Essays on Organizational Changes at Nokia Company Case Study

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The paper 'Organizational Changes at Nokia Company " is an outstanding example of a management case study. Changes in organizations are part and parcel of the day to day running of the organization. It may involve the change in the strategies the organization employs or change in employers and the management team. Causes of changes within an organization vary from technology, competitors, need to improve processes to government regulations and desire for growth (Joseph, 2014). Organizational change has an impact on the whole organization and it is thus important for organizations to ensure that they employ the right strategies during such changes in order to minimize resistance.

This paper discusses the organizational changes that have occurred at Nokia, one of the largest mobile phone makers in the world and analyses the various factors that the outcome of the changes was successful. Background information The Nokia Company was founded in 1865 and is based in Finland (Myers, Hulks and Wiggins, 2011). The company initially dealt in the manufacture of paper and paper products which utilized the vast forests available in Finland. The company dealt in paper products up to the 1960s when the company directors realized that the company was stagnating and that if it were to start growing, it hard to expand beyond the Finish boarders.

The Finish government saw it fit for Nokia to merge with two other companies that were underperforming and this merger saw Nokia start dealing in other products such as tires, electronics and Wellington boots (Myers, Hulks and Wiggins, 2011). Despite diversifying into other industries, the domestic market formed the largest consumer base of the products Nokia Produce.

The Soviet Union formed the main foreign market for Nokia products and the company traded its paper products for Soviet oil. The relationship between these countries was a good one given the neutral standard of Finland in World War II. The oil crisis that hit the world in 1973 saw the prices of oil rise dramatically and Nokia and other Finish companies that heavily relied on the Soviet Union had to re-strategies since there purchasing power had been reduced drastically (Myers, Hulks and Wiggins, 2011). The company directors decided to focus on electronic production and in 1975, the newly appointed CEO, Kari Kairamo, initiated one of the major organizational changes.

The company went out to acquire a number of companies and assets in their quest to expand beyond Finland and even become one of the world largest electronics producers. It acquired a number of Electronics Company in the Scandinavian region in the 1980s and this saw the company’ s revenue increase significantly. The company’ s management was restructured in 1986 with its 11 units being cut down to 4 industry segments.

One of the industry segments was the telecommunication industry and within the same year, Nokia decided to venture into mobile telephone making. The telephones became the company’ s first product to be marketed under the brand name Nokia (Myers, Hulks and Wiggins, 2011). In 1992, the company underwent a crucial strategic change. Diversification had resulted in the company’ s stagnation and the newly appointed CEO, Ollila, saw it fit for the company to only concentrate on one industry segment. This saw the company sell all its other businesses and concentrate on the telecommunication industry.

This change also saw the company acquire a major telecommunication company named Technophone and this made Nokia one of the first producers of digital phones (Myers, Hulks and Wiggins, 2011).

References

Ando, R. & Rigby, B. (2014).Microsoft swallows nokia's phone business for $7.2 billion. [online] Retrieved from: http://www.reuters.com/article/2013/09/03/us-microsoft-nokia-idUSBRE98202V20130903 [Accessed: 3 Mar 2014].

Gratton, L. G. (2014). Case study - nokiaorganisational change - maemo.org - talk. [online] Retrieved from: http://talk.maemo.org/showthread.php?t=42435 [Accessed: 3 Mar 2014].

Joseph, C. (2014). Factors that may cause change in an organization. [online] Retrieved from: http://smallbusiness.chron.com/factors-may-cause-change-organization-203.html [Accessed: 3 Mar 2014].

Lewis, L. K. (2011). Organizational change.Chichester, West Sussex: Wiley-Blackwell.

Myers, P., Hulks, S. & Wiggins, L. (2012).Organizational change. Oxford: Oxford University Press.

Pierce J. L, Gardener D. G, and Dunham R. B (2002). Managing organizational change and development. Management and organizational Behavior: An integrated perspective. Chapter 18: pp. 627-654. Cincinnati, OH. South-Western College Publishing.

Townsend, M. (2014).Success factors for lasting change: white papers & articles: resource center: corporate education group. [online] Retrieved from: http://www.corpedgroup.com/resources/ml/SuccessFactors.asp [Accessed: 3 Mar 2014].

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