National Technical University of Athens – Athens University of Economics and Business

AthensMBA

Working Team: Professor:

Deligiannis George Dr. Lioukas Spyridon

Pertsinis Ioannis

Rihani Michael

Vitsios Efstratios

NOKIA

Nokia CorporationNokia Corporation is a Finnish multinational communications and information technology company, founded in 1865. Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area.

Nokia Leadership Team

Chairman – Risto Siilaasma

President and CEO – Rajeev Suri

CFO – Timo Ihamuotila

Revenue: €23.22 billion (2015)

Operating income: €5.453 billion (2015)

Profit: €1.68 billion (2015)

Total assets: €45.06 billion (2015)

Total equity: €9.44 billion (2015)

Number of employees: 114,256

• Internet of Things (IoT)• Ultra Broadband• Cloud• Digital Health

• Virtual Reality• IP interconnectivity• Innovation Ecosystem• Services

What Nokia does

NOKIA

Identity

Nokia is a global leader in creating the technologies at the heart of our connected world.

Activities

Innovators of the global nervous system: the evolution of networks into a seamless fabric of interconnected intelligence supporting our digital lives.

Sustainability

Nokia invents, designs, and deploys sustainable technologies that make a real difference in the lives of people.

Innovation and Possibilities

NOKIA

History

1865-1967

1967-1982

1983-2000

2000-2014

2014-present

• Foundation of Nokia

• Forest and power industry

• Manufacturing telephones, electrical

cables and rubber products

• Creation of Nokia Corporation (1967)

• Military equipment

• Mobile radios, telephone switches, capacitors,

chemicals and personal computers

• Launching of Mobira Senator car phone –

NOKIA’S FIRST MOBILE PHONE (1982)

• Pioneer of mobile gaming (Snake)

• Creation of best selling phone of all time (Nokia 1100 – 2003)

• Creation of Symbian

• Loss of market share due to iPhone (iOS) and Android

• Stock price fell below 2 dollars, almost became bankrupt (2012)

• NOKIA purchased Siemens stake in NOKIA-SIEMENS Networks (2013)

• Acquisition of NOKIA’s mobile devices unit by Microsoft (2014)

• Mobira Cityman 900 – FIRST FULLY PORTABLE

MOBILE PHONE (1987)

• Development of GSM Mobile Standard (with Siemens)

• World's First GSM Call using NOKIA’s equipment (1991)

• World’s First commercially available mobile phone

(NOKIA1011 - 1992)

• Best selling Mobile phone brand (1998)

• Acquisition of Alcatel Lucent –

16.5bn (2015)

• Sale of HERE Maps to a car

company consortium for 2,8bn

• the Digital Health unit was founded

(Withings acquisition – 2016)

• HMD Global and NOKIA

Technologies will create NOKIA

branding devices (2016)

NOKIA

Innovators of the global nervous system

Internet of Things (IoT)Enabling the Internet of Things, with massive-scale, secure and low-energy connectivity for billions of devices.

Ultra broadbandPioneering ultra broadband solutions to deliver lightning-fast wireless and fixed broadband access, anywhere, making the maximum use of existing assets.

CloudConnecting society to the cloud, combining virtualization, intelligent analytics and orchestration to build programmable, performance-optimized networks that dynamically adapt.

Digital HealthInspiring individuals to take control of their health for the benefit of society through digital health technology.

Virtual RealityPioneering transformative experiences through immersive VR technology.

Innovation EcosystemHelp individuals, communities and industries create a better future.

IP ConnectivityCreating the high-performing IP networks that underpin the digital world, enabling customers to reduce time and risk in launching new services, and rapidly scale to meet demand.

ServicesHelping customers to transform to new technologies and new business models, through professional services spanning consulting, designing, planning, implementing and operating.

NOKIA

Nokia is everywhere

Headquarters (Espoo Finland)

USAMexicoCanada

ArgentinaBrazilColumbiaCosta Rica, etc.

FranceGermanyItalyUK, etc .

AlgeriaTunisiaSouth Africa, etc .

RussiaBalkans, etc.

UAEQatarIsrael, etc.

ChinaIndiaJapan, etc.

AustraliaNew ZeaIandIndonesia, etc.

“

NOKIA

Analysis of external and internal environment

NOKIA

Analysis of External EnviromentPESTEL ANALYSIS

PESTEL

Legal

Political

Economic

Social

Technological

Environmental

NOKIA

PESTELPolitical Factors

◎Every country has its own rules and regulations

◎NOKIA had to stop its business in some cases due to strict regulations

◎Taxation policy, government stability and employment laws varies from country to country

◎In some countries NOKIA has to follow minimum wage laws (i.e. India)

◎Awaiting developments following the results of US Elections (Trump’s victory)

NOKIA

PESTELEconomical Factors

◎NOKIA leaves great impact on the economy of Finland

◎Finland’s government helps NOKIA to secure the jobs of the workers

◎The consistent change of the exchange rates across the world affects the business

◎The recession on the global economy and the bad economic situation have a negative

influence on the interest rates

◎Increase of the borrowing amount from the banks in order to carry out business activities

NOKIA

PESTELSocial Factors

◎NOKIA has to understand the new trends in the market

◎Technological developments are made quickly in the European markets

◎The company has to understand the nature of people (i.e. some people need innovative

features while some other are looking for a simple and inexpensive solution)

◎Better understanding of the emerging markets’ culture is crucial in order the company to

meet their demand

NOKIA

PESTELTechnological Factors

◎Various other competitors are introducing new handsets with latest technological developments

◎Improvement of the quality of internet, camera, e-mail, call record is essential for NOKIA

◎Partnership of Microsoft increased the trust of the clients

◎New technologies leave their impact on minimizing costs

◎Need of new technological developments on online gambling, MP3 players and high definitions TVs

NOKIA

PESTELEnvironmental Factors

◎Moral obligation to deal with the issue of global warming

◎The company should take care while disposing phones, accessories and lithium batteries in order to ensure safety and protection of the atmosphere

◎Globally the rules and the regulations about environmental consciousness has become more strict

NOKIA

PESTELLegal Factors

◎NOKIA should protect its products and new technologies with patent applications

◎Avoidance of copying ideals of features of other companies

◎Ascertain that various plants follow the working rules and regulations and nothing is happening against the law

◎NOKIA should give proper attention to the privacy of its customers

NOKIA

5 Forces Analysis (PORTER)

Barriers to entry Power of buyers

Threat of SubstitutesPower of suppliers

Rivalry between

Competitors

NOKIA

•Secure Patents•Strong brand identity of existing players•High expected retaliation•High capital requirements (high R&D, marketing and PR costs, etc.)

Barriers to entry

• Increased buyers volume•Buyers now have more options due to increased number of competitors (Apple,

Samsung, Google, etc.)Power of buyers

•Low buyer inclination to substitute•High price – performance ratioThreat of substitutes

•Low bargaining power•High differentiation of inputs•Low switching costs

Power of suppliers

•Strong brand identity•Low product differentiation•Entry of companies from emerging countries

Rivalry between Competitors

5 Forces Analysis (PORTER)

NOKIA

Consumer Market Segmentation

ProductsDeveloped Economies Emerging Markets Undeveloped Economies

Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers Achievers Strivers Survivors Explorers

Entry level mobile phones

Mid range smartphones

High end smartphones

Tablets

VR Cameras

Internet of Things

Cloud Services

Digital Health

Mobile OS & Apps

Digital Maps

Large Markets with high penetration opportunities

Large Markets with moderate penetration opportunities

Markets with low penetration opportunities

NOKIA

Major Accounts Market Segmentation

ProductsDeveloped Economies Emerging Markets Undeveloped Economies

Governments Enterprises Governments Enterprises Governments Enterprises

Broadband Networks(3G/4G/5G) 5G 5G 5G 5G 3G/4G 3G/4G 3G/4G 3G/4G 3G 3G 3G 3G

Cloud Services

Fixed Networks

Network Security

Internet of Things

Markets with high penetration opportunities High investment opportunities

Markets with low penetration opportunities Moderate investment opportunities

Low investment opportunities

NOKIA

Critical Success Factors (CSF)

Function Key Success Factors

Multinational Data Networks

• Economies of scale

• International marketing

• Network coverage

Telecommunications equipment• After sales support

• Seminars for the customers

Phones and Tablets

• Brand awareness

• Development of applications and

emphasis of operating systems

• Good price-quality ratio

Innovation technologies

• Strong R&D department

• Strong added value of new

technologies for the customer

NOKIA

ConclusionAnalysis of External Environment

◎Moderate industry’s attractiveness

High growth rates Innovation and knowledge-intensive activities High competitor’s strength High investment demand

◎Opportunities

Penetration in undeveloped-emerging markets 5G data networks in Western Europe, USA, etc. Development of technologies regarding digital health application and hardware IoT creates great potential

◎Need for critical strategic decisions

Alliances, distribution center, etc. Economies of scale

NOKIA

SWOT Analysis

SWOT

Strengths• Brand Name

• Experience in changes

• High Expertise

• Global Presence

• Quality

Threats• Major Competitors

• Unstable geopolitical

environment

• Dependent on a

limited number of

customers (Network

Infrastructure sector)

Opportunities• IoT, 5G, Wireline

Networks

• Increase of Mobile and

Data Users

• New Technologies

• Introduce products in

the newly emerging

markets

Weaknesses• High borrowing

• Poor Customer Service

• Huge loss of mobile

phone market share

• High price in some

products

NOKIA

Strengths

◎Nokia has a well known brand name that has huge impact on technological world

◎Huge experience in turnover strategies

◎Global presence (about 150 countries)

◎Acquisition of Withings will be a huge asset in the sector of Digital Health

◎Strong strategic advantage in wireless and wireline services after the acquisition of Alcatel

Lucent

◎Highly qualified personnel

NOKIA

Weaknesses

◎Criticism for poor customer support and sales services

◎High long-term interest-bearing liabilities and short-term borrowings

◎Recovering after huge mobile devices/operating system failure

◎The company took long time to enter in mobile phone market and it has lost huge market

share

◎Concern for employees and public image not clearly stated

NOKIA

Opportunities

◎Mobile users will be more than 9bn in 2020, and mobile data users will be over 4bn by the

same time

◎Cloud computing is expected to be massive by 2020. According to todays data Cloud

computing generate more than $45bn.

◎Nokia share price is around 4.33$ (27/11/2016) and considered very attractive for the

investors.

◎ETA Devices acquisition targets to improve battery efficiency and considered as a core

project for NOKIA

◎Nakina acquisition targets to enhance Network and Cyber security (due to researches, the

number of Hackers will be at an all time high by 2020)

◎The company can introduce its products in the newly emerging markets

NOKIA

Threats

◎The rivalry between competitors will be massive in all respective sectors

◎Many technological giants

◎Unstable economical and geopolitical environment

◎Environmental rules and regulations

◎Dependent on a limited number of customers and large multi-year agreements (Network

Infrastructure sector)

◎Possibility of unsuccessful implantation of new strategic plans

NOKIA

ConclusionSWOT Analysis

◎ Nokia’s biggest strength is the culture

◎ An organization with long history which knows how to escape from difficult decisions and survive

◎ Lot of opportunities to increase the earnings from the new strategy about new technologies

◎ Cloud and IoT is the future if aren’t the present

◎ Preservative investments in startups like Withings or Nakana systems which means low price acquisition with high ROI

◎ Selective investments in colossus like Alcatel Lucent

◎ The vision is a hard issue. We don’t know if the organization could understand fully the vision of new Nokia.

◎ Nokia tries to create an easier way of life. Finally in a liquid market battlefield is very difficult to recondition the strategy plan immediately and be the leader.

“

NOKIA

Strategic Position Analysis

NOKIA

Shaping the future of technology

To expand the human possibilities of

the connected world

Example: Leading in Optical Network

infrastructure optimized by and for the

Cloud (400GB to 1TB transport)

Example: NPS (Net Promoters

Score), Geographical Network

Coverage

Help the customers to capitalize

on the opportunities from an

industry in transition

Example: Convergence of

disparate Network technologies

Example: Network performance

and simplicity index of

Networking Services

“

NOKIA

“Shaping the future of technology”Nokia is shaping the technologies at the heart of our connected world,to transform the human experience

Mission statement

“

NOKIA

“To expand the human possibilities of the connected world”

At Nokia, we are shaping the future of technology to transform the human experience.

Vision

“

NOKIAhttps://www.youtube.com/watch?v=R5nxfkDzZUA

NOKIA

Objectives

Leading in network infrastructure, converging mobile, fixed, IP and optical networks, optimized by and for the Cloud

Expanding in adjacencies and gaining software leadership for network optimization, service innovation, and customer experience enhancement

Diversifying by providing network performance and flexibility for large-scale enterprises

Leveraging new business opportunities created through the Internet of Things

All the use cases outlined above will provide opportunities for new business models and create new pockets of revenue growth for network vendors

“

NOKIAhttps://www.youtube.com/watch?v=GoJOZOnJaMc

NOKIA

Strategy

“Differentiation strategy with focus to innovation, new technologies, security and quality of service”

NOKIA

Tactics

Focus on social Networking and other Cloud – based Services that are increasingly accessed through mobile devices

Enhance Cloud – based applications and promote IoT Services and products in order to evolve the ongoing digitization of business processes as well as people’s lives

Take seriously into consideration the needs for enhanced network and application security and privacy to protect individuals, businesses, public services and national interests

Converge disparate Network technologies in order to enhance network performance and profitability and simplify networking services

Focus on open-source ecosystems through application programming interfaces ("APIs") in order to decouple from hardware.

NOKIA

Resources and Skills

Functions

R&D

Human Resources

Finance

Sales & Marketing

Production

After Sales Support

Resources and Skills /Easy to be Copied

Resources and Skills /Hard to be Copied

Constant renewal of technological equipmentVarious patent Applications, Geographical Diversity of IT Network, Bell Labs support

Specialized staff (IT), Unique Organizational culture, Specific technological environment,

The Finnish model of industrial relations (IR)

Net cash and other liquid assets almost 8bn dollars, Finnish Subsidy system for innovative companies

Global Presence, Brand Awareness, Variety of services

Innovative devices, Intellectual property

“Operations support system” as a service makes costs both lower and more predictable

Continuous Training, Easy access to R&D equipment

Recruitment, Management, Providing direction

Long term liabilities and borrowing, Strong Financial support for R&D

Broad advertisement and discount policy, In depth market segmentation

Trustworthy relationships with suppliers, Economies of scale, Outsourcing production

Personal consultant for enterprises, Online customer support

NOKIA

Dinstictive skills (KAY)

Key Capabilities

Relations Architecture

Reputation

Innovation

Strategic Elements

Discrete Elements

International & Domestic Public Relations, Relationships with staff, Relationships with carriers in the industry

High end technology, Quality products and services, Strong brand awareness

Highly skilled and specialized staff, Innovathons (Innovation Competition by Nokia Bell Labs)

Ownership of Bell Labs, Withings, Nakina, ETA System, Alcatel Lucent

NOKIA

Unique Elements

Bell Labs◎ Bell Labs, considered research arm, produces disruptive innovations for the next phase of human existence. This human challenge has

been the charter for Bell Labs for 90 years and led to a wealth of industry redefining innovations, eight Nobel Prizes and countless other honors.

◎ Bell Labs is pioneering the Future X projects, which are thirteen distinct new technology solutions―each of these aims to ensure that tomorrow’s networks will be high-performing, low-cost, efficient, personalized and always-on.

Withings◎ Making the most of innovation, technology and design, Withings invents smart products and apps that fit into any lifestyle that lets you

track what matters so you can improve you everyday well-being and aim for better long term health.◎ The mission is simple: For individuals and families to benefit from the connected heath revolution.

Patents and Alliances◎ Intellectual property assets are fundamental to Nokia, which now controls three distinct IP portfolios: the Nokia Networks, Alcatel

Lucent and Nokia Technologies portfolios. The first two are of particular relevance to the Networks business.◎ Nokia Networks portfolio includes approximately 10.000 individual patents, Alcatel Lucent Portfolio approximately 47.000 individual

patents◎ Alliance with HMD Global for the production of Nokia branded mobile devices

NOKIA

Stakeholders are those groups and people who are interest of business and organizational activities. Nokia is one of the largest companies, so its stakeholders are major part of Nokia Corporation.

Stakeholder needs and Expectation of Nokia:

External Stakeholders

Business Community

Internal Stakeholders

NOKIA

Internal Stakeholders

◎ Shareholders: Nokia always try to do better for them. Shareholders arrange the major part of capital for organization development as they part of owner of an organization. Shareholders receive share of profit, bonus, and dividend as well as reward. Its company policy to give them bonus share, dividend, premium share as they are feel secured to invest money more.

◎ Employees: Nokia regularly involve employees in discussions about issues such as corporate values, career and competence development, performance, diversity and work-life balance that's meet employee's need and expectations.

◎ Suppliers: Suppliers are very effective role for an organization. Nokia understand the important of them and try to meet their needs and expectation such as early payment, advanced payment, competitive value, communication regularity, preference of product etc.

NOKIA

External Stakeholders

◎Customers: Nokia increasingly engage with customers on issues related to sustainability. Network operators - Nokia's biggest customers - expect to meet high standards of corporate responsibility in their own operations and increasingly in their supply chain. Nokia continues to receive enquiries and assessment requests about social and environmental performance from their operator customers. Nokia respond to those requests through its normal customer account management interface.

◎Government: Nokia is operating their business in world wide. Nokia always obey the government rules and regulation and pay tax vat as per government rules. Nokia create a giant employment all over the world and it is a government basic expectation from a company.

◎Local Community: Nokia is always promised to help all kind of local community all around the world. Nokia sponsored for AIDS hospital, cancer hospital, all kinds of national game. Nokia sponsors many research collaborations with industrial and academic partners. Nokia's goal is to strengthen co-operation between researchers and academics.

◎Competitors: All companies in the industry are impacted by the way others conduct business. In many cases competitors also have a strong interest in your business when you target the same types of customers. Competitors may also be stakeholders in a similar way as your business partners regarding industry-wide promotions and lobbying efforts with governmental officials.

NOKIA

� Business Community

Nokia works in collaboration with other companies on key issues through a number of industry organizations, such as:

◎The Global eSustainability Initiative (GeSI): We participate in the Supply Chain Working Group, e-Waste Working Group and Climate Change Working Group.

◎International Chamber of Commerce (ICC)

◎World Business Council for Sustainable Development (WBCSD)

◎Bank and Insurance Company: Nokia always meet the expectations of bank and insurance company. They are taking loan from bank and investing money for other issue as well and paying interest.

◎Media: Nokia playing a vital role for increasing the media such as TV, newspaper, magazine and any other media. Nokia pays high rate of amount for promotion their product for advertisement with those media.

NOKIA

� Critical recourses and skills for StrategyS

uperior

1. Planning

2. Management

3. Expertise

4. Financial Position

5. Personnel

6. Specialized

Personnel

7. Marketing

8. Relations

Architecture

9. IT

10. Building

infrastructure

11. Cost of services

12. Innovation

Infe

rio

r

Less Important Critical

Specialized

Personnel /

Innovation

Relations

Architecture

Marketing

Devoted

Personnel

NOKIA

� Critical recourses and skills for Strategy

Le

ve

l o

f S

tre

ng

th

Level of Influence

High

HighLow

Low

Shareholders

& Banks

Government

& Local

Community

Customers &

SuppliersModerate strength,

very effective role

Generally passive

and little

involvement

High Strength and

Influence

Competitors

Media &

Councils

Low strength but

promotion is of high

interest

Great impact, High

level of strength

and influence

Future Projections

“

NOKIA

Alternative Strategies

NOKIA

Strategic DecisionsCreation of Alternatives

Basic StrategiesLow cost/ price

Diversification• Focus• Mixed

Alternative directionsStabilization• Penetration• Product Growth• Market Growth

Diversification• Correlated• Uncorrelated

Alternative methods• Organizational Growth• Acquisitions • Merges• Alliances• Consortium

Which base HowWhich direction

Porter Ansoff

NOKIA

Growth Rates and Attitudes to Risk

Existing Products New

New

Existing

Markets

NOKIA

Ansoff Matrix (Nokia 2016)

Take advantage of the latest acquisitions in order to enter in

new markets with new products in new distribution channels.

Alcatel Lucent and Withings is an example.

Growth by advertising in the existing distribution channels, via

digital advertisement.

By digital advertising Nokia could achieve a larger customer base.

Existing Products New

Markets

At this period Nokia is creating new products and services in order to

grow the product mix.

With continuous acquisitions Nokia is creating new distribution

channels in around the world. New

Existing

NOKIA

The analysis of Ansoff matrix helps Nokia to realize that if it remains in the existing market with existing products or try to grow in it, it’s possible to be a wrong strategic decision. By following

diversification strategy Nokia will create added value. Therefore Ansoff matrix does not work for Nokia’s example. The risk will be contained in diversification model (vertical & horizontal).

Strategy Evaluation

NOKIA

Nokia as an insurance data provider.

As the average age in all continents is increasing, weneed to have more facilities for the older people. Atthe same time, the health of these older people mustbe under monitoring and these people have to beactive parts of society.

In order to have good results in health care system,the premiums must be under regulations because ofits structure. The premiums aren’t representative ofthe cost of health services.

With this project the company is about to edit all thenecessary data to be an insurance contributor forevery individual citizen.

Alternative strategiesInsurance plan strategy

NOKIA

Alternative strategiesInsurance plan strategy

Using Digital Health Nokia could create a huge data center with statistics and results for the users of digital health accessories. These data will be analyzed with the service package of Ultra-Broadband(5G), Cloud services, IP Interconnectivity and Internet of Things.

◎Ultra-Broadband(5G) as a data transport system:5G broadband gives more choices to users of any hardware system. For example wearing a Withings watch, you can have real time data as blood pressure, or using the thermometer, temperature, saved automatically in a data center.

◎Cloud Services as a data center:Cloud services are an unlimited “hardware” storage system and helps to save data almost free on the web. By using wearables all the data would be collected to the “data center” which is the cloud.

NOKIA

Alternative strategiesInsurance plan strategy

◎ IP Interconnectivity as a secure provider: All data concerning health are highly secured. They must be transferred without human interruption. Furthermore, interconnectivity will help the applications to be more efficient.Finally using the IP interconnectivity, the important platform will be created in order to analyze all the data securely with the help of Nakana Systems.

◎ IoT as a self-driving system:IoT is the future of mobile devices. By the help of Withings, Nokia will have all the necessary real time data of any citizen. It can also predicts a disease problem like heart attack, saving that way the citizens life and at the same time helping insurance contributor from spending operating costs. Finally IoT do all the procedures automatically.

NOKIA

SFA Evaluation of Alternative Strategy

Suitability(S) Feasibility(F) Acceptability(A)

Strategic

Decision SWOT Culture Resources Skills Stakeholders Risk

Diversification

Acquisitions

Merges

Alliances

Consortium

Insurance plan

Alliances

*** **

** ***

*** **

*** **

*** ***** ***

*** **

*** ***

*** ****** ***

*** **

*** ***** ***

*** **

*** ***** ***

*** **

** **

*** **** ***** ***

NOKIA

Final Strategic Decisions

◎ Acquisitions: Proceeding to acquisitions may create problems because of the adaptation of new companies in the culture of Nokia. Furthermore, the fact that the candidate company could be bought from a Nokia’s competitor is a threat.

◎ Insurance plan:Insurance plan is a great opportunity for Nokia’s future strategy. Insurance plan is a low risk strategy because it will start, at the same time, that the services are in growth. Insurance plan fits perfectly with the culture of European Continent and is very close to stakeholders’ philosophy (high-end technology and health services).

NOKIA

Final Strategic Decisions

Suitability• Strategic rationale:• Research Indications:• Match with culture:;

Feasibility• Financial resources• Physical resources• Skills

Acceptability•Expectations• Management Objectives• Risks

76

Acquisition Insurance plan

8

9

7

9

8

9

9

9

8

9

10

10

9

8

8

10

9

8

Total SFA ranking 81

NOKIA

Final Strategic Decisions

Suitability external • PESTEL• 5 Forces

Feasibility internal

• Money

• Machinery

• Manpower

• Markets

• Materials

• Make up

Acceptability

•Financial aspect

• Stakeholders aspect

87

Acquisition Insurance plan

8

9

9

8

9

9

9

8

9

9

Total SFA ranking

6M Johnson and Scholes

89

8

10

9

8

9

9

9

8

9

10

NOKIA

Strategy evaluation with SFA and SFA 6M rankings

Insurance plan matches alternative strategy according to the SFA ranking system.

Our team believes that the market is almost ready for insurance plan and this could be achieved with the support of stakeholders. More than ever, technology can predict serious diseases and this will help not only Nokia but the whole society.

Investments, must be continuous, in the strategy of insurance plan. The last results of Q3 are moderate, and we believe that announcing an entrance to the Insurance sector, will attract more investors and help the stability and growth of Nokia’s share rate.

“

NOKIA

Implementation of Strategy

McKinsey 7s Framework

Hard Elements Required Changes Importance Difficulties

Strategy

Transparency

Alignment

Spreading

++

+

+++

+++

++

+++

-

+

+

Structure

Delegation of power

Horizontal structure

Networking

+++

++

++

+++

++

++

+

++

+

Systems

Budget

Information Systems

Business Analytics

Security

++

+

+

+

++

++

+++

+++

++

+

++

++

Essential Changes using 7s Framework (1)

Soft Elements Required

Changes

Importance Difficulties

Staff

Specialized executives

Motivation

+

+++

++

+++

+

+++

Skills

Training

Weaknesses

Synergies

+

++

+++

+++

+++

+++

++

+++

++

Style

Supportive Leadership

Develop leadership skills

+++

++

+++

+++

+++

+++

Shared Values

Consistency

Customer Oriented

Alignment with strategy

+++

++

+++

+++

+++

+++

+++

++

+++

Essential Changes using 7s Framework (2)

Strategy

Structure

Systems

Hard Soft

Relations

People

Purpose

Human-Oriented alternative approach (Ghoshal)

Change

Top Management

Mid-Senior Executives

Guidance Team

Vendors

Implementing new strategy: Parties involved

Parties involved

◎Top Management

The role of top management is crucial to the strategic change. It is very important to create a “Guidance Team”, which will be responsible to inspire and guide personnel throughout the change processes.

◎Vendors

Vendor selection has to be very careful, and the expertise and culture of the vendor has to be considered before conclude an agreement. It has to be clear that the vendor will act as an advisor and not as an executive.

◎Mid-Senior Executives

Middle managers are usually those who have the better understanding of the current culture of the organization and, in most cases, they can influence and inspire a large group of employees.

◎Guidance Team

“Guidance Team” will be the “cornerstone” of the change. They will be the link between top management and personnel of lower levels.

NOKIA

Change Plan

7S change actions:

◎ Transfer a Project Manager from core Nokia’s business in order to accomplish the Insurance Plan project and disseminates the shared values.

◎ Hiring an extra Sales Manager and extra staff for the new Health Insurance department.

◎ Hiring executives from the Health Insurance sector to inform and educate the team will occupy the Health project.

Requisites Sources:

Plan cost: €10millions (hiring, educated, new department cost)

Funding: Using available net cash

NOKIA

Change Plan

Priorities:◎ Select staff for the whole department◎ Create a business plan for the Health Insurance plan◎ Be in touch with Insurance companies◎ The acquisitions’ team have to continue its work, acquiring companies with high potential

Implementation:◎ Top management involvement and monitoring the progress of Project Managers.◎ Create a new trend inside the company and motivate innovation around Health Insurance Plan, using

human oriented leadership style.◎ The new department will be structured with staff which is engaged with Insurance Plan and will help

the creation of the business plan◎ The group does not need to hurry, so all operations must be done in a structured way.

Strategy

StructureSystems

Skills

Culture

Difficu

lty le

ve

l

Time Needed

Turnover difficulty to time

NOKIA

References

◎Hub pages, business and employment, business management and leadership 2012 www.hubpages.com◎UKessays, Analysis of mobile phone manufacturer NOKIA 2016 www.ukessays.com/essays/marketing◎Academic sample papers, Analysis of NOKIA 2015 www.bestessayservices.com◎Slideshare http://www.slideshare.net/◎University of Texas http://www.utd.edu/◎http://www.businessdictionary.com/◎Integrated differentiation cost leadership strategy https://www.translatum.gr◎«Οι τρεις γενικές στρατηγικές» http://www.bluewavemag.com/◎Διαμόρφωση στρατηγικής – Strategy Train http://st.merig.eu/◎The rise, dominance, and epic fall - a brief look at Nokia's history http://www.gsmarena.com/◎Statista – The portal for statistics https://www.statista.com/◎“How Did Nokia’s Networks Business Perform?” - http://marketrealist.com◎Profits plummet at Nokia Networks - http://telecoms.com/