1-Proposed Organisation
Nokia
2-Terms of Reference
A crisis is a significant business disruption which stimulates extensive news media coverage. The resulting public scrutiny will affect the organization’s normal operations and also could have a political, legal, financial and government impact on its business. (Lecture slide) There are three objectives of Crisis management. The first goal of crisis management is to identify the problems that caused the crisis – which is not always straightforward. In fact, it may be a mystery how it got started. It is, therefore, crucial to study and understand the issues in depth so that all parties can better understand the chaos caused by the conflict. Neither side should withhold information in its efforts to achieve this critical goal, and both sides must have a non-judgmental tone when investigating the source of the problem. The second goal of crisis management is to manage information flows. News of the conflict is always expected, especially in the Internet age and on social media sites. If harmful events are things that affect the public, then it’s best to prepare a press release or hold a press conference as a first step to cool down the panic they may have generated from the conflict. Inform the public or anyone affected of what steps the company has taken to mitigate the problem. Be transparent. The third goal of crisis management is to understand the adversary, that is, to assume it is someone or a group, not something. If opponents think they have no leverage, then they believe the talks are pointless – the crisis will escalate. However, they may have advantages you may not know about. It’s best to resolve the issue on your own, rather than asking them so that once you find it, you’ll know how to negotiate in a way that both parties are comfortable with. (Kessler, S. 2017).
3-Introduction to the Organisation
The lack of entrepreneurial drive that allowed Nokia to shape the industry a decade ago is frustrating, and in 2004 Nokia’s chief executive overhauled the matrix structure in which a ” vertical” “product line and a common” “horizontal” “platform provided key Shared resources. Research, software development, manufacturing, marketing, and sales. Nokia is part of an ‘umbrella’ corporation. Nokia’s crisis is affecting themselves so much. Nokia’s crisis pattern is Technological crises.
4-Introduction to the Crisis
The trigger of the crisis as external elements. Nokia’s early innovation and success depended on the symbiosis between its network and phone businesses. The combination was so successful that in the mid-1990s Nokia was unable to meet demand and its supply chain was on the brink of collapse. Managers act quickly and commission enterprise resource planning systems that allow them to scale production more quickly than their competitors. Nokia did wrong management to not focus on innovation. On the software side, it is committed to its outdated device-centric operating system, Symbian, it needs to develop a new code set for every new phone model, and it is loathed by app developers everywhere. In addition, at the end of the decade, major technological disruption from Apple and Google is gradually redefining platforms, applications, and ecosystems. Both of these two elements obviously show Nokia went the wrong way in organization development. Finnish government and Nokia itself become the key stakeholders affected by this crisis. While Nokia’s problems will not be obvious to the outside world for the next eight years, the matrix reorganization marks a critical turning point in its demise: it led to the departure of key members of the executive team and the consequent deterioration of strategic thinking and the loss of informal integration across business lines.
The lack of experience and skills in matrix management quickly led to increasingly intense resource negotiations, leading to slower decision-making. By measuring and rewarding new product releases, the problem of product diffusion is strengthened.
Combined with pressure to reduce costs, this leads to a decline in quality. While infighting is characteristically generic, Nokia’s executive team is focused on rearranging the proverbial recliner at the time of the Titanic’s sinking – the belief that an unnecessary and disruptive restructuring of the new structure, rather than new strategies and better processes, will solve the company’s problems. From 2004 to 2013, when it was about to go bankrupt, Nokia restructured four times. Obviously, this turning point made Nokia worse and lead it to agree to sell its mobile phone business to Microsoft for €5.44 billion. (Doz, Y. and Wilson, K. 2018)
5-Future Crises and Response
Nokia is still facing many potential threats like alternatives, and products positioning.
As an application of the most advanced technology (chips, hardware, etc.) rather than a developer, Nokia is likely to face the threat of alternatives in a certain field. Furthermore, Nokia’s buying crowd, dealers are usually not easy to judge the price cycle of new technology, in order to reduce risk, usually form an alliance, and strive for lower prices. Coupled with fierce competition in mobile phone products in the same industry, product prices are under pressure. Therefore, Nokia needs to take advantage of its unique advantages, improve products from all aspects, meet customer needs, establish product information, and unique image positioning. For example, the Internet in your pocket, creating a real portable office, and so on. To occupy the market through a good organizational image and to be your own product.
Nokia has been decadent for a long time. There has been a re-entry trend recently with 5G. 5G is a new generation of radio systems and network architecture. It provides extreme broadband, ultra-strong low latency connections and large-scale networks to support many different use cases and business models. For mobile operators, 5G is achieving a new level of network economy and a leap in network efficiency. Nokia declares it can help people prepare for 5G now. (Nokia Networks. 2018).
Click to read Crisis Management: A Case of Nokia-Report
6-Reference
Kessler, S. (2017). Three Objectives of Crisis Management. [online] Bizfluent. Available at: https://bizfluent.com/info-8157406-three-objectives-crisis-management.html [Accessed 28 Oct. 2018].
Doz, Y. and Wilson, K. (2018). Why the mighty fail – lessons from Nokia. [online] South China Morning Post. Available at: https://www.scmp.com/business/companies
/article/2131615/why-mighty-fail-lessons-nokia [Accessed 28 Oct. 2018].
Nokia Networks. (2018). Get ready for 5G. [online] Available at: https://networks.nokia.com/5g/get-ready [Accessed 28 Oct. 2018].
+447462439809