Business Studies: Nokia and Microsoft Acquisition Report

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INTRODUCTION
TO BUSINESS
STUDIES
Acquisition of Nokia and Microsoft

Table of content
■ Introduction
– Understanding of collaborative working practices
– Advantages of collaborative working
– Internal and external factors of business
– Internal factor
– External factor
■ Conclusion
■ References

Introduction
■ Business studies indicates towards the
different approaches which can help to
make the determination about the
development of the organization.
■ The Acquisition refers to the takeover
of an organization by with some other
organization.
■ The acquisition impacts the
organizations in different manner.
■ There will be a discussion about the
merger acquisition of Microsoft over
Nokia.

Understanding of collaborative working
practices
■ Collaborative working refers the
merger or partnership of two or
more organization.
■ The companies Microsoft and Nokia
had decided to merge and complete
their tasks on collaborative manner.
■ The main purpose of making the
collaborative business is to share the
ideas and advantages which will help
to grow and develop the business.

Advantages of collaborative
working
■ The collaborative approach benefits the
organization in some significant manner.
Some of the advantages of collaborative
working are:
– Enhanced flexibility of the organization.
– More engagement of employees
towards work
– Moves the company towards achieving
the goal.
– More innovative and strengthen ideas.
– Better configuration with stakeholders.

Internal and external factors of
business
■ The management of business contains some different factors which
affects the business. These are basically internal and external.
Internal factor External factor
The internal factors of business are
the SWOT.
The analysis of external factors of
business done by the approach of
PESTLE.
SWOT stands for Strength,
weakness, opportunity and threat.
PESTLE stands for political,
economic, social, technical, legal
and environmental factor.

Internal factor
■ Strength
– The experience of company will
benefits the collaboration.
– The brand name of Nokia has been its
strength
– Customer loyalty and satisfaction
level
– Good and reliable technology

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■ Weakness
– Slow technical development
– Lack in adaptation of changing market
needs
– Poor product placement in market
– Failure to retain customers
– Lack of innovation to adapt the
changes.

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■ Opportunity
– Adapting different features and
services adapted by other
technologies
– Retaining old and loyal consumer
base
– Developing handset for all income
groups
– Building the trust and attraction in
the customers of different
generation.

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■ Threat
– Compete ting platforms like android and
IOS has been capturing market
– Slow sale of the product
– Emerging brands in market
– Diversion of customer interest towards
different brands.

External factors
■ Political factors
– Diverse cellular regulations in
different countries
– The import and export laws has
been affecting market penetration
– Not much support was given for
market expansion in many
countries
– Most of the operational power was
under Microsoft thus limiting the
functionality

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■ Economical factors
– The business operation could not
reach maximum profit
– The interest rates, exchange rates,
demand, taxes and buying power
of the targeted population was not
effective
– The turmoil and downfall was
expected in many countries
– The revenue development was
slow