Nokia is a communications and information technology company included in the For
ID: 329315 • Letter: N
Question
Nokia is a communications and information technology company included in the Fortune Global 500 ranking and has a rich heritage that can be traced back to the 19th century. During the 1990’s Nokia became the world's leading mobile phone manufacturer, but the company did not anticipate the significant change that smartphones would bring to the market at the turn of the century. When smartphones rose to popularity Nokia's market share was significantly reduced and the company entered into a crisis. Stephen Elop was appointed CEO of Nokia in 2010 and after a diagnosis of the company he addressed all the employees with an internal memo know as "Burning Platform.”
Read the article:
All Microsoft Employees Should Read Stephen Elop's 'Burning Platform' Memo Right Now. Paying particular attention to the memo portion of the article. Then respond to the following:
Which elements related with James’ Operations Management definition do you identify within the “Burning Platform” memorandum?
Which of the five steps within Hill’s framework for Operations Strategy formulation do you recognize?
What internal and external factors do you observe?
Comment on the CEO’s use of violent imagery and language (burning platform, death, war) as a motivational tool. What are the pros and cons? Do you feel motivated? Can this approach backfire?
Explanation / Answer
Answer:
Background:
Nokia is a communications and information technology company in Fortune Global 500 ranking and has a rich heritage During the 1990’s Nokia became the world's leading mobile phone manufacturer, but the company did not anticipate the significant change that smartphones would bring to the market at the turn of the century. When smartphones rose to popularity Nokia's market share was significantly reduced and the company entered into a crisis. Stephen Elop was appointed CEO of Nokia in 2010 and after a diagnosis of the company he addressed all the employees with an internal memo know as "Burning Platform.”
Elements related with James’ Operations Management definition we identified within the “Burning Platform” memorandum are as below
The five steps within Hill’s framework for Operations Strategy formulation we could recognized are as below
Internal factors could be the lack of technology expertise in the organization, lack of capability of the organization for smart phone, lack of market forecasting, lack of strategy formulation, lack of long term vision etc.
External factors could be the change in the consumer interest, pay capability of the consumers, competitors entry in the market, technology replacement/upgradation in the market. Multiple value products instead of single value products.
CEO’s use of violent imagery and language (burning platform, death, war) as a motivational tool: The approach of CEO was suitable because the CEO want to have high energy efforts from the employees towards the survival of the Nokia organization. He wants to motivate employees like the motivation in wars, burning environments, nature crises, etc because in such events the energy demonstration of employees are very high and they can deliver unbelievable actions in order to save.
Pros – Employees will be more energetic, highly motivated, willing to do something better for the organization, want to apply their best efforts for the success of the organization.
Cons- The environment will be negative at organization, employees will feel bad. The internal energy level is low. Some of the employee will try to leave the jobs and wants to explore other jobs.
Yes, we feel motivated, because this is one of the right approaches in such situations to have larger efforts from the organizational team to achieve their growth path and long term survival in the market.
No this approach cannot have backfire, because there are not ways which can have backfire from this strategy as it shows the real picture of the organization and the organization needs better support from organization to achieve their success path. This looks reasonable.
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