and were completely stagnated in their
strategies.
Refreeze- It includes anchoring of changes in culture with identification of aspects that
can support change and barriers in effective sustenance. Several ways are developed for
sustaining change and ensuring support for leadership. Creating a particular reward system as
well as establishing systems for feedbacks. Organisational structure should be developing in such
a way that it can adapt the change easily (Cummings, Bridgman and Brown, 2016). It focuses on
providing several training and support, which can lead to keep every worker informed and
supported for particular changes. There were no strategies introduced in organisation as a result
they failed in market.
With the adoption of certain changes in their concept they emerged with introducing
latest software which was user friendly and gets shifted from Symbian window to Android which
is much preferred software. As NOKIA earlier followed semi premium pricing strategy; after
the comeback for entering into market they followed penetrative pricing strategy, which includes
affordable prices for customers to get a competitive advantage over others.
All the strategies were revived and part from that new innovative smartphones were
developed that serves several features which would be definitely liked by potential customers in
market. They concentrated stronger availability as smartphones are not only sold online but on
several outlet stores also.
With this, Nokia formulated strategies for every unplanned change that lead them to a
great transformation of their functions and operations with respect to preferences of buyers and
the commencement of latest technology, which must be adopted to get success in market.
Therefore, the White Water Metaphor for this company is very apt that certain changes lead to
affect the functioning and working structure of an organisation to be very.
2. Reason for the shift of Nokia from Calm water to White Water
There are many external factors, which plays an influential role in strategic formulation
and proper functioning of company. Some of these factors are discussed as below:
Political- It is known to be a factor that is directly relate to political stability of an area.
As the company is globally situated therefore before entering any new market it is very
4

important to acknowledge its political stability as it facilitates in growth and expansion decisions
of this firm. An unstable political scenario can lead to provide major adverse impact that can
affect the company in negative manner. For example, political scenario of Asian countries in
which they were operating were stable that supported their functions and expansion.
Economical- This includes every factors which are related to economy which can lead to
influence the financial aspect of any particular strategy which is needed to be balanced in order
to make it stable and supportive for formulating any strategy and financially viable for any major
crisis in particular market (Doppelt, 2017). Every aspects of an economy leads to affect the sales
of product in market. As recession can affect customers as well as other expensive trade taxes
can lead to make export or import activities to be very costly which can indirectly or directly
addicts the price making it much costlier in that area. For example, table economy of Asian
market supported their sales of product.
Social- Every customer or a market of different areas have several differential lifestyles,
characteristics, attitude as well as behaviour for certain products. Some markets may show fond
towards the product on the other side other areas might show least sell because of not preferring
that feature. Therefore, every area requires a different strategy which is needed to be followed
for a good revenue. For examples customers of Asian market were very fond of Nokia therefore
their sales were very nigh in these markets.
Technological- This is the major factor that influences telecommunication industry as it
leads to provide the modification of smartphones with latest technologies which might provide
them an advantage over other competitors (Van der Voet, 2014). Therefore, Nokia must be
aware and ready to cope up with latest technologies. For example, they did not come up with
these technological changes and their products became obsolete in market.
Legal- There are various legal procedures which every firm has to complete in order to
make their operations smoothly working and providing a good output without any delay. There is
a need to keep every license and follow all policies and regulations which are decide by the
government of areas and make their working accordingly. For example, legal structures of Asian
market were not so strict that flourished their business in an effective manner.
Environmental- There are several environmental factors which affects the strategies and
the functioning of plant which are associated with their manufacturing unit. The location of
manufacturing units and outlets store must be in reach to employees and customers respectively.
5

They must be provided a sufficient reach and an effective transportation facility. Apart from
these, the weather conditions also play an eminent role as some suitable weather facilities all
processes of supply chain management which can include transportation, storage as well as
inventory management. For example, Asian countries were very suitable for establishing plants
of their company that leads to reduce associated production cost.
Apart from these there were other forces which affected their position and sustenance in a
market as the bargaining power of customers were very strong in market as the cost of switching
to those firms which provides an affordable price for same. The suppliers had an important role
in order to determine the effect as it lead to provide them a great opportunity to negotiate with
NOKIA is order to supply them important parts which were needed to make smartphones
(Goetsch and Davis, 2014). Apart from these, the new entrants which entered in a market which
cheap prices and new operating software made them a great threat which affected Nokia's
position in market apart from these the presence of strong competitors such as SAMSUNG,
Apple and other china mobile phones lead them to provide a strict competition in market.
There were many strength factors of Nokia which made them the leading company in
past years which were
 a stronger stability due to experience as at that time other competitors were not so stable
apart from this they had a largest network for selling as well as distribution.
 Their customer relationship management was very strong.
 They have a strong branding which was made to be their one of the biggest strength.
 The product portfolio was very wide and apart from that they had a highest resale value
in comparison to others.
 Product was very durable and had a long battery life.
But these strengths were rigid as the structure of working was not adaptable to the
changes which were happening in market and they were effectively implemented as well as
adopted by competitors that gave them an advantage over others. There was some weakness
which lead the organisation to not to accept the changes and resulted them to a huge downfall in
market. Some of the weakness are discussed below:
 The complacent nature of Nokia made them unwilling for changing which were needed
to accept but lead them to ignore the need of getting transformed (Samuel, Found and
Williams, 2015). This aspect made them more vulnerable to downfall.
6

 The products were not afforded by every individual in the market this lead them to
compromise those segment and that was targeted by someone else which provided them
an advantage.
 Apart from these they took a much longer time fir entering in to the Smartphones market
which is highly productive as well as booming.
 The operating software was much complexed as compared to others for switching
towards android and making them reluctant to that particular change.
 The market assessment which they done was very inadequate as they directed towards
windows operating software not the android one.
 They ignored the new growth aspect in the market and does not focused on developing a
well-designed handset and styling sets.
As there were many threat which was possessed by market such as the entrance of china
mobile in markets which were very cheap and were giving all those features that were given by
Nokia and they targeted middle and lower class customers which had a high share in market as
compared to those who preferred to buy costly mobile phones. There was a global economic turn
downturn which also lead to decline the sales aspect of the company in a market. The
competition in market was very strong and other smartphones made it more hard for Nokia in
order to maintain as well as expand themselves and their shares in market.
3. Main implications of the change in Human Resource Department of company
Change is something which leads to define the re-transform the obsolete processing of
any task in an organisation. Therefore, change management can be regarded as a collective term
which includes all approaches that leads to support and prepare individuals, organisation and
team. Some of the most common changes of drivers can includes the evolution of technological
aspects, reviewing the processes and changes in the habit of consumers apart from these the
pressure created by new entrants, mergers or acquisitions (Elements of an Effective Change
Management Process, 2018). It involves all those methods for redirecting and redefining all
resources, process in a business, allocations of budgets and operational modes.
Nokia changed in several ways as it leads to adopt latest technology by introducing user-
friendly software Android in their smartphones and entered in market after certain lapse of time.
It also provided many other features which were completely advanced in the market of
smartphones. Apart from this, the strategy which they used for their prod cut while penetrating in
7

market was using penetrative marketing strategy and recognising earlier trust and value which
users of the market used to have for Nokia by informing their changes in associated product.
Human Resource department deals with the productivity of employees in an organisation.
It leads to deal with every aspect which are related to workers of an organisation. Before
introducing many change to the organisation, HR department evaluates and forms strategies for
introducing that particular change in order to not to disturb any employee and does not
compromise the productivity of a company.
There are certain steps which are needed to be followed by the department in order to
introduce change in the firm by implementing any particular model of change which is necessary
for easy transformation of a firm and is needed to be successfully implemented (Hayes, 2018).
There is a series of steps which they must follow in order to cope every employee with this shit
as it is discussed as below:
1. Identification of what will be improved
As a change is introduced in order to improve a particular process, product or an
outcome. It is very important to critically identify focus and the need to clarify goals. Some
changes might require the while series of task in order to make a reform (Lozano, Ceulemans
and Seatter, 2015). A foundation must be developing which should be strong clear and can be
easily implemented.
2. conducting a meeting to clarify the need for change
As every employee has his own opinion which is needed to be understood but before this
it is the duty of company to make every worker understand regarding the need to change and
what will be the advantages which can be associated with those changes. In order to win their
agreeableness for implementing those changes in future purpose.
3. Plan for Change
After winning the trust of employees and sitting every doubts the plans for the practical
implementation is required to be develop so that one can effectively identify the requirements
and the efforts which would be required for making changes.
4. Providing resources and data for evaluation
The change which is introduced or needed to be made, requires some new resources for
which employees are needed to be prepared. Hence, associated training and development
programmes provided to the employees to adapt that change easily because for developing new
8

skills or to use a new structure of system it is required by every employee to enhance his or her
skills in order to handle it affectively.
5. Monitoring and Evaluation-
After the implementation of the change plan in practical scenario is required to be
monitored regularly in order to provide a good check on the problem and related flaws which are
needed to be improved in order to make the implementation of change much better and effective
and it does not lead to effect the functions and operations (Kuipers and et. al., 2014). Evaluation
of employees must be done regularly in order in order to form strategies which are required for
implementing to a better change.
CONCLUSION
In the following report it has been concluded that change is an inseparable part of the
market with which every organisation has to cope up in order to sustain and provide a good
profit in market. Nokia was one the company who was once a market leader of
telecommunication sector which later faced downfall due to the incapability of adapting changes
which are required in order to survive in a market as there is a need to change according to the
revolution in the external world, if not coped up effectively it can lead to adverse impact on the
organisation which is not good for its growth. Apart from these Human Resource department
tries to lead the implementation of changes which are needed to be performed in order
implement successful change in the society.
9

REFERENCES
Books and Journals
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Carnall, C., 2018. Managing change. Routledge.
Cummings, S., Bridgman, T. and Brown, K. G., 2016. Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. human relations. 69(1). pp.33-
60.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hayes, J., 2018. The theory and practice of change management.
Kuipers, B.S. and et. al., 2014. The management of change in public organizations: A literature
review. Public administration. 92(1). pp.1-20.
Lozano, R., Ceulemans, K. and Seatter, C. S., 2015. Teaching organisational change
management for sustainability: designing and delivering a course at the University of
Leeds to better prepare future sustainability change agents. Journal of Cleaner Production.
106. pp.205-215.
Samuel, D., Found, P. and Williams, S. J., 2015. How did the publication of the book The
Machine That Changed The World change management thinking? Exploring 25 years of
lean literature. International Journal of Operations & Production Management. 35(10).
pp.1386-1407.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure.
European Management Journal. 32(3). pp.373-382.
Online
10