MLA SAMPLE Decision Making and the Business Environment

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Decision Making and the Business Environment
Part One: PESTLE Analysis of Nokia
Nokia is a company based in Finland and which some years back was considered a
premier global producer of mobile phones. However, due to the changing marketing conditions
such as emergence of smartphones and increase in competition from new firms such as Samsung,
Nokia has not been able to aggressively adapt to the changes (Satpathy 1). Such challenges are
depicted by its depreciating financial capacity whereby between 2012 and 2015 its profit fell
from 34 to 16 billion dollars (Satpathy 1). An understanding of the business environment in
terms of political, economic, social, technological, legal and environmental conditions would
give a clear indication of Nokia’s potential future.
Although political factors are difficult to ascertain, unlike its Chines and American-based
competitors, Nokia comes from a small nation and hence lacks strong government supports. The
Finnish authorities have resisted from giving Nokia special favors thereby forcing it to enter into
an inconvenient partnership with Microsoft, which has so far fallen apart (Ropot 19). Also, in the
recent years, Europe has faced an economic downturn which has limited buying power for the
local market. As a result, Nokia lacks financial strength to engage in intense research and
development of new devices, unlike its competitors (Ropot 19). More so, the growing culture of
adopting smartphones has affected Nokia which still uses Microsoft Windows having limited
appeal to customers compared to Android (Ropot 20). Utilizing the Windows operating system is
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equally a technological challenge at a time when customers need open sourced systems such as
Android through which they can perform almost every function at ease. Just like any other
company, Nokia is faced with regulation restrictions regarding disposal of its products in an
environmentally friendly manner (Ropot 19). Considering the critical challenges facing Nokia, it
is necessary to alter their business model to survive in future.
Part Two: Organizational Sub-Systems
On the task environment, it has been a challenge for Nokia to grow in the midst of
emerging competitors. SOMO has been at the forefront in accusing Nokia of lack of commitment
towards its social responsibility policies (Ropot 22). For instance, in 2006 Nokia had been
accused of violating wage laws and exposing its workers to unsuitable working conditions.
According to the report by SOMO, in efforts to maintain their market share as competition
intensified, workers were forced to work overtime without compensation (Ropot 22). Such
claims have severe implications on the credibility of the company.
Nokia employs both flat and decentralized organization structure where the former is
often utilized when quick decisions need to be made such as on cellular wireless environment.
The corporate structure can be well understood through assessing the management team (Rao
99). The top management directly regulates most of the technological aspects such as
networking, multimedia and enterprise solution. Such changes in the structure, which contradicts
what happens in many other industries where there are numerous layers of management, were
deemed necessary due to the intense competition (Rao 99). There is a good relationship among
workers at different levels where each of them is entitled to contribute to decision-making
processes. Technology is a critical strength in efforts by Nokia to market its brands (Nokia).
Most of its brands are quite valuable compared to most of its competitors. One favorite technique
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of marketing which the company has successfully employed is blogging and usage of other
online channels such as YouTube (Nokia). This way, it has been able to target the young
generation across the globe. Nokia is equally friendly to people, a practice that is primarily
borrowed from the Finland social culture.
Part Three: Interview
To enrich our practical knowledge regarding the diverse environmental factors that can
affect managerial processes, we interrogated Kate who is an assistant technical advisor at Nokia
Company. The interview aimed at measuring the efficacy to which this organization approaches
critical decision aspects. This part will analyze the interview to increase our awareness on how
Nokia effects managerial decision-making processes.
Nokia always gives keen interest to the concerns of all stakeholders ranging from
customers to the government. Being located in Finland, a country with some of the best social
programs across the European Union, Nokia has been playing a critical role in enhancing such
programs whereby it follows a social-democratic model allowing a free competitive market.
Therefore, its compliance has challenged the government to progressively reduce corporate
taxes, enabling the company to maintain substantive savings. More so, Nokia is well-known for
recruiting qualified candidates and nurturing their talents to ensure they remain productive. It
values workers’ contributions in decision-making as depicted by its value-based approaches such
as performance rewards and internships to trap talents at an early stage of career progression.
Nokia has very clear objectives that strictly guide their operations. In line with its
primary mission of connecting the globe through the provision of accessible communication
devices, it aims at being a leader in customer and consumer relation, product leadership and
operational excellence. However, these functional objectives change consistently over time
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concerning changes in the marketing environment. This way, the company is able to maintain a
long-term and overall direction to its workers and as a result maximize resource utilization.
Nokia gives their clients priority; therefore, it carefully explores the feedback from
customers before making final decisions. The intention to operate based on customers’
preference is the main reason why most of the Nokia brands are highly qualified. Another way
through which Nokia ensures that decisions reached are not ill fated is to partner with
technocrats from other countries such as China and Dubai who bring in new ideas. Through
engaging people from different regions, Nokia clearly understand what customers need and why
they would prefer brands from its competitors thereby making strategic changes in their
operations.
After analyzing all suggestions originating from research, Nokia finally settles at the
most beneficial course of action. However, none of the raised ideas is ever ignored but it is first
put into practice to determine its effectiveness. For instance, in 2005, Nokia had decided to
employ an enterprise strategy of denying its competitors the market share but due to financial
limitations, the approach failed shortly. Despite the fact that the plan did not work, it taught the
company that enterprise solution is a significant challenge which they need work on as they look
into the future.
From the discussions above it can be stated that Nokia has a historical record of
attempting to re-invent itself severally. Unlike in the past when it enjoyed market monopoly due
to the limited number of mobile phone manufacturers, competition has grown over time. To
assure itself a bright future, Nokia has to restructure its strategies progressively to match the
ever-changing market needs.
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Works Cited
Nokia. “Our Structure.” Nokia.com, https://www.nokia.com/en_int/investors/corporate-
Governance/ours-structure. Accessed 11 November 2017.
Rao, Appa. Strategic Management and Business Policy. Excel Books India Publishers, 2009.
Ropot, Janin. Nokia’s Marketing Strategy-Analysis and Recommendation.
GRIN Verlag Publishers, 2013.
Satpathy, Sambit. “A brief History of Nokia: From a Paper Mill, to the World’s Biggest Mobile
Company to Being Acquired by Microsoft.” Bgr.in, 26 April 2014,
http://www.bgr.in/news/a-brief-history-of-nokia-from-a-paper-mill-to-the-worlds-
biggest-mobile-company-to-being-acquired-by-microsoft/. Accessed 11 November 2017.

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