ORGANIZATIONAL

CHANGE

CASE STUDY
ON NOKIA
PRESENTED BY: KAYS
KHALID
ANUM SHIVANI
YOUSUF TIRMIZI
SIRAJ MUNIR
Brief history

• 1865
• Initially established as a paper mill in south-western Finland
1966:
Expands into 3 Division Cable work, Rubber work and Mill

1967:
Merged and named as Nokia Corporation.

1979:
Joint venture with Salora to create Mobira Oy , a radio telephone

1984:
Acquired Salora and changed its name to Nokia-Mobira Oy

1989-90:
Nokia-mobira Oy changed to Nokia mobile phones

1998:
The spectacular success of Nokia 6100 and become the worlds top cellular company

1998-2006:
Golden era for Nokia . Earning more than 50% of all profits in mobile phone industry
2010:
• Struggle to keep up with IPhone and Android.
• Hired Stephen Elop as CEO.

2011:

Partnership with Microsoft

2013:
Microsoft acquired Nokia handset for $7.2 Billion.
 WHAT HAPPENED TO NOKIA???
• Nokia was technically inferior to Apple and Samsung.
• The company was complacent.
• It’s leaders didn’t see disruptive smart phone coming. •
• The world changed too fast and their opponents were too powerful.
• They missed out on changing
• They missed out on learning
• Thus they lost the opportunity at hand to make it big
• Not only did they miss the opportunity to earn big money, they lost
their chance of survival.
Is the change necessary?
• Before discussing whether the change is necessary and what
environment Nokia possess, we shall discuss the types of business
environment.
• Two types of business environment:
1. Static Environment:
A business in which there is not much of change in business.It possess
stable environment which includes routine business decisions and
transactions and less major restructurings.
2. Dynamic Environment:
Those businesses in which they need to evolve with the change in
environment or need to transact their business with their environmen
 What business environment Nokia Possess?
• Nokia is a technology based organization in which innovation and
creativity is not certain to a point but it develops continuously from
time to time.
• It is very important for a technology based organization to change
with the new developments and innovation if they want to survive
in the economic world.
• Thus Nokia falls in dynamic business environment in which
innovation and creativity is a must and to evolve itself to compete
with other competitors. Otherwise, it will be fall behind and left redundant.
 What is change?

Two types of Change:

1. Planned Change:
It is deliberate and intended. The entity
makes the change to move from an existing situation.
It is also known as proactive change.
2. Unplanned Change:
It happens in response to developments, events, and new
circumstances that have arisen. The change is not intended in
advance. It is also known as reactive change.
Further about change

Incremental Change:
This type of change happens without the need for a major
reorganization or restructuring of the organization and its systems and
procedures. The entity should be able to adapt easily to the change.

Transformational Change:
It is a big change. A transformational change requires a major
reorganization or a restructuring of the organization and its systems
and procedures. The change has a big impact on the entity, and also on
the people working in it.
What Triggers Change?

External Triggers:
• Political
• Economic
• Social and Cultural
• Technological
• Ecological
• Legal
 What Triggers Change?
Internal Triggers:
• Change of senior management
• Acquisitions and Mergers
• Demergers and Divestments
• Reorganization, downsizing and rationalization
What Happened?

• Change in senior management:

CEO appointed didn’t take appropriate decisions to cope up with the
smartphone trend.

According to Wikipedia, CEO named as Steven Elop was mostly accused of

the downfall of the Nokia. During his tenure:
1. Nokia stock price dropped by 62%.
2. Mobile phone market share was halved
3. Smartphone market share dropped from 33% to 3%
4. Overall suffered cumulative loss of $4.9 Billion.
What happened?

Transformational Change:
• New technology was the adaptation of the Android and IOS
software and they failed to implement it.
• Nokia was the first one to get offer from Android but they turned
turn down this opportunity because they needed to make
restructuring for the implementation of the android software.

Look what it got to them!

Responses on NOKIA
• Frank Nuovo states:
“ Nokia became more of a maintainer, more of a iterator, whereas
innovation only comes in re-invention and Nokia waited too long to
make the next big bold move.
• In the book “ Operation Elop” the writer said ( Finnish Journalist ),
“ Ex-Microsoft executive was not a Trojan horse - but
someone else might have been able to save the struggling
business.”
Lesson learnt
“The advantage you had yesterday will be replaced
by trends of tomorrow.”
Thank you