Environmental and Organizational Audit of Nokia

Environmental and Organizational Audit of Nokia fancy up analytic thinking as the assessment of the internal strengths and weaknesses and external opportunities and threats for a bloodline in a disposed(p) situation. It clarifies issues and problems but it does not score decisions for a handicraft.S StrengthsW WeaknessO OpportunitiesT ThreatsPOSITIVE banishINTERNALStrengthsFirst family to provide spry phone technology. spirited capacity switches.Strong management policiesProviding a wide range of Models or so the globe strain.New harvest-times and technologyWeaknessesLack of Unity between different departments. They consider each other as escapeing from bopledge, stupid and inexperienced. unretentive whole tone equipments causing dis-interest of nodesInstallation in armored cars was a problem.Switches were bountiful and expensiveEXTERNALOpportunitiesHigh competitive surroundings, this leads to more customersMass tradeHigh Sales since the point of intersection is bl eak and preposterousExpand line of elaborateThreatsMajor competitors, namely NEC, Motorola, Samsung, Sony Ericson, Sony iPod etc.Competitors offering financing solutionsSmall switches of competitors and specious in priceIntense competition trick up summary of NOKIAPESTEL analysisPEST analysis is defined as a management technique that en fittings an analysis of intravenous feeding external factors that whitethorn impact the manageance of the organization. These factors are Political, Economic, Social, and Technological. PEST analysis is often conducted using brainstorming techniques. It offers an environment-to-organization locating as opposed to the organization-to-environment perspective provided by SWOT.PESTEL analysis of NokiaPolitical Political entities played a critical role in the success of Nokia switches line of reasoning,as a foodstuff are deregulated some(prenominal) operators and manufactures are free toAct independently of government intervention in countr ies like Pakistan and india.Where partial regulation exist, government intervention does not take place.Economical In recite to start the winding telephony backup Nokia needed a high market share, which they achieved by selling in pakistan and various countries .This increased the number of customers, thusly increasing market share. aft(prenominal) the company got substantially popular, major blood linees started to co-ordinate with Nokia.Social Consumer demanded for red-hot functions and designs magical spell Nokia was not successful in providing that, a banker expressed they are just now a bunch of engineers who couldnt care slight what the phone looks like. Also on the other hand consumer complained about the low battery life.Technological thither have been many global advancements in technology suchAs mms,wap,Bluetooth,cameras etc.the asian markets are more technologically thanTheir European counterparts for example in 2002 just 4% of phone had cameras.whereas in asia 90% did it.Environmental factors include, clime, and climate flip, which whitethorn especially affect nokia industries. Furthermore, growing cognisance to climate variety show is affecting how nokia companies operate in the altogether models and intersection points-it is both creating modern markets and diminishing or destroying brisk ones.Legal factors include discrimination law, consumer law, antitrust law, example law, and wellness and safety law. These factors plenty affect nokia. Company operates, its cost, and the demand for its ware.Reason for choosing the position organizational and environmental audit and strategical techniqueS.W.O.T analysis The primer coat for advising SWOT analysis to nokia in the contemporary downfall situation is that for decades SWOT analysis has been a straight forward and basic model for providing strategic direction to the organization which conducts it. This is done by accessing the strength, weaknesses, opportunities and threats o f the particular business entity. Individuals at nokia can also perform SWOT analysis in rig to key out their intrinsic qualities that can dish up them at workplace. SWOT analysis is the most effective power tool nokia can exercise in mark to optimize their career. The result of SWOT analysis willing supporter the professionals identify their qualities and minimize their obstacles.PESTLE analysis This was advised to nokia for conducting the environmental analysis, it was considered of the essence(p) as it is a key method of strategic analysis in ordain to study the microenvironment of the business. These include Political factors such as policy-making st baron, trading agreements and economic and taxation policies. Economic factors such as interest, employment levels and economic trend. Social factors such as religion demographic factors and ethnical factors. Technological factors such as innovation, manufacturing cost, quality of product etc. finished the PESTLE analysis nokia will be able to understand the wider business environment i.e. understanding the international market and trends. One of the main case why conducting PESTLE analysis for nokia is eventful is that it can raise awareness of forthcoming threats and will jockstrap nokia to anticipate future difficulties and take withd warm actions to avoid and minimize them.STRETEGIC POSITIONING TECHNIQUESAnsoff matrixThe Ansoff Growth matrix is a tool that serve ups businesses decide their product and market growth strategy.Ansoff Matrix of NokiaAnsoff matrix can help Nokia identify their future direction and strategic exploitation. It may help Nokia find out the prime(a)s available in the market in pronounce to use their strategic capabilities. Currently in names of the case, Nokia is busy in toil of many existing products and one new product which is mobile telephone. This may sort out Nokia into three sections of an Ansoff Matrix. These are explained as followsExisting product and existing market grocery penetration For the current production of various radio and telephone equipments, including AXE chip.Existing product and new market grocery development For showing new markets including USA, Hungary, Pakistan Indian, and nerve center east and all over the globe.Existing market and New Market Product development By launching Mobile telephone trunk in their existing market.Ansoff Matrix This is a useful strategic placement technique advised to nokia due to the fact that it helps in suggesting the business attempts to put out on a new or existing market or whether on the markets new and existing products. For the market development Ansoff can help nokia identify new geographical areas, for example where to sell the existing switches and radio equipments. They can seek out different pricing policies to attract customers. in addition in the product development stage they can develop new competencies and modify their products on the basis of consumer app eal. On the basis of these qualities it was advised to use Ansoff matrix as a strategic emplacement technique to identify their future direction.STRETEGIC THINKING AND PLANINGIn the view of F. Graetz, strategic thinking and provision are distinct, but interrelated and complementary thought processes that must swear and support one another for effective strategic management.(F Graetz, (2002) Management Decision, pg 456, entropy accessed July 2009)The main heighten of strategic thinking is to lay down unique and invaluable opportunities for future success of a business. This is conducted by a creative and incitive dialogue between people who effect the direction of a business. strategical thinking must take into accountSkills and competencies Strengths of the companyHow can these strengths be used to create a competitive advantageWeaknesses of the company that derives it vulnerable.Products and offerings Portfolio of offering product, price and services in the marketIdentifyi ng the overlaps caused among offerings unequallednessBrands associated with offeringsCompare the place with competitors.Industry and its environment Identifying the overall economic situation of the country in which company is competingStructure of the industryCurrent position of the industry and where it wants to be in future.Link of the industry with other people(stakeholders) guests and marketTarget customerNeeds of the customersCompetitors Nature of competition in the particular industryUnique strengths and weaknesses of competitorsSimilarities and differences between the company and its competitorsBuyers and suppliers Identifying the companies that call for to be worked with in order to make and sell the products the company is offeringRelative power compared to the companyTheir strengths and unique pointsGAP ANALYSIS AND STRATEGIC PLANE FOR NOKIAProduct DevelopmentAn beguile intend needs to be conducted for the mobile telephony business which lies in the product developmen t section of the Ansoff matrix. The product and market are is relatively new in that locationfore a plan for a successful development of the product needs to be use. The plan must give nokia the ability to achieve a high market share. Although they are the first company to engage this business but the main problem which they face is their unfavorable position in technology, secondly their switch size are large and the competitors on the other hand are making littler chips.Most alphaly size and shape of the mobile phones are not up to the choice of customers, moreover they need to focus on the design if they want to encouragement up their sales. Company is already going through with(predicate) a pecuniary crisis and on the other hand competitors are providing financial solutions in order to damage nokia. Management needs to issue new shares in the market in order to level up with the market trend. So public lecture on a wide scale, in the developing market, nokia needs to en ter the market with a straitlaced plan up to the expectations of customers in order to enhance the career of the product. This can be done by adding new features, technology advancement and revising their policies again.Market penetrationFor nokia this includes the current products in the current market, these include various radio and telephone equipments, including AXE switch. This includes the ordinary telecom, which is the biggest part of nokia., later known as ERA when it moved towards the mobile telephone business. Company at the existing stage needs to plump their number of products and its features since the competitors on the other hand have moved towards smaller reliable equipments industry. They need to gain new customers by suitable publicizing and loyalty programs. In a mass market where chances for upward displacement in sales are high, nokia also needs to focus on their product, and develop them on the basis of customer needs and the market trend.Market developme ntThis is when the company tries to enter a new market with their existing product. For nokia on a global aspect the company would be able to achieve a high margin of sales since the number of customers will increase. Expansion should include business in the Western countries and the Middle East. In a competitive market where competitors are stretch forthing globally, nokia should also plan to expand in order to level up with their competitors. They cant afford to blockage back with the trend since the new technological advancement may lack them back with the trend. So for the market development section, it is to be advised for a plan on expanding the business in other countries in order to get excess to new customers.EVALUATION OF POSSIBLE ALTERNATIVE STRATEGIES AND ADVICE smart FUTURE STRATEGYThe company had major weaknesses which were advised to be lick through the help of appropriate planning .Planning was conducted on the basis of important strategic analysis this included SWOT analysis, PESTEL analysis and Ansoff matrix. However there are certain other strategies which can possibly be put oned on nokia. These strategies are summarized as followsLean production technique irradiation Simpson defines lean production as the term used to describe the whole concept of trying to manage the production process more efficiently with the minimum of resources. (Peter Stimpson, business studies, data accessed July 2009).Considering the financial crisis which nokia is going through, it is appropriate for nokia to work through Lean production technique since the main objective of this technique is to overstep the waste of resources and time. nokia is already facing inferiority in technology, thus a lean production will help them manage their adequate resources in an appropriate manner in order to develop new products with less complexity in production process.Job enlargement This is a term used to attempt any particular increase in the orbital cavity of the job by broadening and deepening the tasks. Reason for conducting this strategy is to bastinado the financial problems and quality issues faced by nokia, company can implement this strategy by branding the amount of task given to important workers, thus on the other hand terminating the unwanted employees. This may help in cutting the future costs faced by the business and improve the quality and performance.Keeping substantial inventory Inventory includes raw material, work in progress and finished goods. The reason why nokia needs to keep substantial inventory is that due to time lags in the fork out chain management, there can be late delivery of stock, thus keeping certain amount of inventory is necessary. As mentioned in the given illustration, when company do their first deal with Saudi Arabia. The Saudi order included 8000 mobile stations, this put pressure on the company since no terminals were left to sell in the home market.Team approach This is when production is organi zed in such as way that groups of workers complete a substantial amount of work all together. Currently in nokia workers perform their own task on the basis of specialization, allowing them more empowerment at work. This have lead to disunity between workers, since most of them do not know what work each department is engaged in. A team work approach will also lead to important discussions relates to the performance of business and its various departments. Important advises can be given to various departments through this approach which indirectly will improve quality and performance. fiber ascendence The term quality does not necessarily focus on the best that can possibly be produced, a high quality product is one which best fulfills the particular needs of the customers at a credible price on the basis of consumer needs. The reason for improvement in nokia mobile quality is due to the fact that it may easily help them create consumer loyalty, also on the other hand will save t he costs associated with complaints made by customers. Most importantly if nokia works on their product quality by improving their functions, they may achieve a nightlong product life cycle.BEST FIT FUTURE PLAN FOR NOKIA baseAfter studying the organization on all the aspects of a proper business strategy and business analysis, a final future plan is to be advised for nokia .Keeping in mind the internal and external environment of the organization and the future analysis of the market, a strong strategy was made for the future of nokia business. This plan is summarized as followsBefore every activity takes place, it should be kept in mind that nokia has a high finance.Issue of more shares may easily boost up the finance.Secondly the technological equipments should be replaced with new ones, following the hiring of skilled labors in order to reduce training costs.Customer needs and market trends need to be kept in focus because customer has the buying objective and if their meets ar e not fulfilled, then they may be squeeze to change their brand.Costs needs to be reduced, this can be done by the use of Lean production technique.Quality needs to be managed with the implementation of lean production since a reduction in cost can have an indirect effect on quality of the product.One important future plan which can help nokia is to make a small team of experts, who only work for future plans and ideas for business, looking at an approach at least two old age ahead of current market trends.The strategic plan was made on the basis of all previous organizational and environmental audits and strategic positioning techniques. An approach to previous analysis was also taken into consideration.Alternative strategies weigh and Emergent strategiesDELIBERATE STRATEGIES Any strategy that is intestinally planned for running the business successfully for example nokia might have deliberately wanted to change the models.EMERGENT STRATEGIES Are those that occur unexpectedly n aturally .for example scratch up cause unexpected decrease in sale because shops are forced to close down.Future strategies mokia future strategies They focuses on different shapes and improving our quality products. because their competitors are too much strong .nokia employees thinking about his new models. when they launch a model . Then They suddenly starts working on another model.