Microsoft’s strategic alliance with Nokia

Please check a clear structure and instructions in attachment files, including case study and relevant theories, requirement and format.

Assignment guidance notes
Because the case study for the assignment focuses on a very specific strategic situation, namely, Microsoft?s alliance with Nokia, you may find it a little challenging if you try to adhere strictly to the format shown in the course handbook. The nature of the case means that you are not required to undertake a full strategic appraisal of onespecific company as indicated in the handbook; rather you can structure your assignment around a series of questions directly based on the case study. These questions are detailed for you in the suggested structure below. Although you will not be conducting a full strategic appraisal for one specific company, you will still be applying many of the models as discussed in class. Also, we are providing some additional information for you. The following details relate to issues regarding the operation of the alliance two years after it came into effect:
? The strategic alliance between Microsoft and Nokia has been in effect now for 2 years, and the results have been mixed, to say the least. In 2012, Samsung surpassed Nokia as the number one seller of mobile phones in the world.
? More disturbing still, of the 228m smartphones shipped in the last quarter of 2012, more than 90% of them were either an Apple iPhone or a device that ran on Google?s Android operating system. Overall, Google is by far the most dominant, with about a 70% share of the smartphone market.
? As if the Microsoft-Nokia alliance wasn?t having enough problems, Mozilla, a non-profit organization best known for its Firefox web browser, announced plans to start offering a smartphone operating system as well.
? While its flagship product, the Lumia Windows smartphone, has been fairly well received, Nokia is still having problems competing at the top end of the smartphone market, a market in which it was the leader as recently as 2007.
? Nokia is hoping that its Windows based Lumia line of smartphones will be a hit with businesses, many of which are already dependent upon Microsoft Windows and e-mail services in their operations. In an effort to further promote this perceived advantage, Microsoft has designed all new Windows devices, whether they be desk top, lap top, or hand held, to have the same appearance, namely ?tiles? that are touch activated.
? It remains to be seen if this standardized design will pay off in increased market share for the Microsoft-Nokia alliance. As for Mr. Elop, the head of Nokia, he says he has no plans of ending the alliance anytime soon.
THE PURPOSE OF THE ASSIGNMENT
You will note from the points above that the alliance is experiencing a number of challenges. In the first part of the assignment (questions 1-4) we want you to begin by thinking back a few years and discussing what, in your opinion, led the two companies to form the alliance in the first place. In the second part of the assignment (questions 5-7) we want you to discuss oneof the following:
A. What other options could Microsoft and Nokia have selected instead of the strategic alliance? (select at least one option for each company and no more than four overall)
B. Considering the challenges described in the box above, what strategic options could the alliance now take in order to turn the situation around and become successful?(select at least two options for the alliance and no more than four overall)

THE STRUCTURE OF THE ASSIGNMENT
The assignment should be structured using the following questions as your major headings:
Q1. Prior to making the decision to form the alliance, eachof the companies would have conducted an external analysis of the smartphone industry. What external factors impact the industry and what are the key opportunities and threats?
Your answer to this question should be a critical discussion based on key strategic models that you have developed and should conclude with a clear statement of the opportunities and threats. The models required are:
? PESTEL
? FIVE FORCES
? INDUSTRY LIFE-CYCLE
It is important that you provide a comprehensive analysis of the smartphone industry, identifying the major players and their products, and a brief discussion of their relative technical advantages and disadvantages. Furthermore, you should provide an analysis of changes occurring in the industry and industry key success factors.
Much of your information for the models and analysis can be drawn directly from the case. However, you may need to undertake some additional research to aid you in constructing and populating your models.
Q2.Prior to making the decision to form the alliance, eachof the companies would also have analysed the situation within their respective organisations. In your opinion, how well-positioned were each of the companies in order to capitalise on the opportunities and minimise the threats?
Your answer to this question should be a critical discussion based on key strategic models that you have developed and should conclude with a clear statement of the strengths and weaknesses for each organisation. The models required are:
? COMPETENCY FRAMEWORK (one for each organisation)
? VRIN FRAMEWORK (one for each organisation)
Your analysis and development of the models can involve some additional research.

Q3.Based on your analysis in the previous two sections, what, in your opinion, are the issues and challenges facing each organisation in connection with competing in the smartphone industry?
This can be a relatively succinct section in which you clearly articulate the issues and challenges for each company in relation to competing in the smartphone industry.
Please remember that at this point you are highlighting the company situations prior to the decision to form the alliance.
Q4.As you know, in order to be able to compete more effectively in the smartphone industry, the two organisations formed a strategic alliance. In your opinion, what was the logic behind the strategic alliance between Microsoft and Nokia and what steps ought the CEOs of both companies have considered to ensure that their arrangement was successful?
When answering the first part of this question, you need to discuss why you believe the decision was taken. You need to consider questions such as: why did they need each other? What did they hope to achieve from combining resources and expertise? What were some of the anticipated benefits?
When answering the second part of the question, you are focusing on the alliance itself as a method for pursuing the strategic objectives; so, you need to concentrate on the internal issues relating to success. When two different organisations come together, there are, naturally, a range of issues to consider regarding how the two companies will work together in practice.For example, think about objective-setting, motivation, communication and team work, culture and management issues.What problems might these factors present and how can they be addressed by the respective CEOs?
The second part of the question allows you to be a little creative and develop your own logical arguments. However, to help and guide you, you may like to review the points about strategic alliances in the course textbook: ?Fundamentals of Strategy?. Pages 218 ? 225 (particularly the points made on 223 ? 225). You may also like to undertake some additional research regarding internal success factors for strategic alliances.

THE SECOND PART OF THIS ASSIGNMENT NOW FOCUSES ON OPTION GENERATION AND EVALUATION. AT THIS POINT YOU CAN NOW SELECT BETWEEN OPTION A OR B AS DESCRIBED ON PAGES 1AND 2 ABOVE.
SO, QUESTION 5 CAN BE EITHER:

Q5 (A): What other options could Microsoft and Nokia have selected instead of the strategic alliance? (Select at least one option for each company and no more than four overall)
OR
Q5 (B): Considering the challenges the alliance is facing (described in the box on page one of the assignment guidance notes), what strategic options could the alliance now take in order to turn the situation around and become successful? (Select at least two options for the alliance and no more than four overall)
Whether you select Q5 (A) or Q5 (B), you need to generate your options using an appropriate model. You should use either of the following (or both if you wish):
? THE ANSOFF MATRIX
? THE TOWS MATRIX
In this section make sure that you clearly sub-head each of your chosen options. Your discussion should include a clear description of each option and some justification for the choice made (if you have chosen Q5 (A), ensure you have a clear major heading for each company).
.
Q6.With regard to the options outlined in Q5 above, which one would you recommend as the most appropriate for implementation?
To answer this question, you need first to evaluate each of your chosen options using the following framework:
? THE SFA FRAMEWORK
Begin by describing the SFA(Suitability, Feasibility and Acceptability) model. Explain what the evaluation criteria mean. Also explain your ranking criteria. For example, if you?re assessing suitability on a scale between 1 and 5, what does each number on the scale mean? (For example: weak, neutral or strong).
Next produce an EVALUATION AND RANKING TABLE(as shown in class).
Then discuss your evaluation of each of the 2-4 options, explaining to what degree they meet the selected criteria. In other words, provide some analytical justification for the rankings you award.
Finish with a clear statement of your one favoured option (if you have chosen Q5 (A), you need to apply the above framework to each company).

Q7.With regard to the option selected above, do you believe that it will create real sustainable competitive advantage? If so, please explain the reasons for your answer. Also, what factors are critical to being able to successfully implement this strategic option?
When answering the second part of this question, consider the internal capabilities (resources and competencies) required for successful implementation. When discussing resources, what specific types are required (for example, physical, financial, human and intangible)?
(If you have chosen Q5 (A), you need to apply the above elements to each company).

GENERAL POINTS TO REMEMBER:
A. You don?t require an introduction or a conclusion for this assignment; just structure the report around the eight questions; these are your major headings and should be typed in bold
B. Within each of the major headed sections you can create whatever sub-headings you feel are appropriate
C. Aim to stay within the required word count for the main text of the assignment (your framed models are not included in the word count)
D. Ensure that your discussion provides critical analysis not just descriptive narrative
E. Although you are not required to make financial calculations, some analysis of the financial data provided in the case should be incorporated
F. Give careful consideration to the presentation of your assignment
G. Reference all external sources used and ensure that you are accurate (both in-text and in the list of references)
H. Be careful with spelling and grammar
I. Proof-read your final work
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