Summary

The Nokia Company which was founded in 1865, the headquarter situated in Finland and India is largest market of Nokia. It is providing in market telecommunications tools like services worldwide, software and hardware. The company is offering applications related services, smart devices and smart phones, Today India have 31% share of Nokia Company but in the early time India have a 91% share of Nokia and also world largest market of Nokia. This company provides us much kind of communication tools like mobile communications, internet services providers, digital map information and radio technologies etc. We analyze the PESTEL Factor of the Nokia Company which affects company as different- different reasons Political factor: - it leads to the government policies and its administrative practice that affect in a straight line to organization. It relate with government issues and policies which affect to company Social factor: - it does indicate the social views which affect to society and related to health and safety of consumer. Environmental factor: - this factor affect company by environmental issues relates to the physical environment in which an institution operates. Technology factor: - which technique and device, the company uses which kind of technology for increased their production and margin. Economical Factor: - this factor is relate with country condition and situation, its play a crucial and brief role in the company profit margin status and when its came or down. Legal Factor: - Relate with Legal factors include consumer law discrimination law, employment law, health and safety law and antitrust law. Then we describe which affected to the company and also give the strategy, when the companyis struggle with the difficult situations then which kind of strategy they used and applied in the organization. Give the affect of strategies which is positive or negative effect. Then analyse the company overview this is inform us how PESTEL factor affect the company, which kind of problems face or struggle the company, and which strategy we should use or apply in the organization for reduce the cost and increased the profit margin of the company.

INTRODUCTION:

Nokia-connecting people this jingle is well-known among all the peoples in almost every country. Nokia is one of the world leading telecommunication apparatus manufactures. They compose a extensive series of mobile devices, services and software that facilitate people to go further than communication to navigation, music, video and more. Nokia is not only a leader in telecommunication but it also lead the world market in digital music and largest camera manufacturing. Nokia is a broad global company, headquartered in Finland. Nokia deals in more than 150 countries. Nokia has also worked in partnership with WWF since the year 2003 to hoist the environmental attentiveness among our employees and on other environmental activities. Nokia started his manufacturing with the paper and pulp mill with the name of nokia only in the year 1865 in southern Finland. Then by the late in year 1980 it started manufacturing the GSM (global standard for mobile communication) products of more than 60 style in almost 31 countries around the whole world.

PESTLE FACTORS
PESTLE stands for - Political, Economic, Sociological, Technological, Legal and Environmental. POLITICAL FACTOR Political factor communicate a bustle connected to the government policies and its administrative practice that affect in a straight line to organization. Political factor is must taken into account when making an allowance for the political change or upheaval. Political factor embrace the area of Tax policy, Labor law, Tariffs, Trade restrictions, Political stability, Environmental law and. It refers to government policy such as quantity of involvement in the economy.

As Nokia has recently moved a one of its manufacturing unit to India so because of this now Nokia is following all the set of laws and parameter which has been set up by the Indian government so that they can function as competently as probable. ECONOMIC FACTOR Economics is the process where is production and consumption of services or goods. Economics gives understanding the how can all people work together in market to obtain what we want or achieve certain goals. Economics explains the countrys economy its describe that what is running in particular country what is the situation of country. Its give how can we use resources with fully efficiently. Economics helps us for understand the consumer thought and behavior in market. Economics is related with recession, change in exchange rate and inflation, its a content or sign of economic. Basically economics show the demand and supply in the market of product. At the end we arrived in conclusion that in the economic sense when the recession come then the all sectors running goes slow and down it a cycle of business grow , down and again grow, and the inflation is that when our buying capacity is increase due to lack of goods. In that situation inflation comes in country.(For example :- Currently (2012) to change in exchange rate $ dollar rate is going high , after that Maruti company Increase their Price 2000 to 8000/-. Its economical effect which affect to all kind of sector)

SOCIAL FACTOR In pestle factor, social dimension which directly related to the society and cultural aspects, which also affects an organization as well. Social factor include some basic issues like related to health and safety of people, the right of consumer and related threats, ethical issues, etc. Self Experience: At the end we arrived in conclusion that in the economic sense when the recession come then the all sectors running goes slow and down it a cycle of business grow , down and again grow, and the inflation is that when our buying capacity is increase due to lack of goods. In that situation inflation comes in country.(For example :- Currently (2012) to change in exchange rate $ dollar rate is going high , after that Maruti company Increase their Price 2000 to 8000/-. Its economical effect which affect to all kind of sector) TECHNOLOGY FACTOR Technology is a large theory that how manage or use and technique of usage of tools and crafts. It is term that how to made work efficiently and fast, it makes work easy and save time. In the society it is a part of engineering and science of technique. Its play a big and large role in world through by connectivity. Its part is like telephone, scanner, computer, internet, television and radio. It uses make work to easy way. It improves knowledge of systematic term it does depend of world nature and how makes a nature work with systematic term. It increase and play an important role in industry, business and schools. It spread a information in a second in world, it also gives positive and negative impacts. LEGAL FACTOR

Legal factors include consumer law discrimination law, employment law, health and safety law and antitrust law. These factors can influence how a company operate, its expenses and the demand for its products. These are connected to the legal atmosphere in which firms operate. The introduction of age inequity and disability discrimination legislation, an increase in the smallest amount wage and greatest necessities for firms to recycle are example of comparatively recent laws that affect an organizations actions. Legal changes can influence a firms expenses and demand. (Gillespie, 2007)

ENVIRONMENTAL FACTOR The ecological element relates to the physical environment in which organization operates. It include environmental and ecological aspects such as climate, weather and climate change, which may particularly influence industries such as farming, insurance and tourism. Additionally, growing understanding of the potential impacts of environment change is affecting how companies work and the products they suggest, both creating new markets and destroying and diminishing existing ones. Environmental concerns are essential to businesses both in long and short term. In the short term, effects like natural disasters can interrupt productions and deliver operations, or even demolish company assets. Programs such as ecological risk opinion can help companies get ready to handle the various short term crises. In the lengthy view however, businesses may have a concern in ensuring that their supply chain are not damaged by unsustainable practices.

EFFECTS OF NOKIA COMPANY

ECONOMIC EFFECT In 1990s, Nokia earning and shares fall down. These time they invest heavily in new business, that time finish economy of Finland went into recession period, due to they had heavily losses and decrease market shares. Due to change in exchange rate, the foreign currency is going height and interest rate also goes height, its impact on Nokia finance. The competitor Samsung has come in market against to Nokia it also kills Nokia sales and profit. Due to the Inflation the consumer buying capacity increased but the lack of electronic instrument because of Nokia went down in the market completely other electronic company like Samsung and apple. Lack of profit and limited margin or finance, Nokia cutting the jobs time to time. Those all economical content affect Nokia Company.

SOCIAL EFFECT Nokia has faces a great competition in the part of communication advertises and it also faces so many problems which affects the social factor as well. The company is facing some problem related to health and safety of consumer. One of the examples which adversely affected human

being is BL-5C Battery which was manufactured by Matsushita between December 2005November 2006. These batteries were getting overheated when charging and at time caused the battery to blast. It is noted that hundred such incidents are reported worldwide which affected the consumers in society in which Nokia gave negative impact to the Society. TECHNOLOGY EFFECT When the Nokia Company is takeoff Windows Phone (Microsofts OS for Smartphone). They lounge the lumia 900 Smartphone in market, Sales fall down and slow. Nokia heavily hit when the Microsofts OS Smartphone gave revert that its not capable to run in markets. It was the new windows 8 software, which have picture quality is old-fashioned and Nokia got a Junk status in market, due to that Nokia Company was gone downgrade status, company took action and they cuts 10000 jobs because of lack of quality and features and the poor technology heavily hit Nokia company margin and made condition in lower category.

STRATEGY TO OVERCOME
ECONOMIC When the recession came in 1975-76. In that time Nokia was paper industry and the kairamo was the CEO of Nokia corporate in Finland. In 1982 they used business strategy for paper industry. They decide that he will raise the investment and build up next fiber factory, but the output of this strategy, it gave losses of company due to Nokia have to sold off their half of paper industry and tissue paper business of Nokia was merges with American James river and the Italian Ferruzzi. In early of 1990s when Country went into recession the company use strategy, the distribute their forest company as a part like electricity business and rubber business and the result of that employees had decreased by 15000 in between 1983-1993. The company used Strategy that they will appoint employees according to available margin and demand or profits

SOCIAL Some strategies were used to reduce the negative impact are they instructed on Nokias website that how to detect whether the battery is affected and then to replace it with new one free of cost. They informed customer via phone about defective battery. And they also positioned a product consultative for defective batteries. IMPACT: in the second quarter of 2007, Nokia sold 101 million mobile phones which was 29% increment comparatively from the previous year. It was continued to be the market leader and it considered a strong sense of social responsibility so from that strategy Nokia won the heart of the customers and successfully recover those crises which helps in increase their market share as well. TECHNOLOGY

In 2010 February , CEO, Stephen Elop of Nokia Company, he made a decision and apply strategic alliance with Microsoft but they have only 4% market share, it is too hard to make a profit, but the result of that Nokias declined to takeoff window phone and got heavily loss, that strategy is failed. Finland Nokia Company now applies the strategy that they are improving operating model and fill up the company profitable growth. They planning to reduce operation expenses and focused the exclusive experiences obtainable by smart phones and features, also increased or put deep emphasis on location based services. They applied the strategy that reduce smart phone price comparison of apple and Samsung phone.

ANALYSIS
There are many factors which effect the decision of managers in the organization. The decisions which a manager has to taken in organization like tax charge, trade barriers, decision related to government policy changes and demographic changes. To take a rational decision, a manager categorized them using pestle factor. In Nokia so many factor affect the organization like political, economical, social, technological, legal and environment factor are being affected. In social factor there is an issue of battery in which batteries were continuously heated when charge and it got blast so as to prevent they used some strategy like which helped them to stop it and then Nokia became

In the technology the technological advances in the business are essential to the success of any new Smartphone coming in the market and frequently growing, when the level of competition rises. Nokia make sure that their Smartphone they manufactured are the highest level of innovation. In the Smartphone there are such functions like internet, camera, social networking and email which the requirement of Smartphone. Nokia will have to imagine of other functions to help distinguish and stand out from the rivals. As well as function more and more customers are attractive and looking more functions in phone. This is the key factor indicate the success and quality of the Smartphone, so Nokia association with Microsoft for their latest Smartphone seems a very good opportunity to everyone are aware of the technological capability of Microsoft and the price they can insert to any technological product. In the earlier period Nokia were the best markets in innovation in the mobile cell phone industry, though in the current times they have seemed well off the mark and great effort to struggle with the rivals. This is why Nokia must think their place in the industry and effort to once again become the best market leader by contributing a new innovative potential and get to the market before its rivals. Intellectual property is the solution to enter any technological Industry and must be cared for and keep safe to the fullest quantity to make sure the company does not lose out to rivals. Nokia manage in an industry where it is very complicated to have a product that is different to its competitors, when they do release a product with an innovative ability it is essential to look after

the rights to its through copyright, patents, design and trademarks to make sure they are not stolen by their competitors. Not just are competitors a threat of intellectual, but Nokia make sure they do not fall wounded to counterfeiters who argue to be Nokia products but are cheap knock off. Nokia have manufacturing plants in different countries, and it important Nokia Company have to follow the laws and regulations set by the different countries. In todays society it is very essential for organizations to be seen as ecologically friendly and fair with its manufacturing, because of the global effect it has on global warming so Nokia make sure that they control in a suitable manner. With mobile phone recycling organizations suitable more and more accepted, this demonstrates how essential public are concerning it. The main problem with mobile recycling is the removal of the batteries in the phones as these can become hazardous if not disposed of properly. Nokia is not an energy exhaustive company and most of the greenhouses gases emissions happen in constitute manufacturing by our suppliers or in the procedure of our products, they desire to show leadership. They do that by reducing our own energy utilization and greenhouse gas emissions and get responsibility in raising attentiveness and promoting best practices in our significance chain and industry.

RECOMMENDATION
Nokia Company can be further categorized as the market leader under the mobile and telecommunication market. Nokia can be examined as so many range of product like Nokia Asha, Nokia Lumia, Nokia X3-02, Nokia 500, etc and some phone who has also change their model e.g.- Nokia 3210 and now it is Nokia 3350( Meriden, 2001). On the other hand, Nokia is a Hewlett Packard where they are mainly focus on computer tools. In this report it recommends that Nokia appears the opportunity to compete with other competitors (Crainer, 1995).

REFERENCING