Case Study: Some Companies
Table of Contents
QUESTION 5 T
Technological Change in Nokia
Elop and Balmer CEO of Nokia and Microsoft declared a planning of collaboration on 11th February 2011. This was a strategy of major upliftment for Nokia. Partnership with Microsoft meant devoting Nokia as a company to the Windows Platform at the high-end of the market. Previously all the mobile phones of Nokia was under the operating system of Symbian. Collaboration with Microsoft meant gradual fading out of the Symbian technology. They found that the android market was already overcrowded. So, for differentiating themselves from others, partnership with Windows was the best available option in the market. Elop believed that windows platform will give a further advantage in the market of competitors. He clarified, support from Symbian will be ended in the year 2016. He also declared that Meego will help the company from future disruption since it has shifted its focus from high-end mainstream market to a niche market. The employees and supporters of Nokia were shocked to know that Nokia was giving up all the investments with Symbian and Meego. This change was therefore a radical change in the history of companies providing communication devices to the common mass.
Implementation of the strategic change
As a cost saving measure Elop decided to outsource Symbian software development and devices to Accenture would be supported.
The company realised that for framework structure, tools of development, language of programming and channels of application distribution needs a NET framework. So, the QT division was sold to Digia and 125 employees of Nokia shifted to Digia
Vertu was a luxury mobile phone brand owned by Nokia with moderate technical specifications. Nokia decided to sell it off to EQT VI, which was a private equity group.
Nokia also terminated many other projects of development including Meego and Meltemi.
In due course of time Nokia changed from a highly profitable company changed to a company that has incurred huge amount of losses. Nokia has undergone many major restructuring to simplify the structure of the organization.
Nokia launched its first windows phone around six months after the announcement after all the layoffs and management complexities (Lam, 2019).
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Operational activities – Elop decided to outsource the software development of Symbian to Accenture. The QT division of Nokia was overtaken by NET and it was further sold to Digia. Vertu, which was a luxury mobile brand not because of the technology used, but due to the designing they used was very highly priced as compared to the mobile phones produced by Nokia. So, Elop decided to sell it to “EQT VI” which was a private equity group. The Meego Team was dissolved and the Meltemi got terminated.
Accounting activities – All the operational activities that have been discussed above were used as a cost saving measure. Moreover, the partnership between Nokia and Microsoft needed funding from both sides and Nokia had to take measure to cut off further expanses. Henceforth many of its previous partners were abolished and terminated. The company even thought of gaining high level profit by choosing windows as the market at that time was overcrowded by android. Elop thought windows will differentiate the product from other available products and thus increase the profit of finance.
Sales and marketing activities – Over a few years Nokia had changed itself from a company of high profits to a company which had incurred huge amount loss. Nokia had undergone several layers of restructuring and multiple number of large scale layoffs to simplify the structure of the organization and to get rid of the problems of bureaucracies.
Human resources and risk management – The Company had already incurred huge amount of losses while shifting from Symbian to Windows technology. Therefore it had to take each step forward with care and consciousness. Moreover, with changing technology a large number of employees protested and submitted resignation. The company itself had to terminate certain number of employees and recruit new workforce to keep pace with the change. Again the shift was to Windows and not to android because Elop thought, android had already overcrowded the market. Windows on the other hand would bring a change and mass of people would be attracted towards it. This policy was undertaken to initiate risk management. However, it created its own risk and the table was turned as it often happens in the game of chess. It could not create an image in the market and a drastic change in the fate of Nokia was about to come (Lam, 2019).
MEASUREMENT OF SUCCESS IN IMPLEMENTING THE CHANGE
Elop took the decision of outsourcing the development of Symbian software to Accenture. The next move the CEO took selling the Qt division to Digia and replacing Qt with .NET which was a new framework of application development. Next to it, the CEO decided to sell Vertu a luxury mobile phone brand to EQT VI which was a private equity group. Elop, firstly claimed that Meego would be used as a platform for disruption in the future but as Nokia had already faced a loss of huge amount and Microsoft’s windows platform had no options for the development of Meego, the team members were bound to find options for their own. With Meego, Meltemi a lightweight version of Meego was also abolished by the company at the same time. Nokia had gone through a major restructuring and have had multiple large scale layoffs. This closed down many production lines of the company in R and D Units in Canada and Germany, sales offices in China and Finland as well. However, after all this complexities in management and large scale layoffs Elop and his company managed to launch the first Windows phone in late 2011. The first models that were launched in the Lumia series were Lumia 800 and Lumia 710. Now the positive side of this project was slightly enhanced as the product development lifecycle has speeded up its entry and sales in the competitive android ruling market. The company got more focussed by then and the Lumia as a brand got more popularity than the Windows brand and on the other hand Nokia launched its last batch of Symbian and Meego products (Lam, 2019). By this time, Nokia has launched a various number of Windows 8 products in the market ranging from low end to the premium end. Lumia 920, the best among all the Lumia products became on the best selling phones in many countries throughout the globe and Nokia again started to gain profits.
Coca-cola has a policy enacted not to serve any beverage drinks to children below 12 years of age. The company neither creates nor buy any advertising agency to target audiences below 12 years of age. The company also does not sell any of their beverages in any private schools until and unless requested. CCANZ also agreed not to supply full sugar carbonated soft drinks and energy drinks to schools in NZ (Staff, 2017).
The managers told the employees that they were trying to increase the number and popularity of smaller size packs in the market to not only reduce the sugar and kilojoules intake of the customers but also to provide them with more options of selecting the products. They also confirmed that they would have to ensure if more number of smaller packs are available to the stockists or not (Staff, 2017).
Providing more information
Providing the customers the clearest information about the nutritive values
Helping the customers to choose the best option as per their needs
This is done so that people can make choices as per they have been informed
Coca-cola has always tried to update the customers with the clearest possible information about their products so that they can choose the best option as per their own needs. It is done to ensure that the people make their choices according to the way they have been informed by the company.
Labelling on pack
Voluntarily introduction of the percentage of daily intake of products
This provides appropriate information about the amount of kilojoules per serve
This drink is a part of adopting the HSR which is a government’s voluntary
This will display the minimum requirement of energy
Coca-cola introduced voluntary labelling on pack for the customers to know the nutritional information. This information includes the amount of kilojoules per serve which is also a part of adopting the HSR which displays the minimum requirement of energy per person.
Labelling on vending machines
Introduction of vending machines
Introduction of panels of nutritional information on these machines
By the end of 2015 providing this information reached 75%
Coca-cola also introduced vending machines with labelling of information regarding the nutritional values. This reached up to 75% by the end of 2015.
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As a Transformational Leader it can be possible to implement the changes within the organization because this initiates motivating and encouraging the employees to create and innovate change.
ETHICAL VALUES – The leader has to ensure ethical values and give justice and equality to individual employees. Honesty should be maintained in the company and employees should be informed the necessary changes as the CEO decides to implement them.
SOCIAL VALUES – Socially appropriate behaviour will allow Elop to allow civil rights protection to the employees by providing them with protection from gender, race and caste discrimination and give them the freedom of speech and work.
CULTURAL BEHAVIOUR – This behaviour will allow Elop as a leader to keep away the employees form reaction against diverse culture. This is because employees in a company always come from diverse cultural background, and everyone has to be treated equally irrespective of their caste, colour, gender and race.
SETTLING A MOTIVATING ENVIRONMENT
As a transformational leader Elop has to ensure that the employees get a motivating environment to work for the change from a normal network to a 6G Broadband Network. To produce products of a superior quality from an advance technology, it is necessary to provide a hospitable ambience for the employees to work for the same.
EMPOWERMENT OF TEAM MEMBERS
Empowerment of the team members will help the employees to have a shared cultural responsibility. With the knowledge of shared responsibility they will be able to work for achieving a common goal, here which is the implementation of a 6G Broadband network.
COLLABORATION OF TEAM MEMBERS
Gradually with empowerment of team members cultural diversification will fade away and they will be able to work together in collaboration to achieve the common goal. This is because they will recognize the company’s goal as their own goal.
REWARD AND RECOGNITION
The CEO should know that happy employees are the best asset of a company. So, when the employees perform their job responsibility satisfactorily, their efforts should be recognized, appreciated and rewarded. This will enable the company to reach the desired objective at a faster rate.
CHANGE IN CURRENT ORGANIZATIONAL CULTURES
With the change in the technology of the company and transferring from Symbian to Microsoft has also changed the need of employees in the company. Many employees submitted resignations and many new employees were hired. It was a tedious process. Being the CEO, Elop had to keep pace with the changing diversity of the employees and maintain a stable relationship among them to avoid any caste, gender or racial discrimination (Lam, 2019).
CHANGE IN VALUES
With the change in employees and the process of running the business, there have also been changes in the values of the company. Implementing change in a company takes handling of the employees with care. The moral values have to be taught and explained and it has to be ensured that the employees follow tem accordingly.
CHANGE IN BELIEFS
The change of process also means the change of beliefs. Change is the only constant in a company. Employees coming from different backgrounds have different beliefs whereas the company has its own beliefs that changes accordingly with the need of the situation. The beliefs of the employees have to be intermingled with the beliefs of the enterprise to get the best of the desired objective. This again needs proper training of the employees and teaching them the company’s culture, ethical beliefs and morals.
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Risk management of market competition
The market competition will always exist for any company. For an academic department to manage competition in the market, the establishment has to do a thorough research on the condition of the market, the competitors and their strategic ideas, and a demand of the customers. It might also need to assess the offerings of the competitors. With these knowledge available handy, the establishment has to consider and reconsider the changes that need to be adopted and implemented to maintain the same goodwill as before (Elsevier, 2017).
Risk management of technology
Technological advancement is happening across the world daily. In an academic department technology has to be implemented to make it noteworthy and to create a consciousness among the customers. PTE as such has to implement the latest technology with its proper use to maintain its goodwill and image. Use of fastest technology also means fastest improvement these days.
The three principles of the Treaty of Waitangi are partnership, participation and protection. In an educational establishment enrolment of new students in the organization will include these three principles. The treaty allows the Maori and the Pacifica tribe to have equal facilities as a normal civilized human.
Partnership – Partnership implies working together with the tribes to develop their educational strategies. This means engaging the tribe, implement place based learning of their history, having their representative on the board of trustees, and both power sharing and equity for those people.
Participation – This means involving the tribes at all levels of education. This would strengthen the relationship of home and school. The tribes would also participate in the decision making process. The school environment would reflect biculturalism and the aspirations of the tribes would be reflected and equity will be allowed.
Protection – This involves protecting the culture, values, language, interests and knowledge of the tribes. This will then include place based learning, normalising their language, including and allowing their customs and traditional values, and their equity (Mere Berryman, 2008).
Teachers for cultural competency were designed to provide education to the tribal children in primary and secondary schools. But at the same time education should be delivered in a way that their values, norms, culture, customs and education is delivered reflecting the cultural milieu.
This includes equal participation of both the cultures irrespective of their caste, creed, colour or race. Any person of the institution has to comply with the policies which resist any type of discrimination between the two cultures (Commision, 2014).
Commision, N. Z. (2014). The Treaty of Waitangi in regulatory. Regulatory institutions and practices , 156-183.
Elsevier. (2017). Corporate risk management, product market competition, and disclosure. Journal of Financial Intermediation , 107-121.
Lam, A. H. (2019). Change management at Nokia. Change management at Nokia , 1-32.
Mere Berryman, S. B. (2008). Effective bicultural leadership: . A way to restore harmony at school and avoid suspension , 25-29.
Staff, J. (2017, March 31). Choice and Information. Retrieved July 29, 2019, from https://www.coca-colajourney.co.nz: https://www.coca-colajourney.co.nz/transparency/marketplace-actions
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