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Overview
Having recalled the facts and ideas it is necessary to show one’s understanding by interpreting the meaning of prior learning and identify effects or consequences arising from that interpretation.
Nokia was the leading mobile phone provider. This case highlights how communication underpins professional customer service management and how poorly the company utilised competent corporate communication strategies. This case is linked to unit B2 dealing with communication, which should ideally be addressed before dealing with this case.
C.2. Reading (Look at this before doing the tasks). The Tasks and Answer Key/Pointers/Sources are in Theme H in the drop-down menu at the top of this page.
Think About:
“The reason why Nokia has been built in Finland is simply because Finland was very far behind in terms of infrastructure, so it was relatively easy to implement new technology” – Maurice Levy
“We didn’t do anything wrong, but somehow we lost” – Nokia CEO Stephen Elop when Microsoft acquired Nokia (under his leadership, the stock price dropped 62%, the mobile phone market share was cut in half and the company incurred billions in losses).
Vuori and Huy (2016) identified the key drivers behind Nokia’s demise:
“Together, organizational attention structures and historical factors generated various types of shared fear among top and middle managers. Top managers were afraid of external competitors and shareholders, while middle managers were mainly afraid of internal groups, including superiors and peers. Top managers’ externally focused fear led them to exert pressure on middle managers without fully revealing the severity of the external threats and to interpret middle managers’ communications in biased ways. Middle managers’ internally focused fear reduced their tendency to share negative information with top managers, leading top managers to develop an overly optimistic perception of their organization’s technological capabilities and neglect long-term investments in developing innovation.”
By 2013, Nokia had been acquired by Microsoft. Earlier in the year there had been allegations of Tax evasion by the company in India.
Thousands lost their jobs in the subsequent upheaval of the company. Yle (25.7.2016) was reporting wage discrimination against foreign employees in the company who were increasingly utilised in operations.
Materials Updates/News:
Periodically, materials will be updated, or there may be news items worthy of attention related to this Unit. They will be notified here. If you come across any news/resources, e.g. journal/newspaper articles relevant to the content of this website, please let me know. I can be contacted via the email address below.
The Guardian. (15.1.2025). Conflict Minerals.
Peltonen, T. (2019). Case Study 4: The Collapse of Nokia’s Mobile Phone Business. In T. Peltonen. (Ed.).Towards Wise Management: Wisdom and Stupidity in Strategic Decision-Making (p.163-188). SpringerLink.
Verpoorten, M., Stoop, N., and Vand Der Windt, P. (29.7.2019). The way that minerals are mined affects conflict in eastern Congo. The Conversation.
Smith, J., and Mantz, J. (2006). Do Cellular Phones Dream of Civil War? The Mystification of Production and the Consequences of Technology Fetishism in the Eastern Congo. In M. Kirsch., and J. Nash. (Ed.). Inclusion and Exclusion in the Global Arena (p.71-93). New York: Routledge.
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