Approaches to Operational Strategy and Its Incorporation in Nokia Corporation - Essay Example

?Project Management Table of Contents Approaches to Operational Strategy and its Incorporation in Nokia Corporation 3 3 2. Tim Hortons’ Strategic Approach of Opening Franchises in the UK 6 2.1 Process and Product Design for Tim Hortons to Operate in the UK Market 6 2.2. Impact of Strategic Performance Objectives on Process Design Objectives along with Performance 8 8 References 10 1. Approaches to Operational Strategy and its Incorporation in Nokia Corporation Owing to the dynamic changes in demands amid the modern day customers, companies all around the world are compelled to alter their operational strategies in accordance with the changing needs of the customers. In this regard, it has been observed that Nokia Corporation is one of the renowned companies, which has recently undergone a change in its operational processes in order to remain abreast with the changing environment of the market. The company has undergone a redesigning process in its operations to cope up with the changing needs of the customers as well as the markets all over the world. The revised operational strategy of the company includes the strategic alliance of it with Microsoft to come up with different ranges of products in the market. This alliance enables the company to deliver innovative products and enhance its geographical reach along with product identity. With this strategy, the company has the desire to increase its sales by a considerable margin. This change was much needed for the company as the nature of the market was constantly changing and there was a danger that the preferences of the customers might get switched to another brand. This approach of the company correlates with the operational purview where a company generally changes its operational strategy in accordance with the needs of the current business environment. This approach is termed as operational strategy approach of market requirement (Nokia, 2011; Slack & Nigel, 2009). Furthermore, the operational strategy of the company has witnessed significant changes in the recent years with the inception of the new leadership team in the operations. It has been observed that the new team of the company has acquired considerable knowledge and is competent to deal with the dynamic nature of today’s business environment. The team is also viewed to have utmost commitment towards the operational goals of the organisation. With the establishment of a new team, the company i.e. Nokia will be able to improve its decision making perspective as it is directly connected with the performance of the organisation. Furthermore, the new team of the company will also facilitate to enhance the marketing operations or activities of the products which were lacking in the previous operating strategy of the company. In precise, it can be said that the new team of the organisation, which is a part of the operational strategy, will have its maximum focus on speed as well as accountability that would ultimately enable to deliver positive results. It would be vital to mention in this regard that the company has appointed a new face for every section of its operations from top to bottom and each one of them will have their specific targets that need to be fulfilled. This approach of the company correlates with the top-down operational strategy. In such strategy, companies experience a change from top to bottom in its operational conduct (Nokia, 2011; Pearson Education, 2010; Slack & Nigel, 2009). From the overall analysis of the strategy of Nokia Corporation, it has been learnt that the company follows two operational approaches which entail the current market requirement approach as well as the top-down approach. However, there are two more operational strategies that can be incorporated by the organisation in its operation. These two approaches will comprise bottom-up approach and strategy based on resources of organisation. In the bottom-up approach, a company such as Nokia would experience a change in strategy from bottom to top by taking into consideration the views and the competencies of all the people who fall within this purview. This operational strategy can be quite beneficial for Nokia as it seeks the involvement of all the people associated with the company which further encourages them to work towards the betterment of the business. Apart from this, another approach which is based on the presence of resources with the company will allow Nokia to develop its operational strategy with reference to its competencies and strengths. From an overall perspective, it has been learnt that with the change in time and alterations in market demand, the operational processes of business activities for various companies are also inclined to change. The inevitable dynamic changes in the context of the modern day market scenario force the companies to alter their strategies for better functioning and ensuring effectiveness in their performance. Altogether, there are four approaches to operational strategy which comprise top-down strategy, bottom-up strategy, operations or resources led strategy and market-led strategy (Cengage Learning, 2013). All these strategies can not only enable an organisation such as Nokia to alleviate the prevailing dynamic market constraints by a significant extent but can enable it attain decisive competitive advantages as well (Nokia, 2011; Pearson Education, 2010; Slack & Nigel, 2009). Figure: The Four Approaches to Operations Strategy (Cengage Learning, 2013) 2. Tim Hortons’ Strategic Approach of Opening Franchises in the UK 2.1 Process and Product Design for Tim Hortons to Operate in the UK Market Tim Hortons is a Canadian fast-food chain that operates with more than 3000 stores worldwide. The company is well known for its effective functioning all over the world which is accompanied by the deliverance of high quality products and services to the customers (Tim Hortons, 2012). The company has undertaken a planning of opening franchises of the same in the United Kingdom and increasing its market share. However, in this regard, it will need to change its usual products’ designs and services along with revising them in accordance with the needs of the customers belonging to the particular place i.e. United Kingdom. The first aspect that the company should consider in this regard is to analyse the present market condition of the United Kingdom. This will provide a brief idea to the company regarding the nature of the market which includes competition from the rival companies, their pricing strategies as well as the characteristics of the customers among others. This will enable the company to take the next step in accordance with the nature of market condition. In the subsequent step, the company will need to come up with the design brief of the product which will be based on the results of the research conducted. In this stage, the company will need to consider their products’ identity, the preferences of the customers in the United Kingdom as well as the impact of change in the designs of the products to the organisation. In this context, it is worth mentioning that the products of the company sold all over the world are popular for their quality. This aspect should be kept in mind while designing the brief structure of the products and process design. Furthermore, this step will also be quite vital for the company as it will facilitate to lay the foundation for the entire process of product design of Tim Hortons (Magrab & et. al., 2009; Seider & et. al., 2009). In the subsequent stage, the company will need to compare the product design with the needs of the customers in the United Kingdom, as it is important that the two aspects must coincide and move parallel to each other. This will ensure a successful product design process for the company in order to operate effectively in the competitive market of the United Kingdom. Furthermore, the company will need to test the entire process that has been proposed for the design of the products in order to ascertain utmost effectiveness. After this step only, the entire designing process will be cleared and will get generated practically. In the following stage, the company will need to execute the planned activities structured with regard to the designing of the product. This step also can be viewed as the manufacturing process. After the products are being produced, the company i.e. Tim Hortons will further need to test the manufactured items such as doughnut to ensure that they fulfil the demands and the needs of the customers in the market of the United Kingdom (Hsiao & Chou, 2004). After this stage of the process, the company will need to sale the products to the market of the United Kingdom and acquire the pertinent feedbacks of the customers so that all the limitations in the products can be rectified immediately. Through similar sort of processes, the company can also enhance or design its services that it will provide to the customers in its operations in the United Kingdom. Hence, it can be concluded that in order to design its products to efficiently operate in the United Kingdom, Tim Hortons will need to implement the recommended process judiciously. This approach can certainly result in commendable long-term success for the company i.e. Tim Hortons (Magrab & et. al., 2009; Seider & et. al., 2009). 2.2. Impact of Strategic Performance Objectives on Process Design Objectives along with Performance Strategies comprise the planned steps taken by businesses or companies in order to ensure better performance. There are certain performance objectives that are developed from the strategic goals of the organisation. These are also considered as strategic performance objectives of the organisation. It has been learnt that these objectives clearly state about what a concerned member in the organisation should do in order to accomplish the set goals. In similar context, Tim Hortons also has certain specific strategic performance goals and has some expectations from its employees and products with regard to fulfilling the targets of the organisation. It has been further analysed that strategic performance objectives of any organisation have certain impacts on the process design objectives as well as performances. It will be vital to mention that the strategic goals and objectives of Tim Hortons will also have significant impacts on the new product and process design of the company in the UK market. It has been noted that the organisation has certain positive elements that has held its performance together in different parts of the world where it operates. The company is well known for providing customers with products and services that they desire. In this regard, the company would need to adapt in accordance with the needs and the preferences of the customers of the place. However, the strategic goals and performance objectives of the organisation affects the flow of the process of its product and services design when it intends to operate in different countries. At times, in order to fulfil the strategic goals of the organisation, it has to compromise with process and product design as well as its performance. Due to the reason that revising the design of the product design of Tim Hortons affects the identity of its products which further has an impact on the accomplishment of the strategic goals of the company. Hence, it is determined that the strategic goals and performance objectives of the organisation can create certain threats upon the flow as well as the performance of process and product design (Tiem & et. al., 2012; Chai, 2009). References Cengage Learning, 2013. Operations, Strategy and Operations Strategy. Home. [Online] Available at: http://cws.cengage.co.uk/barnes/students/sample_ch/ch2.pdf [Accessed June 12, 2013]. Chai, N., 2009. Sustainability Performance Evaluation System in Government: A Balanced Scorecard Approach towards Sustainable Development. Springer. Hsiao, S-W. & Chou, J-R., 2004. A Creativity-Based Design Process for Innovative Product Design. International Journal of Industrial Ergonomics, Vol. 34, pp. 421–443. Magrab, E. D. & et. al., 2009. Integrated Product and Process Design and Development: The Product Realization Process, Second Edition. CRC Press. Nokia, 2011. Nokia Outlines New Strategy, Introduces New Leadership, Operational Structure. Press Release. [Online] Available at: http://press.nokia.com/2011/02/11/nokia-outlines-new-strategy-introduces-new-leadership-operational-structure/ [Accessed June 12, 2013]. Pearson Education, 2010. Operations Strategy. Home. [Online] Available at: http://wps.pearsoned.co.uk/ema_uk_he_slack_opsman_4/17/4472/1144851.cw/ [Accessed June 12, 2013]. Slack, N. & Nigel, S., 2009. Operations Strategy, 2/E. Pearson Education India. Seider, W. D. & et. al., 2009. Product & Process Design Principles: Synthesis, Analysis And Evaluation, 2nd Ed (With Cd). John Wiley & Sons. Tiem, D. V. & et. al., 2012. Fundamentals of Performance Improvement: A Guide to Improving People, Process, and Performance. John Wiley & Sons. Tim Hortons, 2012. About Us. Home. [Online] Available at: http://www.timhortons.com/ca/en/about/index.html [Accessed June 12, 2013]. Read More