NOKIA MANAGEMENT ISSUES

Management Issues of Nokia Management

Nokia Management

Transformational Crises Management

Table of Contents

Introduction4

Nokia's Change-Management Crises4

Literature Review5

Issues with the Nokia Designs:6

Design Management: Nokia Low Cost Perspective:7

The Human Resource Management Crisis:7

Managing Demotivated Employees:8

Managing Structural Change:8

Research Gap and Significance9

Conclusion10

Research Questions11

References12

Appendix14

Management Issues of Nokia

Introduction

Nokia is a Finnish multinational company, and its headquarter is located in Keilaniemi. Espoo, Finland. The company mainly deals with producing high quality mobile telephones and along with diverse IT devices. The company also offers internet service packages which consist of applications, games, music, media and messaging via the Ovi platform. Nokia has also managed to form a joint venture with another multinational Siemens, to form the Nokia Siemens Networks. In spite of the success of the company in the mobile phone industry there are still some issues within the company that hinder its growth and development. Moreover as the paper would explain, these issues if resolved properly and within time could enhance Nokia's profitability, competitiveness and market share in the industry, which would make it a market leader. This paper intents on describing, summarizing and analyzeing the existing research related to the management issues within Nokia company that are explained in this paper. In addition to this, the paper identifies any research gaps and explains, in detail, how this research idea builds on existing research.

Nokia's Change-Management Crises

As discussed, Nokia's dominance in the world market has decreased significantly. The smart phone boom has changed the dynamics of the entire mobile phone industry, where high tech companies such as Apple lead this change. The success of Apple's I phone can be characterized as unprecedented in the industry, as never as a product gained so much market share in a short time period. Nokia's management is aware that it would have to make radical changes to cope with Apple's pace; otherwise they would lose the prominence in the global market of the past decade. The managerial crises in Nokia lies in the form of handling the daunting task of change management.

Nokia has to react quickly to the changing dynamic of the world mobile phone industry, as its market share is rapidly decreasing (Korhonen et Al, 2010, pp.337). Its organizational structure and strategies cannot be the same as before, because the current market is completely different. This situation has become a crucial dilemma for the managers at Nokia, because they have to act immediately. This process of change incorporates several factors such as hiring employees with different skill sets, training the existing workforce, changing the team dynamics of the organization, adopting cost saving initiatives and also cutting the extensive work force strength (Luk et Al, 2006, pp.109).

The managers have to transform this mobile phone giant that is structured for stable operations and enjoying a world renowned brand name, to an efficient organization that has to operate in an increasingly volatile environment. The company no longer has dependable sales activity and for the first time has to play the role of catching up to other companies. The management has a monumental task ahead of them, as they ...