Summary
Apple is a technology multinational corporation headquartered in California that designs, develops, and sells consumer electronics all over the world. Nokia is a company related to communication and information technology and headquartered in Finland. Both companies are leaders that managed complexity, ambiguity, and change within their organizations but results achieved prove to be beneficial for Apple . Nokia leadership lacks in efficiently applying their relevant strategies that could provide expected outcomes. There are many factors including a collection of information, quick response, analyzing risks, and preparation of alternative strategies that resulted in the success of Apple. Nokia failed to obtain its desired results due to the lack of ability to align its strategies, keep calm in the challenging scenario, and devise alternative strategies. Apple and Nokia are related to the technology industry so they need to adopt a rapid change in technology and prepare marketing and pricing strategies to sustain in the global market. Apple always focuses on preparing for future and commits to providing high quality and standard product to its customers. However, Nokia tries to satisfy its existing customers with innovative products and designs. The strategies that Apple adopted prove to be successful for the organization than Nokia that was unable to obtain its desired objectives .
Underlying Factors
Apple
Apple adopted effective strategies to strengthen its position in the market. It has well managed its operational activities to move forward smoothly. The factors that allow it to attain expected results are discussed below.
Complexity
Apple is efficient in controlling and managing complexity in the business operations. It has effective management that not only focuses on becoming the leader of the industry but also tries to retain the company’s position in the global market. The continuous efforts of leaders allow it to manage uncertainty and complexity of business across the globe. Apple always faces challenges and prepares strategies to manage its operational activities within the context of those complications (Collins, 2016). If a company intends to improve its products and services, it has to improve its HRM strategies to reduce the chances of complexity in managing the business.
Ambiguity
Apple did not introduce iPad only to capture the market, but it was a pre-action to counter any effect that could cause due to competitive products in the market. Apple was aware of the fact that its main competitor Samsung may introduce a differentiated product to compete with its existing products. Apple always prepares to counter the unusual effects of market and implement product diversification rapidly (Bach & Edwards, 2013). If a product is attracting customers, its competitors would also try to introduce a differentiated product in the same market. Therefore, the company should be ready to respond to this ambiguity.
Change
Apple believes in practicing change management to remain as the leader of the industry. It focuses on the new product but prepares for introducing the change in management of the operations of the company. The change management strategy attracts stakeholders of business to strengthen their relationship with Apple (DanielLock, 2015). If a company is well prepared for the change in the market, then it will quickly respond to the unexpected conditions of the market.
Nokia
Nokia failed to manage change, complexity, and ambiguity that occur in the ordinary course of a business. There are factors that resulted in the failure of management categorized below.
Complexity
Nokia leadership did not pay attention to all its operational activities at a given time. The Head of Professional Services Marketing faced difficulties in aligning strategies when the improvement was required in different areas of marketing. The leadership got confused and failed to decide which strategy is suitable for the company (Nokia, 2014). If a company needs to reduce its cost to gain competitive advantage, then it has to ensure that it would not affect the quality of the product.
Ambiguity
Nokia did not consider that new products (iPhone) as a threat that would disrupt its business. There was no ambiguity strategy, and the leaders did not pay attention to the competitor’s strategy. In fact, the leadership of the company failed to prepare a strategy for launching its new products that could compete with others. The irregularity and ignorance of product development and introduction in the market adversely affected the plan of Nokia (Anon., 2016). If a company is planning to introduce a new product, then its leadership should keep an eye on the competitor’s upcoming products to take decisions for its product launch.
Change
Nokia was inefficient when it made decision to introduce its new product. As it decided what to launch, Apple products already captured the market. Nokia’s leaders consumed much time in introducing a new innovative product that could compete with the existing substitutes in the market (DaniealLock Consulting., 2015). If a company takes a time to bring a change, it would not be able to derive expected results from their strategy. Time management is also essential in bringing change.
Comparison of Apple and Nokia
There are several differences between the two companies related to their leadership approaches, organizational values, and problem-solving and ethical practices. These changes are mentioned in the table below.
The above table indicates that Apple adopted thr transformational leadership style that enables followers to bring a change and develop leadership qualities. In contrast, Nokia adopted the participative leadership style that appreciates employees to give their input on company’s decision. The organizational values of Apple include standards and quality as compared to Nokia that always learn from others. The problem-solving practice of Apple is efficient that uses marketing campaigns as compared to Nokia that believes in operational transformation. Nokia that build alliance with NGO’s properly follows ethics while Apple provides fair employment and effective working conditions.
Literature Evidence
Northouse (2010) identifies that a leader should be dynamic and steadfast in preparing effective strategies after analyzing all the factors including challenges and opportunities in that industry. Apple always prepares its strategy for the next task while focusing on the existing task. Nokia specifically relied on the execution of the current task and failed to take immediate actions on the complexity. Stewart (2010) provides a study how leadership styles of previous leaders are helpful in developing the skills and abilities of today’s leaders. Apple leadership focuses on developing employees’ skills and abilities by focusing on a leadership style that proved to be successful for the long-term stability of business. Nokia lacks in this area and depends upon the suggestion and opinions of its employees.
Schein (2010) states that a leader should analyze culture and other complexities to effectively manage the overall operations of business. Apple leadership keep an eye on the effects of a strategic plan on different areas of business and ensures that it will prove to be beneficial for all the stakeholders. However, Nokia limits its strategies to increase its sales and make profits that result in the obstacles for business success. Polelle (2008) explains that leadership should be ready for adopting a change prevailing in the market and try to reduce the risk of failure that attributes to that implemented strategy. Apple leadership analyzes the risk that may come forward in future due to the rapid change in technology and substituted products availability in the same market. Nokia only focus on introducing the differentiated product after its competitors captures the overall market.
Discussion on the Reason for Apple Success and Nokia Failure
Difference in Leadership Styles
Apple’s and Nokia’s leadership styles are totally different. Apple adopts a transformational style in which employees learn from the leader and try to develop their skills and abilities. The leaders should have additional knowledge that can guide the followers to adopt them. Sims & Quatro (2005) identifies that a leader adopts well-managed skills to counter the critical situations within the internal and external environment of business. In this scenario, a leader should ensure that the followers adopt changes made by the leaders. On the other hand, Nokia has a different leadership style that is participative in which employees are allowed to provide their opinions in the decision-making. The strategy is useful but a leader should practice and develop his personal skills rather than approaching others to help him. The participative leadership is not effective in gaining competitive advantage and that is why Nokia suffered a great financial loss and instability of business .
Difference in Organization Values
Apple values are high quality and standard that relates to the introducing new technology to the existing product and launches a different product in the market. Apple adopts a diversification strategy to introduce new product in the market. It has variety of product range with high brand recognition in the market. Its struggles from computers to the iPhone allowed it to retain strong position in the market. Apple management always focuses on its values and introduce new innovative product that seeks to have high demand in near future. The strategies are aligned with the values to ensure stability and sustainability of business. However, Nokia is much concerned with its value that is high customer satisfaction and continuous learning. All the operations of business are done in the context of these values that are considered important for business .
Recommendations
Well-informed Approach
A leader of an organization should be well informed regarding the external and internal factors. These factors help a leader in preparing strategies for doing business in a highly competitive environment. However, it is not limited to the strategy. In fact, a leader should have knowledge of advanced technologies prevailing in the market or society. The adoption of new technology is the key to success in IT-related organizations.
Quick Response
An effective and efficient leader should possess the quality of quick response. If a leader delays in implementing the strategy, that would not provide expected results. The organization structure should support the leader to immediate react on the policies or strategies prepared for increasing the performance of the organization. A leader should be ready to face the challenges and use skills abilities, experience to counter the adverse effect of the business environment.
Communication
Communication is the key to success. A leader should eliminate the gap between him and employees to tackle out critical issues and solutions for them. The suggestions, opinions, and ideas of employees can be helpful in case of need of immediate action. Training and development program should be introduced to fill the gap between employees and managers. An effective leader does not depend upon a single plan or strategy.
Alternative Strategies
He should have some alternative strategy that can be used in case of failure. A well-prepared plan will be easy for the leaders to implement in an emergency. The alternative plan will be implemented when the company evident that original plan is not expected to provide desired results.
All the above recommendations are helpful for the companies working in the competitive global environment. By applying all of them, a company would be able to align their strategies in a way that can deal with the critical situation. Especially, these recommendations will prove to be effective for managing complexity, ambiguity, and change within an organization. Nokia needs to use these strategies to come back in the industry as it is losing its potential image in the technology industry.
Continuity
Continuity refers to make efforts for the sustainability and reliability of the business operations. The employees of a company should get busy in finding new innovative things that can prove to be beneficial in future. Google allows its employees to allocate ten percent of the total time in finding new innovative ideas. A company can manage its operation efficiently when it practice persistently to bring a change in the existing system.
List of References
Anon., 2016. Who Killed Nokia? Nokia Did - Insead Alumni Magazine. [Online] Available at: https://alumnimagazine.insead.edu/who-killed-nokia-nokia-did/ [Accessed 30 March 2016].
Bach, S. & Edwards, M., 2013. Managing Human Resources: Human Resource Management in Transition. Hoboken: John Wiley & Sons.
Collins, R., 2016. The Key to Managing Complexity: Creative Management. [Online] Available at: http://www.optimityadvisors.com/insights/blog/key-managing-complexity-creative-management [Accessed 30 March 2016].
DaniealLock Consulting., 2015. Cultural Complacency, Nokia, And The Urgency of Change Management. [Online] Available at: http://daniellock.com/leadership/nokia-cultural-complacency-and-the-urgency-of-change-management/ [Accessed 30 March 2016].
DanielLock, 2015. Change Management Lessons from Microsoft and Apple. [Online] Available at: http://daniellock.com/innovation/change-management-lessons-from-microsoft-and-apple/ [Accessed 30 March 2016].
Nokia, 2014. Keeping it simple: the challenge of managing complexity. [Online] Available at: http://networks.nokia.com/news-events/insight-newsletter/articles/keeping-it-simple-the-challenge-of-managing-complexity [Accessed 30 March 2016].
Northouse, P.G., 2010. Leadership: Theory and Practice. London: SAGE.
Polelle, M.R., 2008. Leadership: Fifty Great Leaders and the Worlds They Made. Santa Barbara: ABC-Clio.
Schein, E.H., 2010. Organizational Culture and Leadership. Hoboken: John Wiley & Sons.
Sims, R.R. & Quatro, S.A., 2005. Leadership: Succeeding in the Private, Public, and Not-for-profit Sectors. Armonk: M.E. Sharpe.
Stewart, N.a., 2010. Leadership: A Reflection. Bloomington: Trafford Publishing.
