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Strategic Management.
Preface:
In 1992 Nokia’s main business units were Nokia Consumer Electronics (31 per cent of total sales),
Cables and Machinery (25%), Nokia Mobiles Phones (20%), Nokia Telecommunications (17%) and
Other Operations (7%).
Nokia’s turnover was 3043 million €, and net losses 121 million €. (€ = EURO, 1€ ~ 1USD)
“Nokia’s strategy is to invest in telecommunications and closely associated business operations. It focuses on industry segments and geographic regions that have good opportunities for growth and profitability” Jorma Ollila, the new chief executive officer, 1992.
In 1999 Nokia had 100 per cent of its operations in the telecommunications and mobile phones, turnover was 19772 million € and net profit 2557 million €.
In this assignment I focus on strategic analysis at Hefley Finland business unit level.
Strategic Management
All firms are faced with the need to create strategies and engage in strategic management.
According to Porter unclear strategy is a guarantee for failure.
Strategic management is the management of the process of strategic decision making.
It can be dived in three parts:
1. Strategic analysis
2. Strategic choice
3. Strategy implementation
In an organisation every person may (and should) has a strategy. But it is more common to classified organisational strategies in three levels:
1. Corporate level strategic decisions, which deal with
- Overall purpose and scope
- Portfolio issues. Adding value to shareholder’s investments
- Corporate financial strategy
- Structure and control of strategic business units
- Resource allocation between strategic business units
2. Strategic Business Unit strategy, where the main issues are
- Developing market opportunities
- Developing new products and services
- Resource allocation within the SBU
- Structure and control of the SBU
- Competitive strategy