Transcript
Strategic Management
ASSIGNMEN
TON
Strategic Management
Submitted byName:
ID#
Submitted toCourse Instructor
Date: August, 2010.
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Acknowledgement
This Strategic management has given me the opportunity and most valuable
researchable information needed to become successful in the field of Strategic
Management. These are the effective arts of creative intellectual thinking and the
mountable value of individual work.
I am extremely happy and grateful to my mentor to have guidance and advisor who
has always give the support and believe in us from day of starting and motivated
me all through.
In the course of completion and conducting the assignment for data collection, I
would like to say and express my deepest gratitude to those of the people who
helps and supports me for the collection of the right and accurate information.
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EXECUTIVE SUMMARYNokia N8 is new device of cell phone which has lots of functions and latest updates.
Nokia has increasing market trend and the overall market share of Nokia is around 50%
based on the survey information of 2009. Nokia’s great slogan is “Connecting with
people” that connect people wherever they are. The consumers of Nokia are worldwide
and it has great varieties of products in diversified market. Recently Nokia unveiled and
released a new device and product for its customers, and of them Nokia N series products
including the Nokia N8 are high demanded products. AT the very beginning of time and
recently Nokia held a Convention which is in Singapore. In that convention Nokia
renewed and rectified its commitment and promises of determination to serve and deliver
the great deal of experiences to their customers with its new and latest range of products
and promotions. Nokia convention has been held basically to renew its commitment and
given promises to its loyal customer. At that event of convention, two new devices were
announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in addition with
this showcase of Nokia the gorgeous and high designed Nokia N8 was revealed for the
first time in the market of cell phone basically for the region of its customer to the media
and the analysts. N8 is high quality smart phone in the cell phone market. The aim of
Nokia is to satisfy a broad and wide range of customers over the world. Nokia is
becoming and continuing it’s growing up of market and it is to bring an affordable and
easy access to the communication of mobile. There are hundreds of millions of people in
the world using the Nokia as primary phone. Nokia is bringing smart phone in the market
and its functionality and varieties to the mass customer market easily and quickly and it is
more and more affordably. Among all smart phones Nokia N8 is one of the first smart
phone which is a device for the people want to create and enjoy the contents of N series
Strategic Management
that are really amazing. Nokia N8 has TV programmers’ and Ovi Store apps. Nokia N8
has great stores of music player which has great entrance to the thousands of songs.
Table of Contents
1.1 Introduction:
1.2 Objective of the Assignment:
1.3 Scope of the Study:
1.4 Methodology:
2.1 Strategic Change:
2.2 Business Transformation2.3 Considerations in Business Transformation:
2.4 Convention of Nokia in Singapore:
2.5 Nokia’s change of connecting people:
2.6 Principles of Nokia’s change management:
2.7 Renewal of Nokia’s Commitment:
3.1 Successful change Strategy of Nokia:
3.2 Assessment of Competitive Environment:
3.3 Considerations in Assessing Competitive Environment:
3.4 Process of Competitive Strategy and Method of Assessment:
3.5 Strategic Transformation of Nokia:
3.6 Key Elements of Nokia’s Business Transformation:
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Evaluation of Nokia’s Transformational Change:4.1 Value Chain Process of Nokia:
4.2 Porter's Value Chain:
4.3 Competitive Advantages:
4.4 Nokia’s Competitive Advantages:
4.5 Factors of Competitive Advantages:
4.6 Corporate Strategies of Nokia:
4.7 Comparison of Corporate Strategies with Apple:
5.1 Joint Venture:
5.2 Failure Strategies of Nokia:
5.3 Consolidation and Recovery Strategy:
5.5 Suggested Strategy for Nokia:
6.1 Conclusion:
Strategic Management
1.1 Introduction:
The world is becoming more competitive and high competition makes the world to
be globalized and so today’s business world has become more improved and
developed. And thus now the world business market is very and tremendously
competitive. The organization has to follow some rules that should help the
company to reach its destination. At the very beginning of business and creation of
company existence there are certain goals and objectives have to set. The target
makes the organization to reach its destination and to reach that organization’s
targets company management is very important thing which must need to be
proper and accurate. Nokia as a company, it’s a growing company which is in at
maturity position of its life cycle. The global market of Nokia is very high
demanded and rich. Approximately 50% market share are under control of Nokia
Company. Nokia’s great slogan is “Connecting with people” that connect people
wherever they are. The consumers of Nokia are worldwide and it has great
varieties of products in diversified market. Recently Nokia unveiled and released a
new device and product for its customers, and of them Nokia N series products
including the Nokia N8 are high demanded products.
1.2 Objective of the Assignment:
The basic objective and general focus of the assignment is to get and to identify the
major important factors which can be ensured by the best customer serving by
delivering best and by satisfying their needs in the mobile phone sector. The
assignment has been done by analyzing the company of cell phone industry and
basically Nokia.
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1.3 Scope of the Study:
The scope of study is very important factor of the rules of guidance and path of
success. The scope of this assignment is basically limited to its function and to the
overall brief description of the Nokia Company, its products, products ranges and
customer services, and its position of ranking in the cell phone industry. The scope
of the assignment is so limited to the management plan and management team, and
lastly the organizational setup of the company.
1.4 Methodology:
The methodology is most important consideration in case of preparing the report.
So, to prepare the assignment on strategic management of Nokia is crucial. The
analysis method has been done without statistical presentation but the description
and interpretation of current data has been shown by step by step. In that case, the
methodology of the analysis can be described as descriptive research.
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2.1 Strategic Change:
Strategic change is the need for the organization’s further development and
progressive pathway of organization’s success. A strategy basically the strategic
plan for the company is a long term plan of business and long term way to achieve
and attain some specific goals or objectives and to reach the target of the business.
The success of the company is totally depending on the strategy of management
and managerial decision of the company. The short term strategy is really
important for gaining the long term strategy of company. Strategies are based on
the company objectives and generally focus on the near future of company to bring
the change of organization and to cope up with the success of corporation.
2.2 Business Transformation
Now a day’s transformation of business is becoming a more important to look at.
Business transformation starts from the change of organization objectives and
cause of manage change to organization. Business change and its transformation
can be considered as a compliment of change management and strategy for
managerial change in the company that can aim to business change of aligning
People, operations, operational activities and business process and technological
change of the company. The organization has to follow some rules that should help
the company to reach its destination. At the very beginning of business and
creation of company existence there are certain goals and objectives have to set.
The target makes the organization to reach its destination and to reach that
organization’s targets company management is very important thing which must
need to be proper and accurate. So, business transformation has an influential
impact on industry life cycle as well.
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2.3 Considerations in Business Transformation:
Planning
One of important key of aspect to management of the company and to the
managerial role is known as planning. Planning is more or less necessary
consideration of implementation of attaining organization’s goals. The planning
procedures depend on the organization’s resource and resource material that shows
the inner strength of corporation.
Setting Goals
To implement the plan and planning of organization goals setting and targeting the
profit making stream is very important. Without proper path way and definite goals
a company cannot reach to its destination. So, change management has everything
to plan the right way of long term blueprint of enterprise and it’s depend on the
procedures of organization’s goals setting.
2.4 Convention of Nokia in Singapore:
At that event of convention, two new devices were announced by Nokia and these
are the Nokia X6 8GB and the Nokia X5, in addition with this showcase of Nokia
the gorgeous and high designed Nokia N8 was revealed for the first time in the
market of cell phone basically for the region of its customer to the media and the
analysts. N8 is high quality smart phone in the cell phone market. The aim of
Nokia is to satisfy a broad and wide range of customers over the world. Nokia is
becoming and continuing it’s growing up of market and it is to bring an affordable
and easy access to the communication of mobile. There are hundreds of millions of
people in the world using the Nokia as primary phone. Nokia is bringing smart
Strategic Management
phone in the market and its functionality and varieties to the mass customer market
easily and quickly and it is more and more affordably.
2.5 Nokia’s change of connecting people:
Nokia’s great slogan is “Connecting with people” that connect people wherever
they are. The consumers of Nokia are worldwide and it has great varieties of
products in diversified market. Recently Nokia unveiled and released a new device
and product for its customers, and of them Nokia N series products including the
Nokia N8 are high demanded products. Nokia has to follow some rules that
should help the company to reach its destination. At the very beginning of business
and creation of company existence there are certain goals and objectives have to
set. The target makes the organization to reach its destination and to reach that
organization’s targets company management is very important thing which must
need to be proper and accurate. AT the very beginning of time and recently Nokia
held a Convention which is in Singapore. In that convention Nokia renewed and
rectified its commitment and promises of determination to serve and deliver the
great deal of experiences to their customers with its new and latest range of
products and promotions. Nokia convention has been held basically to renew its
commitment and given promises to its loyal customer.
2.6 Principles of Nokia’s change management:
1. Change management takes place generally in organization’s movement of
current operations and management change requires for business
transformation from current position of enterprise.
2. Change management requires understanding of business and knowing the
perspectives better from different point of view.
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3. To bring a change in the organization targeting the new goals is necessarily
needed and setting of rules and procedures to follow the rules should be
clearly identified.
2.7 Renewal of Nokia’s Commitment:
Nokia is bringing smart phone in the market and its functionality and varieties to
the mass customer market easily and quickly and it is more and more affordably.
Among all smart phones Nokia N8 is one of the first smart phone which is a device
for the people want to create and enjoy the contents of N series that are really
amazing. Nokia N8 has TV programmers’ and Ovi Store apps. Nokia N8 has great
stores of music player which has great entrance to the thousands of songs and
movies and has an IMS which is also known as integrated messaging service for
the business connectivity and social networking advantage. Nokia N8 is new
device of cell phone which has lots of functions and latest updates. Nokia has
increasing market trend and the overall market share of Nokia is around 50% based
on the survey information of 2009. At that event of convention, two new devices
were announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in
addition with this showcase of Nokia the gorgeous and high designed Nokia N8
was revealed for the first time in the market of cell phone basically for the region
of its customer to the media and the analysts.
Strategic Management
3.1 Successful change Strategy of Nokia:
To bring the success in organization’s change and change of management there are some important considerations need to follow.
1. Increase of company urgency that indicates an increase of company urgency needs to inspire of people and inspiration to move forward and to make goals realistic, accurate and relevant to company mission.
2. Building of the guiding forums that manage team: Building of the guiding forums that manage team is necessary to get the accurate and right people those who are really accepted by human resource manager, the right people should incorporate in place with necessary right and relevant commitments to organization.
3. Getting of the right and accurate company vision: Getting of the right and accurate company vision is necessary to get the perfect team to implement and to get the reach of destination to a simple organizational vision that focus on strategy and strategically change of management for service excellence and management efficiency.
4. Communication of buying: Communication of buying basically involve many people according to the as many it is possible. Communication of buying also includes communication of the requirements and people's needs or wants.
5. Empowerment of action: Empowerment of action includes removal of obstacles, enabling of constructive and right way of accurate feedback and lots of justified supports are needed from leaders
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6. Short term success for long term goals: Short term success for long term goals includes setting of aim which is perfect and easy to take and attain.
7. Making of management change strictly: Making of management change strictly includes reinforcing of the value adding of path way and an implemented successful organizational change by effective recruitment policy, promotional activities, and changing of management.
3.2 Assessment of Competitive Environment:
One of important key of aspect to management of the company Nokia is assessing
competitive environment. And to the managerial role is known as environment
analysis. Environment analysis is more or less necessary consideration of
implementation of attaining organization’s goals. The planning procedures depend
on the organization’s resource and resource material that shows the inner strength
of corporation. To implement the plan and planning of organization goals setting
and targeting the profit making stream is very important. Without proper path way
and definite goals a company cannot reach to its destination. So, change
management has everything to plan the right way of long term blueprint of
enterprise and it’s depend on the procedures of organization’s goals setting. As part
of assessing competitive environment Nokia renewed and rectified its commitment
and promises of determination to serve and deliver the great deal of experiences to
their customers with its new and latest range of products and promotions. Nokia
convention has been held basically to renew its commitment and given promises to
its loyal customer.
Strategic Management
3.3 Considerations in Assessing Competitive Environment:
Political Analysis
Political instability
Risk of invasion to military
Favorable trading partner
Laws of anti trust
Pricing strategies and regulation
Taxation and increase of tax rates and incentive
Economic Analysis
Different types of economic systems and ways in operating countries.
Government intervention in the economic market and in the free market
Comparatives advantage of hosting country
Efficiencies in financial market
Unemployment rates and increase of literacy rate
Inflation and increase of rate
Increase of interest rate
Social Analysis
Demographic of customer
Class and wealth structure
Education and literacy rate
Culture and customs
Spirit of entrepreneurial ship
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Technological Analysis
Technological impact on products offering
Impact on organization cost structure
Impacts on value chain structures
Rates of technological diffusions
3.4 Process of Competitive Strategy and Method of Assessment:
Process of Competitive Strategy and Method of Assessment depends on business
development and business development driven change that requires effective
management policy and business change of management hierarchy. The activities
of department also change with the change of business development.
Sales growth of the company and its development
Innovation of new product and development of business
Market segmentation and development of new market
Development of business by developing the organization, organizational rules
and regulations, organizational structure change and processes development of
company.
Change of people of company, change of management process and increasing
the communications within the organization through better training program.
Change of strategy and strategic partnership agreement and channels of
distribution and supply chain management.
Company internal development
Change of disposals and acquisitions.
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3.7 Strategic Transformation of Nokia:
Strategic transformation of Nokia brings the company more affluent in grasping
market share of cell phone. The target makes the organization to reach its
destination and to reach that organization’s targets company management is very
important thing which must need to be proper and accurate. Nokia N8 is new
device of cell phone which has lots of functions and latest updates. Nokia has
increasing market trend and the overall market share of Nokia is around 50% based
on the survey information of 2009. Nokia’s great slogan is “Connecting with
people” that connect people wherever they are. The consumers of Nokia are
worldwide and it has great varieties of products in diversified market. Business
change and its transformation can be considered as a compliment of change
management and strategy for managerial change in the company that can aim to
business change of aligning People, operations, operational activities and business
process and technological change of the company. Recently Nokia unveiled and
released a new device and product for its customers, and of them Nokia N series
products including the Nokia N8 are high demanded products. So, business
transformation has an influential impact on industry life cycle as well. In modern
world Nokia’s business transformation of business is becoming a more important
to look at. Business transformation starts from the change of organization
objectives and cause of manage change to organization. The organization has to
follow some rules that should help the company to reach its destination. At the
very beginning of business and creation of company existence there are certain
goals and objectives have to set.
Strategic Management
3.8 Key Elements of Nokia’s Business Transformation:
The key elements of Nokia’s business transformation include some important
considerations that lead the company to help in managerial change and business
development.
Planning of long term achievement.
Better strategic visions
Specified and detail plan
Focusing on detailed plan to establish and measure the delivery of timely action.
Establishing of the forum in the business enterprise.
Empowerment of the people for making important decisions in business level
Establishment of a successful and good practice of culture and company ethics.
Active team empowerment and team working.
Using of workshop to get better training.
Adjustment in recruitment policy.
3.9 Evaluation of Nokia’s Transformational Change:
In the evaluation of Nokia’s Transformational Change includes Nokia’s change
management that takes place generally in organization’s movement of current
operations and management change requires for business transformation from
current position of enterprise and Nokia’s change management that requires
understanding of business and knowing the perspectives better from different point
of view. Nokia as a company, it’s a growing company which is in at maturity
Strategic Management
position of its life cycle. The competition among the cell phone industry is
becoming more competitive and high competition makes the world to be
globalized and so today’s business world has become more improved and
developed. The target makes the organization to reach its destination and to reach
that organization’s targets company management is very important thing which
must need to be proper and accurate. And thus now the world business market is
very and tremendously competitive. The organization has to follow some rules that
should help the company to reach its destination. At the very beginning of business
and creation of company existence there are certain goals and objectives have to
set. So to bring an overall change in the organization targeting the new goals is
necessarily needed and setting of rules and procedures to follow the rules should be
clearly identified.
At a project level, six key considerations are:
Focusing on benefits
Resourcing and outsourcing
Expanding, developing and learning
Sustainability of business
Skilled workforce
Production process
4.1 Value Chain Process of Nokia:
Value chain of Nokia includes two types’ activities and these are primary activities
and the supportive activities. In the primary activities the considerable ingredient
are inbound logistics, operations, the logistics of outbound, the sales promotion and
marketing process with proper plan and the last thing to consider is services. Nokia
N8 has TV programmers’ and Ovi Store apps. Nokia N8 has great stores of music
Strategic Management
player which has great entrance to the thousands of songs and movies and has an
IMS which is also known as integrated messaging service for the business
connectivity and social networking advantage. Nokia N8 is new device of cell
phone which has lots of functions and latest updates. Nokia is bringing smart
phone in the market and its functionality and varieties to the mass customer market
easily and quickly and it is more and more affordably. Among all smart phones
Nokia N8 is one of the first smart phone which is a device for the people want to
create and enjoy the contents of N series that are really amazing. The value chain
of Nokia deals with the creation of value with better services to its loyal customers.
4.2 Porter's Value Chain:
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According to Porter, the value chain includes some particular things and these are
categorized into different parts, according to porter the primary activities are:
Primary Activities:
1. Inbound Logistic.
2. Business operation.
3. Outbound Logistic.
4. Marketing and Sales of promotional activities
5. Services
Secondary activities:
1. Procurement of raw materials
2. Human Resource management process
3. Technological Development and
4. Infrastructure of organization
4.3 Competitive Advantages:
Competitive Advantages includes Competitive strategies, Differentiation
strategy, Cost management Leadership, Differentiation on Focus, Cost on
Focus. These all are crucially important in case of gaining competitive
advantages.
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4.4 Nokia’s Competitive Advantages:
Nokia has great competitive advantage in the market because of its differentiation
policy that is spread to worldwide. Among all smart phones Nokia N8 is one of the
first smart phone which is a device for the people want to create and enjoy the
contents of N series that are really amazing. Nokia’s strategy basically the strategic
plan for the company is a long term plan of business and long term way to achieve
and attain some specific goals or objectives and to reach the target of the business.
Nokia N8 has TV programmers’ and Ovi Store apps. Strategic change is the need
for the organization’s further development and progressive pathway of
organization’s success. The success of the company is totally depending on the
strategy of management and managerial decision of the company. Nokia N8 has
great stores of music player which has great entrance to the thousands of songs and
movies and has an IMS which is also known as integrated messaging service for
the business connectivity and social networking advantage. The short term strategy
is really important for gaining the long term strategy of company. Strategies are
based on the company objectives and generally focus on the near future of
company to bring the change of organization and to cope up with the success of
corporation.
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4.5 Factors of Competitive Advantages:
Competitive position of business market sharing advantages
Competitive Strategies
Differentiation strategy
Cost management Leadership
Differentiation on Focus
Cost on Focus
4.6 Corporate Strategies of Nokia:
The corporate strategies of Nokia depend on the management process of the
company. From the source of information Nokia has approximately 50% market
share which are under control of Nokia Company. Nokia’s great slogan is
“Connecting with people” that connect people wherever they are. The consumers
of Nokia are worldwide and it has great varieties of products in diversified market.
Recently Nokia unveiled and released a new device and product for its customers,
and of them Nokia N series products including the Nokia N8 are high demanded
products. These growth of Nokia is the overcome of Nokia’s better corporate
strategy.
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4.7 Comparison of Corporate Strategies with Apple:
Nokia has better sales growth of the company and its development. Nokia’s
Change of strategy and strategic partnership agreement and channels of
distribution and supply chain management is very efficient. Nokia as a company
has internal development. Nokia’s change of disposals and acquisitions are very
effective comparing with Apple. Nokia has innovation of new product and
development of business. The market segmentation and development of new
market creates lots of opportunity to grasp the customer by attracting them with
Nokia’s great sorts and models of cell phone design. The development of business
by developing the organization, organizational rules and regulations,
organizational structure change and processes development of company and the
change of people of company, change of management process and increasing the
communications within the organization through better training program makes
Nokia to run the business in sitting down on the consumer market.
5.1 Joint Venture:
Joint venture is basically the agreement of contract which is called also contractual
agreement and this contractual agreement lies between the parties who are joined
together in doing the business. The joint venture has lots of benefits because it
creates the synergy in company valuation. This is the purpose of doing the
undertakings of company by the large company. It enhances the growth of
company market share and utilizes the full resources that are remained unused.
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5.2 Failure Strategies of Nokia:
Failure strategies are those strategies which fails the company to reach the target
market. To reach the target markets there are lots of research needs to accomplish
because everything depend on customer satisfaction.
5.3 Consolidation and Recovery Strategy:
Consolidation and recovery strategies include an increase of company urgency that
increase of company urgency needs to inspire of people and inspiration to move
forward and to make goals realistic, accurate and relevant to company mission.
Communication of buying indicates the communication by buying that basically
involves many people according to the as many it is possible. Communication of
buying also includes communication of the requirements and people's needs or
Strategic Management
wants, Empowerment of action that exerts empowerment of action includes
removal of obstacles, enabling of constructive and right way of accurate feedback
and lots of justified supports are needed from leaders. So, for Short term success
for long term goals includes setting of aim which is perfect and it helps in building
of the guiding forums that manage team which is necessary to get the accurate and
right people those who are really accepted by human resource manager, the right
people should incorporate in place with necessary right and relevant commitments
to organization.
Strategic Management
5.4 Inertia and Overcoming of Resistance:
Basically inertia is the motion change that creates resistance physical objects. In
case of Nokia, the inertia can come from high risk of diversified market. The aim
of Nokia is to satisfy a broad and wide range of customers over the world. And so
by diversification of resource and investment Nokia can take a good opportunity to
overcome the resistance. Nokia is becoming and continuing it’s growing up of
market and it is to bring an affordable and easy access to the communication of
mobile. Nokia convention has been held basically to renew its commitment and
given promises to its loyal customer. The consumers of Nokia are worldwide and it
has great varieties of products in diversified market. Nokia is becoming and
continuing it’s growing up of market and it is to bring an affordable and easy
access to the communication of mobile. There are hundreds of millions of people
in the world using the Nokia as primary phone. Recently Nokia unveiled and
released a new device and product for its customers, and of them Nokia N series
products including the Nokia N8 are high demanded products. AT the very
beginning of time and recently Nokia held a Convention which is in Singapore. In
that convention Nokia renewed and rectified its commitment and promises of
determination to serve and deliver the great deal of experiences to their customers
with its new and latest range of products and promotions. N8 is high quality smart
phone in the cell phone market. At that event of convention, two new devices were
announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in
addition with this showcase of Nokia the gorgeous and high designed Nokia N8
was revealed for the first time in the market of cell phone basically for the region
of its customer to the media and the analysts.
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Current Situation of Nokia:
5.5 Suggested Strategy for Nokia:
To improve the market situation Nokia needs to have some suggested strategies.
Getting of the right and accurate company vision that can create an opportunity for
Nokia of getting of the right and accurate company vision is necessary to get the
perfect team to implement and to get the reach of destination to a simple
organizational vision that focus on strategy and strategically change of
management for service excellence and management efficiency. Overall condition
can be improved if Nokia takes the perfect decision in perfect time because timing
is most important thing without which a market of product can fail to reach the
customer.
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6.1 Conclusion:
Finally, it can be conclude that the corporate strategies of Nokia depend on the
management process of the company is currently facing some problems but it will
take little time to overcome from that situation. From the source of information
Nokia has approximately 50% market share which are under control of Nokia
Company. However, Nokia has great competitive advantage in the market because
of its differentiation policy that is spread to worldwide. Among all smart phones
Nokia N8 is one of the first smart phone which is a device for the people want to
create and enjoy the contents of N series that are really amazing. Nokia can start
the joint venture which has lots of benefits because it creates the synergy in
company valuation. This is the purpose of doing the undertakings of company by
the large company.
Strategic Management
REFERENCES & BIBLIOGRAPHY
L. Morgan, & D. C, Band, ridge, (Eds.), Strategic management (pp. 49-
64).Greenwich publishing
Marshal, P. J. (1999), Management strategies in organization, 44-56, Morgan, G.
(1989)
S. Morgan, F., Croat, L J., & Puny, K. R. (1989), Business transformation strategy,
(pp. 3-35), Greenwich, CT: JAI Press.
Davidic, K. F, Evans, N., & Tyler, R, (1986), Competitive business strategy, 32-37,
Greenwich publishing
Philip Kotlar, Marketing Management, 4 th edition.
Official website of Nokia (www.nokia.com )
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