...Nokia Rise and Fall EMSE 6005.10 – Organizational Behavior For The Engineering Managers Professor Andy Sakka Abhishek Thakur Akshat Amrut Oswal Nokia history: Nokia was founded by Fredrik Idestam, a mining engineer in 1865. The name Nokia was decided in 1871 when he opened his second paper mill on the bank of Nokianvirta river. Nokia started out with making paper which incidentally was one of the very first technologies used for communications. Fredrik Idestam was the chairman of the company till 1896 when he retired, and Leo Mechelin took over as the chairman. Under Mechelin, Nokia started a new business unit of electricity generation. In 1898, Eduard Polon founded the Finnish Rubber Works, which later became Nokia’s rubber business. They were making everything from galoshes to tires. In 1912, Finnish Cable Works was established by Arvid Wickstrom, which later became Nokia’s cable and electronic business. In 1967, all three of these jointly owned companies came together to form the Nokia corporation. Nokia’s first thrust in telecommunications came when they began developing radio telephones for the army and emergency services. During this period, the company was involved in many businesses including paper products, tire manufacturing, footwears, communication cables, televisions , electricity generation machinery, robotics , chemicals, plastics and many more. By 1987,, Nokia became one of the leading manufacturers of TV in Europe. By 1990, Nokia decided to concentrate...
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...of Nokia's legendary handsets, you always got the same thing: that famous signature logo, holding hands. And for more than one generation, it was hand-holding Nokia did best - carrying people through, bit by bit, the mobile revolution. Because way before we were shouting, "Damn you autocorrect", we were grappling with new-fangled predictive text. In the days before highly customizable backgrounds and operating systems, there were swappable (and very, very cool) fascias. And, of course, more than 12 years before anyone ever made birds angry, there was the mobile game to rule them all: Snake. Nokia were by no means the first company to release a commercially available mobile phone, but it was the first to do it really well, and with true mass appeal. "Back in the 1990s there weren't these other big brands," says Ben Wood, an analyst at CCS Insight. "Nokia were so dominant. People didn't talk about what brand, it was just about the number, 3210, or whatever you had. They took users on a journey." Era of complacency So far, so good - but then one presentation changed everything. "Complacency had kicked in," Mr. Wood continues, "they felt they could do no wrong. "Then all of a sudden, in January 2007, Steve Jobs walked on to a stage and pulled an iPhone out of his pocket and changed the world forever." The fall was swift. According to figures from analyst firm Gartner, Nokia's smartphone market share in 2007 was a dominant 49.4%. In subsequent years, it was 43.7%, then...
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...Assess and critically comment on the idea that strategic planning systems can stifle innovative thinking in organisations It is debatable whether strategic planning systems can stifle innovative thinking in organisations. Although strategic planning systems are used in order to make companies work more efficiently, they may restrict organisations from showing their true potential by stifling innovative thinking. There are other theorists that state that listening to closely to markets and strategies can create a barrier to commercialising new technology and lead to reduced competitiveness. (Ferrell and Lukas 2000). In order to truly understand and analyse whether innovative thinking is being constrained by strategic planning systems, it is essential to understand which strategic planning systems are being used, whether their implementation limits the allowance to new and different approaches to organisations, and whether companies in real-life are being affected by this constraint. Before analysing whether innovative thinking is oppressed by strategic planning systems, it is important to define what a strategic planning system is. According to the BNET Business Dictionary (2007), strategic analysis is ‘…the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy’. There are many different tools and analytical methods that are used by companies but there are three main...
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...Proposal "The making, the rise and fall of kings - Nokia vs. Samsung" Prepared by AKINSANMIJU LILIAN TAIYE D40084081 obayemi.lilian@yahoo.com Submitted to Managing Organizational Change Instructor: Professor Romuald Stone HRM-587-13306 01/10/2014 The two companies I am proposing to research on for the purpose of this course project are forces to reckon with in the world of electronic and electrical business, with focus on the telecommunication handheld devices - Nokia and Samsung electronics. It is a known fact that the two companies are known all over world with their uniqueness in the production of mobiles phones even though Samsung electronics has it named well rooted amongst the giants of home electrical and electronics home appliances manufacture while Nokia was known to be one the world leading manufacturer of mobile phones. In the recent year about two decade ago, the discovery of the innovative transformation of the telecommunication sector led to ever increasing opportunity that is abound with new technological revolution. The course project will focus or lay emphasis on the trend of organizational changes, with the view to analyze the effect they have on the overall developmental progress of the two companies. Samsung electronics founded in 1967 but took it turn into telecommunication business with the establishment of Samsung mobile in 1983 and as for Nokia, it became incorporated...
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...TABLE OF CONTENTS INTRODUCTION ………………………………………………………………………3 TOYOTA……………………………………………………………………………......4 TOYOTA BRANDING STRATEGY………………………………………………… 5 NOKIA…………………………………………………………………………………. 6 NOKIA BRANDING STRATEGY…………………………………………………….7 REFERENCES INTRODUCTION Observing the 2013 and 2014 world global branding ranking, I noticed that the top ten brands are mostly brands that the 21st century would consider as essentials. Brands like Coca-Cola and Mac Donald’s (Food) apple (communication), Toyota (Transportation) etc. Innovative and technological product are the brands that are mostly at the top, highly innovative products who are also committed to a sustainable drive are seen growing from the bottom spot also. The top five spot remained unchanged from 2013 to 2014. With the top spot remaining unchanged so many changes were made at bottom spot and Nokia was a big fall out declining tremendously from 57 position all the way to the bottom three, Apple maintained the first position with a value of 118,863$m and a +21% while google and Toyota still maintained their spot, bottom slackers like Gap moved a spot up from 100 to 99th position. My research will be focused on Nokia and Toyota, talking about the the brands, their marketing strategies, how they have been able to increase their sales globally and their ranking performance among the global brands. TOYOTA MOTOR MANUFACTURING COMPANY Toyota is one of the worlds, popular...
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...Executive summary This essay is aim to identify main factors that contribute to Pixar Animation Studio’s victory in animation industry from a motivational theory perspective and illustrate the close relationship between Pixar’s creativity practices and its empowerment management. The company has conducted a serious of motivational strategies including Financial Reward, Recognition and others, Job Design, Empowerment. And all those strategies help foster creativity and form a healthy organizational culture based on teamwork and trust. This paper will also evaluate Pixar’s empowerment from both individual and organizational aspects. Finally, we will also use Pixar’s experience to analyze Nokia’s collapse. Table Content Executive summary…………………………………………………………………….……………..1 1. Introduction…………………………………………………………………………………………..3 2 Theoretical arguments.……………………………………………………………………………4 2.1 Motivational factors…………………………………………………………………………….4 2.2 Empowerment management…………………………………………………5 3. Practical Implications…………………………………….…………….…………………………7 4. Conclusion……………………………………………………………………………………………8 5. Reference........................................................................................................... 9 Introduction It has been generally realized that motivation plays a critical role in finish tasks and objectives for companies that base on teamwork or workplace comprised of various positions, and it is a necessary skill used by managers and executives to...
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...Abstract: The roots of Nokia go back to the year 1865 with the establishment of a forestry industry enterprise in South-Western Finland by mining engineer Fredrick Idestam. While in the year 1898, witnessed the foundation of Finnish Rubber Works Ltd, and in 1912, Finnish Cable Works began operations. Gradually, the ownership of this two companies and Nokia began to shift into hands of just a few owners. Finally, these three companies were merged to form Nokia Corporation in 1967. [1] Nokia Corporation engages in the manufacture of mobile devices and mobile network equipment, as well as in the provision of related solutions and services worldwide. The company has four main business functions or segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment provides various mobile voice and data devices. This segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Role of Strategy: Every company on a small level with very low risk or a multinational company with much more to lose than just money on the line have to have a strategy to make its name in the world with other companies in mind. Strategy is as important in an organisation like walking for a human. Behind every successful organisation there is a strategy. “It may be hard for an egg to turn into a bird: it would...
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...An economic downturn can be accounted for when the GDP of the country falls. The GDP is the Gross Domestic Product of the country and accounts for all transactions made throughout each quarter of the accounting period. If the GDP falls for two consecutive quarters then that is classed as a recession and the government should take action to help stimulate the economy. The worst most recent recession started in the 3rd quarter of 2008 and lasted for 7 consecutive quarters until the 4th quarter of 2009! In this essay I will discuss how different types of industry are affected by a recession and will look how some are often better than others. One of the main changes in a particular industry during the recession was the Fast Food industry. During the recession these industries seemed bulletproof to the dramatic decrease in luxury spending due to the increased price of necessity goods, some of which I will discuss below. The first company which have been doing well whilst England have been dipping in and out of recession is KFC, they have seemed to reap the benefits of people having less money to spend whilst being able to put back into the economy by creating jobs, this is shown by in Worcester the ‘Job Centre’ was approached by KFC to fill 70 jobs that were to be created, this story was published to BBC news on the 27th of October 2008 which was not long after the 3rd quarter of 2008 meaning this was when the recession firs began. Also on the 16th February 2009 BBC news published...
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...Introduction Nokia is of the largest telecommunication manufacturer company and is known globally for its reliable and good quality products. It has good reputation all around the world. It is leading brand in some areas and still growing day by day. About the company Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications equipment manufacturers. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry. Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA. SWOT analysis of Nokia SWOT analysis is the tool which helps the organization to understand where it stands. The SWOT analysis of Nokia make it understand that where Nokia stand in the market. Strengths * Strong brand name Nokia has the strong brand name which is its one of the most important strength because it is then favorable for Nokia to launch its new products because it is reliable for the customers by establish as strong brand. * User friendly The product being user friendly and have all the accessories one want that is why...
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...THE RISE AND FALL OF NOKIA ------------------------------------------------- Using the SWOT and TOWS frameworks, you’re invited to suggest strategic descisions that could reignite the success for Nokia’s handset and services business that was acquired by Microsoft in April 2014. You’re encouraged to refer to external references to get an up-to-date look at the current situation of the company. * SWOT framework STRENGTHS (S) * Totally integrated into Microsoft: Nokia benefits from Microsoft’s (and Nokia’s) engineers, R&D and operating system, but also from financial power * Access to Microsoft’s Office suite of applications (Excel, Word…) * US operations sites are newly installed in California in order to attract software developers. * Knowledge of emerging markets : Nokia has been the first manufacturer to show an interest in these markets. It has recently moved some parts of its operations from China to India. * Nokia invested in the networked car | WEAKNESSES (W) * Old-fashioned image (“connecting people”) which doesn’t reflect the current high-tech sector we’re in. * Lack of innovation and R&D * Appears to be a new competitor in handset while it was the world’s leading manufacturer. * Nokia has no longer market share in high-end of the market. * A weak presence in the American market (and in Japan). * Problematic of the integration of two different cultures (Microsoft’s one and Nokia’s one) * Lack of production capacity...
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...forces model on Nokia, I felt a PESTLE analysis would analyse the macro environment of Nokia. These are all the external forces that are out of Nokias' control but have a significant effect on how the company operates and the strategic decision they make. This model looks at the Political, Economical, Social, Technological, Legal and Environmental factors relating to Nokia and the industry they operate in. To understand the macro environment more this article will study each section in depth. Political The Political factors relates to the factors which the government also affects such as government instability or rules and regulations which the business must follow. Nokia have recently moved one of its manufacturing facilities to India, and because of this it is important that Nokia follow the rules and regulations that are set in India, so that they can operate as efficiently as possible. The types of things they will have to be aware of is the minimum wage, the maximum hours a week employees can work and especially the Health and Safety regulations; this is to avoid any bad press or revolt from employees that will ultimately damage the reputation of Nokia both short term and long term. As well as foreign government it is vital that Nokia have a good relationship with their government in Finland, as any political instability such as a change in government or coalition may result in new laws being implemented, which will affect Nokia a lot Economical Nokia are vital to the...
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...world’s No. 1 mobile maker and the first brand of phone everyone owned. Nokia were by no means the first company to release a commercially available mobile phone, but it was the first to do it really well, and with true mass appeal. During the late 1990s and early 2000s the 147-year-old Finnish company became a global technology star: In some emerging markets, so the story goes, the word ‘Nokia’ became a generic term for ‘mobile phone.’ But becoming synonymous with phones is where it all went wrong. Nokia sold phones in the hundreds of millions, controlled supply chains and had the tightest relationships with carriers. Customers meanwhile had to do mobile computing on a screen the size of their thumb. While Apple was designing the iPhone and Nokia was selling half a billion phones each year, Google bought a company called Android and announced an Open Handset Alliance, a grouping of industry players who would come together to build an open source OS for smart phones. Nokia was invited to join but refused to demean itself. As a result, Nokia’s brand image is declining since 2008. In 2007, Nokia had a market capitalization of €110 billion; by May 2012 this had fallen to €14.8 billion. Nokia failed to build a marketplace that would have lured in users and application developers. But alike touch screens, it was not as if Nokia did not try. They tried multiple times and failed every time. Situation analysis The Nokia of today is a very different, much diminished company compared to...
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...This Marketing Plan Audit provides an analysis of the brand situation, current strategies and provides suggestions and implementation plan for Nokia Corporation. Nokia is a Finish manufacturer of mobile devices, which makes a full range of cellular phones for all major consumer segments worldwide, including Internet-enabled devices enable people to experience music, maps, media, messaging and games. Company has over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 60 billion dollars and operating profit of 2.86 billion dollars as of 2010. Nokia is the world's largest manufacturer of mobile phones: its global device market share was 31% in the fourth quarter 2010, but dropped below 30% in the first quarter 2011. In June 2011, Nokia was overtaken by Apple, as the world's biggest smartphone maker by volume. For many years Nokia enjoyed an overwhelming domination on the market of personal mobile devices. The company managed to build the strong brand, easily recognizable style of it’s devices and consumer favorite. Due to serious mistakes in product and distribution strategy, as well as growing competition from companies like Apple, Samsung ,Motorola and others, Nokia started to experience serious problems with its sales, market share and consumer loyalty. Presented Audit defines Nokia’ current issue with the Brand positioning, that caused the diminishing of the brand popularity and lowered competitive strength of the company...
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... Company- Nokia Background of the study: Pricing Techniques: are the methods adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products. Different pricing methods place varying degree of emphasis on selection, estimation, and evaluation of costs, comparative analysis, and market situation. It takes into view factors such as a firm's overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends. The term pricing technique is also called cost plus because it attempts to secure the firm against a loss by imbedding marginal and fixed costs into the price consumers pay. The term plus refers to markup, which may ensure some strictly positive profit. If, the firm sets markup = 0, the firm breaks even because the price equals the average total cost. Objective of the study: The objective of the study is to see the different pricing strategies used by Nokia for its different products. Nokia started by making paper – the original communications technology Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. In the late 1970s, Nokia started taking...
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...MGT401 Term Paper on Submitted To: Submitted By: Mohammad Rezzaur Razzak Kamrijjaman Department Coordinator ID-12304076 BBS sec-01 Date of Submission – 15.12.14 Letter of Transmittal 15th December, 2014 Mohammad Rezaur Razzak Associate Professor BRAC Business School BRAC University Mohakhali, Dhaka. Subject: Submission of report on “Nokia Corporation” Dear Sir, With due respect, I am submitting my report on the above mentioned title for the fulfillment of the requirements of my Strategic Management (MGT401) course. I took this report as an opportunity to reflect my learning of the techniques and skills of this three months long course. I realize that my report may not be flawless; there might be some mistakes which were not noticed by me due to my inadequate professional knowledge. By collecting information for this report I also learned something very superfluous in practical. I look forward to make the optimal use of the knowledge that I gained from this course. I would like to gratitude you for giving me such a great opportunity to prove my ability in making a quality report. If any mistakes remain I heartily apologize for those. I hope you will take my mistakes with due consideration. Thanks. Sincerely yours, Kamrujjaman ID: 12304076 BRAC Business School BRAC University Acknowledgement ...
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