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 1.1. Describe the current organizational structure of Nokia, including its main business groups,  and explain how it aligns with the company's strategic emphasis  1.2. Explain the role in which technological disruptions and fierce competition, such as that from  Apple and Samsung, play in shaping Nokia's organizational structure

Understanding Business
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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

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


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

 

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