Nokia

Abstract

Founded on May 12 1865, Nokia Corporation once had been the largest mobile phone company IN THE WORLDand had kept the record of best sale mobile phone for 14 years. Since 2010，Nokia had steadily been losing its market share to Apple and Samsung. This report will focus on the main problems of Nokia from four elementary factors: organizational structure, cultural difference, leadership and motivation. Combining with OB concepts, the report will give logical advice at last.

Key words: Nokia organizational structure cultural difference leadership motivation.

Introduction

Nokia is a Finnish multinational corporation created in 1865. It used to be the number one mobile maker in the world, but when Apple and Android were introduced, Nokia faced fierce competition and inevitable failure.

Nokia agreed to sell its handset business to Microsoft for $7.2 billion, which put an end to its prosperous past and change the handset history. Not that long ago, Nokia was one of the world’s most dominant and leading mobile-phone makers. Many managers and researchers went to Finland to learn Nokia’s enterprise methods. But today, it holds merely three per cent of the global smartphone market. After three years of massive restructuring that was supposed to revive Nokia , the former global mobile communications giant was gone.

Organizational structure

1. Large group size & organizational structure instability why nokia has a instability structure

It is difficult to manage a great number of large sized groups because they are more likely to prompt conflicts and dissensions. Also, members of larger groups consistently report less satisfaction with group membership than those in smaller groups. On the other hand, the instability of structure poses a threat to the company’s development. For example, in order to get more market shares in China, the Chinese branch experienced several rounds of personnel transfers. These changes had a negative influence on the...