Section 2
Michael R. Franco
MGT450 Strategic Planning for Organizations
Professor Conni Whitten
August 9, 2021
Nokia is made up of four key departments, in which each dept is given specific mandates. These departments are Multimedia, Mobile Phones, and Enterprise Solutions and Networks. Nokia works with a matrix structure. This enables individuals with diverse functional backgrounds to combine their experience and abilities to tackle organizational objectives and promote innovation. The operational area of Nokia focuses on ‘Mobile Phones.’ This organizational structure seeks to serve emerging markets that Nokia previously dominated mobile telephone markets. The specialist business unit consists of “smart devices” that are designed to create devices for Nokia.
The governance structure for Nokia company is made up of five principal governing bodies as follows: the governance structure for Nokia company is made up of five top governing bodies as follows: external & internal auditors, shareholders, the Board of directors (BoD), and Nokia Leadership Teams (Laukkanen, Lindell, & Vanjoki, 2017).
The Board of directors controls the Nokia corporation’s functions and operations. It is also active in the evaluation of Nokia’s management strategies and strategic decisions. The Board is divided into three committees: the Staff Taskforce, the Audit Committee, the Governance Practices, and Nomination Committee. The Panel appoints the Nokia Leadership Group that is responsible for the operational management of the company. The CEO, who is also President, presides over the team. The internal Auditors are part of the 3 CFO organization branches and retorts to the BoDs’ Audit Committee. The shareholders select a foreign auditor; the BoD’s audit committee oversees their qualifications and performance.
Describe the challenge and explain why it is a problem for the organization. Include how the problem is or has the potential to affect the strategies of the company.
Nokia had a major strategic planning problem. The company performed very well in the early part of the 21st century. It has been a leading company in several segments of the market. However, this success contributed to a blunder in the company’s strategy. Strategic planning was a problem for the organization because it encouraged lapse in the corporational approach. Additionally, the issue can potentially influence organizational design that could lead to poor performance and lower productivity.
Competition is the other challenge facing the Nokia Company. This is the existence of other companies in the market offering the same services and products like the Nokia Company. As a result, it leads to pressure on Nokia as it has to ensure that it can make good sales and maximize profitability. This is a challenge for the organization because it put it under pressure to perform. Thus, it can affect the company’s strategies and encourage it to implement new advanced techniques to fit in the hyper-competition. The company may also be forced to lower the price of its products in the market to attract customers.
Bureaucracy Challenge is the other issue affecting the Nokia Company (Burgelman, 2018). This is the system of government whereby most of the essential decisions are taken by the operational officials rather than the chosen representatives. This is a problem for the organization because it will not be capable of having diversified decision-making. Additionally, the made decision may not meet the needs and the preferences of all the staff in the company. Therefore, this issue can affect Nokia’s company strategies towards the achievement of organizational goals. As a result, the executives may lead the company towards losing its investors and consumer out of poor strategies they implement in the organization.
References
Burgelman, R. A. (2018). Yves L. Doz and Keeley Wilson: Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones.
Laukkanen, S., Lindell, M., & Vanjoki, A. (2017). Corporate entrepreneurship in a large company: skunk works or guided evolution?. In Handbook of Research on Corporate Governance and Entrepreneurship. Edward Elgar Publishing.
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