Executive Summary and Recommendations
Nokia a Finnish multinational communications company with 130,000 employees in 120 countries and sales in more than 150 countries, designs and develops mobile devices in the communications and the converging Internet industries. Nokia has been a leader in mobile phones. However its hegemony is being challenged with stiff competition from Apple's iPhone, iPad and smart devices running Google's Android operating system. As a result it has nearly lost 39% of its market share to its competitors and its brand value has been reduced. Worse still increasing awareness and education levels in its current target market (low end phone users) is causing users to pick Android and Apple devices as their “next” device.
Nokia's fundamental objective is to increase their market share, as measured by sales revenue, in the global mobile devices market by 20% over the next 3 years. This report aimed at the board of Nokia (Global) proposes an organisational structure to support its (proposed) positioning strategy of “providing tablets and complete customised application solutions on these tablets to enterprises to seamlessly meet their needs for productivity applications, communications and compatibility with legacy systems”. The recommendations are:
Transition Nokia into a hybrid structure with differentiation of the different engineering functions integrated in a reciprocal fashion to allow maximum collaboration within the several groups.
Set systems and processes in place to transform Nokia's clan and hierarchy culture into an adhocracy culture with an external market focus.
Improve HR and people management to attract and retain the best talent and also increase alignment between the needs of the people and the organisation.
Replace or transform Nokia's risk averse, leadership to be market aware, risk tolerant and aggressive with a clear focus on results and deliverables.
Develop and improve its control systems to influence...