Nokia is a communications and information technology company included in the Fortune Global 500 ranking and has a rich heritage that can be traced back to the 19th century. During the 1990’s Nokia became the world’s leading mobile phone manufacturer, but the company did not anticipate the significant change that smartphones would bring to the market at the turn of the century. When smartphones rose to popularity Nokia’s market share was significantly reduced and the company entered into a crisis. Stephen Elop was appointed CEO of Nokia in 2010 and after a diagnosis of the company he addressed all the employees with an internal memo know as “Burning Platform.”
Read the “Burning Platform” article below, paying particular attention to the memo portion of the article. Then respond to the following:
- Which elements related with James’ Operations Management definition do you identify within the “Burning Platform” memorandum?
- Which of the five steps within Hill’s framework for Operations Strategy formulation do you recognize?
- What internal and external factors do you observe?
- Comment on the CEO’s use of violent imagery and language (burning platform, death, war) as a motivational tool. What are the pros and cons? Do you feel motivated? Can this approach backfire?