Organizational design involves creating, implementing, monitoring and modifying an organization's structure, processes and procedures. It has three key components - structure, culture and control. Organizational culture is defined by the shared values and norms of its members, expressed through artifacts like physical space, symbols, events and vocabulary. Culture can come from a founder's imprinting, company values and recruitment of people who fit the culture. It may need to change when the environment changes or new leadership changes strategy and structure.
4. Founder Tony Hsieh, (shay) created a culture of making
customers and employees happy which helps drive success.
Acquired by Amazon in 2009 for $1.2B and acts as a separate
business unit.
To achieve the strategic objective, Zappos developed a set of
values and integrated them into the company’s culture. This
culture can provide behavior guidelines once the employees
internalize the culture. How does Zappos deliver WOW to
customers? Zappos has a 365-day no-hassle return policy, free
upgrades to express shipping, and courteous and helpful
customer representatives, all of which help make customers
very happy.
Flexibility…Unlike other online retailers, Zappos stocks
everything it sells in its own warehouses—this is the only way
to get the merchandise as quickly as possible with 100 percent
accuracy to the customer. Strategy, therefore, is as much about
deciding what to do as it is about deciding what not to do.
6
Organizational Design
The process of:
Creating, implementing, monitoring, and modifying the
structure, processes, and procedures of an organization.
Key components:
Structure.
Culture.
Control.
7. An accountant for a large firm may specialize in only one area
(e.g., internal audit), whereas an accountant in a small firm
needs to be more of a generalist and take on many different
things (e.g., internal auditing, plus payroll, accounts receivable,
financial planning, and taxes).
U.S. military can be used as an example here because it has the
Air Force, Army, Navy, and Marines, and all of them have their
own specialties
https://www.nascar.com/video/franchise/monster-energy-nascar-
cup-highlights/no-4-team-setting-new-standard-pit-stops/
10
Formalization
The extent to which employee behavior is guided by rules and
procedures.
Pros:
Ensures consistent and predictable results.
Safety and reliability.
Cons:
Slower decision making.
Reduced innovation.
Hindered customer service.
23. what events are celebrated and highlighted, and how they are
celebrated (Zappos trivia nites, nerf gun battles, foosball,
karaoke).
vocabulary, what stories are told (Nord returning tires, call me
Walt)…Zappos pizza-ordering example in section 11.4)
Artifacts include elements such as the design and layout of
physical space (e.g., cubicles or private offices), symbols (e.g.,
the type of clothing worn by employees), vocabulary, what
stories are told, what events are celebrated and highlighted, and
how they are celebrated (e.g., a formal dinner versus a casual
barbecue when the firm reaches its sales target).
30
Organizational Culture - Artifacts
Physical space (cubicles).
25. celebrated (Zappos trivia nites, nerf gun battles, foosball,
karaoke).
vocabulary, what stories are told (Nord returning tires, call me
Walt)…Zappos pizza-ordering example in section 11.4)
Artifacts include elements such as the design and layout of
physical space (e.g., cubicles or private offices), symbols (e.g.,
the type of clothing worn by employees), vocabulary, what
stories are told, what events are celebrated and highlighted, and
how they are celebrated (e.g., a formal dinner versus a casual
barbecue when the firm reaches its sales target).
31
Where Do Organizational Cultures Come From?
1. Founder imprinting
Founders defined and shaped the culture
33. and industrial products. But its full name reflects its origins:
3M stands for Minnesota Mining and Manufacturing Company.
Over time, 3M has relied on the ROWE framework and has
morphed into a highly science-driven innovation company. At
3M, employees are encouraged to spend 15 percent of their time
on projects of their own choosing. If any of these projects look
promising, 3M provides financing through an internal venture
capital fund and other resources to further develop their
commercial potential. In fact, several of 3M’s flagship products,
including Post-it Notes and Scotch Tape, were the results of
serendipity. To foster continued innovation, moreover, 3M
requires each of its divisions to derive at least 30 percent of
their revenues from products introduced in the past four years.
39
Zappos walking the walk
What would you do if a programming error cost your firm $1.6
million?
Zappos put their money where their “WOW” is.
Zappos accidentally capped the price at $49.95 for all products
sold on its subsidiary site at midnight, and the mistake was not
discovered until 6 a.m.
Consistent with their “WOW” philosophy, Zappos honored all
37. No reproduction or further distribution permitted without the
prior written consent of McGraw Hill.
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Running head: NOKIA TECHNOLOGY COMPANY1
NOKIA TECHNOLOGY COMPANY3
Nokia Technology Company
Student's Name
38. Institutional Affiliation
Course Title
Date
Nokia Technology Company
Nokia Technology Company is one of the oldest and most
renowned mobile manufacturers in the world. Although the
company's performance has slightly been impacted by global
trends and increasing competition from companies such as
Samsung and Apple, it still maintains its position as one of the
world's most iconic mobile phone companies. Nokia
Corporation was established in 1865 in Espoo, Finland
("Nokia," n.d.). The company managed to achieve considerable
growth and expansion over the years due to implementing the
right strategies. As of 2018, the Nokia corporation was
employing approximately 103 000 people sourced from about
100 countries (Kapko, 2021). The company had operations in
130 countries around the world. Nokia also reported annual
sales of around 23 billion pounds.
Nokia technology started as a pulp mill before moving into the
rubber and cable industries. It was not until the 1990s when the
company ventured into large-scale telecommunication
infrastructure (Wang, Hedman, & Tuunainen, 2016). The
company focused on technology development and licensing,
contributing immensely to the mobile telephony sector. Over the
39. years, the company has managed to release different Nokia
phone brands, most of which were revolutionary. In 2014, Nokia
sold its mobile phone business to Microsoft, creating Microsoft
mobile (Wang et al., 2016). The sale of its mobile business
enabled the company to focus more on its telecommunications
infrastructure business and improve the internet of things
technologies (IoT). The company further diversified into other
areas such as virtual reality and digital health (Wang et al.,
2016). Despite exploring new horizons in technology, the
company was still struggling to make profits. Its dwindling
profits forced the company to lay-off hundreds of employees
and closed various operations in different countries. In 2016,
Nokia announced the Nokia brand's return after reviewing the
opportunities existing in the mobile phone industry (Simon,
2016). A licensing arrangement with HMD Global facilitated
the return of the Nokia mobile phone.
The company's success over the years and the ability to
persevere through time can be attributed to its motto and vision.
Nokia's mission statement is to connect people. The company's
vision statement states that Nokia wants to create a new world,
to transform a big planet into a small village. The company's
vision is to create, build, and encourage people from all
countries to communicate with each other to create a w orld
where everybody is connected ("Nokia," n.d.). Nokia states that
its culture is driven forward based on its values such as respect,
40. challenge, achievement, and renewal ("Nokia," n.d.). The
vision, mission, and values serve as an anchor to Nokia and
maintain positive performance even during tough economic
times. Although the company has suffered major setbacks in the
past, it has overcome its challenges and bounces back even
stronger than before.
Some of Nokia's major competitors are Apple, Samsung,
Huawei, Blackberry, Sony mobile, and Palm. Nokia has to
constantly come up with effective competitive strategies to
ensure that it stays in the market and maintain sits competitive
advantage.
Challenges Affecting Nokia
A decline in business in 2020 forced Nokia to lay off more than
6,000 employees which is approximately 6.4% of its workforce.
In 2019, the company had laid off another 5,000 employees
representing approximately 4.6% of its workforce (Kapko,
2021). The company ended 2020 with 92,039 employees after
cutting off approximately 6,283 jobs in the same year. There are
indications that the company will lay off more workers in the
coming years as part of its three year turnaround plan which
was started by CEO Pekka Lundmark (Kapko, 2021). The CEO
also increased pressure on various business units in the
company to grow in their respective segments or face cuts. The
job cuts are consequences of the poor performance posted by the
company in recent years. Much of the company's decline has
41. been attributed to poor leadership that lacked the courage to
make important decisions (Kapko, 2021). The previous
leadership at the company forced various business segments to
come up with technologies under pressure to perform. As a
result, the company could not come up with competitive
innovations to compete with other companies like Samsung and
apple. In a bid to cut operational costs, the company embarked
on a program to reduce its workforce. In 2020, the company
also reduced the size of its executive from 17 to 11 people
(Kapko, 2021). The company further relocated 14,000
employees from corporate functions to its four business groups.
Kapko (2021) states that poor leadership strategies and a lack of
innovation are among the reasons that caused Nokia to lose its
competitive advantage and control of the mobile phone market.
The company needs to attract young and innovative leaders with
a proven track record if it has to bounce back and reclaim its
market share.
The analysis of Nokia's history and recent performance reveals
that it is an important player in the technology industry. The
company needs to come up with strategies that can enable it be
a leader in mobile innovation and other technologies. The
company could also borrow a leaf from what other companies
like Samsung and Apple are doing.
References
Kapko, M. (2021 March 6). Nokia slashed more than 6,000 jobs
43. Because learning changes everything.®
The AFI Strategy Framework
2
Because learning changes everything.®
Learning Objectives
Define globalization, multinational enterprise (MNE), foreign
direct investment (FDI), and global strategy.
Explain why companies compete abroad and evaluate the
advantages and disadvantages of going global.
Apply the CAGE distance framework to guide MNE decisions
on which countries to enter.
61. billion, making it the most valuable in the world.
However, low wages, long hours, and poor working and living
conditions contributed to a spate of suicides at Foxconn,
Apple’s main supplier in China. The Taiwanese company, which
employs more than a million people, manufactures computers,
tablets, smartphones, and other consumer electronics for Apple
and other leading consumer electronics companies. The
backlash against alleged sweatshop conditions in Foxconn
prompted Apple to work with its main supplier to improve
working conditions and wages. Tim Cook, Apple’s CEO, visited
Foxconn in China to personally inspect its manufacturing
facility and workers’ living conditions. Although conditions at
Foxconn have been improving, Apple started to diversify its
supplier base by adding Pegatron, another Taiwanese original
equipment manufacturer (OEM).
21
Disadvantage #3: Loss of Intellectual Property
It can be difficult to protect IP in foreign markets.
Particularly software, movies, and music.
Copyright infringements can occur.
Some countries are known for partnering initially, but then
reverse-engineering capabilities.
66. technology in a joint venture when entering the country.
The 19 European countries in the eurozone not only share the
same currency but also integrate politically to some extent. It
should come as no surprise then that most cross-border trade
between European countries takes place within the EU.
Germany, one of the world’s largest exporters, conducts roughly
75 percent of its cross-border business within the EU.
25
Geographic Distance
More than just physical distance.
Measured by:
Physical size (Canada versus Singapore).
Within-country distances to its borders.
Topography.
Time zones.
Whether the countries are contiguous.
Access to waterways and the ocean.
Infrastructure
Roads, power, and telecommunications.
69. alliances (including licensing, franchising, and joint ventures)
and acquisitions are popular vehicles for entry into foreign
markets. These organizational arrangements were discussed in
detail in previous chapters.
Vz-Vodaphone
28
Cost Reductions vs. Local Responsiveness
Two opposing forces in global competition:
Cost reductions: key competitive weapon.
Local responsiveness: tailoring to specific preferences.
Globalization hypothesis:
Consumer needs and preferences are converging.
Food, music, movies, clothing.
Examples: McDonalds, Coca-Cola, rock music, Greek salad,
Hollywood movies, Levi jeans.
74. manufacturing facilities are in Mexico, India, and China. The
company describes the benefits of its global-standardization
strategy insightfully: “Lenovo organizes its worldwide
operations with the view that a truly global company must be
able to quickly capitalize on new ideas and opportunities from
anywhere. By forgoing a traditional headquarters model and
focusing on centers of excellence around the world, Lenovo
makes the maximum use of its resources to create the best
products in the most efficient and effective way possible.”
33
Transnational Strategy
High-cost reductions / high-local responsiveness:
“Think globally, act locally.”
Best practices, ideas, and innovations used everywhere.
Used by multinational enterprises that pursue a blue ocean
strategy.
Difficult to implement:
Duplication of efforts.
Organizational complexity.
80. air conditioners. In contrast to the Japanese, Finns have a sparse
population living in a more remote countryside. A lack of
landlines for telephone service has resulted in the Finnish
demand for high-quality wireless services, combined with
reliable handsets (and long-life batteries) that can be operated
in remote, often hostile, environments. Cell phones have long
been a necessity for survival in rural areas of Finland. This
situation enabled Nokia to become an early leader in cell
phones.
39
Competitive Intensity in a Focal Industry
Competitive environments lead to better performance.
Example: German car industry:
Fierce domestic competition,
Demanding customers,
Results in top-notch engineering.
97. that transforms into a business opportunity.
What does this sound like?
Starbucks had the vet program 25k hires, refugee 10k hires,
youth 10k hires. Rust proof plants for farmers
GE, for example, has strengthened its competitiveness by
creating a profitable business with its “green” Ecomagination
initiative. Ecomagination is GE’s strategic initiative to provide
cleaner and more efficient sources of energy, provide abundant
sources of clean water anywhere in the world, and reduce
emissions. Jeffrey Immelt, GE’s former CEO, would often say,
“Green is green,” meaning that addressing ecological needs
offers the potential of gaining and sustaining a competitive
advantage for GE.
12
Reconnecting Economic and Societal Needs
Reconceiving products and markets. Expand the customer base
to bring in nonconsumers, (the largest and poorest groups).
Companies can meet customer needs while better serving
society, within existing markets, accessing new ones, or
lowering costs through innovation
113. aligning the interests of principals and agents. They enable
closer monitoring and controlling, as well as provide incentives
to align interests of principals and agents. An industry has
sprung up around assessing the effectiveness of corporate
governance in individual firms. Research outfits, such as GMI
Ratings, provide independent corporate governance ratings. The
ratings from these external watchdog organizations inform a
wide range of stakeholders, including investors, insurers,
auditors, regulators, and others.
27
Ethics Scandals
28
122. prior written consent of McGraw Hill.
Because learning changes everything.®
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The Paradox of Business Ethics:
Nailing Jello to a Wall
or Just Plain Common Sense?
36
Ethics on campus
“Pressure to succeed leading more students to cheat”
“Social Deviance Among Students”
“3 ways cheaters have scammed the college admissions game”
“86 percent of college students say they've cheated”
“Why Paying Bribes to Get Your Child Into College Is a Crime”
https://www.10tv.com/article/pressure-succeed-leading-more-
123. students-cheat
37
Midterms 2017 Spring-Seattle Univ
Two classes of 4890
What is the purpose of a midterm?
To determine how the class is tracking on the lessons and to
provide feedback to the teacher that they are able to correctly
communicate the information
Canvas - Decided to use the technology
None of the other teachers were using this tool, hmmmm
38
Exam results
Scores came in and they were awesome. Some had perfect
scores. (I am a great teacher!)
I started re-reading the answers and discovered things were not
looking correct in the answers.
124. Students using words like thus, therefore, and hence. Not words
I found in their other course work.
Some of the answers were verbatim to the Power point and
textbooks, including punctuation and fonts
Reached out to Canvas and learned you can activate “Quiz
logs”.
Verified students were leaving Canvas numerous times.
Validated students were cutting and pasting answers directly
from the textbook and other sources via the 7 sec screen shots
views
to see when students were leaving Canvas, (why would you
need to leave Canvas?). This showed that people were leaving
the exam numerous times. I was also able to verify that people
were cutting and pasting answers directly from the textbook and
other sources via the 7 sec screen shots views, (apparently some
people can type 60 words a minute, but…)
39
Response
Share findings with Class
Written spot quiz, (5 questions)
125. End class
a. Grade quizzes and compared to mid-term
b. Performed forensics on who/what/how
c. Discovered 35% of each class was cheating
d. Get pissed
Discuss with Dept head
- Cheating is apparently common, who knew? Rossen reports
Rethink my desire to teach
No one was aware that Canvas has the quiz log feature, so that
was eye-opening.
I then performed a written spot quiz of 5 questions to see how
they compared with the Canvas results. I dismissed the class so
I could grade them immediately. The spot quiz results were not
the same as Canvas exam for about 35% of the class.
I spent a lot of time on the validation.
https://www.today.com/video/rossen-reports-underground-
world-of-college-cheating-31797315879
126. At this point I was feeling very depressed and disillusioned.
Oh, this happened in both Spr classes.
40
Questions
Was there any value to my midterm feedback?
How important are grades to these students?
Is it more important to learn stuff than get the grade?
Are we creating a nation of cheaters?
What is the impact on society?, (Is this the new “sign of
times”?)
If this is so prevalent, is Seattle U part of the problem?
How damaging is groupthink?
127. It is more important to me that you are getting the information
than getting the grades. I believe I am allowing you the
opportunity to get a good grade, but now I am worried about
what type of people are graduating into this world.
What are you going to be doing in your careers? Look, the real
world is not fair, but if we are grooming a society of cheaters
and unethical people, where will that lead us? Some of you will
succeed as cheaters, yes. Some of you have grown up with an
unethical culture and those are the life lessons you have
accepted as normal. You believe it is OK. You pay people to
write your papers, you use pirated textbooks and the school
turns a blind eye, why? Cuz they want your money…
41
Seattle U Academic Integrity Policy
A student found to have violated the Academic Integrity Policy
shall be subject to penalties imposed by the faculty member
reporting the violation and any additional penalties that may be
imposed by the dean or the provost. Penalties include:
No class credit
128. Reprimand
Probation
Suspension
Expulsion
Denial of Recommendation
Options for Joe?
Let everything ride. (This allows the cheaters to succeed at the
expense of the students who did their own work).
Ask for confessions and provide immunity, (0 points for
midterm vs. failing class)
Throw the whole thing out and move the points to the final.
Redo the midterm in handwritten form
Retake on Canvas with observers, no one sits in the back. (How
would that make you feel?)
The only person who’s test results I was sure were accurate is
the student who took the test in the proctor center.
129. 43
Options for Joe?
Let everything ride. (This allows the cheaters to succeed at the
expense of the students who did their own work).
Ask for confessions and provide immunity, (0 points for
midterm vs. failing class)
Throw the whole thing out and move the points to the final.
Redo the midterm in handwritten form
Retake on Canvas with observers, no one sits in the back. (How
would that make you feel?)
I had spent too much time doing detective work and we needed
to move forward.
44
130. Results
28 Students from both classes “confessed” and apologized.
Phone calls
Meetings
We wiped the slate clean and moved on, (0 was given as the
grade).
Groupthink was a big factor in “why?” Students saw others
cheating and didn’t want to be penalized for doing their own
work.
Student reaction:
Some were mad at the cheaters who caused all this chaos
Some got away with it, (jerks will always be jerks).
Most realized it as a teachable moment because this occurred
during Ethics Week
Trust was not an issue moving forward, but the final was on
paper =)
I was thoroughly heartened by the student reaction. It
impressed me, as the meetings with tears and smiles showed
they truly cared. “You did not deserve this”
45
131. Business Ethics in a Nutshell
“The really creative part of business ethics is discovering ways
to do what is morally right and socially responsible without
ruining your career and company.”
Joanne B. Ciulla, Business Ethics as Moral Imagination in
Business Ethics: The State of the Art
Vehicles
Expenses
Theft
Winning Business
The continual saga of well-paid people who make poor
choices…and lose their jobs.
132. The continual saga of well paid people who make poor choices.
Cars, (Sheppard, Brazille, Hicks, Carozza, Cross)
Expenses, (Eccard, Spriggs)
Stealing, (Dumaines, Hester)
Winning Business, (Dreamworks, UCSF/Karl)
So due to a few bad apples, everyone gets punished. Company
cars, corporate credit cards, customer entertainment---all lost
due to the stupidity of selfish employees. Unethical behavior
override ethical
47
5 Simple Rules for Business Ethics
Thomas Hoolihan
What would your Mother say? (or Google, YouTube or the NY
Times)
Tell the Truth – its Easier to Remember
It’s not the Crime – it’s the Cover-up
Be Nice and Respect Others, (sexual harassment,
discrimination)
133. Don’t be a Whore, (what is your price?)
Story/Joke Everyone would agree to do anything for money, if
the price was high enough. `Surely not, she said.' `Oh yes,' he
said. `Well, I wouldn't,' she said. `Oh yes you would,' he said.
`For instance,' he said, `would you sleep with me for... for a
million pounds?' `Well,' she said, `maybe for a million I would,
yes.' `Would you do it for ten shillings?' said Bernard Shaw.
`Certainly not!' said the woman `What do you take me for? A
prostitute?' `We've established that already,' said Bernard Shaw.
`We're just trying to fix your price now!' “
The bottom line is “you aren’t that smart, most everyone gets
caught”
48
There are a few things you own in life:
your choices…and the consequences that come about from those
choices
134. your attitude…on how you deal with the challenges thrown at
you in life
your integrity… is who you are, the person you present to the
world.
49
Ethics Exercise
Scenario: You see someone in the class remove another
student’s wallet from their backpack and put it into their own.
1. Do you report it to professor?
2. What it is one of your friends, do you
report it?
136. 1
The AFI Strategy Framework
2
Because learning changes everything.®
Learning Objectives
Define corporate strategy and describe the three dimensions
along which it is assessed.
Describe the two types of vertical integration along the industry
value chain: backward and forward vertical integration.
Identify and evaluate benefits and risks of vertical integration.
Describe and evaluate different types of corporate
diversification.
Apply the core competence-market matrix to derive different
138. globally in terms of different geographies beyond the United
States. In short, Bezos determined where Amazon competes
geographically (question 3).
4
Amazon’s Corporate Strategy
Originally was an online book seller:
Started in a garage in a Seattle suburb.
Then entered strategic alliances to expand products offered.
Is now a widely diversified technology company.
Amazon has diversified:
Prime Air uses drones to drop off packages.
Amazon Campus, co-branded University websites.
Electronics such as Echo, Alexa.
Continues to innovate:
In a competitive battle with Apple, Facebook, Alphabet,
Walmart, and Alibaba.
2017 acquisition of Whole Foods.
Streaming content.
Amazon Web Services.
147. costs, Ex: Short term contracts, (somewhat risky as there is no
buy-in for long term performance), Long-term contacts,
(franchising or licensing) and equity alliances or joint ventures,
(construction projects)
Parent–subsidiary relationship: Most integrated alternative,
Parent companies have command and control, Ex: GM owns
Opel and Vauxhall in Europe
13
Vertical Integration
The ownership of inputs or distribution channels.
“What percentage of a firm’s sales is generated within the
firm’s boundaries?”
Backward Vertical Integration:
Owning inputs of the value chain.
Forward Vertical Integration:
Owning activities closer to the customer.
------------------------------------------------------------
Full Vertical Integration:
Owns forests, mills, and distribution to retailers