Economics and Changes Essay

Words: 1289
Pages: 6

Nokia not so Mobile?
Write a brief account of how different elements of the temporal and PEST environments interact to influence the situation described in the case.
Change is unavoidable in the existence of an organization. Nowadays, most of the organizations in the business world are facing changing business environment. There is no way to avoid either change or die. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labor market environments. The case in this assignment is Nokia, the Finnish company, faced problem because of changing customer tastes, new technology and stronger rivals.
In 1865, Fredrik Idestam established a paper mill on
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The understanding of social change can benefit for business to the future market situation. In the case of Nokia, there are changes in buyers in terms of their needs, liking –disliking and etc. These changes can lead the organizations to bring their products to meet buyer’s requirement.
Technological factors
There are many changes in technology in the organizational environment so organizations have to establish new equilibrium and structure to adopt the new technology.Technological changes have become particularly significant factors in modern communication technologies. The creation of databases and electronic communications provide information to business for improvement in service and cost reduction. In the case, Nokia’s shares have declined due to higher quality and technical specifications of competitors like Motorola and LG of South Korea. Technology is essential for competitive advantage in globalization. So organization needs to find a new way in technology to communicate with customers and improve the situation.
Management must study these environment factors for a continual and dynamic relationship. This understanding can be benefit for the management to make effective managerial decisions for the future.

Question 2
Consider how you could use multiple-cause diagrams to picture the multiple and interacting causes that bring pressure for