2.1. Evaluation of the existing climate of organization (Nokia)
In the current essay I would like to provide further research into current practices of Nokia Corporation and outline recent changes that may impact on the corporate culture. As a matter of fact, today Nokia are faced with many problems. In particular, Nokia’s profit from sales of smartphones has fallen in hundreds of times. For example in 2009, the company’s profit in the first quarter amounted to just 4 million euros, which is 300 times less than in 2008. Moreover, such as competitors like Apple and HTC significantly increased their market shares and, as a result, cut Nokia’s market share. This is mainly due to the failures that allowed the top management of the company, but to overcome this crisis – the company needs restructure and change of internal corporate culture.
To overcome the current crisis, Nokia has already made a few steps. For example, Nokia introduced its new strategic direction, including changes in leadership and organizational structure. For cell phones Nokia has introduced an updated strategy, which aims to maximize innovation to connect the next billion of people to the Internet and their networking applications. Also, the strategy is accompanied by substantial rearrangements in the team leaders Nokia, changes in organizational structure and approach. The composition of the leadership team includes following managers: Stephen Elop, Esko Aho, Juha Akhras, Jerry DeVard, Colin Giles, Rich Green, Jo Harlow, Timo Ihamuotila, Mary McDowell, Kai Oistamo, Tero Oyanpera, Louise Pentlend and Niklas Savander. The main task of this team will accelerate decision-making process and reducing timetable for the withdrawal of products and innovations to market.
It can be said that from April 1, 2011 Nokia’s company structure will consist of two separate units: Smart Devices and Mobile Phones. Obviously, each of them will carry its own profit and loss account and take full responsibility for the whole process of interaction with the consumer, including the development, management and marketing of products. Nokia has today announced its plans to change the strategy unit to develop services, which is in closer cooperation with third parties and narrow range of initiatives in which the company operates. Extremely important is the fact that all above mentioned steps, according to Nokia, should give more opportunities for third-party companies to create better and simpler in terms of interaction with the user’s own services. Under the changes announced, all mobile games are now available in on-line service of the company – Ovi Store, in addition to existing marketing channels.