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NOKIA CONNECTING PEOPLE

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TOPIC-NOKIA

Submitted to Rohit vij

Submitted by Sanjay giri goswami Regd no-10908015 Roll no-B48

NOKIA CONNECTING PEOPLE


Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the Worlds largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of 42 billion and operating profit of 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones. Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. 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 a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics. From 1968-91, 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. 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, the CEO put Nokia at the head of the mobile telephone industrys global boom and made it the world leader before the end of the decade. And in the current century Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future.

Vision
Nokias vision is simply Connecting People

Mission statement
Nokia Corporation defines its mission to connect people through mobile phone technology and quotes its mission statement as follows Our strategic intent is to build great mobile products our job is to enable billions of people everywhere to get connected

Goals and Objectives


Nokias Goals and objectives in the market are as follows To build great mobile products. To help people feel near to what matters to them. To enable billions of people to get more of lifes opportunities through mobiles. To capture volume and value growth to connect the next billion people to the Internet in developing growth markets.

Merchandise mix of Nokia


1-Touch and Type the benefits of each

Touch Millions of people world-wide have now fallen in love with the touch screen. They enjoy having one touch access to the things they use most on their phone including their apps, notifications and web browser. Navigation is easier and faster on your touch screen, apps are simpler to manage and the text is easy to access and interact with.

Type Many millions of people are very attached to their phone keypad. That's because the buttons are familiar and easy to use day to day especially for messaging services like texting, emailing and chatting. And of course the trusty old keypad is a very simple and convenient way of making your phone calls.

2- Dual sim phone

Dual SIM cards give you all the convenience of having two mobile phones in one. It's a great way of saving money by combining two different plans or service providers, so you can have a work and home account on the same device or share the phone with someone else.

How it works is simple. You keep one SIM inside the phone, then swap between multiple SIMs using the slot on the side of the handset. Your phone remembers messaging and other settings for up to five SIMs, depending on your handset. You can switch easily between two SIMs inside your phone with one touch of a button. 3- Easy to use, and easy on the pocket

A phone that gives you so much extra value doesn't have to be expensive. But actually our Nokia dual SIM phones are available at very affordable prices. These phones are also packed with many other great features. You can take all your music wherever you go with a built-in MP3 player, listen to FM radio on speakers or headphones, and improve the quality of your everyday life with useful information on agriculture, health and education using Nokia Life Tools.

4-Smartphones

Smarter Smartphone experience with Symbian Belle

Nokia Smartphone just got more responsive, fast, fun and easy to use with Symbian Belle. Share photos and contacts faster. Play multi-player games. Just Tap with NFC. Multi-task with ease; thanks to the increased processing power in the New Nokia Smart phones with Belle. Get all the updates from your social world in one screen. Customize your six home screens with what's most important to you. Keep your favourites within easy reach through live widgets. Access all your notifications by simply sliding down a simple tab with the new pull-down taskbar.

Assortment of Smartphones

Smarter Smartphone experience with Symbian Belle

Nokia Smartphones just got more responsive, fast, fun and easy to use with Symbian Belle. Share photos and contacts faster. Play multi-player games. Just Tap with NFC. Multi-task with ease; thanks to the increased processing power in the New Nokia Smartphones with Belle. Get all the updates from your social world in one screen. Customize your six home screens with what's most important to you. Keep your favourites within easy reach through live widgets. Access all your notifications by simply sliding down a simple tab with the new pull-down taskbar.

Smartphones makes browsing, sharing, and connecting faster and easier. With Live Tiles, People Hub, and Internet Explorer 9, you'll never miss an update or an opportunity to post what's going on in your world. With an engaging interface and intuitive design, you'll be just a few taps away from enjoying the people and things that matter most. People Hub In Smartphones You'll find everyone in one place with the People Hub - all your Facebook, LinkedIn, Twitter, and email contacts are there and easy to reach.

Balance sheet of Nokia


12/31/11 Assets

Cash & Equivalents Receivables Notes Receivable Inventories Other Current Assets Total Current Assets Net Property & Equipment Investments & Advances Other Non-Current Assets Deferred Charges Intangibles Deposits & Other Assets Total Assets Liabilities & Shareholder's Equity Notes Payable Accounts Payable Current Portion Long-Term Debt Current Portion Capital Leases Accrued Expenses Income Taxes Payable Other Current Liabilities Total Current Liabilities Mortgages Deferred Taxes/Income Convertible Debt Long-Term Debt Non-Current Capital Leases Other Non-Current Liabilities Minority Interest (Liabilities) Total Liabilities Shareholder's Equity

15,184.29 10,001.69 0 3,245.22 7,022.49 35,453.72 2,565.53 986.10 137.88 2,582.25 8,696.64 4.10 50,426.32

1,385.83 7,704.96 497.22 0 10,349.89 0 4,358.07 24,296 0 1,114.24 0 5,528.02 0 105.85 0 31,044.11

Preferred Stock Common Stock (Par) Capital Surplus Retained Earnings Other Equity Treasury Stock Total Shareholder's Equity Total Liabilities & Shareholder's Equity Total Common Equity Shares Outstanding Book Value Per Share

0 342.62 504.19 10,913.98 8,518.30 896.96 19,382.20 50,426.32 19,382.20 3,744.90 5.18

Financial audit
The finance Department provides the basic financial resources to other departments and is responsible for allocating budgets to the company so it is really very important to analyze an organizations financial strengths and weaknesses because all the operations of the business are dependent on them. Nokia Corporation in this case has the following strengths and weaknesses. Nokia Corporation has a Net Working capital of $3.18 billion which is above of what any organization in the industry maintains so it gives Nokia a Financial strength to tackle any sort of uncertainty in the market and also gives the chance to grab any temporary opportunity in the market. Also the companys financial statements for the year 2010 shows that the company has total assets of worth 39,123 million Euros which shows that the organization is very strong financially.

Nokia Corporation reported sales of about 4.2 billion euros in 2010 which has risen from the sales figure in 2009 which is again a strong financial strength as it is greater than its biggest competitors such as Motorola which reported sales of 1.9 billion euros. The Nokia Corporation is weak than its competitors in terms of net earnings per share as Nokia Corporations average EPS is 0.628 whereas Motorola Incs average EPS is 0.805 which makes it less attractive for investors as compared to its investors. Also Motorola Inc. is more efficient in making its short term payments with a current ratio of 1.99, as compared to Nokia Corporation which has a current ratio of 1.6. Nokia Corporations five year average of total debt to equity ratio is about 0.25 which shows that for each $1 borrowed from shareholders the company has 25 cents from its creditors which tells us about the investment decision of Nokia Corporation that it does not rely mostly on debt and the firm faces a fewer risk which is a strength for the company. Nokia Corporation has an interest coverage ratio of 7.4 times which means that it generates enough income in an accounting period to pay off 7.4 times of its debts which again reduces the chances of Nokia Corporations Bankruptcy and is in its favor. On average of the last 5 year record Nokia Corporation has a net profit margin of 8.1% which ensures availability of greater amount of finance at the time of need for the organization.

Strategy
Nokia Corporation has created an alliance with the Microsoft Company through which it has gained the opportunity to launch new mobile phones in the market which would be based on Windows 7 operating system. Nokia Corporation has basically adopted the strategy of New Product Development and Horizontal Integration Strategy through which Nokia Corporation plans to launch new mobile phones with core 2 duo processors and about 1.0-1.5 GB of Ram and full HD 1080p video recording cameras and in a new slim design and will use Windows 7 operating system as its basic operating system and these cell phones will contain all the features of an official Windows 7 which already has a great acceptance in the World to compete in the market against other mobile phone manufacturers in the world as well as the growing Android (OS).

Strategic Goal
Through adopting this strategy Nokia Corporation has the opportunity to gain access of the lost market share and to maintain its position as the # 1 mobile phone manufacturer in the world and to compete against the other mobile phone manufacturing companies operating in the world. Following are the main strategic goals of this strategy Nokia would develop new mobile phones that will be just equal to a mini laptop as the operating system would be Windows 7 which is the most

acknowledged operating system in the world and thus through this Nokia will regain its lost market share. Through applying this strategy Nokia Corporation would be able to minimize its dependency on the Symbian software and thus would provide its customers with a new a fast operating system. Also through adopting this strategy Nokia Corporation would be able to efficiently compete against its competitors in the market and with the new Android operating system that is currently the worlds fastest growing and acknowledgeable mobile phone operating system.

Samsung
Samsung has ambitious plans to become the worlds leading phone maker and displace Nokia, the current title holder in three years. With Android and Windows Phone 7 on the riseSamsung is a big OEM backer of these two Smartphone operating systemsand Symbians relevance being questioned, Nokia will need to make some major strategy decisions to maintain its position. Unwired View says that Samsung is looking to increase its high-profit smartphone and premium devices market as it tackles worldwide market share. The phone-maker is looking to have smartphones and premium mobile devices account for half of its mobile productions, placing more emphasis on smarter devices. Another product category that Samsung will focus on is the tablet market. The company will be increasing production at factories in China, Vietnam, and Brazil to meet demands. Factories in Samsungs home South Korea will be focused on high-end products. In its battle with other phone makers, Samsungs control of the vertical components market may give it a competitive advantage over rivals like Nokia. Samsung makes displays, memory chips, mobile processors, and other components, which can help Samsung Mobile, the phone and tablet division of Samsung, be price competitive against rivals Samsung Electronics continued to widen its lead over Nokia and others in the Indian smartphone market even as RIM-Blackberry saw a slight comeback in November, the latest 'Monthly Mobile Handsets Market Review' published by CyberMedia Research reveals. Despite the strong showing by Samsung, Nokia is likely to end up as the top smartphone maker in India for the full year, the report showed. According to the report, based on data collected from stockists, distributors and others, about 7% of all phones sold in India during November were smartphones.

Smartphones are so called because, like computers, they tend to run on independent and fairly complex operating systems or software, often provided by specialists like Google (Android) and Microsoft. The smartphone segment is the most lucrative and, despite accounting for just around 7% of the total volumes, is likely to bring in as much as 30% to 40% of the total revenues due to their higher prices, though data on this aspect is harder to come by. According to CyberMedia Research, Samsung has a solid 34.1% share in the Indian smart phone market as of November, followed by Nokia with 22.4% and RIM (Blackberry) with 18.6%. Nokia's loss, however, was Samsung's gain in the Indian smartphone market. The Korean company, which beat Nokia as India's leading smartphone maker for November, saw its share rise to 34.1% in the month, from 27.5% for the full year (till November.) In other words, while Nokia's share fell towards the later part of the year, Samsung's went up. Nokia has seen a dip in its Smartphone market share over the last 3 years due to the lackluster performance of its Symbian operating system. The company launched its new platform based on Microsoft's Windows Mango platform in November too -- a move expected to drive its market share back up. Another interesting number thrown up by the November report is that while the Blackberry maker RIM may be losing market share in its core markets, in India, it continues to hold on to, and even improve, its share. In terms of sheer numbers, the 7% marketshare for smartphone resulted in nearly 1.07 million units in November. In all, nearly 15.47 mobilephones were pushed into the supply chain in November, according to CyberMedia Research. With just one month left to go to complete the year, India saw nearly 166 million (16.6 crore) handsets being sold in 2011.

Samsung Smartphones

Share photos and contacts faster. Play multi-player games. Multi-task with ease; thanks to the increased processing power in the New Samsung Smartphones. Get all the updates from your social world in one screen Samsung Smartphones makes browsing, sharing, and connecting faster and easier. With Live Tiles, People Hub, and Internet Explorer 9, you'll never miss an update or an opportunity to post what's going on in your world. With an engaging interface and intuitive design, you'll be just a few taps away from enjoying the people and things that matter most.

Assortment of Samsung Smartphones segment Galaxy note

Galaxy S plus

Omnia W

Wave M

Samsung Smartphones are giving tough competition to Nokia smartphones.Galaxy, Wave, Omnia these phones are targeting middle upper class or higher class customers. These phones are providing very good and advance features. These phones make browsing, sharing, and connecting faster and easier. With Live Tiles, People Hub, and Internet Explorer 9, you'll never miss an update or an opportunity to post what's going on in your world. With an engaging interface and intuitive design, you'll be just a few taps away from enjoying the people and things that matter most.

Balance sheet of Samsung


Assets Current Assets Cash Net Receivables Inventories 8,747.1 22,832.0 11,939.0 Dec 10

Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Assets Total Assets Liabilities and Shareholder's Equity Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (mil.)

11,335.2 54,853.3 -65,112.0 119,965.4 Dec 10

14,337.9 ----40,146.3 40,146.3

106.7 79,712.3 79,819.0 149.7

Conclusion

Nokia The Nokia financial statements for the year 2010 shows that the company has total assets of worth 39,123 million Euros which shows that the organization is very strong financially. The Nokia is capable of paying out its short term and long term liabilities easily but its capacity to make payments is less than its competitors. Also the companies earning per share ratio is less than its competitors. But despite all Nokia Corporation can easily generate enough revenues to pay out its interest expenses and we have also found that the company is less risky and there are fewer chances of Bankruptcy as it does not depend majorly on debts.

Samsung
Samsung is breaking the mold here. Theyve just said that Q4 of last year was a record breaking quarter, with profits reaching between 5.0 trillion Korean won ($4.3 billion) and 5.4 trillion Korean won ($4.6 billion). To put that into some context, in Q4 2010 the company posted a profit of 3.01 trillion Korean won ($2.6 billion). Analysts say that sales of high end Smartphones and televisions helped the company perform this well. Lee Ka-keun, an analyst at Hana Daetoo Securities, estimates that Samsung shipped 35 million Smartphones during the quarter. That sure is a lot, but youve got to remember that Samsung considers Bada to be a Smartphone operating system.

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