NOKIA

INTRODUCTION
Nokia-Connecting People: this slogan is known all over the world. Nokia employs 50, 000
people in 120 countries. Currently every third mobile phone sold in the world is a Nokia.
The Nokia Company is today one of the worlds leading high tech companies. Its rapidly growth
in the 1990s coincided with a basal structural change of the Finnish economy and industry. In
this restructuring process Nokia played an important role. Despite the fact that Nokia is a leading
multinational company, a major part of its business is located in Finland. Nokia plays a
significantly role in the economic growth of Finland, which has been one of the fastest in whole
Europe.
But the roots of the Nokia Company go back to the 19th century when in 1865 a forest industry
enterprise in the small town Nokia in South Western Finland was established by mining engineer
Fredrik Idestam. At the turn of the 20th century technology came with the founding of the
Finnish Rubber Works in 1898 and the expansion of electricity into the homes and factories
which led to the establishment of the Finnish Cable Works in 1912. With this development the
manufacture of cables for the telegraph industry followed and supported so the new-fangled

device, the telephone. The three companies (Paper, Rubber and Cables) were merged to the
Nokia Corporation in 1967.
Since the 1990s the Nokia Company focuses especially the telecommunication industry.
The following essay deals with a detailed overview of the history of the Finnish Nokia company.
But besides this, it is also mentioned the importance of this company for the Finnish economy. At
the end of the essay I will give an overview of the future challenges for the Nokia Company and
its surroundings.
At first I start with the development of the Nokia Company; from its roots as a forest industry to
a worlds leading telecommunication enterprise.

HISTORY
Earlier today, Microsoft completed the acquisition of Nokias smartphone business bringing an
end to an era, which has seen plenty of ups and an equal number of downs. Lets take a look at
the brief history of the company that started out as a paper mill in small village in Finland.
THE EARLY YEARS

In the year 1865 Fredrik Idestam built a paper manufacturing mill in Southern Finland and
followed it up by launching a second mill in the nearby town of Nokia in 1868. Three years later
Idestam transformed his company to a share company and the Nokia company was formed.

Nokia kept growing through the 19th century and in the 1960s the company branched out into
electronics. In the next two years it developed a host of electronic devices including radio
telephones for the army. In 1979 Nokia took its first steps into telephony by creating Mobira Oy
in a JV with Finnish TV maker Salora, and they created the Nordic Mobile Telephone (NMT)
service. This was the worlds first international cellular network and in the 80s, Nokia launched
its first car phone called the Mobira Senator.
Five years later Nokia launched the Mobira Cityman, the first mobile phone that would run on
the companys NMT network. At 800 grams and priced at $6,308, it may be heavy and pricey by
todays standards, but the device soon hit cult status when Mikhail Gorbachev was photographed
using the device.

THE GLORY YEARS

The 90s were the glory years for the Finnish company. In 1994, Nokia launched the 2100 with
the now iconic Nokia ringtone. Three years later it launched Snake, one of the most widely
recognized mobile games of all time. The Nokia 2100 was such a big hit that it went on to sell
more than 20 million handsets worldwide, much higher than what the company had predicted.
In 1997, Nokia also launched the Communicator, which 11 years before the first iPhone was
considered to be much ahead of its time. The device not only looked cool, but also offered
features like email, fax, calendar and a massive display.
The same year, Nokia also launched the 6110 and the 5110 two more devices, which were way
ahead of their time and competition. These devices offered a much sleeker way of text

messaging, a beautiful menu system customization options like multiple color snap-on covers.
These devices were followed by the 7110, which offered basic web functions, the 7650, with a
built-in camera and the 6650, the companys first 3G enabled smartphone.
By 1998, Nokia had firmly established itself as the global leader. Where its rivals like Apple,
Sony and Siemens had failed to predict the global demand, Nokia sailed through these years with
a turnover that increased 500 percent from $ 8.9 billion to $42.8 billion.

THE DOWNFALL

There is an old Finnish tale, which talks about Sampo, an engine of eternal wealth created by the
poor people of Kalevala. Sampo essentially grinds out gold, salt and wheat from three horns, day
and night, but as nothing good lasts forever, one day Sampo drowns to the bottom of the lake and
the people of Kalevala are returned to their gloom and poverty.
As is with old tales, one can easily relate Nokia to the Sampo. After the glorious 90s, in 2007
things began to go downhill and rapidly. In the year 2009, Nokia posted its first quarterly loss
in more than a decade. This was largely due to HTC developing a smartphone running on the yet
new Google Android operating system. With the iPhones and various Android smartphones
taking the market by storm, Nokia failed to keep up with them. Instead of joining the horde of
Android adopters, Nokias new CEO Stephen Elop joined hands with Microsoft to develop
smartphones running on the Windows Phone platform.
Though the partnership saw the development of Nokias popular Lumia series of smartphones,
Nokia wasnt able to rekindle its glory days.

END OF AN ERA

On September 3, 2013, Nokia announced that its hardware department would be acquired by
Microsoft in a deal worth $7.2 billion. After eight months, the deal was completed today and
with it came the end of an era.

CEO

Rajeev Suri
Nokia, CEO

VISION AND MISSION

Tuesday, December 14, 2010

Mission & VIsion of Nokia
Mission Statement:
1-To guide and focus decision making
2-To create a balance between the competing interest of various stakeholders
3-To motivate and inspire organizational members
However, it is important to point out that mission statements do not always deliver the promised
benefits. In reality, mission statements are often unreadable and uninspiring, and articulate values
that are unrealistic or are not aligned with day-to-day organizational behaviour.
Previous mission statement research focused primarily on the content of mission statements
and/or on the managers perception of the mission statement. Meanwhile, the mission statement
perception of individual organizational members received little attention.

Vision Statement:
Nokia wants to create a new world; to transform a big planet to a small village. Their vision is to
create, build, and encourage people from all countries to communicate with each other in order
to create a world where everybody is connected.
Humans learn from people around them, but men also seem to forget that beliefs and thoughts
differ from person to person. The way of thinking, experiences, believes are simultaneously
related in a logic approach. Similarly, Nokia wants to create a world of creativity and experience,
shared experiences. mill in Tammerkoski in southern Finland. Frederick Idestam then built
another mill by the Nokiavirta River where he gave the name Nokia to the mill in 1871.
Originally, the Nokianvirta River was named after a dark furry animal, locally known as the
Nokia a type of marten.

Following a major industrial force, the company merges with a cable company (founded by
Eduard Polon) and a rubber firm (founded by Arvid Wickstrom) which sets Nokia on the new
path of electronics. Nokias first electronic device was a pulse analyzer designed for use in
nuclear power plants in 1962. Their interest in telecommunication systems began in 1963 when
they started developing radio telephones for the army and the emergency services, prior to the
manufacturing of televisions, radio phones, data transfer equipment, radio link, analyzers and
digital telephone exchange. Nokia will change its production and focus on the
telecommunication expertise until it
becomes the core of its future work.

To move to mobile
In 1979 Mobira Oy was the first phone maker. They begin life as a joint venture between Nokia
and leading Finnish television Salora. The Mobile phone revolution started in 1981 with the
launch of the first Nordic Mobile Telephone (NMT) service. The phone industry began to expand
rapidly and Nokia introduces its first car phones followed by the portable in 1986.

Mobile Revolution
In 1992, Nokia decides to focus on its telecommunications business. This happens when Jorma
Ollila becomes CEO of Nokia and he chooses to concentrate on telecommunication industry. In
the 1990s, the rubber, cable, and consumer electronics divisions, were therefore sold. Nokias
only business turned towards the manufacturing of mobile phones and telecommunications
systems. The strategy of Jorma Ollila was to create a new era of telecommunication on a long
term vision.
In 1992, the company launched its first GSM handset and then introduced their famous Nokia
Tune in 1994. During that year, the worlds first satellite was made using a Nokia GSM handset.

In 1997 the world famous mobile game Snake was presented in the Nokia 6110. Soon after, in
1998, the company became the world leader in mobile phones. Following a good deal of
research, they launched the first mobile phone Nokia 7110 which included a WAP.

Nokia Now
Presently, Nokia is creating more and more mobiles phones with differing functions.
The company also makes sure into diversifying and segmenting its products. Their leading
position pushed the company to go forward in their research. They came up with the first 3G
Phone in 2002, and the multi-player Nokia N-Gage. In 2005, the N-series were born with their
sophisticated mobile phones.
In 2006, Olli-Pekka Kallasvuo became the new CEO of Nokia and Jorma Ollila shifted to being
the Chairman of Nokias board. At that time Nokia and Siemens announced plans for Nokia
siemens network the leading operations of Nokia. In 2007, Nokia launched its new internet
services brand.
In order to achieve its goals, Nokia developed strategies. These strategies differ from country to
another, from a culture to another. Companies are always creating a vision and a mission
statement to make everything tacit. Evidently, Nokia has set up its specific missions and visions.

BOARD OF DIRECTORS

Chairman Risto Siilasmaa

b. 1966
Chairman of the Board of Directors of Nokia Corporation. Board member since 2008. Chairman
since 2012. Chairman of the Corporate Governance and Nomination Committee.

Master of Science (Eng.) (Helsinki University of Technology).

President and CEO of F-Secure Corporation 1988-2006.

Vice Chairman Jouko Karvinen

b. 1957
Independent Director.
Member of the Board of Directors of Nokia Corporation since 2011. Vice Chairman since 2013.
Chairman of the Audit Committee. Member of the Corporate Governance and Nomination
Committee.
Master of Science (Eng.) (Tampere University of Technology).

Vivek Badrinath

b. 1969
Deputy Chief Executive Officer, Accor Group.
Member of the Board of Directors of Nokia Corporation since 2014. Member of the Audit
Committee.
cole Polytechnique and ENST.

Bruce Brown

b. 1958
Independent Director.
Member of the Board of Directors of Nokia Corporation since 2012. Chairman of the Personnel
Committee. Member of the Corporate Governance & Nomination Committee.
M.B.A. (Marketing and Finance) (Xavier University). B.S. (Chemical Engineering) (Polytechnic
Institute of New York University).

Elizabeth Doherty

b. 1957
Independent Director.
Member of the Board of Directors of Nokia Corporation since 2013. Member of the Audit
Committee.
Bachelor of Science (University of Manchester). FCMA (Fellow of the Chartered Institute of
Management Accountants).

Simon Jiang

b. 1953
Founder and Chairman of CyberCity International Limited (CCI) and of some CCI subsidiaries.
Independent director in certain other companies.
Member of the Board of Directors of Nokia Corporation since 2015. Member of the Personnel
Committee.
B.A. (Beijing Foreign Studies University). M.A. (Australian National University). MPhil and
PhD (Economics), (University of Cambridge).
Chairman and Chief of Vision Century Corporation Ltd 2002-2008. Founder of CyberCity Group
of Companies 1997-2002. Deputy Chief and Fund Manager of United Nations Joint Staff
Pension Fund 1992-1997.

Elizabeth Nelson

b. 1960
Independent Director.
Member of the Board of Directors of Nokia Corporation since 2012. Member of the Audit
Committee.

M.B.A. (Finance) (The Wharton School, University of Pennsylvania). B.S. (Foreign Service)
(Georgetown University).

Kari Stadigh

b. 1955
Group CEO and President of Sampo plc.
Member of the Board of Directors of Nokia Corporation since 2011. Member of the Personnel
Committee. Member of the Corporate Governance and Nomination Committee.
Master of Science (Eng.) (Helsinki University of Technology). Bachelor of Business
Administration (Swedish School of Economics and Business Administration, Helsinki).

ORGANIZATIONAL STRUCTURE
As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible.
Nokia's organizational structure is horizontal and it allows for greater flexibility and speedy communication
channels between different departments. The devices unit looks after the development and management of
mobile devices portfolio which is targeted at all major consumer segments. The solutions department ensures
that it continuously develops solutions whereby ensuring that a particular mobile device has integrated
contents and personalized services and the output of these three components results into a leading mobile
phone for the end user. The solutions unit works with other departments in close proximity to provide such
solutions.
The services department creates and designs internet services that enhance the consumer experience when
Nokia phone users interact with the web. The main areas where this unit focuses on include messaging, maps,
music, and Ovi developer tools. This department also ensures that there is a consistent increase in different
services as the market evolves. The other significant department is Markets which acts like a supply chain

department for Nokia. The unit is also responsible for sales channels, branding and marketing activities for
various products and services.

PRODUCTS
Get the latest technology and global expertise at your fingertips to help you meet the growing
demands of your customers
Handle the growing volume of traffic on your networks and stay relevant in the rapidly changing
industry landscape is a big challenge. On top of that, you have to manage your operations and
keep track of the business.
Whether its the latest network technology, or tools to help you manage your business more
efficiently, our products can help you to stay competitive and increase revenue.

What Nokia Networks can offer

> Customer Experience Management (CEM)

Gain a holistic, real-time view of your subscribers, and turn this insight into targeted actions that
improve the customer experience and drive loyalty and profitability. Learn more about our CEM
product portfolio
> Evolved Packet core

Prime your networks for the explosion in data and signalling traffic in mobile networks.
Find out how end users get the quality of services they demand
> Convergence/ IMS

Pave a smooth evolution path towards an all-IP core with IMS as the core controller of choice for
LTE networks offering voice and multimedia services. See how we can help

> Mobile broadband

We can help you make sure your networks can efficiently handle increased data traffic as well
as improve the experience for your customers
> Operations Support Systems (OSS)

Smart OSS helps you use your network to ensure better customer experience in a cost-efficient
way. Take a closer look at our OSS product portfolio
> IP Partner products

Leverage the right skills, partners and solutions to support your IP transformation process.
See the full range of multi-vendor IP products
> Subscriber data management

Unlock the value of subscriber data. See how we can help you consolidate your data into a
single, unified platform and speed-up new services introduction.
> Transport networks

Get the fastest connections across fixed and mobile environments to efficiently manage
explosive traffic growth.

Discover how to transform to an ubiquitous IP, packet and optical transport network.

EMPLOYEES
Nokia Networks employs over 50,000 people in more than 120 countries. The success of our
business depends on them.

Our company culture and values should permeate every aspect of our work. We want to create an
inclusive working environment where everyone feels valued, motivated and inspired to reach
their full potential. To support this aspiration, we provide development and training
opportunities, competitive reward packages, equal opportunities and flexible working.
Internal communications keep people informed about our business strategy, and we work hard to
support them through changes in the company (see sustainability report).

OUR CULTURE AND VALUES

We want to make Nokia Networks a great place to work, based on trust, respect, honesty and
openness. Our aspiration is to be a company with a high-performance culture and it is important
that our employees understand and work towards this.
Our values
Our four core company values form the cornerstone of our culture and help to guide employees
in their work. We aim to:

Respect

Achievement

Renewal

Challenge

Engaging employees is critical to embedding our culture and values. Our network of Culture
Champions communicate the values widely within the company as well as raising awareness of
our policies on ethics and compliance, sustainability, diversity and a good working environment.
The wellbeing of employees is one of our priorities. Our wellbeing@work framework is
designed for line managers to help them ensure their own wellbeing as well as their
responsibilities to their teams. This includes group coaching sessions and forums, job rotation,

fitness and wellbeing days. Wellbeing programs are tailored to the needs of employees in
different countries and implemented locally.
Case study
Peoples

Choice

The Peoples Choice Award in the Asia and Pacific region recognizes employees who
demonstrate our values in action. Employees nominate colleagues every four months, and entries
are judged by our leadership team in each country.
Winners become Value Ambassadors and are invited to present our values to new employees
during their induction. They help inspire and lead the way for other employees to adopt our
culture and values.

AWARDS
2015 Awards

Small Cell Forum Award

June 2015

Nokia Networks won the Small Cell Forum award in the category Small cell tool
design and technology with Nokia 3-D Geolocation.

Pipeline Innovation Award

June 2015

Nokia was awarded two Pipeline Innovation awards: one for Innovation in
Networking Technologies with Nokia Telco Cloud Management and one for
Innovation inCustomer Experience Management with its Customer Experience
Index.

Leading Lights Award

June 2015

Nokia Networks won the Leading Lights award in the category Most Innovative
Security Strategy for vendors with its Security in Networks for Internet of Things
solution.

Rajeev Suri receives Marco Polo award for advancing Chinas development through Nokias
technology
April 2015

The China Association for International Exchange of Personnel (CAIEP) recognizes Nokias
efforts to globalize and commercialize TD-LTE technology over the last 17 years.

SWOT Analysis of Nokia

Nokia, once the worlds largest vendor of mobile phones, is a popular Finnish information
technology and communications multinational corporation which provides telecommunication
equipment and services. The mobile phone brand, famous for the reliability and durability its
phones provide, has ruled the mobile market for many years with its motto connecting people.
Recently, the handset division and services of the brand were acquired by software giant
Microsoft and since then Nokia has released a number of phones under the Windows umbrella.
So, keeping all these points in mind, lets do a SWOT analysis of Nokia, to get a proper analytic
view of the brands strengths, weaknesses, opportunities and threats (SWOT).

STRENGTHS
Lets start with the first part of SWOT analysis of Nokia which is strengths:

The biggest strength of the company is their brand name. Many consumers often opt for Nokia
more than any other brand because of the reliability, durability, and creativity their phones
provide.

Most of Nokias highly qualified personnel have teamed up with Microsofts experts as a part of
the acquisition deal.

The phones provided by Nokia have a much higher re-sale value compared to other mobile phone
brands.

Many of Nokias products are easy to use and are usually coupled with a variety of handy
accessories.

Products offered by the company are available in all price ranges.

WEAKNESSES
The next part of SWOT analysis of Nokia is their weaknesses:

The company, though, is often criticized for poor after sales services.

Took a long time to enter the highly productive and booming smartphone market. As a result the
company lost a lot of its once huge market share.

Some of Nokias products are not affordable for middle and lower class consumers, which often
affects their searches negatively.

The Finnish mobile company has made comparatively lower profits due to drop in sales that
result from tough competition. According to statistics, the companys profits have fallen by 7% in
the second quarter of 2014.

There are slumps in the companys development with its Windows Lumia range of smartphones
because of constant competition from rivals Android and iOS.

OPPORTUNITIES
After discussing the internal factors of SWOT analysis of Nokia, lets shift our focus towards
external factors:

The Microsoft-Nokia deal is a win-win situation for both companies. The deal possesses great
opportunity if both utilize resources in a proper way.

Opportunities to expand the range of products and their prices. Also bring in new features and
applications on to Windows OS.

THREATS

The final part of SWOT analysis for Nokia is the threats:

Strong competition from other smartphone companies will make it hard for Nokia to maintain
and expand their market share.

Low-cost threats by China mobile companies and others can cause big problems.

So, after proper SWOT analysis, we have come to the conclusion that Nokia is going through a
tough time in the market due to a variety of factors. However, with Microsoft and Nokia
personnel teamed up, there is no doubt in saying that many of these problems can be overcome if
Nokia strategizes, plans and uses its resources properly.

NOKIA GAINS

Nokia achieved an increased turnover and made a remarkable profit during the second quarter of 2015, the
Finnish network technologies company said.

Compared with the same period in 2014, the 2015 April-June turnover stood at 3.2 billion euros, which was an
increase of nine percent. The profit was now 352 million euros, whereas in 2014 it had been negative.
Among the three major business portfolios, namely the networks, technologies and the HERE map services,
networks provided 313 million euros out of the total of 521 operating profit.

Mikael Rautanen, an analyst of Nokia from the analysis firm Inderes, told Finnish national radio Yle that the
increase in the turnover could be attributed to changes in the exchange rates that were advantageous to Nokia.

The good profit result showed a recovery in the core business of Nokia, the network services.

Rautanen said the market situation was not easy, but Nokia was able to improve its profitability more than its
main competitor Ericsson.

"In the future the programmes that administer the networks bring the money, not that much the sales of
hardware," he said.

Nokia CEO Rajeev Suri said the company`s global services segment attained one of its best results ever; sales
of

programming

grew

remarkably, while

the

impact

of

new

strategic

agreements

declined.

The current annual turnover of Nokia is around 15 billion euro and following the completion of the AlcatelLucent deal it will be around 30 billion.

Rautanen said that uncertainty associated with the upcoming merger has been reflected in the price of the
Nokia stock. It was 7.5 euros at the time of the announcement and has since declined to six euros.
On Thursday, following the announcement of Q2 results, the share value increased eight percent.

SOCIAL RESPONSIBILITY
Published by Rafe Blandford at 15:17 UTC, May 17th 2013
This week Nokia published its annual corporate social responsibility and sustainability report
("Nokia People & Planet Report 2012"). Covering a wide range of issues it offers an insight into the
broad range of initiatives that makes Nokia a leader in the technology sector for ethical and
environmental issues. The report also discusses the impact of Nokia's 2011 and 2012 strategy
changes on its employees and the communities in which it operates.
Here's how Nokia describe the report:

Since 2002, weve consistently reported on corporate responsibility, and each year we build upon our
transparency and coverage of issues. Today, our report covers the ethical, socio-economic and
environmental areas most relevant to Nokias business and its stakeholders.
The Nokia People & Planet Report 2012 is split into Nokias efforts for people and the planet. The
People section discusses how mobile technology can be harnessed for the good of individuals and
communities, but it also covers challenges we faced in 2012 as well as how this impacted our
employees and the communities in which we operate. The Planet part reports on our initiatives to
minimize the potential negative impacts on the environment and the positive contributions mobile
devices can make to the planet. The report is only available in digital format, as we want to print less.
The reports talks in detail about the positive and negative aspects of Nokia's business operations, and
details the company's overall performance, whether it met its targets, and plans for the future.
Here are some selected highlights from the report:
Corporate taxation

Nokia says that, "as a good corporate citizen Nokia pays the amount of tax legally due and
observes all applicable rules and regulations in each country where it operates". The report notes that
the company has followed the same centralised business model in the allocation of taxable income
since the early 1990s. In essence, the majority of profit (and loss) is carried by the business in
Finland, with a smaller portion carried in the countries in which Nokia operates. Although it's not
specifically mentioned in the report for obvious reasons, this is in sharp contrast to a number of other
technology companies who have been in the headlines for offshoring profits in low corporate tax
jurisdictions.
Employees

As a result of Nokia's new strategy (switch to Windows Phone) there were a large number of
job losses. In order to help employees affected by the reductions Nokia established a support
program call Bridge. By the end of 2012 17,000 employees had participated in the program, and
almost

1,000

new

businesses

have

been

set

up

by

former

employees.

Environmental design

A dedicated design for environment (DFfE) specialists work actively throughout every
product development project at Nokia, verifying legal and voluntary target compliance, as well as
promoting sustainable alternatives for materials and other design considerations.

Over the last decade Nokia has reduced the greenhouse gas footprint of their phones by 50%.

Materials

In 2012 Nokia banned the used of radioactive substances in all products, packaging, and
internal production processes. This in the latest in a long line of substance nad material management
policies. For example, the use of perfluorooctanoic acid (PFOA) was restricted, and in 2010 all
Nokia products were free from bromine and chlorine compounds related to flame retardants.

In 2012 Nokia retail packaging material used 18,875 tonnes of paper (on average 52%
recycled) and a futher 9,569 tonnes of paper (on average 89% recycled) in transport packaging
material.

Chargers

Over the last 10 years Nokia has reduced the no-load consumption of its chargers by
73% (i.e. charger plugged in, but not being actively used for charging). The best-in-class chargers
have seen a 90% reduction.

The average no-load power consumption on Nokia chargers shipped in 2012 was 0.098W, a
reduction of 13% from the previous year.

In 2012 all new Nokia devices are being shipped with four or five star charger.

Emissions

40% of the electricity used by Nokia comes from renewable sources

Nokia aims to reduce CO2 emissions by a minimum of 30% by 2020 (from a 2006 baseline).
The 2013 emissions figure was down 29% from 2006.

Nokia reduced CO2 emissions from air travel by 54% from 2011 to 2012 in total, and by
39% when calculating reductions per employee. In part this was due to the installation and greater
use of new video conferencing facilities.