macro environment of Nokia

Nokia can be classified as an international organization and hence it has to work towards a global brand, and this requires focusing on macro environmental factors. 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 an international market.
Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. The state must also pursue an industrial and economic policy that provides a stable macroeconomic environment for enterprises. General macroeconomic and political stability, low interest rates, stable currency conditions and the international competitiveness of the tax system attract a company to operate in a particular country. It is important of a company to acquire resources from government, such as economic policy, and science and technology policy. Nokia’s headquarter is in Finland and the success of Nokia has obtained the resources from Finnish policies which assist Nokia to advance its products.
Furthermore, the economic state-the tax levels, labour laws and other legislation is an important factor which greatly affects the performance of the company.
Social aspect (cultural and environmental) is another important macro-environmental factor which a company needs analyse. Nokia has an explicit environment related policies and not just Nokia itself but also regarding its suppliers. It has an “Environmentally conscious design” which states that the supplier shall take due consideration of environmental issues during research, development, manufacturing process design and production.
Finally, technology is the most dramatic factor in shaping a telecom industry. Usually, the better the technological state of the country, the more the demand for new and improved products. Nokia has always been the key player in the telecom industry.