The paper "Competitiveness of Nokia, Change Opportunities" is an outstanding example of a business assignment. It has come to the attention that there is a need to create changes in organizational management at Nokia for a number of reasons. One reason is that this company has relied on the older approach of mobile phone making by focusing on the hardware rather than the apps. This has not been the focus of many consumers and our competitors who have focused on improving the apps have overtaken our company significantly. This has contributed to low profitability and competitiveness of Nokia in the global market.
Another concern has been the bureaucracy in decision making in this company with a focus on traditional strategic management and decision making methods. Most decisions take too long to make and implement in this company compared with our competitors. Consequently, it has been necessary to review the policies of this company so that a better strategic management approach is used. Another concern has been the high rates of retrenchments experienced as a result of the low profitability of this company that resulted in its inability to pay employees.
There is the need to come up with a method that ensures the company makes enough profits to cater to the needs of employees and any cases of retrenchment are avoided. This company has also experienced stiff competition globally from other mobile phone manufacturers thus putting its profitability at risk. There has been the need to establish the strategic risk management approach which results in an assurance that the company will perform profitably irrespective of the level of competition. Consequently, a new plan for technology change and overall change in organizational management has been proposed.
This plan provides a recommendation of the methods in which various activities need to be managed so that the competitiveness of Nokia is improved in the global market and profitability is increased to the previous levels. Your approval of this memo will result in the implementation of the proposal. EVENT 2: The Report Change Opportunities How do macro forces impact on the organization? Macro forces have impacted the organization in a number of ways. The leadership culture has been based on preference for a Finnish CEO since the inception of the company.
Thus, conservative policies have been implemented that have prevented the company from embracing changes in technology and implementing them to improve the competitiveness of their mobile phones (Beech & MacIntosh, 2012). Another macro force that has impacted on the company is the focus on the product rather than the application for their mobile phones. Despite the preference of applications by customers, the company continued to manufacture mobile phones with traditional apps. This resulted in low demand for its mobile phones that impacted its profitability.
Thus, the company resorted to retrenchment due to its inability to pay its employees. Competitors of the company have also focused on the production of faster, cheaper handsets that pose great competition in the global market. This has greatly impacted the profitability of Nokia. In addition, there has been an emergence of stronger, successful competitors in the global market such as Apple, Samsung and LG. these competitors have produced mobile handsets that are more pleasant to use by customers, thus overtaking the demand for Nokia handsets.
This has also impacted on its profitability.
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