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CHAPTER-1
GOALS
1
Agoalis a desired result a person or a system envisions, plans and commits to achievea personal or
organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals
within a finite time by setting deadlines.
It is roughly similar to purpose or aim, the anticipated result which guides reaction, or anend, which is
an object, either a physical object or an abstract object, that has intrinsic value.
1.1) Goal setting
Goal-setting ideally involves establishing specific, measurable, attainable, realistic and time-targeted
objectives. Work on the goal-setting theory suggests that it can serve as an effective tool for making progress
by ensuring that participants have a clear awareness of what they must do to achieve or help achieve an
objective. On a personal level, the process of setting goals allows people to specify and then work towards
their own objectivesmost commonly financial or career-based goals. Goal-setting comprises a major
component of personal development. A goal can be long-term or short-term.
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Short-term goals expect accomplishment in a short period of time, such as trying to get a bill paid in the next
few days. The definition of a short-term goal need not relate to any specific length of time. In other words, one
may achieve (or fail to achieve) a short-term goal in a day, week, month, year, etc. The time-frame for a short-
term goal relates to its context in the overall time line that it is being applied to. For instance, one could
measure a short-term goal for a month-long project in days; whereas one might measure a short-term goal for
someones lifetime in months or in years. Plannersusually define short-term goals in relation to a long-term
goal or goals.
Long term are ones that you will achieve over a longer period of time (e.g., one semester, one year, five years,
or twenty years).
Long-term goals often are our most meaningful and important goals. One problem, however, is that the
achievement of these goals is usually far in the future. As a result, we often have trouble staying focused and
maintaining a positive attitude toward reaching these goals. This is why it is helpful to set up what we call
enabling goals.
1.2) Personal Goals
Individuals can set personal goals. A student may set a goal of a high mark in an exam. An athlete might run
five miles a day. A traveler might try to reach a destination-city within three hours. Financial goals are a
common example, to save for retirement or to save for a purchase.
Managing goals can give returns in all areas ofpersonal life. Knowing precisely what one wants to achieve
makes clear what to concentrate and improve on, and often subconsciously prioritizes that goal .Goal
setting and planning ("goal work") promotes long-term vision and short-term motivation. It focuses
intention, desire, acquisition of knowledge, and helps to organize resources.Efficient goal work includes
recognizing and resolving all guilt, inner conflict or limiting beliefthat might cause one to sabotage one's
efforts. By setting clearly defined goals, one can subsequently measure and take pride in the achievement of
those goals. One can see progress in what might have seemed a long, perhaps impossible, grind.
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Achieving complex and difficult goals requires focus, long-term diligence and effort. Success in any field
requires forgoing excuses and justifications for poor performance or lack of adequate planning; in short,
success requires emotional maturity. The measure of belief that people have in their ability to achieve a
personal goal also affects that achievement.
Long term achievements rely on short-term achievements. Emotional control over the small moments of the
single day makes a big difference in the long term.
One formula for achievement reads A= I*M[citation needed] where A = achievement, I = intelligence, and M =
motivation. When motivation equals zero, achievement always equals zero, no matter the degree of
intelligence. Similarly for intelligence: if intelligence equals zero, achievement always equals zero. The higher
the combination of both intelligence and the motivation, the higher the achievements.
1.3) Goal Management In Organizations
Organizationally, goal management consists of the process of recognizing or inferring goals of individual
team-members, abandoning no longer relevant goals, identifying and resolving conflicts among goals, and
prioritizing goals consistently for optimal team-collaboration and effective operations.
For any successful commercial system, it means deriving profits by making the best quality ofgoods or the
best quality ofservices available to the end-user (customer) at the best possible cost. Goal management
includes:
Assessment and dissolution of non-rational blocks to success Time management Frequent reconsideration (consistency checks) Feasibility checks Adjusting milestones and main-goal targetsMorten Lind and J.Rasmussen distinguish three fundamental categories of goals related to technological
system management:[citation needed]
1. Production goal2. Safety goal3. Economy goal
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An organizational goal-management solution ensures that individual employee goals and objectives align with
the vision and strategic goals of the entire organization. Goal-management provides organizations with a
mechanism to effectively communicate corporate goals and strategic objectives to each person across the
entire organization. The key consists of having it all emanate from a pivotal source[citation needed] and providing
each person with a clear, consistent organizational-goal message. With goal-management, every employee
understands how their efforts contribute to an enterprise's success.
An example of goal types in business management:
Consumer goals: this refers to supplying a product or service that the market/consumer wants Product goals: this refers to supplying a product outstanding compared to other products [citation needed]
perhaps due to the likes of quality, design, reliability and novelty
Operational goals: this refers to running the organization in such a way as to make the best use ofmanagement skills[citation needed], technology and resources
Secondary goals: this refers to goals which an organization does not regard as priorities
1.4) Organizational Goals
Every organization has various types of goals. "Organizational goals are desired states of affairs or
preferred results that organizations attempt to realize and achieve" (Amitai Etzioni). The idea of
organizational goals has a long history in economics, in which the classic position posits an entrepreneur or
ownership group which in turn establishes the goals of the firm. Alternatively, these goals may represent a
concesus arrived at by all members of the organization.One useful scheme for describing organizational goals
was provided by Charles Perrow. He has identified the following types of organizational goals:
* Officials goals. These goals are the formally stated goals of an organization described in its charter and
annual reports and they are emphasized in public statements by key executives.
* Operative goals are the outcomes that the organization actually seeks to attain through its operating policies
and activities.
* Operational goals Organizational goals define the performance objectives and desired behaviours within an
organization.
However, a typical social organization today has multiple stakeholders-groups of people, and consequently
has multiple goals, which, at times, may be mutually conflicting.
*According to Perrow, multiple organizational goals can be classified into four major categories:
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* Output goals. These goals are the "end product," such as consumer products, services, health care, or
education.
* System goals. System goals relate to theorganization itself, and they consist of such things as growth,
stability, profit, efficiency, market share.
* Product goals. Product goals consist of the characteristics of the goods or services, such as quality, styling,
uniqueness, variety, and price.
* Derived goals refer to the way an organization uses its power and influence to achieve other social or
political goals (such as employee welfare, community services, or political aims).
Henry Minztberg has provided a different classification of goals:
* System goals. There are four system goals: survival, efficiency, control, and growth.
* Formal goals. Formal goals are used by managers to tell everyone what they are doing.
* Ideological goals. These goals are what the people within the organization believe in.
* Shared personal goals. These goals are what people within the organization come together to accomplish
for their mutual benefit.
For most organizations, goals are constantly changing and members of the organizations must respond
appropriately, by formulating new goals as well as deciding which goals will be accomplished, and in whatorder.
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CHAPTER - 2
COMPANY PROFILE
2
2.1) Company Overview
Nokia Corporation is a Finnish multinational communications corporation, headquartered in
Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is focused on wireless
and wired telecommunications, with 128,445 employees in 120 countries, sales in more than
150 countries and global annual revenue ofEUR 50.7 billion and operating profit of 5.0 billion
as of 2008. It is the world's largest manufacturer ofmobile telephones: its global device market
market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).
Nokia's subsidiary Nokia Siemens telecommunications networkequipments, solutions and services. Navteq is
part of Nokia's strategy of focusing on mobile navigation.Nokia has sites for research and development,
manufacture and sales in many continents
Throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and
Employed 39,350 people in research and development, representing approximately 31% of the
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group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit of about 500 researchers, engineers and scientists. It has sites in seven countries:
Finland, China, India, Kenya, Switzerland, United Kingdom and United States. Besides its
NRCs, in 2001 Nokia founded (and owns) INdTNokia Institute of Technology, a R&D
institute located in Brazil. Nokia's production facilities are located at Espoo, Oulu and
Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Fleet, England;
Komrom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South
Korea. Nokia's Design Department remains in Salo, Finland.Nokia is a public limited liability
Helsinki, Frankfurt, and New Yorkstock exchanges. Nokia plays a very
large role in the economy of Finland: it is by far the largest Finnish company, accounting for
about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of
2007; a unique situation for an industrialized country. It is an important employer in Finland and
several small companies have grown into large ones as its partners and subcontractors. Nokia
increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the
Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.
Finns have ranked Nokia many times as the best Finnish brand and employer. The Nokia
brand, valued at $35.9 billion, is listed as the fifth most valuable global brand in Interbrand/
BusinessWeek's Best Global Brands list of 2008 (first non-US company. It is the number one
brand in Asia (as of 2007) and Europe (as of 2008), the 42nd most admirable company
worldwide in Fortune's World's Most Admired Companies list of 2009 (third in Network
Communications, seventh non-US company), and is the world's 88th largest company in
Fortune Global 500 list of 2008, up from 119 of the previous year. As of 2008, AMR
supply chain number two in the world.
3
One Of Nokias latest Model-Nokia
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2.2) History of Nokia
Nokia started by making paperthe original communications technology
The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill on the banks
of the Tammerkoski rapids, in southern Finland. A few years later, he built a second mill by the Nokianvirta
riverthe place that gave Nokia its name.
A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing process to Finland fromGermany.
It was a great success. Idestams invention won a bronze medal at the Paris World Exposition in 1867, and he
is considered to be the father of Finlands paper industry.
* Idestam named his company Nokia Ab in 1871
* Nokia Ab added electricity generation to its business activities in 1902
The Nokianvirta river is named after a dark, furry animal that was locally known as the Nokiaa type of
marten
2.2.3.1) Nokias first century: 1865-1967
The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river.
Between 1865 and 1967, the company would become a major industrial force; but it took a merger with acable company and a rubber firm to set the new Nokia Corporation on the path to electronics...
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1865: The birth of Nokia :Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-
western Finland, where the Nokia story begins.
5
1898: Finnish Rubber Works founded: Eduard Poln founds Finnish Rubber Works, which will later
become Nokia's rubber business.
6
1912: Finnish Cable Works founded: Arvid Wickstrm starts Finnish Cable Works, the foundation of
Nokia's cable and electronics businesses.
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1937: Verner Weckman, industry heavyweight: Former Olympic wrestler Verner Weckman becomes
President of Finnish Cable Works.
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1960: First electronics department: Cable Works establishes its first electronics department, selling and
operating computers.
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1962: First in-house electrical device:The Cable Works electronics department produces its first in-house
electrical device - a pulse analyzer for nuclear power plants.
\
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1967: The merger: Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create
Nokia Corporation
2.2.3.2) The move to mobile: 1968-1991
The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of
mobile communications. As European telecommunications markets were deregulated and mobile networks
became global, Nokia led the way with some iconic products...
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1979: Mobira Oy, early phone maker: Radio telephone company Mobira Oy begins life as a joint venture
between Nokia and leading Finnish television maker Salora.
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1981: The mobile era begins: Nordic Mobile Telephone (NMT), the first international mobile phonenetwork, is built.
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1982: Nokia makes its first digital telephone switch: The Nokia DX200, the companys first digital
telephone switch, goes into operation.
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1984: Mobira Talkman launched: Nokia launches the Mobira Talkman portable phone.
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1987: Mobira Citymanbirth of a classic: Nokia launches the Mobira Cityman, the first handheld NMT
phone.
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1991: GSMa new mobile standard opens up: Nokia equipment is used to make theworlds first GSM
call.
2.2.3.3) Mobile revolution: 1992-1999
In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important
strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone
industrys global boom and made it the world leader before the end of the decade...
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1992: Jorma Ollila becomes President and CEO: Jorma Ollila becomes President and CEO of
Nokia, focusing the company on telecommunications.
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1992: Nokias first GSM handset: Nokia launches its first GSM handset,
the Nokia 1011.
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19
1994: Nokia Tune is launched: Nokia launches the 2100, the first phone to feature the Nokia Tune.
20
1994: Worlds first satellite call:The worlds first satellite call is made, using a Nokia GSM handset.
21 1997: Snakea classic mobile game:The Nokia 6110 is the first phone to featureNokias
Snake game.
22 1998: Nokia leads the world: Nokia becomes the world leader in mobile phones.
23
1999: The Internet goes mobile:Nokia launches the world's first WAP handset, the Nokia 7110.
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2.2.3.4) Nokia Now: 2000-today
Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future...
24
2002: First 3G phone: Nokia launches its first 3G phone, the Nokia 6650.
25
2003:Nokia launches the N-Gage: Mobile gaming goes multiplayer with the N-Gage.
26
2005: The Nokia Nseries is born:Nokia introduces the next generation of multimedia devices, the Nokia
Nseries.
27
2005: The billionth Nokia phone is sold:Nokia sells its billionth phonea Nokia 1100in Nigeria. Global
mobile phone subscriptions pass 2 billion.
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28
2006: A new President and CEONokia today: Olli-Pekka Kallasvuo becomes Nokias President and
CEO; Jorma Ollila becomes Chairman of Nokias board. Nokia and Siemens announce plans for Nokia
Siemens Networks.
29
2007: Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences
operations. Nokia launches Ovi, its new internet services brand.
30
2008:Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an
integrated business segment, Devices & Services.
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2.3) LOGOS of NOKIA over the Period of time
31
Nokia Company logo. Founded in Tampere in 1865, incorporated inNokia in 1871.
32
The brand logo ofFinnish Rubber Works, founded in Helsinki in 1898. Logo from 1965 to 1966.
33
The Nokia Corporation "arrows" logo, used before the "Connecting People" logo.
34
Nokia introduced its"Connecting People"advertising slogan, coined by Ove Strandberg and used since
1992.
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2.4) FIRST MOBILE PHONE
35
The Mobira Cityman 200, Nokia's NMT-900 mobile phone from the early 1990s.
The technologies that preceded modern cellular mobile telephony systems were the various
"0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and
military mobile radio communications technology since the 1960s. Since 1964, Nokia had
developed VHF-radio simultaneously with Salora Oy. In 1966, Nokia and Salora started
developing the ARP standard (which stands for Autoradiopuhelin, or "car radio phone"), a car-
based mobile radio telephony system and the first commercially operated public mobile phone
network in Finland. It went online in 1971 and offered 100% coverage in 1978.In 1979, the
merger of these two companies resulted in the establishment of Mobira Oy. Mobira began
developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the
first-generation, first fully-automatic cellular phone system that went online in 1981. In 1982,
Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.
Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader MikhailGorbachev
was pictured using a Mobira Cityman to make a call from Helsinki to his communications
minister in Moscow. This led to the phone's nickname of the "Gorba".In 1988, Jorma Nieminen,
resigning from the post ofCEO of the mobile phone unit, along with two other employees from
the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to
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GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.
36
NATURE OF BUSINESS
NOKIA company is the manufacturer and exporter of electronics.
It manufacture and export products like mobile phones,smartphones,multimedia
computers,network services and software online services
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2.5) NOKIA BOARD OF DIRECTORS
37
Chairman Jorma Ollila (Chairman since 1999)
Chairman of the Board of Directors of Nokia Corporation.
Chairman of the Board of Directors of Royal Dutch Shell Plc.
38 39Dame Marjorie Scardino, Stephen Elop
Vice Chairman (since 1999) President and CEO of Nokia Corp.
Chairman of the Nokia Leadership Team.
40 41
Dr. Bengt HolmstrmProf. Dr. Henning Kagermann
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42 43
Per Karlsson Jouko Karvinen
Member of the Personnel Committee. Member of the Audit Committee
44 45
Helge Lund Isbel Marey- Semper
Member of the Personnel Committee. Member of the Audit Committee.
46 47
Risto Siilasmaa Kari Stadigh
Chairman of the Audit Committee. Member of the Personnel Committee.
Member of the Corporate Governance
and Nomination Committee.
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2.6) Nokia head office
Keilalahdentie 2-4
P.O. Box 226
FIN-00045 Nokia Group
Finland
Tel. +358 (0) 7180 08000
Fax. +358 7180 34003
.
Nokia IndiaSP Infocity,
Industrial Plot no. 243
Udyog Vihar, Phase 1,
Dundahera, Gurgaon,
Haryana - 122016.
INDIA
Tel. +91 124 4833000Fax +91 124 4833099
NOKIA FACTORY LOCATION
HARYANA
Nokia India Pvt. Ltd.
1st Floor, Tower A&B,
Cybergreen, DLF Cyber City
Sector 25A, Gurgaon,
Haryana122002.
India
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MUMBAI
Nokia India Pvt. Ltd
A Wing 1st Floor, Glenmark House,
HDO Compound,
Off Western Express Highway,
Andheri East,
Mumbai400099.
Tel. 022 67769000
KOLKOTA
Nokia India Pvt Ltd
DN-62, Millenium City,
Tower-B, Sector-5,
Salt Lake City
Kolkata-700091
Tel. +91 33 4006 2264
Fax +91 33 4006 2260
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BANGALORE
Nokia India Pvt Ltd
Prestige Tech Park,
#2A, Jupiter block, 3rd floor,Sarjapur,
Marathahalli Ring Road, Kadabeesanahalli,
Bangalore - 560 087.
Tel: 40159000
2.7) NOKIA SUBSIDIARIES
2.5.1) Nokia Siemens Networks- Nokia Siemens Networks is a European company, provider of data
networking and telecommunications equipment. It is a joint venture between Nokia of Finland and Siemens of
Germany.The new company was announced on 19 June 2006. Nokia Siemens Networks was officially
launched at the 3GSM World Congress in Barcelona in February 2007. Nokia Siemens Networks then began
full operations on 1 April 2007 and has its headquarters in Espoo, Greater Helsinki,Finland]. Nokia Siemens
Networks has operations in some 150 countries serving over 600 customers. On 19 July 2010, the company
acquired the wireless-network equipment division ofMotorola.
In January 2008 Nokia Siemens Networks acquired Israeli company Atrica, a company that builds carrier-class Ethernet transport systems for metro networks. The official release did not disclose terms, however
they are thought to be in the region of $100 million.
In February 2010 Nokia Siemens Networks acquired Apertio, Bristol UK-based, a mobile networkcustomer management tools provider for 140 million.With this acquisition Nokia Siemens Networks
gained customers in the subscriber management area including Orange, T-
Mobile, O2, Vodafone and Hutchison 3G.
In July 2010, Nokia Siemens Networks acquired the wireless-network equipment division of Motorola.
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2.7.2) NAVTEQ - Navigation Technologies Corporation
Navteq is a Chicago, Illinois-based provider ofGeographic Information Systems (GIS) data and is a dominant
company in providing the base electronic navigable maps. The company is a wholly owned subsidiary
ofNokia but operates independently.
On October 1, 2007, it was announced that Nokia would acquire Navteq in a deal valued at an estimated $8.1
billion (5.7 billion). Navteq shareholders approved the deal in December 2007. TheEuropean Commission in
July 2008 ruled the deal did not violate anti-trust rules clearing the way for closing the deal.
Navteq's principal rival Tele Atlas was acquired by TomTom in 2008.
2.7.3) Symbian- Symbian is a mobile operating system (OS) and computing platform designedfor smartphones and currently maintained by Nokia. The Symbian platform is the successor to Symbian OS
and Nokia Series 60; unlike Symbian OS, which needed an additional user interface system, Symbian includes
a user interface component based on S60 5th Edition. The latest version, Symbian^3, was officially released in
Q4 2010, first used in the Nokia N8.
The Symbian platform was created by merging and integrating software assets contributed by Nokia, NTT
DoCoMo, Sony Ericsson and Symbian Ltd., including Symbian OS assets at its core, the S60 platform, and
parts of the UIQ and MOAP(S) user interfaces.
In December 2008, Nokia bought Symbian Ltd., the company behind Symbian OS; consequently, Nokia
became the major contributor to Symbian's code, since it then possessed the development resources for both
the Symbian OS core and the user interface. Since then Nokia has been maintaining its own code repository
for the platform development, regularly releasing its development to the public repository.
2.7.4) Vertu Mobile Phone - Vertu is a British-based manufacturer and retailer of luxury mobile phones.
Formerly a wholly owned subsidiary, the business is now an independently run division of the Finnish mobile
phone manufacturer Nokia. Vertu designs and manufactures luxury mobile phones in the same vein as luxury
watch manufacturers like Rolex, IWC and Patek Philippe. The most expensive model it has ever made is the
Signature Cobra, at 213,000 (~$310,000); the most expensive regular model is the Signature Diamond at
55,000 (~$83,000). Prices start at 3500 for the Constellation model.[1]
Other models include: Ascent, Constellation, Ascent Ti, Ascent 2010, Ayxta and Quest. The standard Ascentmodels come in many different colours, such as: Black, Brown, Red and Orange. The Special Edition models
come in White, Azure Blue and Pink. The Summer Collection models come in Strawberry Red and White.
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CHAPTER-3
NOKIA
Mission and Vision
Nokias mission is simple, Connecting People.
3.1) The road ahead
Until now, development in mobile industry has mainly been a matter of delivering connectionsmore, faster,
cheaper, and more efficient. This is still important. The connectivity explosion continues, and by 2015
Nokias R& D knows that 5 billion people and further billions of devices will be connected. So, Nokia must
continue applying our expertise in order to deliver on the reality of hundred-fold increases in traffic.
Towards an ecosystem of partners
Today, however, Nokia is also focusing like never before on delivering qualityquality experience. Nokia
can see that a more open, collaborative and customer-centric way of working could bring so much more value
to billions of individuals, and to millions of businesses. Nokia at Nokia Siemens Networks must drive that
change by leaving the closed and proprietary mindset behind, and leading the way in a new spirit of openness
and collaboration.
Our customers challenges
Our customers, Communications Service Providers (CSPs), face challenges on all fronts: the need to increase
efficiency keeps pressure on capital and operational costs; the dramatic rise in traffic due to the proliferation
of internet applications demands new business models for monetization; and an ever fiercer competitive
climate is challenging CSPs to prove they can retain the customers they have and win back any they might
have lost. Nokia Siemens Networks will play a vital role in helping CSPs meet these challenges. This role is
our missionits about building value.
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48 49
Our mission
by improving efficiency and experience
Nokia have built value by addressing efficiency, and Nokia continue to do that. But Nokia also need to
address the customers need for a better experience, because its experience that builds relationships, and
relationships that build value.
Our vision
Nokiabelieve that CSPs can ultimately enable and deliver a segment of one where they can define and
enhance the service experience for each and every individual. Customers whose communications experience
fits and works for them dont change operators. And operators who can devote themselves to enriching the
customers experience build stronger, more lasting and profitable customer relationships.
The individual communications experience is the greatest value a communications service provider can
deliver to their customer, and so its the greatest value Nokia can support communications service providers in
delivering.
The future of service is largely network-based. Internet applications hosted in the cloud (email, social
networking sites, corporate service and communication tools, etc.), already account for a large proportion of
the services people access every day. Every day, therefore, quality of network experience has more and more
to do with quality of life.Ultimately every service is delivered to an individual. And those individuals will
benefit from the services being delivered in a way that fits their personal needs and desires. This experience
cannot be the privilege of the few. It must be as true for customers in emerging countries with just a dollar tospend, as for businesses in developed countries with greater resources, and for the trillions of devices that
make up the Internet of Things.
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Our vision acknowledges that communications service providers need to manage this complexity wisely,
ensuring the necessary security and authentication for users, while having the ability to profitably deliver a
customized experience, based on a persons locations, context, device, usage patterns and preferences.Our
vision guides our mission, and our mission is to build more valuable customer relationships. The individual
communications experience builds more valuable customer relationships.
NOKIAs STRATEGY
Nokias strategic intent is to build great mobile products.
Nokia job is to enable billions of people everywhere to get more of lifes opportunities through mobile.
News - new strategy, new leadership, new operational structure
Nokia has recently outlined its new strategic direction, including changes in leadership and operational
structure to accelerate the companys speed of execution in a dynamic competitive environment.
Major elements of the new strategy include:
*Plans for a broad strategic partnership with Microsoft to jointly build a new winning mobile ecosystem.
*A renewed approach to capture volume and value growth to connect the next billion to the Internet in
developing growth markets
*Focused investments in next-generation disruptive technologies
*A new leadership team and organizational structure with a clear focus on speed, results and accountability
Nokia is at a critical juncture, where significant change is necessary and inevitable in our journey forward,
said Stephen Elop, Nokia President and CEO. Today, Nokia are accelerating that change through a new path,
aimed at regaining our smartphone leadership, reinforcing our mobile device platform and realizing our
investments in the future.
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The strategy
Nokias strategy is about investing in and ensuring Nokias future. I have incredible optimism because I can
see fresh opportunity for us to innovate, to differentiate, to build great mobile products, like never before, and
at a speed that will surpass what Nokia have accomplished in the past, Elop said. Nokia are going forward.
Nokia are not going backwards. Nokia have a strategy. Nokia have a path. Nokia have a future. And Nokia
can deliver great mobile products. And despite all of these changes, Nokia remain true to our mission, that of
Connecting People.
Regaining leadership in the smartphone spaceJuly 30 Times Of India Article
Apple and Samsung Electronics ended struggling Nokias 15 year old reign at the top of th smartphone
sales rankings in the second quarter. Apple Sold a record 20.3 million iphone June 2011 quarter and
Samsung sold 19 million smartphones well ahead of Nokias 16.7 million.
Nokia plans to form a broad strategic partnership with Microsoft to jointly build a global ecosystem that
creates opportunities beyond anything that currently exists. It brings together highly complementary assets
and competences. The Nokia-Microsoft ecosystem targets to deliver differentiated and innovative products
with unrivalled scale in product breadth, geographical reach, and brand identity.Nokia would adopt WindowsPhone as its primary smartphone platform, helping drive and define the future of the platform by leveraging
its expertise on hardware optimization, software customization, and language support. Nokia and Microsoft
would also combine services assets to drive innovation. Nokia Maps, for example, would be at the heart of
key Microsoft assets such as Bing and AdCenter, and Nokias application and content store would be
integrated into Microsoft Marketplace. Under the proposed partnership, Microsoft would provide developer
tools, making it easier for application developers to leverage Nokias global scale.
While Nokia transitions to the Windows Phone platform, Symbian will continue to offer considerable value to
Nokia, to our customers, developers and consumers. 200 million people use Symbian globally, and Nokia will
modernize the platform through investments in completely new devices with new features, hardware
improvements such as GHz+ processing capabilities and significantly increased graphics speed, as well as
software improvements.
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Maintaining volume and value leadership in the mobile phones space
In feature phones, Nokias strategy is to leverage its innovation and strength in growth markets to connect the
next billion people to their first Internet and application experience. By providing compelling and affordable,
localized mobile experiences, particularly to the emerging markets, our ambition is to bring the next billion
online. Nokia will continue the renewal of our Series 40 platform in QWERTY, touch&type, dual SIM, Nokia
services, including Maps, Browser, Life Tools, Web apps and Money. Nokia are also investing in the future;
developing assets (platform, software, apps), which will bring a modern mobile experience to the mobile
phone consumers and enable business opportunities for developers. These investments will be especially
focused on growth economies.
Sustaining future as the worlds leading mobile manufacturer
To make sure Nokia get ahead of the game on industry innovation evolution, our MeeGo efforts will transition
into an ongoing long-term market exploration of the next generation of devices, platforms and user
experiences.
New leadership team, operational structure and governance to drive the changein strategy
This new strategy is supported by significant changes in Nokias leadership, operational structure and
approach. The renewed governance will expedite decision-making and improve time-to-market of products
and innovations, placing a heavy focus on results, speed and accountability. The new strategy and operational
structure are expected to have significant impact to Nokia operations and personnel.
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CHAPTER - 4
PRODUCTS AND MARKETING STRATEGIES
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4.1) NOKIA BRAND
Nokia has emerged as the Most Trusted Brand in India in the annual survey
undertaken by Brand Equity of The Economic Times, India's largest and the world's second
most read financial daily.
Nokia was ranked 71 in 2005, when it first made an appearance in the Brand Equity Most
Trusted Brand survey. Since then, the company has consistently gained ground - from No. 44 in
2006 to No. 4 in 2007, and finally to No. 1 in 2008.
Nokia Group the Finland-based manufacturer of mobile phones, has been steadily working on
its corporate brand name and the management of consumer perceptions over the last few years.
Its efforts have paid off, because it is now the number one brand in many markets around the
world, effectively dislodgingMotorola from that position. The brand has been built using the
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principles described above, and has been consistently well managed across all markets. Nokia
has succeeded in lending personality to its products, without even giving them names. In other
words, it has not created any sub-brands but has concentrated on the corporate brand, giving
individual products a generic brand personality. Only numeric descriptors are used for the
products, which do not even appear on the product themselves. Such is the strength of the
corporate brand.Nokia has suceeded where other big brand names have so far failed, chiefly
by putting across the human face technology-taking and dominating the emotional high ground.
It has done so in the following way.
51
Nokia has detailed many personality characteristics for its brand, but employees do not have to
remember every characteristic. They do, however, have to remember the overall impression of
the list of attributes, as you would when thinking about someone you have met. As the focus is
on customer relationships, theNokia personality is like a trusted friend. Building friendship and
trust is at the heart of theNokia brand. And the human dimension created by the brand
personality carries over into the positioning strategy for the brand.
Nokia is a great brand because it knows that the essence of the brand needs to be reflected in
everything the company does, especially those that impact the consumer. Product design is
clearly critical to the success of the brand, but how doesNokia manage to inject personality
into product design? The answer is that it gives a great deal of thought to how the user of its
phones will experience the brand, and how it can make that experience reflect its brand
character. The large display screen, for example, is the "face" of the phone.Nokia designers
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describe it as the "eye into the soul of the product". The shape of phones is curvy and easy
to hold. The faceplates and their different colors can be changed to fit the personality, lifestyle,
and mood of the user. The soft key touch pads also add to the feeling of friendliness, expressing
the brand personality. Product design focuses on the consumer and his needs, and is summed
up in the slogan, "human technology."Nokia now accounts for over half of the value of the
Finland stock market, and has taken huge market share from its competitiors. According to one
brand valuation study carried out in mid-1999, it ranked 11th on the world's most valuable
brand list, making it the highest-ranking brand.
4.2) NOKIA PRODCTS
52
1 Mobile phones
1.1 Classic seriesThe Mobira series 1.2 Original series 1.3 10009000 series
1.3.1 Nokia 1000 seriesUltrabasic series- The Nokia 1000 series include Nokia's most affordablephones. They are mostly targeted towards developing countries and users who do not require advanced
features beyond making calls and SMS text messages, alarm clock, reminders, etc.
1.3.2 Nokia 2000 seriesBasic series- Like the 1000 series, the 2000 series are entry-level phones.However, the 2000 series generally contain more advanced features than the 1000 series; many new
2000 series phones feature color screens and some feature cameras, Bluetooth and even A-
GPS, GPS such as in the case of the Nokia 2710. The 2000 series slot between the 1000 and 3000
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series phones in terms of features.
1.3.3 Nokia 3000 seriesExpression series- The Nokia 3000 series are mostly mid-range phonestargeted towards the youth market. Some of the models in this series are targeted towards
young male users, in contrast with the more unisex business-oriented 6000 series and the more
feminine fashion-oriented 7000 series. Feature wise, the 3000 series slot between the 2000 and 6000
series.
1.3.4 Nokia 5000 seriesActive series- The Nokia 5000 series are similar in features to the 3000series, but often contain more features towards active individuals. Many of the 5000 series phones
feature a rugged construction or contain extra features for music playback.
1.3.5 Nokia 6000 seriesClassic Business series- The Nokia 6000 series is Nokia's largest family ofphones. It consists mostly of mid-range to high-end phones containing a high amount of features. The
6000 series is notable for their conservative, unisex designs, which make them popular among
business users.
1.3.6 Nokia 7000 seriesFashion and Experimental series- The Nokia 7000 series is a family ofNokia phones with two uses. Most phones in the 7000 series are targeted towards fashion-conscious
users, particularly towards women. Some phones in this family also test new features. The 7000 series
are considered to be a more consumer-oriented family of phones when contrasted to the business-
oriented 6000 series.
1.3.7 Nokia 8000 seriesPremium series- This series is characterized by ergonomics andattractiveness. The internals of the phone are similar to those in different series and so on that level
offer nothing particularly different, however the physical handset itself offers a level of functionality
which appeals to users who focus on ergonomics. The front slide keypad covers offered a pseudo-flip
that at the time Nokia were unwilling to make. Materials used increased the cost and hence exclusivity
of these handsets.
1.3.8 Nokia 9000 seriesCommunicator series (discontinued)- The Nokia 9000 series wasreserved for the Communicator series, but the latest Communicator, the E90 Communicator, is
an Eseries phone.
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1.4) Modern series (C/E/N/X)
Nokia Cseries- The Nokia Cseries is an affordable series optimized for social networking and sharing.
Nokia Eseries-The Nokia Eseries is an enterprise-class series and includes business-optimized smartphones.
Nokia Nseries-The Nokia Nseries is Nokia's most advanced smartphone series. It is for people who wish tohave advanced multimedia and connectivity features and as many other features as possible into one device.
Nokia Xseries-The Nokia Xseries targets a young audience with a focus on music and entertainment.
Nokia N-GageMobile gaming devices -The N-Gage is a mobile telephone and handheld game
system by Nokia, based on the Nokia Series 60 platform, released in October 2003. It began sales on October7, 2003. The N-Gage QD replaced the original N-Gage in 2004.
1.5) VertuLuxury phones- Vertu is a British-based manufacturer and retailer of luxury mobile
phones. Formerly a wholly owned subsidiary, the business is now an independently run division of the
Finnish mobile phone manufacturer Nokia.
1.6 Concept phones- The Nokia Morph is a concept mobile phone created by Finnish company Nokia.
The concept, which was unveiled on February 25, 2008 at The Museum of Modern Art in New York City,
was the product of a joint study into the future of mobile phones by the Nokia Research Center and
the University of Cambridge's Nanoscience Centre.
1.7 Cardphones (PCMCIA)
2 Other products
2.1 Digital television 2.2 ADSL modems 2.3 WLAN products 2.4 Telephone switches 2.5 GPS products 2.6 TETRA
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2.7 Internet tablets 2.8 Security solutions 2.9 Software solutions
2.10 Military communications
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The Nokia 6300, a member of the Nokia 6000 series, Nokia's largest family of phones
4.3) NOKIA TARGET CUSTOMERS
Nokia announced the launch of Here and Now, an expansion of its Nokia.mobi mobile web
portal promising news and entertainment geared for consumers between the ages of 18 and 35.
According to Nokia, Here and Now will feature world news, music downloads and celebrity
buzz from content partners including Reuters andRolling Stone, as well as information on the
handset giant's services and products. Here and Now is part of the Nokia Media Network
premium mobile advertising effort, which extends across top-tier publishers as well as operator
partners including Sprint and Airtel--existing advertisers include BMW, American Express and
Universal Pictures. Nokia adds the Nokia.mobi portal is now bookmarked in all of its new
devices.
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Concurrent with the announcement that it will cut hundreds of jobs, reorganize its Nokia
Research Center and shutter its Turku, Finland office, handset giant Nokia said it will introduce
a range of affordable mobile devices and new web services targeting consumers in emerging
markets. Citing demand based on customer feedback, Nokia said it will initially focus on email,
agriculture and education: Mail on Ovi, enabled on Nokia Series 40 devices, offers users email
accounts directly on the mobile phone sans PC access. Mail on Ovi trials will launch in select
markets by the end of November, with a global rollout planned across all currently shipping
Nokia Series 40 devices by the end of 2008.
Nokia will also introduce Nokia Life Tools, a series of agriculture information and education
applications created especially for rural and small town communities in emerging markets. The
services boast an icon-based, graphically rich user interface complete with tables that can
display information simultaneously in two languages. Nokia adds that related SMS-based
services will guarantee Life Tools services work anywhere within network range, without the
complexities of additional settings or the need for GPRS coverage. Nokia plans to launch the
service in the first half of 2009. In addition, Nokia announced the launch of seven new budget-
priced mobile phones, including the Nokia 7100 Supernova and the Nokia 5130 XpressMusic.
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4.4) NOKIA COMPETITORS
Brand
Units Sold
(in
millions)
Market
share
2nd quarter
Market share
1st quarter,
2009
QoQ Change (%)
Market
share
2nd quarter,
2009
YoY Change
(%)
Nokia 103.2 40.47 % 40.43 % 0.039999999999999 % 41.08 % -0.61 %
Samsung 52.3 20.51 % 19.91 % 0.6 % 15.39 % 5.12 %
LG 29.8 11.69 % 9.83 % 1.86 % 9.33 % 2.36 %
Motorola 14.9 5.84 % 6.39 % -0.55 % 9.46 % -3.62 %
Sony
Ericsson13.8 5.41 % 6.3 % -0.89 % 8.22 % -2.81 %
Others 41 16.08 % 17.14 % -1.06 % 16.53 % -0.45 %
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Handset market share for 1st quarter, 2009
Brand
Units Sold
(in
millions)
Market share
1st quarter,
2009
Market share
4th quarter,
2008
QoQ Change
(%)
Market share
1st quarter,
2008
YoY Change
(%)
Nokia 93 40.43 % 41.93 % -1.5 % 41.1 % -0.67 %
Samsung 45.8 19.91 % 14.54 % 5.37 % 16.48 % 3.43 %
LG 22.6 9.83 % 7.44 % 2.39 % 8.68 % 1.15 %
Motorola 14.7 6.39 % 6.51 % -0.12 % 9.75 % -3.36 %
Sony
Ericsson14.5 6.3 % 7.6 % -1.3 % 7.94 % -1.64 %
Blackberry 7.8 3.39 % 0 % 3.39 % 0 % 3.39 %
Apple 3.8 1.65 % 0 % 1.65 % 0 % 1.65 %
Others 27.8 12.09 % 15.32 % -3.23 % 17.1 % -5.01 %
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4.5) NOKIA MARKETING STRATEGIES
Nokia is a communications based company, which focuses on mobile telephone technology.
When mobile phones first became available on the market the models were very basic with the
best technology being SMS messaging (sending written "text messages" from one phone to
another). Then the next advance in technology was being able to put different faces on your
phone (different style covers for the front and back of your mobile device) and after that the
technological advances have come thick and fast, with advances such as:
* MMS
* WAP (internet)
* Polyphonic ringtones
* Predictive SMS (where the phone will finish off a word for you)
* Camera phones and
* Video recorders
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A businesses success is based on whether they can give the customer what they want and when
they want it. Nokia market research involves the collection, collation and analysis of data
relating to the consumption and marketing of relevant products. The purpose of market research
is really to find out whether there is a gap in the market for the product or service or whether
it can make the customers available the product through persuasive adverting. . In order to
classify the wants and needs of the consuming population, nokia gather information on the
following:
Consumer behaviour- How do customers react to advertising? What are their reactions to
new and developed products?
Buying patterns and sales trends- Organizations need to look at how buying trends and
patterns are affected by class, gender, religion and region. They also need to understand how
buying patterns change over time and what markets are expanding and are worth trying to enter
and obviously which markets are contracting and companies shouldn't aim to enter into.
Consumer preferences- What customers are looking for in a product, for example, style,
colour, technology, amount of outlets, customer service and promotional styles.
Activities of competitors in the market- Nokia examines how their rivals are adapting
their prices and products to meet the consumers need's, how well the rivals are selling and what
marketing strategies they are using.
Market research supply nokia with all the information they require about consumers
preferences, whether they buy certain products, what design features are preferable and what kind of retail
outfits are most frequently used for purchasing certain products.
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Nokia has emerged as the Most Trusted Brand in India in the annual survey
undertaken by Brand Equity of The Economic Times, India's largest and the world's second
most read financial daily.
Nokia was ranked 71 in 2005, when it first made an appearance in the Brand Equity Most
Trusted Brand survey. Since then, the company has consistently gained ground - from No. 44 in
2006 to No. 4 in 2007, and finally to No. 1 in 2008.
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CHAPTER -4
FINANCIAL ANALYSIS
NOKIA TURNOVER
Nokia achieves record quarterly and annual device volumes, net sales and EPS.
Net sales grew 13% in Q4 and 20% in 2006 .
EPS grew 28% in Q4 and 27% in 2006 .
Nokia Board of Directors will propose a dividend of EUR 0.43 per share for 2006 (EUR 0.37
per share for 2005).
Non-IFRS first quarter 2010 results1
EUR million Q1/2010 Q1/2009
YoY
Change Q4/2009
QoQ