Change of NOKIA free essay sample

Organizational change management is to manage the impact of the work of the new business processes, changes in organizational structure or changes in the companys culture. In short, it is to handle the people side of the change management. (Margaret Rouse,2009) Organizational change is a structured approach of an organization to make sure that the changes seamless and successfully implemented to reach a prolonged benefits. With the business environment dramatically changed so much, the set organization must learn to be at ease with changes as well. Hence this capacity to managing and adapting to changes in the organization is significant capabilities needed in todays workplace. Examples of such changes is the mission; a) Strategic change b) Operational changes (including changes in structure) c) Technological change c) Changing attitudes and behaviors member d) Personality Changes Wide Such as changes in the above, one of the organizations that do the above changes are Nokia Corporation. When Eloc entering Nokia in 2010, he has made changes in the Nokia.strategic. In June 30, 2012 the Nokia Leadership Team was changes. 1.2 Introduction of Nokia Corporation Nokia Corporation is the largest telecommunications equipment manufacturer in the world and is the largest company in Finland. The center is located on Airport officials Espoo, Finland, and the Companies is best known through his mobile phone products. The company known for producing mobile phones to protocol and all major marketplace . In 1967, Nokia Corporation formed after the merger of three companies, namely Finland Works Co., Ltd., the forest industry by mining engineer Fredrik Idestam and Finnish Cable Works. Nokia is well known in the mobile  communications industry, enabling business travel industry through different from the normal. Name of Nokia still known by entire world however now Nokia is going through a tough time as they have to compete with many rivals suddenly appear and offer customers a smartphone that certainly interesting. Nokia also need to faced with their external and internal factors of crisis. To handle problems and crisis that happens, Nokia has done a lot of changes in management 2.1a)The changes implemented 2.1.1 Five businesses. Business in rubber, electronics, power, cable and forestry is was five of business in 1967 when the owner of each business unite with each other. Unity between the five business has formed Nokia Corporation. During the entire the 1990s, the latex, cable and consumer electronics parts progressively sold as Nokia continue discharging from all non-telecommunications businesses. In 1992, Nokias CEO has made a big difference when no longer produce products that have been done instead decided to just make the telecommunications business. when nokia focuses on investing early in telecommunications and GSM technology in 1998, it automatically lead to the company becoming company mobile phone manufacturer in the world. 2.1.2 New boss new strategy Time passes too fast and the technology is changing. when technological change, competitors such as apple, samsung appear and offer products based smartphones, Nokia realized that the mobile phone market has fallen sharply. Customers prefer to buy a smart phone than a mobile phone. in 2010 Elop joined Nokia and started a new strategic review for nokia corporation. When first joining Nokia, he realized there were some in the culture of the corporation. Elop joined Nokia in 2010 and began a strategic review. When he join Nokia there is some culture he can see in that corporate culture. Some of the culture; A domestic Finnish cultural, protected outside Managers who work only for their career No effort for future development Do not focus on the change in the product from competitors The new boss needs to make a change and difference for Nokia corporation. In 2011, he has been a partner of Microsoft. He also left Nokias Symbian operating. The partnership is his new strategy. (Tom White , 2011) 2.1.3 New strategy nokia strategy is for the manufacture of mobile phones that can be felt by everyone. Nokia has prepared a new plan that is able to execute strategic. 1. Strengthen investment in Lumia smartphone products that cause the products more attractive and available for users. 2. invest in services, by location of it for the differentiation for Nokia products and extend their platform by location for new industry 3. Further enhance competitiveness and business functions phone Nokia has changed the management team to achieve the new strategy and to strengthen the companys leadership with more firmer. Nokia have tried to increase the operating of model by redusing the Equipment service expenditure, reduse the workers number in the company in order to achieve that plan. Nokia wish to return to sustainable non-operating profit in Tool Service IFRS as early as possible. a)Targeted investment Nokia has provided a plan for the smart device to extend the range of Lumia and prices continue to be able to distinguish between windows phone , new technology , new materials and location services . of the strategy , to strengthen the image of Nokia , one of the planned purchase has been made as of 1 billion devices imaging technology . A location platform Nokia will become a key port of Nokia. Nokia has invested able to differentiate the Lumia smartphone portfolio by bringing location based services including navigator and visual equipment Browse app.  The company also has plans to expand its mapping tech for various industries for enhance platforms and build new revenue streams Nokia has tried for raise the profitability and competitiveness for mobile phone products, to achieve this purpose Nokia has aims to increase its product serial device. nokia has also invested heavily in search engine of Nokia iainya to make nokia smartphone become so easy and great in the world. . Preliminary results of this innovation can be found in the latest Nokia Asha feature phone offering a full touch screen at a lower price. (Nokia Press Release, 2012) b) Updated cost reduction target and Operational changes Offset investment priorities, the company plans to restructure the company to make extra reducers in Devices Service. Nokia is planning to proceed various designed measures include: i. -Decrease in specific R D projects, resulting in designed the closing facilities in Ulm, Germany and Burnaby, Canada Consolidation specific manufacturing operating, resulting in designed the closing its factory in Salo, Finland. study and development venture Salo Spotlight of marketing and sales activities, include key market top priority; Streamlining IT, corporate support functions Decrease associated with non-core assets, include probably disposition. As planned changes were made, Nokia is planning to remove up to 10,000 positions gradually until the end of year 2013. Nokia is start the process of involved with representing the employees consistent to the legal requirements of a particular country. With regard to designed measures the company now aims to reduce Devices Service non-IFRS operating expenses for annual term rate of approximately EUR 3.0 billion by the end of 2013. This is an update to Nokias target for reduce Devices Service non-IFRS operating expenses by more than EUR 1.0 billion for the full year 2013 compared to full year 2010 Devices Service non-IFRS operating expenditure EUR 5.35 billion. This means that in addition to the already achieved annual run rate savings of approximately EUR 700  million at the end of the first quarter of 2012, the company targets to implement approximately EUR 1.6 billion than extra cost reductions by the end of 2013. As part of designed changes, Nokia will closely assess future assets of specific non-core. Consistent with this, Nokia announced plans to sell Vertu, a luxury mobile phone business for EQT VI, a European private equity firm. (Nokia Press Release, 2012 ) c)Renewed leadership team Nokia also announced a number of changes to its senior leadership. Nokia announced that they have been appointed effective July 1, 2012: a) Juha Putkiranta as executive vice president of Operations b) Timo Toikkanen as executive vice president of Mobile Phones c) Chris Weber as executive vice president of Sales and Marketing d) Tuula Rytila as senior vice president of Marketing and Chief Marketing Officer e) Susan Sheehan as senior vice president of Communications. f) Putkiranta, Toikkanen and Weber will join the Nokia Leadership Team Steps down from Nokia leadership team effective June 30, 2012 a) Jerri DeVard steps down as chief marketing officer; b) Mary McDowell steps down as executive vice president of Mobile Phones; c) and Niklas Savander steps down as executive vice president of Markets. d) DeVard, McDowell and Savander will all continue in advisory roles through the transition of their roles; however, they step down from the Nokia Leadership Team (Nokia Press Release, 2012 ) 3.1.b) the problem faced when do the changed. 3.1.1 Five businesses financial trouble During the CEO Kari Kairamo held, Nokia has expanded into new areas. Problems faced in the 1980s was in serious financial trouble. The main reason is because of the loss occurred and the television manufacturing business in too many may cause problems in management. 3.1.2 New boss new strategy sales reduce When elop be a new boss in nokia has caused many workers laid off. Mr. Elop has cut tens of thousands of jobs since joining the company in 2010, including half of the positions in the phone business. He has also been pared, cut manufacturing program of research and development and sale of assets, including patents and company headquarters. (Sven Grundberg, 2013) When Elop announced Nokias new strategy which is to work with Microsoft and leave Nokias Symbian operating, has resulted the sales completely clearly was have be decrease. when the merger between Nokia and Microsoft told, telephone sales year of 2011 is more than the second sales. sales in the second quarter fell to 25%. 3.1.3 New strategy a)Targeted investment To implement targeted investments, Nokia has continued to expand the range of difference between the price Lumia Windows Phone platform, new materials, new technologies and location-based services. This causes problems for the workers because of their need to understand new materials, new technologies and location-based services b) Operational changes and updated cost reduction target When nokia do Operational changes and updated cost reduction target the problem come out is was : 1. Reductions within certain research and development projects, resulting in the planned closure of its facilities in Ulm, Germany and Burnaby, Canada. a. By doing the reductions have resulting in the planned closure of its facilities in Ulm, Germany and Burnaby, Canada. 2. Consolidation of certain manufacturing operations, resulting in the planned closure of its manufacturing facility in Salo, Finland. Research and Development efforts in Salo to continue. a. ïÆ'  Have resulting in the planned closure of its manufacturing facility in Salo, Finland. 3. Focusing of marketing and sales activities, including prioritizing key markets a. ïÆ'  By focusing of marketing and sales activities have make the marketing department do to more plan to improve sales. 4. Streamlining of IT, corporate and support functions. a. ïÆ'  Employee in IT need to learn more about new software. 5. . a. ïÆ'  Assets of company reduce. c)Renewed leadership team Nokia have make changes to its senior leadership. The new leadership team, the changes made by Nokia would result in a change in leadership style. This certainly makes it difficult for workers to adapt to a new style of leadership. 3.1 c) The reasons changes implemented by the management. Changes in the organization is often done because : 1. More global competition 2. Declining economy 3. Faster technological change 4. Pressure to protect the environment 5. Customer expections changes( Want high quality product,low cost ,and friendly service) Conclusion Nokia has done a lot of changes in their organization because of the reasons above. 1) Because a lot of competition appear as samsung and apple. 2) Economic decline in poor management in the organization (culture of the organization) 3) Changes in smartphone technology. 4) The pressure to protect the environment need nokia to produce the right product. 5) The requirements of customers who require products quality need nokia products that satisfy the customers.