SEMESTER I

BATCH 2018/2019
FACULTY : FPTT
COURSES : BTMI S1/1
COURSE :
BUSINESS AND ORGANIZATIONAL MANAGEMENT
COURSE CODE NO : BTMU 1013

GROUP ASSIGNMENT TITLE:

NOKIA CORPORATION

PREPARED BY:
1. NUR HANEES BT MOHD RAMLEE

2. HAZIRA BT ZOLL

3. NURUL BALQIS BT ABD RAHMAN

4. MOHAMAD HAIQAL DANIAL BIN HAZANI

5. MUHAMMAD AZMIN HAFIZ BIN ABDUL RAHIM

6. MUHAMAD FAID AMMAR BIN FAHRURRAZI

7. TAN CHEE SIANG

PREPARED FOR:
DR. HAZMILAH BINTI HASAN
1.0 INTRODUCTION

1.1 Background Of Nokia

For this project, I have chosen the company NOKIA. Nokia is top mobile
telecommunication company, and offers more than just mobile phones for everyday use.
It is the world’s largest manufacturer of mobile telephones. Nokia produces mobile devices
for every major market segment and protocol, including GSM, CDMA and W-CDMA .
Nokia offers Internet services that enable people to experience music, maps, media,
messaging and games. Nokia’s.

Subsidiary Nokia Siemens Networks produces telecommunications network

equipment, solutions and services. As, it has a huge market share in mobile phones, and
now it can diversify into nokia networks. In this project, we will first talk about Nokia’s
introduction and its aims and objectives, and how it is related to corporate communication.
This project also reports about Nokia’s stakeholders and influence of culture and
technology on Nokia.

Nokia is world leader in mobile phone industry and is world’s manufacturer of

mobile devices. Beside mobile phones its operations include advance incorporated
networks technology, production, sales and marketing. The company’s head office is in
Keilaniemi, Espoo, a city neighbouring Finland’s capital Helsinki and employs 123553
employees in 120 countries, at the yearend (including Nokia Siemens Networks) (Nokia
july,2010).
1.2 NOKIA MISSION

"We help communications, service providers, and build more valuable customer relationships".
(CONNECTING PEOPLE)

1.3 NOKIA VISION

Nokia is a costumer led company. there is a progressive and continuous increase in

consumer involvement with technology and communications globally. people are broadening
their modes of communication to include the web and, social networks are becoming central to
how people communicate. people want to be trully connected, independent of time and place,
in a way that is very personal to them. nokia's promise is to connect people in new and better
ways. Nokia's strategy is to build trusted costumer relationships by offering compelling and
valued costumer solution that combine beutiful devices with enriched services.

1.4 NOKIA OBJECTIVES:

1. Grow more and capture market share.

2. Offers wide range of desired mobile phones so customers get attracted and stay loyal.

3. Create and maintain relationships that will satisfy individual and organizational objectives
2.0 OBJECTIVES

2.1 To objective the competitive advantage of Nokia Company.

2.2 To investigate the governing factors of Nokia business and organizational
management in improving firm’s performance.
2.3 To propose management tool and methods of planning, leading, organizing and
control functions. Including 4P
3.0 COMPETITIVE ADVANTAGE

Competitive advantage is an advantage that a firm has over its competitors, allowing it
to generate greater sales or margins and/or retain more customers than its competition. There
can be many types of competitive advantages including the firm's cost structure, product
offerings, distribution network, and customer support.

Excess strategy so is defined strategy based on an organization's way of thinking is to

harness all the power to seize and exploit opportunities as possible. There is an advantage
contained in the NOKIA corporation

First of all, as broadband systems become more popular, the share of data in all network
traffic will increase. New product possibilities include the Internet whose rapid expansion is
stunning the world. The Internet will generate a new demand for broadband services, thereby
offering new challenges, as well as business potential, to Nokia.

The second competitive advantages, the highly entangled Internet web-sites provide
neither sure access to the data required nor guarantees as to their accuracy. In the future, there
will be many opportunities for companies who can offer a professionally managed Internet
network to operators. Nokia is currently developing circuit switched and packet switched data
traffic which will vastly speed up the transfer of large volumes of data in a quickly and easily
accessed way through the Internet.

The third for competitive advantages is, the telecommunications market is highly
competitive. In the future, telecommunications and information technology, as well as different
media technology applications, will often merge. In order to keep ahead of the field, Nokia is
seeking differentiation strategies which build on its current strengths and include its high
frequency technology expertise. Nokia’s extensive R & D investment has been channelled into
a number of key areas where it knows it can create a competitive edge over its rivals. Staff
training and development is targeted at these areas known as core competencies.

The fourth for competitive advantages is , by focusing on consumer requirements,

Nokia has become a symbol of user-friendliness, simplicity and style, combined with high
technology and broad choice of features. The emphasis placed on meeting consumer
requirements is likely to maintain Nokia’s competitive edge in the future.

The lastly for the competitive advantages is, competitors of Nokia are difficult to
respond as quickly to changing market needs, while providing consumers with products from
top to bottom. From simple low-end products to high-end or change the whole series is bound
in the short term brand awareness among consumers is becoming blurred

Nokia has effectively developed competencies into core competencies to develop a

sustainable competitive advantage. Nokia is currently the worldwide largest mobile phone
maker, therefore they must have significant core competencies to gain competitive advantage
(Yahoo Finance, 2009). Nokia's competitive advantage "is based on scale, brand and services"
(Nokia, 2008).

4.0 ROLES & GOVERNING FACTORS IN FIRM’S PERFORMANCE

Based in Finland, it was once the world’s premier manufacturer and marketer of mobile
phones. Unfortunately, it has been unable to adapt to changing market conditions created by
the introduction of smartphones and the rise of aggressive competitors such as Apple
Inc. and Samsung.

Nokia’s problems and struggles are exposed by their financial numbers. As recently as
June 2012 Nokia reported revenues of $34.08 billion, but on June 30, 2015, Nokia reported
revenues of $16.31 billion. Those revenues represent something of a turnaround for the
company; in June 2013 Nokia reported revenues of just $8.57 billion, or a little over a quarter
of the number from the year before.

4.1 Political Factors Affecting Nokia

The impact of political factors on Nokia is hard to ascertain. The company is

based in the European nation of Finland, but the Finnish government has refused to give
it a bailout or special favors.[1] This forced Nokia into an uneasy alliance
with Microsoft (NASDAQ: MSF) that has since fallen apart.[2]
 Unlike some tech companies, Nokia lacks strong government support because
it is based on a small country. This can both help and hurt the company because it is
not associated with a major power, but it might lack the political clout of American- or
Chinese-based rivals.

Political unrest or other changes in China could disrupt production and limit
Nokia’s manufacturing capabilities in that country. This could force it to move
production to higher-cost locations such as the United States.

4.2 Economic Factors Affecting Nokia

Nokia suffered heavily from the European downturn of recent years. Economic
turmoil in Europe has hurt it badly by limiting buying power in its home markets.
Unlike Apple, Nokia has had a hard time tapping into the fast-growing Chinese market.
Nokia also lacks the vast economic resources available to some of its competitors, such
as Google, Apple, and Samsung.

In particular, Nokia seems to lack the research and development capabilities that
have enabled these companies to develop new devices and tap new markets. One reason
why it lacks those capabilities is that Nokia simply does not have the money to finance
extensive research and development efforts like its competitors do.

4.3 Social/Cultural Factors Affecting Nokia

The major cultural factor that has hurt Nokia has been the widespread adoption
of smartphones and the growing use of apps. Many of the most popular apps, such as
WhatsApp, are designed for more popular operating systems such as Google’s Android
and Apple’s proprietary iOS. Nokia’s decision to utilize the Microsoft Windows Phone
instead of Android limited its appeal to many customers.

The popular association of Apple with smartphones in some countries—such as

the United States—has cut deeply into Nokia’s market by creating a generation of
customers that only buy one brand. In more recent years, Nokia has had to deal with the
popular misconceptions that there are only two brands of a smartphone in the market,
Apple and Samsung, and only two operating systems: iOS and Android. This has kept
many customers from even considering Nokia products.

4.4 Technological Factors Affecting Nokia

The technological challenges affecting Nokia are at the root of the social factors
limiting its business. The development of open-sourced operating systems such as
Android and the invention of apps radically changed the mobile phone market. Mobile
phones were transformed from simple communications devices into handheld
computers.

This led to a situation in which customers wanted to perform a wide variety of

tasks with phones, including taking photographs, watching streaming video and
performing business functions. The problem was compounded by Nokia’s decisions to
utilize the less popular Windows Phone operating system and to stick with its operating
system. This limited customers’ choices and made it difficult to sell Nokia products to
younger consumers.

Nokia has not been able to significantly tap the potentially lucrative market for
other kinds of mobile devices such as tablets and wearable technology. This could
greatly reduce its competitive edge in the future.

4.5 Legal Factors Affecting Nokia

Nokia’s legal environment is extremely challenging because it operates within

the European Union. That body’s regulators have been investigating Google’s use of
Android for a possible antitrust case.[3] EU action against Google could lead to radical
changes in Nokia’s market, such as Android being spun off into a separate company.

It is not clear how exactly such action would affect Nokia, but it could create a
more level playing field and increase Nokia’s access to the European market. One
possible game-changer could be that popular Google solutions such as Gmail could be
taken off of Android, which could limit its popularity.
 4.6 Environmental Factors Affecting Nokia
Like other electronics manufacturers, Nokia is faced with the problem of safely
and economically disposing of its used products in an environmentally-friendly manner.
One costly requirement that it could face in the years ahead is laws making electronics
manufacturers responsible for the disposal or recycling of used devices, a potentially
costly expense, particularly if the devices use lithium batteries.

Another environmental concern that could affect Nokia is increased costs for
materials and components, particularly lithium for batteries. Increased demand for
lithium for other uses such as electric cars could limit its supply and raise costs.

5.0 PLANNING, ORGANIZING, LEADING, AND CONTROLLING

5.1 Planning
Planning is the function of management that involves setting objectives and
determining a course of action for achieving those objectives. Planning requires that
managers be aware of environmental conditions facing their organization and forecast
future conditions. It also requires that managers be good decision makers.

5.2 Organizing

Organizing is the function of management that involves developing an organizational

structure and allocating human resources to ensure the accomplishment of objectives. The
structure of the organization is the framework within which effort is coordinated. The
structure is usually represented by an organization chart, which provides a graphic
representation of the chain of command within an organization. Decisions made about the
structure of an organization are generally referred to as organizational design decisions.

Main reason that affected Nokia organization structure is competitors. Even Nokia
is still the World’s number one in manufacturer of mobile devices but Nokia facing stiff
competition from Apple (AAPL) and Research in Motion (RIM) in smart phone area.
Nokia’s market share has drop from 41 percent to 35 percent in year 2009 in smart phone
market. “Yes, we have lost ground in the smart phone space over the past 18 months, but
the decline has stopped and stabilized in the second and third quarters of 2009” says
Nokia’s executive vice-president and head of the mobile phones entity Rick Simonson to
India’s Economic Times in January of 2010.Nokia has reshuffles its organization structure
with an aim to speed up the product innovation and software to combined with its content
consistent with the objectives of the implementation, applications and services into mobile
computer, smart phone and mobile phone.

Nokia organization structure at year 2007 is leads by Group Executive Board and
follow by Services and Software, Devices, Markets, Nokia’s Siemens Networks and
NAVTEQ. After that is, Corporate Development Office and Corporate Functions. While
the new organization structure is leads by Group Executive Board and follow by five units,
which are Mobile Solution, Mobile Phones, Markets, NAVTEQ and Nokia Siemens
Networks, continue with Cooperate Functions.

Nokia is a flat networked organization structure with certain amount of bureaucracy.

Both organizations are flat structure because both organization structures have wide span
of control and short line of authority. Wide span of control means that one managers can
manage a lot subordinates. For example, the head for Markets department for both
organization structures can control the entire worker that work in the Markets department
and he only report straight to the Group Executive Board. Nokia’s subordinates are given
freedom to make decision because Nokia create freedom for worker’s creativity with
minimal rules and regulations. Nokia also have a certain amount of bureaucracy. For
example, workers are divided into functional departments or known as
departmentalization.

The old organization structure is divided by function. Each department has its own
specialist, such as Device department only responsible for phone, while services and
software department only develop software and improve services. That also means the
work specialization is higher. But the new organization is divided by type of product.
Every unit has responsible to research new product and its services with software. For
example, mobile solution will focus on smart phone also known as high end phone, while
Mobile Phones will focus on affordable phone, also known as low end phone. That means
the work specialization is lower.

Nokia organization structure will keep changing depends on their external

environment but the new organization structure must be flat structure because Nokia
 need a fast decision making and faster product innovation in order to keep growth in
the market.

5.3 Leading

Leading involves the social and informal sources of influence that you use to
inspire action taken by others. If managers are effective leaders, their subordinates will
be enthusiastic about exerting effort to attain organizational objectives. The behavioral
sciences have made many contributions to understanding this function of management.

5.4 Control Functions

Controlling involves ensuring that performance does not deviate from

standards. Controlling consists of three steps, which include (1) establishing
performance standards, (2) comparing actual performance against standards, and (3)
taking corrective action when necessary.

6.0 DISCUSSION

6.1 SWOT Analysis of Nokia

6.1.1 Strength

As one of the oldest companies, Nokia has acquired some strengths in

technology. First, Nokia has a large and powerful distribution channel. To distribute its
products through South Asian countries, it has set up a customer care point and retail
store to sell its mobile phones. However, the largest distribution network is not very
strong. Second, Nokia has introduced a wide variety of products to its market and has
also taken customer feedback. Third, Nokia manufactures and distributes durable
products. By providing quality products, it has built a strong reputation for durability.
They have a long-term reputation. Fourth, in mobile phones, they have a large number
of user-friendly accessories. And finally, the products they produce and sell have a long-
standing reputation.
6.1.2 Weaknesses

Nokia also has weaknesses that it has suffered in the technology sector. The first
disadvantage is that it is slow to respond to competition. In a growing market, they are
slow to take the initiative to become more competitive in this sector. Also, they do not
take part in competitions made by small companies in the field. The second weakness
is the lack of awareness of industrial change. They are less sensitive and responsive to
new changes to consumer expectations. Third, Nokia sells poorly designed
smartphones. This handset does not allow them to attract more new customers. Most of
them are not as attractive as the HTC, APPLE, or Samsung smartphones. Finally, the
company does not offer quality after-sales service, has very little service center.

6.1.3 Opportunities

Like other companies, Nokia companies also have many opportunities to grow
their business. As we consider the Nokia mobile phone segment largely, we are going
to talk about this segment as well. The top opportunity for Nokia is the ever-expanding
smartphone market. The smartphone market is growing day by day. So, there will be a
great opportunity to have a great market for selling products. Second, weakness is
related to the first. Third, demand for smartphones is on the brink. Finally, Nokia has a
strong product image as it is an old company. So, there is already a demand for Nokia
phones. If it starts producing smartphones again, it will be able to make better profits

6.1.4 Threats

Nokia has many threats to address its position as market leader. Such threats are
emerging from other mobile companies in the market. Companies such as Motorola,
the Apple iPhone, Samsung, these companies have come under intense competition
with Nokia in the field of Mobile Phones. Threats can include cheap phones, new
features, new styles and types, good after-sales service, and so on. So Nokia needs to
be mindful of the increasing competition. Nokia needs to come up with a strategy to
address the problems of the present and the near future.
7.0 4P’S OF MARKETING MIX:

7.1. Product:

Domestic strategy: Nokia in its domestic strategy had developed many model of cell
which been updated time to time.

Global strategy: The product Nokia brought for Indian market was more of user
friendly and very durable product. As Indian market always demanded more of rough
and tough mobiles which could be used and handled by every person. Even one of the
main product features for India was that Nokia came out with the cell phone with torch
in it. Which was a good strategy to attract the Indian rural market. As after the analysis
Nokia came to know that 60percent of Indian population stays in India. And rural
India is facing big problem of electricity. Thus this kind of torch in cell phones
attracted the rural India so Nokia came with the product which was desirable by the
market.

7.2. Price:

Domestic strategy: The prices of mobile phones are comparatively according to the
economy of the country. So the call rates in Finland are also comparatively high. But
as there are very less competition so price of cell phone is high.

Global strategy: The Indian mobile market has an over 170million subscribers
making it the most cost effective player in this industry worldwide. More over India
has the most lowest call rates and apart from this mobile phone calling from anywhere
around the world is just two cents per minute, as in front of China it is four cents. The
market is also aiming at immense growth. But so far Nokia is aiming at its Penetration-
Led strategy which means having a mobile phone with every single person of the
world. They are targeting at retaining their costumser which they have termed as
replacement-Led. From a survey its been known that costumers in India tend to change
their mobile phones very frequently. And whenever they come to change their phone
are willing to pay an extra penny for a new upgraded handset. Thus in this way Nokia
have managed to keep their price change as per the demand of its customers In India.
7.3. Promotion:
Domestic strategy: Nokia is already a Finland company. So it is already a famous brand.
Thus it does not require much of promotional activities to be done.

Global strategy: Nokia made its promotion in various ways to capture Indian market.
Among this the main focus was the rural market which was huge. Various film stars were
been hired to promote Nokia. Even Nokia sponsored various cultural activities and sports
activities and sports teams.

7.4. Place:
Domestic strategy: In its domestic strategy it is already defined the places it has to cover.
Which include whole of the country?

Global strategy: For Nokia it was very important to keep a strong distribution channel so
that the customer gets a product at right time and at a right place. Thus for this Nokia
started its website, showrooms, marts and etc.
8.0 CONCLUSION

In this assignment, we are learning the Nokia is once one of the world’s largest mobile
phone company and Nokia’s history is very long and rich. Nokia has a technology giant can be
traced back to the mid-19th century. The name of Nokia is already inseparable from the mobile
phone until now.

We were discussing the three aspects that are very important for Nokia company in this
assignment. The most important element in the internal environment of Nokia company is
capital. If not enough capital, the company could not employ people to get the new technology.
This is because capital is the main source of every company. Besides that, the most important
element in the external environment of the company is competitors. Competitors is an
important character in the market because through the competition with other company can
improve the new product, service system and new technology will be produced and this could
keep the company productive. In that, we learned the most important elements internal
environment and external environment for all company is enough capital and character of
competitors in the market

The organization structure change of Nokia according to the internal and external
environment. The purpose of they change the organization structure to could the problem and
make the company more productive and efficient in the future. This is because the Nokia
Company is producing a new product phone or new technology phone, so they must always
change the organization structure and develop new technology could to attract more customers.

Since the 1990s, Nokia mobile phones have got worldwide appreciation because it has
a good product mobile phone, good service, and high quality to capture a large portion of the
mobile phone market. Nokia is a company that changes the world of communication media and
use the technology to promote mobile phone became the largest mobile phones company.
References
Web Pages

http://www.ukessays.com/essays/business/nokias-value-chain.php

http://id.prmob.net/nokia/sony-ericsson/walkman-2554601.html

http://www.ukessays.com/essays/business-strategy/nokia-competencies.php

http://stiemulia.blogspot.com/2011/01/perusahaan-nokia.html

http://pandri-16.blogspot.com/2012/05/sejarah-dan-profil-perusahaan-nokia.html

http://www.123helpme.com/view.asp?id=120850

http://www.en.sharewise.com/news_articles/61777-
Nokia_Apple%20_Samsung_NOKIA_COR-Nokia-_Apple-_Samsung_NOKIA_COR

https://pestleanalysis.com/pestle-analysis-of-nokia/

https://2012books.lardbucket.org/books/management-principles-v1.1/s05-04-planning-
organizing-leading-an.html

https://www.answers.com/Q/What_are_the_objectives_of_Nokia_Mobile_Company

Book

Courtland L. Bovee, 2017, Business In Action, Global Edition, PEARSON