Professional Documents
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Of Technology and Management: Icon College
Of Technology and Management: Icon College
Course:
BTEC LEVEL 7 ADVANCE PROFESSIONAL DIOLOMA IN MANAGEMENT
STUDIES ( DMS)
UNIT 02
Submitted by:
STUDENT ID # 3062
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Task-01
Change is the major factor for the development of any organisation. Every organisation is
changing and it is a process. It effect in four areas: Task, Technology, People and Structure.
Manufacturing process is one of the important factor for change management. Nokia Mobile
range of mobile devices with services and software that enable people to experience music,
navigation, video, television, imaging, games, business mobility and more. Nokia also provides
equipment, solutions and services for communications networks through Nokia Siemens
Networks. During the year ended December 31, 2007, the Company had production facilities
for mobile devices and network infrastructure around the world, sales in more than 150
countries, and a global network of sales, customer service and other operational units.
Company Profile:
Nokia Corporation
Nokia House, P.O.Box 226 Keilalahdentie 4
Espoo 02150
Production units:
Market Segmentation:
Very few products or services can satisfy all customers in market. Not all customers want or
are prepared to pay for the same things. Market segmentation may be defined as the
Differentiation
Of the hundreds of customer-inspired hacks that have emerged, the most powerful is a program
called Podzilla produced by nokia- essentially a bare-bones version of Linux with a graphical
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user interface that runs on the iPods tiny screens. Not surprisingly then, the Mac OS X based
Take market segments for example. By understanding the well-established market segments
for the iPod, its possible to predict market segments for the iPhone. And if theres any merit in
that speculation, then one of the surprising demographics for the iPhone will be teens.Teens
have been practically weaned on the iPod. The iPod plus various transportable and mobile
gaming platforms like the PS2, Xbox, etc. Many teens already have cell phones, or will soon.
Although the iPhones USD 500 price tag is steep, the value becomes evident when you consider
Theres no question that those of us hooked on our Crack Berries will be interested in tempting
ourselves with the iPhone. However, itll be much more interesting to monitor uptake by teens.
Target market:
Market segmentation is a means to an end : target marketing. This is the choice of specific
segments to serve and is a key element in marketing strategy. A firm need to evaluate the
segments and decide which ones to serve. For example , CNN targets its news programmes
to what are known as influentials. This is why CNN has, globally focused so much of its
distribution efforts into gaining access to hotel rooms. Business people know that whatever
they are in the world they can see international news on CNN in their hotel. Its sports
programming is also targeted, with plenty of coverage of up market sports such as golf and
At the annual Nokia Capital Market Days in New York, Nokia senior management set out clear
targets and milestones to hone existing and build new competitive advantages for continued
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- To achieve a mobile device operating margin of 17% - 18% in the medium term (two to three
years)
- To achieve an infrastructure operating margin of 14% in the medium term(two to three years)
"Our target in the mobile phone industry is to continue leveraging our leading position and to
further increase our global market share, said Anssi Vanjoki, Executive Vice President, Nokia
Internet calls on a Nokia phone made possible with the first Nokia UMA network solution,
3GSM World Congress 2006, Barcelona, Spain Today, at the 3GSM World Congress, Nokia
unveiled three new devices; First: introduced its first UMA network solution; announced
collaboration with Vodafone aimed at increasing usage of the S60 platform. Second: Launched
additional frequency variants for the Nokia Flexi WCDMA Base Station and third: Announced
a new cooperation agreement on DVB-H interoperability. Nokia unveiled the Nokia 6131 and
Nokia 6070 mid-range GSM camera phones, as well as the Nokia 6136 Unlicensed Mobile
Access (UMA) device. The Nokia 6131 comes in a folding design and offers a 1.3 megapixel
camera, while the Nokia 6070 comes in a classical form and offers basic camera phone
Nokia is the largest vendor of telephone handsets in the world with 40% in the global market
and EUR 13.5 billion in operating revenue in 2007. Nokia scale advantage manifests itself in
low cost, high margin handset. The company aim to take advantage of its scale by expanding
into emerging markets in china,India,Latin America, Africa and Middle East which collectively
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Nokia occupies a dominant position in the global handset market, contributing almost 40% of
the global markets wireless handsets. In 2007 nokia sold 437 millions or 38.4% of the 1,138
Nokias size means it can exploit economies of scale, that is average production cost fall as
NOKIA
437.1 $134 $113 $20.9 15.6%
MOTROLA
250.6 $154 $138 $15.9 10.3%
SAMSUNG
189.5 $205 $177 $27.8 13.6%
LG
99.3 $174 $164 $ 9.5 5.5%
SONY ERICSSON
93.6 $184 $170 $13.3 7.3%
churn out approximately 325 million handsets this year alone. That's 10 phones per second,
only to innovation but also to product quality. As a result, the company actively evaluates its
manufacturing processes knowing that any process improvements can directly affect the
quality and reliability of its products. Nokia Finland has recently begun testing its complex
base station printed circuit boards with Agilents BGAOpens Detector, a patent-pending
feature of the Agilent 5DXX-ray test system. This paper describes how Nokia beta-test-ed the
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BGA Opens Detector as well as the process improvements that resulted from this new
technology.
In the following slides, see how the workers at Nokia's plant in Salo, Finland, make a phone,
from raw materials to finished goods. Process design and product design are most important
Process design:
Process design is a complex process requiring expertise and the correct set of process design
tools to accurately depict the process. Process design, whether designing a new process or
modernizing an existing process, require knowledge of the process equipment, the chemical
practices in order to produce accurate mass and energy balances for the process.
Proper process design incorporates simulation software in order to accurately model a process
to ensure that the process can be designed safely with the lowest total cost of ownership by
increasing the efficiency of the design engineers and reducing the time needed to complete an
accurate design.
Simulation software can create rigorous mass and energy balances based on the processes
Product Design:
Product Design is an activity which defines and reacts to society and culture, shaping our
environment, facilitating daily life and providing a powerful medium for communication and
expression.
Designing new products involves choices and decisions which may have an effect reaching far
beyond an individual designer. In turn the design process is affected by numerous external
factors such as manufacturing process or consumer habits. Such factors are made tangible via
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project stakeholders: the individuals or organisations that provide the requirements from which
a design is generated.
Successful product designers draw upon a wide range of expertise, combining technical literacy
with knowledge of the business context and human factors, while developing creative and
Nokia (Past):
Nokias first century (1865-1967) a half of innovation, from a riverside paper mill in
southwestern Finland to a global telecommunications leader. The move to mobile from roots in
paper, rubber, and cables, in just over 100 years nokia becomes a powerful industrial
conglomerate. The newly formed Nokia Corporation is ideally positioned for a pioneering role
in the early evolution of mobile communications. The period 1997-2002 marks the beginning of
this period, Nokia had 48 strategic alliance agreements, of which 25 were joint development
agreements, 16 co-production contracts, six joint ventures and one standardization consortium.
Nokia has many joint R&D agreements on relatively new technological capabilities with weak
ties (Granovetter 1973), i.e. with partners it did not collaborate before.
Nokia (Present):
Nokia mobile corporation now is a player in mobile industry. Nokia now plays a lead role in all
aspects of the industry in handsets, networks, operating systems and new gaming software.
From January 1, 2004 through March 31, 2007, Nokia also provides equipment, solutions and
services for communications networks through Nokia Siemens Networks. Nokia now
actively evaluates its manufacturing processes knowing that any process improvements can
directly affect the quality and reliability of its products. Nokia Finland has recently begun
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testing its complex base station printed circuit boards with Agilents BGAOpens Detector, a
patent-pending feature of the Agilent 5DXX-ray test system. This paper describes how Nokia
beta-test-ed the BGA Opens Detector as well as the process improvements that resulted from
Currently, Nokia establish a new manufacturing plan in Cluj, Romania, which will start
operations in spring 2008. Nokia expand mobile device production in China from Finland to
meet growing market demand, particularly from the Far East. Nokia also expanded Dongguan
plant in China will begin production the third quarter of 2006. The expanded plant will be
located adjacent to nokia's existing facility. More importantly, it established a $150 million
handset manufacturing facility in Chennai in 2005 and Nokia also established several R&
Task-02
Change management is a structured approach to change in individuals, teams, organizations
and societies that enables the transition from a current state to a desired future state about
Nokia. From a business perspective, the change may be a new business process or new
technology or growth. From an individual perspective, the change may be a new behaviour.
From a social perspective, the change may be a new public policy or the passing of new
legislation. There are two key causes or factors has influenced the change. The factors are
2. Internal factors
Wiley J and Sons (Nov 2005), Managing organisational change, 2nd Australasian edition
Usually the External forces for change are originated outside the organization. Because these
forces have global effects, but it may also cause an organization to question the essence of what
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business it is in and the process by which products and services are produced. The external key
factors for change are technological change, market changes, economic, demographic
Technological change :
Many organisations have utilized technology as a means to improve productivity and market
this regard. The will be there to keep the man from touching the equipment." by Warren Bennis
(Articles relating the cultural change, aol search). As we all know that both manufacturing and
service organization are increasingly using technology to improve productivity and market
Market change:
The third change is the market change. Companies have to force new partnerships with their
suppliers or manufacturer in order to deliver higher quality products at lower prices as the
emergence of a global economy is forcing US companies to change the way they do business.
Nokia had to collaborate with a local manufacturer in order to enter the the mobile phone and
network technology markets in China, and Brazil but also in Australia. The local or national
authorities or government required Nokia to nationalize their production facilities abroad. This
nationalization process usually meant that (part of) a local manufacturer took care of the
production process or that a local company sold the products in the name of Nokia. For many
foreign entrants, this was the only way to sell their products to the local market. In the case of
Australia it used to be so that part of the product (nokia) had to be manufactured in Australia in
Economic factors: The economic factors is another key factor about changing . These are
follows:
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Income level / GDP
Inflation / Interest
Balance of Payment
Chinese income level or GDP now 10% which is the highest in all over the world. Inflation,
foreign exchange rate and balance payment are also positive for foreign investment.
The Demographic characters make us understand that the workforce is more diverse and that
there is a business imperative to effectively manage diversity. Mangers play a key role in this
as the organizations need to effectively manage diversity if they are to receive maximum
contribution, dedication and commitment from employees. As we all know that both
productivity and market competitiveness. Nokia established nine factories around the world,
large quantity of skill and dedicate workforce are working in this factories. They are also using
Internal forces for change come from inside the organization. These forces may be subtle, such
as low morale, or can manifest in outward signs, such as low productivity and conflict. Internal
forces for change come from human resource factors, managerial behavior/decisions and
collective bargaining agents (C.B.A). Nokia is well established company which started from
Hunan Resource Dept, Managerial Behavior/Decisions and C.B.A of nokia corp. are well
balanced. In that case, internal factors are not influenced to the change of this organisation.
Wiley J and Sons (Nov 2005), Managing organisational change, 2nd Australasian edition
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Task- 03
Change process:
Change can be viewed as a one-off event , an expectation to the normal running of an
the other hand, some organisations see change not as an exception but as a norm, a continuous
Force change
Planned change:
Organisations can and do change through a natural process of development. Any organization
can be different ten years from now whether it desired and planned to change or, conversely
was an unaware of change taking place. This changes will be observable and measurable.
Planned change implies a conscious and positive decision to bring about a desire difference.
The range of change situations and approaches, therefore, need to be borne in mind when
considering the following six interrelated activities that make up the planning and change
process:
Establishing a change management team
Management structures
Activity planning
Commitment planning
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Force change:
Organisations, therefore, in seeking to create a willingness and a readiness for change, need to
be aware that stressing the positive aspects of any proposed change may be much less impact
than they might imagine. This point was recognized by Lewin(1947a) when he argued that the
status quo needs to be destabilised before old behaviour can be discarded (unlearnt) and new
work on field theory, Lewin recognized that the status quo occurred when the forces of change
and the forces of stability were equal. To bring labour change, one had to increase the strength
of the former and reduce that of the latter. Like Machiavelli, however he also recognized that
making proposed changes seems attractive had less effect on increasing the pressure for change
that making the current situation less attractive,i.e it is often easier to create a readiness for
change by making people dissatisfied with their current situation, and thus prepared to consider
alternatives, than to try to paint a rosy picture of the future. Force changes are occurring from
following cases:
Regulatory Agencies
Government legislations
Compliance
Shareholders and
Competitors
Planned change is a rational change and force is sudden change. The change about nokia is
planned change because of market changes and requirements for global cost efficiency and
flexible capacity growth. However, as Handelsblatt notes, wages add up to less than 5% of
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production costs and Nokia's profit margins are already the highest in the sector. According to
preliminary products.
The change about nokia is also force change . According to Financial Times Germany, a
company spokesperson as saying that most of the suppliers are located in Asia. He also said
that increasing flexibility of production may require an increase in manual work which is
considered too expensive in Germany and Finland. In that case, to continue as a market leader
and increase global market share this change was most necessary for nokia mobile
communications.
Change models:
There is a wide, and often confusing, variety of approaches to strategy development that
organisations can adopt. It follows that the same comment can be made with regard to
the types of strategy that organisations do actually adopt in order to achieve competitive
EckesModel
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Lewins suggested that organizational change could be understood in terms of three
consecutive processes:
the change.
2. Movement: Moving to the new level involves bringing about the requisite
change itself. The time period given over to this phase varies widely.
creating the guiding coalition and empowering broad based action. This
framework for change management offers a different perspective from the legacy
3. Develop a vision
5. Empower stuff
7. Consolidate gains
Beckhard and Harris (1987) is a simple yet powerful tool that gives you a quick, first
change quotation can be seen as a mejor milestone for the field of organisational
development. It has expanded gradually over time, in response to the needs of employers
who not only want to move their organisations forward in terms of business objectives. The
DVF>R
=
Dissatisfaction Vision First Steps > Ressistance to Change
It is important to note that the three components must all be present to overcome the
of what is possible in the future, and achievable first steps towards reaching this vision. If
any of the three is zero or near zero, the product will also be zero or near zero and the
The action research model places heavy emphasis on data gathering and diagnosis prior to
action planning and implementation, as well as careful evaluation of results after action is
3. positive approach
- positive stories
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Eckes Model:
George Eckes' Six Sigma model approach the most sought after and well respected in the
field is his emphasis on a methodology that encompasses a strategic, tactical and cultural
approaches, Eckes' use of Business Process Management helps management identify and
measure the project and process that will drive the organization's improvement in line with
strategic goals, and his emphasis on tactics include DMAIC, where project teams define,
measure, analyze, improve and control the outcome of Six Sigma performance related
Q* A = E, where
Q= Quality
More generically ..
Each of the theories described above suggest a general framework for planned change.
This general framework describes the four basic activities that practitioners and
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Entering and contracting: It includes those events which help managers decide whether
they want to engage further in a planned change program and commit resources to such a
process.
Planning and implementation change: Organization members and practitioner jointly plan
Evaluating and institutionalizing: The stage involves evaluating the effects of the
Nokia is the largest vendor of telephone handsets in the world with 40% in the global
market and EUR 13.5 billion in operating revenue in 2007. Nokia scale advantage
manifests itself in low cost, high margin handset. The company aim to take advantage of its
scale by expanding into emerging markets in china,India,Latin America, Africa and Middle
East which collectively constitute 40% of the global hand market and are growing.
From January 1, 2004 through March 31, 2007, Nokia also provides equipment, solutions
In 2006, Nokia expand mobile device production in China from Finland to meet growing
market demand, particularly from the Far East. Nokia also expanded Dongguan plant in
In 2005, it established a $150 million handset manufacturing facility in Chennai and Nokia
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The period 1997-2002 marks the beginning of the third generation of mobile
After going through the whole procedure of acquiring I can say that the Change Model by
David Gleicher, Beckhard and Harris perfectly fits with Nokia mobile corporation. The
change model explained by Gleicher, Beckhard and Harris there should be dissatisfaction,
vision and first steps and all three has to be greater than resistance to change. Nokia is a
world leader in mobile communications, driving the growth and sustainability of the
broader mobility industry. Chairman of nokia never satisfied, he is always hungry to get
more, get bigger and he wanted to be the true global leader. Secondly, Nokia senior
management set out clear targets and milestones to hone existing and build new
market. And the resistance to this change was historical but nokia chief dissatisfaction,
vision and first steps proved to be greater than the historical resistance to change.
Task- 04
The issues that emphasizes as I take on the implimentation of change are most important
factor for the success of any organisation . The real challenge of nokia corporation is the
evaluates its manufacturing processes knowing that any process improvements can
directly affect the quality and reliability of its products. Successful product designers draw
upon a wide range of expertise, combining technical literacy with knowledge of the
business context and human factors, while developing creative and interpersonal skills, in
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order to meet and exceed stakeholder needs. Process design and product design are most
important about manufacturing process. Nokia maintain this product and process design
Although many other questions could be posed, we believe that palnning to impliment
Currently, Nokia expand mobile device production in China from Finland to meet growing
market demand, particularly from the Far East. Nokia also expanded Dongguan plant in
China will begin production the third quarter of 2006. Dongguan is a strategic location for
Nokia's global supply network for mobile devices. Increasing capacity in Dongguan will
help Nokia to improve its competitive position in the fast-growing Chinese and Asian
Chennai in 2005 and Nokia also established several R& amp;D centers and labs in India.
Nokias senior management implement this process by collaborate with Chinese local
Almost all change management attempts are meet some type of barrier or resistance.
Resistance may be any structural, systematic or human barrier that impedes both
deliberately introduced and extremely pressured change. The purpose of this section is to
draw together the issues associated with fostering acceptance of change and to examine the
avenues for overcoming resistance. We consider the role of change theory and assumptions
in dealing with change responses, positive and negative, as well as the impact on resistance
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of conventional change management strategies. The source of resistance can be grouped
strategic priorities.
Others
The main resistance of change process implementation about Nokia are given below :
Government :
socialist country and they have a some specific law and regulations about investment.
Chinese government now remove subsidies and other support from investors. Nokia also
expand mobile device production in China with new linkages to foreign companies This is
Legislation:
Chinas legislative power is carried out by two or more power organs, which means the
country has multi legislative powers, including at national level, that for administrative
laws and local laws, each subject to different organ authority. As a foreign investor nokia
see local sourcing for overcome multi legislative powers in China . In that case, Chinese
companies can take advantage of new linkages to foreign companies to expand and upgrade
their operations. This is the another problem for nokia about change process
implimentation.
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Language:
Language is another resistance about change process implementation. Since the late 1980s
there has been a top-down movement to reform English language teaching (ELT) in the
Peoples Republic of China (PRC). The total number of Nokia employees in China area is
nearly 6,000. An important component for nokia of this reform has been an effort to import
communicative language teaching (CLT) in the Chinese context. CLT, however, has failed
to make the expected impact on english language teaching (ELT) in the peoples republic of
China.
Nokia mobile corporation now is a player in mobile industry. Nokia now plays a lead role
in all aspects of the industry in handsets, networks, operating systems and new gaming
software. Currently, Nokia expand mobile device production in China from Finland to meet
growing market demand, particularly from the Far East. Nokia also expanded Dongguan
plant in China will begin production the third quarter of 2006. More importantly, it
but also to product quality. As a result, the company actively evaluates its manufacturing
processes knowing that any process improvements can directly affect the quality and
reliability of its products. In that case, we can say that design is the main factor whose
effected in the nokias change process and the design are specially manufacturing process
design.
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References:
Douglas W. Steeples (1990), Managing change in higher education, 2nd edition, Pearson
Education 2000
Hall,2002)
Wiley J and Sons (Australia NOV 2005), Managing organisational change, 2nd Australasian
Bibliography:
Hall,2002)
Jim Stewart (1991) - Managing Change through Training and Development, Kogan Page
Ltd - 1996
Todd D. Jick (1993), Managing Change Cases and Concepts, Published 1993
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Journals / Magazines:
A good daily broadsheet eg, The Times, The Guardian, The Financial Times
Websites:
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