Analysis of Nokia's Organizational Change and Strategies

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This report provides a comprehensive analysis of organizational change within Nokia Corporation, examining the company's adaptation to dynamic market conditions and technological advancements. It explores the redesign and innovation strategies implemented by Nokia, particularly in response to the rise of smartphones and competition from brands like Samsung and Apple. The report discusses the forces driving and resisting change, including employee resistance, market dynamics, and cultural differences. It also applies Lewin's Three-Step Model and Kotter's Eight-Step Plan to provide strategic insights for managing change effectively. Furthermore, the report highlights the importance of innovation, customer preferences, and leadership in navigating organizational transformations, drawing on the company's history and the challenges it faced. The bibliography includes several online resources and publications that support the analysis of Nokia's strategic shifts and organizational changes.
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RUNNING HEAD: ORGANIZATION CHANGE 0
Organization Change
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ORGANIZATION CHANGE 1
Table of Contents
Introduction................................................................................................................................1
Redesign and Innovation............................................................................................................2
Dynamic Changes......................................................................................................................4
Lewin’s Three-Step Model........................................................................................................6
Kotter’ Eight-Step Plan..............................................................................................................6
Conclusions................................................................................................................................7
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ORGANIZATION CHANGE 2
Introduction
Nokia Corporation is the biggest and largest manufacturer which serves customers in more
than 130 countries. It is one of the biggest contributors in mobile telephone Company that
assist in development of LTE standards. Through the past centuries, the company expands its
business in several different products. In the 20th century, the company expands its business
with the popularity of mobiles phones and computers. The adaption of Nokia Company and
entire business was sold to Microsoft (Nokia, 2019).
Nokia is the world biggest cell phone producer with its entire covered item portfolio in its
different measures and fragments. Nokia is one of the pioneers in accessing portable data
society to many people. The central goal comes with influencing individuals to combine with
each other paying all the data sources in time. Nokia Company is the world’s greatest media
transmission of gear producers (Nokia, 2018).
It is the Finland-based organization of cell phones which was consolidated in 1961 and built
as an effective brand in the nearby market yet its huge business has extended in all zones to
help clients need and needs and the development of media transmission industry. The
innovations and applications are mostly intended in various zones and depends upon the
human needs arrangements in the structure (Nokia, 2019).
Redesign and Innovation
As a CEO of Nokia brand, I will design and make changes according to needs and
preferences of the customers as what they wish is the best option for innovations. The
smartphones are the necessities and modification that covers all the work and quickly make
life. There is a big world of similarity in an external environment with Nokia Products. The
effective range tells about manufacturer offers to various kinds of latest features. In recent
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ORGANIZATION CHANGE 3
times, the leverage of mobile phones again comes with the trend of innovation and got some
traction with all its customers.
The main battle is with new launching of innovative and smart ideas with the brand name of
Samsung, Oppo, IPhones, Vivo and One Plus. They all the best competitors in the market of
Nokia brand. The sustainability factor of Nokia will have to develop more innovative and
with the preferences of the customers. The whole corporation serves all its customers with
technology that rule the market at that time. All the differential products are made following
all its customers with a better look of the perception. The tagline and positioning statement of
Nokia Company is to connect more people through ways of providing the best products with
upgraded technology (Kit, 2018).
There is a world of similar technology which is used by all the companies in the mobile
phone markets with the product categories. The various ranges of products tells about the
complex nature as manufacturer costs offers all the latest features. The company serves all its
customers with the kind of different products to their customers from long time but they
forget that they want innovations in their technology.
The adaption of position statement of Nokia is “Connecting people”. Nokia aims to delivers
and accomplish the need of the consumers as a first preference. They influence their making
of strategies in developing needs of the people that confront each other. The main reasons
behind the failure of Nokia are they itself sold it to the different company Microsoft. This
brought many issues with the firm that is unequipped for dealing its business in Nokia
Company (Nokia , 2018).
There is an adoption of predominant patterns with touch screen and sending of the message
with the significance programming is the first focus of Nokia. Nokia somehow fails as new
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ORGANIZATION CHANGE 4
mobile sectors are developed with the innovative brands like Samsung, Sony and HTC which
underlying the association of market.
Dynamic Changes
There is increased number of various associations’ that faces lots of changing conditions in
the dynamic environment and this requires organization to adjust in their structures. As a
CEO, I will respond to this latest trend as customer perception changes from time to time and
with Upgradation of the latest technology in innovative technological products like gadgets
and smartphones (Masalin, 2003).
In today’s era of technology, the smartphone gives all the people with a series of possible
fields, growing in popularity in exchanging entertainment and easy access to the services.
The history of smartphones tells about the era to adapt and change accordingly with the
perception of customers. The customers want to change with time and get bored with their
phones and change from time to time as updations are the latest trend of mobile phone
industry with various apps and upgraded technology.
The forces for change should be adopted by each organization that includes the nature of the
workforce, technology, economic shocks, competition in the external environment and social
trends. The forces that are needed in resistance to change are employee resistance and market
resistance. This had happened the first time of organization and there is less possibility to
change with the forces. The social distinction made it hard for everybody to adjust in the
Nokia internal structure (Nicholson, 2018).
The new strategy which is developed without the concern of employees also makes the
company resist changes. There is a waste of existing knowledge as there is no discussion
about the concept and the company needs to invest in training for new skills to be developed.
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ORGANIZATION CHANGE 5
The holding company is more responsible for failures as there is no connection between and
this result in the downturn of the company (Lubinaite, 2013)
The employee resistance also depends upon the fear of employee in losing jobs or changes in
the role of jobs in sudden times. The happening of disagreement with the management system
is getting into the advanced partnership with Microsoft. There is a wave of resignation to key
personnel, skilled employees and layoffs by Microsoft Company. The cultural differences
also make the company to resistance the changes as there is an uncertainty of avoidance
(Hacklin, 2018).
The market resistance is depended upon the alliance of Nokia and Microsoft in a short period.
There is customer resistance in embracing the window system in operating the entire
platform. There is fear of losing the business of international calling and choosing MS as a
strategic partner.
I will respond to these changes as there is a need for innovation and need to invest in the
cutting edge technology which is more disruptive and this requires new platforms and more
innovative technology. There is a significantly lucrative market for the growth and that makes
the Nokia brand to resist changes as the competitive world is more running towards
innovations and listened to people with what they want to change the product (Doz, 2018).
Lewin’s Three-Step Model
Lewin's three-phase is a hypothesis of progress and development that is eluded with
Unfreeze, Change and Freeze. The effective model which can be used in the company is Kurt
Lewin model of change and it is based on three steps. This demonstrates planned in the
changed approaches as the first step tells about to unfreezing the status quo. There is a need
for change in the recent strategies which are operating ion Nokia. The main change which is
required was in technology and, Nokia had to sell its idea of a necessary change to all its
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ORGANIZATION CHANGE 6
employees.
Source: (Word Press, 2017).
The second stage is transition or change in the Lewin model. It involves in evaluating the
various types of actual changes as training employees is the implementation, but it is much
late and not easily to apply. The third stage comes with refreezing and this seeks to stabilize
the new behaviours. In Nokia there is ensuring to the changes that are implemented for long
term benefits in the company. Nokia needs to implement with the best innovative ideas and
this can be better if there is the use of Kurt Lewin’s model of change (Word Press, 2017).
Kotter’ Eight-Step Plan
Kotter presented eight stages change model in 1996. Kotter suggested that, for compelling
business, association's administration gathering needs to get tied up with the change and said
fitting exercises on these eight phases ought to be executed genuinely for profitable change.
The plan tells about the creation of the sense of urgency in all its initial stages to identify who
are the competitors and identification of threats can be easier. These models enhance and
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ORGANIZATION CHANGE 7
improve the capability of internal structure and increase the chance of success factor in the
organization. The various step when followed by an organization will lead to success and
helps in growing the business to grow. The first three steps tell about the creation of best and
right climate a link directly to change in the organization (Accipio, 2018).
Source: (Word Press , 2015)
There should be a formulation of Nokia coalition as this will help to convince people that
changes are must with the innovative technologies. The clear vision always takes you to
develop an effective team by understanding the whole team towards the vision. The
communication barriers should be removed and leaders of Nokia need to understand what is
to be needed in the change process. The empowering actions should be taken by a Nokia
company and create short term win and build effective changes thereby. The changes have
become more towards the part of effective organization. This is the eight-step model which
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ORGANIZATION CHANGE 8
should be used by Nokia to develop more towards achieving fair strategically framework in
the organizations (Motoki, 2016).
Conclusions
The report focuses on the management system of Nokia and the consequences of failure in
the whole company. The resistances changes which are needed by an organization are being
clearly stated and finalize the summarisation to adapt in the company. The analyziation of
forces that push to resist the change is being the main focus in the report. The use of effective
models develops the understanding of success factors as these models develop the
understanding of the successful organization. Lewin’s Three-Step Model and Kotter Eight
Step Plan are the important theories which are discussed to find the best solutions for the
smooth running of the company.
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ORGANIZATION CHANGE 9
Bibliography
Accipio, 2018. John Kotter's 8-Step Change Model. [Online] Available at:
https://www.accipio.com/eleadership/mod/wiki/view.php?id=1874 [Accessed 26 July 2019].
Doz, Y., 2018. Lessons from Nokia in Resisting Changes. [Online] Available at:
https://www.scmp.com/business/companies/article/2131615/why-mighty-fail-lessons-nokia
[Accessed 27 July 2019].
Hacklin, F., 2018. Strategies for business model innovation: How firms reel in migrating value.
[Online] Available at: https://www.sciencedirect.com/science/article/pii/S0024630117302881
[Accessed 25 July 2019].
Kit, E., 2018. Nokia’s Biggest Competition: Android In The Developing World. [Online] Available at:
https://www.fastcompany.com/1790951/nokias-biggest-competition-android-developing-world
[Accessed 27 July 2019].
Lubinaite, S., 2013. Strategic Technology Management Of Nokia Corporation. [Online] Available at:
https://pdfs.semanticscholar.org/c11d/27ccb5d18efd5e4d9462447a6547fca3bb5c.pdf [Accessed 25
July 2019].
Masalin, L., 2003. Nokia Leads Change Through Continuous Learning. [Online] Available at:
https://journals.aom.org/doi/abs/10.5465/amle.2003.9324027 [Accessed 24 July 2019].
Motoki, 2016. Mastering change: A visual and alternative guide to Kotter’s model. [Online] Available
at: Mastering change: A visual and alternative guide to Kotter’s model [Accessed 26 July 2019].
Nicholson, 2018. How to Adapt and Transform the Business. 2006th ed. Rajasthan. Available at: How
to Adapt and Transform the Business [accessed 24 July 2019].
Nokia , 2018. What we do. [Online] Available at: https://www.nokia.com/about-us/what-we-do/
[Accessed 25 July 2019].
Nokia, 2018. What We Do ? [Online] Available at: https://www.nokia.com/about-us/what-we-do/
[Accessed 26 July 2019].
Nokia, 2019. About Us. [Online] Available at: https://www.nokia.com/about-us/what-we-do/our-
history/.
Nokia, 2019. Nokia’s next chapter. [Online] Available at: https://www.mckinsey.com/industries/high-
tech/our-insights/nokias-next-chapter [Accessed 26 July 2019].
Word Press , 2015. Kotter 8 Step Process for Leading Change. [Online] Available at:
https://culctcy.wordpress.com/2015/03/31/theme-3-change-management/ [Accessed 25 July 2019].
Word Press, 2017. Leadership and Change. [Online] Available at:
https://culc920314.wordpress.com/2017/03/14/leadership-and-change/ [Accessed 26 July 2019].
Word Press, 2017. Leadership Change. [Online] Available at:
https://culcjett.wordpress.com/2017/03/26/leadership-change/ [Accessed 25 July 2019].
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