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Case Study: Box 1.1: Taking big decisions at Nokia Stephen Elop, who joined Nokia as
President and CEO in September 2010 from the senior staff of Microsoft is faced with a
significant amount of uncertainty and ambiguity in determining the future strategy of the
company. With a rapidly declining market share in developed markets (where Google's Android
and Apples iPhone have heralded the invasion of Smartphones) and a weakening competitive
position in emerging markets (such as India), the decisions he is taking are significant for the
survival of the organisation. In February 2011, he issued his famous "burning platform" memo
and canvassed 3 questions to all Nokia employees: The 'burning memo' document presented a
clear and simple analogy for Nokia employees. Wr. Elop subsequently announced a strategic
decision to create a joint venture with Microsoft and adopt their Windows operating system to
power their new smartphones. It offers both leveraged branding for Microsoft and Nokia in both
developed and emerging markets tactically but moreover still requires Nokia to make the
operational decision of maintaining their support for their in-house Symbian and Meego
platforms, to finance the transition of the company. A large challenge given the extensive history
of organic and in-house technological development and the corporate culture this has developed.
Consider these questions for discussion and further research:

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  • 1. Case Study: Box 1.1: Taking big decisions at Nokia Stephen Elop, who joined Nokia as President and CEO in September 2010 from the senior staff of Microsoft is faced with a significant amount of uncertainty and ambiguity in determining the future strategy of the company. With a rapidly declining market share in developed markets (where Google's Android and Apples iPhone have heralded the invasion of Smartphones) and a weakening competitive position in emerging markets (such as India), the decisions he is taking are significant for the survival of the organisation. In February 2011, he issued his famous "burning platform" memo and canvassed 3 questions to all Nokia employees: The 'burning memo' document presented a clear and simple analogy for Nokia employees. Wr. Elop subsequently announced a strategic decision to create a joint venture with Microsoft and adopt their Windows operating system to power their new smartphones. It offers both leveraged branding for Microsoft and Nokia in both developed and emerging markets tactically but moreover still requires Nokia to make the operational decision of maintaining their support for their in-house Symbian and Meego platforms, to finance the transition of the company. A large challenge given the extensive history of organic and in-house technological development and the corporate culture this has developed. Consider these questions for discussion and further research: