nokia oraganizational design

Organizational Design project

Members

Muhammad Tarek Hussein 11104205

Raouf Abdelwahab Adss 11104457

Sandra Hesham Mahmoud 11104162

History and Background of NOKIA

1 FoundingNokia was originally founded as a paper manufacturer by Fredrik Idestam in 1865. After having established a ground wood pulp mill in South-western Finland, Idestam in 1868 constructed a second mill in the nearby town of Nokia: having better resources for the generation of hydropower production. In 1971 Ideastam along with close friend Leo Mechelin transformed the firm into a share company, thereby founding the Nokia Company.

2 ElectronicsIn the late 19th century Nokia added electricity generation to its business activities. After setting up the Finnish Cable Works in 1912, Nokia began to branch out into electronics in the 60s. Having developed its first electronic device in 1962 (a pulse analyzer for use in nuclear power plants) Nokia began development on radio telephones in 1963 for the army and emergency services and by 1987 Nokia became the third largest TV manufacturer in Europe.

3 Mobile telephoneIn 1979 the company established the radio telephone company Mobira Oy as a joint venture with the Finnish TV maker Salora. Having established a firm business footing Nokia released the Nordic Mobile Telephone (NMT) service, the world’s first international cellular network. As the mobile phone industry expanded throughout the 1970s and early 1980s Nokia introduced their first car phone in 1982, the Mobira Senator.

4 DevelopmentsNokia was to sell its billionth phone in 2005 as mobile phone subscriptions surpassed 2bn in this same period. In 2007 Nokia was internationally recognized as the fifth most valued brand in the world.In both 2009 and 2010 the Dow Jones Indexes ranked Nokia as the world’s most sustainable technology company as they set about developing their business methods and strategies in accordance with new environmental standards.

SWOT ANALYSIS

Strengths Nokia world’s largest producer and Manufacturer of Cell

Phone as well as has the largest Distribution network around the world. It is also known for the Creativity, Inattentiveness durability & reliability.

It has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM)

Nokia leads the global Cell phone industry Nokia dominates the world cellular industry because it has

the Strong R & D facilities. Nokia also possessing the all fashion strategies and four style

new generation characteristic from manufacturers It has diverse work force and advanced technology.

SWOT ANALYSIS

Weaknessesit has declared its profits had dropped by 40 % in 2010. Nokia Mobile Phone prices are higher as compare to

the prices of china mobiles handsets. Nokia presence in the US cellular industry is very

low and in Japan it has very weak position. In India Nokia has few Service Center and very

appalling after sale service In Japan Nokia closed the mobile handset

distribution and also canceled the distribution of E71 handset due to low market preference.

SWOT ANALYSIS

Opportunities In 2011, the global cell phone industry expected to grow by double digits Today, Asia-Pacific mobile phone industry is one of

the fastest-growing industries in the world. Developing countries like China, Bangladesh, India

and Pakistan has enormous demand potential. Nokia had a 50-50 joint venture with Semen’s of

Germany Youth wants the stylish aesthetics, fashionable

handsets, it drive the new market for players.

SWOT ANALYSIS

Threats Consumers are becoming more complicated in the

choice of handset due to new styles by china mobiles. Difficult for sellers to differentiate their products and

retain loyalty. Nokia is facing very strong price pressure from china

and other mobile producers Nokia is losing global market share after the arrival of

several Chinese producers In the Asia/Pacific emerged competitive forces. Apple, RIM and the other different sellers have created

strong pressure for Nokia.

Mission Statement and Vision

The vision of Nokia company is that rule on mobile world. And the mission is to provide more cheaper and valuable mobiles to the people of world.

APPS FOR ORGINZATIONAL DESIGN

Nokia Organization chart in FinlandWork Departmentalization

APPS FOR ORGINZATIONAL DESIGN

Work Specialization:

1-Clear division of labor

2-High work specialization

3-Specified skills

Formalization:1- Less formalized structure

2- Employees have autonomy in dynamic environment

3- Separate quality manuals for its various departments

Span of control:1-Work done in teams

2-In most cases span of control is wide

Chain of Command:1-Blur chain of command

2-Free flow of information

Centralization and decentralization

Nokia is neither completely centralize or decentralize. But it works with both approaches.-In long term (Strategic plans) the decisions are highly centralize.-It is more decentralized in short-run (operational plans) as it works in unstable environment.

Dimensions of organizational Structure

Dimension DegreeAttention to detail

High

Outcome orientation

Low

People orientation

Low

Team Orientation

High

aggressiveness

High

stability High

Innovation and risk taking

Low

EXTERNAL ENVIRONMENT

Specific Environment

-Customers: Customers remain our top priority. Customer focus and consumer understanding must always drive our day-to-day business behavior. Nokia’s priority is to be the most preferred partner to operators, retailers, and enterprises.-Competitors: “Cell phone competitors of the businessmen in the same area activity of the business.” The Nokia change business have competitor to provide quality product. Nokia has the many competitors to control the brand to achieve in the Mobile market; Competition in the mobile technology industry is intense. Nokia recognizes that it must maintain a competitive product portfolio. They must have a variety of products that meet user needs .


Specific Environment

-Suppliers: Suppliers support the provision of raw materials, they add a great deal of effect onto the organization and Nokia manages to control their bargaining power and maintain a mutual relationship. They spend years working with them and provide a good opportunity for them to improve their inputs and their environment performance Nokia Company has good supplier to get the raw material on time to maintain their availability and increasing and their creditability.

-Public pressure groups: pressure is forcing Nokia to look for new, creative and cost-efficient ways to manage and minimize environmental impacts … and to be indifferent with the competitors.


General Environment:-Legal and Political conditions: government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible.

-Economic conditions: Nokia are vital to the Economy; The organization is so important to the economy of Finland that the government had to step in when the business, earlier this year Nokia planned job cuts in Finland and with fears of what that would do to the economy the Finnish government stated they were prepared to help find jobs for those who are sacked (Reuters, 2011).


General Environment:-Sociocultural conditions: Socio-culture focuses on how Nokia blends in with components in a society; With Nokia mainly operating in the Western market it is important for them to fully understand the social factors in these markets and the main factor they need to understand is the culture of the society… which is to have the latest and most up to date phone.

-Technological conditions: The technological advances in the industry are vital to the success of any new Smartphone in the market that is continually growing, as Nokia ensure that their Smartphones are at the highest level of innovation.


General Environment:-Demographic conditions: It’s affected by the change in the mix of age groups in the population. If the population becomes older, this will lead to rising demand for products and services consumed by older people and a similar fall in demand for products consumed by younger people. So Nokia always has to submit products that fit all ages.

-Global conditions: the impact of globalization has been very significant and, today Nokia with the most of the large companies (Nokia, Samsung, LG etc.) are present in all continents and competing globally. The existence of a global market can be traced back to the absence of significant barriers of international business and the significant economic gains (scale and scope) that can be achieved from selling larger quantities

nokia oraganizational design

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