Critical

Analysis
Of

NOKIA

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Introduction:

The Nokia Group (Nokia) is the world’s largest mobile manufacturer

and a leading supplier of digital mobile and fixed networks. The
company’s increasing focus on cellular products and wireless services
is responsible for the Nokia success during the last decade.
Headquartered in Helsinki, Nokia is the largest and most successful
organization in Finland.

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History of Nokia:

Follow the story of Nokia - a century and a half of innovation, from a

riverside paper mill in southwestern Finland to a global
telecommunications leader.

Nokia’s first century (1865-1967): From roots in paper,

rubber, and cables, in just over 100 years Nokia becomes a powerful
industrial conglomerate.
The move to mobile (1968-1991): The newly formed Nokia
Corporation is ideally positioned for a pioneering role in the early
evolution of mobile communications.
Mobile revolution (1992-1999): As mobile phone use booms,
Nokia makes the sector its core business. By the turn of the century,
the company is the world leader.
Nokia Now (2000-toady): Nokia sells its billionth mobile phone
as the third generation if mobile technology emerges.

NOKIA’s Objective:

Nokia’s business objective is to strengthen the position as a leading

communication systems and products provider. People want to be truly
connected, independent of time and place, in a way that is very
personal to them. And, Nokia’s promise is to connect people in new
and better ways.

Nokia is the world leader in mobile communications. Nokia has become

the leading supplier of mobile phones and mobile fixed and IP networks

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through experience, innovation and secure solutions. By adding
mobility to the Internet, Nokia creates new opportunities for companies
and further enriches the daily lives of people.

At Nokia, the foundation for leveraging diversity is built upon values

and brand objective of connecting people. Nokia’s ability to provide
customers with innovative, reliable products and services starts with
having high-caliber employees. Therefore, the company is continuously
staffed with the best people who come from a variety of backgrounds.
An inclusive environment that benefits from diversity at all levels,
values individual differences and enables all employees to develop and
contribute to the organization.

The Nokia Challenges:

The cellular phone industry is facing similar challenges today. Clearly

Nokia recognizes this, and also recognizes the fact that an iPhone will
be a serious competitor. Motorola's RAZR sold in incredible numbers
through hype, coolness and desirability, which Nokia's nameless
phones rarely generate. And if the RAZR sold well because of cool, an
Apple iPhone, if executed correctly, could outsell all the major mobile
manufacturers combined. By stating now how they destroyed the

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digital camera market and drove big established names out of
business, Nokia are well and truly laying down the gauntlet to Apple.

From Nokia's perspective, getting Apple to rush release the iPhone

makes sense, as it increases the chance the hype will not be matched
by reality (witness the Motorola ROKR 'iTunes phone). Equally, an
iPhone must compete on Nokia's own territory, one in which it
absolutely dominates.

Maybe Nokia, too, are getting bored with all the rumors, and trying to
get Apple to own up to its mobile phone ambitions, just to put an end
to the suspense. More likely, however, Nokia's well timed statement is
a shot across the bows to Apple, and one that should be well-heeded.
In 5 years' time, a stand-alone MP3 player will be as anachronistic as a
personal CD player is today.

Form of Ownership:

Nokia is a public limited liability company listed on the Helsinki,

Frankfurt, and New York stock exchanges. Nokia has entered several
joint ventures, particularly in the areas of manufacturing and research
and development. Some of them are as follows:

Meridea Financial Software Oy, Finland

Nokia (Suzhou) Telecommunications Co., Ltd., China

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 Hangzhou R&D center, China
Nice-business Solutions Finland Oy, Finland
Nokia Neu Comm Tech Company Ltd., China
Nokia Citic Digital Technology Co. (Beijing) Ltd., China
Symbian Limited, United Kingdom
ChongQing Nokia Telecommunications Co. Ltd, China
Fujian Nokia Mobile Telecommunications Ltd., China
Nemo Technologies Ltd, Finland
Dongguan Nokia Mobile Phones Co., Ltd, China
Beijing Capitel Nokia Mobile Telecommunications Co., Ltd., China
Sapura-Nokia Telecommunications Sdn Bhd, Malaysia
Beijing Nokia Hangxing Telecommunications Systems Co., Ltd.,
China

Approach to Business Development:

As a market leader, the best contribution of Nokia can make the global
community to conduct their business in a responsible way. Nokia
Values is to ensure customer satisfaction and respect. Customer
satisfaction stems is not only sell products but also how effectively
interact with the community. As Nokia become more and more of a
global entity, their obligations in terms of how they satisfy their
stakeholders grow. Nokia’s overall response is to produce high-quality,

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safe products to better communications while upholding the law,
protecting the environment and high ethics.

Nokia does not pay nor offer to pay bribes or illicit payments to
government officials or candidates, or other parties, in order to obtain
or retain business. Nokia does not provide financial support to political
parties or other political groups.
Co-operation between Nokia and the partner has been a positive
experiment. Because Nokia had clear specifications on business
requirements and the process framework, the partner was able to start
its work to specify and detail the framework process and use its
competence in the required area.

Social Responsibility:

Social responsibility is an ethical or ideological theory that an entity

whether it is a government, corporation, organization or individual has
a responsibility to society. This responsibility can be "negative",
meaning there is a responsibility to refrain from acting (resistance
stance) or it can be "positive," meaning there is a responsibility to act
(proactive stance).

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Nokia’s Corporate Social Responsibility (CSR) agenda is framed around
the Nokia Values and carried out all aspects of work to ensure
customer satisfaction and respect through Quality and safety product,
Accessibility, Privacy and security, Product development, Handsets and
health etc.
Nokia’s environmental targets go beyond mere legal compliance. Nokia
achieve targets trough an environmental strategy based on global
standard, processes and practices, relating both products and services
and also management of facilities and production site.

Nokia has a wide range of employees around the world. To hold the top
position of cellular industry, all employees of Nokia play a big role.
Nokia also conduct with Social responsibility to their employees
through Rewarding performance, Health, safety, and wellbeing,
Training and development, Consultation and communication, Training
and development, Reorganization etc. Nokia also established Volunteer
farm, Youth development, Disaster relief to serve the society.

Scope to do International Business:

Nokia is an international company where there are 128,445 employees

works in 120 countries and which head office is in Finland. Nokia
conduct with Sales and Marketing activities of their products more than
150 countries in the world. They also manufacture their Devices in nine
countries. Nokia has a strong R&D (Research and Development)
organization who works in 10 countries. So from the above data it is as
clear as water that Nokia is not only doing International business but

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also trying to capture the Glob. The true meaning of global is holistic -
not international.

Organization of the Business:

Nokia have re-organized its corporate structure in recent time, Nokia

introduced new company structure in January 1, 2008. The new
company structures are three main units. Device unit, Market unit and
finally Service & Software unit. These three units receive operational
support from The Corporate Development Office, which is also
responsible for exploring corporate strategic and future growth

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opportunities. The Group Executive Board is responsible for managing
the Corporate Functions. The Chairman and the members of the Group
Executive Board are appointed by the Board of Directors.

Board of Directors
Group Executive Board
BBoBoard

Corporate Functions
Corporate Development
Office
Device

Market Consumer

Service

Production and Operation Management:

Production and Operation Management dependents on country’s

atmosphere, culture, skilled professionals, resources and so on. Nokia’s
Production and Operation Management is the trend of publication
providing coverage and analysis of business management.

Nokia engaged in manufacturing a wide range of mobile devices and

offering supporting services and software enables experiencing music,

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navigation, video, television imaging games and business mobility. The
company also provides equipments, solution and services for
communications network. The company’s devices and services
segment comprise of mobile phones, multimedia and enterprise
solutions. The mobile phone provides voice and data. Capabilities
across a wide range of mobile devices. The mobile devices offered by
the company include new features with mass market apple, such as
mega pixel cameras music players and navigation functionally.

Nokia operates and manufacturing facilities in four countries around

the world the world for the Network technology and in nine countries
for production of Mobile devices and technology.

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 Networks technology Mobile devices and
technology

China Brazil India

Finland China Mexico
Germany Finland Romania
India Hungary South Korea
UK

Marketing Strategy:

Marketing strategy is about thinking in an integrated way about all

aspects of the business - its suppliers, production, markets and
competition. But in the global marketing organizations have to rethink
their strategy, redesign their organizations, seek new partnership and
open their minds as well across the geographical boundaries.

Nokia was the first cellular mobile manufacturer who adopted models
for new ways of thinking (mainly focus on the reduction of size and
shape of mobile phones) into their marketing operations. Nokia are
targeting to specific market segments. Nokia design on portable
cellular phones its characterized by lifestyle, freedom, opportunities of
choice, technology and urbanization. The product design both
emphasizes consumer behavior and technical industry standards.

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Moreover Nokia’s other marketing strategy are Multimedia Phones,
Internet Service, 3G enable phones, Advertisment more than other
Brands etc.

Recommendations for improvement:

To summarize this report, it can be said that Nokia is the world leader
in mobile communication. So there are few things to recommend
something to improve the business. Usage of the classic 5P’s can be
more effective for the organization to capture the whole globe.
Product- Some of the products of Nokia are not reliable
and friendly to the users. Nokia should manufacture more reliable and
friendly products that every single person can use.
Price- Considering the market, Nokia cell phones are very
expensive than the other brands. The organization should reduce the
price that all class of people effort to buy their products.
Promotion- The main user of Nokia brand is the low class
society. So they should more focus to the lower class society people
and give some benefits to them.
Place- Different countries have different economy and
different people in different country have different earnings. Nokia

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should marketing their products based on countries economic
development.
People- People are the core of business. Different people
have different taste and different needs. Nokia should research on the
peoples taste and based on the taste fulfill peoples need.

Now a day’s Social responsibility is one of the most important issue of

a business organization. Many giant and tinny companies in the world
Practice Corporate Social Responsibility (CSR) to hold the market
position. Nokia should more aware about Social Responsibility.
Because this is the only way of Nokia to connect with the People.

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