GOA INSTITUTE OF MANAGEMENT

NOKIA
STRATAGIC MANAGEMENT PROJECT
COURSE GUIDE – Dr. RATISH BHATT

SUBMITTED BY

GROUP NO.-A06
ARUSHI

ANUPAMA RANGASWAMI

CHETAN PANGAVANE

EVA SHRIMALI

PARTH AJMERA

SOURABH KALE
Contents
ROLE OF LEADERSHIP .............................................................................................................................. 2
Kari Kairamo (1977-1988): .................................................................................................................. 2
Simo Vuoriletho (1988-1992):............................................................................................................. 2
Jorma Ollila (1992-2006): .................................................................................................................... 2
Olli-Pekka Kallasvuo (2006-2010): ...................................................................................................... 3
Stephen Elop (2010-2013): ................................................................................................................. 3
References: ............................................................................................................................................. 4
ROLE OF LEADERSHIP
Implementing any strategy in organization requires great and efficient leadership, may it be
strategic, managerial and visionary. Goals and strategies should be communicated to
bottom most employee of organization and each person in organization should be involved
in change management. Ability of leadership to implement strategy is way more important
than formulation of change strategy. A lack of strategic leadership is measure problem while
implementing any strategy, same thing happened with Nokia. When market was expanding
and Nokia was on top, having 36% market share, Nokia failed disrupt existing market and
bring in innovative technologies in to market, which Apple. Inc did with its iphone and
visionary brain behind it was Steve Jobs. Some CEOs of Nokia and their strategies to change
Nokia are mentioned below,

Kari Kairamo (1977-1988):

Nokia initially was Finnish Multinational Corporation and was in paper mill industry. Kari
Antero Oswald Kairamo was master of engineering (wood Processing). Nokia was major
player in rubber, paper and cable industry. Kari Kairamo decided to take advantage of
expanding market of mobiles and computers. Kari Kaimaro started transferring
conglomerate to company that is only focusing on the telecommunication. He initialted
process of transforming but due to split personality disorder he committed suicide. His
death stopped transforming process of Nokia in between.

Kari Kairamo was strategic leader. He wanted to shift focus of Nokia from other businesses
to telecom business. It was strategic decision made by him to enhance organization
accordance with changing market needs and emerging new market of computers and
mobile.

Simo Vuoriletho (1988-1992):

After Kairamo, Simo took over company, but in his era conflict arose between two major
stockholders of Nokia. One was The Union Bank and other was Kansallis Osake Pankki. After Simo,
Ollila took over the company.

Jorma Ollila (1992-2006):

Jorma Ollila was true successor of Kairamo. When Jorma took over Nokia was still producing papers,
tyres and cables. This was era when GSM industry was expanding and Jorma was one who took
charge of Kairamo’s mission and focused Nokia to mobile technology. It was strategic move taken by
Jorma, after blunder between shareholders happened.

Jorma took many strategic decisions. Firstly he restructured culturally based on key values such as
trust, loyalty and commitment. He changed organizational structure to Matrix Structure. Employees
of Nokia were enjoying freedom of working Internal product development was on peak, many vital
patents were filled in this era. Nokia as organization was experiencing organic growth.

Jorma was strategic as well as visionary leader, who took many vital steps to make Nokia market
leader in telecom sector.
Olli-Pekka Kallasvuo (2006-2010):
Olli-Pekka was lawyer and CFO of Nokia. He was focused on numbers, profits. Soon Nokia became a
culture which is managed by numbers and profits. Company was focused on short term gains.

This was era when lot of inventions, market disrupting technologies was getting introduced. Nokia
was in desperate need of strong visionary leader. Olli-Pekka was great fit for financing activities and
optimization of production line but definitely was not visionary leader. Olli-Pekka’s era of leadership
was huge setback for Nokia.

Stephen Elop (2010-2013):

In 2007, Apple launched iPhone and it began to reduce market share of Nokia. Till 2010, android and
iOS made huge growth. Samsung and other Chinese companies introduced very attractive mobiles
with android as its operating system. Android was free platform and having various user friendly
apps. It took huge bite of Nokia’s market share.

Nokia needed to differentiate their products, explore new markets and acquire more market share.
Nokia basically needed “Blue Ocean Strategy” to come back in business. Nokia appointed outsider
as CEO, Stephen Elop. Nokia took huge risk by appointing outsider as CEO first time ever in history of
Nokia.

Elop changed matrix organizational structure, which was responsible for slow decision making and
lead to bureaucracy.

He showed lack of trust in Nokia’s own Products, Symbian and MeeGo.

In 2011, Nokia shifted from Symbian to Windows operating System and integrated it with OVI store.
After this sales dropped very highly. Various factories closed. It was failure for Nokia.
References:
1. https://en.wikipedia.org/wiki/Kari_Kairamo
2. https://en.wikipedia.org/wiki/History_of_Nokia