The Chief Executive of Samsung Electronics recently told its employees that, “We must begin anew. Most of Samsung’s flagship businesses and products will become obsolete within ten years.” This corporate strategy of reinvention would inevitably involve significant change for employees. Do you think that resistance from employees is likely to be the biggest problem for a business that wants to reinvent itself? Justify your answer with reference to Samsung Electronics and or/other organisations that you know.

A corporate strategy is a plan based on the corporate aims and objectives which defines the overall scope and direction of the business by identifying its choice of business, markets and activities. For an organisation facing such
However, the causes of change could have a larger effect on the business that resistance from employees. Globalisation and technological advances could have set Nokia back further than they can recover. Competitors such as Apple invest so much into research and development, and with Nokia’s lack of innovation, this could make to too hard to them to recover fully and emerge with a strong market share into the smart phone market. They could still increase their market share in the mobile phone market, but it may be too late to compete with the likes of Apple and Samsung in the smart phone market.

Resistance from employees could become minimised by using Kotter’s model for change management. Nokia have promoted change by establishing a sense of urgency, which they achieved with the email sent round to all staff. They have created an effective project team to lead the change, this started by changing the chief executive. They have also communicated the changed vision to all the staff with the analogy of the burning platform.

To conclude, I think that resistance from employees is not likely to be the biggest problem for Nokia as although I think it could create problems, if managed in the right way, which they have already demonstrated, it could be minimised hugely. Overall, I think that the main problem for Nokia