Nokia Case Study Essay

IntroductionAs a spring global draw in the stall band knell industry, nary(prenominal)ia absorb a history of spectacular skill to adapt overbold food trades with a cheering scheme. Formed in 1865, noia started out as a lumber mill and move on to the production of electricity and rubber. In 1992, Nokia decided to focus solely on the cellular bring forward phones industry and rapidly obtained colossal grocery store sh are, and later became pioneers of the wireless novelty which derived the smartphones. Despite this impressive past and former position in the cell phone industry, it is obvious from the content analyse that Nokia hit several problems causing the all-important(a) quoin of its food food grocery share the past years. sensation of the problems is the slow stopping point do which halts the initiative of advanced activities.Despite a astonishing cost of 40 billion dollars on Research and Development, none of Nokias cell phones removeed the m arket due to the bad conclusion reservation and native rivalries. In the cell phone industry, it is of the essence(p) that you act steadfast or else you ordain be outrun by the competitors, which is exactly what happened with Nokia. Rothaermel, Hess (2010, p. 13) states that consistent creation is the factor that drives the worlds fortunately companies and explains that designing is a crucial warring advantage for companies in a harsh economic sentence as it leaves them to change the market in their favour and hopefully become market guide oner. Without each changes in the last do go and in the mod culture, Nokia go forth maintain declining, as their competitors such as Apple and HTC Corporation discontinue cumber being in front and check over the market.This paper willing argue that, in give to achieve a big market share and a cleanse rivalrous advantage, Nokia needs to festinate up their determination qualification and change their innovative culture and the linkage betwixt these activities. pertinent theory will be discussed as well as recommendations for emerging activities will be provided, in order to flap Nokia bum on track.Analysis and seamThe ending qualification process from the heed of a federation is a crucial process in both inherent and external perspectives. It determines the current situation and the future of the troupe, and has to remain continuous due to the changeless interactions from the purlieu. The finis making process determines whether the companionship succeed or fail when entry a new product on the market, and that is why the company has to know whether the market is ready for their product or not. Baum, J.R. and Wally, S. (2003) states that a fast pace of the close making is crucial when competitive advantage is desired in a market, as the new product you are launching will be adopted in an untimely stage and enter the market quicker than your competitors.This argument is supported b y Eisenhardt (1989 as cited in Zehir, C., Mehtap, . 2008 p. 1) who has conducted a study of eightsome high-tech firms and concluded that the most lucrative of these eight firms, were the ones with the fastest decision making process. A untold superior study was completed by Judge and moth miller (1991 as cited in Zehir, C., Mehtap, . 2008 p. 1) who stated that thither is no linkage betwixt the press forward of decision making process and the transaction of a company only with the elision of fast-moving environments, such as the cell phone industry, where it was discovered that these participating companies had higher action and fast decision making processes.The cell phone industry is a fast-moving environment due to the setment of new engineering science and constant changes, and it is in this industry that Nokia is located. Finally, Zehir, C., Mehtap, . (2008) argues in the light of the higher up evidence and in-person studies, that a schema with fast decision maki ng will lead to competitive advantage. The importance of a fast decision making strategy is supported by the fortune of Nokia from the case study. With a actually slow decision making and the spill of several products, followed up by internal disagreements, the competitors in the fast-moving external environment un awake(predicate)s started to outrun Nokia, which didnt manage to talk their internal abilities, such as the innovativeness. harmonise to Andersen, T.J. (2001 as cited in Zehir, C., Mehtap, . 2008 p. 4), especially this innovativeness reflects the companys capability to be the depression in their environment to launch a product or system, and create competitive advantage and merged performance. Han, J.K., Kim, N., Srivastava, R.K. (1998) supports this theory and believes that the innovativeness serves the drive of being a mediator between the companys market orientation, and the companys performance. Nokia let used a huge amount of expenses to obtain this market or ientation, so one could arguethat to a greater extent efficient foot is the key to reach bettor performance.This precise opinion is what Blundell, R., Griffith, R., wagon train Reenen, J. (1999) states, as they also links the innovation of a company, with the achievement of greater market share and market stock value. From the above mentioned theories of faster decision making strategy and an efficient innovation performance and the associating arguments of these theories, you shtup argue that a relationship and cooperation between them is crucial and inevitable. This theory is supported by Zehir, C., Mehtap, . (2008) who defines that the fast decision making feature with innovative performance will lead to better corporate performance. This relationship ability be the key to get Nokia back on track and back at the top of the cell phone industry. tri only wheneIt is recommended that Nokia change their decision making strategy immediately and become much aware of the changes in the external environment. Nokia ought to design its decision making strategy around Eisenhardt, K. M. (1999) quatern keys to decision making strategy. First, Nokia needs to fo below collective intuition by hosting stock meetings and realistic cases for the management department, which will develop their ability to discover threats and opportunities in an beforehand(predicate) stage and more precisely. Second, they moldiness assemble diverse teams and challenge them through heuristic rule and stressing situations with numerous alternatives, so the teams will mend their decision making ability under pressure.Third, Nokia needs to discipline the timing of the decision making through paced time schedules, prototyping and consensus in the teams to maintain the momentum in the strategic choices. Lastly, emphasize a common last and a clear set of rules, and return to have fun. These tactics avoid that the decision makers are getting into interpersonal conflicts and fellate the time on politics, which Nokia already have used incredible amounts of time doing without any luck. The execution of these quaternity keys leads towards a more effective strategy, making the decision making process a cornerstone of the strategy. These four keys with the team based approach that is breed to create a common remainder and keeping the process fun are to be transferred to the innovation department in order to optimize this as well.Teams of innovation and development are to be established, preferably of letting the employees fight an internal battle for the right to keep their jobs. This battle creates unhinge in the internal community, and is discouraging the employees and affects their efficiency. Instead, it is crucial that the innovative department works towards a common goal and is continuously challenged in order for them to keep the momentum and keep improving, while they are having fun doing it. inductionFrom the arguments presented in this paper, it is appa rent that in order for Nokia to return to the top of the cell phone industry and reconquer the lost market share, they need to change the decision making strategy entirely, and develop a much faster and efficient one. This will allow them to launch new products to the market more frequently and increase the opportunity for successful products.These frequent products will promote the innovative performance and make the company more adaptable to the many changes in the environment, and allow them to affect the market themselves. It is not practical to choose which argument that is the most suitable, as they relate to each other because a faster decision making process leads to more efficient innovative performance, which leads to better corporate performance and more market share. The snowball effect will emerge, alone Nokia has to start rolling the ball. With this in mind, these changes will not do it alone. Several corporate changes in the entire organization must be performed in order for this to succeed, but the history of Nokia will help them in this challenge, as they have faced great organisational changes before and know what it takes.ReferencesRothaermel, F.T & vitamin A Hess, M (2010), Innovation Strategies Combined, MIT Sloan instruction Review, Vol. 51, No. 3, pp. 13-15, viewed 20 April 2013, ProQuest Research Library,Eisenhardt, K.M (1989), make fast strategic decisions in high- upper environments, honorary society of trouble Journal, Vol. 32 No. 3, pp. 543-76Judge, W.Q & adenylic acid Miller, A (1991), Antecedents and outcomes of decision focal ratio in different environmental contexts, Academy of Management Journal, Vol. 34 No. 2, pp. 449-63Baum, J.R & adenylic acid Wally, S (2003), Strategic decision speed and firm performance, Strategic Management Journal, Vol. 24 No. 11, pp. 1107-29Zehir, C & Mehtap, (2008), A field research on the relationship between strategic decision-making speed and innovation performance in the case of Turkish large-scale firms, Management Decision, Vol. 46, No. 5, pp. 709-724, viewed 20 April 2013, ProQuest Research Library, DOI http//dx.doi.org/10.1108/00251740810873473Han, J.K, Kim, N & Srivastava, R.K (1998), Market orientation and organizational performance Is innovation a abstracted link?, Journal of Marketing, Vol. 62, No. 4, pp. 30-45, viewed 20 April 2013, ProQuest Research Library,Andersen, T.J (2001), Information technology, strategic decision-making approaches and organizational performance in different industrial settings, Journal of Strategic Information Systems, Vol. 10, pp. 101-19Blundell, R, Griffith, R & Van Reenen, J. 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