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MANAGEMENT PRINCIPLES
Final project
Organization NOKIA

Submitted by :
M. Romaan Qamar
 Kumail Hassan

Submitted to:
 Mr. Akbar Abbas Bangash

Submission date:
15-01-2011
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NOKIA
CONNECTING PEOPLE
ABOUT NOKIA
Nokia is a Finland based company, incorporated in 1967. Nokia started of as a pulp, rubber and
cable manufacturer of mobile devices and eventually after some time it became the leading
manufacturer of mobile devices. At present Nokia is manufacturing a good quality of mobile
phones.
Nokia offers a wide range of mobile devices with the experience in music, video, imaging,
gaming and a lot more. It also provides the service for network operators. It’s currently the 5 th
most wanted brand in the world. Nokia’s main head office is in Finland; its sales are in more
than 150 countries. All over the world its total manufacturing plants are 9 and a strong R&D
presence in 10 countries.

MISSION

“IN A WORLD WHERE EVERY ONE CAN BE CONNECTED, WE TAKE


VERY HUMAN APPROACH TO TECHNOLOGY”
Everyone has the need to communicate and share. Nokia helps people to fulfill this need and
they help people feel close to what matters to them. They focus on providing consumers with
very human technology that intuitive, a joy to use, and beautiful.
We are living in the era where connectivity is becoming truly ubiquitous. The communication
industry continues to change and the internet is at the center of this transformation. Today, the
internet is Nokia’s quest.
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MISSION STATEMENT ANALYSIS


The mission statement of NOKIA consists of following components….:
 Address customers

 Product

 Location

 Technology

 Self concept

VISION
Nokia’s vision is very simple and specific in nature it says that:
“OUR VISION IS A WORLD WHERE EVERYONE CAN BE CONNECTED. OUR VISON
IS TO ENSURE THAT 5 BILLION PEOPLE ARE ALWAYS CONNECTED AT EVERY
GIVEN POINT AND TO ACHIEVE 100 FOLD MORE NEWORK TRAFFIC”

ORGANIZATIONAL CULTURE
The organizational culture of Nokia is based upon the factors that are influencing NOKIA to
become a successful organization.
The Nokia way-emphasize the speed and flexibility of decision making and a flat-networked
organization with a certain amount of bureaucracy. Nokia gives equality of opportunities and
employee participation. The best thing about Nokia is that it values a customer satisfaction,
respect, achievement and renewal.
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CUSTOMER SATISFACTION
Nokia is very much dedicated to its sales and marketing, logistics and source functioning. The
company is making things that suits best for the customer and in this way the consumer gets full
satisfaction and they become BRAND LOYAL customers. Company is also randomly
responding to the change in customer needs which is a very good step for the reputation for
company image in the minds of people.

RESPECT FOR INDIVIDUAL


Nokia is giving opportunities for personal growth and responsibility. It focuses on the
teamwork which is like a feeling of family. Best thing about Nokia is that it provides freedom
for creativity with minimal rules and regulations, this technique boost up the individual efforts
to do something new.

ACHIEVEMENT ATTAINING GOALS


Nokia is adopting new strategies in respond to the change in global market in order to compete
properly. Nokia wants to be in the right place at right place. Company is continuously
refocusing on the primary goals to lead the market.

RENEWAL CONTINUOUS LEARNING


Nokia is doing a lot of campaign now a day for the promotion of the company. NOKIA’S
newest advertising campaign, “WHAT IF…………..,” CHALLENGES THE FUTURE.
Company has a strong focus on research and development (R&D).

IN NEW MILLENNIUM
At present Nokia is focusing on developing affordable mobiles for almost every class of people.
Constant innovation can be seen clearly in the company’s work and rests of the companies are
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following them. Innovation and research work is very strong in the company that’s why
NOKIA will never stop finding new ways of connecting people.

OVERALL CULTURE
NOKIA provide an opportunity to its employees to grow personally, they believe in innovation
and creation. Nokia has greater emphasis on informal work culture and it also empowers people
and the employees to work independently.
Open culture attracts the management and it also retains the high quality people because people
like to work in friendly environment where they have the freedom to talk.

CORPORATE SOCIAL RESPONIBILTY


Nokia has a good reputation in means of proving ecofriendly environment to its customers.
They are doing the practice of recycling which is cost saving and also good for environment.
Nokia is also known for its friendly packaging and transportation medium used by the company
are also not harmful to environment.
Nokia is also acting as a helping hand in PAKISTAN, they are giving blood donations, doing
fund raising for many reasons and are volunteering hospitals.
In means of corporate giving they have given aid for disaster relief. Company helped in drought
of Ethiopia. Taking about the earthquakes all over the world it gave disaster recovery amounts
to PAKISTAN and Sichuan, CHINA. Taking about southeast Asia the company helped a lot in
TSUNAMI.
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ORGANIZATIONAL STRUCTURE

Nokia’s organizational structure is designed to position them for a world where the mobile
device, the internet and computer are fusing together.
MOBILE SOLUTIONS
It is responsible for developing and managing our portfolio of smartphones and mobile
computers. Then team is also busy in developing a world-class suite of internet services under
the OVI brand, with a strong focus on maps and navigations, music, messaging and media.

MOBILE PHONES
It is responsible for developing and managing our portfolio of affordable mobile phones, as
well as range of services that people can access with them. Markets manage our supply chain,
sales channel, brand and marketing activities and are responsible for delivering our mobile
solution and mobile phones to the market.
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NOKIA SIEMENS NETWORKS


This segment is owned by Nokia and Siemens, provides wireless and fixed network
infrastructure, communication and networks services to operators and service providers.

NAVTEQ
It is leading provider of comprehensive digital map data and related location-based content and
services for automotive navigation systems, mobile navigation devices, internet-based mapping
applications, and government and business solutions.

CORE PRODUCTS/SERVICES
Core products of Nokia include only cellphones and after sale services in means of warranty.
This is one of their strengths.

INDUSTY ANALYSIS
As we see all around the industry we came to know that number of mobile subscribers in
Pakistan has crossed the 175 million mark. Talking about Pakistan mobile phone production is
expected to grow from 40 million units to 100 million units in 2011.

HANDSET MARKET SHARE


 NOKIA : 39.5%

 SONYERICSSON : 20.1%

 SAMSUNG : 12%

 OTHERS REMAINING……


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SWOT ANALYSIS
Strengths

 Durability

o Nokia mobiles are much more durable as compared to others because it is a well-
known and old company which has worked on these areas.
 Long battery life

o Battery life is strength of Nokia as they were the 1 st to introduce long talk time
with a very good quality of rechargeable batteries.
 User friendly

o Nokia mobiles are very easy to use almost every age can use these mobiles thus are
known as user friendly cell phones unlike other cell phones which are very tricky
to use.
 Global Expansion

o As Nokia is providing quality products so people like them and spread positive
word of mouth which is the main reason of the company’s global expansion. There
is heavy demand for Nokia products in global market.
o Brand loyalty
o People who had good experience with Nokia products have become loyal
customers so they are the main strengths of company because no matter what
happens they will buy Nokia’s products.

 Affordable prices
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o Nokia mobiles prices are very low as compared to others. At present people want
every quality in the mobile at very low cost so it is strength of Nokia that people
are switching from other companies to Nokia as they can afford its mobiles.
o User friendly
o Nokia is a user friendly phone because it is very easy to operate even an illiterate
person can operate Nokia mobile easily .

o Weaknesses
 Low voice quality

o Some of the users of Nokia have made a complaint that its voice quality is not up
to the mark so it is also affecting the image of the company.
 Less stylish

o Youth of today wants very slim and stylish mobiles but Nokia is working on
applications and software’s and not on the outlook of their mobiles it is a
disadvantage for them as their turnover is getting lower and lower.
 Heavy sets

o As discussed above youth wants slim and shady mobiles, but unfortunately Nokia
is unable to fulfill their desires because Nokia sets are very heavy as compared to
other cell phones
 Mainly concentrating on phones and not on other product categories

o Nokia main weakness is that they are only manufacturing mobile phones and they
are not concentrating on any other product category such as laptops and other
appliances like all others are doing e.g. LG, SAMSUNG and SONY
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o Opportunities
 Perfect customers in Pakistan

o There are a number of brand loyal customers and the customers who are willing to
buy cell phones in short the cellular market in Pakistan has a lot of profit so Nokia
can find a perfect market share.
 Increase of mobile usage

o As mobile has become a necessity for every one there is an increase in the demand
of cell phones so the larger the usage larger the sales. And Nokia can increase its
market share by availing this opportunity.
 Close cooperation with suppliers and intermediaries

o Nokia is greatly dealing its suppliers who are proving to be a good medium for
them they have become loyal to the company and hence the company is positively
affected. Nokia gives them more incentives.
 New demand created from the advancement of technology

o As technology comes in with company the demand is increased or we can say that
demand is created by new creations like Bluetooth, infrared and WIIFI.
o Threats
 Competitors

o Every company has a threat from its competitors so does Nokia as other companies
are following all those aspects which a consumer wants so developing a point of
difference is very difficult it is a clear threat and tight competition.

 Major competitors are SonyEricsson, Samsung and LG.


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o Its major competitors also have good market shares and people sometimes tend to
buy those mobiles so it a clear threat.
 China Mobiles

o China mobiles are threat for all mobile companies as they are the cheapest now in
the market. They are copying all aspect of a good mobile and selling it on a low
cost so people are switching towards them instead of purchasing the original
mobile.
 Saturation in Current market

o The market is not stable now days so it is a threat as doing business so Nokia is
being very defensive.
o Challenges of continuous Technological development
o As technology is with every one and all are producing a same kind of product with
almost same applications stalled it is threat for company as told earlier it is
difficult to make POD.
o Decision making process
o Normative decision- making process:
o The managers can make the decision according to the:
 Rules

o Rules that are made when the company was established all the decision making is
done by strictly following these rules.
 Regulation

o Set by the top management and everyone has to follow it while making a decision
because it helps the manger that they are not directly responsible to the results as
they were just following the instructions from their heads.
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Descriptive decision- making process:


The goals are set by the board of directors and are followed by a sequence as
discussed above. All the hierarchy follow the goals and plans .
Approval of decision
 The major decisions are made by the board of directors then they analyze on the basis of:

o Markets
 competitors,

 customers, opportunities

 internal structure of organization

o And then CEO approved finally then that major decision implement

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