Reference no: EM133619658

Title: A Case Study on the Organizational Structure of Nokia Nokia, once a global telecommunications giant, has undergone significant transformations throughout its history. This case study provides an overview of Nokia's organizational structure, exploring its evolution and the challenges it has faced. Background: Founded in 1865 in Nokia, Finland, the company initially operated as a paper mill. Over the years, Nokia diversified its operations into various industries, including rubber, cables, and electronics. By the late 20th century, Nokia emerged as a dominant player in the mobile phone and telecommunications industry, known for its iconic devices and network infrastructure solutions. Organizational Structure Evolution: Nokia's organizational structure evolved in response to changing industry dynamics and strategic priorities. Key phases in its structural evolution include: 1. Early Years: Nokia's early structure was characterized by a diversified conglomerate, operating in multiple industries. It had a decentralized structure with divisions overseeing various businesses. 2. Mobile Phone Dominance: During the 1990s and early 2000s, Nokia focused primarily on its mobile phone business. The company adopted a matrix organizational structure, with separate divisions for mobile phones, network infrastructure, and other ventures. 3. Challenges and Transformation: Nokia faced challenges with the rise of smartphones and the dominance of competitors like Apple and Samsung. In response, it underwent a significant structural transformation. The company sold its mobile phone division to Microsoft in 2014 and refocused on networks, technologies, and licensing. 4. Recent Structure: In its current form, Nokia operates with a more streamlined structure. It comprises four main business groups: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. This structure aligns with Nokia's strategic emphasis on 5G, cloud, and digital services. Challenges and Adaptation: Nokia's journey has been marked by both successes and challenges. The company faced fierce competition, technological disruptions, and strategic shifts in the industry. Nokia's adaptability in restructuring its organization played a vital role in its continued relevance. Key Takeaways: • Nokia's organizational structure has evolved significantly, reflecting its shifting business priorities. • Adapting to industry changes, Nokia divested non-core businesses and refocused on its core strengths in networks and technologies. • The current organizational structure reflects Nokia's emphasis on 5G, cloud, and digital services. Conclusion: Nokia's organizational structure is a testament to its ability to pivot and adapt to the changing dynamics of the telecommunications industry. By shedding legacy businesses and refocusing on core competencies, Nokia seeks to maintain its position as a key player in the evolving world of network infrastructure and technology solutions.

Questions: 1. Describe the current organizational structure of Nokia, including its main business groups, and explain how it aligns with the company's strategic emphasis.

2. Explain the role in which technological disruptions and fierce competition, such as that from Apple and Samsung, play in shaping Nokia's organizational structure.