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Strategic Change

In: Business and Management

Submitted By nmaier
Words 11124
Pages 45
It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.
(Charles Darwin)
Introduction
In this chapter, we turn our focus to how organizations sustain advantage. We do this through exploring strategic change, while, to complement this in Chapter 12, we examine strategic innovation and corporate entrepreneurship. Strategic change is about ensuring that the organization is consistently relevant in its market arenas and, as the opening quote from Darwin illustrates, about the need to be responsive to change. Back in 1865, the seeds of the company that we know today as
Nokia were sown when Frederik Ideastam set up a paper mill on the banks of the Nokianvirta river in Finland. From this base, over the next hundred years, the company evolved to become a Nordic industrial conglomerate operating in paper, rubber, and cables, and from there to a European player in consumer electronics in the 1970s and 1980s. In 1996, a decision was made to divest all of its other businesses in order to concentrate on becoming a global giant in telecommunications. This is the position that Nokia is attempting to retain as it continues to ride the technological wave of change, focusing on technological convergence in mobile phones, multimedia, and enterprise solutions.
Although the reorientation of Nokia over time did not come without its difficulties in integrating acquisitions and developing a strong corporate culture to unite objectives, and the company acknowledges that significant challenges lie ahead, it is clearly the story of a dramatic and successful corporate evolution. Corporate pressure is relentless, however, and in February 2011 Nokia announced a change in strategy, a new leadership team, and a renewed organizational and operational structure. According to chief executive officer (CEO) Stephen Elop,

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