NOKIA
INTRODUCTION Nokia-Connecting People: this slogan is known all
over the world. Nokia employs 50, 000 people in 120 countries.
Currently every third mobile phone sold in the world is a Nokia.The
Nokia Company is today one of the worlds leading high tech
companies. Its rapidly growth in the 1990s coincided with a basal
structural change of the Finnish economy and industry. In this
restructuring process Nokia played an important role. Despite the
fact that Nokia is a leading multinational company, a major part of
its business is located in Finland. Nokia plays a significantly
role in the economic growth of Finland, which has been one of the
fastest in whole Europe.But the roots of the Nokia Company go back
to the 19th century when in 1865 a forest industry enterprise in
the small town Nokia in South Western Finland was established by
mining engineer Fredrik Idestam. At the turn of the 20th century
technology came with the founding of the Finnish Rubber Works in
1898 and the expansion of electricity into the homes and factories
which led to the establishment of the Finnish Cable Works in 1912.
With this development the manufacture of cables for the telegraph
industry followed and supported so the new-fangled device, the
telephone. The three companies (Paper, Rubber and Cables) were
merged to the Nokia Corporation in 1967.Since the 1990s the Nokia
Company focuses especially the telecommunication industry.The
following essay deals with a detailed overview of the history of
the Finnish Nokia company. But besides this, it is also mentioned
the importance of this company for the Finnish economy. At the end
of the essay I will give an overview of the future challenges for
the Nokia Company and its surroundings.At first I start with the
development of the Nokia Company; from its roots as a forest
industry to a worlds leading telecommunication
enterprise.HISTORYEarlier today, Microsoft completed the
acquisition of Nokias smartphone business bringing an end to an
era, which has seen plenty of ups and an equal number of downs.
Lets take a look at the brief history of the company that started
out as a paper mill in small village in Finland.THE EARLY YEARS In
the year 1865 Fredrik Idestam built a paper manufacturing mill in
Southern Finland and followed it up by launching a second mill in
the nearby town of Nokia in 1868. Three years later Idestam
transformed his company to a share company and the Nokia company
was formed.Nokia kept growing through the 19th century and in the
1960s the company branched out into electronics. In the next two
years it developed a host of electronic devices including radio
telephones for the army. In 1979 Nokia took its first steps into
telephony by creating Mobira Oy in a JV with Finnish TV maker
Salora, and they created the Nordic Mobile Telephone (NMT) service.
This was the worlds first international cellular network and in the
80s, Nokia launched its first car phone called the Mobira
Senator.Five years later Nokia launched the Mobira Cityman, the
first mobile phone that would run on the companys NMT network. At
800 grams and priced at $6,308, it may be heavy and pricey by
todays standards, but the device soon hit cult status when Mikhail
Gorbachev was photographed using the device.THE GLORY YEARS The 90s
were the glory years for the Finnish company. In 1994, Nokia
launched the 2100 with the now iconic Nokia ringtone. Three years
later it launched Snake, one of the most widely recognized mobile
games of all time. The Nokia 2100 was such a big hit that it went
on to sell more than 20 million handsets worldwide, much higher
than what the company had predicted.In 1997, Nokia also launched
the Communicator, which 11 years before the first iPhone was
considered to be much ahead of its time. The device not only looked
cool, but also offered features like email, fax, calendar and a
massive display.The same year, Nokia also launched the 6110 and the
5110 two more devices, which were way ahead of their time and
competition. These devices offered a much sleeker way of text
messaging, a beautiful menu system customization options like
multiple color snap-on covers. These devices were followed by the
7110, which offered basic web functions, the 7650, with a built-in
camera and the 6650, the companys first 3G enabled smartphone.By
1998, Nokia had firmly established itself as the global leader.
Where its rivals like Apple, Sony and Siemens had failed to predict
the global demand, Nokia sailed through these years with a turnover
that increased 500 percent from $ 8.9 billion to $42.8 billion.THE
DOWNFALL There is an old Finnish tale, which talks about Sampo, an
engine of eternal wealth created by the poor people of Kalevala.
Sampo essentially grinds outgold, salt and wheat from three horns,
day and night, but as nothing good lasts forever, one day Sampo
drowns to the bottom of the lake and the people of Kalevala are
returned to their gloom and poverty.As is with old tales, one can
easily relate Nokia to the Sampo. After the glorious 90s, in 2007
things began to go downhill and rapidly. In the year 2009, Nokia
posted its first quarterly loss in more than a decade. This was
largely due to HTC developing a smartphone running on the yet new
Google Android operating system. With the iPhones and various
Android smartphones taking the market by storm, Nokia failed to
keep up with them. Instead of joining the horde of Android
adopters, Nokias new CEO Stephen Elop joined hands with Microsoft
to develop smartphones running on the Windows Phone platform.Though
the partnership saw the development of Nokias popular Lumia series
of smartphones, Nokia wasnt able to rekindle its glory days.END OF
AN ERA On September 3, 2013, Nokia announced that its hardware
department would be acquired by Microsoft in a deal worth $7.2
billion. After eight months, the deal was completed today and with
it came the end of an era.CEO
Rajeev SuriNokia, CEO
VISION AND MISSION
Tuesday, December 14, 2010Mission & VIsion of Nokia Mission
Statement:1-To guide and focus decision making2-To create a balance
between the competing interest of various stakeholders3-To motivate
and inspire organizational members
However, it is important to point out that mission statements do
not always deliver the promised benefits. In reality, mission
statements are often unreadable and uninspiring, and articulate
values that are unrealistic or are not aligned with day-to-day
organizational behaviour.
Previous mission statement research focused primarily on the
content of mission statements and/or on the managers perception of
the mission statement. Meanwhile, the mission statement perception
of individual organizational members received little attention.
Vision Statement:Nokia wants to create a new world; to transform
a big planet to a small village. Their vision is to create, build,
and encourage people from all countries to communicate with each
other in order to create a world where everybody is connected.
Humans learn from people around them, but men also seem to
forget that beliefs and thoughts differ from person to person. The
way of thinking, experiences, believes are simultaneously related
in a logic approach. Similarly, Nokia wants to create a world of
creativity and experience, shared experiences.mill in Tammerkoski
in southern Finland. Frederick Idestam then built another mill by
theNokiavirta River where he gave the name Nokia to the mill in
1871. Originally, the Nokianvirta River was named after a dark
furry animal, locally known as the Nokia a type of marten.
Following a major industrial force, the company merges with a
cable company (foundedby Eduard Polon) and a rubber firm (founded
by Arvid Wickstrom) which sets Nokia on the new path of
electronics. Nokias first electronic device was a pulse analyzer
designed for use in nuclear power plants in 1962. Their interest in
telecommunication systems began in 1963 when they started
developing radio telephones for the army and the emergency
services, prior to the manufacturing of televisions, radio phones,
data transfer equipment, radio link, analyzers and digital
telephone exchange. Nokia will change its production and focus on
the telecommunication expertise until itbecomes the core of its
future work.
To move to mobileIn 1979 Mobira Oy was the first phone maker.
They begin life as a joint venture betweenNokia and leading Finnish
television Salora. The Mobile phone revolution started in 1981 with
the launch of the first Nordic Mobile Telephone (NMT) service. The
phone industry began to expand rapidly and Nokia introduces its
first car phones followed by the portable in 1986.
Mobile RevolutionIn 1992, Nokia decides to focus on its
telecommunications business. This happens when Jorma Ollila becomes
CEO of Nokia and he chooses to concentrate on telecommunication
industry. In the 1990s, the rubber, cable, and consumer electronics
divisions, were therefore sold. Nokias only business turned towards
the manufacturing of mobile phones and telecommunications systems.
The strategy of Jorma Ollila was to create a new era of
telecommunication on a long term vision.
In 1992, the company launched its first GSM handset and then
introduced their famousNokia Tune in 1994. During that year, the
worlds first satellite was made using a Nokia GSM handset.In 1997
the world famous mobile game Snake was presented in the Nokia 6110.
Soonafter, in 1998, the company became the world leader in mobile
phones. Following a good deal of research, they launched the first
mobile phone Nokia 7110 which included a WAP.
Nokia NowPresently, Nokia is creating more and more mobiles
phones with differing functions. Thecompany also makes sure into
diversifying and segmenting its products. Their leading position
pushed the company to go forward in their research. They came up
with the first 3G Phone in 2002, and the multi-player Nokia N-Gage.
In 2005, the N-series were born with their sophisticated mobile
phones.In 2006, Olli-Pekka Kallasvuo became the new CEO of Nokia
and Jorma Ollila shifted to being the Chairman of Nokias board. At
that time Nokia and Siemens announced plans for Nokia siemens
network the leading operations of Nokia. In 2007, Nokia launched
its new internet services brand.In order to achieve its goals,
Nokia developed strategies. These strategies differ fromcountry to
another, from a culture to another. Companies are always creating a
vision and a mission statement to make everything tacit. Evidently,
Nokia has set up its specific missions and visions.
BOARD OF DIRECTORS
Chairman Risto Siilasmaab. 1966Chairman of the Board of
Directors of Nokia Corporation. Board member since 2008. Chairman
since 2012. Chairman of the Corporate Governance and Nomination
Committee.Master of Science (Eng.) (Helsinki University of
Technology).President and CEO of F-Secure Corporation
1988-2006.
Vice Chairman Jouko Karvinenb. 1957Independent Director.Member
of the Board of Directors of Nokia Corporation since 2011. Vice
Chairman since 2013. Chairman of the Audit Committee. Member of the
Corporate Governance and Nomination Committee.Master of Science
(Eng.) (Tampere University of Technology).
Vivek Badrinathb. 1969Deputy Chief Executive Officer, Accor
Group.Member of the Board of Directors of Nokia Corporation since
2014. Member of the Audit Committee.cole Polytechnique and
ENST.
Bruce Brownb. 1958Independent Director.Member of the Board of
Directors of Nokia Corporation since 2012. Chairman of the
Personnel Committee. Member of the Corporate Governance &
Nomination Committee.M.B.A. (Marketing and Finance) (Xavier
University). B.S. (Chemical Engineering) (Polytechnic Institute of
New York University).
Elizabeth Dohertyb. 1957Independent Director.Member of the Board
of Directors of Nokia Corporation since 2013. Member of the Audit
Committee.Bachelor of Science (University of Manchester). FCMA
(Fellow of the Chartered Institute of Management Accountants).
Simon Jiangb. 1953Founder and Chairman of CyberCity
International Limited (CCI) and of some CCI subsidiaries.
Independent director in certain other companies.Member of the Board
of Directors of Nokia Corporation since 2015. Member of the
Personnel Committee.B.A. (Beijing Foreign Studies University). M.A.
(Australian National University). MPhil and PhD (Economics),
(University of Cambridge).Chairman and Chief of Vision Century
Corporation Ltd 2002-2008. Founder of CyberCity Group of Companies
1997-2002. Deputy Chief and Fund Manager of United Nations Joint
Staff Pension Fund 1992-1997.
Elizabeth Nelsonb. 1960Independent Director.Member of the Board
of Directors of Nokia Corporation since 2012. Member of the Audit
Committee.M.B.A. (Finance) (The Wharton School, University of
Pennsylvania). B.S. (Foreign Service) (Georgetown University).
Kari Stadighb. 1955Group CEO and President of Sampo plc.Member
of the Board of Directors of Nokia Corporation since 2011. Member
of the Personnel Committee. Member of the Corporate Governance and
Nomination Committee.Master of Science (Eng.) (Helsinki University
of Technology). Bachelor of Business Administration (Swedish School
of Economics and Business Administration, Helsinki).ORGANIZATIONAL
STRUCTUREAs of October 1, 2009 the organizational structure at
Nokia was extremely mobile and flexible.Nokia's organizational
structure is horizontal and it allows for greater flexibility and
speedy communication channels between different departments. The
devices unit looks after the development and management of mobile
devices portfolio which is targeted at all major consumer segments.
The solutions department ensures that it continuously develops
solutions whereby ensuring that a particular mobile device has
integrated contents and personalized services and the output of
these three components results into a leading mobile phone for the
end user. The solutions unit works with other departments in close
proximity to provide such solutions.The services department creates
and designs internet services that enhance the consumer experience
when Nokia phone users interact with the web. The main areas where
this unit focuses on include messaging, maps, music, and Ovi
developer tools. This department also ensures that there is a
consistent increase in different services as the market evolves.
The other significant department is Markets which acts like a
supply chain department for Nokia. The unit is also responsible for
sales channels, branding and marketing activities for various
products and services.
PRODUCTSGet the latest technology and global expertise at your
fingertips to help you meet the growing demands of your
customersHandle thegrowing volume of trafficon your networks and
stay relevant in the rapidly changing industry landscape is a big
challenge. On top of that, you have to manage your operations and
keep track of the business.Whether its the latest network
technology, or tools to help youmanage your business more
efficiently, our products can help you to stay competitive and
increase revenue.
What Nokia Networks can offer> Customer Experience Management
(CEM)Gain aholistic, real-time viewof your subscribers,and turn
this insight into targeted actionsthat improve the customer
experience and drive loyalty and profitability.Learn more about our
CEM product portfolio> Evolved Packet corePrime your networks
for theexplosion in data and signalling trafficin mobile
networks.Find out how end users get the quality of services they
demand> Convergence/ IMSPave a smooth evolution path towards
anall-IP corewith IMS as the core controller of choice for LTE
networks offering voice and multimedia services. See how we can
help> Mobile broadbandWe can help you make sure your networks
can efficiently handleincreased data trafficas well asimprove the
experience for your customers> Operations Support Systems
(OSS)Smart OSS helps you use your network to ensure better customer
experience in a cost-efficient way.Take a closer look at our OSS
product portfolio> IP Partner productsLeverage the right skills,
partners and solutions to support yourIP transformation process.See
the full range of multi-vendor IP products> Subscriber data
managementUnlock the value of subscriber data.See how we can help
you consolidate your data into a single, unified platform and
speed-up new services introduction.> Transport networksGet the
fastest connectionsacross fixed and mobile environments to
efficiently manage explosive traffic growth.
Discover how to transform to an ubiquitous IP, packet and
optical transport network.
EMPLOYEESNokia Networks employs over 50,000 people in more than
120 countries. The success of our business depends on them.Our
company culture and values should permeate every aspect of our
work. We want to create an inclusive working environment where
everyone feels valued, motivated and inspired to reach their full
potential. To support this aspiration, we provide development and
training opportunities, competitive reward packages, equal
opportunities and flexible working.Internal communications keep
people informed about our business strategy, and we work hard to
support them through changes in the company (seesustainability
report).
OUR CULTURE AND VALUESWe want to make Nokia Networks a great
place to work, based on trust, respect, honesty and openness. Our
aspiration is to be a company with a high-performance culture and
it is important that our employees understand and work towards
this.Our valuesOur four core company values form the cornerstone of
our culture and help to guide employees in their work. We aim to:
Respect Achievement Renewal ChallengeEngaging employees is critical
to embedding our culture and values. Our network of Culture
Champions communicate the values widely within the company as well
as raising awareness of our policies on ethics and compliance,
sustainability, diversity and a good working environment.The
wellbeing of employees is one of our priorities. Our wellbeing@work
framework is designed for line managers to help them ensure their
own wellbeing as well as their responsibilities to their teams.
This includes group coaching sessions and forums, job rotation,
fitness and wellbeing days. Wellbeing programs are tailored to the
needs of employees in different countries and implemented
locally.Case studyPeoples ChoiceThe Peoples Choice Award in the
Asia and Pacific region recognizes employees who demonstrate our
values in action. Employees nominate colleagues every four months,
and entries are judged by our leadership team in each
country.Winners become Value Ambassadors and are invited to present
our values to new employees during their induction. They help
inspire and lead the way for other employees to adopt our culture
and values.AWARDS2015 AwardsJune 2015Small Cell Forum AwardNokia
Networks won the Small Cell Forum award in the category Small cell
tool design and technology with Nokia 3-D Geolocation.
June 2015Pipeline Innovation AwardNokia was awarded two Pipeline
Innovation awards: one for Innovation in Networking Technologies
withNokia Telco Cloud Managementand one for Innovation inCustomer
Experience Management with its Customer Experience Index.
June 2015Leading Lights AwardNokia Networks won the Leading
Lights award in the category Most Innovative Security Strategy for
vendors with its Security in Networks for Internet of Things
solution.
April 2015Rajeev Suri receives Marco Polo award for advancing
Chinas development through Nokias technologyThe China Association
for International Exchange of Personnel (CAIEP) recognizes Nokias
efforts to globalize and commercialize TD-LTE technology over the
last 17 years.
SWOT Analysis of NokiaNokia, once the worlds largest vendor of
mobile phones, is a popular Finnish information technology and
communications multinational corporation which provides
telecommunication equipment and services. The mobile phone brand,
famous for the reliability and durability its phones provide, has
ruled the mobile market for many years with its motto connecting
people.Recently, the handset division and services of the brand
were acquired by software giant Microsoft and since then Nokia has
released a number of phones under the Windows umbrella. So, keeping
all these points in mind, lets do aSWOT analysis ofNokia, to get a
proper analytic view of the brands strengths, weaknesses,
opportunities and threats (SWOT).STRENGTHSLets start with the first
part of SWOT analysis ofNokia which is strengths:
The biggest strength of the company is their brand name. Many
consumers often opt for Nokia more than any other brand because of
the reliability, durability, and creativity their phones provide.
Most of Nokias highly qualified personnel have teamed up with
Microsofts experts as a part of the acquisition deal. The phones
provided by Nokia have a much higher re-sale value compared to
other mobile phone brands. Many of Nokias products are easy to use
and are usually coupled with a variety of handy accessories.
Products offered by the company are available in all price
ranges.WEAKNESSESThe next part of SWOT analysis ofNokia is their
weaknesses: The company, though, is often criticized for poor after
sales services. Took a long time to enter the highly productive and
booming smartphone market. As a result the company lost a lot of
its once huge market share. Some of Nokias products are not
affordable for middle and lower class consumers, which often
affects their searches negatively. The Finnish mobile company has
made comparatively lower profits due to drop in sales that result
from tough competition. According to statistics, the companys
profits have fallen by 7% in the second quarter of 2014. There are
slumps in the companys development with its Windows Lumia range of
smartphones because of constant competition from rivals Android and
iOS.OPPORTUNITIESAfter discussing the internal factors of SWOT
analysis ofNokia,lets shift our focus towards external factors: The
Microsoft-Nokia deal is a win-win situation for both companies. The
deal possesses great opportunity if both utilize resources in a
proper way. Opportunities to expand the range of products and their
prices. Also bring in new features and applications on to Windows
OS.THREATSThe final part ofSWOT analysis for Nokiais the threats:
Strong competition from other smartphone companies will make it
hard for Nokia to maintain and expand their market share. Low-cost
threats by China mobile companies and others can cause big
problems.So, after properSWOT analysis, we have come to the
conclusion that Nokia is going through a tough time in the market
due to a variety of factors. However, with Microsoft and Nokia
personnel teamed up, there is no doubt in saying that many of these
problems can be overcome if Nokia strategizes, plans and uses its
resources properly.
NOKIA GAINS
Nokia achieved an increased turnover and made a remarkable
profit during the second quarter of 2015, the Finnish network
technologies company said.
Compared with the same period in 2014, the 2015 April-June
turnover stood at 3.2 billion euros, which was an increase of nine
percent. The profit was now 352 million euros, whereas in 2014 it
had been negative.
Among the three major business portfolios, namely the networks,
technologies and the HERE map services, networks provided 313
million euros out of the total of 521 operating profit.
Mikael Rautanen, an analyst of Nokia from the analysis firm
Inderes, told Finnish national radio Yle that the increase in the
turnover could be attributed to changes in the exchange rates that
were advantageous to Nokia.
The good profit result showed a recovery in the core business of
Nokia, the network services.
Rautanen said the market situation was not easy, but Nokia was
able to improve its profitability more than its main competitor
Ericsson.
"In the future the programmes that administer the networks bring
the money, not that much the sales of hardware," he said.
Nokia CEO Rajeev Suri said the company`s global services segment
attained one of its best results ever; sales of programming grew
remarkably, while the impact of new strategic agreements
declined.
The current annual turnover of Nokia is around 15 billion euro
and following the completion of the Alcatel-Lucent deal it will be
around 30 billion.
Rautanen said that uncertainty associated with the upcoming
merger has been reflected in the price of the Nokia stock. It was
7.5 euros at the time of the announcement and has since declined to
six euros.
On Thursday, following the announcement of Q2 results, the share
value increased eight percent.SOCIAL RESPONSIBILITYPublished byRafe
Blandfordat15:17 UTC, May 17th 2013This week Nokia published its
annual corporate social responsibility and sustainability report
("Nokia People & Planet Report 2012"). Covering a wide range of
issues it offers an insight into the broad range of initiatives
that makes Nokia a leader in the technology sector for ethical and
environmental issues. The report also discusses the impact of
Nokia's 2011 and 2012 strategy changes on its employees and the
communities in which it operates.Here's how Nokia describe the
report:Since 2002, weve consistently reported on corporate
responsibility, and each year we build upon our transparency and
coverage of issues. Today, our report covers the ethical,
socio-economic and environmental areas most relevant to Nokias
business and its stakeholders.The Nokia People & Planet Report
2012 is split into Nokias efforts for people and the planet. The
People section discusses how mobile technology can be harnessed for
the good of individuals and communities, but it also covers
challenges we faced in 2012 as well as how this impacted our
employees and the communities in which we operate. The Planet part
reports on our initiatives to minimize the potential negative
impacts on the environment and the positive contributions mobile
devices can make to the planet. The report is only available in
digital format, as we want to print less.The reports talks in
detail about the positive and negative aspects of Nokia's business
operations, and details the company's overall performance, whether
it met its targets, and plans for the future.Here are some selected
highlights from the report:Corporate taxation Nokia says that, "as
a good corporate citizen Nokia pays the amount of taxlegally due
and observes all applicable rules and regulations ineach country
where it operates". The report notes that the company has followed
the same centralised business model in the allocation of taxable
income since the early 1990s. In essence, the majority of profit
(and loss) is carried by the business in Finland, with a smaller
portion carried in the countries in which Nokia operates. Although
it's not specifically mentioned in the report for obvious reasons,
this is in sharp contrast to a number of other technology companies
who have been in the headlines for offshoring profits in low
corporate tax jurisdictions.Employees As a result of Nokia's new
strategy (switch to Windows Phone) there were a large number of job
losses. In order to help employees affected by the reductions Nokia
established a support program callBridge. By the end of 2012 17,000
employees had participated in the program, and almost 1,000 new
businesses have been set up by former employees. Environmental
design A dedicated design for environment (DFfE) specialists work
actively throughout every product development project at Nokia,
verifying legal and voluntary target compliance, as well as
promoting sustainable alternatives for materials and other design
considerations.
Over the last decade Nokia has reduced the greenhouse gas
footprint of their phones by 50%.Materials In 2012 Nokia banned the
used of radioactive substances in all products, packaging, and
internal production processes. This in the latest in a long line of
substance nad material management policies. For example, the use of
perfluorooctanoic acid (PFOA) was restricted, and in 2010 all Nokia
products were free from bromine and chlorine compounds related to
flame retardants. In 2012 Nokia retail packaging material used
18,875 tonnes of paper (on average 52% recycled) and a futher 9,569
tonnes of paper (on average 89% recycled) in transport packaging
material. Chargers Over the last 10 years Nokia has reduced the
no-load consumption of its chargers by 73%(i.e. charger plugged in,
but not being actively used for charging). The best-in-class
chargers have seen a 90% reduction. The average no-loadpower
consumption on Nokia chargers shipped in 2012 was 0.098W, a
reduction of 13% from the previous year. In 2012 all new Nokia
devices are being shipped with four or five star charger. Emissions
40% of the electricity used by Nokia comes from renewable sources
Nokia aims to reduce CO2 emissions by a minimum of 30% by 2020
(from a 2006 baseline). The 2013 emissions figure was down 29% from
2006. Nokia reduced CO2 emissions from air travel by 54% from 2011
to 2012 in total, and by 39% when calculating reductions per
employee. In part this was due to the installation and greater use
of new video conferencing facilities.