Introduction of Business Management

& Principle of Marketing

2016

ORGANIZATION, TEAMWORK & COMMUNICATION

RELATE TO CUSTOMERS ENGAGEMENT & CUSTOMERS
VALUE: CASE STUDY IN NOKIA

Alyssa Khairafani
School of International Business Administration
Faculty of Business & Social Sciences
International University Liaison Indonesia, Serpong, Tangerang, Indonesia
Email: alyssakhaira@gmail.com

Fikar Arya Putra

School of International Business Administration
Faculty of Business & Social Sciences
International University Liaison Indonesia, Serpong, Tangerang, Indonesia
Email: fikar6969@yahoo.com

Jonathan Wijaya
School of Management
Faculty of Business & Social Sciences
International University Liaison Indonesia, Serpong, Tangerang, Indonesia
Email: tidakbisa469@gmail.com

Naratama Abyandra
School of International Business Administration
Faculty of Business & Social Sciences
International University Liaison Indonesia, Serpong, Tangerang, Indonesia
Email: naratama.abyandra@hotmail.com

ABSTRACT

Communication and teamwork in an organization becomes an important part in creating customer

value and in the way how to create the customer value for the company. So for the future, these 3 elements
can help the company.

This paper tries to discuss how important teamwork and communication in an organization in order
to reach the goal that will be related to the company.

Keywords: Organization, Teamwork, Communication, Customer Engagement, Customer Value

ABSTRAK

Komunikasi dan tim kerja sama dalam sebuah organisasi menjadi bagian yang penting dalam
membuat nilai kostumer dan dalam bagaimana caranya untuk membuat nilai kostumer untuk perusahaan.
Sehingga kedepannya, 3 elemen ini dapat membantu perusahaan.

Artikel ini mencoba untuk membahas bagaimana pentingnya tim kerja sama dan komunikasi dalam
sebuah organisasi dalam mencapai tujuan yang berkaitan dengan perusahaan.

Kata Kunci: Organisasi, Tim Kerja Sama, Komunikasi, Keterlibatan Pelanggan, Nilai Kostumer
 Introduction of Business Management
& Principle of Marketing
2016

I. INTRODUCTION
The growth of business perhaps it was started as product oriented which the
company did not concern about what the customer’s need, only focus on how the company
can sell our products in big sales. As the time goes by, the world grows and develops, the
company finally shifted to market oriented which the company started to care about it, the
company started to see the growth of customers need, because those company started to
realize that the company had to compete with other enterprises.

Every company has it is organization structure consists of production unit, human

capital or human resource unit, financial unit, and then marketing unit. Each organization
has to build a strong teamwork so that the company will stay competitive in the market.
This paper tries to find out how the company can follow the growth of customer’s need to
keep their customers loyal therefore the product of the company become the customer’s
value.

Looking through Nokia problem recent years, Nokia is losing customer in big
number. This phenomenon opens up the business mind that the business cannot just focus
on the product, but also has to focus on the market and customer’s need. Nokia cannot
compete with other competitors such as Apple and Android. Nokia failed to take the
moment of smart phone booming. Nokia failed to anticipate, understand or manage to face
globalization. Nokia’s feature is presently ready, but not ready for the years to come.
Although Nokia already collaborated with windows, still Apple and Android have many
applications that can be managed and customized by customer’s need. Nokia is late in
developing the phone to compete with other smartphone that is booming quickly. Android
and Apple Nokia once dominated the mobile phone market in the era of GSM and CDMA
few years ago, but the past few years Nokia’s shares continue to fall with the collapse of
some of the latest Nokia products against its competitors.

Nokia provides too much focus on developing software without providing

meaningful innovations that make Nokia does not focus on hardware development. In
addition, the CEO Board decision too slow in responding to the latest trends. Division and
complex also lead to a relatively long decision. Nokia is often a pioneer in launching
products with no prospect of a better future. Nokia failed to anticipate, understand or
organize themselves to face the growth of smartphone era. Nokia has an issue to fulfill the
customer’s needs. Then, Nokia must provide the latest and greatest innovation of high
customers demand.

Customer transition from mobile phone to a smartphone is very quick, so the

company's smartphone Nokia displaced by competitors such as iPhone, Android, and
Blackberry. Because of the other smartphone’s innovation is very high, meanwhile Nokia
is not much change on its technology so that the customers choose the latest smartphone
over Nokia which is late in following the new trend of phones (Komunikasi, 2012).
 Introduction of Business Management
& Principle of Marketing
2016

Table 1. Nokia first quarter sales in 2016 decreased 26%

Source 1. (Komunikasi, 2012)

II. LITERATURE
II.1. ORGANIZATION, TEAMWORK, AND COMMUNICATION
II.1.1. ORGANIZATION
Organization, as we know that it means there are more than 1 person, who are
selected to pursue collective goals. It makes it clear that each person has different culture
in the way they act, they dress, and they perform their job. Beside there are so many
uniqueness in an organization, we have to keep them stick out with the organization that
they can deal with, so the organization become one unity. The organization develops and
grows, as the time goes by, in the growth of the organization itself can have its own culture
that will make the organization different from others. Each corporate has its own culture
which we call it as Organizational Culture. Organizational culture is a system of shared
assumptions, values, and beliefs, which governs how people behave in organizations,
(McLaughlin).

Structuring an organization requires that management assign work tasks to specific

individuals and departments and assign responsibility for the achievement of specific
organizational objectives, (Ferrel, Hirt, & Ferrell, 2016).
 Introduction of Business Management
& Principle of Marketing
2016

Organizational chart shows the organizational structure in visual display. The

positions of employees are presented in the diagram. It creates a clear visual of the
relationship between the roles. It can change frequently as the personnel moves throughout
the organization. These are three types of organizational chart (Murray):
 Structural Chart.
This chart typically does not contain the list of employees name and the
positions. This chart shows only component based on departmental
interactions.

 Functional Chart.
Describe the functions of each departments represented. It is good for
anyone in the organizations who wish to see who are responsible in the
department.

 Position Chart.
The chart that lists employees names and the employees positions. It reports
the relationship between each roles.

II.1.2. TEAMWORK
Teamwork is a group of people working collaboratively to achieve goals, they
usually work using their individual skills, but they also have to cooperate. Why teamwork
is important (Matson, 2015):
 Fosters Creativity and Learning.
Brainstorming with the teamwork creates the creativity in searching various
alternative way out of the issues. By combining each other opinions creates
effective solutions (Matson, 2015).

 Blends Complementary Strengths.

Each individuals have different strengths. In teamwork, everyone better not
hesitate to share their abilities, so we can learn how to combine each
strengths and become a strong team (Matson, 2015).

 Builds Trust.
By building trust with each team members can strengthen the relationship
between coworkers. A key to have a good relationship is by being open up
with each other (Matson, 2015).

 Teaches Conflict Resolution Skills.

In a team consists of unique people, they have different cultures and habits
that sometimes will create a conflict. They cannot turn this to management
but they have to face it themselves (Matson, 2015).

 Promotes a Wider Sense of Ownership.

Team encourages employees to feel proud of their contributions. Working
in teams toward achieving the goals of the company makes the employees
connected to each other (Matson, 2015).
 Introduction of Business Management
& Principle of Marketing
2016

 Encourages Healthy Risk-Taking

Teamwork lets employees to think outside the box and sometime the
riskiest idea turns out to be the best idea. Learn your each members in team
so each skills of your members can be combined in order to create more
impressive results (Matson, 2015).

Figure 1. Group vs Team

source 2. (Krishnamurthy, 2015)

Group consists of two or more individual who communicate with one another,
share a common identity and have a common goal. Otherwise, team is a small group whose
members have complementary skills; have a common purpose, goals, and approach; and
hold themselves mutually accountable, (Ferrel, Hirt, & Ferrell, 2016).

II.1.3. COMMUNICATION
Communication is a way of sharing information. A good communication means the
receiver understands the given information from the sender, so there is no
misunderstanding between them. There are different types of communication (Carpenter,
Bauer, & Erdogan, 2016):
 Verbal Communication
Use words in speech to send the messages. One person speaks and the other
listens in order to understand the message. Verbal communication is usually
called oral communication. For example, people who are on the phone
(Carpenter, Bauer, & Erdogan, 2016).

 Written Communication
Usually the sender writes the message. For example, memos, proposals,
email, and other printed messages. The written communication can be
constructed over a long time period, meanwhile verbal takes place in real
time (Carpenter, Bauer, & Erdogan, 2016).
 Introduction of Business Management
& Principle of Marketing
2016

 Nonverbal Communication
We all have done trying to communicate using body language, facial
expressions, touch, eye contact and tone of voice whether we realized it or
not. Research shows that 55% in-person communication comes from
nonverbal (Carpenter, Bauer, & Erdogan, 2016).

II.2. CUSTOMERS ENGAGEMENT AND CUSTOMERS VALUE.

II.2.1 CUSTOMERS ENGAGEMENT
Customer engagement is built with every band interaction, by making a purchase,
joining a loyalty program, receiving an email, passing an advertising billboard, giving
review, sharing with friends or any other exposure to a brand (Carter, 2015). Customers
Engagement is the pathway to everything good that every business wants. It leads to get
customer loyalty, customer purchases, customer based-profit, and customer
ambassadorship for the company’s brand. engage the customers means the customers get
closer to the brands, to company’s business itself. If the company find a way to engage the
customers, then a magic will happen (Solomon, 2015). Solomon stated that customers are
engaged because the customers feel special by getting special treatment from the brand, so
it makes the customers feel like the most important customer for the brand. To engage the
customers, we need to implement these rules (Jeffries, 2015):
 Make it personal.
We still can get in touch personally just by sending messages through e-
mails, text messages, or other social media. We need to make them feel that
we care and pay attention to them. A simple greeting would be nice. We can
even use their first name in the text, it will make us get in to the step that
takes you and them more personal, then, it follows by giving them
information about the new brands, their favorite brands, the discount
season, and other special treatment for the dearest customers. We have to
build a good communication (Jeffries, 2015).

 Make it relevant.
After we make it personal, we still have to continue by making it relevant.
For example, your customer just bought a pair of shoes, then we can send
him a message telling him that we have a great new selection of new flat
shoes on the store and we would like to inform you that you can see the
collections by visit us on the website and give the link (Jeffries, 2015).

 Make it on time.
The message we would like to share to the customers should be on time.
The customer will not be going to see those shoes collection in the morning,
we can send them the message right after they leave the store. We should
look at what time of day most of your purchases are made and start to send
messages in and around that time (Jeffries, 2015).

There are four characteristics of highly engaged customers (Carter, 2015):

 They are purchasers.
The type of customers who continue to pay for a brand’s services or
products (Carter, 2015).
 Introduction of Business Management
& Principle of Marketing
2016

 They are evangelists.

The customers who invite their family or friends to the brand, whether the
customer’s type is a purchaser or not. But the customers also consume and
re-broadcast brand content to the social networks (Carter, 2015).

 They are responders.

The customer who provide constant feedback. The customers feel invested
in the brand (Carter, 2015).

 They are loyal.

The customers stick to one brand. This type is a combination of those three
styles. Usually they keep coming back on purchasing the products or
services (Carter, 2015).

II.2.2. CUSTOMERS VALUE

Customer value is the satisfaction the customer experiences by taking a given
action relative to the cost of that action (Mansfield, 2014). For the simple example is, in
Indonesia the people call mineral water ‘Aqua’ which is a brand name of a mineral water.
But it is becoming a habit calling every brand name of mineral water Aqua instead of
calling it the real name of the brand, name it Nestle, Ades, Prim-a or other.

We can measure the customer value, the simple equation is:

Figure 2. Equation of Customer Value

Source 3. (TemplateFans, 2014)

How can we create customer value (Mahajan, 2016):

 Make the customer believe that the customer get more benefit than the
customer pay for it (Mahajan, 2016).

 Reduce or stabilize the price and giving something extra over competition
such as more services, better attention, or an add on to the product
(Mahajan, 2016)

 Make an easy way on how the customer wants to buy and pay (Mahajan,
2016).
 Introduction of Business Management
& Principle of Marketing
2016

 Giving the customers product that works as it is meant to, that is easy to
understand and easy to use (Mahajan, 2016).

 Make the customers feel valued. For example, smiling and giving greetings
to the customers, make it easy for the customers to contact the company, or
other any good services (Mahajan, 2016).

Figure 3. Analytics and Customer Relationships

source 4. (Pant, 2012)

Predictive analytics can help determining customer behavior and managing the
changing of customer needs.

III. COMPANY PROBLEM

III.1. COMPANY PROFILE
Nokia is one of the biggest cell-phone productions in the world with biggest
numbers of customers from more than 130 countries. Nokia is divided by 4 business
divisions, which are Mobile Phones, Multimedia, Enterprise Solutions, and Network
(Nokia, 2016):
 Telephone cellular division, to promote voices and wireless data product for the
consumer and the company.
 Introduction of Business Management
& Principle of Marketing
2016

 Multimedia division, is more selling the game thing in mobile world, housing
satellite system and cable television.

 Network division, is more selling transmission applications.

Nokia moves 15 manufactures in less than 9 countries and research more than 12
countries. Opening ceremony Nokia in 1865, Nokia succeed working in any kind of
industries, including a cable industry, forestry, rubber, electricity, telecommunication and
electronic industry.

In 1980, Nokia changed the focus that was only focus on Finland, and Nokia
entered the market of Europe, did not take long time Nokia finally succeed becoming one
of the big company in Europe in the early of 1990s. At the same time, Nokia was approved
become the global company. Nokia collaborated with Alcatel-Lucent to strengthen Nokia’s
position between other big international companies. Nokia produced Telecommunication
products in 1880 until now, even Nokia produced telecommunication products not so far
after the telephone was found.

In 2007, Nokia joined the infrastructure with Siemens company and that was when
Nokia Siemens Network company was found. In 2011, Nokia joined with Microsoft to
strengthen Nokia’s position in the competitive smartphone market.

At the time Nokia was collaborated with Alcatel-Lucent, Nokia was a leader in
innovation in a new generation era. A strong innovation in Nokia’s ability to strengthen
Bell Labs operated and collaborated with R & D unit. The strong Nokia’s innovation
showed thousands of patent listed and for years had been producing a big advantage in
consumer field of business and the people.

Nokia has a long history about changing and new innovations. Nokia always
enthusiast about how technology guided people to be better. Nokia worked to expand the
people’s potential in telecommunication programs in the world and Nokia would still
create the new technology that will be easy to be accepted and would be much easier for
everyday activities (Nokia, 2016).

III.2. GROWTH OF TECHNOLOGY AND THE CUSTOMER

Nokia has tried to follow the growth of globalization. Nokia also had been a
adaptive company and moving in, slowly, Nokia finally reinvested again, it might not for a
long time. At nineties, Nokia won, came up the first cellphone with internet-enabled
phone, prototype of a touch screen. Although Nokia finally failed, Nokia used to be the
first choice of people as the customers. Nokia won the heart of the customer back then, but
in 2010, Nokia, Windows phone started being a flop, the products were disappointing the
customer and the products did not attract the customer anymore.

Nokia was too focus on the software, Symbian, and the display that made Nokia
forgot to keep following the customer’s need and the growth of technology competing with
the new comer such as Android and Apple. At once Nokia got the customer’s heart, it
made Nokia was too overestimated about the selling and Nokia was overestimated at
getting the customer’s value. Nokia now is different, Nokia cannot see the needs and wants
of customers, because Nokia did not try to follow the growth of the customer’s needs and
 Introduction of Business Management
& Principle of Marketing
2016

wants. Nokia was too obsessed in creating a phone with the super software so people
would think that Nokia is really sophisticated. It made Nokia forget that people like it
simple and modern phone. People claimed that Nokia had stuck with the operating
systems. The new era taught people to expect constant innovation, Nokia falls and the
people easily judged and punished. Nokia is growing slowly and late, the people cannot
accept it (Surowiecki, 2013).

Figure 4. Mapping Nokia's Sales Several Years Ago

source 5. (Komunikasi, 2012)

IV. CONCLUSION
Every Organization has teamwork in it, each teamwork has its own specialization
of skills. Divided by Financial unit, Human Resource unit, Production unit, Operating unit,
Marketing unit. Customer is an important part in the market, that so effecting the company.
Therefore, the company must serve the customer. Marketing unit works to build the
relationship between customer and the company. Marketing unit should build the
relationship in order to keep the customer loyal and the company’s product become
valuable for the customer. Every company has its own way to engage the customer and
create the customer value. Surely, the marketing unit tries to build the relationship through
communication. Good communication can steal the heart of the customer. When the
product wins the customer’s heart, the customer will always come back to buy the
products, or even the customers can invite closest friends and family and share how
valuable the company’s product is. Through communication means embracing the
customer so the customer feel warmed by the way the company treats the customer, such
as the customer getting a greeting mails, texts, or information about the latest promo and
event.
 Introduction of Business Management
& Principle of Marketing
2016

The customer is important in order to keep the company exists and runs well.
Without the customer, the company’s product will mean nothing and gain no profit. The
company will not grow and develop because they have no customer. In engaging the
customer, we can get a loyal customer. At least, we have customer who is going back for
more of our products because the customer is already attracted for furthermore
productions. The company has to understand its customer in order to achieve the customer
value and to engage the customer, means the company knows the customer’s need and the
growth also development of the world.

This paper tries to show that the Organization, Teamwork and Communication
relates in creating the customer value and customer engagement. Through the phenomenon
that this paper has shown and explained. Customer is important for every company. This
research relates to each other in order to achieve the goals of the company which is to
engage the customer and create the customer’s value.
 Introduction of Business Management
& Principle of Marketing
2016

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