Organizational Change and Leadership: A Nokia Case Study Report

This report provides a comprehensive analysis of Nokia's organizational changes, focusing on its transformation from a mobile phone giant to a telecommunications and technology company. It explores the drivers of change, both internal and external, including market competition, technological advancements, and shifts in consumer preferences. The report includes a SWOT and PESTLE analysis to evaluate Nokia's strengths, weaknesses, opportunities, and threats, as well as the impact of change on its leadership and team behavior. It examines the organizational change models, specifically the alignment and scenario planning models, employed by Nokia. The report further investigates the impact of these changes on Nokia's strategy, leadership, and employee behavior, concluding with insights into how Nokia minimized the negative effects of organizational change. The document is a valuable resource for students studying organizational change, leadership, and strategic management, offering a detailed case study of Nokia's adaptation to a dynamic business environment.

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Nokia
Understanding and leading change
Report
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Contents
IntroductionBrief to Nokia..............................................................................................................3
Organizational change.....................................................................................................................4
Introduction to the Drivers...............................................................................................................4
Impact of change on Nokia..............................................................................................................4
External impact............................................................................................................................4
Internal impact.............................................................................................................................5
Nokia case study..............................................................................................................................5
SWOT analysis of company............................................................................................................6
Strength........................................................................................................................................6
Weaknesses......................................................................................................................................6
Opportunities...............................................................................................................................7
Threats.........................................................................................................................................7
PESTLE analysis of company.........................................................................................................7
Economical:.................................................................................................................................8
Social:..........................................................................................................................................8
Technological:.............................................................................................................................8
Legal:...........................................................................................................................................8
Environmental:............................................................................................................................8
Impact of change on leadership and individual or team behavior...................................................9
Impact on leadership:...................................................................................................................9
Influence the Team behavior:......................................................................................................9
Organizational change models.........................................................................................................9
Alignment model:........................................................................................................................9
Scenario planning model:............................................................................................................9

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Impact of challenge........................................................................................................................10

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Introduction
Organizational change refers to where a company changes its structure and missions.
Organizational changes affect its management and culture and company takes several steps to
overcome these changes. This major organizational change of Nokia’ was not a turning point for
the firm but they maintain their position in the industry.
In this report, a SWOT analysis will discussed as a tool to know the strength, weaknesses,
opportunities, and Threats. SWOT analysis to evaluate its internal and external aspects. Further
discussion is on the impact of change on the Nokia and that evaluates the external and internal
impact. Next discussion is on the organizational models that help to implement the
organizational change.

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Assessment: 1
Nokia case study 1
Nokia was one of the most successful mobile devices and the biggest supplier of mobile devices
from 2000 to 2010. Another major organizational change of Nokia was the transfer of Nokia’s
phone division to Microsoft. Through the change, Nokia changes its focus its operations on the
innovation of its products. Company’s stakes increase to 30% because of the implementation of
change. According to the current market strategy, Nokia is building a new network and
technologies with the motive to regain the market series (Anon., 2019).
Introduction to the Drivers
Nokia introduced the latest five G-related technologies at IEEE Globe-com 2016 with the
dynamic spectrum and web automation to optimize capacity. The different drivers introduced by
the Nokia are that consumer is now able to see spectrum access checker for Nokia 4.5G pro LTE
leveraging 3.5GHz CBRS band Nokia Bell Lab’s intelligent Traffic Steering. Nokia introduces
end-to-end technology in which applications will boost up on similar network hardware. The
innovative steps by the company will meet the different demands of different consumers (Lewis,
2019).
Brief to Nokia organizational strategy
Nokia is a global company. The nature of the company is telecommunication, information
technology, and Electronics Company. The Headquarters of the company is located in Espoo and
presently 103,000 employees are working in the firm. The company develops and delivers its
services globally and provides the network’s tools to the customers. The main tag line of Nokia
is ‘Connecting people’ (Anon., 2019).
Impact of change
What changes occurred in Nokia:

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1. In the year of 2011, Nokia entered into the partnership with Microsoft to adopt the
window technology with the replacement of Symbian OS platform.
2. Nokia changed leadership policies by adopting a new leadership team. Nokia changed its
leadership policies by adopting the adapter-leading program.
3. The major change in the internal management of Nokia is they transfer the power of
decision-making from senior management to the local and national team (Gareth, 2013).
4. Nokia utilizes the modular method in which they provide innovative handsets according
to the demands in global markets.
Positive Impact: Nokia change of window technology was not successful as it failed to attract a
large number of consumers. Technological innovations by the Nokia help company to maintain
sustainability in the market and increased revenue in the market. However, Nokia did not
properly utilize the technological changes in the market (Knag, 2019).
Negative impact: By not adapting change, it affected the company’s profit and they lose 90%
consumer base from the market. The harmful changes lead the Nokia to share its research
services with Microsoft. The constant innovative changes squeezed the revenue and capital
requirements in the organization. (Lewis, 2019).

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Overview of Nokia case study
Nokia was one of the leading players in the manufacturing of mobile phones but Apple and
Samsung replaced Nokia with its innovative strategies. Nokia lost its consumers base after 2014
and now there is only 25% consumer base sustain by the company.
The 2012 revenue of Nokia was $34.08 billion which decreased by $16.31 billion in 2015. It
clearly shows the company’s difficulties and struggles. Somehow Company survives and brings
organizational change and thus increases the profits of the company by $26.647 in 2018.
Company maintained its position in the smartphone industry through organizational change.
(Anon., 2019).
SWOT analysis of the company
Following analysis of Nokia states the company’s strength, weaknesses, threats, and opportunity.
Nokia is one of the biggest manufacturers in the mobile Industry. The company was profitable
until 2000 but after the company lost its market share compared to other brands such as
Samsung. Nokia brings change its structure with the Symbian OS model. (Lindholm, 2003).
Strength
 Nokia was one of the leading players in the smartphone industry with 142 experiences.
One of the major strength of Nokia they have strong financial support to provide finance
in the research department. (Sam, 2016).
 Leading network in selling and distribution of mobiles and they reach across the
countries.
 The products of Nokia has a feature of a diverse range
 Nokia has a great resale worth in comparison to other smartphone brands.
 Extensive battery life
 Stability
 Consumer friendly
 Worldwide expansion

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Weaknesses
 Nokia is failing to adopt changes in smartphone businesses. Decreased level of resources
is also a major weakness of Nokia.
 The implementation process of plans and strategies is not efficient as they fail in the new
launch of E-series and handsets.
 Low voice quality
 Designing of products is not attractive
 Heavyweight sets
Opportunities
 The demand for smartphone is increasing day by day. People switching their preferences
towards android and IOS and company can use this as an opportunity. Expand its
existence in 4G and 3G or edge market.
 Today’s phone user is only concern about camera quality company can use this as an
opportunity by providing good camera quality to the customer (Knag, 2019).
Threats
 During 2014, apple and other brands wiped out the Nokia from the market with their
aggressive innovation strategy. In 2019, Apple plans to adopt the OLED displays to give
more flexibility in handset design.
 Major threats for Nokia are China because they made an exact copy of Nokia’s products
and sell them on the reasonable prices.
 Insolvency is also a huge threat to the company, as Nokia is not adapting to the changed
consumer's taste and preferences. ( Vijayasarathy, 2018-2019).
Impact of change on Nokia
External impact
Competitors: Other businesses like Apple and Microsoft have a huge position and goodwill in
smartphone businesses. Innovative changes also bring quick change in the performance of
customer and preferences of the customer (Knag, 2019).

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Government: The government recent innovative change in the smartphone business was they
increase the customs duty but as in the case Nokia it would be a minimum impact because major
products of Nokia is manufactured locally.
Other entrants: The risk of new entrants for Nokia is Android and IOS. Others brands like
Xiaomi are also giving tough competition to the Nokia by providing a reasonable rate of mobile
phones to customers. There is a 70% user base is of the Android and IOS which may create
difficulties to the company (Caligiuri, 2012).
How it affects Nokia’s strategy
The major affected was on the employees as they protested against the decisions of the company
they were insecure about job security. Due to change, the company brings variation in its
structure on April 1, 2017, to implement the planned strategy. The recent major change was two
mobile linkages in which one is concentrating on product and innovation and another on the
global services. (Gareth, 2013).
Internal impact
The major changes affect the value-based relationship with employees and leaders of the firm, as
they were against some decisions of the company. The major change affects the communication
strategy in the management as it creates a lack of coordination among the various departments of
the firm.
Impact of change on leadership and individual or team behavior
Impact on leadership: The major organizational change affects the leadership in internal
management. The change, which brings by the company, required confirmed commitment from
the leaders due to the intensification of major change. In 2016, to improve the differences launch
an “Adapter leader program” to target the mid-level managers and to evaluate their suggestions
and opinion at the time of decision-making. (Anon., 2019).
Influence the Team behavior: The major organizational change of manufacturing window-
based phone L-series reflects impacts on team behavior. The teammate protested against the

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decisions of the company as they assumed they might lose their jobs. According to the team, the
launch of the window operating system will be a failure for the company. ( Lane, 2016)
Organizational change models
Strategic planning model divided into the two parts, Alignment model and Scenario planning
model. Nokia uses these two models to implement the major change.
Alignment model: All the resources, mission and support comes under this model and this
model ascertain that everything is as according to the plan. This model helps in the
implementation of modifications and strategies in the strategic model of organization.
Scenario planning model: Following model helps in identifying the issues facing by the
company during the implementation of the Scenario model. This model helps in identifying
several external factors. In this model, three situations formulated to give respond to each
variation.
How the impact of change minimized in Nokia
Nokia minimizes the organizational change, by the timely implementation of strategies and
objectives. The company should make statements that honor the management and employees.
Before taking any organizational change, the company must discuss with its staff and leadership
team to reduce the organizational effect.

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Conclusion
Organizational change is a very complex step, which should carry in effective ways. When
organizational change is implementing by the large organizations certain points should kept in
minds such as strong management and good attitudes towards the management. Whenever, a
company implementing a major change an effective organizational change model must apply.
When a company brings organizational change, it must bring with the positive behavior.

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Bibliography
Lane, E., 2016. Nokia: Life after the fall of a mobile phone giant. [Online]
Available at: https://www.bbc.com/news/business-35807556
Vijayasarathy, S., 2018-2019. Brand Nokia made it big in 2018, in 2019 it now needs a flagship
phone to complete its comeback story, s.l.: s.n.
Anon., 2019. [Online]
Available at: https://www.nokia.com/
Anon., 2019. [Online]
Available at: https://www.nokia.com/about-us/news/releases/2018/10/25/nokia-announces-plans-
to-accelerate-strategy-execution-sharpen-customer-focus-and-maintain-long-term-cost-
leadership/
Bien, U., 2017. Relational leadership theory: Exploring the social processes of leadership and
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