1.3 Background (PEST Analysis)
In the case of Nokia, it can be classified as international organization. It basic for global brand, which is required to focus on macro environmental factors, such as Nokia. Macro environmental factors comprise Political, Economics, Society, and Technology, viz, PEST Analysis. It is necessary force that Nokia has to concern and know what is happening in the other countries at the moment. Because there are different culture and different external factors between different countries, Nokia has to adjust its strategic plan in order to develop international market.
1.3.1 Political
It is important of a company to acquire resources from government, such as economic policy, and science and technology policy. The success of Nokia has obtaine the resources from Finnish policies which assist Nokia to advance its products. As Zheng (2001) has observed:
The Finnish policies are the most important factors of Nokia. To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector. In its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. Both policies ursued by Finnish government and Parliament are crucial for the development bothe of the Finnish Economy and of national information society.
Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. The state must also pursure an industrial and economic policy that provides a stable macr ...