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  • Essay / Bureaucracy Case Study - 2577

    It is also a fact that Nokia was the first to develop a whole range of new smart phones in the world. However, they were too big and inefficient; from there, Nokia was later replaced by other companies. They then attempted to reverse the decline in smartphone market share and ultimately lost almost all of their market share by 2014. Many considered Nokia to be the largest company and a pioneer in the field of smartphone manufacturers. mobile phones. The company had the funds and human resources to continually grow. However, as mentioned above, this company became too big to be inefficient, so it was not able to immediately change its strategies and policies, or even its corporate structure and culture. Therefore, bureaucracy is one of the reasons why they have been overtaken by other companies and ultimately have no chance of capturing the smartphone market share. According to O'Brien (2010), in Nokia, bureaucracy stifled innovation and development. In fact, Nokia prepared the prototype of the touch screen and Internet features a few years before Apple introduced the iPhone. According to the New York Times (2010), Hakkarainen (former head of Nokia) said that Nokia did not pursue innovation, but paid more attention to research and development costs. Furthermore, he also noticed that Nokia's organizational structure is extremely sophisticated and huge. Therefore, these factors led to dilemmas regarding communication and cooperation with different departments. For example, when he was in charge of the marketing department, if a staff member proposed an idea or proposal to him, if that proposal involved an interdepartmental decision, he had no authority to make a decision and could not collaborate immediately with another department head. The bureaucratic structure necessitated submission of this proposal to the Director General and a wait