When countries manipulated the interest rates, this had consequences for instance high interest rates depresses business as money in circulation will be small, on the other hand when the rate is lowered more money will be in circulation hence high purchasing power of customer, similarly the company is at a position to borrow more funds to expand the business.
Economy also dictates bargaining power of buyers, and due to price sensitivity, Nokia will be faced by this challenge.
Among the external factors to be discussed in the case of Nokia are; competition, economical forces, legal and regulation forces (political), technology and innovation, social cultures & demographic and globalization.
Despite these external forces, according to Wit and Meyer (2004), organization/firms need to adapt to developments in the market by building on strengths of the resources at their disposal.
I chose Nokia because it is widely known in the entire world and has been in business for a very long period (over a decade) and a perfectly adhere to hierarchy, stability, uniformity, and specialization, specifically designed to enforce control and authority in this throat cutting competitive business world.
Nokia with its headquarters in Keilaniemi, Espoo, founded in 1865 is a Finnish multinational communications corporation.Introduction The assignment is a strategic analysis of Nokia Company, basically what the organization has done or is doing to survive in this very competitive business world.The paper evaluates the external environment that Nokia competes in; it also identifies the core resources and competence of the company and justifies the choice.Globalization According to Harrison, (2005) the free movement of human resources, capital throughout the world posed and still poses positive as well as negative implications to the company.The negative implication such as employee turnover has been addressed by improved job design, efficient and conducive working environment.Economic forces Local, national and/or international economic forces have directly and indirectly impacted on Nokia Company.For instance, 2008, 1990 economic recession lowered the purchasing power of the company’s potential buyers as they tightened their wallet zips and spend their money carefully and on significant things as food, shelter.It is rational for the company to seriously evaluate the benefits and costs of adopting an innovation since adopting it is not always a bed of roses as it can backfire and cause very serious setback to the business.Social/demographic factors Mobile phones, their accessories as well as other services offered by Nokia positively correlated to increase in human population.To counter this stiff competition, Nokia Company developed a research department well equipped with competent personnel’s.As a result, various products and services of high quality and affordable products have been developed.