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Evaluating Mission Statements
Michael R. Franco
University of Arizona Global Campus
MGT450: Strategic Planning for Organizations
Professor Conni Whitten
August 3, 2021
Nokia- Technology Industry
When people come together, they fulfill the need for connection. The need for social association led to the rise of Nokia, which focuses on bridging the gap between people and access to information. Connection is more than just a social need. Through communication, we can share ideas as we grow. On the other hand, Strategic planning assists an organization in recognizing its purpose and the path it is supposed to follow in achieving its set objectives and goals. The goals and objectives are vision and mission created. Therefore, this paper highlights some of the challenges some organizations, such as Nokia undergo while trying to execute its strategies.
Nokia Corporation is considered one of the oldest serving mobile manufacturers. Before it grew into a mobile tech company, Nokia operated as an industrial company that produced pulp and paper. Its origin dates back to 1865 in a small town known as Nokia in Central Finland (Borhanuddin et al, 2016). Years into its operation as a power plant, Nokia would experience the impacts of World War II. Nokia would grow to become a leading exporter because of the expansion in Finish trade to the Western Countries. In 1960 Nokia would transform into a regional conglomerate focusing on working with Finish Rubber and Finish Cables.
In 1966 Nokia would become a company involved in many activities such as cable operations, microchip technology, tires, and footwear. The following year, Nokia would set up a platform to create new designs and increase production effort in data processing, industrial mechanization, and communication systems. A strategy that would expand into other sectors centers keen on improving information technology such as individual computers and workstations, advanced communication systems, and cell phones. It would also develop modems and automated banking systems.
Mission and vision
Nokia as a company aims at connecting people through technology. Nokia is keen on transforming the world, “transforming a big planet into a small village”.
The values and purpose
Its vision is to promote communication through a new world where information can reach all. Nokia’s core values include respect, achievement, renewal, and encounter. Through its set core values, it hopes to grow, perform and make decisions in the business market.
Structural Configuration
The company is involved in a composite and unbalanced business market comprising consumers, changing technology, and business trends. Nokia operates under a corporate structure of management comprising chief executives and several subdivision managers under the chief executive. Those working under the managers are the staff members involved in the daily operations of the company.
Competition
There are several companies in a similar business as Nokia. Therefore as a company in such a market, Nokia is constantly under pressure to perform (Burgelman et al, 2018). Despite the high competition, Nokia has incorporated new techniques of staying upfront which include indulging in hyper-competition. Furthermore, it has adopted new technology in its operation that has seen a rise in its output. Other factors of production, such as price, still pose a challenge. The powerful players control the price market thus making it not benefit from economies of scale.
Bureaucracy Challenge
Nokia’s failure is highly linked to its bureaucracy. Nokia has had many leaders who have never stepped up or had ambitions that are uplifting. Some of their decisions have made the company lag even further (Burgelman et al, 2018). The introduction of some of the new operating systems like Microsoft was a clear indication of lack of ambition and poor interpretation of consumer taste and preference and market dynamics.
Nokia’s drop from being a powerhouse has made it consider dropping some of its employees to save on costs and invest more in research development. Furthermore, it has not been able to grow due to product missteps from its previous management. The situation has made it drag in the telecommunication market, thus a drop in its shares. It is frustrating for such a company not to be able to reach its 5G ambitions.
The company still faces organizational fear that is clouded by the past culture of leaders and managers. The managers are still in fear of telling the truth because of fear of losing their job. The top managers are also not able to reciprocate and overcome the external factors within the business environment. The executives are afraid of losing investors and customers since the company just got back on its feet (Rinta-Kahila et al, 2021). Generally, employees are affected by past events such as intimacy, lies, and lack of technological competence. As a company, Nokia is still in the dilemma of what the next leadership might do when handling its operations. Decision-making has also become problematic in such scenarios. Such challenges make it difficult to bring in a pool of necessary resources for research and development.
The collapse of many companies is associated with not being able to handle some of the initial affairs. Most of the challenges are usually internal. Whenever there is fear within the levels of operation, the lower ranks of the organization will be affected and resources wasted. Top management should therefore protect its employees and engage them in decision making, and motivate them. Any company should embrace change and use it to its advantage. An organization’s culture starts at the top and ends at the bottom.
Reference
Borhanuddin, B., & Iqbal, A. (2016). Nokia: an historical case study. Electronic Journal of Computer Science and Information Technology, 6(1).
Burgelman, R. A. (2018). Yves L. Doz and Keeley Wilson: Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones.
Rinta-Kahila, T., Penttinen, E., & Lyytinen, K. (2021). Organizational transformation with intelligent automation: Case Nokia Software. Journal of Information Technology Teaching Cases, 2043886920954874.
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