The understanding of different parameters and elements of management can help immensely in business strategy formulation. It requires proper implementation of various planning techniques and assessment of organizational resources which can play an important role in formulating the concrete plan or strategies (Parvinen and et. al. 2011). In this report various trajectories and tools which can help in designing the future plans are explained in very articulate manner. For gaining the better understanding of various concepts the example of Nokia has been taken into special consideration. Further this research comprises of all the internal and external research tools along with the clear description of strategic planning techniques.
1.1:There are various mobile companies who have captured the big chunk of the market and have cornered out their competitors with the help of their product range and quality of the product. Nokia is leading provides mobile services and growing in different part of the world. The mission and vision statement of the company indicates the strong strategic position of the cited organization (Singer and et. al. 2008).
The mission of the company is to focus on their decision making process which has been gained huge priority after the huge plunge in company’s market share. This mission of the company allows them to make proper alignment and healthy relationship with their stakeholders which are another mission statement of the organization.
The vision statement includes the mindset of company to grow in the world market and transform the world by making communication easier. The reflection of company’s vision statement can be easily seen in their tagline i.e. Nokia, connecting people. The company is continuously growing with the rapid speed and attaining all their business objectives.
Other than mission and vision statement of the organizations objectives plays an important role in deciding the future of the organization. If company doesn’t have any objective then they won’t be able to formulate their strategies as they will be unaware with their business purpose (Oetinger, 2004). Thus in order to achieve the objective it is essential to rely on the core competencies or core values which can provide firm base to the organizational strategies. The core competencies of the cited organization is their culture and innovation which provides them distinct identity and allows them to create healthy interpersonal relationship and pleasant working environment.
1.2 Strategic planning is one of the major steps which must gained huge priority by the top management. They need to understand the expediency of strategic planning as it allows them to focus on their strength and weakness and accordingly they can set the benchmark in front of organization. But there are certain aspect which could be consider as major issues in the strategic planning (Forehand, 2010). Out of all the factors the inexperience and low knowledge level of higher authorities is key problem which is problematic situation for the organization. Here inexperience of the board of directors states that they must be aware with the upcoming challenges which can create obstacles for the company. Further they are required to understand the major and current trends in their industry it will help them to take better decision. Nokia has faced such problems as they avoid android (popular mobile platform) in using their cell phones and prefer windows over the android which could be consider as bad analytical skills of the top management and in results company face lots of loss in last financial years (Hagel and Brown, 2005). The competitors like Samsung get the privilege of this aspect and gain huge market share.
Another issue in strategic planning is the company’s financial position. Else it could be refer as the resource competency of the company. It is required for organization to have sufficient amount of resources whether it is financial resources or it is human resource. Nokia is financially sound and have huge capital base which is quite positive sign for the company but on the ground of human resources they need to focus more as the company is supposed to hire such personnel’s who can provide huge benefits to the company and can change the overall scenario of the organization (De Giovanni, 2012). Their support will create fruitful results and will help in well organized strategic planning. Thus inexperience and less resource could be considered as key issues in strategic planning.
1.3:Once company overcomes such challenges then they can surely formulate their strategic planning. There are various techniques which can facilitate better strategic planning and allows the organization to follow clear trajectories. The clear description of these planning techniques is given below:
PIMS: it is most appropriate and suitable tool to plan or formulate various strategies on the ground of improving the organizational performance. According to Lancaster and Massingham and Ashford PIMS model can provide the profit rate for any business and how the organization can improve their future operating results. It provide information about the core competency of business, situation of business environment, allocation of budget and resources and most importantly provide data related to the operating results of the company (A.O, Santos and Svensson, 2013). Thus it is clear that can show its expediency in facilitating the improved strategic planning.
BCG matrix: no other planning tool can match the significance of BCG matrix in the formulation of strategies. It helps in assessing their product line which could be most suitable for cited organization as they have various range of product. Brand management and portfolio analysis can be improved with the help of BCG matrix. It has been penned down by various management experts that the implementation of this model can generate transformational values for the company at very large scale (Chiware, 2010). This model represents various stages and accordingly the company can identify their own position and formulate the favorable strategy.
Hence these are major techniques which are significant with a view of improving the planning process of cited organization. Other than this the company can use market research and environmental scanning to get the better results.
2.1:Organizational or internal audit refer to the analysis of company’s position into the market and the view of customers regarding the company’s product. For the same purpose the most prevalent and popular techniques are explained in very articulate manner. SWOT analysis and value chain analysis has been taken into special consideration.
Hence on the basis of above analysis it is clear that the company is very strong in their global presence and most importantly have created it’s good brand image but still they need to focus on various aspects which is related to core competency of their business i.e. technological advancement and innovation.
Internal audit can’t held in proper without value chain analysis. It includes all the components which can provide clear description about the company’s core strength and help in establishing the alignment between various organizational activities. It is mainly divided into two categories first is primary activities and other are support activities. The cited organization has hold on various aspects of both the activities but still they lack on some areas like technology and human resource is not very good for Nokia. Other than this logistic department of company works in efficient manner but they have to put more emphasize on their product quality so it can support the marketing and sales activities (Fisher, 2004). Overall organization has good infrastructure and business environment but still they are required to make small changes which can prove as turnaround strategy for them.
2.2:Environmental audit is another source which provide firm base to the business strategy. Various element of external environment are needed to be assessed in well organized manner. For the same purpose the explanation of PESTLE analysis has been taken into special account.
Political environment: the political factors for company are favorable and they are able to put control on the political aspects. It involves the political restrictions and entry or exit barriers which is not any obstacles for the cited organization.
Economic environment: the earning and disposable income of the people is continuously increasing and pricing policy also matters a lot for company. The company is enjoying the tax benefits as well (Dressler, 2012).
Social environment: it is a major factor like the standard of living of society people is increasing and mobile phones have become status quo in society. It is one of the positive aspects for this industry and Nokia has to get the privilege of this aspect and can gain more profits.
Technological aspects: here in this factors company lacks as compare to their competitors and needed to develop their technological resources. They have to improve the product quality by introducing new product range (Hill, 2001).
Legal environment: it is related to the copy of patent or trademarks and fulfillment of all legal requirements etc.Till now the cited organization has no huge legal obligations and never faced such hardcore legal accusations.
Environmental factors: some years back company faced some problems in their batteries which was harmful for society and even for the nature but soon the company recover the challenges and get hold on this problem. Now the company is committed towards the production of eco friendly products. Thus above discussion exonerates that Nokia has favorable business condition but their strategies are needed to be formulated in such manner that it must be compatible with the business strategies (John, 2005).
2.3: Stakeholder analysis has greater advantages for giant organization like Nokia and other enormous companies. With the help of this the company can meet out the basic requirements of their stakeholders and engage them with the company for the longer period of time. The significance of stakeholder’s analysis is as follows:
Helps in maintaining the healthy relationship: as discussed above that stakeholders analysis can help in fulfilling the requirements of the customers. Thus it is clear that with the help of this the healthy relationship with the stakeholders can be built and can be maintain for the longer period of time (Li and Solis, 2013). They will feel satisfied with the services of company and their attitude towards the involvement of stakeholders will automatically improve. It is another factor which may help in maintaining the healthy relationship with stakeholders.
Influence: Another significant aspect of this analysis is that it enables the organization to identify the most influencing stakeholders which may affect the business operations. On the basis of this the company can prepare their strategies and decision making can also improve. Further it facilitates to adopt the better way to deal with stakeholders (London, Hart and Kacou, 2011).
Partnerships: it could be well understandable that stakeholder analysis make company familiar with the different stakeholders and their usage for the benefit of company’s operations and profits so it enables the organization to create partnership which must be benefitted for the both the parties. Nokia can also get the privilege of these elements and can improve their operational efficiency and win the trust of stakeholders (Kambil, 2008).
The major learning of this report is related to the business strategies and core competencies of Nokia. With the help of cited organization it becomes easy to recapitulate all the aspects like strategic planning techniques and strategy implementation techniques. Further this report is useful in enlightening the knowledge about the applicability of various management tools and models which are useful with a view of ensuring the academic as well as professional development. Overall this report explains the various concepts and strategies which could be useful for any organizations in long run.