Question

In 2011, Nokia announced a strategic partnership with Microsoft, a new strategy and a new internal organization. Microsoft (2011) reported on the changes:

"With Nokia's planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come."

"As of April 1, Nokia will have a new company structure, which features two distinct business units: Smart Devices and Mobile Phones. They will focus on Nokia's key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.”

Sadly, that did not pan out.

• How would you describe Nokia’s organizational structure using concepts from this module (including functional versus divisional versus conglomerate; centralized versus decentralized; mechanistic versus organic)?
• Debate whether these changes help the company to execute its strategy going forward.
• How does Nokia's structure compare to your employer's structure?

Answer 1

functional versus divisional versus conglomerate

Nokia production and Research development is lacking after 2008, because In 1999, Nokia 7110 became the first mobile phone with a WAP (wireless Application Protocol) browser.  In  2001, Nokia introduced the Nokia 8310, which contained premium features,  Nokia N-Gage introduced in 2003.  It was a game play station--Nokia incorporated Nintendo’s Game boy into a mobile phone.Nokia introduced  Nokia 7600 in 2003, one of the 3G smart phone by Nokia, still one of he lightest and smallest.  It also introduced I-phone introduced in 2007.  Everything was fine, from 1992 to 2007, In 2007, nokia started to having a problem arisen from battery get fault, longer -term problem survived and nokia recalls one of the product from the market. Starting from 2008 its moved into backwards.  Research and Development is one of the most functional for marketing products,in this case Nokia failed out in R&D after 2006.  It could not battled with higher technology given by its competitors.

In Division,  nokia  didn’t have proper supervision, Motivation. Leadership, and Communication or  Though, they have lacked on this same. Product - Customer - service is equal to  top management -middle management - lower management. Lower division mingled straight away with  product and customers.They Didn’t received   proper training to handled, to give solution for the problem.

Long Battled, Nokia have tied up with microsoft for using apple and android platform. Nokia had a profit, in the year of 2013, before couple of years it was running by the loss.

Nokia said that 2014 was a year of reinvention for the company. They would have more than 300% increase in their operating profit.

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Nokia’s Centralization of decision making indicates the locus of authority and refers to degree to which power is concentrated in organization.  Nokia decision authority failed to take up the decision with giving more technology to their phones. Nokia reduces both quantity and quality in the mid of 2006. How ever management back by its performance while using Decentralization firm used more people participate in  corresponding decision-making process. They have a idea to speak with lower level managers or front line employees for implementing strategy to making Nokia as best. As the result In  2011, nokia tied up with microsoft.

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It is very difficult, to saying which is one of the best organic or mechanistic for Nokia because both needs depending upon how they using factors  of  organic or mechanistic.

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Yes, some changes hav done by Nokia this help the company to execute its strategy going forward Because they reach 300% operating profit in 2014.

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Nokia back to form so they have to maintain employer's structure.