Upper Echelons of Nokia Essay

1142 Words 5 Pages
Business Memo to The C.E.O of Nokia

Date: November 25, 2015
To: Rajeev Suri, C.E.O
From: Shreya Chugh, UOM
Subject: Upper Echelons of Nokia

Nokia is one of the leading companies in the sector of advanced technologies and mobile network with an advantage of 100 years of experience and expertise in telecommunications from 2G to 3G to 4G and now the emerging 5G. It has always been and intends to remain at the cutting edge of mobile technology. (Anon, 2015) Its market share was 48.7 percent in the third quarter of 2007. By the third quarter of 2012 the company's market share had slipped to just 3.5 percent (Statista, 2015). Nokia has shown great improvement ever since this decline. Coming in 3rd place, scraping what market share has
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Interestingly, Elop was a non-Finnish and always enjoyed working and growing platform based software companies like Macromedia, Adobe, Juniper Networks and Microsoft, thus making Nokia as his first Telecom or cellular engagement.

A born Canadian and experienced with USA based work-culture, Elop faced a lot of challenges which resulted in interpersonal conflicts and hence, were highlighted issues like his infamous memos to the employees or the sudden announcements of lay-offs due to lack of communication. While he enjoyed the great level of managerial discretion, there were a lot of conflicts on decisions like moving to solely windows platform or subsequent tie-ups with Microsoft (Singhal, 2015). The power distribution seemed mismanaged during the first-half or current decade and despite extensive friction, the acquisition of Nokia by Microsoft finally happened. Most of the decision making during this entire period was majorly guided and influenced by Elop which has been critically cited by a variety of business thinkers (Anon, 2015).

The current situation if compared to the previous phase, will give us a fair view of how the organization’s performance can be forecasted keeping in mind the upper echelons theory. Samih, Ramzi and Timo are the top executives and also hold an interesting mix of experience which includes

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