Nokia has been a leading seller of mobile phones in Europe and across the globe. The new Chief Executive Officer (CEO) decided to present new changes in order to make Nokia a leading competitor in the industry.
According to Stephen Elop, Nokia Corporation had become insensitive about the changing expectations of its customers. The employees at the company had weakened Nokia’s core competencies. The company was no longer promoting its Research and Development (R&D) practices.
The internal conflicts and competing agendas also affected the company’s business strategy. These job cuts would encourage innovative ideas and software development at the company. The practice would make Nokia a leading producer of smartphones.
This decision was necessary towards improving Nokia’s responsiveness and agility. The leader would manage the company’s web services and software development practices. The new leader wanted to reduce the expenses incurred by the giant corporation.
The approach will make Nokia an innovative and competitive firm. The leader wanted the company to recover its glory in the global market. This explains why Stephen Elop was ready to eliminate 1800 jobs even though Nokia was performing well.
Nokia decided to hire an American as the company’s Chief Executive Officer (CEO). There are several reasons to support this decision. To begin with, Nokia was the chief marketer of mobile phones in North America for very many years. New players had overtaken Nokia by 2009.
Some of these marketers included Motorola, Research in Motion (RIM), LG, Apple, and Samsung. This situation explains why Nokia decided to hire an America. The new CEO would present the best incentives about the changing expectations of the American consumer.
The company’s decision to produce GSM phones also affected its performance in the United States. The new leader from American would advise the company to produce CMDA mobile phones. These phones are widely used in the United States.
Nokia had failed to respond to the shifting expectations and tastes of its American customers. The new CEO would make it easier for the company to respond to these tastes and preferences. The CEO would consider such aspects during the production of Nokia’s smartphones.
The second reason was that Microsoft is a successful Silicon Valley giant. Stephen Elop would offer the best leadership styles and recruit competent web designers for Nokia.
The decision would make Nokia the leading producer and marketer of smartphones in the United States. This explains why the company’s decision to hire Stephen Elop was one of the best.
This case study explains why Nokia should move with haste to revitalize its performance in the United States. The new CEO should begin by using a transformational leadership style. The leadership approach will motivate every employee in order to achieve the targeted organisational goals.
Stephen Elop should also encourage his employees to work as teams. The CEO should encourage his employees to be innovative. The leader should support Nokia’s research and development (R&D) team.
Stephen Elop should encourage his employees to interact with one another during decision-making and problem-solving practices. The manager can change Nokia’s organisational culture by hiring employees from different socio-cultural backgrounds.
These changes will support the company’s core competencies. These organisational changes will help Nokia produce the best smartphones that can address the changing needs and expectations of different customers in the United States.