A strategic analysis of Nokia
-
Upload
ioannis-pertsinis -
Category
Business
-
view
4.479 -
download
0
Transcript of A strategic analysis of Nokia
National Technical University of Athens – Athens University of Economics and Business
AthensMBA
Working Team: Professor:
Deligiannis George Dr. Lioukas Spyridon
Pertsinis Ioannis
Rihani Michael
Vitsios Efstratios
NOKIA
Nokia CorporationNokia Corporation is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area.
Nokia Leadership Team
Chairman – Risto Siilaasma
President and CEO – Rajeev Suri
CFO – Timo Ihamuotila
Revenue: €23.22 billion (2015)
Operating income: €5.453 billion (2015)
Profit: €1.68 billion (2015)
Total assets: €45.06 billion (2015)
Total equity: €9.44 billion (2015)
Number of employees: 114,256
• Internet of Things (IoT)• Ultra Broadband• Cloud• Digital Health
• Virtual Reality• IP interconnectivity• Innovation Ecosystem• Services
What Nokia does
NOKIA
Identity
Nokia is a global leader in creating the technologies at the heart of our connected world.
Activities
Innovators of the global nervous system: the evolution of networks into a seamless fabric of interconnected intelligence supporting our digital lives.
Sustainability
Nokia invents, designs, and deploys sustainable technologies that make a real difference in the lives of people.
Innovation and Possibilities
NOKIA
History
1865-1967
1967-1982
1983-2000
2000-2014
2014-present
• Foundation of Nokia
• Forest and power industry
• Manufacturing telephones, electrical
cables and rubber products
• Creation of Nokia Corporation (1967)
• Military equipment
• Mobile radios, telephone switches, capacitors,
chemicals and personal computers
• Launching of Mobira Senator car phone –
NOKIA’S FIRST MOBILE PHONE (1982)
• Pioneer of mobile gaming (Snake)
• Creation of best selling phone of all time (Nokia 1100 – 2003)
• Creation of Symbian
• Loss of market share due to iPhone (iOS) and Android
• Stock price fell below 2 dollars, almost became bankrupt (2012)
• NOKIA purchased Siemens stake in NOKIA-SIEMENS Networks (2013)
• Acquisition of NOKIA’s mobile devices unit by Microsoft (2014)
• Mobira Cityman 900 – FIRST FULLY PORTABLE
MOBILE PHONE (1987)
• Development of GSM Mobile Standard (with Siemens)
• World's First GSM Call using NOKIA’s equipment (1991)
• World’s First commercially available mobile phone
(NOKIA1011 - 1992)
• Best selling Mobile phone brand (1998)
• Acquisition of Alcatel Lucent –
16.5bn (2015)
• Sale of HERE Maps to a car
company consortium for 2,8bn
• the Digital Health unit was founded
(Withings acquisition – 2016)
• HMD Global and NOKIA
Technologies will create NOKIA
branding devices (2016)
NOKIA
Innovators of the global nervous system
Internet of Things (IoT)Enabling the Internet of Things, with massive-scale, secure and low-energy connectivity for billions of devices.
Ultra broadbandPioneering ultra broadband solutions to deliver lightning-fast wireless and fixed broadband access, anywhere, making the maximum use of existing assets.
CloudConnecting society to the cloud, combining virtualization, intelligent analytics and orchestration to build programmable, performance-optimized networks that dynamically adapt.
Digital HealthInspiring individuals to take control of their health for the benefit of society through digital health technology.
Virtual RealityPioneering transformative experiences through immersive VR technology.
Innovation EcosystemHelp individuals, communities and industries create a better future.
IP ConnectivityCreating the high-performing IP networks that underpin the digital world, enabling customers to reduce time and risk in launching new services, and rapidly scale to meet demand.
ServicesHelping customers to transform to new technologies and new business models, through professional services spanning consulting, designing, planning, implementing and operating.
NOKIA
Nokia is everywhere
Headquarters (Espoo Finland)
USAMexicoCanada
ArgentinaBrazilColumbiaCosta Rica, etc.
FranceGermanyItalyUK, etc .
AlgeriaTunisiaSouth Africa, etc .
RussiaBalkans, etc.
UAEQatarIsrael, etc.
ChinaIndiaJapan, etc.
AustraliaNew ZeaIandIndonesia, etc.
“
NOKIA
Analysis of external and internal environment
NOKIA
Analysis of External EnviromentPESTEL ANALYSIS
PESTEL
Legal
Political
Economic
Social
Technological
Environmental
NOKIA
PESTELPolitical Factors
◎Every country has its own rules and regulations
◎NOKIA had to stop its business in some cases due to strict regulations
◎Taxation policy, government stability and employment laws varies from country to country
◎In some countries NOKIA has to follow minimum wage laws (i.e. India)
◎Awaiting developments following the results of US Elections (Trump’s victory)
NOKIA
PESTELEconomical Factors
◎NOKIA leaves great impact on the economy of Finland
◎Finland’s government helps NOKIA to secure the jobs of the workers
◎The consistent change of the exchange rates across the world affects the business
◎The recession on the global economy and the bad economic situation have a negative
influence on the interest rates
◎Increase of the borrowing amount from the banks in order to carry out business activities
NOKIA
PESTELSocial Factors
◎NOKIA has to understand the new trends in the market
◎Technological developments are made quickly in the European markets
◎The company has to understand the nature of people (i.e. some people need innovative
features while some other are looking for a simple and inexpensive solution)
◎Better understanding of the emerging markets’ culture is crucial in order the company to
meet their demand
NOKIA
PESTELTechnological Factors
◎Various other competitors are introducing new handsets with latest technological developments
◎Improvement of the quality of internet, camera, e-mail, call record is essential for NOKIA
◎Partnership of Microsoft increased the trust of the clients
◎New technologies leave their impact on minimizing costs
◎Need of new technological developments on online gambling, MP3 players and high definitions TVs
NOKIA
PESTELEnvironmental Factors
◎Moral obligation to deal with the issue of global warming
◎The company should take care while disposing phones, accessories and lithium batteries in order to ensure safety and protection of the atmosphere
◎Globally the rules and the regulations about environmental consciousness has become more strict
NOKIA
PESTELLegal Factors
◎NOKIA should protect its products and new technologies with patent applications
◎Avoidance of copying ideals of features of other companies
◎Ascertain that various plants follow the working rules and regulations and nothing is happening against the law
◎NOKIA should give proper attention to the privacy of its customers
NOKIA
5 Forces Analysis (PORTER)
Barriers to entry Power of buyers
Threat of SubstitutesPower of suppliers
Rivalry between
Competitors
NOKIA
•Secure Patents•Strong brand identity of existing players•High expected retaliation•High capital requirements (high R&D, marketing and PR costs, etc.)
Barriers to entry
• Increased buyers volume•Buyers now have more options due to increased number of competitors (Apple,
Samsung, Google, etc.)Power of buyers
•Low buyer inclination to substitute•High price – performance ratioThreat of substitutes
•Low bargaining power•High differentiation of inputs•Low switching costs
Power of suppliers
•Strong brand identity•Low product differentiation•Entry of companies from emerging countries
Rivalry between Competitors
5 Forces Analysis (PORTER)
NOKIA
Consumer Market Segmentation
ProductsDeveloped Economies Emerging Markets Undeveloped Economies
Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers
Entry level mobile phones
Mid range smartphones
High end smartphones
Tablets
VR Cameras
Internet of Things
Cloud Services
Digital Health
Mobile OS & Apps
Digital Maps
Large Markets with high penetration opportunities
Large Markets with moderate penetration opportunities
Markets with low penetration opportunities
NOKIA
Major Accounts Market Segmentation
ProductsDeveloped Economies Emerging Markets Undeveloped Economies
Governments Enterprises Governments Enterprises Governments Enterprises
Broadband Networks(3G/4G/5G) 5G 5G 5G 5G 3G/4G 3G/4G 3G/4G 3G/4G 3G 3G 3G 3G
Cloud Services
Fixed Networks
Network Security
Internet of Things
Markets with high penetration opportunities High investment opportunities
Markets with low penetration opportunities Moderate investment opportunities
Low investment opportunities
NOKIA
Critical Success Factors (CSF)
Function Key Success Factors
Multinational Data Networks
• Economies of scale
• International marketing
• Network coverage
Telecommunications equipment• After sales support
• Seminars for the customers
Phones and Tablets
• Brand awareness
• Development of applications and
emphasis of operating systems
• Good price-quality ratio
Innovation technologies
• Strong R&D department
• Strong added value of new
technologies for the customer
NOKIA
ConclusionAnalysis of External Environment
◎Moderate industry’s attractiveness
High growth rates Innovation and knowledge-intensive activities High competitor’s strength High investment demand
◎Opportunities
Penetration in undeveloped-emerging markets 5G data networks in Western Europe, USA, etc. Development of technologies regarding digital health application and hardware IoT creates great potential
◎Need for critical strategic decisions
Alliances, distribution center, etc. Economies of scale
NOKIA
SWOT Analysis
SWOT
Strengths• Brand Name
• Experience in changes
• High Expertise
• Global Presence
• Quality
Threats• Major Competitors
• Unstable geopolitical
environment
• Dependent on a
limited number of
customers (Network
Infrastructure sector)
Opportunities• IoT, 5G, Wireline
Networks
• Increase of Mobile and
Data Users
• New Technologies
• Introduce products in
the newly emerging
markets
Weaknesses• High borrowing
• Poor Customer Service
• Huge loss of mobile
phone market share
• High price in some
products
NOKIA
Strengths
◎Nokia has a well known brand name that has huge impact on technological world
◎Huge experience in turnover strategies
◎Global presence (about 150 countries)
◎Acquisition of Withings will be a huge asset in the sector of Digital Health
◎Strong strategic advantage in wireless and wireline services after the acquisition of Alcatel
Lucent
◎Highly qualified personnel
NOKIA
Weaknesses
◎Criticism for poor customer support and sales services
◎High long-term interest-bearing liabilities and short-term borrowings
◎Recovering after huge mobile devices/operating system failure
◎The company took long time to enter in mobile phone market and it has lost huge market
share
◎Concern for employees and public image not clearly stated
NOKIA
Opportunities
◎Mobile users will be more than 9bn in 2020, and mobile data users will be over 4bn by the
same time
◎Cloud computing is expected to be massive by 2020. According to todays data Cloud
computing generate more than $45bn.
◎Nokia share price is around 4.33$ (27/11/2016) and considered very attractive for the
investors.
◎ETA Devices acquisition targets to improve battery efficiency and considered as a core
project for NOKIA
◎Nakina acquisition targets to enhance Network and Cyber security (due to researches, the
number of Hackers will be at an all time high by 2020)
◎The company can introduce its products in the newly emerging markets
NOKIA
Threats
◎The rivalry between competitors will be massive in all respective sectors
◎Many technological giants
◎Unstable economical and geopolitical environment
◎Environmental rules and regulations
◎Dependent on a limited number of customers and large multi-year agreements (Network
Infrastructure sector)
◎Possibility of unsuccessful implantation of new strategic plans
NOKIA
ConclusionSWOT Analysis
◎ Nokia’s biggest strength is the culture
◎ An organization with long history which knows how to escape from difficult decisions and survive
◎ Lot of opportunities to increase the earnings from the new strategy about new technologies
◎ Cloud and IoT is the future if aren’t the present
◎ Preservative investments in startups like Withings or Nakana systems which means low price acquisition with high ROI
◎ Selective investments in colossus like Alcatel Lucent
◎ The vision is a hard issue. We don’t know if the organization could understand fully the vision of new Nokia.
◎ Nokia tries to create an easier way of life. Finally in a liquid market battlefield is very difficult to recondition the strategy plan immediately and be the leader.
“
NOKIA
Strategic Position Analysis
NOKIA
Shaping the future of technology
To expand the human possibilities of
the connected world
Example: Leading in Optical Network
infrastructure optimized by and for the
Cloud (400GB to 1TB transport)
Example: NPS (Net Promoters
Score), Geographical Network
Coverage
Help the customers to capitalize
on the opportunities from an
industry in transition
Example: Convergence of
disparate Network technologies
Example: Network performance
and simplicity index of
Networking Services
“
NOKIA
“Shaping the future of technology”Nokia is shaping the technologies at the heart of our connected world,to transform the human experience
Mission statement
“
NOKIA
“To expand the human possibilities of the connected world”
At Nokia, we are shaping the future of technology to transform the human experience.
Vision
“
NOKIAhttps://www.youtube.com/watch?v=R5nxfkDzZUA
NOKIA
Objectives
Leading in network infrastructure, converging mobile, fixed, IP and optical networks, optimized by and for the Cloud
Expanding in adjacencies and gaining software leadership for network optimization, service innovation, and customer experience enhancement
Diversifying by providing network performance and flexibility for large-scale enterprises
Leveraging new business opportunities created through the Internet of Things
All the use cases outlined above will provide opportunities for new business models and create new pockets of revenue growth for network vendors
“
NOKIAhttps://www.youtube.com/watch?v=GoJOZOnJaMc
NOKIA
Strategy
“Differentiation strategy with focus to innovation, new technologies, security and quality of service”
NOKIA
Tactics
Focus on social Networking and other Cloud – based Services that are increasingly accessed through mobile devices
Enhance Cloud – based applications and promote IoT Services and products in order to evolve the ongoing digitization of business processes as well as people’s lives
Take seriously into consideration the needs for enhanced network and application security and privacy to protect individuals, businesses, public services and national interests
Converge disparate Network technologies in order to enhance network performance and profitability and simplify networking services
Focus on open-source ecosystems through application programming interfaces ("APIs") in order to decouple from hardware.
NOKIA
Resources and Skills
Functions
R&D
Human Resources
Finance
Sales & Marketing
Production
After Sales Support
Resources and Skills /Easy to be Copied
Resources and Skills /Hard to be Copied
Constant renewal of technological equipmentVarious patent Applications, Geographical Diversity of IT Network, Bell Labs support
Specialized staff (IT), Unique Organizational culture, Specific technological environment,
The Finnish model of industrial relations (IR)
Net cash and other liquid assets almost 8bn dollars, Finnish Subsidy system for innovative companies
Global Presence, Brand Awareness, Variety of services
Innovative devices, Intellectual property
“Operations support system” as a service makes costs both lower and more predictable
Continuous Training, Easy access to R&D equipment
Recruitment, Management, Providing direction
Long term liabilities and borrowing, Strong Financial support for R&D
Broad advertisement and discount policy, In depth market segmentation
Trustworthy relationships with suppliers, Economies of scale, Outsourcing production
Personal consultant for enterprises, Online customer support
NOKIA
Dinstictive skills (KAY)
Key Capabilities
Relations Architecture
Reputation
Innovation
Strategic Elements
Discrete Elements
International & Domestic Public Relations, Relationships with staff, Relationships with carriers in the industry
High end technology, Quality products and services, Strong brand awareness
Highly skilled and specialized staff, Innovathons (Innovation Competition by Nokia Bell Labs)
Ownership of Bell Labs, Withings, Nakina, ETA System, Alcatel Lucent
NOKIA
Unique Elements
Bell Labs◎ Bell Labs, considered research arm, produces disruptive innovations for the next phase of human existence. This human challenge has
been the charter for Bell Labs for 90 years and led to a wealth of industry redefining innovations, eight Nobel Prizes and countless other honors.
◎ Bell Labs is pioneering the Future X projects, which are thirteen distinct new technology solutions―each of these aims to ensure that tomorrow’s networks will be high-performing, low-cost, efficient, personalized and always-on.
Withings◎ Making the most of innovation, technology and design, Withings invents smart products and apps that fit into any lifestyle that lets you
track what matters so you can improve you everyday well-being and aim for better long term health.◎ The mission is simple: For individuals and families to benefit from the connected heath revolution.
Patents and Alliances◎ Intellectual property assets are fundamental to Nokia, which now controls three distinct IP portfolios: the Nokia Networks, Alcatel
Lucent and Nokia Technologies portfolios. The first two are of particular relevance to the Networks business.◎ Nokia Networks portfolio includes approximately 10.000 individual patents, Alcatel Lucent Portfolio approximately 47.000 individual
patents◎ Alliance with HMD Global for the production of Nokia branded mobile devices
NOKIA
Stakeholders are those groups and people who are interest of business and organizational activities. Nokia is one of the largest companies, so its stakeholders are major part of Nokia Corporation.
Stakeholder needs and Expectation of Nokia:
External Stakeholders
Business Community
Internal Stakeholders
NOKIA
Internal Stakeholders
◎ Shareholders: Nokia always try to do better for them. Shareholders arrange the major part of capital for organization development as they part of owner of an organization. Shareholders receive share of profit, bonus, and dividend as well as reward. Its company policy to give them bonus share, dividend, premium share as they are feel secured to invest money more.
◎ Employees: Nokia regularly involve employees in discussions about issues such as corporate values, career and competence development, performance, diversity and work-life balance that's meet employee's need and expectations.
◎ Suppliers: Suppliers are very effective role for an organization. Nokia understand the important of them and try to meet their needs and expectation such as early payment, advanced payment, competitive value, communication regularity, preference of product etc.
NOKIA
External Stakeholders
◎Customers: Nokia increasingly engage with customers on issues related to sustainability. Network operators - Nokia's biggest customers - expect to meet high standards of corporate responsibility in their own operations and increasingly in their supply chain. Nokia continues to receive enquiries and assessment requests about social and environmental performance from their operator customers. Nokia respond to those requests through its normal customer account management interface.
◎Government: Nokia is operating their business in world wide. Nokia always obey the government rules and regulation and pay tax vat as per government rules. Nokia create a giant employment all over the world and it is a government basic expectation from a company.
◎Local Community: Nokia is always promised to help all kind of local community all around the world. Nokia sponsored for AIDS hospital, cancer hospital, all kinds of national game. Nokia sponsors many research collaborations with industrial and academic partners. Nokia's goal is to strengthen co-operation between researchers and academics.
◎Competitors: All companies in the industry are impacted by the way others conduct business. In many cases competitors also have a strong interest in your business when you target the same types of customers. Competitors may also be stakeholders in a similar way as your business partners regarding industry-wide promotions and lobbying efforts with governmental officials.
NOKIA
� Business Community
Nokia works in collaboration with other companies on key issues through a number of industry organizations, such as:
◎The Global eSustainability Initiative (GeSI): We participate in the Supply Chain Working Group, e-Waste Working Group and Climate Change Working Group.
◎International Chamber of Commerce (ICC)
◎World Business Council for Sustainable Development (WBCSD)
◎Bank and Insurance Company: Nokia always meet the expectations of bank and insurance company. They are taking loan from bank and investing money for other issue as well and paying interest.
◎Media: Nokia playing a vital role for increasing the media such as TV, newspaper, magazine and any other media. Nokia pays high rate of amount for promotion their product for advertisement with those media.
NOKIA
� Critical recourses and skills for StrategyS
uperior
1. Planning
2. Management
3. Expertise
4. Financial Position
5. Personnel
6. Specialized
Personnel
7. Marketing
8. Relations
Architecture
9. IT
10. Building
infrastructure
11. Cost of services
12. Innovation
Infe
rio
r
Less Important Critical
Specialized
Personnel /
Innovation
Relations
Architecture
Marketing
Devoted
Personnel
NOKIA
� Critical recourses and skills for Strategy
Le
ve
l o
f S
tre
ng
th
Level of Influence
High
HighLow
Low
Shareholders
& Banks
Government
& Local
Community
Customers &
SuppliersModerate strength,
very effective role
Generally passive
and little
involvement
High Strength and
Influence
Competitors
Media &
Councils
Low strength but
promotion is of high
interest
Great impact, High
level of strength
and influence
Future Projections
“
NOKIA
Alternative Strategies
NOKIA
Strategic DecisionsCreation of Alternatives
Basic StrategiesLow cost/ price
Diversification• Focus• Mixed
Alternative directionsStabilization• Penetration• Product Growth• Market Growth
Diversification• Correlated• Uncorrelated
Alternative methods• Organizational Growth• Acquisitions • Merges• Alliances• Consortium
Which base HowWhich direction
Porter Ansoff
NOKIA
Growth Rates and Attitudes to Risk
Existing Products New
New
Existing
Markets
NOKIA
Ansoff Matrix (Nokia 2016)
Take advantage of the latest acquisitions in order to enter in
new markets with new products in new distribution channels.
Alcatel Lucent and Withings is an example.
Growth by advertising in the existing distribution channels, via
digital advertisement.
By digital advertising Nokia could achieve a larger customer base.
Existing Products New
Markets
At this period Nokia is creating new products and services in order to
grow the product mix.
With continuous acquisitions Nokia is creating new distribution
channels in around the world. New
Existing
NOKIA
The analysis of Ansoff matrix helps Nokia to realize that if it remains in the existing market with existing products or try to grow in it, it’s possible to be a wrong strategic decision. By following
diversification strategy Nokia will create added value. Therefore Ansoff matrix does not work for Nokia’s example. The risk will be contained in diversification model (vertical & horizontal).
Strategy Evaluation
NOKIA
Nokia as an insurance data provider.
As the average age in all continents is increasing, weneed to have more facilities for the older people. Atthe same time, the health of these older people mustbe under monitoring and these people have to beactive parts of society.
In order to have good results in health care system,the premiums must be under regulations because ofits structure. The premiums aren’t representative ofthe cost of health services.
With this project the company is about to edit all thenecessary data to be an insurance contributor forevery individual citizen.
Alternative strategiesInsurance plan strategy
NOKIA
Alternative strategiesInsurance plan strategy
Using Digital Health Nokia could create a huge data center with statistics and results for the users of digital health accessories. These data will be analyzed with the service package of Ultra-Broadband(5G), Cloud services, IP Interconnectivity and Internet of Things.
◎Ultra-Broadband(5G) as a data transport system:5G broadband gives more choices to users of any hardware system. For example wearing a Withings watch, you can have real time data as blood pressure, or using the thermometer, temperature, saved automatically in a data center.
◎Cloud Services as a data center:Cloud services are an unlimited “hardware” storage system and helps to save data almost free on the web. By using wearables all the data would be collected to the “data center” which is the cloud.
NOKIA
Alternative strategiesInsurance plan strategy
◎ IP Interconnectivity as a secure provider: All data concerning health are highly secured. They must be transferred without human interruption. Furthermore, interconnectivity will help the applications to be more efficient.Finally using the IP interconnectivity, the important platform will be created in order to analyze all the data securely with the help of Nakana Systems.
◎ IoT as a self-driving system:IoT is the future of mobile devices. By the help of Withings, Nokia will have all the necessary real time data of any citizen. It can also predicts a disease problem like heart attack, saving that way the citizens life and at the same time helping insurance contributor from spending operating costs. Finally IoT do all the procedures automatically.
NOKIA
SFA Evaluation of Alternative Strategy
Suitability(S) Feasibility(F) Acceptability(A)
Strategic
Decision SWOT Culture Resources Skills Stakeholders Risk
Diversification
Acquisitions
Merges
Alliances
Consortium
Insurance plan
Alliances
*** **
** ***
*** **
*** **
*** ***** ***
*** **
*** ***
*** ****** ***
*** **
*** ***** ***
*** **
*** ***** ***
*** **
** **
*** **** ***** ***
NOKIA
Final Strategic Decisions
◎ Acquisitions: Proceeding to acquisitions may create problems because of the adaptation of new companies in the culture of Nokia. Furthermore, the fact that the candidate company could be bought from a Nokia’s competitor is a threat.
◎ Insurance plan:Insurance plan is a great opportunity for Nokia’s future strategy. Insurance plan is a low risk strategy because it will start, at the same time, that the services are in growth. Insurance plan fits perfectly with the culture of European Continent and is very close to stakeholders’ philosophy (high-end technology and health services).
NOKIA
Final Strategic Decisions
Suitability• Strategic rationale:• Research Indications:• Match with culture:;
Feasibility• Financial resources• Physical resources• Skills
Acceptability•Expectations• Management Objectives• Risks
76
Acquisition Insurance plan
8
9
7
9
8
9
9
9
8
9
10
10
9
8
8
10
9
8
Total SFA ranking 81
NOKIA
Final Strategic Decisions
Suitability external • PESTEL• 5 Forces
Feasibility internal
• Money
• Machinery
• Manpower
• Markets
• Materials
• Make up
Acceptability
•Financial aspect
• Stakeholders aspect
87
Acquisition Insurance plan
8
9
9
8
9
9
9
8
9
9
Total SFA ranking
6M Johnson and Scholes
89
8
10
9
8
9
9
9
8
9
10
NOKIA
Strategy evaluation with SFA and SFA 6M rankings
Insurance plan matches alternative strategy according to the SFA ranking system.
Our team believes that the market is almost ready for insurance plan and this could be achieved with the support of stakeholders. More than ever, technology can predict serious diseases and this will help not only Nokia but the whole society.
Investments, must be continuous, in the strategy of insurance plan. The last results of Q3 are moderate, and we believe that announcing an entrance to the Insurance sector, will attract more investors and help the stability and growth of Nokia’s share rate.
“
NOKIA
Implementation of Strategy
McKinsey 7s Framework
Hard Elements Required Changes Importance Difficulties
Strategy
Transparency
Alignment
Spreading
++
+
+++
+++
++
+++
-
+
+
Structure
Delegation of power
Horizontal structure
Networking
+++
++
++
+++
++
++
+
++
+
Systems
Budget
Information Systems
Business Analytics
Security
++
+
+
+
++
++
+++
+++
++
+
++
++
Essential Changes using 7s Framework (1)
Soft Elements Required
Changes
Importance Difficulties
Staff
Specialized executives
Motivation
+
+++
++
+++
+
+++
Skills
Training
Weaknesses
Synergies
+
++
+++
+++
+++
+++
++
+++
++
Style
Supportive Leadership
Develop leadership skills
+++
++
+++
+++
+++
+++
Shared Values
Consistency
Customer Oriented
Alignment with strategy
+++
++
+++
+++
+++
+++
+++
++
+++
Essential Changes using 7s Framework (2)
Strategy
Structure
Systems
Hard Soft
Relations
People
Purpose
Human-Oriented alternative approach (Ghoshal)
Change
Top Management
Mid-Senior Executives
Guidance Team
Vendors
Implementing new strategy: Parties involved
Parties involved
◎Top Management
The role of top management is crucial to the strategic change. It is very important to create a “Guidance Team”, which will be responsible to inspire and guide personnel throughout the change processes.
◎Vendors
Vendor selection has to be very careful, and the expertise and culture of the vendor has to be considered before conclude an agreement. It has to be clear that the vendor will act as an advisor and not as an executive.
◎Mid-Senior Executives
Middle managers are usually those who have the better understanding of the current culture of the organization and, in most cases, they can influence and inspire a large group of employees.
◎Guidance Team
“Guidance Team” will be the “cornerstone” of the change. They will be the link between top management and personnel of lower levels.
NOKIA
Change Plan
7S change actions:
◎ Transfer a Project Manager from core Nokia’s business in order to accomplish the Insurance Plan project and disseminates the shared values.
◎ Hiring an extra Sales Manager and extra staff for the new Health Insurance department.
◎ Hiring executives from the Health Insurance sector to inform and educate the team will occupy the Health project.
Requisites Sources:
Plan cost: €10millions (hiring, educated, new department cost)
Funding: Using available net cash
NOKIA
Change Plan
Priorities:◎ Select staff for the whole department◎ Create a business plan for the Health Insurance plan◎ Be in touch with Insurance companies◎ The acquisitions’ team have to continue its work, acquiring companies with high potential
Implementation:◎ Top management involvement and monitoring the progress of Project Managers.◎ Create a new trend inside the company and motivate innovation around Health Insurance Plan, using
human oriented leadership style.◎ The new department will be structured with staff which is engaged with Insurance Plan and will help
the creation of the business plan◎ The group does not need to hurry, so all operations must be done in a structured way.
Strategy
StructureSystems
Skills
Culture
Difficu
lty le
ve
l
Time Needed
Turnover difficulty to time
NOKIA
References
◎Hub pages, business and employment, business management and leadership 2012 www.hubpages.com◎UKessays, Analysis of mobile phone manufacturer NOKIA 2016 www.ukessays.com/essays/marketing◎Academic sample papers, Analysis of NOKIA 2015 www.bestessayservices.com◎Slideshare http://www.slideshare.net/◎University of Texas http://www.utd.edu/◎http://www.businessdictionary.com/◎Integrated differentiation cost leadership strategy https://www.translatum.gr◎«Οι τρεις γενικές στρατηγικές» http://www.bluewavemag.com/◎Διαμόρφωση στρατηγικής – Strategy Train http://st.merig.eu/◎The rise, dominance, and epic fall - a brief look at Nokia's history http://www.gsmarena.com/◎Statista – The portal for statistics https://www.statista.com/◎“How Did Nokia’s Networks Business Perform?” - http://marketrealist.com◎Profits plummet at Nokia Networks - http://telecoms.com/