Economics and Changes

Only available on StudyMode
  • Download(s) : 238
  • Published : March 7, 2013
Open Document
Text Preview
Nokia not so Mobile?
Write a brief account of how different elements of the temporal and PEST environments interact to influence the situation described in the case. Change is unavoidable in the existence of an organization. Nowadays, most of the organizations in the business world are facing changing business environment. There is no way to avoid either change or die. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labor market environments. The case in this assignment is Nokia, the Finnish company, faced problem because of changing customer tastes, new technology and stronger rivals. In 1865, Fredrik Idestam established a paper mill on the Nokianvirta river bank in south-western Finland. Within two years, it took a cable company and rubber firm to set the new Nokia Corporation on the electronic path. It has become one of the world leading suppliers of mobile and fixed telecom networks including customer services. However, its share in European market beginning to decline and the share in native country decreased about 13 per cent within a few months. For organizations, there are a number of factors both internal and external which affect their operations. Any change in these factors need changes in an organization. Each organization has goals and responsibilities related to each other in the environment. The present day environment is dynamic and changes in (PEST factors) social, political, economic, technology, and legal environment force organizations to change themselves. Organization must change in order to survive in the changing environment. Political and legal changes

Political and legal factors broadly define the activities which an organization can undertake and the methods which will be followed by it in accomplishing those activities. Any changes in these political and legal factors may affect the organization operation. Political changes relate to...
tracking img