Business organization and environment of Nokia

October 1, 2017 Business

In this assignment, our group has decided to take Nokia, a phone fabrication company as our illustration and decided to compose the facet about the concern organisation and environment, organisation construction and engineering society of Nokia.

“ Connecting Peoples ” is the vision of Nokia. Now, Nokia phones is besides recognize as the fifth most value trade name in the universe. The history of Nokia does n’t get down with the production of phones alternatively it began with the production of paper in 1865 where the laminitis of Nokia Fredrik Idestam established a paper factory in south- western Finland. Then in 1992, Nokia decided to concentrate the company on telecommunication.

Harmonizing to, John Daniel ( 2008 ) Nokia is known for bring forthing the best phones with latest engineerings and now is the largest phones fabricating company comparison to the other rivals like Sony Ericsson, Samsung, LG and others. Nokia is a taking trade name in the nomadic phones universe. In twelvemonth 2005 Nokia sold one million millions of nomadic phone and launches it ‘s most popular N Series phones, and now, Nokia have 35 % portions in the market. Nokia phones offer phones that are equipped with different design and maps to fulfill different clients ‘ demands.

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Business Organization and Environment

As Nokia is the universe broad mobile phone company. By runing such a immense company, they have their motto that is “ Connecting Peoples ” , and have three purposes ; Speed of Anticipation and Fulfilling Evolving Customers and Market Needs, Strong Customers Recognition and Continuing A Solid and Positive /Relationship With It ‘s Stakeholders. What are the Business Organization and Environment of Nokia? Environment are divided into two chief classs, Internal and External Environment.

Internal environment is besides known as the governable environment. Internal environment composed of the elements within the organisation, including current employees, direction and particularly corporate civilizations, which defines employee behaviour. Although some elements affect the organisation as a whole, others affect merely the director. Here is some illustrations of Internal Environment of The Nokia company,

Employees are of import to the company because they are responsible for the operating nucleuss and day-to-day plants. Nokia company should actuate them and understand their behavior and needs decently to as to find the ways to actuate them. If their demands have being fulfilled, so they will be able to bring forth good work and consequences to the Company. Employee should besides be provided preparation which is related to their work to guarantee they are able to accomplish good public presentation in the Company. Because of their good public presentation, the production end product achieved will however, aid to hike the gross revenues of Nokia mobile phone. Therefore, can besides accomplish the Income of the company for farther growing.

With more Income generated, the Nokia Company can utilize the money to upgrade the bing machine and employed more interior decorators and applied scientists to bring forth more attractive plus sophisticated and high quality phone. This can forestall the client to take the others mobile phone company because of limited pick and bad qualities of the phone. Other than that, with more net incomes, Nokia Company besides can direct their employees for farther preparation and derive more experience in fabrication and planing the nomadic phone.

By running such a large Company, Nokia needs to be good equipped so as to bring forth better quality of the nomadic phone. If Nokia company can bring forth high quality mobile phone, the clients will hold more assurance in choosing the nomadic phone that is manufactured by Nokia Company. Nokia can bring forth more nomadic phones utilizing the latest modern equipment comparison with the disused theoretical account. This can forestall the delaying of the nomadic phone to the Intermediaries.

External environment is besides known as Uncontrollable Environment. An outside factors that may impact a organisation make up the external environment. The external environment is divided into two parts, that is straight synergistic and indirectly synergistic.

First is the client. With more clients, assurance of clients to the Nokia company had increased enormously. With the increasing in the assurance from clients, the gross revenues of the Nokia phone will besides hike because of the repute of the Nokia concern is being good and nokia phone will be the first pick when they have make determination to buy nomadic phone. With the good repute of the Nokia company, Nokia company can be expanded farther and will promote more investors to convey in more financess to the Company.

Second is the provider. With a good and responsible provider, the nokia maker can fabricate the nomadic phone on clip and keep the quality of nomadic phone. This will forestall the nokia company to bear the loss of the client for the late supply of the stock. A good provider will supply quality stuff to Nokia company which can keep the good repute of the nokia company and keep the trueness of the client. When the provider provide quality stuff, the nokia company should non bear a immense sum of the compensation of the bad quality of nomadic phone.

Last is the Competitors.When the rivals appear among the nomadic phone companys, it will promote the nokia company to keep the good quality of their nomadic phone. Nokia company will supply more preparation for the employee to guarantee their cognition in fabricating nomadic phone is good plenty. At the same clip, nokia company will use a professional supervisor to supervise the procedure of fabricating nomadic phone to guarantee the production of nomadic phone is on clip. On the other manus, nokia company will promote advanced and originative among the employee in the company to guarantee their merchandise is ever be the client ‘s pick.

Organization Structure

Main ground that affected Nokia organisation construction is rivals. Even Nokia is still the World ‘s figure one in maker of nomadic devices but Nokia confronting stiff competition from Apple ( AAPL ) and Research in Motion ( RIM ) in smart phone country. Nokia ‘s market portion has drop from 41 per centum to 35 per centum in twelvemonth 2009 in smart phone market. “ Yes, we have lost land in the smart phone infinite over the past 18 months, but the diminution has stopped and stabilized in the 2nd and 3rd quarters of 2009 ” says Nokia ‘s executive vice-president and caput of the nomadic phones entity Rick Simonson to India ‘s Economic Times in January of 2010.Nokia has reshuffles its organisation construction with an purpose to rush up the merchandise invention and package to combined with its content consistent with the aims of the execution, applications and services into nomadic computing machine, smart phone and nomadic phone.

Nokia organisation construction at twelvemonth 2007 is leads by Group Executive Board and follow by Servicess and Software, Devices, Markets, Nokia ‘s Siemens Networks and NAVTEQ. After that is, Corporate Development Office and Corporate Functions. While the new organisation construction is leads by Group Executive Board and follow by five units, which are Mobile Solution, Mobile Phones, Markets, NAVTEQ and Nokia Siemens Networks, continue with Cooperate Functions.

Nokia is a level networked organisation construction with certain sum of bureaucratism. Both organisations are level construction because both organisation constructions have broad span of control and short line of authorization.Wide span of control means that one directors can pull off a batch subordinates. For illustration, the caput for Markets section for both organisation constructions can command the full worker that work in the Markets section and he merely describe straight to the Group Executive Board. Nokia ‘s subsidiaries are given freedom to do determination because Nokia create freedom for worker ‘s creativeness with minimum regulations and ordinances. Nokia besides have a certain sum of bureaucratism. For illustration, workers are divided into functional sections or known as departmentalization. The old organisation construction is divided by map. Each section has its ain specializer, such as Device section merely responsible for phone, while services and package section merely develop package and better services. That besides means the work specialisation is higher. But the new organisation is divided by type of merchandise. Every unit has responsible to research new merchandise and its services with package. For illustration, nomadic solution will concentrate on smart phone besides known every bit high terminal phone, while Mobile Phones will concentrate on low-cost phone, besides known as low terminal phone. That means the work specialisation is lower.

Nokia organisation construction will maintain altering depends on their external environment but the new organisation construction must be level construction because Nokia need a fast determination devising and faster merchandise invention in order to maintain growing in the market.

Technological Society

Technological society defines:

When the Nokia ‘s engineering is more progress, the effects of that engineering on society addition, so we must acknowledge positive and negative impacts and seek to developed positive effects and cut down the negative 1.

Nokia ‘s companies are working with organisations that have program for protect the environment and society ; Nokia ‘s Company ‘s end is be a prima company in environmental public presentation. They believe that, by accomplishing environmental leading they can better their technological portion.

They create nomadic devices, accoutrements, package and services that cut down the bad effects of their merchandise on environment and society. The engineerings and inventions that Nokia ‘s companies are utilizing these yearss. ( Figure 1 )

They are pull offing their ingestion of electricity by produce new advanced nomadic devices, in new nomadic devises we can acquire more things done utilizing less energy. It means they are doing nomadic devices that have incorporate characteristics, like: Camera, GPS, media participant, Alarm, Windows, Game, cyberspace and etc. So we do n’t necessitate use tonss of electricity for each of them. ( Figure 2 )

Besides that, they are looking for new beginning of energy, they have planned to utilize solar energy by utilizing solar cell on their nomadic devices. Furthermore each of them have large impact on society for illustration, with GPS engineering we can take the best manner and the nearest one without traffic jam so we can salvage clip, crude oil and etc.

Nokia is a alone nomadic devises company in recycle their merchandises because they use stuffs that can be recycle to do new merchandises or bring forth energy, so they help protect environment ( figure 3 ) .

Nokia nomadic devices have advanced voice ( figure 4 ) , high velocity of cyberspace, broad scope of security and etc ( figure 5 ) , so you can link people with concern optimized devices. In add-on, the R & A ; D ( research and developed ) section of Nokia designed new coevals of leather screens that can protect user ‘s organic structure of harmful beams of nomadic devices ( figure 6 ) .

In Nokia ‘s company, sociologist believes that every coin has 2 sides. It means if Bluetooth has some good effects on society surely it has some bad effects and they want to acknowledge the negative effects and seek to cut down them so they have some research on destructive impacts of Bluetooth on society and they found the destructive impact of Bluetooth is truly unsafe for new coevals ‘s society. They want make civilization appropriate by good propaganda of Nokia ‘s devices and they are seeking to happen some other ways to cut down the bad effects of Bluetooth on society.

The sentiment of client is really of import for them because they think client ‘s thoughts is the ain thing that can assist them for better their technological portion so they make new package for covering their clients and enabling developer and publishing house invention.


In decision, all the three facets that we have discussed in this assignment are really of import for Nokia Company. The most of import elements in the internal environment are the capital. The capital is the chief beginning that keeps the company tally and without capital, the company could non use people, acquire new engineerings and others. The most of import elements in the external environment is the rivals, although rivals are bad for the company, but it besides help in a good manner, by viing with each others, more new and better merchandises will be produce and this could maintain the company productive.

Nokia organisation construction alteration harmonizing the internal and external environment. They change their construction so that they could get the better of their job and do the company more productive and efficient in the hereafter. Nokia produce phone, hence a technological society is really of import to them. Nokia ever produce new merchandises with new engineerings to maintain its clients. By utilizing new engineerings it could pull more clients.


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