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PGDM Batch 2 Term 6th Management Control System


Activity Project Report On Nokia Strategies Adopted By Nokia In Order To Achieve Its Goals

Submitted to: Prof. Aniruddha Durafe

Submitted by: Rajkamal Paroha Anshuman Singh Parihar

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INDEX
Introduction to Nokia History of Nokia

Mission & Vision

Goals & Objective

Organizational Culture

Management Control System in Nokia

Nokia Product Mix

Strategy Formulation

Strategy Adopted by Nokia to achieve its goals

Strategy Goal

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Introduction to Nokia
Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the Worlds largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of 42 billion and operating profit of 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones.

Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta River. Between 1865 and 1967, the company would become a major industrial force, but it took a merger with a cable company and a rubber firm to set the new Nokia Corporation on the path to electronics.

From 1968-91, the newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products. In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history. As adoption of the GSM standard grew, the CEO put Nokia at the head of the mobile telephone industrys global boom and made it the world leader before the end of the decade. And in the current century Nokias story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future.

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HISTORY OF NOKIA:
Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometers (nine miles) west of Tampere by the Nokianvirta River, which had better resources for hydropower production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta River. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and began using Nokia as its product brand. In 1912, Arvid Wickstrm founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses. At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy. To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company. In 1922, Finnish Rubber Works acquired Finnish Cable Works In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical Director. After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of Finland's war reparations. This gave the company a good foothold for later trade. The three companies, which had been jointly owned since 1922, were merged to form a new industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a global corporation. The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including rubber boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors, military communications and equipment (such as the SANLA M/90 device and the

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M61 gas mask for the Finnish Army), plastics, aluminum and chemicals. Each business unit had its own director who reported to the first Nokia Corporation President, Bjrn Westerlund. As the president of the Finnish Cable Works, he had been responsible for setting up the companys first electronics department in 1960, sowing the seeds of Nokias future in telecommunications.

TELECOMMUNICATION ERA:
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic device in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment. A key CEO and subsequent Chairman of the Board was vuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronics department and let it run a loss for 15 years. In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. Rfirst fully digital exchange to be taken into service in Europe. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products. In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started. For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications.

FIRST MOBILE PHONE:


The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978. In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks. Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira

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Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately 4,560). Despite the high price, the first phones were almost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie" product and a status symbol. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba".In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

INVOLVEMENT IN GSM:
Nokia was one of the key developers of GSM (Global System for Mobile Communications), the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology. Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989. The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the Nokia 1011, was launched. The model number refers to its launch date, 10 November. The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series. GSM's highquality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use. GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.

PERSONAL COMPUTERS AND IT EQUIPMENT:


In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko. MikroMikko was Nokia Data's attempt to enter the business computer market. The first model in the line, MikroMikko 1, was released on September 29, 1981, around the same time as the first IBM PC. However, the personal computer division was sold to the British ICL (International Computers Limited) in 1991, which later became part of Fujitsu. MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro. Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Espoo, Finland (in the Kilo district, where computers had been produced since the 1960s) at the end of

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March 2000, thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia Display Products' branded business was sold to ViewSonic in 2000. In addition to personal computers and displays, Nokia used to manufacture DSL modems and digital set-top boxes. Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet 3G mini laptop.

VISION
Nokias vision is simply Connecting People

MISSION STATEMENT
Nokia Corporation defines its mission to connect people through mobile phone technology and quotes its mission statement as follows Our strategic intent is to build great mobile products our job is to enable billions of people everywhere to get connected

GOALS AND OBJECTIVES


Nokias Goals and objectives in the market are as follows To build great mobile products. To help people feel near to what matters to them. To enable billions of people to get more of lifes opportunities through mobiles. To capture volume and value growth to connect the next billion people to the Internet in developing growth markets.

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ORGANIZATIONAL CULTURE
Nokia Corporation being one of the largest multinationals in the world and being the 7th most reputable company in the world is sure to have a strong organizational culture, but above that there are many other indicators that guaranty Nokias Strong Culture. Nokia's official corporate culture manifesto, The Nokia Way, emphasizes the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy. The company has its own values which makes it different from all other organizations. As said by the current CEO of Nokia Corporation that Our values are defined by our employees; they serve as a foundation for our evolving culture and are the basis for our way of working. Living them out on a daily basis is our shared philosophy

MANAGEMENT INFORMATION & CONTROL SYSTEM


A management information system is basically used to collect store and analyze data and information but this is not the sole reason. It is now days also used a source of communication or as a communication channel between different department of an organization so an effective and up to date management information system is a strength of an organization and if an organization does not have such a resources then it may count as a weakness of the firm. The management information system used in Nokia Corporation is known as ACM-MIS Lite which is a power integrated system developed by the Association of Computer

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Machinery (ACM), the worlds largest educational and scientific computing society, through which various departments of Nokia Corporation interacts with each other, which results in time saving and efficient utilization of resources. John Clarke is the CIO at Nokia Corporation who is very well qualified and experienced person in the field of Information Technology which goes basically in the favor of Nokia Corporation to have such skilled employees. Data is updated regularly via automatic computer systems to keep the employees notified and up-to-date regarding the latest technology and information. The ACM-MIS has a very user friendly graphical user interface (GUI) which is very easy to use and understand and all employees of the organization are provided with a user id and password of their own to access the information system. One of the vital and significant weaknesses of this management information system is that it can be accessed only through Internet Explorer 5.x and Netscape Navigator 7.x browsers. SUMMARY The management information system at Nokia Corporation is a powerful integrated computer based system that keeps all the employees of the organization linked to each other and the cycle of exchange of information never stops and due to availability of information in time the managers of the organization can take decisions more effectively and efficiently yet the dependency of the system on just two browsers is a weakness of the system.

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NOKIA PRODUCT MIX

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Strategy Formulation
Strategy formulation is a very basic step for the development of a company as it acts as the blue print for the company and is very significant. The initial phase in the strategic management process is the stage of strategy formulation. Nokia Corporation has developed the following strategy to compete and grow in the market.

STRATEGY ADOPTED TO ACHIEVE ITS GOAL


Nokia Corporation has created an alliance with the Microsoft Company through which it has gained the opportunity to launch new mobile phones in the market which would be based on Windows 7 operating system. Nokia Corporation has basically adopted the strategy of New Product Development and Horizontal Integration Strategy through which Nokia

Corporation plans to launch new mobile phones with core 2 duo processors and about 1.0-1.5 GB of Ram and full HD 1080p video recording cameras and in a new slim design and will use Windows 7 operating system as its basic operating system and these cell phones will contain all the features of an official Windows 7 which already has a great acceptance in the World to compete in the market against other mobile phone manufacturers in the world as well as the growing Android (OS).

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STRATEGIC GOAL
Through adopting this strategy Nokia Corporation has the opportunity to gain access of the lost market share and to maintain its position as the no. 1 mobile phone manufacturer in the world and to compete against the other mobile phone manufacturing companies operating in the world. Following are the main strategic goals of this strategy Nokia would develop new mobile phones that will be just equal to a mini laptop as the operating system would be Windows 7 which is the most acknowledged operating system in the world and thus through this Nokia will regain its lost market share. Through applying this strategy Nokia Corporation would be able to minimize its dependency on the Symbian software and thus would provide its customers with a new a fast operating system. Also through adopting this strategy Nokia Corporation would be able to efficiently compete against its competitors in the market and with the new Android operating system that is currently the worlds fastest growing and acknowledgeable mobile phone operating system.

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Reference

www.nokia.com www.oppapers.com Business & Economy Research Papers

thevolunteers.webs.com/goalobjectivesstrategiesadopted.html

Cerebral Height Institute Of Management & Communication

Cerebral Height Institute Of Management & Communication

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