Nokia Case Study

Topics: Organizational structure, Organization, Organizational culture Pages: 5 (1459 words) Published: May 5, 2013
Organisation structure at Nokia

Nokia is an international producer of computer software, internet and telecommunication equipment, it is one of the major candidates competing in the smart phone industries (Studymode2013). Dominating the market around 15 years, Nokia was perceived as the more dominant and relentless brand within its industry. However, due to a number of problematic issues within the company, Nokia was forced into making implosive and drastic design resulting in the “down fall” of the company. One of the major issues which contributed to Nokia down fall was the lack of organisational structure within the Nokia organisation. The organizational structure had become so convoluted that it was hard for the teams to work as a coherent group being consistent in their products as information often took long to process and correspond too. The lack of organisational structure within the company left Nokia exposed to external rivalry such as Apple and Samsung, as crucial decisions were either made too early or too late.

Another issue is that separate departments within the organisation focused on different goals and objectives, as other sectors were more concerned politically instead of focusing on the future development of the company. Organisational structure and innovation are key component in the success or prosperity of a company and can be the difference between being prosperous and coming up short. This report will argue that Nokia’s organisational structure was of a poor quality and led to poor decision making and lack of innovation. Furthermore, this paper will provide recommendation for implementing a stronger and more effective organisational structure.

Analysis a Critical Evaluation

The organisational structure is an important foundation, for organising and managing function within the company; as it establishes a system of task, workflow, reporting relationships and communication channels that link to the work of diverse individuals and groups (Schermerhorn, John, R, 2011, 244). Chimay, Catherine and Malik (2002) agree, placing emphasis on team structure being an absolute essential component of an effective organisational structure. It has been well documented (Lambert, E, G, Hogan, N, L, Allen, R, I. 2006; Stok, K, M, MArrkic, M, Bertoncelj, A, Mesko, M 2010) that successful organisation have gain competitive advantages through an effective organisation structure. However, there is no ideal structure for an organisation, as each company will have to implement a structure which caters for the personal needs. Organsational structure has been changing fast in recent years and it seems likely that this will continue (Siobhan, T, 1993). It can be seen that in today modern westernized society, companies need to be flexible with their organisational structure in order to gain competitive advantages. For instance, large organisations such as Westpac are frequently publicized throughout the media, when implementing new organizational culture.

In the case the organisational structure was ineffective, as different sectors found it hard to work as a group. It was noted that the team struggled as a unit, to the extent in which the company spent three days trying to develop new ideas and concepts. The poor organisational structure led to lacks C communication between the different departments within the company. As a result of this, Nokia was left with insufficient within the organization information in time of crucial decision. Thus, Nokia was forced into making implosive and meager design in order to respond too external rivalry and up hold a competitive advantage. It is clearly evident that a lack of organisational structure is present within the organization and has been one of the major factors which influenced Nokia down fall.

However, a lack of organisation structure was not the only factor which contributed to Nokia’s downfall, as there was a clear...

References: Anumba, C, J, Catherine Baugh, C, Khalfan, M, M.A. (2002), “Organisational structures to support concurrent engineering in construction”, Industrial Management & Data systems
Fagerberry, J. 2003a, “Innovation: A Guide to the Literature”, New Oxford Handbook and innovation
Lambert, E, G, Hogan, N, L, Allen, R, I. 2006, “Correlates of Correctional Officer Job Stress: The impact of organizational Structure”, Southern Crminal Justice Association
Roper, S. 1996, “Production and Small Business Growth:A Comparison of the Strategies of German, U.K. and Irish Companies”, Kluwer Academic Publishers
Schermerhorn, John, R, 2011, “Managament Foundations and Application, 1st Asia-Pacific Edition,” John Wiley & Sons Ausrtralia, Ltd
Siobhan, T, 1993, “Innovations in organisation structure”, British and Administrative Research
Stok, K, M, MArrkic, M, Bertoncelj, A, Mesko, M 2010, “Elements of organizational culture leading to business excellences”, Preliminary communication, vol.28.
Studymode(2013)“Telecommunications Industry Analysis, Wireless Telecommunications Industry Analysis, Indian Telecom Industry Analysis” 27april <>
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