Nokia Case Study Essay

unveilingAs a power global attraction in the carrel yell assiduity, Nokia have a history of great ability to adapt sweet grocerys with a solid strategy. Formed in 1865, Nokia belonged break as a lumber mill and travel on to the increaseion of electricity and rubber. In 1992, Nokia persistent to focus solely on the cell hollers manufacture and rapidly obtained great commercialise sh be, and later became pioneers of the radio revolution which derived the smartphones. Despite this impressive prehistoric and former position in the cell phone industry, it is diaphanous from the effect study that Nokia have several problems do the authoritative recession of its trade share the past years. One of the problems is the lento close devising which halts the porta of planal activities.Despite a staggering appeal of 40 billion dollars on look into and Development, no(prenominal) of Nokias cell phones reached the market place due to the corky end reservation and i nternal rivalries. In the cell phone industry, it is crucial that you act desist or else you allow be outrun by the competitors, which is incisively what happened with Nokia. Rothaermel, Hess (2010, p. 13) states that consistent neuter is the factor that drives the worlds successfully companies and explains that basis is a crucial free-enterprise(a) advantage for companies in a harsh economic time as it allows them to change the market in their favour and hopefully turn market leader. Without any changes in the closing making military operation and in the modernistic culture, Nokia go forth corroborate declining, as their competitors such as orchard apple tree and HTC Corporation exit keep be in front and control the market.This paper will deliberate that, in ordinance to achieve a larger market share and a better private-enterprise(a) advantage, Nokia indigences to repair up their last making and change their innovative culture and the linkage betwixt these ac tivities. Relevant theory will be discussed as well as recommendations for future activities will be provided, in order to render Nokia back on track.Analysis and ArgumentThe finish making bidding from the circumspection of a company is a crucial edge in both internal and external perspectives. It determines the current situation and the future of the company, and has to remain perpetual due to the constant interactions from the environs. The finding making process determines whether the company succeed or fail when entree a recent harvest-feast 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 truehearted pace of the decision making is crucial when competitive advantage is want in a market, as the new product you are sending will be adopt in an early stage and enter the market quicker than your competitors.This argument is supported by Eisenhardt (1989 as cited i n Zehir, C., Mehtap, . 2008 p. 1) who has conducted a study of eight high tech firms and concluded that the most profitable of these eight firms, were the ones with the quick decision making process. A more topnotch study was completed by Judge and moth miller (1991 as cited in Zehir, C., Mehtap, . 2008 p. 1) who stated that there is no linkage between the speed of decision making process and the performance of a company alone with the exception of prodigal-moving environments, such as the cell phone industry, where it was discovered that these participating companies had higher performance and fast decision making processes.The cell phone industry is a fast-moving environment due to the beatment of new technology and constant changes, and it is in this industry that Nokia is located. Finally, Zehir, C., Mehtap, . (2008) argues in the light of the above evidence and personal studies, that a strategy with fast decision making 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 very slow decision making and the sacking of several products, followed up by internal disagreements, the competitors in the fast-moving external environment suddenly started to outrun Nokia, which didnt manage to continue their internal abilities, such as the innovativeness.According to Andersen, T.J. (2001 as cited in Zehir, C., Mehtap, . 2008 p. 4), especially this innovativeness reflects the companys aptitude to be the first in their environment to launch a product or system, and manufacture competitive advantage and corporate performance. Han, J.K., Kim, N., Srivastava, R.K. (1998) supports this theory and believes that the innovativeness serves the purpose of being a mediator between the companys market penchant, and the companys performance. Nokia have use a huge amount of expenses to obtain this market orientation, so one could arguethat more efficient innovation is the key to reach better performance.This nice opinion is what Blundell, R., Griffith, R., Van Reenen, J. (1999) states, as they also cerebrate the innovation of a company, with the achievement of greater market share and market stock appraise. From the above mentioned theories of scurrying decision making strategy and an efficient innovation performance and the associating arguments of these theories, you can argue that a descent and cooperation between them is crucial and inevitable. This theory is supported by Zehir, C., Mehtap, . (2008) who defines that the fast decision making combined with innovative performance will lead to better corporate performance. This relationship might be the key to get Nokia back on track and back at the top of the cell phone industry. RecommendationIt is recommended that Nokia change their decision making strategy immediately and become more aware of the changes in the external environment. Nokia ought to normal its decision making strategy around Eisenhardt, K. M. (1999) quaternion keys to decision making strategy. First, Nokia needs to establish incorporated intuition by hosting regular meetings and realistic cases for the management subdivision, which will develop their ability to discover threats and opportunities in an early stage and more precisely. Second, they must suffer diverse teams and challenge them through heuristic and stressing situations with numerous alternatives, so the teams will improve their decision making ability under pressure.Third, Nokia needs to discipline the quantify of the decision making through paced time schedules, prototyping and consensus in the teams to maintain the momentum in the strategic choices. Lastly, show a common goal and a have set of rules, and remember to have fun. These tactics avert that the decision practicers are getting into interpersonal conflicts and wild the time on politics, which Nokia already have utilise incredible amounts of time doing without any luck. The execution of these quartet keys leads towards a more effective strategy, making the decision making process a cornerstone of the strategy. These quaternion keys with the team based approach that is striving to create a common goal 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, instead of permit the employees fight an internal battle for the right to keep their jobs. This battle creates disorder in the internal community, and is discourage 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. ConclusionFrom the arguments presented in this paper, it is apparent that in order for Nokia to return to the top of the cell phone industry and reconquer the lost marke t 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 betrayly 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 accomplishable to choose which argument that is the most suitable, as they name 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, further Nokia has to start rolling the ball. With this in mind, these changes will not do it alone. Several corporate changes in the entire administration must be performed in order for this to succeed, but the history of Nokia will help them in this challenge, as they hav e faced great organizational changes in the beginning and know what it takes.ReferencesRothaermel, F.T & Hess, M (2010), Innovation Strategies Combined, MIT Sloan counsel Review, Vol. 51, No. 3, pp. 13-15, viewed 20 April 2013, ProQuest seek Library,Eisenhardt, K.M (1989), Making fast strategic decisions in high-velocity environments, Academy of commission Journal, Vol. 32 No. 3, pp. 543-76Judge, W.Q & Miller, A (1991), Antecedents and outcomes of decision speed in different environmental contexts, Academy of heed Journal, Vol. 34 No. 2, pp. 449-63Baum, J.R & Wally, S (2003), Strategic decision speed and firm performance, Strategic centering Journal, Vol. 24 No. 11, pp. 1107-29Zehir, C & Mehtap, (2008), A product line 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 inquiry Library, DOI http//dx.doi.org/10.1 108/00251740810873473Han, J.K, Kim, N & Srivastava, R.K (1998), Market orientation and organizational performance Is innovation a absent link?, Journal of Marketing, Vol. 62, No. 4, pp. 30-45, viewed 20 April 2013, ProQuest Research Library,Andersen, T.J (2001), cultivation 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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