BUMGT5980 - Nokia's Planning Effectiveness: Solution Application

This report analyzes the effectiveness of Nokia's planning strategies, focusing on the factors that led to its market decline and exploring potential solutions for recovery. The report identifies the lack of adaptation to changing industry requirements and customer expectations as a key issue. It proposes organizational restructuring, strategic planning, and product innovation as solutions. The evaluation of these solutions emphasizes the importance of managerial effectiveness, technological advancements, and alignment with customer needs. The implementation plan highlights the need for clear communication, defined roles, and continuous monitoring to ensure successful execution of the strategic plan. The report concludes that by improving its management and planning effectiveness, Nokia can regain its market share and compete effectively in the mobile industry. Desklib provides access to this and many other solved assignments to help students excel.

EFFECTIVENESS OF
PLANNING
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[Year]
A case of Nokia mobiles
[Company name] | [Company address]

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Table of Contents
1. Introduction............................................................................................................................2
2. Problem Background..............................................................................................................2
3. Problem definition..................................................................................................................3
4. Solution generation................................................................................................................4
5. Solution evaluation.................................................................................................................5
6. Implementation and action plan.............................................................................................7
7. Conclusion..............................................................................................................................8
8. References............................................................................................................................10

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1. Introduction
The effectiveness of planning of activities within the organisation plays a vital role in
the development of an organisation. As the decisions within the organisation and the
managing the resources effectively is the task of the management and an effective planning
will contribute towards effective utilisation of the resources and ensure that the organisation
retains and improve its performance within the industry. The customer, as well as industry
demands and expectations, are required to be met by the organisation to continue its business
within the industry. The report is focused on analysing the case of Nokia, and the issues that
led towards the failure of the market management within the industry. The report also focuses
on analysing the possible solutions and strategies through which the company can regain its
lost market position effectively and efficiently.
2. Problem Background
The downfall of Nokia within the industry was the result of a lack of planning of
activities according to the changing industry requirements within the organisation. Nokia the
global management within the smartphone industry, failed to adopt the changes which lead to
a decline in 90% in the market value of Nokia within six years. The company failed to
analyse the market change and the requirements which lead to a decline in the sale of its
products and from being the top-selling brands, it becomes a market failure (Garside, 2012).
The mobile phone brand failed due to its management within the organisation. As the
management overestimated their ability to be the market management and refused to adopt
the technological changes within the organisation’s product.
The mobile company faced a market downfall in 2007 when the company recalled the
defective batteries, and it affected the company brand portfolio (O’Brien, 2007). The problem

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within the organisation was the lack of efficiency in the organisation’s management. The
management was focused on increasing profitability for the organisation and ignored the fact
that certain changes within the market are required to be implemented within the
organisation. To maintain the market share and customer loyalty it is required that the
organisation ensures to adapt necessary technological and operational changes within the
organisation process (Cheng, 2014).
Figure 1 Nokia Sales after introduction of iPhone within the industry (Source: (Frommer, 2010) )
3. Problem definition
Planning is an important aspect before conducting any business activity or during making any
change within the organisation’s structure. As the planning activity contributes to effective
analysis of the change in customer needs and requirements and then developing an effective
plan that would be able to guide the employees within the organisation, how to proceed
towards achieving the goals and objectives of the organisation. Lack of managerial efficiency
in planning of operational activities within the organisation results in developing a strategic

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plan that neglects the customer’s requirements and lead to decline in sale for the company’s
product within the market.
4. Solution generation
The problem Nokia faces is the result of the lack of managerial efficiency within the
organisation. To regain the lost market share Nokia is required to focus on developing
effective market strategies through which it will be able to improvise its managerial abilities
and also be able to focus on the product development so that it will be able to compete with
the available products within the market and to be able to regain the market share. Nokia
should focus on organisational restructuring to improve its managerial effectiveness.
(Sitlington, 2012).
To set up a strategic plan it is required that the organisation focus on setting up clear
goals and objectives that the organisation is focused on achieving in long-term (Cassidy,
2016). The strategic policies can be formed within the organisation by effectively utilising the
tools and techniques designed to form policies within the organisation. Nokia can focus upon
using brainwriting as a tool to form policies and strategies as within the organisation, the
employees can offer various suggestions to improve the organisation position within the
industry.
The brainwriting is an effective form for strategy formation, because in the process of
brainwriting, every participant is guided to write their ideology on a sheet of paper, due to
which every one comes up with his own creative thinking, and then evaluating the ideas of
each and every participant helps the management in developing a policy from the ideas
represented by the participants. Such formed policies are developed after evaluating different
plans and policies therefore such policies effectively lead towards achieving business goals
(Wood, Cogin, & Beckmann, 2009).

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The organisation requires to effectively analyse its current position within the industry
and the industry requirements which are required to be implemented within the organisation.
As the smartphone industry is in its development phase, and Nokia is also required to
implement technological changes within its product that would be able to provide the
customers with better service experience and be able to compete within the industry (Cecere,
Corrocher, & Battaglia, 2015). Nokia partnered with Microsoft to provide the customers with
a technologically competitive product but the product was not capable to provide Nokia with
the required market competencies (Surowiecki, 2013).
The organisational capabilities are required to be analysed so that the management
can effectively determine the level of change that is required within the organisation
(Cacciolatti & Lee, 2016). Nokia possesses a strong brand name within the industry, as it was
the market management before the introduction of smartphones within the industry. So, the
organisation requires to focus on the product innovation within the organisation, by
effectively analysing the product quality offered by the competitors within its products.
Nokia is required to focus on developing strategies that would be focused on
improving the organisational capabilities along with ensuring that the goals and objectives are
being met timely and effectively. As the company has experienced downfall within the
industry due to neglecting the change adoption within the organisation and ignoring the fact
that the customers will be influenced through technological developments within the industry
(Ojala, Tikkanen, Lamberg, & Lubinaitė, 2019).
5. Solution evaluation
Organisational Restructuring involves allocating the resources available within the
organisation so that they can be effectively utilised and can lead towards achieving the
organisational goals and objectives (Casey, Fiedler, & Erakovic, 2011). Organisational

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Restructuring within Nokia will help the organisation in positioning its workforce so that the
organisation will be able to improve its effectiveness, in terms of analysing the market and
customer requirements and will be able to provide its customers with advanced and improved
products and technologies.
Developing strategies within the organisation that are focused towards achieving the
goals and objectives helps the management in providing ways through which it can work
within the organisation, and can effectively influence and guide the employees to work
effectively and efficiently within the organisation. As the employees are the important
element in the success of n organisation, therefore they are required to be effectively
communicated about the goals and objectives, also their actions are required to be monitored
and control so that the efficiency can be maintained (Zafar, Butt, & Afzal, 2014).
Nokia must focus on analysing the technological changes and the service quality
which is being provided by its competitors and focus on developing products that would be
able to compete with the competitor's products within the industry. As the customers within
the smartphone industry expect companies to come up with technological changes within the
product and to provide them with innovative products and better service quality and
experience. Focusing on such product development will lead Nokia towards developing
market share within the industry and will also support the organisation to compete with the
other players within the industry.
Nokia is required to implement innovation within its product along with the
organisational structure so that the management team would comprise of individuals who
would be able to take the necessary decisions after analysing the industry changes and
requirements and would lead the organisation towards achieving its set goals and objectives.
As the reason behind the downfall of the organisation was the lack of effectiveness of its

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organisational and managerial structure, therefore the organisation should ensure the
managerial effectiveness before implementing any policies and plan within the organisation.
6. Implementation and action plan
Implementing a strategic plan within an organisation is the most important part of the
strategic planning process. As effective implementation of plan within the organisation
defines the success of plan within the organisation. The management is required to ensure
that the developed strategic plan has been effectively implemented within the organisation.
As the process involves converting the planned activities into action and to work so that the
organisational goals and objectives can be achieved. The implementation of the strategic plan
within the organisation requires that the managerial efficiency within the organisation be
maintained (Chege, Wachira, & Mwenda, 2015).
To ensure that the plan has been effectively implemented within the organisation, it is
required that the management ensures effective flow communication within the organisation.
As for the implementation of strategic plan within the organisation, the employees working
within the organisation should know about the changes or the plans that the management is
planning to implement within the organisation so that they can understand their job
responsibilities and can work accordingly (Quirke, 2016).
Nokia should focus on defining the roles and responsibility of its employees based on
their capabilities and should ensure that the employees have the exact knowledge about their
job roles and responsibilities within the organisation. the implementation plan also includes
effective analysis of the current organisation situation and deciding upon the future
expectations after implementing the strategic plan within the organisation, to find the
effectiveness of the plan within the organisation (Deeb, 2018).

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Nokia’s managerial team should be focused towards increasing its market share and
attracting the customers within the industry; therefore, the management can effectively
analyse the results of the pan through the market share attracted by the organisation. The next
step in the implementation process is the implementation of a strategic plan within the
organisation and ensuring that the activities within the organisation are being carried out as
per the planned process. The strategic plan is required to be implemented through a planned
process and the management is required to ensure at each step that the activities are being
done as per planned.
The implementation of the strategic planning process does not end with the
implementation of the plan, it is required to be effectively evaluated and analysed so that any
issues within the planning process can be identified and required and necessary steps can be
taken to avoid the issue and the desired goals and objectives can be achieved (Alkhafaji,
2011). As, the partnership between Nokia and Microsoft, to produce windows phone initially
proved to bring success to the organisation but later it failed due to increasing popularity of
Android and iPhones within the industry.
7. Conclusion
The effectiveness of the planning within the organisation defines the success of the
organisation within the long run. Nokia is the market management in the mobile
manufacturing industry, failed due to the wrong decisions taken by the organisation’s
management. The management of the organisation was focused on increasing the market
share for the organisation, and neglected the changing industry requirements and the
changing customer's expectations within the industry. As a result, the market share of the
organisation started declining within the industry.

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To improve the market, share the organisation is required to focus on improving its
management and planning effectiveness within the organisation so that the managements can
effectively analyse the industry requirements and can adopt the changes within the
organisation. therefore, Nokia should focus on implementing organisational restructuring
within the organisation along with developing plans and policies that would help the
organisation to compete within the industry and be able to meet the needs and expectations of
the customers within the industry. The management and planning team at Nokia should be
focused on ensuring that the activities within the organisation are being performed in a
manner that would result in achieving the organisational goals. As effective communication
and the evaluation of activities within the organisation is the major aspects that ensure the
success of the strategic plan within the organisation.

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8. References
Alkhafaji, A. F. (2011). Strategic Management Formulation, Implementation,and Control in
a Dynamic Environment. New York: Routledge.
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation,
marketing strategy and organisational power. Journal of Business Research, 5597-
5610.
Casey, C., Fiedler, A., & Erakovic, L. (2011). Liberalising the German model: institutional
change, organisational restructuring and workplace effects. Industrial Relations
Journal, 1468-2338.
Cassidy, A. (2016). A Practical Guide to Information Systems Strategic Planning. New York.
Cecere, G., Corrocher, N., & Battaglia, R. D. (2015). Innovation and competition in the
smartphone industry: Is there a dominant design? Telecommunications Policy, 162-
175.
Chege, A. N., Wachira, A., & Mwenda, L. (2015). Effects of Leadership Styles on
Implementation of Organization Strategic Plans in Small and Medium Enterprises in
Nairobi. Management and Administrative Sciences Review, 593-600.
Cheng, R. (2014, April 25). Farewell Nokia: The rise and fall of a mobile pioneer. Retrieved
from Cnet: https://www.cnet.com/news/farewell-nokia-the-rise-and-fall-of-a-mobile-
pioneer/
Deeb, G. (2018, December 04). The Top 6 Steps Of Strategic Planning. Retrieved from
Forbes: https://www.forbes.com/sites/georgedeeb/2018/12/04/the-top-6-steps-of-
strategic-planning/#548eb62135b2