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Nokia's Organizational Structure

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In February 2011, Nokia announced an internal reorganization and it was widely reported. Investors.nokia.com (2011) reported the press release about this change. Research this Nokia reorganization and answer the following Questions:

Question 1: How would you describe Nokia's new organizational structure?
Question 2: Does it appear that they are changing their structure altogether or just â??upgradingâ? what they have?
Question 3: How will these changes help them to execute their strategy?
Question 4: What current market trends do you feel have affected Nokia so it must reorganize?
Question 5: Based upon current trends, can you offer any additional changes to their structure that will assist Nokia in executing their strategic plan?

Please include references.

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Nokia's new organizational structure places the company in a forward moving competitive environment. As we know technology changes at a rapid pace and if Nokia wants to remain competitive they must continue to put fresh ideas into action. The new organizational structure is a strategic move that will help them reach increase profitability and remain relevant in the mass market mobile phone industry, and high-end smart phone.

Question 2: Does it appear that they are changing their structure altogether or just ...

Solution Summary

Review of organizational structure, strategy, and executing strategic plan.

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Organizational Structure and the Best Structure Based on Current Business Strategy

Smartphones have seen good growth judging from the high percentage of people using them. This means the smartphone provider industry is experiencing growth.

In 2011, Nokia announced a strategic partnership with Microsoft, a new strategy and a new internal organization. Reuters.com (2011) reported on the changes:

"With Nokia's planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come."

"As of April 1, Nokia will have a new company structure, which features two distinct business units: Smart Devices and Mobile Phones. They will focus on Nokia's key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing."

Sadly, that did not pan out.
How would you describe Nokia's organizational structure using THE FOLLOWING concepts "functional versus divisional versus conglomerate; centralized versus decentralized; mechanistic versus organic"?
Debate whether these changes help the company to execute its strategy going forward.
How does Nokia's structure compare to OTHER employer's structure?

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