Leadership And Change Management

leadinghip And Change Management leadinghip is a sequence of multidirectional, reciprocal influence processes among m all an separate(prenominal) individuals at variant levels, in different subunits and within executive teams (Yukl 1994, p. 459). It is the way to acheive the gaol and motivate the pot to do best. leadinghip is the source of inspiration and it shows the action and way of acts to do. leadhip is considered as a yield of complex social relationships (Dachler 1988). Current theoretical approaches on attractership research is concern about a keener extent social function of drawship research which describe and concord virtually understanding and recomm depots for effective leader behaviour and normative models. They focus more on explanations of leadership processes, describing leader behaviours, and present why behaviours occur in certain situations. If at that place ar behavioural recomm barricadeations be available it means this is usually d nonparei l more conservatively and rarely without any philosophy that anything is possible. Current leadership theories are accepting the limits which dumbfound leader influence. The best leaders are those most interested in surrounding themselves with assistants and associates smarter than they are. They are frank in admitting this and are willing to pay for such talents.(Amos Parrish).Leader is a person who rules or guides or inspires others(Andrew, 2007). A leader is a person having dis spot which others want to follow him. They may not always commit right decisions exclusively they are confident in hte decion making and they know when they should win over their directions and why. Even after a few mistakes a leader will not lose his or her followers confidence . Leaders are recognised, not chosen or selected. In brusk, leaders father something extraordinary in their personality to inspire their followers. They bedevil the qualities that the others dont break. It is an intengibl e characteristic that fundamentnot be explained. hardly hte truth is that when we see it, we will recognise it.Contemporary theoretical concepts have assumptions that leadership has to be unsounded. Following Hunts classification leadership approaches on a continuum from objectivistic to subjectivistic (Hunt 1991), they are more likely to present it as subjectivistic purpose. If traditional patterns of explanation included in the content of bleaker approaches, contemporary theories, these are generally have to be understood as an advantage of classical theory. There are some particular batch that others follow them, they like on that point style, work and extraordinary activities.If we look at organisational events, there is someone who have the leadership qualities, these are people who are willing to order and tell the other people what they have to do and what to do, and have the respect of other people or gain that respect.Many images do by inspirations from leadership. They have their own identity and fame in the world. Special individuals like, Hitler, Jinnah, Gandhi or Napoleon. The drool around these people show that they passed from so many crisis where acts of one person who is the leading peosonality, are meaningful and people admire to follow decision of their leader. Leaders have the ability to decide, what understructure do and what they have to do and they go to sleep thier message to others to communicate and pass thier message to others. When these are absent or cannot deliver their ideas harmonisely there may be problem. Quality of leadership is success of groups and organisations. There are so many definitions for the leadership quality. There are so many leadership qualities and four master(prenominal) things are to lead influence on others. Second, where there are leaders and there are followers as hale. Third, leaders must(prenominal) show up or involve when there is crisis or special problem. The leaders have quality tha t they seem to come visible when an advance(a) action from other side is required. Fourthly, leaders are the people who know that what they have to do and what they should do in future and why they should impliment their stretegy. So, leaders are the people who have clear vision about the commending and decision that what they should do in uncertain situations and who have the effecting personility in the actions, thoughts and positive views and thinking of others. In this case, leaders qualities are personal. It depends on individuals qualities and actions. Leader can be manager or expert. May be not all managers can be leaders and not all leaders can be managers.In literature of leadership there have been four generations of theoriesTrait theories.Behavioural theories.Contingency theories.Transformational theories.Leaders are person who are able to explain themselves(Warren Bennis,2004). If we stand the knowledge about the lives of people who have marked that they are the great personalities or great effective leaders, it make it clears that they have very different qualities. If we think about political personalities like Nelson Mandela, Ghandi, Margeret Thatcher and Mao Zedong then we will confirm that these are the personalities who have great impact on the followers.The general qualities or traits should be in leaders. Stogdill (1948) and Mann (1959) reported in a survey that many studies have resulted that the personality and characteristics make out leaders from thier followers(Stogdill,1948).John Gardner(1989) studied a large number of North American organisations and leaders and conclude that there are some qualities or behaviours that appear in a leader. These include Physical, mentally and mind making stamina Most Intelligence and action taking judgement Crucuial to accept responsibility and challenges byplay accepting Understanding of people and meet and fullfil their ask Skill in communication with people and followers. Courage to acheive their goal Courage to motivate people closing Trustable personality and attitude Courage to decieve Self confidence . Couraging personality Challenges accepting personalityWe mostly have hear that leaders lists concerns their apparent maleness (Rosener, 1997). Rarely, we heard that women is leader. The attributes which are related with leadership are mostly male. May be the leadership characteristics are gendered and mostly these characteristics are in male.The behaviour of leader likewise counts. They moved from leader to leadership. If leaders are liked and respected then they can have more support and backup from their followers. The successful leadership is found on definable and learnable behaviours i.e, leaders are made, not born. These extensive and systematic studies aimed to identify behaviors associated with effective group leadership. Blake and Mouton (1964) damped the Managerial Grid which reason leaders based on their dominant behaviours. These researchers were mak ing progress in indentifying what behavior distinguished from followers. These behaviours could be taught. That is why these researchers conclude that leaders are made, not born.Although behavioural approaches to leadership offered a wider scope than trait theory. Researchers are unable to identify a specific set of leadership behaviours.Contingency possibleness operates on the premise that the leaders ability is based on different situations and the structure of the task at hand of the leaders (Fred Feidler,2001). Fred Feidler argued that leader effectiveness depends on twain related factors one is that the leadership style and the education or situation which force the person to become a leader. He besides developed a scale (LPC) to measure the degree to which a persons leadership style tended towards the followers.There are four leader behaviours directives, supportive, participative and achievement oriented and alike attempts to account for many more achievement factors than previous studies (R.J.House and T.R.Mitchells Path goal Theory (1974)). Path goal theory explain how and why certain leader behaviours result in desired outcomes. This theory betoken that leaders are basically responsible for helping their followers develop behaviours that leads to achieve their goal or desired outcome.Victor.H.Vroom and Philip. W. Yetton (1973) suggest the use of co-operative decision making in an organisational context. They create a decion tree to answer the questions about the reputation of the followres and problem to be resolved. A leader can determine what sort of leadership style should be used by following the useful ideas of the decision tree.Transactional leadership is basically in contingncy and is contingnt upon performance . The leader, who have power and control over his or her employees or followers, interprets recent ideas or suggestions for followers to do what the leader wants. The research depends on its limitations. Transactional approach i s carried on with the ply and demand situation. However, transactional leadership is little effective than others and it requisites more approaches.Transactional leadership works on the assumption that people follow the person who inspires them. The latter is a process in which all leaders and followers can help and familiarise everyone with the new ideas and their thoughts (Jamess. Burns ,1978). He introduced the concepts of both transactional and transformational leadership. This approach creates significance change in the life of people and organisations. (Bernard.M. Bass, 1985) credit lines transformational leadership with transactional leadership.While transactional leadership simply involves an exchange that leads to desired outcomes, transformational leadership motivates the people to do more than expectations( Bass, 1985).Recent theories on leadership are the process in which leaders are not considered as individuals in charge of the followers, but are consider as member s of a community of practice. This community can be defined that the people combine their ideas and partake history and familiarise the people with the way of communication.This model of leadership do not concentrate on the concept of dominance, motivation and influence which are the primary situations of leadership. If the workgroup is one where groups of people are engaged in activity unneurotic then leadership becomes the process of coordinating efforts.In todays world of corporate America, mostly people belief that it is possible to bequeath the education facility to make them a leader. But In my point of view Leaders are born not made(Adison,1995 ). We mostly see the people in promoted. But in many there are no special qualities to effect or attract the people or their followers (Everett Lockhart). Nowadays we have a voltaic pile of managers and supervisor but there are few which are leader and having leadership qualities. Sure, everyone can be a good manager or supervisor but everyone by nature is a manager or supervisor(Everett Lockhart, 1991). It is not the case that every leader is a manager first, but it is also can be possible that leader can give up the cultivation to the manager and the fact is that, everyone by nature having management and supervising personality and qualities.We ofttimes point out one person and speculate, now he is a leader, without thinking that how the person becomes leaders? And how they can attract the people. Sometimes we can say that it is the genetic quality which is in some of the people or we can say that it may be matinee idol gifted quality. Those people have this gene, they get to lead. They have all the ability to make decision. There is some good saying that Leadership DNA is myth. There are the natural or God gifted abilities in the leaders personality. These abilities are present in some of us other do not have these abilities and qualities which leads to leadership.The main quality in the leadership is that they have command to give up their ideas and they know how and which ideas effect the people. The desire to lead is the motivational quality that put them to lead the followers. Obviously there are people who dominate on their followers. They dominate on them be causation of abilities and good decision-making. They are the good and attractive leaders among us and have the excellent performance.Leadership is the collection of skills that produce results. They are able to identify the requirement of their followers and they direct them on the right way to success. Leaders can learn leadership ideas and can get all the information in so many ways for example it also provide training observation on other leaders. Self study etc. Development is the key factor which opens the leadership getaway. It is the an increase in skills or abilities and a continuously learning process by dint of life experiences. No one can be a leader just by saying that I am a leader. Leadership needs to be work hard.The main keys of leadership are as followsLeadership involves in the critical situations and solve them by giving ideas. So good leaders analyse and plan and adapt their plans to new conditions and opportunities. Leaders have a vision and they touch their vision as well. A leader takes charge. They cannot just lecturing a good game to be a leader they also can take ac and take effective action for the good of our teentsy byplay and leader inspires through example.In conclusion, leaders are the effective personalities. Their act, behaviour and decision making policies show their leadership qualities. There are some classical view also in this leadership overview. In which its described that how commentators have searched for special leading personalities and behaviours and look at the different circumstances. Classical views of leadership tend to identified by position. Where, leaders become focus for answers and solution. pile look at them when they dont know what to do. They give direction and have vision. Leaders have special qualities. These create the difference between leaders and followers.This leadership view stands for forms of organisations that are common in business. Where the purpose is to achieve the goal in short period of time. Classical leaders can have a more participating style. They have power and opportunity to take responsibilities. It can be a great- man model of leadership.The leadership traits or qualities discussed are honesty, forward-looking, competent, inspiring and intelligent. (Kouzes and Posner, 1984). These qualities are strongly correlated with people. Leaders are made, they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile. (Vince Lombardi). True leaders are rare. This is because of combination of skills, personality and ambition. Some personality traits are natural in leaders roles. This is the trait theory. Extraordinary qualities in an ordinary person which help him or her to leadership. This is the Great Events Theory. People can learn leadership skills. This is the Transformational Leadership Theory(Bernard Bass and Don Clark,2010). These thories discribes the leadership traits.Leadership And Change ManagementLeadership And Change ManagementChange refers to any alteration which occurs in over all work environment of an organization. It may relate to change in technology, organizational structure, working processes, work environment, organizational policy and even the roles people play. Introduction of change in one part in an organization forces change in other part. If the change is beneficial people accept it willingly. If it is not desirable, there is great pushance. If it is of no consequence to the people, they may adopt an attitude of indifference. If they consider the change detrimental to their crop and prosperity, they may resist through counter pressure. This reaction is based not necessarily on the reality or facts but on their perception. The change therefore should be sufficiently strong bounteous to overcome the counter pressure. Due to advancement of technology and social environment change has become a necessity. If the change takes place, a counterbalance or equilibrium is achieved by the organization. Thus people learn to expect various environment relationships within the organization. They learn adaptation. The essence is that when people feel that there is need to change, and when they change, they actually are adjusting to changed situation thus equilibrium is achieved with the changed environment. This process carries on and is never ending because change takes place continuously.1.1 Change Processes1Lewin developed a theoretical structure to deal with change process and carried out a program of search on change. The result was a good theory that has thusly turned out to be very practical. Recent work suggests that Lewins force-field analysis applies withi n a limited domain and that Lewins views are less applicable beyond the boundaries of that domain. Lewins views on change came under attack as simplistic and outmoded, but today they continue to receive strong support (Burnes 2004)1.2 Lewins Force Field Theory of change2As we know a wide variety of forces make organizations resistance to change and a wide variety of forces push organizational change. According to his force-field theory, these devil sets of forces are always in opposition in an organization. When the forces are evenly balanced, the organization is in state of inertia and does not change. To get an organization to change, managers must find a way to increase the forces for change, reduce resistance to change or do both simultaneously. Any of these strategies will overcome inertia and cause an organization to change.The following figure illustrates Lewins theory. An organization at performance level P1 is in balance forces for change and resistance to change are equal . Management , thus far ,decides that the organization should strive to achieve performance level P2.To get level P2 , managers must increase the forces for change(the increase is represented by lengthening of up-arrows) ,reduce resistance to change(the decline is represented by shortening of down-arrows),or do both. If they pursue any of the three strategies successfully, the organization will change and reach performance level P2.1.3 Evolutionary and subversive Change in OrganizationsEvolutionary change is gradual, incremental and narrowly focused. Evolutionary change involves not drastic or sudden altering of the basic nature of an organizations strategy and structures but a unbroken attempt to improve, adapt, and adjust strategy and structures but a constant attempt to improve, adapt, and adjust strategy and structure incrementally to admit to changes taking place in the environments.Revolutionary Change is rapid, dramatic and broadly focused. Revolutionary change involves a bold attempt to quickly find new ways to be effective. It is likely to result in a radical shift in ways of doing things, new goals and new structure. It has repercussions at all levels in the organization-corporate, divisional, functional, group and individual. Reengineering, restructuring and innovation are three important instruments of revolutionary change.2.0 My Organizations study3The history of Nokia goes back 1865 when the federation was established as a forest industriousness enterprise in south-western Finland on the Nokia River by a mining engineer called Frerik Idestam.This was not particularly remarkable event as numerous forest sedulousness enterprise existed in Finland at the time. Later, Nokia came into contact with two enterprises that were outside the traditional forest industry. These firms were the Finnish Rubber works Ltd (founded 1898) and the Finnish Cable Works Ltd (founded in 1912).The gradual concentration of the ownership of these companies led in 1966 to the establishment of Nokia Corporation, into which all the above-mentioned companies were merged.Nokia grew fairly rapidly in 1970s and 1980s, partly because of the then-flourishing (bilateral) Soviet trade, which was boosted by the oil crises in 1973 and 1980.When the Soviet trade collapsed in 1991.Nokia ran into difficulties. Serious consideration was given to selling Nokia in its entirely to the Swedish company Ericsson , but the unification did not materialize .Nokias solution to the crises was to concentrate on the production of the electronics( and thus to abandon the production of paper and pulp ,tires , rubber boots ,cables and so on) ,to invest massively in R D and to adapt a new management strategy that relied extensively on domestic and foreign subsidiaries and subcontractors .Nokia also actively desire to become a genuinely world(prenominal) firmBy Finnish standards , the management strategy was really revolutionary because previously companies had tried to be as self-sufficient as possible in production .Nokia decided to concentrate solely on final product and on the high tech end of the production .Nokias new strategy also involved investment in R D .Besides investing heavily in research and development , Nokia created a very useful network of research contacts between universities and itself .This cooperation has been of great benefit to both Nokia and Finnish universities. presently , Nokia accounts for more than 20 percent of Finlands total exports and its growth contribution is estimated at 1.5 percent .Nokia alone accounts for about 40 percent of the R D expenditures by private enterprises in Finland .Moreover , it accounts for 70 percent of the carry foodstuff value of the Helsinki Stock marketAlmost 60 percent of Nokias workforce is currently outside Finland .Its success shows up most dramatically in its earnings and market capitalization values. Thus, in 1999 Nokias profits equaled the combined profits of its two main rivals E ricsson and Motorola and its market capitalization was over $ 200 one million million almost twice Finlands GDP2.1 Nokia Environmental AnalysisThere are several forces surrounding the external environment of Nokia including demographic, frugalal, natural, social-cultural, technological and political- jural environmentThe Demographic Forces4Population-wise, europium is made up of five largish countries (France, Germany, the United Kingdom, Italy, and Spain) , with Germany well ahead with some 82 million inhabitants. The rest are small countries with only Netherland going as middle-sized country. Urbanization is highest in Belgium and Israel and lowest in Switzerland, Finland, and Italy. This is modestly correlated with population density , the Netherlands being the most crowded , followed closely by Belgium and then three of the big five the United Kingdom ,Germany , and Italy the least crowded countries are Sweden and FinlandThe Economical ForcesPeople in europium are reasonabl y besotted and income distribution between people is relatively even. Growing economy in Europe leads to increasing income of the people. People will buy more luxury goods (such as unsettled phones).If the economy of Europe is in decline the average income will not increase and even more likely to decrease. In this case the people will have less money for luxurious goods and will spent less on officious phones, which would be very negative for NokiaNokia has big share in European market which is 37% which is now heavily hit by global economic recession. This has affected customers potential to buy mobile phones which in turn causes in reduction in Nokias profit. As we know technological innovation is the main competence of Nokia but due to this recession Nokia is spending less on R D budget in this way Nokia is losing its competitive advantage and may signal to move away from product differentiation which is a chief outcome of Nokia R D activityNokia has strongly differentiated product and service at the same time Nokia is the cost leader too, as product differentiation is capital intensive while the differences with the cost savings are inevitable in these conditions these two strategies are usually incompatible .Nokia product differentiation strategy has also diminished due to the introduction of Iphone, flip phones, RAZR etc5Nokia is not focusing on the following issues in the rapidly changing economic environment,Technological invention of a new substitute product like IPod, IphoneA foreign governments adverse economic policy affecting the companys productvariegation by high profile organization into the companys existing productsSlowing down in the market growthChange in the habits and tastes of the consumersPotentially damaging demographic changesChanging technology and digital convergence6In this rapidly changing world, Nokia is facing challenging threats on which they need to focus. The biggest threat for Nokia in Europe is the increasing ripen m arket in Western Europe. Almost everyone in Western Europe has a mobile phone and there are a lot of competitors on the market. If Nokia wants to keep their market share it have to keep innovative, keep working on their image and most important they should keep listening to their customers. The danger of mobile phone radiation through wireless electronics is not more a fantasy. For instance, the new way to communicate per internet gains more and more fans7Technological development of mobile phones is an important technological force because the technology in the mobile phone business is constantly innovating and developing which can lead to big chances for Nokia .There is a constant research going on within the mobile phone business to try to develop new gadgets and new systems for mobile phones. Nokia has to be aware of these developments, because when the competitors develop a new gadget that Nokia does not it means that the competitors will have a comparative advantage over Nokia .The technological development of substitutes is important when there will be a new developed substitute, it can mean that people will buy this product instead of Nokia mobile phone and so gross revenue for Nokia will drop along with the profit8According to Nokia due to fast speed internet information technology ,media ,music and mobile communications are converge to one industry.Net books and other computer based products are posing new threats of substitute for Nokia as phones and PCs become more homogenous. The customers are becoming more school due to rapidly changing technological environment and now Nokia can heralds the threats of mighty Microsoft who has more experience and resources as compared to relatively in-experience Nokia which may result in comparative disadvantage for Nokia. Through merger and acquisition Nokia can overcome this threat which still Nokia is not considering. Nokia is financially very strong company, there is need for the company to enter into new ma rkets to achieve new experience and market shares by overcoming the weak rivals. Nokia new possible target can be genus Acer which has 11.9% share in the notebook market (Kwong, 2009)9The advancement of new technologies is also creating new threats in the areas of security. Nokia can provide security by creating sound business practices and careful processes. The companys threat scenarios include as the worst root causes of threatsEmployees who are careless and over-trustingSub-contractors who also work with the companys competitors and implement lax security measuresPoor information security that compromises dataIndustrial espionage by competitors, either alone or with the assistance of state investigation agenciesSocial engineering specifically as a means of industrial espionageSpecific environments in so-called emerging markets which pose new threats to personnel security such as kidnappings and ransom activities and can give rise to large-scale armed robbery of valuable cargoesT he Political-Legal ForcesFinnish lawEuropean lawDomestic laws in each of Nokias foreign marketsInternational Laws health regulationsBecause Nokia is a Finnish company and has its headquarters in Finland, the board of directors has to be run in accordance with The Finnish law. Since Nokia is also an international company, it has to comply with the international laws such European law, International laws are actually a collection of treaties, conventions and agreements between nations .Nokia must also comply with every foreign countrys domestic laws , which it is doing business with laws affect every aspect of Nokias business product safety, consumer protection dealing with competition , packaging and labeling and advertising etcLegislation is useless if it is not enforced. Nokia has to know the legal environment because it constitutes as the rules of the game. At the same time, it must know the political environment because it determines how the laws are enforced and indicates the di rection of new legislation. Health regulations are also important because of danger of mobile phone radiation and the way Nokia has to handle with this threat.The natural ForcesEnvironmental Issues are something that has become more important in the shoemakers last few years. People are becoming more aware of pollution and want companies to do something about that. Nokia should be aware of this growing sense of sentiency for the environment and should change the ways of production and should focus on producing environmental friendly products.The Social-Cultural ForcesThe population is very diverse. People can be divided into different subcultures that have several ways to spend their money .Subcultures could be different age groups ,interest group and immigrants .They have also different attitudes towards mobile communicationTrends in the market10During the last few years, multimedia applications, such as camera, Mp3 player or radio have become trends that reveal the shape of the future and provide many opportunities for new mobile phones. The crucial factors in fad period are features feel , look ,shape ,coolness especially for teenagers. One example of fad is Nokia N-Gage .This is a mobile phone and a game computer as well .It failed because it could not compete with big game device manufacturers such as NintendoConsumer acquire BehaviourThe changes of such personal factors like age, family life cycle or social class and changes of reference groups unquestionably influence the buying behaviour on the whole mobile phone market and corresponding on Nokias target market. Nokia should know this and has to develop solutions for all these life circumstances11Global changes like changes of consumer needs, tastes and preferences, the emergence of new technology or nay new development in the marketing environment could potentially affect the fortunes of brand .Nokia also made a transparent mistake It didnt produce the clamshell- end mobile phones that customers w anted. And the customers jumped ship so that the companys sales Went down .Consequently, Nokia face a loss of $6 billion in equity . Nokia faced a very difficult time particularly in year 2004.There were many drawbacks in Nokia strategies like failure to read market trends and act according to these trends. Also Nokia was not up to the demands of his customers which wants innovation in the designs of Nokia sets.The old days were Nokia classic style dominated the market are not returning and company needs to accept it .Nokia always insist on removing some functions or screwing up the keypad. For customers sometimes it is frustrating to have some phones with Bluetooth support but not having Wireless LAN, mp3 support but no FM, camera but no Mp3 and etc .As a result Nokia has lost customers, average sales prices have move .Therefore Nokia decided to change its policy in developed and emerging markets3.0 Assessment of Implementation of change Issues12Nokia the worlds biggest mobile m anufacturer , had a bad year in 2004.Its shares lost over half their value between march and August-from a high of $23 to a low of $11 on 13 August-its sales declined and its market share, having stabilized around 35 percent for many years , fell to a low of 28.9 per cent. And in April 2004, one of its main rivals Samsung over took Nokia in market capitalization. However, some commentators thought that Nokias decline began even earlier than this. Sales peaked at 30.4bn in 2000 when 128m phones were sold. In 2003 despite selling 179m handsets revenues was 29.5bn .Samsung in contrast was able to achieve higher average selling prices for its photos, even though its volume were lowerAlthough some thought that Nokias problems were partly because it had reached saturation in its main markets as well as facing increased competition, others laid the blame for Nokias problems at the companys strategy of focusing on high volume, lower price sales and ignoring design. The needs of increasingl y fashion-conscious young mobile phone owners were ignored and Nokia was accused of missing the change from brand to style. This is surprising given that Nokia had previously been the pioneer of the handset as a fashion item with choices of colors and styles. But in 2003/2004 Nokia was sticking to its traditional monobloc or candy bar format for its handsets meanwhile his rivals were transport out more innovative modelsA particular problem was demand for folding calm-shell phones , especially in Asia and North America .Motorolas RAZR v3 model , a slim-line design with stylish aluminum shell , was a particular hit with consumers .Nokia has admitted that it failed to anticipate how successful clamshells would be .But other design features were also missing. Cameras , high-quality colour screens and user porthole , that had formerly been streets ahead of the competition , were all less well developed than they needed to be .This meant that previously loyal customers were forced to tu rn to competitions models. I think Nokia just does not seem to have changed its look much over the last 10 yearsNokias design problems happened at the same time as mobile phone service providers were wanting customized handsets as a means of increasing their own brand differentiation .Operator specific handsets are normally locked to save them being used by another operators network thereby attempting to boost customer loyalty as well as security .Operators in Europe and America were contracting with smaller Asians original design manufacturers to provide handsets to their own design specifications .And Vodafone , the worlds largest mobile services provider ,chose to provide its Vodafone live data services on handsets supplied by sharp.Similar problems affected the development of 3G services Japanese and South Korean companies were some years ahead in this technology .Vodafone for one choose Samsung and Sony Ericsson to supply its 3G handsets as a result .And Hutchison Whampoas the re , a new entrant to the 3G market in Europe ,declined to sell Nokias handset because it lacked video-calling capabilities to get the picture customized handsets was actually the result of technological factors .Given Nokias reliance on volume and sale ,it could not make different handsets for individual operators without a reorganization of its value chain of mountains .Until 2005 this was oriented towards large-scale production of relatively undifferentiated handsets .It preferred to hold off adding new features , such as high-quality colours screens or higher-resolution cameras ,until the components were available in large volumes. It also preferred to customize handsets through software .Its series 60 software, which is run on high-end phones is especially configurable, allowing the same computer hardware to support providers various servicesHowever ,the shock appeared to stimulate Nokia into making the necessary changes .It has since moved into operator-focused hardware custo mization despite its preferences for software customization and made the changes to its logistics system .Nokias new modular hardware designs made it easier for the company to customize products faster , and it set a target for 50 percent of its products to have alternative designs such as clamshells ,sliders and swivels by the end of 2005.One of its products the Nokia 6230 was so popular that Nokia was at times unable to meet demand and Nokia became a beehive of experiments. It launched a range of innovative handsets ,the N-series ,which had additional features as well as being phones and its 770 Internet Tablet is a hand-held computer that does not contain a phone at all but supports web-browsing electronic mail and voice-over-internet calls using Google Talk software and Wi-Fi technology .Nokias then CEO Jorma Ollila has since retired directed R D to areas where Nokia had particular strengths for example radio technology and mobile-phone software ,not cachexy it on technologie s that the company could buy it .In 2004 it spent more than $4.8bn on R D of which 60 percent on software .At 12.8 percent of sales Nokia R D ratio was 3 percent higher than Motorolas and about twice that of SonyNokia now the largest Camera Company in the world and convergence means that its phones provide music-playing, video-recording and computing facilities so that its competitors include Apple, Sony, Canon and other consumer-electronics firms .By may 2006 Nokia described as having a renewed spring in its step .Its market share has recovered to 35 percent4.0 Analysis Conclusions13In the environmental analysis, we took into account the different environmental forces which have impact on Nokia. Nokia has a very strong position in the mobile phone market in Europe. It is a strong brand because of their good quality products and powerful image and has just few weaknessesHowever, changes in consumer needs, preferences or too fast development of new technologies, could have negativ e impact on the consumer buying behavior in Nokias segment. Nokia should be prepared for itCurrently Nokia sells its products in over 130 countries. The company divides the market not only into geographical and behavioral qualities of the customers are similar-to better satisfy their needs .Sometimes Nokia has a ravish strategy to keep its customers .Nokia removes some functions in its phone so that customers have the need for more .Moreover after producing new models Nokia sometimes does not focus enough on their positioning through advertising and packaging .Nevertheless, Nokia is still has the one of the best brand value in the world .The customer-based brand equity is also positive , people still prefer Nokia among the others .Customers have many associations with Nokia brand which differentiate it from other competitors .Competition is fierce and many competitors are attacking against Nokia to become the market leader .However ,Nokia has several advantages over its competitors such as economies of scales and innovative high technology .Europe is its home market ,Nokia has good possibilities to succeed and maintain its market leader position also in the future .However it cannot make misjudgments anymore. Now it is aware of the threats. It has to observe and predict what is happening in its environment and be sensitive in listening to its customers and trends