The memorandum written by Nokia's CEO Stephen Elop was meant to serve as a wake-up call
for all the staff and management. However, the core message was Nokia needs a new operational
strategy with new corporate objectives. Operational strategy deals with the long-term
capabilities of an operation and its effect on the overall strategy.
Based on James' operation management definition the processes that produce and deliver goods
and services could be managed in various ways. Depending on how it's managed the company
could be effective in creating products that meet customer requirements and are competitive. On
the other hand, it could lead to products that are not innovative enough, don't attract customers,
and lead the company to lose market share. Unfortunately, Nokia is in the second group.
We can see the steps described in Hill's framework for operational strategy formulation in the
CEO's memo. The first step is describing corporate objectives for Nokia, it's to regain their
position as market leaders. Next, the CEO goes into the critical evaluation of how Nokia's
products fare against their competitors. These will be the basis for determining performance
objectives. The internal factors are the operational strategy, the attitudes of staff and
management, lack of innovation and collaboration. The external factors are the competitors and
the customers' new level of demand that is linked to a new awareness created by the competitors
especially Apple.
The CEO's way of describing the current situation in Nokia was fitting in my opinion. The
magnitude of the problem needs to be understood before addressing the issue. However, the CEO
showed not only the seriousness of the situation but also the cause and a possible strategy to get
out of this mess. This memo was motivational and if properly understood could bring the desired
change.
References
Edwards, J. (2013). All Microsoft employees should read Stephen Elop's 'Burning Platform'
memo right now. Business Insider.
Retrieved from: http://www.businessinsider.com/stephen-elops-burning-platform-memo-2013-9
James, T. (2011). Operations Strategy. Bookboon
for all the staff and management. However, the core message was Nokia needs a new operational
strategy with new corporate objectives. Operational strategy deals with the long-term
capabilities of an operation and its effect on the overall strategy.
Based on James' operation management definition the processes that produce and deliver goods
and services could be managed in various ways. Depending on how it's managed the company
could be effective in creating products that meet customer requirements and are competitive. On
the other hand, it could lead to products that are not innovative enough, don't attract customers,
and lead the company to lose market share. Unfortunately, Nokia is in the second group.
We can see the steps described in Hill's framework for operational strategy formulation in the
CEO's memo. The first step is describing corporate objectives for Nokia, it's to regain their
position as market leaders. Next, the CEO goes into the critical evaluation of how Nokia's
products fare against their competitors. These will be the basis for determining performance
objectives. The internal factors are the operational strategy, the attitudes of staff and
management, lack of innovation and collaboration. The external factors are the competitors and
the customers' new level of demand that is linked to a new awareness created by the competitors
especially Apple.
The CEO's way of describing the current situation in Nokia was fitting in my opinion. The
magnitude of the problem needs to be understood before addressing the issue. However, the CEO
showed not only the seriousness of the situation but also the cause and a possible strategy to get
out of this mess. This memo was motivational and if properly understood could bring the desired
change.
References
Edwards, J. (2013). All Microsoft employees should read Stephen Elop's 'Burning Platform'
memo right now. Business Insider.
Retrieved from: http://www.businessinsider.com/stephen-elops-burning-platform-memo-2013-9
James, T. (2011). Operations Strategy. Bookboon
