- INTRODUCTORY REMARKS
The main objective of every organization is to become competent and economically prosper and inevitably, every organization requires analyzing different things from different standpoints and every standpoint is important for the company. Unfortunately, there is no single definition of the term ‘Organization’ exists in this world, because every author has had defined the concept in somewhat different manner.
When it comes to managing the things, then every department will come under the nose of management. If the definition of organizations depends upon the fact that organization is a place where in different departments work together for the achievement of a single and pre-specified goal in total. Among different departments, which usually found in an organization, the name of operational department is one of them, which is extremely important from different standpoints. Operational department is a department of an organization which deals with the operations of a company in total . Managing the operations of a company is an extremely important activity for an entity and every organization in this make such strategies from which they can manage the things accordingly and effectively at the same time. The objective of this research is to analyze the operational management strategies and functions of a chosen organization. The company which has been chosen for the same purpose is Nokia UAE Inc.
Nokia is considered as the leading mobile phone brand across the world. The company is a Finland based international organization whose product range lies in telecommunication and information technology industry. Company’s headquarter is situated in Espoo, Finland. Their crucial offerings involve mobile cell phones and portable Information technology devices. Moreover, Nokia is also committed to provide wide range of internet services such as diverse applications, mobile games, and multimedia, instant messaging, as well as free digital information for map and routing services. The company was established in 1885 which then integrated in Nokia by the year 1871. Nokia had strengthen their position in telecommunications industry by 1970 and getting more involved and introduced the Nokia DX200, which is designed to react as a digital switch for telephone exchanges (Barnes, 2008). DX200 had become the main network equipment sector at that time. The company’s overall success is predominantly lean on their skilled workforce comprise on 101,982, the company has filtered and extract such talented employees from 120 countries throughout the globe. The company has reported its annual turnover of about €30 billion from 150 countries in the last quarter of 2012. At the time of its peak, Nokia was placed at second position by holding a share of 18% in mobile phone manufacturers and sales of units. However, in current scenario, Nokia is constantly losing its market share in smart phones by having only 3% share in it. Since the Smartphone revolution took place in the market, Nokia has suffered severe financial distress and real time example is that Nokia has loosed 40% of their revenue in mobile phones during the second quarter of 2013. Nokia was considered as the largest mobile phone provider from 1998 to 2012. However, in last five years, the results of its market share fell more and more because the trend of usage iPhone touch-screen smart phones, Android smart phones and the Google operating system has created new values in telecommunication industry.
- Strategy of the Company
Inevitably, strategies lies at the heart of an organization and no organization could service for a long span of period without having perfect and timely strategy. In order to be competitive and edgy, organizations have to check their strategies because most of the time, people realizes their operational strategy and its related flaws after its devastation . In order to produce competitive managers which are capable to play effective strategic part not in businesses area but in governmental enterprises, therefore it is required to conduct operation management practices as it is the most vital one and cannot be abandoned. Operation management plays a dynamic role in controlling the operational system of an organization . Operational management is responsible to cope with design; operation and improvement in entire structure of company from the manufacturing and delivery of company’s principle products and services. Operations Management is associated with functional business areas with defined management roles. Quality management is significantly required in operation management as it is very important aspect for every organization . Operations Management is also conducive to the bank's management to predict customer buying accuracy. Therefore, operation management is a foremost essence for any manager of an entity in terms of two rationales. The primary feature enables the company to increase the productivity as it ultimately reflects optimistic affects over the financial condition of organization. Secondly, the operation management greatly assists the organization to identify the latest trends in order to meet the customer’s competitive preferences. Strategy lies in the backbone of an organization, thus a company cannot be in the net of economic prosperity until and unless it has effective strategies in total. The strategies of the company depends upon number of factors which including financial strategies, marketing strategies, human resource management strategies and operational based strategies and it is important for an organization to stick with the most effective strategies merely to bring economic and strategic based prosperity of an entity.
Mission
Strategy Analysis
There are number of kinds of strategic analysis in total, which deems extremely important for an entity in total. Cost Effective strategies and differentiation strategies are some of the major strategies which have to been seen, observed and analyzed by an organization in total. It is required to analyze that which strategy, the chosen company has been using since its establishment. Inevitably the entire world is dwindling heavily due to the current economic crisis, which affected the stance of strategic analysis completely. There are number of tools and methods which could be taken into account. Due to the low buying power of the consumers, the selected company (NOKIA UAE) is strategizing to make and distribute such products which are easily affordable for the companies. Cost effective strategy and differentiation strategies which could be taken into same account in total and both of the strategies are essential for them.
After the severity of the current economic crisis, the company found real jolts for the economy as a whole. When an organization is having the decision power in total, hence it has the power of consumption in total. Nokia UAE has revised its strategies for the cost efficiency and differentiation. Cost effective strategies are wonderful from different viewpoint for a consumer, but it is required to analyze which cost strategy would be vital in total . The company has recently discussed the effectiveness of the cost bases strategy function and manufactured and launched new products which are quite affordable for the middle class income individuals. Nokia UAE has adheres with this particular strategy and has been launching the cost effective strategies. Differentiation strategy is one of those strategy which used by different purposes. In the differentiation strategy, a company would sell its products to a particular market and we have to analyze the differentiation based strategies.
Differentiation strategy on which this particular company relied upon because the company has now emerged in the manufacturing and selling of smart phones mobile phones and applications. The company has its active recognition in different parts of the world; therefore the company has enough strength from which they can recognize the things accordingly. From last few years, it is found that the customer base of Nokia UAE in now emerging and requires not to have the cell phones of Nokia UAE, merely due to the hardcore competition in this particular industry in total. Justification could be found in the strategic failure of the company and the proposed strategies will certainly be helpful or the companies in total (Anonym, 2012).
Measuring the productivity of either organization or the workforce associated with the organization, is extremely important and it is vital for the companies to timely check, analyze and then vitalize their operational strategies related to the workforce as without satisfied employees, an organization could not be in the net of economic prosperity and expansion. There are more than 101,982 employees are current working with the company in different parts of the world, which are quite happy by adhering with the standards they are giving to their customers. Likewise other companies, measuring and analyzing the performance of employees is extremely important and vital for a company and Nokia UAE is one of those companies which is having a great time in working with their employees. The company empowers all of their employees before taking any decision. Apart from that, the company has a perfect Human Resources (HR) department in its premises which would certainly help out the company to measure the performance of its employees. The HR department of Nokia UAE has the sufficient information regarding the operational capability of the company but this particular department is also use to manage the things for the productivity. Nokia UAE measures the productivity by analyzing the work against a single task of a person just for the sake of 1st time. Nokia UAE assumes that productivity is directly proportional to the satisfaction level of the employees, therefore how satisfied the employees of Nokia UAE the more effective result could be done accordingly and the company is complying this particular strategy since its initiation.
- Forecasting Technique Utilization
Forecasting is one of the most important activities from an organization. Forecasting is a tool which is analyzed on the basis of organization strategy and productivity as well. There are number of forecasting approach which has been chosen by the organization to manage and control the things accordingly. Though there is nothing to disclose about the forecasting technique because the company has not explain anything about it. The forecasting technique that should be used in this particular company is regression based forecasting modeling regarding the cost forecasting and net income forecasting as well. This particular approach or technique is an essential to initiate the forecasting accordingly (Charles, 2012). Apart from this particular forecasting, there are some types as well, which deems favorable and effective for the company in a broad nutshell, including the one which is mentioned just earlier and the company should stick with the same as it is the most authentic and widely used forecasting technique which analyze the future consequences accordingly with the help of different orientation. Nokia UAE has to undertake this strategy into consideration because it will help out the company to meet with its deadlines.
- Products and Service Design
Products are the end things of an organization which has been launched for their consumers and these things are the one which could not be associated with any other thing of a company. Organizations have to present their products in a manner from which they could have the stance of quality as well as efficacy as well. Products should be design and mold in a manner that it could bring economic based prosperity for a company in total. Likewise other organizations, Nokia UAE also has numerous products under its head and every product is perfect for the company.
The line of products of the company including the simple mobile phones, Android, Smart Phones and now Tablets as well. The products of Nokia UAE are no doubt reliable, but now people have number of options that is why the productivity of this company went drastically down. If we have to position the products of Nokia UAE according to the Product Life Cycle (PLC), then we could be said that the products of the company has touched maturity some years before and now moving towards the declining, because preferred customers of Nokia UAE are now interested to use other mobile phones which are having similar capacity and features but in lesser price and high reliability factor. The company is not managing its current products according to their strategy, and that is the main factor due to which it is analyzed that in which stage of PLC, the company has stand. The strategy of the company is cost effective, but the heavy application based mobile phones are very expansive in Nokia UAE, however other smart phone manufacturers like Samsung and Apple Inc are not having in the queue of charging wrong pricing.
- Capacity Planning
When it comes to productivity of an entity, then it is extremely important to plan and analyze the capacity of a company accordingly. Capacity Planning means the planning of the capabilities of an organization for the best possible effectiveness of a company.
Nokia UAE is one of those companies which have a perfect workforce and an intelligent management as well, but unfortunately, both of these provisions are unable to satisfy the needs accordingly. The capacity is unable to utilize because of the conflicts among the management, employees and some of the major shareholders of the company. First of all Nokia UAE has to give all sort of confidence to its shareholders because of the continuously depleting situation of the company. The circle of empowerment and planning of the capacity should be prolonged and get broad accordingly as it will certainly have perfection in total. Plan the capability in this way certainly enables the management to bring economic and strategic change to the company.
- Process Design
Process Designing is one of the most effective things from the viewpoint of an organization and with the help of a perfect process design, organizations become able to generate enough profit. The design of the process of the products of Nokia UAE is perfect and has been mold in a sort of phenomenon from which entire product initiation would become effective.
In processing the design of the product, every department and part of Nokia UAE found active in vitalizing the effectiveness of the company. Department like, freight forwarding, cost accounting, purchasing and distributing are all engage in making a perfect end product for the end users. The designing process of the company is quite sophisticated and typical and it cannot be match with any other thing in total. The real shortfall associated with the current process design of the company is having high cost initiation which is totally against the marketing strategy of the company as a whole. If the designing could have been done and initiated in the same manner, then it would become effective for the company to enhance the productivity of the company but there is a need of sticking with the current strategy of the company which is cost effectiveness and in this particular designing of the product is blurring heavily.
The physical location of Nokia is in Finland, but we are targeting its UAE subsidiary which means that the company has its sister concern located in this particular country. UAE is basically a Muslim Dominated Country and it is a country which lies in the Middle East region. One of the fastest growing economies of the world, performed exceptionally well during the current economic crisis
The location in which the company has its headquarter is perfect and the company should go with the same, however countries like India, Pakistan, Indonesia and other developing countries has to be given special attention related to the safety and security. There are certain factors which could have been found in the strategy of Nokia UAE including the legal and political risk of the country in total. And Nokia UAE has to adhere with the same. The location certainly support the strategy of the company, as it is a safe and perfect place in which the company could be effective and take decisions accordingly and effectively at the same time, and the company has to do something to strengthen its financial and strategic position bit further.
- Quality and Quality Control
Quality, Quality check, Quality assurance and Quality are similar things and associated with the end products of a company. It is required to analyze that is the association of quality based with the products of the company then it would certainly be effective for the company as a whole
The quality of the end product of Nokia UAE is no doubt wonderful but it is required number of things which to be considered by the organizations in order to become economically and strategically prosper. If the company would remain in the same manner and would continue the quality control stance in the same manner, then it is not far and large that the company may have high net productivity and expansion both in terms of financials and in terms of strategic growth as well, therefore the overall strategy of the company is perfect in terms of quality and certainly backing its stance.
- Conclusion & Recommendations
Organizations always concerned with their economic profit and prosperity and in order to accomplish the same, there are certain decisions which have to be undertake by an organization to become economically prosper and strategically competitive. In order to accomplish the current and above mentioned objectives, organizations have to consider number of things in total and have to take effective and timely decisions.
Organizations always concerned with their competitors because they are the one due to which their financial competitiveness would decrease considerably. It is the thing for which an organization can take and mold different strategies to comply with the standards and alternative products. Cost and benefit decisions are the most important decisions for an entity to undertake because the entire productivity of an organization depends upon both of these decisions. It is more than important for organizations to decrease the amount of cost to increase the financial belongings accordingly. Timely meetings should have been arranging in an organization to increase the amount of benefit on the operating cost because it is the whole bread and butter for a company. Among number of strategies that could be used by the companies to manage the companies, the name of operational management is one of them which deems extremely important for a company in total. Every organization in this world requires managing its operations with perfection and with all sort of efficacy in total. The objective of this research is to analyze the operational management strategies and functions of a chosen organization. The company which has been chosen for the same purpose is Nokia UAE Inc.
Recommendations
It is extremely important for Nokia UAE to spend high amount of money on the Research and Development stance
Nokia UAE has to come up with initiatives and new ideas of making mobile phones, otherwise any new company could overcome them
Reliability factor with the products of the company is extremely high and it should be increased in near future as well
Cost Efficiency based strategies should be taken into account
Segmentation and target market strategy should be changed and should focus on lower middle class as well
Different initiatives should have been taken to eradicate the level of conflicts among the employees and the management
References
Anonym. (2012). Diversification Strategies of Nokia. New York: GRIN Verlag.
Barnes, D. (2008). Operations Management: An International Perspective. Miami: Cengage Learning.
Barry J. Witcher, V. S. (2010). Strategic Management: Principles and Practice. Chicago: Cengage Learning.
Charles E. Bamford, G. P. (2010). Strategic Management. Washington: Cengage Learning.
Charles W. L. Hill, G. R. (2012). Strategic Management: An Integrated Approach, 10th ed.: An Integrated Approach. New York: Cengage Learning.
Leseure, M. (2010). Key Concepts in Operations Management. New York: SAGE.
Mishra, D. K. (2011). Operations Management: Critical Perspectives on Business. Houston: SAGE.
Nigel Slack, A. B.-J. (2013). Operations Management. London: Pearson Education.
