Category: Analysis Essay

The world we live today has really changed compared with the one that man lived some few decades ago as a result of advancement in science and technology. All facets of life ranging from political, economic and social have all changed completely in one way or the other. The world is changing very fast that man is not in a position to adjust his lifestyle according to the changing ways of life that are being invaded through research and innovation day in and day out.

With the introduction of internet and computer era in the 21st century has turned the world into a global village where people one part of the world can share information, ideas and opinions with each other by just clicking on the computer. It has also influenced the form of interaction and association among the people to a large to extend where people can have access to the aspect of cultural diversity which encourages harmony and appreciation. Through the internet, it has also boosted the level of trade and commerce among the nations in the entire world in the sense that it is now possible to purchase goods and services online without having to incur transport cost.

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One of the industries that have been greatly affected by the current introduction of computer and internet is the communication sector that has the mandate to facilitate the process of communication and exchange of ideas among the people. This means the integral role of innovation and invention by man aims at improving his way of living for sustainable economic development. It is in respect to the amazing expression of creativity and innovation exhibited through men and women of integrity all over the global that future and current economic prosperity of the entire universe revolve around the communication sector. This great achievement and realization of the vast potential that comes along with the introduction of technology advancement can only of fundamental benefit to a man if there is another body mandated to nurture and develop the culture of innovativeness to a higher level. The mobile and telecommunication sector steps in to hold this demanding task after realizing the value and profits that came along with the advancement of science and technology. Many mobile companies have been of late been established in different regions of the world with the aim of exhibiting their potential and ability in this new arena in the business industries. They include Motorola, Samsung, Vodafone and Nokia, not an exception. Nokia Corporation is one of the world’s largest mobile and telecommunication facilities provider.

Since its inception in the early 1980s the company has had to wave through the challenges of competition, financial constraints, change in demands and supply, managerial problems among many more until it has attained this memorable event in the mobile and telecommunication industry today. With its strong endowment in competition and innovation potential in the telecommunication sector, it is among the leading mobile phone manufacturers in the world today with a wide ray of mobile types. Nokia also provides other mobile infrastructure facilities that are mainly used in application domain such as telephony, broadband access, and professional radio calls, just to mention but a few.

The success and flourishing of Nokia Corporation as a mobile company can be attributed to its managerial personnel who are carrying the dream and ambitions of this great company to greater heights. The company is also in a position to adopt new technological advancement in its daily operation which provides it with a favourable environment to remain more competitive in the market sector. The company also inculcates the culture of creativity and innovation among its employees and at the same time supports genuine ideas that can help in realization and achievement of company goals. It is in respect to these measures that place Nokia Corporation at a better level than its counterparts in the business sector hence facilitating its economic prosperity. On the other hand with the new emerging trends in the telecommunication sector, Nokia Corporation has streamlined its organizational structure in a calculative manner so that to withstand the pressure that comes along with a change in management. To expand its market share in the global scope Nokia Corporation has for past few decades invested heavily on research that provides vital information concerning the forces of demand and supply and how they influence market trends in the world.

From this intensive research, the company has been able to promote and market its product more by focusing on consumer interest and ability to purchase. This means the company under market segmentation strategy has embarked on manufacturing different ranges of mobile phones and other telecommunication facilities that accommodate all people from all walks of life. Borrowing from this idea it calls for every organization in the business which aspires to attain high economic status to adopt such an effective mechanism and incorporate it with its daily operation. Just like any other kind of business under the sun Nokia Corporation is confounding will compelling forces from within as well as from outside the organization operation that undermines the efforts placed in a position to attain goals and ambitions of the organization. These external forces are grouped under the Macro-level whereas those emanating from within the organization are grouped under the micro-level. It is therefore in respect to this perspective that we wish to discuss the influence of Macro factors on Nokia Corporation and more importantly evaluate their implication on the success of the organization in the future.

Macro-environmental Forces Analysis

Macro environment forces play a crucial role in the success and existence of any business firm. Their existence cannot be undermined at whatever cost because any change associated with these factors will be transmitted directly into the business. On the other hand, the business firm has less control over these forces as it can only formulate new mechanisms to cushion the inflicted impact it.

The following are the main macro-environmental factors that influence the operation of Nokia Corporation: Political, economic, social, technology, demographics and legal factors. Each of these components impacts differently on the daily operation of the business.


In any given nation in the world, there is a form of government that is implicated with a mandate to device a framework of how the nation would be ruled. With its various arms of government such as the legislature, judiciary and executive, the government through the act of parliament enacts laws and policies that aim at upholding the morality of the society. The enacted laws and policies are applicable to all facets of life that even the business community is not an exemption.

The government should provide a favourable environment for investors by ensuring that there are political stability and goodwill of politicians. With the current political instabilities in most parts of the world, the level of foreign investment in these nations has declined drastically for the last few years thus affected the global growth of the economy. There are wrangles and conflicts between the rulers pertaining to matters to do with leadership. Prolonged conflicts and confrontations among the rulers have led to the eruption of tribal wars among the various communities thus contributing substantially to a low rate of economic development. This, in turn, has deterred many investors to invest in such nation and for those who have already invested, they tend to withdraw their capital from such business ventures hence negatively affecting the economy. On the other hand, the government through the act of parliament can formulate and enact laws and policies that aim at encouraging the success of Nokia Corporation. This has been one of the reasons why the Nokia Corporation has prospered economically this way. The government if it wants to encourage the introduction of a new company in a certain region, it should use incentives that will act as a motivating factor to draw more foreign investors to invest in such business ventures. It may decide to introduce tax exemptions to the willing investors so that the company cannot fear to collapse. Furthermore, the government may decide to place new measures that will protect emerging companies from collapsing following stiff competition from the market.

This can be done through monopolization and privatization of these companies. Looking it from another perspective, the government should provide a favourable condition for investment by pumping more resources that aim at encouraging growth and prosperity of business ventures. With the establishment of a new business it would be very difficult for such as a firm to prosperity in the short run because of many challenges that affect businesses at their initially period. It is, therefore, the responsibility of the government to step in and rescue the existence of the business that is in jeopardy. It should extend some financial resources to the firm so that it can be in a position to run its daily operation before it can be independent. The government should assist the business corporation to market its goods and services by formulating laws and policies that uphold fair competition in the market. It should control the number of companies willing to join a certain line of production via imposing a high tax, stringent measures and via interventions that in turn deter them from joining the industry. Improvement of infrastructure is another factor that has a great impact on the existence of any company. With the good form of infrastructure, more investors will be in a position to invest in various business opportunities thus improving the state of the economy of the nation. On the contrarily, poor infrastructure would deter investors from investing since there would fewer income returns hence affect economic development. It is therefore evident that political factor has a great impact on the success of Nokia Corporation in the world. The government has helped by prov