Microsoft Acquisition of Nokia: A marriage made in heaven or hell.

Submitted by: Pragya Priyadarshini (IIM, Ranchi) Sameer Mirani (BIMTECH)

NOKIA AND MICROSOFT

VISION: Nokias vision is a world where everyone can be connected VISION: Global diversity and inclusion is an integral and inherent part of our culture, fuelling our business growth while allowing us to attract, develop, and retain this best talent, to be more innovative in the products and services we develop, in the way we solve problems, and in the way we serve the needs of an increasingly global and diverse customer and partner base.

NOKIA VALUES
Achieving

together expands our old value of Achievement, reflecting that we increasingly work in networks. Very Human builds on our previous value of Respect. Engaging You all our stakeholders, not just customers.

MICROSOFT VALUES
Integrity,

Honesty,
Openness, Personal

excellence, Constructive self-criticism, Continual self-improvement, and Mutual respect.

SIMILARITIES IN CULTURE
CUSTOMER

SATISFACTION: Both companies dwell on the customer satisfaction as is evident from their Vision Statements. PRIVACY PROTECTION: Both companies believe in the privacy protection of their users identities and data.

CULTURAL GAP USING HOFSTEDE ANALYSIS

NOKIA MICROSOFT

Almost 40 % females
Less Power distance due to shorter hierarchy Could not envision changing market scenario

Lesser Female population (24%)

Greater Power distance due to wider hierarchy Has envisioned changing market and the ability to combine hardware and software Bureaucratic culture exists and innovation takes a backseat. Participative Culture not practiced. No collaborative teams encouraged. American Company- Americans are stereotypically confident and outgoing

Innovative Culture is fostered Participative Culture is inculcated in the employees Finnish Company Finnish are more reserved type of people

MICROSOFTS STRATEGY TO EXECUTE CHANGE MANAGEMENT PROCESS

Socialization:

Create company wide activities to promote new hires bonding with existing hires Informal Rewards and open culture: Microsoft should promote open culture for the new employees and make them feel comfortable with the change. Well Planned Communication Channel: Essential to bridge employee gap.

CHANGE MANAGEMENT PROCESS CONTD Expand due diligence: Using the time between the deal finalization and materialization for audit and assess hard and soft assets. Identify a culture change owners: Appointing a task force for the same. Increasing morale of employees: By localizing and personalizing messages, increasing the morale and productivity by eliminating uncertainty. Clear Leadership: A clear leadership with clear goals and communicating all lines of authority and accountability.

 Managing

Resistance: Providing information before, during and after a merger help in managing resistance from the employees.

Conducting Workshops Incentives to employees Frequent top management visits Celebratory events.