Executive summary
Nokia started their business as a riverside paper factory in south-western Finland and became to a global telecommunications leader connecting over 1.3 billion people. During the years they’ve made rubber, cable, forestry, electronics and power generation. The mining engineering Fredrik Idestam open a factory on the banks of the Nokianvirta river, which inspires him to name his company Nokia Ab in 1871. In 1967 Nokia Ab, Finnish Cable Works and Finnish Rubber Works officially merge. The 80’s represent the start of the “golden age” for the company which represent a entirely new industry that makes Nokia a worldwide brand recognized name. By the late 1970s and early 1980s the mobile communications revolution starts to be bigger and Nokia Corporation it was positioned to take a pioneering role in this new industry, leading the way with some iconic. Then in 1987, Nokia introduces the Mobira Cityman, the first mobile phone for NMT networks with 800 grams and a price tag of 24,000 Finnish Marks (around EUR 4,560). Also in this year the GSM (Global System for Mobile communications) ignites a global mobile revolution with its high-quality voice calls, international roaming and support for text messages And in 1992, Nokia launches its first digital handheld GSM phone, the Nokia 1011. In the same year the new Nokia’s President and CEO Jorma Ollila makes the most important strategic decision: to focus exclusively on manufacturing mobile phones and telecommunications systems, which means sold off all the others segments. The greatest result come with the Nokia 2100 series selling 20 million phones worldwide (Nokia’s target had been 400,000) and by 1998, Nokia was the world leader in mobile phones increased almost five fold from EUR 6.5 billion to EUR 31 billion. In 2010, Nokia’s mobile market faces its hardest challenge to date as intensified competitionin the smartphone segment.
After having dominated the mobile world for over a decade, Nokia loose their leader position gradualy for competitors such as iPhone and Android-based devices, which means the biggest challenge for the company. To be more prepared and stay competitive in this new enviroment the company appoints Stephen Elop (ex-head of Microsoft’s business division) as President and CEO, in september 2010. Following this, Nokia decide to make a strategic partnership with Microsoft to make their position in the smartphone market strong and sustainable. So the Nokia’s smartphones could count on Windows Phone 7 operating system, leaving gradually the Symbian platform.
Nowadays, Nokia has Lumia 920 – Windows Phone 8 smartphones. Now the goal is to establish a third ecosystem to rival iOS and Android.
“The industry has shifted from a battle of devices to a war of ecosystems.” Stephen Elop, President and CEO, Nokia.
Introduction
In view of the global stage, Nokia’s dominated the market as the biggest vendor of mobile phone in 14 years, but this scenario has changed by Samsung and Apple. Olli-Pekka Kalasvuo (ex-CEO) has been criticised for failing to bring Nokia to the new mobile phone market (The Swedish Wire 2009). Thus, he was replaced by Stephen Elop who taken the battle wider aim that challenge is actually the battle of symbian, ios, android and blackberry systems, in other words, it’s a battle of the whole ecosystems which ecosystems include not only the hardware and software of the device, but developers, applications, e-commerce, advertising, search, social applications, location-based services, unified communications, and many other things. The good news it’s that some changes already have been made following the partnership with Microsoft, such as the adopt of Windows Phone 7 operating system at first, and now Windows Phone 8 which brought some strenght for Nokia’s smartphones starts to compete with the other systems.
Policies and practices
Nokia’s mobile phones has an environmental management system (EMS) in each of their nine production units around the world. The regional EMS representatives started working together intensively from the beginning of 2002, with the goal of harmonize the systems, share best practices, and avoid non-conformities and building a single EMS for all Nokia Mobile Phones production sites. Following the data collected with EMS representatives the company decided to start a continuous plan following the steps communications and training, monitoring and measurements, EMS objectives and targets, and emergency preparedness. To aim the first goal (unified communications) every NMP production site built its own environmental intranet site or improved the existing one. Moreover, Beijing joint ventures delivered its monitoring and measurement documents, which the other teams adopted modifying for their needs. The whole company was helped with this project once they started to know more about each other and exchanged a lot of information. In addition, the workload of the team members was kept to a minimum because they used only existing tools. So while the documented procedures help to maintain systems and share knowledge, they cannot always be adopted as is in all regions, that’s why it’s very important to check local legal requirements and processes and of course translating the documents into and from local languages. Unfortunatelly, this could really spend a lot of time. By the end of 2002, with this case many processes were improved, the global guidelines were finished. To develop the guidelines further and align the project with the new structure and strategies that Nokia has taken, new cases will be chosen and implemented to bring new dimensions to this development work.
The New Strategy
The main change of the new strategy comes with the partnership with Microsoft that hopefully will make the company regain lost ground in the smartphone market. The main goal is build a global ecosystem that surpasses anything currently in existent Nokia’s strategy is to develop its innovation and strength in growth markets to connect even more people to their first internet and application experience. They’re focusing particularly to emerging markets and the current ambition is to bring the next billion online. The renovation of Series 40 platform in QWERTY, touch & type, dual SIM, Nokia services, including Maps, Browser, Life Tools, Web apps and Money will be continued. They’re also investing in developing assets (platform, software, apps), which will bring a modern mobile experience to consumers and enable business opportunities for developers.
Mission: Following the slogan “Connecting People” our main goal is to build great mobile products that enable billions of people worldwide to enjoy more of what life has to offer against the challenge of the increasingly dynamic and competitive environment. Key elements:
– build a new winning mobile ecosystem in partnership with Microsoft – bring the next billion online in developing growth markets – invest in next-generation disruptive technologies
– increase our focus on speed, results and accountability source: http://www.nokia.com/global/about-nokia/about-us
External environment analysis
The smartphone wars is an ongoing business battle by smartphone manufacturers such as Sony, Google, Apple Inc., Samsung, Microsoft, Nokia, Motorola, and HTC, among others. Currently in the smartphone space, Samsung and Apple are the standouts and the race is on for third place. To achieve this partnerships morph into acquisitions such as Google-Motorola Mobility and more recently Microsoft MSFT and Nokia. Others, including Blackberry, HTC and LG still struggling to gain some competitive in the market. As mentioned before, with the new owner the newest nokia’s mobiles could adopt of Windows Phone 7 operating system at first, and now Windows Phone 8 which put them back in the worldwide mobile phones market ranking.
Based on the new strategy, Nokia and its management structure has be reorganized. However, Elop isn’t dismissing its top executives, just moving them around. On April 1, Nokia will have a new company structure, which will features two distinct business units: Smart Devices and Mobile Phones.
In view of those changes in the market and the continuous adaptation of nokia in the new environmentally the company face the following situation:
Major operational change
The main operational change is turn brand image from delayed/outland to competitive/innovative. In addition, to achieve the third position on the smartphone’s market. To aimed this the company needs new mobile phone development process, high investment in research (trends, etc.), acquisition of patents, executive’s changes and reduction of costs (considering employees turnover).
Change management strategy
Objectives
– reach the third position on smartphone’s category and come back to be one of the market leaders. – increase the number of sales and decline the stocks.
– change the brand image from delayed to innovative to attract the new costumers. – continuous focus on emerging economies given that the search for smartphones it’s growing fast in those areas. Strategy
As a criteria of success, experts on mobile phone should be hired to make he whole company understand where the market is being driven. Following this, a report with current nokia’s situation should be made including main problems, target areas to be invested and after develop the action plan. Continuous prioritize investments in emerging country and areas, hire new executives with good portfolio to manage the teams and drive the company to the right point.
Cost-benefit
Nokia spends in resource represented more than most of the other companies in 2011. In view of which best companies in the segment didn’t spend the most as Nokia spent and they still have the best skills and knowhow to stay in the highest position of market leaders, the new resource team will be smaller, more specialized and qualified to achieve the goals (innovation, be aware the trends, etc.), which will cost quite less than usual, such as 2.3 billion, and will be much more efficiently.
To promote the new software (Windows 8 smartphones) and guarantee the sucess of this new release the company spent around 128$ million dollars. Once the public are already familiarized with the new system the new cost will be little less, such as 109$ million dollars, but not insignificant because the battle for a new image for the brand still going. Source: http://www.cellular-news.com/story/49966.php
Timesheet
Weekly: a training with the employees will be made focusing in the new nokia’s value and the objectives that we want to achieve.
Monthly: Feedback of the EMS leaders, managers and teams about what we aimed and what it’s need to change. Also, internal communications will be developed evey month to remaid the employees what’s changing at nokia and engage them with a internal newspaper which will include the best points of the month for the company.
Every 6 months: report of the results and review of the strategy if needs.
Risk Management plan
Nokia’s risk management concept is based on covers all risk areas: strategic, operational, financial and hazard risks. The focus is also on opportunities, threats and risks related to Nokia’s objectives rather than being just on eliminating risks.
Some notable risks are that the people could feel insecure to buy the new mobiles/softwares and represent less productive, they could not accept the company’s turnover of emploeeys and all the new hirings, all the efforts don’t works enough good to competitive with iOs and Android systems.
The documented Nokia’s Risk Policy require risk management and its elements to be integrated into business processes. The main point is that the business or function owner is also the risk owner, however, it is everyone’s responsibility at Nokia to identify risks preventing us from reaching our objectives.
Appendices:
example:
http://www.cengagebrain.com.au/content/waddell85958_0170185958_02.01_chapter01.pdf http://www.adelaide.edu.au/hr/strategic/leading_change_toolit.pdf annual report 2012
http://i.nokia.com/blob/view/-/2268488/data/3/-/NSN-form-2013.pdf annual report 2011
http://i.nokia.com/blob/view/-/1161018/data/2/-/Request-Nokia-in-2011-pdf.pdf
annual report 2010
http://i.nokia.com/blob/view/-/165250/data/5/-/Request-Nokia-in-2010-pdf.pdf google x apple vs. nokia
http://www.gyro.com/#/igniting-now/advisor-to-forbes/?utm_campaign=gyro_2013&utm_source=Forbes&utm_medium=banner&utm_content=640x480_eBook_WelcomeAd A Formal Nokia’s Functional Structure:
http://orgdes.wikispaces.com/Team+Alpha
about nokia and Microsoft (changes and new structure):
http://readwrite.com/2011/02/10/nokia_microsoft_deal_confirmed_5_key_questions#awesm=~okSsxfIeC3YU6o http://www.allaboutsymbian.com/news/item/12584_Nokias_new_strategy_and_struct.php from nokia’s site
http://www.nokia.com/global/about-nokia/about-us/our-structure/ http://www.nokia.com/global/about-nokia/about-us/about-us/
financial report:
http://www.results.nokia.com/results/Nokia_results2012Q4e.pdf change management plan!
http://www.nrm.wa.gov.au/media/10528/change_management_plan_workbook_and_template.pdf
(planilhas!)
Implement change management strategy
a. Communication and education
– Consultation
– Explain the activities to deliver communication and education – Intervention:
Job redesign, action research, career planning, team
building, transition analysis
b. Evaluation
– Elements to evaluate
– How to evaluate
– Report changes after evaluation
