A Critical Analysis of Nokia Corporation Current Problem
Introduction
Nokia Phones originated from a small town in Southwestern,Finland and began from a small paper mill on the banks of the Nokianvirta river,set up by Fredrik Idestam in 1865.It was 1968 that the Nokia Corporation started in the Mobile Nokia Phone business after spending more than a century operating five different business field as stated in the time line below (Barr G, 2009) :
Paper Mill, 1865
Finnish Rubber, 1898
Cable
Electronics
Forestry
Power Generation
1912-1967
By year 2008, Nokia has become the world’s biggest mobile handset provider where the production units division separated into 9 countries; Brazil, China, Finland, Great Britain, Hungary, India, Mexico, Romania, and South Korea (Nokia, 2011)
However starting in third quarter of year 2009 Nokia Corporation facing a small declined in worldwide smart phone share which approximately 5% gap from second quarter of year 2009 (Foresman C, 2011).It is worsen up when both Apple and Blackberry Company introduced a new technology platform of smart phone and resulting Nokia market share has drawn drastically 2% at the beginning of year 2011 (The Nielsen Company, 2011).
Therefore this report will examine on how Nokia Corporation effectiveness is evaluated in their organisation by applying Balance Scorecard approaches. At the same time, a critical analysis of Nokia Corporation current problem will be discuss in detail in certain areas; 1. Matrix Structure 2. Growth of bureaucracy 3. Atypical division management
From there, suggested solutions will be given in a way to improve Nokia Corporation organisational effectiveness.
Organisational Effectiveness
The concept or organizational effectiveness was an important innovation in business management. Instead of defining corporate success by a few short term measures such as sales or profit, it fostered a holistic long-term perspective. Organisational effectiveness is the degree to which an organisation attains short- and long-term
Nokia Phones originated from a small town in Southwestern,Finland and began from a small paper mill on the banks of the Nokianvirta river,set up by Fredrik Idestam in 1865.It was 1968 that the Nokia Corporation started in the Mobile Nokia Phone business after spending more than a century operating five different business field as stated in the time line below (Barr G, 2009) :
Paper Mill, 1865
Finnish Rubber, 1898
Cable
Electronics
Forestry
Power Generation
1912-1967
By year 2008, Nokia has become the world’s biggest mobile handset provider where the production units division separated into 9 countries; Brazil, China, Finland, Great Britain, Hungary, India, Mexico, Romania, and South Korea (Nokia, 2011)
However starting in third quarter of year 2009 Nokia Corporation facing a small declined in worldwide smart phone share which approximately 5% gap from second quarter of year 2009 (Foresman C, 2011).It is worsen up when both Apple and Blackberry Company introduced a new technology platform of smart phone and resulting Nokia market share has drawn drastically 2% at the beginning of year 2011 (The Nielsen Company, 2011).
Therefore this report will examine on how Nokia Corporation effectiveness is evaluated in their organisation by applying Balance Scorecard approaches. At the same time, a critical analysis of Nokia Corporation current problem will be discuss in detail in certain areas; 1. Matrix Structure 2. Growth of bureaucracy 3. Atypical division management
From there, suggested solutions will be given in a way to improve Nokia Corporation organisational effectiveness.
Organisational Effectiveness
The concept or organizational effectiveness was an important innovation in business management. Instead of defining corporate success by a few short term measures such as sales or profit, it fostered a holistic long-term perspective. Organisational effectiveness is the degree to which an organisation attains short- and long-term