Nokia Applying Art of War Essay

Sun Zi Art of War is one of the oldest and most successful books on military strategy. It had an influence on Eastern military thinking, business tactics and beyond. In this assignment, we will apply Sun Zi Art of War Theories into companies chosen, Nokia Firstly, our assignment is based on Chapter Four (Disposition of the Army) of Sun Zi’s Art of War. One of the key points of Chapter Four is about a skillful general will ensure undefeatedness when waiting the opportunity to offend or defend the enemy. In business circles, we have to create opportunities to defeat and set conditions to ensure that we would not be defeated by rivals. Furthermore, a skillful general should possess to evaluate the chances of victory. There are five stages that need to look into. There are estimating the degree of difficulty, assessing the scope of operation, calculation of own forces, comparison of forces and establishing the chances of victory. All of these stages are useful till today’s business practices. Nokia is a company involved in digital technologies, including mobile phones, telecommunications network, wireless data solutions and multimedia terminals. Nokia’s history is from 1865 when engineer Idestam established a wood-pulp mill in southern Finland and start manufacturing paper. The beginning of Nokia’s journey into telecommunication was is in 1960, Nokia? s Cable Work’s Electronics department started to conduct research into semiconductor technology. Content Related to our topic-Weaknesses and Strengths, we would like to use a mobile phone company as an example, which is Nokia. Nokia is a Finnish multinational communications corporation. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries. It is the world’s largest manufacturer of mobile telephones and it produces mobile devices for every major market segment . Offending and defending is one of the elements in Sun Zi concepts. Sun Zi said: â€Å"Those who were skillful in warfare ensued that they would not be defeated and then waited for opportunities to defeat the enemy†. It means that we not only need to attack but need to defend too. Besides waiting for hances to attack, we need to defend ourselves from being defeated by competitors too. This concept is being applied on modern business strategies and practices. We can see that Nokia is skillful in warfare (business world). Besides produces mobile phone, Nokia also offers Internet services such as applications, games, music, maps, media and messaging. Apart from that, Nokia also comes out with assorted model of mobile phone, for example, N-series, Xpress Music series, Supernova series and others with different function to attract different range of mobile phone users. Besides that, Nokia’s subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services and it also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq. From this we can see that Nokia not only attack its competitors by producing different kind of cell phone but also defend itself by having other products and services other than cell phone. At the same time, Sun Zi also mentioned that â€Å"the ability that is preventing defeat depends on oneself, while the opportunity for victory depends on the enemy†. Nokia has its own preventing defeat ability by having their own professional designer and Research & Development department. Their designers are assigned to design some new and attractive model to attract different level of mobile phone users while research and development are carried out to invent some new function to improve the quality and value of the cell phone. Apart from that, Nokia is now planning to have collaborations with competitors. Alongside pursuing this goal of nurturing more innovative partnerships, Nokia will also be looking to explore new product categories for Symbian and Smartphone technologies, extending the reach of higher-end technologies into mid-range devices after they addresses a need for many people looking to downgrade to less expensive products, especially in such fragile economic times. Nokia also comes out with Nokia 5800 XpressMusic as it offers unique value for those who want to experience their music on the move, after found that all touch screen devices are sold popularly worldwide. Besides that, Sun Zi also said: â€Å"Defend when military strength is weaker than enemy and attack when forces are stronger than enemy. † This means that we should defend when forces and resources are inadequate and attack when forces and resources are more than abundant. In the late 1980s and early 1990s, Nokia ran into serious financial problems due to its heavy losses by the television manufacturing division and businesses that were just too diverse. The company responded by streamlining its telecommunications divisions and by divesting itself of the television and PC divisions. After the strategic change, Nokia gained a huge increase in sales from Finland to North America, South America and Asia. The exploding worldwide popularity of mobile telephones had made the company the world’s largest mobile phone manufacturer. With solid foundations and sound financial situations, Nokia has recently plans to develop Salo plant operating mode to further increase production speed and efficiency for a growing Smartphone market. Besides that, Nokia also merge with Intel to be software platforms for future computing devices. Sun Zi said: â€Å"A skillful general studies the ways that can lead to victory, and set up proper organizational structure and control, and maintain law and order which will lead to victory. † The person adept in warfare not only cultivates his moral code but maintains law and order. In this way, he is able to develop policies that determine victory and defeat in war. For example, Nokia has a proper organizational structure and control. Nokia comprises three business groups which included Devices, Services, Solutions and Market. The four units receive operational support from the Corporate Development Office which is also responsible for exploring corporate strategic and future growth opportunities. The Devices division is responsible for developing and managing Nokia’s mobile device portfolio, including the sourcing of components. The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games. This group works with companies outside the telecommunications industry to make advances in the technology and bring new applications and possibilities in areas such as online services, optics, music synchronization and streaming media. On the same time, the Solutions division is responsible for Nokia’s offering of solutions, where the mobile device, personalized services and content are integrated into a package for the consumer while the Markets division is responsible for the management of the supply chains, sales channels, brand and marketing functions of the company. Discussions When we discus about Nokia is company which the first enters into the business field has the priority to gain the market and has advantages over other companies. Actually, this is not easy being a marketing leader in this industry; the rick was also instrumental to take in Nokia’s worldwide effort to assure the financial strength and flexibility. This strong financial are help the company able to have a very strong and efficient human resource team. This strong financial background help company to attack its competitors by producing different kind of cell phone and also defend itself by having other products and services other than cell phone. Nokia believes it should be easy to share information and content between our cell phone and other devices you use everyday such as PC and the web. This way it is easy to keep everything synchronized and ensure people always have access to the things they love, such as music, and the services they use, such as navigation, whenever and wherever people need them. The average person spends between one and two hours per day in their car. Given that their cell phone not only holds their favourite music but now, if it is a Nokia cell phone, comes with free worldwide navigation services (Maps), the next logical step is to provide an easy way to connect their cell phone to their car. This way services and content from the mobile can be fully integrated with the in-car speakers, displays and control systems. Just as importantly, though, this connection should be two-way so that the cell phone can access performance information from the vehicle itself and provide more relevant information to the driver. Nokia company not only responsible for corporate and technology strategy, strategic alliances partnerships, research, standardization, intellectual property rights, and venturing. Nokia has a well-defined and efficient human resources team that is organizational HR, Business HR, and CPD. These groups work closely with employees and management to create and carry out all people initiatives. They also responsibility for all human resources activity including employee development, management and leadership development, compensation, benefits, staffing and global diversity. The human resource manager also acts as the ‘hosting manager’ for Workplace Resources. This role involves helping Workplace Resources achieve their goals by being a discussion partner for him and his leadership team. Sun Zi said: â€Å"The purpose of raising such a large army is to achieve wsift and decisive victories. † It mean in such a big increase in troops is aimed at achieving wsift and decisive victory, before a company want to be success they must raising the employees welfare and their fight heart. Recommendation As we know, Nokia, which has entered into the mobile phone business since early 1980s, has more advance history than other mobile brand like Sony Ericsson, which entered the field on October 2001. Thus, Nokia should keep on improving their mobile phone and devices by using the element of Sun Zi Art of War. Sun Zi said: Those who arrive first at the battleground will have sufficient time to rest and prepare against the enemy. Those who arrive late at the battleground will have to rush into battle when they are already exhausted. In other word, company which the first enters into the business field has the priority to gain the market share and has advantages over other companies. Since the trademark of Nokia has been well-known by mobile phone users, Nokia can gain a number of its loyal customers. Nokia also continually to modify and innovative its mobile phones and devices, and more expensive multimedia and enterprise-class devices. Moreover, Nokia has more experience than Sony Ericsson in communication sector. Furthermore, Nokia Company suited with flexibility, adaptability and shaping with their products when the environment factor occur, like economic recession or inflation. Indeed, it should not seek to conform, but to transform itself to suit the environment. Based on chapter six, the person who gains victories by adapting to the changing conditions and situations of the enemy can be considered a legend in warfare. When the company meets the obstacles, they also should be flexible like water by changing their tactics to overcome the difficulty to ensure they are undefeatness by the opponents. The Nokia Way emphasizes the speed and flexibility of decision making in a flat, network organization, clearly stated by Nokia’s official corporate culture manifesto. The trademark of Nokia has been well-known by mobile phone users, but Nokia company also should redefine its values by develop Nokia’s official corporate culture manifesto. The trademark of Nokia has been well-known by mobile phone users, but Nokia company also should redefine its values by develop their product to satisfy customer needs and expectation. Its comes out with the slogan, that is â€Å"Engaging You, Achieving Together, Passion for Innovation and Very Human† in May 2007. More troops would be committed when the situation dictated so. In addition, Nokia Company need to matching strategies with ground characteristics in the business environment. This is evident in the various descriptions given to each type of group and the different strategies advocated for them. Based on chapter eleven, Sun Zi emphasized the importance of understanding and exploiting these different grounds. He said that the effective deployment of troops, whether they are strong and weak, depends on the understanding and exploitation of the terrain. Nokia Company should exploit different branch to selling various type of mobile phone device over the country by fitting the affordable consumer’s needs at the right place, in a right time. For example, Nokia offers a free personalized service to its subscribers called My Nokia which located at my. nokia. com. Registered My Nokia users can avail free services as tips and tricks alerts through web, e-mail and also mobile text message. My Nokia Backup is the service needs GPRS connection to get a free online backup service for mobile contacts, calendar logs and also various other files. Besides, numerous ringtones, wallpapers, screensavers, games and other things can be downloaded free of cost. Then, Nokia develop some strategic to merchandise their product by using market basket analysis or organize a Nokia Fair by promote product at a cheaper price in order to gain more market share in this modern world. Conclusion Through our assignment report, we know that many Sun Zi’s Art of War concept has been applied in today modern business strategies and practices. This has proof by our assignment’s research. The studies of Sun Zi’s theories are use in today business based on the example company we choose, which is the Nokia mobile phone company is very useful and effective. Our research had discovered that Nokia had applied the Sun Zi’s concept of Disposition of the Army as a guideline for achieving the company goals. As a conclusion, the first knowledge we learned through this report is we cannot always attack but need to defend based on different situation. As we waiting for chances to attack, we need to defend ourselves from being defeated. Secondly, we also learned that we can build an invincible defend to make the competitor difficult in attacking us. However, to defeat the competitors, one has to attack and the chances of victory depend on how strong the competitors can defend. The next thing we learned is we should defend when forces and resources are inadequate and attack when forces and resources are more than abundant. Lastly, we also learned that the person adept in warfare not only cultivates his moral code but maintains law and order. In this way, he is able to develop policies that determine victory and defeat in war.