How the Temporal and Pest Environment Interact To Influence Nokia (Research Paper Sample)

How the Temporal and Pest Environment Interact To Influence Nokia
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How the Temporal and Pest Environment Interact To Influence Nokia
Change cannot be avoided in the operations of an organization. Currently, majority of organizations in the world of business are experiencing fluctuating business environment. Therefore, it is difficult to avoid change. The main forces that make the changes both desirable and inevitable are political, economic, technological, legal, social, labor market and international environments. The case in this essay is Nokia, the Finnish Company which has experienced many problems due to changes in consumer tastes, stronger rivals and new technology. For organizations, there exist numerous external and internal factors which influence their operations. Therefore, every organization has responsibilities and goals related to one another in the environment which force organizations to change so as to survive in the changing environment.
The temporal elements of the Nokia industry have been their lack of an approach to establish the winning mobile environment which was in the past. Besides, there has been lack of investment by the companies in the coming generation, disruption of technologies and decrease of their focus on results, accountability and speed. In order to solve the case presented, it is prudent for Nokia to establish a strategic collaboration with Microsoft to regain lost popularity in the Smartphone market. Together, they need to aim at establishing a worldwide ecosystem which surpasses mobile phone existing currently. The major reason for decline in the Nokia competitive edge has been the outdated approach of technology, operational, leadership approach and structure.
The major PEST factors which are presented in this case are the political, economical, social, technological and legal factors. Political factors refer to activities that an organization can undertake and the methods used to accomplish the activities (Fernandez & Usero, 2009). Nokia has diversified its manufacturing facilities to Western and European countries. Due to this, it is has been hectic for the company to adhere to the regulations and rules set in these countries, and this has adversely effected their operation. Some of the issues they need to consider include: the minimum wage, the maximum weekly hours an employee can work and the Safety and Health regulations. This will help them avoid revolt or bad press from workers which will eventually build their destroyed reputation in both long and short term. The Company has not had a mutual relationship with the Finnish government; this had contributed to the failure of the product. Therefore, it is prudent for Nokia Company to have a mutual relationship with the Finnish government since political instability normally leads to the implementation of new rules and laws which might influence Nokia a lot.
Nokia has occupied a third of the Helsinki stock exchange. The organization has performed a crucial role to the economy of Finland. However, it has recently failed to recognize the changes in its market shares. This has forced the company to reduce the employment due to fear of further deterioration in the market share. Therefore, Nokia need to be aware of fluctuations in rates of exchange as they conduct their activities on a universal scale. As asserted by Hadjikhani and Ghauri (2007), drastic fluctuations in rates may have an overwhelming influence on the financial activities of the company in case the business do not undertake suitable steps to ensure the influences are minimum. Sequentially, the recession problem of the western economy has also had an influence on the rates of interest in banks, implying that the costs of lending money for business operations have increased and Nokia will have to be aware of the fluctuations in the rates of interest.
Given that Nokia has been operating mainly in the Western market, it has failed to recognize the social factors of the societies within its areas of operations. Culture is the major factor they should consider in case they want to regain their previous market leader in mobile phones. Normally, consumers are after the best looking and most innovative Smartphone as in the present culture where individuals are judged on how trendy they are based on their choice of mobile phones. The rising trend in Smartphone implies that when a customer buys new mobile phones, limited customers prefer the standard mobile phones to the Smartphone due to the social trend in the community. Consequently, Nokia must be aware of this and should start spending most of their efforts establishing Smartphone which can compete with their competitors’ products and to maintain the trends of their customers.
The technological developments in the industry are crucial to the prosperity of every Smartphone in the market. As the degree of competition is rapidly increasing, Nokia should ensure that their Smart phones are of the highest degree of innovation. With features such as camera, social networking, email and internet, Nokia must come up with other functions to assist in differentiating and outdoing their rivals. Previously, Nokia were the market leaders in invention and innovation in the phone industry. However, due to their inability to incorporate the technological advancements in their mobile phones, they have declined in their operations and also struggled to outdo their rivals. This is the major reason why they must understand their place in the industry and try to once again be the market leader through providing a new innovative capacity to have an edge over its rivals.
Intellectual property is prudent for any technological business and should be taken care of and protected to ensure the business is not copied by the rivals. Nokia conducts its activities in an industry where it is tiresome to have a commodity which is different from its rivals. Whenever they launch a commodity with an innovative capacity, it is imperative to protect the rights of that commodity through copyright, trademarks and patents to make sure that they are taken away by their rivals. As asserted by Meinrath and Lis (2002), not all rivals are threat of intellectual, however, Nokia should ensure that they are not victims of counterfeiters who allege to be providing original products of Nokia but are cheap products.
Multiple cause effect diagrams refer to a pragmatic and simple way of conducting root cause analysis of a problem in order to assist an organization understands and resolves all sorts of problems (Varzakas, 2011). In using the multiple cause diagrams to picture the interacting and multiple causes which bring pressure for change in an organization, there are various steps to be followed. To solve the problem of an organization, the individual should begin by defining the problem bothering the organization and put it down in writing. A problem can only be considered a problem in case it conflicts with the goal of the organization. Therefore, an individual should begin by defining the organizational goal and think on the effects of the aforementioned problem in terms of the organizational goal. This can be carried out by asking a chain of questions until the visible damage is identified.
Upon defining the problem, it is imperative to trace u...