A FAILURE OF MANAGEMENT OVER LEADERSHIP NOKIA

FREE BUSINESS
PRESENTATION TEMPLATE

Presented by:- ANSHIKA SINGH, DAMINI CHAUHAN & SHUBHAM RASTOGI

PGDM 2019-21 (A)
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 Nokia’s Global Presence

HEAD OFFICE IN
STRONG RESEARCH & DEVELOPMENT FINLAND
PRESENCE IN 16 COUNTRIES
SALES IN OVER 160

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COUNTRIES

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DEVICE

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MANUFACTURING IN 9
COUNTRIES

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INFRASRUCTURE
EQUIPMENT

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MANUFACTURING IN 4
COUNTRIES

According to October
2009 sources. 2
 BRIEF SUMMARY OF NOKIA
Nokia is a Finland based Multinational corporation founded by FREDRI.K IDESTAMS, on 12th of May 1865, as a single paper mill
operator.
Its business model transformed from a rubber, paper and cable company to a company that focused on mobile handsets and
mobile telecommunication infrastructure (components). Nokia in 1990s and early 2000s, was one of the largest mobile phone
companies in terms of volume, sales, market share and profit, but it failed to make the transition to the smartphone market in
the early 2010s.

Comparison of Sales of Mobile phones by Nokia.

75% 50% 25%

2005 2010 2015

Note:- (These numbers are approximations) percentage representation is on the basis of research only. 3
 The Great Decline of Nokia’s Market share of global smart phone market

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EDIT HERE
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edited. Edit text
here.

Source: Statista.com
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 Is It Management OR Leadership?
In less than a decade, Nokia
emerged from Finland to lead
the mobile phone revolution. It
rapidly grew to have one of the
most recognizable and valuable
brands in the world. At its
height Nokia commanded a
global market share in mobile
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phones of over 40 percent.
While its journey to the top was
swift, its decline was equally
so, culminating in the sale of its
mobile phone business to
Microsoft in 2013.
It is tempting to lay the blame
3 4
for Nokia’s demise at the doors
of Apple, Google and
Samsung.
Nokia had begun to collapse
from within well before any of
these companies entered the
mobile communications
market. In these times of
technological advancement,
rapid market change and
growing complexity, analyzing
the story of Nokia provides
salutary lessons for any
company wanting to either
forge or maintain a leading
position in their industry.
This rapid growth came at a
cost. And that cost was that
managers at Nokia’s main
development centers found
themselves under ever
increasing short-term
performance pressure and
were unable to dedicate time
and resources to innovation. 5
 Focused only on physical existence of products.
Software was taking precedence over hardware as the critical
01 competitive feature in the industry.

Unable to adapt the changes of environment

At the same time, the importance of application ecosystems was

02 becoming apparent, but as dominant industry leader Nokia lacked the

skills, and inclination to engage with this new way of working.
REASON Lack of focus towards innovations
FOR ITS The limitations of Symbian(OS by Nokia) had become painfully obvious
DECLINE 03 and it was clear Nokia had missed the shift toward apps introduced and
evolved by Apple.

Lack of teamwork
Owing to Android system was a fully open system, which can be applied to
04 any phone, so far many mobile phone manufacturers have joined the
Android camp, such as Samsung, HUAWEI, HTC, SONY Ericsson,etc. but
Nokia refused to cooperate.
Unable to analyse market & resolve inner conflicts
05 Top management was no longer sufficiently technologically savvy or strategically
integrative to set priorities and resolve conflicts arising in the new matrix.
Increased cost reduction pressures rendered Nokia’s strategy of product
differentiation through market segmentation ineffective and resulted in a
proliferation of poorer quality products.

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 WHAT OTHER COMPANIES CAN LEARN FROM NOKIA?
1)To prepare for culture
of change
Leaders & their organization
should embrace a culture of
change. They should be
prepared to survive within the
competitive environment.
2)Emotional Intelligence 3)Collaborative leadership
skills in actions style will enhance the
management style
It is mandatory The policy of closed
especially when, at doors will die quickly.
the decision table Top management needs
an organization will to learn how to properly
have a mix of listen to their customers,
generations. partners and employees
etc.
4)Internal management
should be cooperative with
each other as well
Middle managers will need more
courage to challenge the CEO or
Sr. Leadership for the benefit of
the whole organization and to
accomplish this, HR should act as
a real business partner and
mitigator.
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In spite of all the failures, Nokia have made a
great comeback, in 2016 Microsoft sold Nokia to
HMD company, which is a subsidiary of giant
Foxconn, who is currently manufacturing new
devices running Android under the name of
NOKIA.
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