National Technical University of Athens Athens University of Economics and Business

AthensMBA

Working Team: Professor:

Deligiannis George Dr. Lioukas Spyridon
Pertsinis Ioannis
Rihani Michael
Vitsios Efstratios
Nokia Corporation
Nokia Corporation is a Finnish multinational communications and information technology
company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater
Helsinki metropolitan area.

Nokia Leadership Team Revenue: 23.22 billion (2015)

Chairman Risto Siilaasma Operating income: 5.453 billion (2015)
President and CEO Rajeev Suri Profit: 1.68 billion (2015)
CFO Timo Ihamuotila Total assets: 45.06 billion (2015)
Total equity: 9.44 billion (2015)
Number of employees: 114,256

What Nokia does

Internet of Things (IoT) Virtual Reality
Ultra Broadband IP interconnectivity
Cloud Innovation Ecosystem
Digital Health Services

NOKIA
 Innovation and Possibilities
Identity
Nokia is a global leader in
creating the technologies
at the heart of our
connected world.
Activities Sustainability
Innovators of the global Nokia invents, designs,
nervous system: the and deploys sustainable
evolution of networks into technologies that make a
a seamless fabric of real difference in the lives
interconnected of people.
intelligence supporting
our digital lives.
NOKIA
 History
Foundation of Nokia
Forest and power industry
Manufacturing telephones, electrical
cables and rubber products
Acquisition of Alcatel Lucent
16.5bn (2015)
Mobira Cityman 900 FIRST FULLY PORTABLE Sale of HERE Maps to a car
MOBILE PHONE (1987) company consortium for 2,8bn
Development of GSM Mobile Standard (with Siemens) the Digital Health unit was founded
World's First GSM Call using NOKIAs equipment (1991) (Withings acquisition 2016)
Worlds First commercially available mobile phone HMD Global and NOKIA
(NOKIA1011 - 1992) Technologies will create NOKIA
Best selling Mobile phone brand (1998) branding devices (2016)

1865- 1967- 1983- 2000- 2014-

1967 1982 2000 2014 present

Creation of Nokia Corporation (1967) Pioneer of mobile gaming (Snake)

Military equipment
Mobile radios, telephone switches, capacitors,
chemicals and personal computers
Launching of Mobira Senator car phone
NOKIAS FIRST MOBILE PHONE (1982)
Creation of best selling phone of all time (Nokia 1100 2003)
Creation of Symbian
Loss of market share due to iPhone (iOS) and Android
Stock price fell below 2 dollars, almost became bankrupt (2012)
NOKIA purchased Siemens stake in NOKIA-SIEMENS Networks (2013)
Acquisition of NOKIAs mobile devices unit by Microsoft (2014)

NOKIA
 Innovators of the global nervous system
Internet of
Things (IoT)
Enabling the Internet of
Things, with massive-scale,
secure and low-energy
connectivity for billions of
devices.
Digital Health
Inspiring individuals to take
control of their health for the
benefit of society through
digital health technology.
Ultra broadband
Pioneering ultra broadband
solutions to deliver lightning-
fast wireless and fixed
broadband access, anywhere,
making the maximum use of
existing assets.
Virtual Reality
Pioneering transformative
experiences through
immersive VR technology.
Cloud
Connecting society to the
cloud, combining
virtualization, intelligent
analytics and orchestration to
build programmable,
performance-optimized
networks that dynamically
adapt.
Innovation
Ecosystem
Help individuals, communities
and industries create a better
future.
IP Connectivity
Creating the high-performing
IP networks that underpin the
digital world, enabling
customers to reduce time and
risk in launching new services,
and rapidly scale to meet
demand.
Services
Helping customers to
transform to new
technologies and new
business models, through
professional services
spanning consulting,
designing, planning,
implementing and operating.
NOKIA
Nokia is everywhere

Headquarters
(Espoo Finland)

USA Russia China

Mexico Balkans, etc. India
Canada France Japan, etc.
Germany
Italy UAE
UK, etc . Qatar
Israel, etc.

Argentina
Brazil Algeria
Columbia Tunisia
Costa Rica, etc. South Africa, etc .

Australia
New ZeaIand
Indonesia, etc.

NOKIA

Analysis of external and
internal environment

NOKIA
Analysis of External Enviroment
PESTEL ANALYSIS

Legal

Environmental Political

PESTEL

Technological Economic

Social

NOKIA
 PESTEL
Political Factors

Every country has its own rules and regulations

NOKIA had to stop its business in some cases due to strict regulations

Taxation policy, government stability and employment laws varies from country to country

In some countries NOKIA has to follow minimum wage laws (i.e. India)

Awaiting developments following the results of US Elections (Trumps victory)

NOKIA
 PESTEL
Economical Factors

NOKIA leaves great impact on the economy of Finland

Finlands government helps NOKIA to secure the jobs of the workers

The consistent change of the exchange rates across the world affects the business

The recession on the global economy and the bad economic situation have a negative

influence on the interest rates

Increase of the borrowing amount from the banks in order to carry out business activities

NOKIA
 PESTEL
Social Factors

NOKIA has to understand the new trends in the market

Technological developments are made quickly in the European markets

The company has to understand the nature of people (i.e. some people need innovative

features while some other are looking for a simple and inexpensive solution)

Better understanding of the emerging markets culture is crucial in order the company to

meet their demand

NOKIA
 PESTEL
Technological Factors

Various other competitors are introducing new handsets with latest technological
developments

Improvement of the quality of internet, camera, e-mail, call record is essential for NOKIA

Partnership of Microsoft increased the trust of the clients

New technologies leave their impact on minimizing costs

Need of new technological developments on online gambling, MP3 players and high
definitions TVs

NOKIA
 PESTEL
Environmental Factors

Moral obligation to deal with the issue of global warming

The company should take care while disposing phones, accessories and lithium batteries
in order to ensure safety and protection of the atmosphere

Globally the rules and the regulations about environmental consciousness has become
more strict

NOKIA
 PESTEL
Legal Factors

NOKIA should protect its products and new technologies with patent applications

Avoidance of copying ideals of features of other companies

Ascertain that various plants follow the working rules and regulations and nothing is
happening against the law

NOKIA should give proper attention to the privacy of its customers

NOKIA
5 Forces Analysis (PORTER)

Barriers to entry Power of buyers

Rivalry
between
Competitors

Threat of
Power of suppliers Substitutes

NOKIA
5 Forces Analysis (PORTER)

Secure Patents
Strong brand identity of existing players
Barriers to entry High expected retaliation
High capital requirements (high R&D, marketing and PR costs, etc.)

Increased buyers volume

Power of buyers Buyers now have more options due to increased number of competitors (Apple,
Samsung, Google, etc.)

Low buyer inclination to substitute

Threat of substitutes High price performance ratio

Low bargaining power

Power of suppliers High differentiation of inputs
Low switching costs

Rivalry between Strong brand identity

Low product differentiation
Competitors Entry of companies from emerging countries

NOKIA
 Consumer Market Segmentation

Developed Economies Emerging Markets Undeveloped Economies

Products
Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers

Entry level mobile phones

Mid range smartphones

High end smartphones

Tablets

VR Cameras

Internet of Things

Cloud Services

Digital Health

Mobile OS & Apps

Digital Maps

Large Markets with high penetration opportunities

Large Markets with moderate penetration opportunities
Markets with low penetration opportunities

NOKIA
 Major Accounts Market Segmentation

Developed Economies Emerging Markets Undeveloped Economies

Products
Governments Enterprises Governments Enterprises Governments Enterprises
Broadband Networks(3G/4G/5G) 5G 5G 5G 5G 3G/4G 3G/4G 3G/4G 3G/4G 3G 3G 3G 3G

Cloud Services
Fixed Networks
Network Security
Internet of Things

Markets with high penetration opportunities High investment opportunities

Markets with low penetration opportunities Moderate investment opportunities
Low investment opportunities

NOKIA
Critical Success Factors (CSF)

Function Key Success Factors

Economies of scale
Multinational Data Networks International marketing
Network coverage

After sales support

Telecommunications equipment
Seminars for the customers

Brand awareness
Development of applications and
Phones and Tablets
emphasis of operating systems
Good price-quality ratio

Strong R&D department

Innovation technologies Strong added value of new
technologies for the customer

NOKIA
 Conclusion
Analysis of External Environment

Moderate industrys attractiveness

High growth rates
Innovation and knowledge-intensive activities
High competitors strength
High investment demand

Opportunities
Penetration in undeveloped-emerging markets
5G data networks in Western Europe, USA, etc.
Development of technologies regarding digital health application and hardware
IoT creates great potential

Need for critical strategic decisions

Alliances, distribution center, etc.
Economies of scale

NOKIA
SWOT Analysis

Weaknesses
Strengths High borrowing
Brand Name Poor Customer Service
Experience in changes Huge loss of mobile
High Expertise phone market share
Global Presence High price in some
Quality products

SWOT

Opportunities Threats
IoT, 5G, Wireline Major Competitors
Networks Unstable geopolitical
Increase of Mobile and environment
Data Users Dependent on a
New Technologies limited number of
Introduce products in customers (Network
the newly emerging Infrastructure sector)
markets

NOKIA
 Strengths

Nokia has a well known brand name that has huge impact on technological world
Huge experience in turnover strategies
Global presence (about 150 countries)
Acquisition of Withings will be a huge asset in the sector of Digital Health
Strong strategic advantage in wireless and wireline services after the acquisition of Alcatel
Lucent
Highly qualified personnel

NOKIA
 Weaknesses

Criticism for poor customer support and sales services

High long-term interest-bearing liabilities and short-term borrowings
Recovering after huge mobile devices/operating system failure
The company took long time to enter in mobile phone market and it has lost huge market
share
Concern for employees and public image not clearly stated

NOKIA
 Opportunities

Mobile users will be more than 9bn in 2020, and mobile data users will be over 4bn by the
same time
Cloud computing is expected to be massive by 2020. According to todays data Cloud
computing generate more than $45bn.
Nokia share price is around 4.33$ (27/11/2016) and considered very attractive for the
investors.
ETA Devices acquisition targets to improve battery efficiency and considered as a core
project for NOKIA
Nakina acquisition targets to enhance Network and Cyber security (due to researches, the
number of Hackers will be at an all time high by 2020)
The company can introduce its products in the newly emerging markets
NOKIA
 Threats

The rivalry between competitors will be massive in all respective sectors

Many technological giants
Unstable economical and geopolitical environment
Environmental rules and regulations
Dependent on a limited number of customers and large multi-year agreements (Network
Infrastructure sector)
Possibility of unsuccessful implantation of new strategic plans

NOKIA
 Conclusion
SWOT Analysis

Nokias biggest strength is the culture

An organization with long history which knows how to escape from difficult decisions and
survive
Lot of opportunities to increase the earnings from the new strategy about new
technologies
Cloud and IoT is the future if arent the present
Preservative investments in startups like Withings or Nakana systems which means low
price acquisition with high ROI
Selective investments in colossus like Alcatel Lucent
The vision is a hard issue. We dont know if the organization could understand fully the
vision of new Nokia.
Nokia tries to create an easier way of life. Finally in a liquid market battlefield is very
difficult to recondition the strategy plan immediately and be the leader.

NOKIA


Strategic Position Analysis

NOKIA
 Shaping the future of technology

To expand the human possibilities of

the connected world

Example: Leading in Optical Network

infrastructure optimized by and for the
Cloud (400GB to 1TB transport)

Example: NPS (Net Promoters

Score), Geographical Network
Coverage

Help the customers to capitalize

on the opportunities from an
industry in transition

Example: Convergence of
disparate Network technologies

Example: Network performance

and simplicity index of
Networking Services

NOKIA

Mission statement

Shaping the future of technology

Nokia is shaping the technologies at the heart of our connected world,
to transform the human experience

NOKIA

Vision

To expand the human possibilities of the

connected world
At Nokia, we are shaping the future of technology to transform the human
experience.

NOKIA


https://www.youtube.com/watch?v=R5nxfkDzZUA NOKIA
 Objectives

Leading in network Expanding in adjacencies Diversifying by providing Leveraging new business

infrastructure,
converging mobile, fixed,
IP and optical networks,
optimized by and for the
Cloud
and gaining software network performance and opportunities created
leadership for network flexibility for large-scale through the Internet of
optimization, service enterprises Things
innovation, and customer
experience enhancement

All the use cases outlined above will provide opportunities for new business models and create
new pockets of revenue growth for network vendors

NOKIA


https://www.youtube.com/watch?v=GoJOZOnJaMc
NOKIA
Strategy
Differentiation strategy with focus to
innovation, new technologies, security and
quality of service

NOKIA
Tactics

Focus on social Networking and other Cloud based Services

that are increasingly accessed through mobile devices

Enhance Cloud based applications and promote IoT Services

and products in order to evolve the ongoing digitization of
business processes as well as peoples lives

Take seriously into consideration the needs for enhanced

network and application security and privacy to protect
individuals, businesses, public services and national interests

Converge disparate Network technologies in order to enhance

network performance and profitability and simplify networking
services

Focus on open-source ecosystems through application

programming interfaces ("APIs") in order to decouple from
hardware.

NOKIA
 Resources and Skills
Resources and Skills / Resources and Skills /
Functions
Easy to be Copied Hard to be Copied
Continuous Training, Easy access to R&D Constant renewal of technological equipment
R&D equipment Various patent Applications, Geographical
Diversity of IT Network, Bell Labs support
Recruitment, Management, Providing Specialized staff (IT), Unique Organizational
Human Resources direction culture, Specific technological environment,
The Finnish model of industrial relations (IR)
Long term liabilities and borrowing, Strong Net cash and other liquid assets almost 8bn
Finance Financial support for R&D dollars, Finnish Subsidy system for innovative
companies
Broad advertisement and discount policy, In Global Presence, Brand Awareness, Variety of
Sales & Marketing depth market segmentation services

Trustworthy relationships with suppliers, Innovative devices, Intellectual property

Production Economies of scale, Outsourcing production

Personal consultant for enterprises, Online Operations support system as a service

After Sales Support customer support makes costs both lower and more predictable

NOKIA
Dinstictive skills (KAY)

Key Capabilities Discrete Elements

International & Domestic Public Relations, Relationships

Relations Architecture with staff, Relationships with carriers in the industry

High end technology, Quality products and services, Strong

Reputation brand awareness

Highly skilled and specialized staff, Innovathons

Innovation (Innovation Competition by Nokia Bell Labs)

Ownership of Bell Labs, Withings, Nakina, ETA System,

Strategic Elements Alcatel Lucent

NOKIA
 Unique Elements
Bell Labs
Bell Labs, considered research arm, produces disruptive innovations for the next phase of human existence. This human challenge has
been the charter for Bell Labs for 90 years and led to a wealth of industry redefining innovations, eight Nobel Prizes and countless other
honors.
Bell Labs is pioneering the Future X projects, which are thirteen distinct new technology solutionseach of these aims to ensure that
tomorrows networks will be high-performing, low-cost, efficient, personalized and always-on.

Withings
Making the most of innovation, technology and design, Withings invents smart products and apps that fit into any lifestyle that lets you
track what matters so you can improve you everyday well-being and aim for better long term health.
The mission is simple: For individuals and families to benefit from the connected heath revolution.

Patents and Alliances

Intellectual property assets are fundamental to Nokia, which now controls three distinct IP portfolios: the Nokia Networks, Alcatel
Lucent and Nokia Technologies portfolios. The first two are of particular relevance to the Networks business.
Nokia Networks portfolio includes approximately 10.000 individual patents, Alcatel Lucent Portfolio approximately 47.000 individual
patents
Alliance with HMD Global for the production of Nokia branded mobile devices

NOKIA
 Stakeholder needs and Expectation of Nokia:

Stakeholders are those groups and people who are interest of business and organizational activities.
Nokia is one of the largest companies, so its stakeholders are major part of Nokia Corporation.

Internal External
Stakeholders Stakeholders

Business Community

NOKIA
 Internal Stakeholders
Shareholders: Nokia always try to do better for them. Shareholders arrange the major part of capital
for organization development as they part of owner of an organization. Shareholders receive share of
profit, bonus, and dividend as well as reward. Its company policy to give them bonus share, dividend,
premium share as they are feel secured to invest money more.

Employees: Nokia regularly involve employees in discussions about issues such as corporate values,
career and competence development, performance, diversity and work-life balance that's meet
employee's need and expectations.

Suppliers: Suppliers are very effective role for an organization. Nokia understand the important of
them and try to meet their needs and expectation such as early payment, advanced payment,
competitive value, communication regularity, preference of product etc.

NOKIA
 External Stakeholders
Customers: Nokia increasingly engage with customers on issues related to sustainability. Network
operators - Nokia's biggest customers - expect to meet high standards of corporate responsibility in their
own operations and increasingly in their supply chain. Nokia continues to receive enquiries and
assessment requests about social and environmental performance from their operator customers. Nokia
respond to those requests through its normal customer account management interface.

Government: Nokia is operating their business in world wide. Nokia always obey the government rules
and regulation and pay tax vat as per government rules. Nokia create a giant employment all over the
world and it is a government basic expectation from a company.

Local Community: Nokia is always promised to help all kind of local community all around the world.
Nokia sponsored for AIDS hospital, cancer hospital, all kinds of national game. Nokia sponsors many
research collaborations with industrial and academic partners. Nokia's goal is to strengthen co-operation
between researchers and academics.

Competitors: All companies in the industry are impacted by the way others conduct business. In many
cases competitors also have a strong interest in your business when you target the same types of
customers. Competitors may also be stakeholders in a similar way as your business partners regarding
industry-wide promotions and lobbying efforts with governmental officials.
NOKIA
 Business Community

Nokia works in collaboration with other companies on key issues through a number of industry
organizations, such as:

The Global eSustainability Initiative (GeSI): We participate in the Supply Chain Working Group, e-
Waste Working Group and Climate Change Working Group.

International Chamber of Commerce (ICC)

World Business Council for Sustainable Development (WBCSD)

Bank and Insurance Company: Nokia always meet the expectations of bank and insurance company.
They are taking loan from bank and investing money for other issue as well and paying interest.

Media: Nokia playing a vital role for increasing the media such as TV, newspaper, magazine and any
other media. Nokia pays high rate of amount for promotion their product for advertisement with those
media.

NOKIA
Critical recourses and skills for Strategy
Superior

1. Planning
Specialized
2. Management
Personnel /
3. Expertise
Innovation
Devoted 4. Financial Position
Personnel 5. Personnel
6. Specialized
Personnel
7. Marketing
8. Relations
Architecture
9. IT
10. Building
Marketing infrastructure
Relations 11. Cost of services
Inferior

Architecture
12. Innovation

Less Important Critical

NOKIA
 Critical recourses and skills for Strategy

Future Projections
Shareholders High Strength and
& Banks Influence

High

Government Generally passive

& Local and little
Community involvement

Level of Strength

Customers & Moderate strength,

Suppliers very effective role

Great impact, High

Competitors level of strength
and influence Low

Low Level of Influence High

Low strength but
Media &
Councils promotion is of high
interest NOKIA


Alternative Strategies

NOKIA
 Strategic Decisions
Creation of Alternatives

Which base Which direction How

Alternative directions
Stabilization Alternative methods
Basic Strategies
Penetration Organizational Growth
Low cost/ price
Product Growth Acquisitions
Market Growth Merges
Diversification
Alliances
Focus
Diversification Consortium
Mixed
Correlated
Uncorrelated
Porter Ansoff

NOKIA
Growth Rates and Attitudes to Risk

Existing Products New

Existing

Markets

New

NOKIA
Ansoff Matrix (Nokia 2016)
Existing Products
Growth by advertising in the
existing distribution channels, via
Existing digital advertisement.
By digital advertising Nokia could
achieve a larger customer base.
Markets
With continuous acquisitions
New Nokia is creating new distribution
channels in around the world.
New
At this period Nokia is creating new
products and services in order to
grow the product mix.
Take advantage of the latest
acquisitions in order to enter in
new markets with new products in
new distribution channels.
Alcatel Lucent and Withings is an
example.
NOKIA
 Strategy Evaluation

The analysis of Ansoff matrix helps Nokia to realize that if it remains in the existing market with
existing products or try to grow in it, its possible to be a wrong strategic decision. By following
diversification strategy Nokia will create added value. Therefore Ansoff matrix does not work for
Nokias example. The risk will be contained in diversification model (vertical & horizontal).

NOKIA
 Alternative strategies
Insurance plan strategy

Nokia as an insurance data provider.

As the average age in all continents is increasing, we

need to have more facilities for the older people. At
the same time, the health of these older people must
be under monitoring and these people have to be
active parts of society.

In order to have good results in health care system,

the premiums must be under regulations because of
its structure. The premiums arent representative of
the cost of health services.

With this project the company is about to edit all the

necessary data to be an insurance contributor for
every individual citizen.

NOKIA
 Alternative strategies
Insurance plan strategy

Using Digital Health Nokia could create a huge data center with statistics and results for the users of
digital health accessories. These data will be analyzed with the service package of Ultra-Broadband(5G),
Cloud services, IP Interconnectivity and Internet of Things.

Ultra-Broadband(5G) as a data transport system:

5G broadband gives more choices to users of any hardware system. For example wearing a Withings
watch, you can have real time data as blood pressure, or using the thermometer, temperature, saved
automatically in a data center.

Cloud Services as a data center:

Cloud services are an unlimited hardware storage system and helps to save data almost free on the
web. By using wearables all the data would be collected to the data center which is the cloud.

NOKIA
 Alternative strategies
Insurance plan strategy

IP Interconnectivity as a secure provider:

All data concerning health are highly secured. They must be transferred without human interruption.
Furthermore, interconnectivity will help the applications to be more efficient.
Finally using the IP interconnectivity, the important platform will be created in order to analyze all the
data securely with the help of Nakana Systems.

IoT as a self-driving system:

IoT is the future of mobile devices. By the help of Withings, Nokia will have all the necessary real time data
of any citizen. It can also predicts a disease problem like heart attack, saving that way the citizens life and
at the same time helping insurance contributor from spending operating costs. Finally IoT do all the
procedures automatically.

NOKIA
 SFA Evaluation of Alternative Strategy

Suitability(S) Feasibility(F) Acceptability(A)

Strategic
Decision SWOT Culture Resources Skills Stakeholders Risk

Diversification
*** ** *** *** *** **
Acquisitions
** *** *** *** *** ***
Merges
*** ** *** *** *** **
Alliances
*** ** *** ** ** **
Consortium
*** ** *** ** *** *
Insurance plan
*** *** *** *** *** ***
Alliances
*** ** *** ** ** ***

NOKIA
 Final Strategic Decisions

Acquisitions:
Proceeding to acquisitions may create problems because of the adaptation of new companies in the
culture of Nokia. Furthermore, the fact that the candidate company could be bought from a Nokias
competitor is a threat.

Insurance plan:
Insurance plan is a great opportunity for Nokias future strategy. Insurance plan is a low risk strategy
because it will start, at the same time, that the services are in growth. Insurance plan fits perfectly with
the culture of European Continent and is very close to stakeholders philosophy (high-end technology and
health services).

NOKIA
 Final Strategic Decisions
Acquisition Insurance plan

Suitability 8 9
Strategic rationale: 9 10
Research Indications:
Match with culture:; 7 10

Feasibility 9 9
Financial resources 8 8
Physical resources
Skills 9 8

Acceptability 9 10
Expectations
Management Objectives 9 9
Risks 8 8
Total SFA ranking 76 81

NOKIA
 Final Strategic Decisions
Acquisition Insurance plan
Suitability external
PESTEL
5 Forces 8 8
9 10
Feasibility internal
Money
9 9
Machinery
8 8
Manpower 9 9
Markets 9 9
Materials 9 9
Make up 8 8

Acceptability
Financial aspect 9 9
Stakeholders aspect 9 10

87 89
Total SFA ranking
6M Johnson and Scholes NOKIA
 Strategy evaluation with SFA and SFA 6M rankings

Insurance plan matches alternative strategy according to the SFA ranking system.

Our team believes that the market is almost ready for insurance plan and this could be achieved with the
support of stakeholders. More than ever, technology can predict serious diseases and this will help not
only Nokia but the whole society.

Investments, must be continuous, in the strategy of insurance plan. The last results of Q3 are moderate,
and we believe that announcing an entrance to the Insurance sector, will attract more investors and help
the stability and growth of Nokias share rate.

NOKIA


Implementation of Strategy

NOKIA
McKinsey 7s Framework
Essential Changes using 7s Framework (1)

Hard Elements Required Changes Importance Difficulties

Strategy
Transparency ++ +++ -
Alignment + ++ +
Spreading +++ +++ +

Structure
Delegation of power +++ +++ +
Horizontal structure ++ ++ ++
Networking ++ ++ +

Systems
Budget ++ ++ ++
Information Systems + ++ +
Business Analytics + +++ ++
Security + +++ ++
Essential Changes using 7s Framework (2)

Soft Elements Required Importance Difficulties

Changes

Staff
Specialized executives + ++ +
Motivation +++ +++ +++

Skills
Training + +++ ++
Weaknesses ++ +++ +++
Synergies +++ +++ ++

Style
Supportive Leadership +++ +++ +++
Develop leadership skills ++ +++ +++

Shared Values
Consistency +++ +++ +++
Customer Oriented ++ +++ ++
Alignment with strategy +++ +++ +++
 Human-Oriented alternative approach (Ghoshal)

Hard Soft

Strategy
Relations

Structure

People

Systems
Purpose
Implementing new strategy: Parties involved

Top
Management

Mid-Senior
Vendors Change Executives

Guidance
Team
 Parties involved

Top Management
The role of top management is crucial to the strategic change. It is very important to create a Guidance
Team, which will be responsible to inspire and guide personnel throughout the change processes.
Vendors
Vendor selection has to be very careful, and the expertise and culture of the vendor has to be considered
before conclude an agreement. It has to be clear that the vendor will act as an advisor and not as an
executive.
Mid-Senior Executives
Middle managers are usually those who have the better understanding of the current culture of the
organization and, in most cases, they can influence and inspire a large group of employees.
Guidance Team
Guidance Team will be the cornerstone of the change. They will be the link between top management
and personnel of lower levels.
 Change Plan

7S change actions:

Transfer a Project Manager from core Nokias business in order to accomplish the Insurance Plan
project and disseminates the shared values.

Hiring an extra Sales Manager and extra staff for the new Health Insurance department.

Hiring executives from the Health Insurance sector to inform and educate the team will occupy the
Health project.

Requisites Sources:
Plan cost: 10millions (hiring, educated, new department cost)
Funding: Using available net cash

NOKIA
 Change Plan

Priorities:
Select staff for the whole department
Create a business plan for the Health Insurance plan
Be in touch with Insurance companies
The acquisitions team have to continue its work, acquiring companies with high potential

Implementation:
Top management involvement and monitoring the progress of Project Managers.
Create a new trend inside the company and motivate innovation around Health Insurance Plan, using
human oriented leadership style.
The new department will be structured with staff which is engaged with Insurance Plan and will help
the creation of the business plan
The group does not need to hurry, so all operations must be done in a structured way.

NOKIA
 Turnover difficulty to time

Culture
Difficulty level

Skills

Strategy

Structure
Systems

Time Needed
 References

Hub pages, business and employment, business management and leadership 2012
www.hubpages.com
UKessays, Analysis of mobile phone manufacturer NOKIA 2016 www.ukessays.com/essays/marketing
Academic sample papers, Analysis of NOKIA 2015 www.bestessayservices.com
Slideshare http://www.slideshare.net/
University of Texas http://www.utd.edu/
http://www.businessdictionary.com/
Integrated differentiation cost leadership strategy https://www.translatum.gr
http://www.bluewavemag.com/
Strategy Train http://st.merig.eu/
The rise, dominance, and epic fall - a brief look at Nokia's history http://www.gsmarena.com/
Statista The portal for statistics https://www.statista.com/
How Did Nokias Networks Business Perform? - http://marketrealist.com
Profits plummet at Nokia Networks - http://telecoms.com/

NOKIA