Strategic Management at Nokia
Create a 6 pages page paper that discusses strategic management at Nokia.
Strategic thinking is defined as “an intent-driven approach to a strategy based on critical theory and supported by a complex cluster of cognitive capabilities that are distinct and different from strategic planning”. It can be clarified further as a cognitive process that is quite different from the strategic planning process and can stand independently as a formally created planning process. It depicts itself differently irrespective of being generated by an organization, team or an individual (Grundy and Brown, 2002). The main purpose of strategic thinking is problem-solving and leading a rigorous process of challenging, exploring and examining the underlying premises of the strategy and at the same time, generating new options for creating a sustainable, innovative and winning strategy. Strategic thinking is imaginative, inclusive and based on critical-reflective process. The positioning of future competitive advantage for the organization is the heart of every strategy. In this regards, strategic thinking should reflect this essence. Strategic thinking is the process that helps in driving the strategy. Positioning the future competitive advantage signifies that competitive advantage of an organization erodes with time and strategic thinking is required in this respect for continuously strengthening and developing it. In an organization, the executives, the policymakers and senior line managers are seen to exhibit strategic thinking. A similar situation is also observed in the case of Nokia. The smartphone strategy implemented by the CEO of Nokia, Stephen Elop is a manifestation of strategic thinking.
This strategy change was necessary for the organization since it was facing a decline in its market share caused by the fierce competition in the smartphone segment. Nokia experienced profound changes after initiating the smartphone strategy and has marked the end of an era. Moreover, the CEO of Nokia had correctly found that the present battle in the smartphone segment was not about the devices but the ecosystem. In this context, the CEO of Nokia had shown strategic thinking and had foreseen the future. Thus, the company ended up merging with Microsoft as both of them has positioned themselves to construct a competitive and viable mobile ecosystem.