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How has the environment favored the development of Nokia?

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ORGANIZATIONS AND HUMAN RESOURCE MANAGEMENT Assignment 1 Chapter case: Nokia Students: Kennari: Einar Svansson Case questions 3.1 How has the environment favored the development of Nokia? We use the PESTEL factors to assist us in identifying and arranging the environmental influences on Nokia's evolution & development. To ease the reading of this list it will be sorted according to the PESTEL model. P olitical influences on both Nokia, and the sector in which it operates have been significant. A few years ago when mobile technology had not yet reached the broad distribution that we are familiar with today, Nokia's two competitors had a considerable advantage over Nokia in both brand recognition and market share. With a growing number of electronics emitting electromagnetic signals, the EU decided to standardize the GSM system as a general cell phone standard. This event evened the competition out for Nokia, since its competitors had to start over. In addition to this, the Finnish government had taken a leading role in creating a suitable legal environment for telecommunication companies. E conomic influences on the sector of mobile telecommunications have been immense. ...read more.


And to be able to stay on top of the fast moving market they need to have creative employees, if the control is to much all innovation can be suffocated, so the work place has to be flexible to motivate innovation. Case questions 3.3 Use Porter's five forces model to outline the competitive environment of the industry. Which of these factors may have contributed to Nokia's success? Which PESTEL factors are most affecting the development of the industry? Though Nokia is by far the largest mobile manufacturer with about 40% market share, its biggest competitive threat probably comes from its competitive rivals, such as Samsung (14% m.s.), Motorola (14% m.s.) & Sony Ericsson (9% m.s.). Mobile phones are by nature monogenic products so the customer's decisive factor for buying mobile phone could be its appearance or style rather than quality & function. Actually this is something Nokia realized long time ago and accounts for a big part of its success. Often suppliers have a considerable amount of bargaining power. In the case of Nokia for this to be true their suppliers will have to be in the group of super-suppliers like Intel, Samsung & Texas Instruments or have some other specific market power, like patented technology. ...read more.


The company cannot run sufficiently whit out good employees. It is wary important to take god care of the staff. Pay them decent wages. Make the work environment worth striving for and stable, have a layoff system that is stable. Have a strong culture that motivates them. Listen to them. Structure the company, decentralization in some departments. 2. Nokia has a history of reading the market well. Selling mobile phones that are fashionable and have user interface that are user friendly The managers have to continue developing the product for the costumer and answer the demand on the market. Supply them with different kind of product low price and hi class. Have service and quality control. Providing a product that is reliable and fashionable. Invest in innovation. Have focus groups of market research. 3. Have a loyal relationship whit them, and good communication, Create simple and stable communication channels. Quality control. Grow by performance. Nokia needs to perform and grow so the suppliers won't go to another customer. Pay them reasonable price. Heimildir Boddy, D. (2008). Management: An Intorduction. [4. �tg�fa]. Spain: Mateu Cromo. Nokia Group. (e.d). Nokia supplers and evironment. S�tt 12. September 2008 af http://www.nokia.com/NOKIA_COM_1/Corporate_Responsibility/Environment_/Public ations/env_guide.pdf IDC. (2008, 25. Jan�ar). Press release. S�tt 12. September 2008 af http://www.idc.com/getdoc.jsp;jsessionid=LTQOIV4H4ODDCCQJAFICFFAKBEAUMIWD?containerId=prUS21053908 ?? ?? ?? ?? ~ 1 ~ ...read more.

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