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Essay / Dissecting Nokia's Business Model
Table of ContentsIntroductionOrganizational BackgroundMoses for ChangeAnalysis and Evaluation of Change Process/ProgramFreezingChangeBusiness StrategyOrganizational StructureHuman ResourcesRefreezing:RecommendationsConclusionIntroductionThis report is carried out to analyze and examine Nokia's change management, the one of the leading manufacturers of mobile phones. The report will review Nokia's information about their background and history. Problems related to falling behind in global competition are also highlighted. Faced with these problems, it is time for Nokia to work on its change process. Nokia has implemented change in important aspects of the organization under the leadership of its new CEO. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayOrganization BackgroundNokia Corporation or Nokia is a well-known Finnish multi-industrial company, founded in 1865 from a single paper mill (Bennett and Pohjanpalo, 2017). Since the beginning of telephony, Nokia began to enter the world of telecommunications. And when Europe deregulated the industry, Nokia decided to make mobile and telecommunications its core business, with a large number of achievements in human history, such as the first fully digital local telephone exchange, the first car phone, the first GSM (global mobile telephone system). communications) call… (Schrempf, 2011). By 1998, Nokia was the world's leading brand of mobile phone devices for decades. The ambition of this innovation leader was manifested more clearly by evolving and developing its business. joining giant companies like Siemens, Microsoft… With the vision of transforming the way people and things communicate and connect, led by thousands of people in over 100 countries, Nokia Corporation was an iconic model of organization prosperous in its brilliant era.Impetus for changeAccording to Aubry et., driving forces. In this case, the problems faced by Nokia can also be divided into 2 categories: internal and external forces. At that time, Nokia was facing global innovation competition with new companies. Technology is one of the fastest growing elements in this modern world (Hallingby, 2016). Many great innovations and achievements have been presented to improve human life, especially in the field of mobile telephony and telecommunications. With the advent of smartphones, market competition has become more intense among device manufacturers. In 2007, Apple introduced its first multi-touch smartphones with unique operating systems (OS) and a mobile platform later named App Store. Only after that the Android operating system was also created with the Play Store platform. These new OS with their platforms were the new revolutions of the time and customers started adopting them. In 2010, these two dominated the market. As the largest mobile device manufacturer, Nokia thought that all the new products it introduced were the latest technology and ignored the presence of Apple and Android operating systems. However, they did not anticipate that this emergence would lead to a change in customer demand and behavior. Nokia's sales continued to decline and lost its top position in the industry (Violeta and Camelia, 2016). For internal strengths, Nokia has a great history as a Finnish organization, especially itssenior management. With people from the same background and generation, the culture and leadership of the organization became conservative, lacking great innovations and bureaucratic culture in a rapidly changing world (Violeta and Camelia, 2016). Nokia's sales continued to decline and lost their top ranking in the industry due to their conservative attitude towards the growth of technology. Analysis and evaluation of the change process/program. Organizational change refers to a long-term effort to improve an organization's problem-solving capabilities and its ability to cope with changes in its external environment with the help of a change agent (Đurišić-Bojanović , 2016). According to Dittrich and Duysters (2007), Nokia has undergone several organizational changes since its creation. And one of the current major changes in this organization is the device and service partnership with Microsoft, the American technology “giant”. The process of change at this time was crucial for Nokia as its profits and market share continually declined. Before closing the deal, Nokia appointed Stephen Elop as CEO to guide the company through these difficult times. To analyze this change process, Kurt Lewin's change model will be used in this part. This model includes three stages: unfreeze, change and refreeze (Medley and Akan, 2008). The reason for using this module is that it is a planned change when Nokia recruited a change agent. Elop, as CEO, determined and prepared the process for the organization. Thawing Thawing is the first step in the process. This is the time for the organization to prepare for change by beginning to recognize the forces that are in favor of change and also those that oppose it. The driving forces cause group members to become dissatisfied with the status quo of the organization and prepare for the time of change. However, some barriers push change when they slow down the change process (Maon, Lindgreen, & Swaen, 2009). In the case of Nokia, applying Lewin's force field model provides the appropriate overview to understand the current state of the organization. Figure 1 illustrates this analysis. This module clearly shows that the driving forces outweigh the restraining forces, meaning a change was seriously needed for Nokia. The many difficulties that Nokia was facing made its business suffer and it was time for Nokia to look for a way to move forward, improving its efficiency in the mobile device sector. For restrictive forces, these are the problems that oppose the process of change occurring in the organization. To initiate change, Nokia and management had to reduce resistance to change. The change process could not continue without a change agent. The change agent is a change leader who can be internal or external to the organization (Zbieg, Batorski & Zak, 2016). As the first non-Finnish leader in the organization's history, Elop acted as a change agent and quickly started the change process by posting a searing memo on the platform openly showing his employees the seriousness strategic challenge they face. The note also calls on everyone to give their opinion to initiate change. This was a great move by Elop to overcome resistance when employees learned about their new CEO and the current state of the organization. Later, employees were noticed about the change process. Here is a summary of Elop's memo: “WeWe fell behind, we missed big trends and we lost time. At that time, we thought we were making the right decisions; but, looking back, we now find ourselves years behind schedule. “Our competitors are showing intense heat, faster than we imagined. Apple disrupted the market by redefining the smartphone and attracting developers to a closed but very powerful ecosystem. » “China's Shenzhen region is capable of producing phones at an incredible rate. By some accounts, this ecosystem now produces more than a third of the phones sold worldwide, taking share from us in emerging markets. » “Our competitors are not taking our market share with devices; they take our market share from an entire ecosystem. » “We poured gasoline onto our own combustion platform. I believe we have lacked accountability and leadership to align and lead the business through these disruptive times. We had a series of failures. We haven't innovated fast enough. We do not collaborate internally. (Anthony, 2012).ChangeThe middle stage of Lewin's model is changing or moving. This is the time to apply and implement plans and actions for change. The change tools at this stage cover many aspects of the organization. Business Strategy A few days later after the note, Elop announced Nokia's new strategy when switching from its current operating system to Microsoft's Windows and they became a partnership in the field of mobile and services. Partnership is one of the tools of organizational change. This will fit well with all areas of these organizations and allow them to be mutually beneficial (Schuster & Holtbrugge, 2014). This partnership came as a big surprise to everyone inside and outside Nokia as well as Microsoft. Confusion and worry about the big change happened to everyone involved in the change. However, as a decision maker, Elop believed that this union was an opportunity for them to work together, bring more innovation and create differentiation in the market. The two have combined their strengths in mobile and services. Nokia Maps, for example, would be central to key Microsoft assets such as Bing and AdCenter, and Nokia's app and content store would be integrated into Microsoft Marketplace. As new goals, a new ecosystem of mobile devices was expected to be a revolution and success for two in the near future (Carter, 2011). Organizational structure After the partnership agreement, Elop began to restructure Nokia. He chose a staggered management structure, bringing a flatter management structure to the organization. The new level of management will be called the executive team instead of the board of directors. Delayering involves removing layers of management from the organization in a highly competitive environment (Pai, 2015). In this case, it is important to use delay as a tool for change, because Nokia's original structure was complicated and slow to make decisions. The new change would help them increase efficiency and productivity. Elop also changed the operational structure of the mobile and services division by dividing it into two main units: smart devices and mobile phones. These units have their own accountability for their performance focusing on the complete customer experience. The divisions were small and allowed for faster response by targeting very different markets in terms of demand and usage of features. Other units have.