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Report on Nokia Change Management Strategy


Task: Write a well-researched and detailed report on change management in Nokia.


1. Executive Summary
Change is an inevitable inclusion for every organization. To keep growing successfully, change has to be acknowledged and modifications shall be done. Strategic Change management is such a process that recognizes the importance of change and permits making the necessary changes. On that account it can be said that the changes can be executed in a contemplative manner, directed towards the accomplishment of the purposes and objectives of b organization. However, the process of managing strategic change is not easy, particularly in today’s world where enormous transnational companies dominate the business domain. Employing the strategic management technique can be an efficient method to gain leverage over strategic change initiatives in accomplishing organizational motives. It is known that the main hindrance in the way of change management is resistance to change. Resistance is a manifestation that influences the change procedure decelerating the change implementation procedure. Resistance to change is a recurring phenomenon in Change management. The change process is detained due to the distance. It might be difficult for employees to adapt change hence resistance is an ordinary pattern. However, managers can reduce or eliminate the degree of employees' resistance to change.

In the following study, the multinational telecommunication company Nokia shall be evaluated for the better comprehension of change and strategic Change management. Nokia was in the telecommunication business for 155 years and possessed remarkable goodwill. However due to the lack of capability to manage change in the organization the company has faced a decline in the market. Nokia had a highly bureaucratic structure. When Stefan Elop, a non-Finnish, was appointed as the chief executive officer several controversies were faced. Since Nokia is a company from Finland, Finnish culture prevails throughout the organization which hinders the acceptance of the change. The change was strongly resisted by employees and stakeholders resulting in a dramatic fall in the share price of the company by 10%. The organization also failed to transmit inventions and creativity to the top management due to the existence of highly bureaucratic management. Change management in Nokia suffered since day one when it initiated the execution of change from the top management instead of the employees. The shift to the Windows Phone platform was disputed yet reasonable however the change was not transmitted properly to the Employees and stakeholders. Change is a time-consuming procedure but Nokia hurried through the decisions to follow the Trends of the market. This Rush led to the resistance of change from employees and also stakeholders. The study aims to elucidate the importance of strategic Change management in the telecommunication company, Nokia. A detailed discussion regarding the background of the company along with the reasons why the change is necessary has been performed. Moreover, the factors causing the strategic change have been critically analyzed followed by the sources which do not respond to the changes. The evaluation of SWOT and PESTLE analysis delivers the internal and external factors which form a crucial impact upon the organization. SWOT Analysis helped Nokia to identify its internal as well as external environment and assist in decision making. PESTLE analysis whereas brought a clear understanding of the Macro-environment demonstrating its influence upon Nokia. Change management models, Kurt Lewin's Change Management Model, and Kotter’s Change Management Model explain the importance of aligning factors for achieving success. Change management models will reinforce changes in the organization for achieving concrete outcomes. The reason why the chosen Change management models are relevant in Nokia has been explained. The change in Nokia has widely affected its growth rate which has to be recovered. Therefore a Change management strategy including the stakeholders has been developed. Along with it a strategy to overcome the resistance encountered from change has duly been acknowledged. Eventually, a strategy to overcome the resistance of change in Nokia has also been established. An assurance to bring Nokia into the competitive growing world has been made.

2. Introduction
2.1. Company background

Nokia is a transnational company founded in Grand Duchy of Finland, the Russian Empire. The company was established on 12th may 1865 on account of an individual paper mill operation. During the 19th Century, the multinational corporation stretched its arm into a diverse product. In 1967 Nokia Corporation was originally established. The company serves telecommunication, networking, information technology, and consumer electronics. Nokia began to focus on the mobile phone industry in 1992 and swiftly achieved a large market segment. Back then the company remained quite creative and responsive to the customer needs hence actively launched features matching the demands. However later in 2007, the emergence of competition from brands like Apple and Samsung captured the market share of Nokia. Ultimately the mobile phone business was purchased by Microsoft in 2014. Later on 18th May 2016, Microsoft sold Nokia mobile phone business to HMD global (Khan, Raza, and George, 2017).

Nokia net sales Nokia Change Management Strategy

Figure 1: Nokia's net sales 1999-2019
Source: (Alsop, 2020)

The figure for net sales includes all revenues from telecommunication and Enterprise consumers. The company paid special attention to the telecommunication business which brought an increase in the revenue between 1996 and 2001. The revenue increased from 6.5 billion Euros to 31 billion Euros from 1998 to 2012. Nokia Corporation became the world's third-largest telecommunication manufacturer in terms of revenue in 2017. According to Chin (2020), in the year 2018, the company provided employment to 103,000 people in 100 countries. In the same year, the reported annual revenue was approximately €23 billion. Also, Nokia is the world’s 415th largest company in terms of revenue.

2.2. Background to change
Nokia has encountered a decline in its business due to certain factors that lead the corporation to adopt changes. The problems faced by Nokia can be divided into external forces and internal forces. External forces that Nokia came across were the blooming of new competitors and change in consumer preferences. As per Khan, Raza, and George, (2017), with the emergence of Smartphone companies, supplying high featured phones at an affordable price, the brand value of Nokia kept diminishing. An essential modification in the telecommunication market was the Smartphone revolution which was not paid enough attention to Nokia. This acted as a drawback for the company. Moreover, the availability of high-end products at cheap prices changed the consumer behavior pattern which went unnoticed by Nokia. Therefore the company failed to maintain pace with the demands of the consumers. The entrance of fierce competition in the market was unanticipated and the company was not prepared for it. Also so the low technological competency of Nokia prevented the company from growing.

According to Borhanuddin, and Iqbal, (2016), internal forces such as cultural disparities and lack of appropriate leadership led to change in Nokia. The company required a proper leadership that could encourage development and growth irrespective of the existence of cultural barriers. The reason for the prevalence of cultural barriers was that the top management of Nokia consisted of mainly Finns with a similar cultural background. Therefore the capability to adapt to changing business surroundings was hindered. The orthodox and cultural administration blocked the way to adopt necessary changes. Undertaking a decision for an individual product could take months and implementation would be even longer which negatively responded to the rapidly growing market.

3. Need for change
3.1 SWOT analysis

Nokia was once one of the world's greatest dealers of phones, is a standard Finnish information development and communication overall venture which gives media transmission furnishings and services. The mobile phone brand is renowned for the unfaltering quality and durability its phones have dealt with the adaptable market for quite a while with its motto connecting people'. Here we will look at the SWOT analysis of Nokia. The SWOT of Nokia inspects the strengths, weaknesses, opportunities, and threats of Nokia which is one of the primary compact handset producers in the business.



·         The most noteworthy strength of Nokia is its brand name. Various customers normally choose Nokia more than some other brand because the Nokia Company provides the determined quality, durability, and imaginativeness in their phones.

·         The biggest strength of Nokia is a geographically broad network of movement when differentiated with various affiliations in the business. Commonly, one-fourth of the world's population uses Nokia's establishment and courses of action.

·         Its budgetary base is strong and reliably stable since it is built up of various divisions that are genuinely productive.

·         The mobile phone produced by Nokia has essentially higher re-sale respect for other mobile phone brands.

·         Many of Nokia's products are certainly not difficult to utilize and are normally gotten together with an assortment of supportive connections.

·         Products offered by the affiliation are accessible in all value degrees.

·         Some of the inadequacies that Nokia has are its product price. The product's worth is commonly high when diverged from various consequences of comparable change in various associations.

·         This is exacerbated by the fact that Nokia does not consider the customary ordinary person who earns insignificant consumption. Without a doubt, even in their product promotion method, it does not seem to join them as one of its goals. 

·         The Finnish mobile association has made moderately lower benefits on account of a drop in sales that result from the extraordinary competition (Chaturvedi, Singh and Chaturvedi, 2017). As shown by estimations, the profits of the association have fallen by 7% in the second quarter of 2014.

·         The changed organization, Nokia's arrangements have been decreasing which could show a close by inadequacy or change in strategy.

·         Nokia put aside a long exertion to enter the especially beneficial and impacting mobile phone market. Accordingly, the association lost a huge amount of its once enormous market share.




·         There are various opportunities available to Nokia for it to broaden its activities. Nokia can take its wide extent of things that have different features and for different clients to manufacture its market in the country before various associations can adjust to the circumstance.

·         With the extended purchasing power, all it needs is a good promoting strategy to attract the right customer. At the point when it has a perceived fragment of the market and got customer dedication, it will be hard for various associations to penetrate through and it will have developed a solid ground of controlling an enormous bit of the market.

·         The mobile phones are growing incomprehensibly bit by bit. In this way, there will reliably be a tremendous opportunity to have a gigantic market to sell their products.

·         Nokia has a strong image of its things as it is an old association. Thusly, there is starting now enthusiasm for Nokia phones.


·         To continue profiting by its enormous share of the market, it needs to deal with specific threats that are facing it. For example, associations like, Apple, Motorola, Samsung, and Sony Ericson are climbing to fight for the market share and subsequently posing to a significant genuine challenge to Nokia.

·         Associations like Apple and RIM have gotten new enhancements in the phone business. Nokia absolutely needs to show signs of improvement or become mixed up in this market.

·         The demand for essentially profitable products is inconsistent in nature and any immeasurable occasion during the apex season may impact the benefit of the relationship in the short to medium term (Bala and Singh, 2016).

·         The imitation of the fake and low standard quality product is moreover a threat to Nokia Corporation particularly in the making business parts and low remuneration markets.

·         The cyclic nature and seasonability of the errand is moreover another threat to the Nokia.



3.2. PESTLE analysis
A detailed evaluation of the Macro environment of Nokia can be undertaken by using the PESTLE analysis. The political, economic, social, technological, legal, and environmental factors are external forces for the company but adversely affect its functioning. These factors form an important impact on the strategic decision making of Nokia.

Political Factor
The activities are taken by the council and their impact on the business generally exhibited the political activities. It is commonly considered as one since they are actualized by the nation's government. It is basic for Nokia's movement considering the way that different nations with their specific government have assorted Political stages exclusively. Nokia taking a shot at an overall level must withstand rules and regulations in different business divisions of host countries around the world. The governmental requirements show that the phone business makes the control of self-regulation comparing to the content. The governing body similarly impacts the mobile business by the strategy for charging taxes from the mobile phone associations and besides charges for the licensing of networks (Khan, Raza, and George, 2017). To its flourishing, Nokia surveys its degree of limits focuses in order to isolate prohibited exercises, rules, and help from the government to withstand the worldwide trade.

Economical Factor
The industry of mobile phones is also impacted by economical growth, as the rising per-capita income has improved the purchasing power of people and this subsequently has opened up the potential mobile phone in the business. With the rising of income, disposal income has also increases, which engages buyers to be more specific with their choice of phone, looking to other factors as opposed to fulfilling the most major of customer needs and worth being such a key factor.

On one hand, the condition of overall trade is huge for Nokia being the overall supplier of phones, and on the other, the data concerning the nation's financial status is comparably as basic to recognize provisional courses of action for individual and budgetary prosperity alongside improving the business (Simonen, Herala, and Svento, 2020). There are consistent ups and downs in the exchange market and the changing movement of money affected the business. The exchange rates work over the world so this anticipated change leaves financial ramifications for the business and the association needs to defy diverse issue in settling down their cash related issues.

Social Factor
Social factors bases on how Nokia blends in with parts in the public field; that is culture, social class, lifestyle, and psychological segments making up the overall population. Nokia works in a different number of cultures and all degrees of the social class essentially in light of the fact that different models are regularly conveyed to satisfy all individuals disregarding their difference in race, religion, pay level, nationality, or feelings among each other.

Mobile phones can without a doubt conform to any culture and can be used to support different perspectives and existing instances of an Individual's lifestyle or lead. The rising of the indicated information society has made telecommunications logically more basic to customers, both with respect to work and amusement. Customers are more aware of mobile phone handset choice and degrees of progress due to the extended availability of information.

Technological Factor
The execution of the industry of mobile phones is in like manner impacted by the technological condition, and the customer tendency with respect to smartphones shows that they lean toward inventively advanced products. Technology change portrays how fast technology advances. Being the ruling medium by which things are getting done; technology as a cycle, the extent that mobile phones portray the way where we interface. The accomplishment of Nokia relies upon predictable advancement in human technology. By overhauling communication and researching better ways to deal with the exchange information, connecting people, Nokia grants customers to get more out of life.

Legal Factors
Intellectual property is a major element of any technological business. Nokia is a telecommunication, information technology, and consumer Electronics Company shall keep an eye on the legal factors and ensure its position against its rivals. Nokia functions in an industry where maintaining the complete uniqueness of the product are problematic. The launch of a product with creative competencies shall be protected from its competitors with the help of patents, copyrights, or trademarks. Other than the competitors acting as intellectual threats it must also be prepared to face the cheap products claiming to be falling under the domain of Nokia. The company shall inculcate ways for counterfeit protection. The company shall be efficient in protecting its innovative products and technologies from being copied. Also, it shall not imitate the features of the smartphones of other companies. Nokia operates in 130 different countries acquiring numerous manufacturing plants. Therefore it becomes very crucial to abide by the rules and regulations of the specific country. Nokia shall also ensure that no illegitimate acts are being undertaken.

Environmental Factors
Nokia should engage more in environmental factors and adopt manufacturing methods which are environment friendly and ethical. Issues such as global warming should be addressed properly to maintain sustainability. The manufacturing process shall be conducted in an ethical manner aimed to protect the environment. The disposal of mobile phones and accessories without causing damage to the environment has become essential. The rapidly increasing existence of mobile phone recycling organizations exhibits its importance. However, the major issue with mobile phone recycling is the manner of the disposal of lithium batteries. Inappropriately disposing lithium batteries can cause a danger to the environment since they have a chemical that can harm the atmosphere.

Therefore it becomes the ethical responsibility of the corporation to manage the environmental problems and contribute to reducing them. It helps in maintaining a clean environment and also brings much-needed goodwill benefits. Also, the active involvement of the company is benefiting the environment will positively influence the Corporate Social Responsibility.

3.3. The implication of ignoring change requirements change
There was a time when Nokia was best at its financing results in the last aspects of the 2000s, but now as the competition in the mobile industry is growing rapidly the things are not the same as Nokia. If Nokia will not adopt the current changes, the company will not be able to survive in the industry. Additionally, this will also create a negative impact on its human resources and asset. The asset will automatically decrease which may result in the shutdown of the company. If the company will not adopt the changes it will also have an adverse effect on its brand.

Nokia overestimated the idea of its brand and recognized that whether it is set up to make up for some ongoing misfortunes rapidly. Indeed, even today, there are individuals who guarantee that if Nokia had stayed with its own working frameworks, rather than grasping the Windows Phone in 2011, it might have succeeded. Notwithstanding, it neglects to see that brands today are not as versatile as they used to be.

Nokia faces authentic troubles in a generally changed phone market. It ought to radically adjust its strategy and things fundamentally to survive in this competitive environment. At this convergence, if Nokia will not adopt the current changes then it will really become impossible for Nokia to transform into a noteworthy part in the buyer equipment business again.

4. Change strategy, Change management models and its relevance
4.1. Change Strategy of Nokia

For survival in the market, a company needs to respond to the changes and act according to the need of the market. The changes are different for the companies according to the respective industries and how the consumers expect them to be. The change in the organizational structure depends on the responses of the employees and also the relationship between the management and the workers. The changes need to be strategic so that it can help the company to earn more profit and gain expansion as well as a competitive advantage in the market. A company like Nokia requires a change in terms of innovation and the importance of introducing recent technologies (Ruggiero et al., 2020). To compete with the market, it needs to transform and develop the models, their systems, and the software. Consumers expect newer technologies with the growth of generations. The strategies that Nokia can take for their expansion can be many. They can merge with some other companies that can fit their status or they can change their financial strategies by selling more of their shares. The management team can also be aligned newly and the company can also concentrate on cost-cutting (Khan et al., 2017). Changes, many times, are slow to be adapted and therefore, it affects the growth. If they are not properly utilized, or not understood by the employees, it does not benefit the ultimate growth. It must help the workers within the industry.

Till the year 2006, the handsets produced by Nokia used to be the highest selling in the market. The lead was undisputed as it used to enjoy the maximum share of the world’s mobile market. After the introduction of the iPhone 3S in 2007, the market was challenged. In 2008, both Micromax and Samsung became popular while in 2009, android became known to the world. The Smartphone started to be accessible and the market of Nokia was heavily attacked. In 2012, Nokia announced its partnership with Microsoft. This strategy was not proved to be very helpful as they were facing many challenges with the windows system of the handset. In the meantime, dual SIM card facilities were launched by Nokia and they tried to fight back with low-cost mobiles. Initially, the competition from companies like Samsung, Apple, Sony, etc was not understood. In strategy making Nokia made one more mistake too by electing a non-Finnish CEO of the company. This accelerated cultural confusion amongst the workers as Nokia in reality was a Finnish organization(Alibage and Weber, 2018). To help the employees, the organization did not announce any incentives too that resulted in a high percentage of staff turnover. Later in the market, Nokia has tried to maintain its self-identity again by removing their names from Microsoft. Now strategically the company needs to be motivated and innovative in terms of technology. The company has to find newer platforms for its business tool to get profited. While applying the strategies, Nokia can also handle the changes by educating the workers. To be active in the present-day market, the strategies of denial cannot be proved helpful rather the problems can be addressed and solutions can be found out by understanding the trends.

The required strategic changes in Nokia as an organization can be done by using several appropriate models of strategic change. It is important to align the employees with the business goals of the company to get a successful outcome. While choosing a model, it needs to be learned if it is helpful for the communication of the workers. Here, in this evaluation, two models can be selected that will help Nokia while introducing a strategic organizational change.

4.2. ADKAR Model

Nokia net sales Nokia Change Management Strategy

Figure :ADKAR model of change
Source:(Lucidchart Content Team, 2020)

ADKAR model for change management is one of the most accepted amongst all. The steps that this model follows are closely connected. This is very effective not only to handle change in an organization but also to sustain it. Practically this model was developed by Jeff Hiatt in 2003. The model in Nokia will help in identifying why change is difficult and what factors are included in the change. The resistance of the employees that can occur in the organization can be resolved with the application of this model beforehand. This model involves five particular sequential stages.

  • Awareness: This step is recommended as the first of all while introducing change in an organization. Nokia previously has faced huge issues and a hit from the competitive market. Change is not sudden. Before introducing change the company has to make the employees understand why change is necessary (Galli, 2018). The awareness in the company has to be developed so that in the long run it does not face any problem due to change.
  • Desire: Nokia has to determine how change can be desirable to the employees. The employees need to understand that change is made for benefits. If it helps the company to improve, their interest will be fulfilled too. The company has to train the employees so that they can accept change in the structure. To gain the support of the employees during change will be vital. This will be beneficial for both parties (Dana et al., 2016). Nokia previously has faced huge resistance from its employees. To reduce this chance again, creating desire amongst the employees will be needed.
  • Knowledge: Knowledge is important to be gathered by the employees. Knowledge of how change is happening, through which processes it will help the company to achieve competitive advantages, and how it is related to the future of the employees need to be disclosed to the employees by the management of Nokia. To reach the ultimate goal, this is very important for the company.
  • Ability: During a change, many new aspects will be introduced. Nokia has to understand whether the employees can accept them. The ability has to be grown so that the employees can learn new skills with great interest (Galli, 2018).
  • Reinforcement: This step will make sure if Nokia can sustain change. Through this particular step, the organization will make the employees understand that after the change is done, no turning back is possible. At this stage, the company has to help the employees whenever they feel uncomfortable with change and help them to get used to it (Dana et al., 2016). Through communication, workshops, and training, Nokia will be able to reach the employees.

4.3. McKinsey 7-S Framework

Nokia net sales Nokia Change Management Strategy

Source: (Team, 2020)

This framework after the development in 1970 by Tom Peters and Robert Waterman showed how change can be implemented successfully and how every part of the organization can be kept in harmony. It talks of the seven most important elements in an organization that are to be aligned carefully to achieve success. The seven elements can also help Nokia to implement change to sustain within the competition and continue the business successfully.

  • Strategy: This is one of the most important of the hard elements in the organization. Nokia will sustain itself as an organization in this high competition if the strategies of change are not carefully planned. This will help Nokia to build and maintain a plan after the change is introduced how it will support to gain a competitive advantage over its competitors.
  • Structure: The structure of an organization plays a very important role in determining how and to what extent change has to be introduced. In the organizational structure of Nokia, change is constant and inevitable. The members have to accept change positively.
  • Systems: The daily activities of the employees at this stage are to be concerned. In Nokia, how the employees perform to do their jobs regularly needs to be measured(Shaqrah, 2018). This hard element, with the change, will be influenced the most. The jobs of the employees will be changed. They need previous training so that they can cope up with change and no unavoidable resistance occurs.
  • Shared values: This talks about the core values within the organization. All the employees, through these values, somehow get influenced (Ageng'o, 2018). If change is done in Nokia, it is to understand whether the core values will be affected. If anything is determined to be unnecessary in the shared values, Nokia can alter them with the other. The interests of both the company and the works should be taken care of.
  • Style: After the change is done, the adopted leadership will be an essential factor. It will be the leader who will drive the employees in the right direction (Ageng'o, 2018). In Nokia, therefore the leadership strategies and styles will have to be carefully selected.
  • Staff: All the employees will never support change. Some will try to learn but the others will resist. Resistance was previously faced by Nokia too. Keeping that in mind, the mentioned organization has to select the staff and training has to be provided. For recruits, change can be offered to them as a constant (Shaqrah, 2018).
  • Skills: This will show how competent the employees are in the organization. Like any other company, in Nokia too, skills will not be considered as static. Learning abilities and interests for knowledge will develop the skills of the employees.

4.4. Kotter’s Change Management Model
For strategic change management, Kotter’s change management model is also proved to be very helpful. Like Lewin’s model, this also includes certain steps (eight stages in particular) and important criteria to be taken care of. This model has some essential features that should be measured before making a change. Otherwise, both in the short-term and the long-run, success will not be achieved. As it is said earlier the employees are the most important assets in responding to an organizational change, this strategic change management model focuses on the employees’ response to a change in the company.

  • Increase urgency: At the beginning of implementing changes, this model suggests that it is vital to create a sense of urgency amongst the employees. The urgency for making a change in Nokia will help the employees to get motivated during the process. The terms of the company will be fulfilled if it is properly done and the workers will be interested in doing their job too (Das, 2019). This will help in reducing the chances of employees’ resistance during change.
  • Build the team: In the next stage, it will be essential to building one or several teams with those who can be of help in making the change. In Nokia, the teams can be made consisting of the CEO, the directors, the managers, the leaders of the teams, and the representatives from the employees. This will help in educating the persons too so that the upcoming troubles while implementing changes can be smoothly overcome.
  • Get the vision correct: The change in Nokia should not only be done using strategies but the external factors like the objectives for change, the workers’ emotions, and creativity have to be considered properly (Hayes, 2018). The objective of making a change in Nokia can include the need for survival in the market by improving the technologies. Employees can be offered bonuses and incentives for good work. It will grow a sense of ownership in them.
  • Communicate: To keep everything transparent to the eyes of the members of the company is essential. Why Nokia is making changes and what the results can be to it, have to be known. Otherwise, like previous, it can bring about troubles in this particular organization again and that will reduce the chance of their fightback.
  • Get things moving: Many times, it is seen that the change of an organization gets blocked abruptly. Nokia has to be aware and see that the process does not get stagnant in the middle of the way. The leaders, in this context, have to keep their eyes constantly. The stagnancy in Nokia previously attacked their identity (Das, 2019). It is to be learned that this must not happen again.
  • Focus on short-term goals: In the industry where Nokia is a part does not always look at the long-run improvements. Nokia has to consider short-term achievements too that can bring certain changes in the future. This will also help in understanding the path through which the change is going to happen and if anything goes wrong the company will be able to rectify immediately.
  • Incorporate change: Nokia can incorporate the culture of change inside the workplace. For the new attitude, the employees can be rewarded. This will ultimately help the members in making adjustments and the company will be strategically benefitted to introduce bigger changes in the future.
  • Don’t give up: Changes take time to get implemented properly. If the company fails again; it must not stop looking forward. Obstacles will be inevitable but with a positive attitude, Nokia can bring changes and certain improvements. This behavior is necessary for its expansion.

5. Plan for stakeholders and stakeholder engagement
5.1. Change management Strategy involving stakeholders

Nokia net sales Nokia Change Management Strategy

Figure 2: Proactive change
(Source: Self-generated)

The nature of change must be proactive in order to rebuild the image of the Nokia Company. According to earlier reports, it has been found that Nokia has a tremendous loss in the market. The market share of the company has fallen extensively, hence in order to increase the market share the company must follow the proactive nature of change and this will lead to the successful growth of the company. It is important to satisfy the demands of the customers with the help of this change Nokia can again meet the demands of the customers. The following points for this nature of change have been discussed below.

Desirable- The change must be desirable by that it means the strategic plan must be desirable so that the employees support it and proceed with the work accordingly. Organizations cannot make any new changes alone; employees are the main aspects who process the changes in the organization(Majava and Isoherranen, 2016). And also, the changes must be planned in order to create satisfaction among the customers. The company needs to design mobile with highly integrated software to compete with other mobile brands in the world.

Initiate by the organization- The change must be initiated by the organization. The first step for the organization will be to prepare for the change which includes a few stages like the change management strategy must be defined to the employees and train them to work accordingly, next is it must be preparing a team who will work for the change management in Nokia. And then assess the sponsorship structure, the main sponsors of the new change of Nokia company (Majava and Isoherranen, 2016). The second step will be to manage the change by the organization which includes stages like establishing the management plans. After the plan has been prepared it needs to be established. Next stage applying the strategic plans in order to remove all the issues related to the design and gains the trust of the customers.

A benefit plan is always attached- To make the plan work, it is necessary to attach a benefit plan. A benefit plan must include outcomes that are positive in nature. This will help the company to understand the customers better and their preference for the mobile can be measured(Majava and Isoherranen, 2016). Feedback from the customers is also helpful that will help to create the proper structure of the plan. Earlier, Nokia was one of the successful telecommunication companies so to again bring that back attaching a benefit plans from beforehand would help the company to make the recent plan succeed.

Positive outlook- The plan must have a positive outlook; this will create interest among the employees who will be working for it. Creating positivity increases the chance of getting success which will implement, evaluate, and analyze the plan successfully. Proper strategic planning would help Nokia to rebuild its profile again in the telecommunication market. Encouraging and inclusive- The plan must be encouraging which will create interest among the employees to develop the plan successfully. Inclusive design and ideas will lead to survival in the competitive market of the telecommunication industry.

5.2. Change perspective of involving stakeholders

Nokia net sales Nokia Change Management Strategy

Figure 3: Resource Dependency
(Source: Self-generated)

The stakeholders of Nokia helped the company to build its image and gain a competitive advantage in the telecommunication industry. But lack of proper adoption of the changes the market share of the company fell extensively (Wang et al., 2016). However, the company can again build its profile by adapting the changes and understand the demands of the customers and create customer satisfaction.

5.3. Stakeholders identification

Nokia net sales Nokia Change Management Strategy

Figure 4: Identification of the Stakeholders
(Source: Self-generated)

5.4. Stakeholder’s analysis

Nokia net sales Nokia Change Management Strategy

Figure 5: Stakeholder’s Analysis
(Source: Self-generated)

Stakeholder analysis will help to analyze the stakeholders closely after identification of them. This will give the telecommunication company to understand their needs. This will give the company to analyze each one’s importance and who are affecting positively and negatively. Nokia aims to build a connection with people, therefore analyzing all the major stakeholders would help the company to gain the trust back and also serve their demands successfully(Vuori and Huy, 2016). Stakeholder analysis will mitigate the negative impact of them and make a better relationship with the stakeholders. It is important to analyze the stakeholders as per their power and interest in the company.

  • The stakeholders, who are occupying the high interest, and high power quadrant, it is crucial to keep them highly satisfied, manage them very closely; inform every update about the new design of the mobile, and also the new processor of the mobile. This will help to build brand loyalty with the customers(Doz and Wilson, 2017).
  • The stakeholders who are in the high power, and low-interest quadrant make proper decisions to keep them engaged in various works, but one thing needs to keep in mind too much work might lead to a negative impact on the telecommunication company.
  • According to (Doz and Wilson, 2017), the stakeholders who are in the low power and high-interest quadrant, they are generally very much helpful for the changing plans because they will help the customers to know about the recent trends of Nokia hence this will attract the customers, therefore always keeping them informed will maximize the reach of the company.
  • The stakeholders who are in the low power and low-interest quadrant do not require a huge effort from the company but they need to be monitored so that the rules and regulations or laws can help the company to influence the growth and also this will save the company from any negative impact.

All internal and external stakeholders are very much crucial for the change management strategy to be successful. Proper analysis of all the stakeholders would help the company to find out the gap and work on it. The benefits of stakeholder analysis are it will help the company to understand their interest and evaluate who will be affected by the change management(Doz and Wilson, 2017). This will encourage the employees to take part in the change management and make a strategic plan to enhance the market share which will increase the customer reach and create customer satisfaction. This will also help to mitigate the negative impact that might hamper the change management and losing the trust of the customers. The analysis will also help Nokia company to evaluate the potential risks involved and work on it so that it can be prevented from beforehand. A proper plan of communication and strategy of stakeholder management would help the company to execute the change plan successfully and informing media about the design and launching of the new product would help to increase the market share effectively. As with the help of media, Nokia can connect people properly again and rebuild trust effectively.

5.5. Communication Strategy




Main Action

List of activities


Investing in shares of the company y(Muller and Bevan-Dye, 2017).

Quadrant I

Manage Closely

Purchasing of physical assets, securities investment, sale of assets, acquisitions of businesses


Sales and marketing

Quadrant II

Closely related

Working part-time o full time in any job assignment takes reasonable care of works that is designated to him, cooperate with the employer, barters his knowledge and skills in exchange for compensation(Muller and Bevan-Dye, 2017).


Investing by buying capabilities

Quadrant I

Buying capabilities

Consumption, Recipient of services, goods, products through the financial transaction.


Prescriber of shares in the company

Quadrant II

Increasing stock values, and purchasing shares

Minimizing risks of investment owns share or shares,


Communication strategy or also known as strategic communication which generally means communicating concepts or procedures, data's which is satisfying the strategic goals of the concerned company and allows the facilitation for advanced planning. Communication strategies can be of various types (Muller and Bevan-Dye, 2017). It can be oral categorization, as well as non- verbal communication strategies also. These communication strategies are mainly used to exchange information between the receiver and the sender. The technology has changed the concept completely and it is very vital to take it into account for relaying the information. Like that Nokia is a renowned company and they also have their communication strategies like other companies. Nokia is now occupying the highest rank in the listing of telecommunication providers and having a market share of 36% which is representing 100 million units to be sold in the last 2009. The phone market like the other technological products is a type of market in which the products after attaining party evolve as a feature of the mobiles and also the same irrespective of the maker. The features do not make the company a leading company. It is the branding that gives the company the leading top in listing. And Nokia has kept this on the top of the heap. The brand is the main image that comes in the mind while mentioning any type of generic product. According to certain researchers, an individual feels the guts relative with any product or services of the company that gets a promotion. The brand is the main context for which the audiences appreciate the products or the services that the company offers (Muller, and Bevan-Dye, 2017). The brand Nokia is all about building trust and friendship and removing all the gaps between consumers and Nokia. It is the type of a human dimension that has descended each of Nokia's products and making them more apparent romances with the owners.

5.6. Resistance
As to counter the negative forces it is important to employ strategies to overcome the resistance to change (Ahmed et al., 2019). And it is also vital to identify the types of changes resistance that is going in the company. It is a misconception that the changes affect the employees of a low level but it is not true. The changes that occur in organizations affect the organization from maintenance up to higher management (Ahmed et al., 2019). The resistance to change generally occurs because the individuals are being scared of the unknown. And the changes come suddenly in the way. It is a very natural reaction of every human being in the workplace. Not only has this can poor communication also showed the way of resistance to change (Sulphey, 2019). While the employees do not feel that they are a part of that project or unable to understand the concept or not being updated in the progress of the project then at that time the employees resist the change or make indifferent views. The strategies need to be followed to overcome the resistance to change.

1. To overcome the resistance the best strategies to communicate. Why, How, and what it is very essential to communicate. Developing a communication plan which is more important for telling the employees what the person wants to do(Sulphey, 2019). The segments of effective communication and the target of the audiences focus on the way of care.

2. Next, it is a very important strategy is while the employees are being involved in any changing efforts then they are more prone to bring such change rather than resisting it. This strategy will lower the resistance and then the people can acquiesce to change.

3. One of the other good strategies for overcoming the resistance to change is the fighting with the resistance(Sulphey, 2019). To conducting these team members needs to be trained. These people will serve as role models and will influence the rest of the employees. This strategy also had a ripple effect.

6. Conclusion and Recommendation
Every human being in the 21st century likes to remain connected and this connection is not new. It has been started long ago. From the decade of 1990, the telecommunication industries in the globe have experienced three types of significant positive transition which is setting the foundation for future growth. These three trends were the increasing uses of the internet, deregulation of the markets which made the new competitor become more advent and the most important is the increasing popularity of wireless devices and services. And these three strategies were being implemented and adopted by one of the old telecommunication company Nokia. It has been seen that from the last 2 decades the mobile market has gone through various ups and downs. That Nokia is a wireless renowned brand that has also gone through various ups and downs in the market and also in the strategic changing. Nokia being a renowned company has encountered a decline in its business due to certain factors that lead the corporation to adopt changes. The company was established on 12th may 1865 on account of an individual paper mill operation. In 1967 Nokia Corporation was originally established. The company serves telecommunication, networking, information technology, and consumer electronics. Nokia began to focus on the mobile phone industry in 1992 and swiftly achieved a large market segment. But the sales do not go the same as it has started its business. In this paper, the strategic changes that Nokia has gone through are depicted. The marketing share that Nokia had in 1999 has gone above the level in 2007-08. But it has again degraded from 2011 onwards. The change strategy has been adopted by the company as to entail the business. Certain factors that need change for Nokia are due to the Smartphone revolution which was not paid enough attention by Nokia. the availability of high-end products at cheap prices changed the consumer behavior pattern which went unnoticed by Nokia. The company failed to maintain pace with the demands of the consumers. And as an outcome, the cultural disparities and lack of appropriate leadership led to a change in Nokia. The company required a proper leadership that could encourage development and growth irrespective of the existence of cultural barriers. For adopting the changes the company adopted various strategies. The change strategy, the change management models were being implemented by the company to revive the business. Kurt Lewin’s Change Management Model, Kotter’s change management model is also being used as a changing model theory for Nokia, which is already depicted in this paper. This paper also discussed the change perspectives which vest suited for the company. At the end of this paper, it is seen that the communication strategy followed by Nokia is also depicted. Along with this the strategies to overcome the resistance of change are also discussed in this paper. It can be expected that the company can uphold its business by implementing the strategic changes theories, plans, etc. Keeping in mind the impending facts that have been faced by the company, the changes are the best interest of Nokia.

1. Nokia must adopt the strategic plans, models, as it is required for uplifting the business.
2. It is very vital for the company to figure out what the company wants to be. The mission of Nokia should be enhanced and it must fit the market. As to become a premier mobile developing company the vision needs to be developed which will be a good start. The strategic competitive reason for existence can be developed by Nokia id they adopt the changes and embrace them.
3. It is also recommended that not to embrace android. Android is a type of development that comes from non-communicative strategies. It is said that it has evolved rapidly and Nokia needs to examine them like Blackberry, iOS from different perspectives.

4. The next recommendation for the company is to simplify the company radically. The company needs to eliminate all the barriers to execution. Do not conduct those meetings that have no values. People need to pursue their passions. By using a standard connection for power and also for data transferring, it helps to achieve a competitive advantage.

5. Next it is recommended that the marketplace for Nokia. Figuring the market for the android is very potential because it is the only competent alternative of Apple and also has high-end market demand.

6. It is recommended that the carrier partnerships be followed by Nokia. Working on the deals will be beneficial for the telecommunication company. And it is also recommended for Nokia to be the advocate of all the customers to all the carriers, not being a mere excuse for the customer via the carrier.

7. Nokia needs to concentrate on other markets as well as the UK markets. It should concentrate its markets in Latin America, the Caribbean. And also needs to give attention to the handset updates to provide smooth experiences for the customers which will again enhance the market for Nokia.

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Stakeholder’s orientation
The engagement in the hotel industry and assimilation with the industry have offered a great knowledge and understanding and depicted a way of life with value and virtues. The industry offers opportunity to interact the various stakeholders and creation of values in business for the stakeholders seeking their active engagement in the industry. As the hospitality industry focuses on the value creation, we are engaged in the forming the ecosystem to optimize and create higher values for the stakeholders of the industry. The stakeholders who are incorporated within the industry come from partners, customers, society and employees. The engagement of stakeholders through value creation can only be possible if there is resilient, healthy and sustainable business that offers higher propositions. The active stakeholder’sparticipation in the hotel industry develops effective leadership practice and creates valuable culture within the industry which indicates the sign of good prosperity. The industry’s progress and value creationis indicative of values in the choice of our career which will be laden with progressive value along its progress and development.


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