Case study of Nokia change
Identify and discuss the multidimensional external forces that brought changes to Monika. Ionians website explains the goal and mission of Monika as ‘To be technology leader In a world where everybody and everything Is connected’ The website also states Monika reinvented which explains for the fact that the company is gearing up to face the changes in the market. Change as defined in online dictionary as transfer from one to another (dictionary. Com, 2014). This transfer from one to another is not restricted to only one environment, it’s related to all spheres of mankind.
Surprisingly this change Is always seen In the business field. Porter defines that the business always needs to align its company goals to the market and achieve the competitive advantage. Further there are many theories which exemplify that external forces are necessarily determine whether the business has competitive advantage for thriving long term or not. Cannot and Kraal explain that the industries always go through the changes in the market and some changes are disruptive, irreversible.
These changes often include innovation, demand in customer expectation.
The multi-delusional changes in environment does not only Include the macro but also many other factors which contribute to the hanged faced by companies. Some of the studies Investigates whether the frequency of incremental and radical innovations may be explained by different mixes of environmental, organizational, processes, and managerial forces, and therefore may need to be managed differently.
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The porter’s five forces and other environmental scans may analyses these changes and also categorize them In bigger parameters. PEST Analysis for telecommunication Industry for wider view. Political: Monika operates In World and not one country. Hence the changes faced in world politics affects the whole many and also the industry. The world politics suffered a lot changes from the span of 2000 to 2010.
The war against some of the Middle East countries, Oil expense and Endemics like swine flu emerged.
These political changes may have had a little bit of change which affected the probable distribution of handsets to overall human population directly. However 011 expense and war may have had direct change on the considerable shift of profits In all these years. Economic: Amongst many economic shifts one of the biggest crisis which emerged was the collapse of US mortgage system which had effect on world economy and all industries. The industries felt downturn in the purchasing power in the hands and hence the industries had a lot of redundancy, closures in firms.
Somewhere this shift was not one of the main reasons of downturn of Monika but Ministry Ana to race a lot AT changes technologically. I nee possible accommodation AT cameras, MPH players and other technology which was to be carried by people was getting changed with the purchasing power. This shift of less purchasing power probably led to concentration on innovation of technology. Social: The societal news had in this century introduction to ‘phone which revolutionized the world. This brought people in different countries closer.
Technological: Amongst many technological facts which changed and effected company’s like Monika was the advent of smartness.
Amongst many other changes which turned around the world was Google. The company became a success so as to a point that ‘Google’ is a verse used for getting any information. They have multitude of services from photo sharing, to email support system, software development, computing and mobile operating system development, navigational mapping and so much more. These changes had a drastic effect on working of Monika.
The above changes in wider environment were aced by Monika which had direct or indirect impact on the working and strategic problems of company. The industrial scanning which effected company have been scrutinized in this section. The porter’s five forces analysis shows how the company is effected with industrial forces acting in the industry. This analysis narrows down the environment and scans it further. Source: Google.
Com, 2014 Bargaining power of suppliers: Monika is surrounded by the different kind of suppliers which are spread across globe and mainly in china.
The pressure to save more from cost allows china as only country providing technology products at such cheap rates. Further the bargaining power of supplier’s increases when the place supplying goods is one to most of the telecommunication companies. Bargaining power of customers: Bargaining power of customers is low in this Industry because the other forces like innovation and cost determine the price of a product. However the company’s like Monika and Ericson which are not pioneers in innovation and are late movers might feel the bargaining power of customers.
Threat of new Entrants: It is difficult for new entrants to establish a brand in Telecommunication Industry globally but not very difficult. Apple was not in the Industry a decade before but it is one of the company’s which have reshaped the Industry. Likewise a company can enter the market but on the basis of brand which has been already present globally. Threat of substitutes: This Industry is governed by substitutes.
If people do not buy an apple ‘phone then they resort to Samsung, Sony and ITCH.
There is a lot of threat which can be seen in the Industry within the smartened market. It can be said that the Industry is governed by different brands and people have wide choice which one to choose ranging from high to low price. Further amongst the micro environment the SOOT analysis of company tells whether company is able to survive in the environment or not. The strengths, weaknesses, opportunities and threats when matched with the Strengths: The Company has global presence and brand name which has been since the mobile phones came in the market.
To make such name in market new entrants might have to struggle a lot. Another strength is the position company holds in world and also resources like supply chain management built on years of hard work, marketing channels etc. Weaknesses: Amongst the many weaknesses ten company 010 not really ten potential AT change, Innovation Ana a to maneuver itself according to the changes in the telecommunication, IT and other Industry. The changes brought by smartness were not applied even as late movers and hence the lack of research was one of the basic weaknesses.
Opportunities: The recent amalgamation with Microsoft will expand new opportunities like the software support, marketing skills and branding. They will also have new insight and access to resources with brand like Microsoft which has its root to old new and present generation. Threats: The basic threat to the firm is extinction whereby it can be compared to a dinosaur. The lack of adaptation and change can dad to extinction. Further no innovation can place it on the back end of the industry as a late mover, however it would also have to be continuous.
The above overall effects have placed Monika where it was before and together with the SOOT analysis it can reach where the Industry is shaping.
This can be tedious task but it can also help earn the lost reputation of connecting people continuously by bringing new technology to them. Question 2: Critically discuss the nature of changes and their impact on company’s operations. The changes discussed above have been explained in this section and further critically analyses. The first change which is evident from the origin of Monika is the foraying from paper manufacturing, then rubber and cable production.
The operations of the company would have changed from paper manufacturing factory to rubber and then cable production.
However the best the company did was to introduce themselves in to mobile phone market. It expanded quickly and certainly the operations were affected with this big change. By 2010 Monika employed over 123,500 people across 120 countries in fifteen manufacturing sites around the world. This states that company might have had to expand its operations offshore and liaise with manufacturing units for operations like supply chain management which affected in positive growth.
The changes like having outdated Software Company after 2005 and not recognizing to change accordingly to the market was one of the facts which impacted most on company operation which slid the profit and company position to lows. Furthermore amongst the above answer given whereby PEST analysis is done with the environment.
The technological factor states that Google was becoming more and more powerful as a search engine. The impact of this was seen everywhere in all the Industries. Advent of technological hanged with Smartened introduced combined the Software, Computer sector together.
Ekberg et al states that Innovation is a necessity for a firm which compete in environment where change is pervasive, unpredictable and continuous. There is volume of research on various strategies that point out what structures make firm innovative. However the above authors also suggest that there aren’t any specific rules for being innovative but then there is always radical innovation or sudden innovation changes which are seen in the environment.
The advent of ‘phone is one of sudden changes and merging of search engine, Tablets and laptops o form one Industry is also part of that change.
Furthermore the new versions of smartness is part of incremental change. This change can be replicated in Monika research centre Ana Turner Tallow so as to survive as one AT ten slants I n company which went in negative growth can be saved through this route. The environment changes had a lot of impact on working operations of company since it dealt with mainly the phones which were restricted to camera, GAPS and bit of surfing on the internet. The company operations had to change drastically from making gaps and dual Simi phones to smartness.
The top market which used to spend same none for buying new models of Monika diverted to Buying ‘phones.
Furthermore the other big changes which have been discussed in previous answer were the software problems which were complained by the customers to the company. It lead to travel a revolutionized path by tying up with Microsoft for software research and basis. The other changes which were faced by the company which made them one of the top most grossing firm in mobile Industry was building in the strategic way to predict growth and supply model of mobile handsets from mid-sass’s to 2000.
Corral and Cannot state that company had best strategic models for predicting the Roth and expansion of mobile handsets from mid-1990 to 2000. The Industry analysis model and process was one of the best which made them rise and subsequently meet the demand. The model states that they organized operations in such a way that they predicted how many customers replaced handsets, how many markets were explored, what is the network evolution.
The picture says below the industry analysis model of Monika and how it affected the brought together the whole company to make it topmost grossing firm.
Source: Corral and Cannot. The above strategic focusing might have included Supply chain management, sales Orca, research and development team and marketing departments together. The replacement team analyses why the handsets are replaced or what could be wrong with new handsets and further gave review to research team. The above authors also conclude that not only the mobile Industry in terms of smartness changed but also the mobile communications changed from analogue signals to digital ones.
This meant that company had to change the third generation of mobile handsets giving more space to store downloaded information, multimedia services etc. Corral and cannot state that it is important to mention that communicating industry hanged is not an easy task. It is very difficult task to predict the industry life cycle with all early signs and different types of uncertain data. One of the main changes in operations which Monika had to face through changes in Industry life cycle was human resources in company had to shift from what they were good at to something else.
This might have arose discomfort, discontent in the work pattern. Further the above authors also stress that a good understanding of industry saves the companies from a lot of cost restricting later with its operations and also abrupt decisions.
Ekberg et l explains Innovation theory by basing it hypothetically on two of types of innovation, Incremental and Complexity theory. Both of theories have similar hypothesis like environmental dynamism, age and size of firm, intra firm structural linkages, and improvisation, Experimentation, transitioning across projects, age and tenure of policy makers.
He further explains that environment can act as a cushion where by company can change direction but not a real cause of innovation. As explain In case AT Monika ten company was Innovating ten way ten market responded towards technical and mobile communications however it was not soused much on research and development. Admittedly the Industry analysis with porter’s five forces explained that Industry is highly regulated globally with patents, brand names and customer choices.
The upgrading and merging of wider environment also effects the inner industry cycle.
The mobile industry is closed yet open industry whereby many Industries are merging and going together to form one big pool of Industry. Earlier the mobile industry was the only industry operating providing communications but nowadays the POI communication and we have IT merging in both to change and give different experiences. Hence the idea of having only Mobiles or only big giants in industry rules out. This will further provide difference in the way operations will work out for Monika in near future.
In the end the company has gone through a lot of changes which will affect the company some which will shape and then reshape the structure of communication Industry. Some of these operations will affect the company with positive impact whereby human resources will have to be shed in order to fit in with the other giants. In order to become giant or leading company in this industry Monika will have to focus more on the demands of market environment and align company oils and vision to achieve greater share of profits.
Question 3: Evaluate the proposed changes by the company and recommend appropriate methods for implementing it. The proposed changes which have been marked by the company for its growth and progress are analyses.
First change which the company resorted was to build a brand together encompassing Microsoft and Monika as a brand together. The company as brand will be able to do much more because collaborating on brands will provide much more coverage whereby the gadgets of Monika cannot reach name of Microsoft reaches before anything. Tallboy says that with Microsoft vouching for increasing sales through mobile devices, tablets it is a very good deal for both ends.
Since the spiky as Voice over Internet Service is one of the powerful tools of company and realizing its potential in every sphere will help build new ways to reach customers which is one of mission statements for Monika. The working of two important brands together will create a lot of potential for more R;D for company. The company might have to invest more in R;D to create more channels for new mobile devices with updated software to be given to human race.
Further to implement this company will have to invest a lot in patent rights and acquiring those rights.
The earlier money invested in R;D failed to produce technologies that could dent the dominance of Apple and Samsung in the smartened business. It is possible that with this collaboration the company may have new niche and acquire lost reputation. The only hurdle to achieve this will be manpower. The company might have to shell or reduce the previous research employees or maybe teach and train them to Microsoft standards. Furthermore the patent costs may have to be arranged for both firms and how it will work out by the ND of collaboration period.
The method for implementing these changes includes changing names of the new venture products which hit market and how the old products which have been with old software system will be serviced or replaced. The Simian software which was heart of Monika was one of the software providers giving steward support never Walt problems In providers mace teen outdated . Further the company will have to develop new products and build software’s to support applications for those products. This will entail a lot of new ties with product manufacturing, a lot new support of supply chain management and also marketing trainees.
Some of the marketing strategy which the company can do should be bringing new technology whereby mobile phones can encompass POI, new technology and the idea of new age mobiles which can store more data, bring more information and bring businesses and technology on your fingers. The other changes which have been proposed by Microsoft and Monika together are the business opportunities for developers.
The developers which can tie up with firm to bring new application for users can also prosper in the way of this new market. The firm can always connect and develop with new team of researchers in many ways.
They can use connect and develop strategy for Finland or from Silicon Valley which can have young university graduates to tie up with the firm to develop new mobile software’s or devices. The idea of this collaboration and working together is to also embed the culture and work ethics of both organizations. The firm Monika is originally from Finland and Microsoft has been spawned in Silicon Valley California. The work culture of Monika encompasses change because since its advent the company has changed so many times with time.
It started from wood pulp to wire telecommunication to mobile devices giant. Further Microsoft has been very steady with the changes. It has occupied monopoly in software market in IT industry. The good side to this can be that company will be not well versed with the change whereas Monika has steered clear with changes and further is prone to changes which come in near future. Both have different organizational culture.
Parker (2000) agrees that organizational culture is different to the place where companies have originated.
Corporate culture is also one of the term used by the above author to define working in an organization. The company more than anything in order to work together has o form and foresee working culture of each other. As was said above Monika has been very evident and prone to changing its operations and this has made it one of the versatile companies. Furthermore Microsoft has been in a monopolistic conditions operating as only one big giant in software industry.
Hence it might create problems in working together and mind-set of employees working in R;D for new developments in mobile technology.
The R;D and other departments will have to see the mind-set and working preferences of both companies. Further the other change which has to be seen by the company is through cost cutting. The company is cutting on cost on useless products and features which it gave before in old mobiles. Some of them included keypad system, storage cards etc. The company may cut costs through the employee packages and other benefits.
Further Simian technology which was heart of Monika is shifted to Accentuate. Accentuate is mainly outsourcing, consulting and technology services firm.
Simian software helped to form base for Monika. The company in process of going through transition did not sell the Simian Software but only outsourced it to Accentuate. The idea can be regarded as good and bad.
It is beneficial because Microsoft has Just had 10 years collaboration with Monika, may be after 10 years if Simian technology is grown powerful and profitable can still be reverted to heart of Monika. Further it is non beneficial because the company coo a nave mace a lot AT pronto wanly nave Eden lost In previous years Day selling ten technology.
The company can sell off the outdated or worn out wings of business to some other firm and could have pooled money to develop in R;D. The changes which the company is incurring now are in the segment of value and growth in developing markets. The company is all geared to make changes in the growing markets where giants like Apple, Samsung and ITCH have not made any foothold. With the statements in the case study which were mentioned by current CEO Elope, it is very clear that the company is focusing more on the developing markets.
The company might have to expand its operation to Africa, Russia and other markets which have lot of potential to be tapped. The company will have to focus on the marketing, Monika venture segment, Monika mobile phone market and also communication departments. They will have rebuild the old system of tapping potential with new tweaks. In the end, Monika has been versatile to face changes but to be pioneer it needs to be step ahead of the competition. The company needs to look out for new developments in the technology segment which can give it competitive advantage.
The R;D facility from Microsoft may be able to provide innovative base to increase customer reach. The further added advantage to both companies to reach new markets is the brand names they hold together. The changes which have been advised by Elope are very apt and short term but for longer profitable venture they have to invest a lot of time in building core abilities in Mobile market which both can have provided they tap full potential of current capabilities.
Question 4: In an attempt to facilitate the change process, advise Ionians leaders on issues of organizational culture, politics and leadership. The issue of culture, whereby two companies come together and tie knot for mutual benefit has been always curious case in theories.
It has sometimes been overlooked and sometimes over emphasized. “A cultural shift is rapidly changing how we work, learn and interact” Scheme states that culture and leadership are both entwined with each other. It resides within a person and drives most of the behavior inside and outside. Further the author also tries to Justify the relation to an extent that managers or the leaders should understand that subcultures in organization are formed due to employees.
In the earlier segments it was defined that corporate culture is different to the organizational culture.
They can be aligned together but it takes a great leader to align the goals of company to the goals of employees so much that employees embed that in the work ethics (Scheme, 2009). Managing subcultures is very important nowadays because of many reasons which eave been pointed out by Scheme (2009): Mergers, acquisitions and Joint ventures were subcultures need to be aligned/blended or at least adjusted for smooth working. Globalization which produces diversity in working environments based on ethnicity, language and nationality.
Technological complexity which produces more ‘mature’ occupational subcultures that have to be taken into account in designing work flow. IT which has created subcultures like structural options like people have virtual offices when they have not met each other personally but are working with each other guiding instructions.
The cultural and subcultures issues influence all aspects AT Dustless, nonce ten task AT leader Is to unreason ten namely Tortes which arise and to manage these forces to ensure the corporate goals and missions are realized.
The case of Monika can be compared to all the issues stated above which exemplify that there are subcultures of working ethics which might be prevalent in both companies. Bringing CEO and leader from Microsoft who has had experience in Software focused firm might be detrimental or can provide new beginning. Monika has not been in the software domination but has been active in mobile segment. The hanged it has faced on whole provides us that firm is very much ready to withstand further changes and so are the employees on whole.
One of the cases which is similar to the case of Monika and Microsoft has been given by parker whereby he Justifies that in mid-sass’s a firm named Atari hired a CEO with background in marketing. The firm was mostly managing software engineers and he found that there is no incentive and work structures are very loose. He set new parameters to Judge the work done by giving specific targets, incentives and work regimes which were not accepted by way the R engineers worked. Some of the esteemed employees left the company because of tight rules and regulations.
Hence one could say that leader also has his own work culture which he is used to and the firm had different work culture. This could be one of the case where Monika employees can react because they have been used to responding Simian developers and their way of working.
The CEO of that firm had not realized that in gaming since the evolution of company people working in it had realized that essence of designing good games was unstructured collaborative effort to trigger each other’s creativity. Politics in a whole is very frightening yet intriguing term.
Politics can effect business with its outside environment and also from inside. Hollingsworth and Borer state that business is and will be always effected with the politics, by quoting an example that the capitalistic and industrial revolution had effect on the making of cultures within many companies. Markets and other coordinating mechanisms are shaped by and shapers of societal systems of production.
By the term social systems of production the author means that structured firms in same industry have been entwined by the relations with other rims like supplier chain companies, marketing firms etc.
Further the outer social cover like unions, concept of social fairness held by capital and labor markets, society’s idiosyncratic customs and traditions as well as norms, moral principles rules and laws all are applicable to the term politics. These effect the firm the way it has been structured and how sub cultures work within the organization. It is evident from above statements that the term politics effect the social circle a lot more than way we think. Monika has originated in Finland hence it will have work structure in its roots of Finish culture.
Microsoft has been dominant in Silicon Valley hence the work ethics structure and its culture will have US work ethics.
The politics can be cumbersome with both firms however Monika has also headquartered in Silicon Valley California. Further the interference of European Union is a lot evident than US having any political block with any countries. The unions in Europe have very strong foothold than US which states that if the R and Joint venture has to happen it needs to consider the interference of company unions in the work.
However from work venture point of view in the era of globalization the companies know how to handle the littoral scenario Ana nylon Interference Politics could also occur within the management in the Joint venture. It is seen in the case study that the appointment of Microsoft CEO created disturbance in mind of Monika stakeholders.
The idea of being governed by silicon valley CEO who was initiating transition of Joint venture was taken in grey shades considering the fact that the collaboration is good for both companies together.