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Question 2

Evaluate Nokia’s changing organisational structure against the changing characteristic of the external environment over this time. Has the structure mostly contributed to Nokia’s success or been a hindrance to it?

When Nokia faced with the declining sales Nokia announced a new organisational structure that focus on smartphones and traditional mobile phones. Nokia apply matrix structure which is an overlays two structure such as a geographical divisional and a functional structure in order to leverage the benefit both. The Nokia new chart and emphasises two central product division; ‘Smart Devices’, ‘Mobile Phones’. The smart phones division competes against Apple’s iPhone and similar products. The mobile phones division covers traditional phone product, with a particular emphasis on growing business in emerging markets. The chart also features a ‘Markets’ division, which is a functional group responsible for global sales and supply chain operations. There are several other functional groups in the chart too. NAVTEEQ and Nokia Siemens Networks are separates organisations, of which Nokia is a join partner.

Nokia’s new structure also imposes three other units which are services and developer experience, design, and chief technology officer (CTO) office across the two product division and the Markets group. Nokia Company uses this type of structure to ensure that the company offers a consistent user experiences across product and shares design and researches resources. If Nokia can manage this matrix structure properly, it can improve communication efficiency, project flexibility and innovation compared than their old structure. This structure focuses employees on serving clients or creating products yet keeps people organise around their specialization, so that knowledge sharing improves and resources use more efficiently. Matrix structure works well when two different dimensions deserve equal attentions.

Even thought, matrix structure...