CHANGE MANAGEMENT ON NOKIA

8/3/2019 CHANGE MANAGEMENT ON NOKIA

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PROJECT OF

CHANGEMANAGEMENT ON

NOKIA

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Acknowledgemen

t:

It is always said that we need two handsto clap and it proved exactly the same.

One hand was ours and other was

provided by none other than Sir. VIPINGUPTA who served us as a mentor andalso lifted our moral up in the wholeprocess. He took pain and helped us inovercoming the hurdles of our path. Along

with sir we would like to give our specialthanks to individuals who devoted theirprecious time on our live project andhelped us by filling the questionnaire. Inshort words this project is one amongthose which will live in our hearts, as the

project made us come across various factsof life and may be time will also fail indiluting it from us as all together.

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Preface:-

In this era, where the technology is growing in avery faster speed and every positive change isbringing new and enhanced features with them,the cellular phones are at the very hot issue inthis growing technology.

The technologies in these cellular/mobilephones are enhancing and developing day byday, including new features of entertainment,and multiple options like imaging facilities,movie/animation features, sound technologiesetc.

When the technology is the matter, every

consumer/user prefers the latest, best andinteracting featured technologies and alsoprefers these facilities in less cost.

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So, in this view, there is a very big and fastcompetition between manycompanies/manufacturers of cellular phones

at the world level.So I have choose the nokia for my change

management project.

Executive Summary:

For this project, we have chosen thecompany NOKIA. Nokia is a mobiletelecommunications company, and offers farmore than just mobile phones for everyday use.

They offer networking solutions for businessesthat help businesses stay connected andcommunicate with each other at all times andplaces. For them, Nokia also offers specialmobile phones with exquisite and uniquefunctions and options. In this project, we willfirst talk about what Nokia is and what theydo. We will talk about their history, and how

they came to where they are today. Vision,goals, and their strategy are discussed, as wellas their wide variety of products and servicesoffered for the regular consumer, businesses,

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and service providers. Nokias success benefitswere some advantages they had in the market.

These also include the advance technology and

features, as well as services they offer to theirconsumers. However, like most othercompanies, Nokia has some weaknesses, butwe consider these to be very minimal, andalmost only come down to their competition.Lastly, we will talk about their informational

business model. This model includes Nokiaswork organization, control system, industrialrelations, human resources, business strategy,and finally, enterprise organization. We will lookclosely at and discuss all of these elements, andwhy we think that they are relevant to Nokia.Nokia has recently undergone a majororganizational restructure.As a result of thisrestructuring, Nokia has revised it goal, missionand strategy into clear and specificobjectives. On Nokias website they state, Ourgoal is to be a good corporate citizen whereverwe operate, as a responsible and contributing

member of society. We take part in long-termprojects aimed at helping young people createtheir own place in the world, for examplethrough our global youth programs. Theyhope to fulfill their goal by following their

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mission statement that is, By connectingpeople, we help fulfill a fundamental humanneed for social connections and contact. Nokia

builds bridges between people both whenthey are far apart and face-to-face and alsobridges the gap between people and theinformation they need. Nokia plans to achieveits goal and pursue its mission by implementingits strategy of, Expand mobile voice, drive

consumer multimedia and bring extendedmobility to enterprises.There are many different products Nokia

offers within a common product line. Thiscommon product line is cellular phones andaccessories. Nokia offers many different cellphones with many different features. Nokia,however, is more than just a manufacturer. Inaddition to its manufacturing base, Nokia offerscellular phone and digital television servicethough in limited areas. It may seem thatNokia has a limited product line but wheninclude with the research and development of

these areas, their service and manufacturingportfolios become more impressive.

As it can be assumed the cellular phonemarket is very lucrative. In 2003, according to

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The Journal.com, Nokia had sales of $37.1billion and profit of $4.53 billion. Thisencompasses all revenue and profit areas, with

a market share in the phone industry of nearly35%. This market share has declined, at leastin the first quarter of this year, to 29%. Rivalphone manufacturers are stealing market shareaway from Nokia, while Nokia failed to meet thedemand for its phones in the first quarter. More

recent estimations of market share where notavailable as of November 2004.

Technology is absolutely crucial to theprosperity of Nokia. Technology is what setsNokia apart from its competitors. As a pioneerin the development of cell phone capabilities,

Nokia uses cutting edge technology in mobileinstant messaging, browsing, video, imaging,music, and emailing. Security while using thefeatures is also one of their primaryconcerns. With new bluetooth technology,Nokia is providing peace of mind in informationtransfers. Data synchronization and wireless

Internet capabilities are also part of Nokiasadvanced mobile technology. Also usingadvanced technology is the digital television

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123,000 employees in 120 countries, salesin more than 150 countries and globalannual revenue of EUR 41 billion and

operating profit of 1.2 billion as of 2009.Itis the world's largest manufacturer ofmobile telephones: its global device marketshare was about 39% in 2009, up from 37%in Q4 2008 and 38% in Q3 2009, and itsconverged device market share was about40% in up from 35% in 2010. Nokiaproduces mobile devices for every majormarket segment and protocol, includingGSM, CDMA, and W-CDMA (UMTS). Nokiaoffers Internet services such as applications,games, music, maps, media and messagingthrough its Ovi platform. Nokia's subsidiary

Nokia Siemens Networks producestelecommunications networkequipment.Nokia has sites for research anddevelopment, manufacture and sales inmany countries throughout the world. As ofDecember 2009.

Nokia had R&D presence in 16 countries andemployed 37,020 people in research anddevelopment, representing approximately30% of the group's total workforce. TheNokia Research Center, founded in 1986, is

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Nokia's industrial research unit consisting ofabout 500 researchers, engineers andscientists. It has sites in seven countries:

Finland, China, India, Kenya, Switzerland,the United Kingdom and the United States.

Nokia is a public limited liability companylisted on the Helsinki, Frankfurt, and New

York stock exchanges.Nokia plays a verylarge role in the economy of Finland; it is byfar the largest Finnish company, accountingfor about a third of the market capitalizationof the Helsinki Stock Exchange (OMXHelsinki) as of 2010, a unique situation foran industrialized country. It is an importantemployer in Finland and several smallcompanies have grown into large ones as its

partners and subcontractors.Nokiaincreased Finland's GDP by more than 1.5%in 2010 alone. In 2011 Nokia's share of theFinnish GDP was 3.5% and accounted foralmost a quarter of Finland's exports in2011.

Nokias first century: 1865-1967

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The first Nokia century began with Fredrik Idestam'spaper mill on the banks of the Nokianvirta river.Between 1865 and 1967, the company would

become a major industrial force; but it took a mergerwith a cable company and a rubber firm to set thenew Nokia Corporation on the path to electronics...

1865: The birth of NokiaFredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland,where the Nokia story begins.

1898: Finnish Rubber Works foundedEduard Poln founds Finnish Rubber Works, whichwill later become Nokia's rubber business.

1912: Finnish Cable Works founded

Arvid Wickstrm starts Finnish Cable Works, thefoundation of Nokia's cable and electronicsbusinesses.

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1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomesPresident of Finnish Cable Works.

1960: First electronics departmentCable Works establishes its first electronicsdepartment, selling and operating computers.

1962: First in-house electrical deviceThe Cable Works electronics department produces its

first in-house electrical device - a pulse analyzer fornuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cableworks formally merge to create Nokia Corporation.

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The newly formed Nokia Corporation was ideallypositioned for a pioneering role in the early evolution

of mobile communications. As Europeantelecommunications markets were deregulated andmobile networks became global, Nokia led the waywith some iconic products...

1979: Mobira Oy, early phone makerRadio telephone company Mobira Oy begins life as a joint venture between Nokia and leading Finnishtelevision maker Salora.

1981: The mobile era beginsNordic Mobile Telephone (NMT), the first internationalmobile phone network, is built.

1982: Nokia makes its first digital telephoneswitch The Nokia DX200, the companys first digitaltelephone switch, goes into operation.

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1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman birth of a classicNokia launches the Mobira Cityman, the firsthandheld NMT phone.

1991: GSM a new mobile standard opens upNokia equipment is used to make the worlds firstGSM call.

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Mobile revolution:1992-2011In 1992, Nokia decided to focus on itstelecommunications business. This was probably themost important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobiletelephone industrys global boom and made it theworld leader before the end of the decade...

1992: Jorma Ollila becomes President andCEO Jorma Ollila becomes President and CEO ofNokia, focusing the company on telecommunications.

1992: Nokias first GSM handsetNokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launchedNokia launches the 2100, the first phone tofeature the Nokia Tune.

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1994: Worlds first satellite call

The worlds first satellite call is made, using a NokiaGSM handset.

1997: Snake a classic mobile gameThe Nokia 6110 is the first phone to feature NokiasSnake game.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

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1999: The Internet goes mobileNokia launches the world's first WAP handset, the No

Nokia now:2009Nokias story continues with 3G, mobile multiplayer

gaming, multimedia devices and a look to thefuture...

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and CEO; Jorma Ollila becomes Chairman ofNokias board. Nokia and Siemens announceplans for Nokia Siemens Networks.

2010Nokia recognized as 5th most valued brand inthe world. Nokia Siemens Networks commencesoperations. Nokia launches Ovi, its new internet

services brand.

2011Nokia's three mobile device business groupsand the supporting horizontal groups arereplaced by an integrated business segment,Devices & Services.

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Nokia Phone Life Style Segmentation

Style Variable

Basic / Entry

Expression

Active

Classic Fashion

Premium

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Nokia Phone functionality Variable

Functionality Variable

Voice

Entertainment

Imaging

Media

Business Application

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Chapter 3

Nokias Human Resource Department:

The following excerpt is from Nokia SupplierRequirements, defining our expectations forHuman Resources.

Workforce planning and recruiting

Supplier shall have a system to ensure theavailability of workforce for current and futurebusiness needs, in a sustainable and ethical manner,at both organizational and unit level.

Resource planning

Resources need to be available to meet both currentand future business needs according to companystrategy. Resource planning shall be conducted atboth organizational / global and unit / local levels. Inparticular, underage workers or false apprenticeshipschemes must not be used.

Recruiting and exit procedures

Supplier shall ensure that competent and eligible

individuals are recruited and appointed to openpositions, according to competence, with equalopportunity and on a voluntary basis. Supplier shallcheck the eligibility of candidates and that theyexceed the minimum legal age of employment.

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Upon employment, individuals shall be provided witha work contract /agreement /offer letter, basicinduction training and not be required to give

financial deposits or original identity documents.Forced labor must not be used. Employees shall befree to leave the company after giving reasonablenotice. Supplier shall ensure that exit procedures arecompliant with local legislation, international laborstandards and applicable collective agreements.

Non-disclosure and confidentiality agreements

Supplier shall ensure that employees working withNokia products or projects or having access to Nokiaspecific knowledge, information or data, or to Nokiafacilities, have signed a Non-Disclosure Agreement(NDA). Supplier shall ensure that the employees fullyunderstand its practical implications.

Occupational health and safety protection

Supplier shall ensure that physical and mentalworking conditions allow employees to perform theirtasks safely and efficiently. Supplier shall haveprocedures for identifying, minimizing andpreventing hazards. They shall be implemented as,for example, safety instructions, work procedures,preventive maintenance, employee training,identification of potential hazards and appropriatesafety devices, personal protective equipment andclothing, hearing protectors, chemical control ormachine safeguarding.

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Supplier shall nominate and train personsresponsible for the occupational health of employees.Supplier shall have specific procedures in place for

employees under the age of 18 (young workers).Supplier shall assume responsibility for theoccupational health of employees working off-site(e.g., at customer premises).

Occupational health and safety response

Supplier shall have occupational health and safetyprocedures to prepare for and respond to emergencysituations involving occupational health and safetyrisks. Supplier shall record and investigateemergency situations. Management shall encourageemployees to report accidents and take action upon

these records and reports.Employee amenities

Supplier shall ensure that employees are providedwith access to potable water and clean toiletfacilities. Canteen facilities and food preparationareas shall be clean and safe, and food shall be

provided at reasonable cost. Employee dormitoriesshall be clean, safe (equipped with, e.g., fireextinguishers and exits), adequately ventilatedand/or heated, shall provide reasonable personalspace and shall be provided at reasonable cost.

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Competence analysis: Supplier should periodicallyconduct competence analyses to identify theknowledge and skills/competences required to

perform the organizations business activitiesaccording to short- and long-term strategic goals.

Competence development

Supplier shall ensure that employees, at all levelsand with equal opportunity, have the education,training and competence they need for their

positions and tasks. Supplier shall develop trainingplans based on competence analyses and implementthem to enhance and develop workforce capabilities.Supplier shall maintain a training register, detailingthe training employees have received.

Nokia specific training and certification

Supplier shall ensure, on request, that personnelallocated to Nokia work have the necessary trainingon Nokia policies, products, processes and guidelinesand, if needed, have necessary licenses andcertificates. Supplier shall ensure such licenses andcertificates are valid in terms of time and scope.Supplier, providing services at Nokia facilities,including (Nokia's) customer sites, shall ensure thatits personnel act in accordance with Nokia valuesand Code of Conduct.

Working time and time off

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Supplier shall ensure that employees can performassigned tasks efficiently without exceeding themaximum working hours as defined by local labor

laws or applicable collective agreements. Suppliershall ensure that employees have at least one day offper seven-day week, and that overtime work isvoluntary. Holidays (e.g., public holidays) and leavesof absence (e.g., medical or parental) shall complywith local labor laws or applicable collectiveagreements.

Compensation and benefits

Supplier shall provide all employees (permanent,temporary, apprentices and contract workers) withfair compensation (wages /salaries) meeting orexceeding local legal and industry minimumstandards, for regular as well as overtime work.Supplier shall also provide employees with benefitsto reward contributions, skills and behaviorconsidered vital to success. Compensation andbenefits shall be aligned with relevant companypolicies.

Fair treatment

Supplier shall ensure that employees at its facilitiesare treated with respect and dignity, equalopportunity and are safe from abuse, harassment orbullying of any kind (e.g., physical, verbal, mental,

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sexual, racial, cultural, age or disability related).Supplier shall ensure company rules / guidelines arecommunicated to employees. Supplier shall ensure

that disciplinary procedures prohibit physicalpunishment and do not support financial deductions,or the threat thereof.

Performance management

Supplier should have a system to manage employeeperformance. Supplier should ensure individual

objectives are derived from company strategy andpolicies. Supplier should ensure performance isevaluated fairly and objectively, against definedcriteria and on a periodic basis, to identify ways toimprove performance.

Communication and coordination

Supplier shall ensure that information relevant toemployees (about, e.g., business activities, changesand results) is communicated across theorganization. Supplier shall ensure employees canshare such information fast enough to be able toalign their activities efficiently. Supplier shall respectthe right of all employees to form and join tradeunions of their choice and to bargain collectively, andin cases this is restricted by law, facilitate parallelmeans to ensure that individuals or groups are ableto raise concerns to the attention of themanagement.

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Employee satisfaction

Supplier should have the means to evaluate andimprove employee satisfaction. A company ofsubstantial size (i.e. headcount exceeding 100)should have an employee satisfaction program basedon employee opinion surveys and should take actionbased on the results of the program.

Feedback and complaint channels

Supplier shall have a system through whichemployees can give feedback or complain aboutunethical conduct, unfair treatment or practices,violation of company values, policies and procedures,or improvement ideas and suggestions. Managementshall, when appropriate, act upon this feedback andhandle it confidentially and anonymously.Management shall ensure that there are no adverse

consequences as a result of giving feedback.

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Chapter 4

Nokia Financial Department:

Nokia Board of Directors will propose a dividend of EUR 0.40per share for 2009 (EUR 0.40 per share for 2008)

Non-IFRS fourth quarter 2009 results1

EUR million Q4/2009 Q4/2008 YoY

Net sales 11 988 12 665 -5.3%

Devices &Services

8 179 8 141 0.5%

NAVTEQ 225 206 9.2%

NokiaSiemensNetworks

3 625 4 340 -16.5

Operatingprofit

1 473 1 239 18.9

Devices &

Services

1257 983 27.9

NAVTEQ 54 53 1.9%


201 225 -10.7

Operating 12.3% 9.8%

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margin

Devices &Services

15.4% 12.1%

NAVTEQ 24.0% 25.7%


5.5% 5.2%

EPS, EURDiluted

0.25 0.26 -3.8%

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Non-IFRS full year 2009 results

2009 2008 YoYChan

ge

Net sales 40

987 50

722 -19.2%

Devices &Services

27853

35099

-20.6%

NAVTEQ 673 363 Nokia

SiemensNetworks

12574

15319

-17.9%

Operating profit

3 503 7 033 -50.2%

Devices &

Services 3 488 6 373 -45.3%

NAVTEQ 121 82


28 757 -96.3%

Operating margin

8.5% 13.9%

Devices &Services

12.5% 18.2%

NAVTEQ 18.0% 22.6%


0.2% 4.9%

EPS, EUR

Diluted 0.66 1.34 -50.7%


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EPS, EURDiluted

0.26 0.15 73.3%

Reported full year 2009 results

2009 2008YoYChan

ge

Netsales

40984

50710

-19.2%

Devices &

Services

27

853

35

099 -20.6%NAVTEQ 670 361


12574

15309

-17.9%

Operatin

g profit1 197 4 966 -75.9%

Devices &Services

3 314 5 816 -43.0%

NAVTEQ -344 -153

NokiaSiemens

Networks

-1 639 -301

Operating margin

2.9% 9.8%

Devices &Services

11.9% 16.6%

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NAVTEQ-

51.3%-

42.4%

Nokia

SiemensNetworks

-13.0% -2.0%

EPS, EURDiluted

0.24 1.05 77.1%

Nokia GroupNokia's fourth quarter 2009 net sales decreased 5% to EUR12.0 billion, compared with EUR 12.7 billion in the fourthquarter 2008. At constant currency, group net sales wouldhave decreased 4% year on year.

The following chart sets out the year on year and sequentialgrowth rates in our net sales on a reported basis and at

constant currency for the periods indicated.

NOKIA FOURTH QUARTER 2009 NET SALESReported & Constant Currency

Q4/2009 vs.Q4/2008Change

Q4/2009 vs.Q3/2009Change

Group net sales -reported

-5% 22%

Group net sales -constant currency

-4% 20%

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Devices & Servicesnet sales - reported

0.5% 18%

Devices & Services

net sales - constantcurrency

2% 16%

Nokia SiemensNetworks net sales -reported

-16% 31%

Nokia SiemensNetworks net sales -

constant currency

-17% 28%

Change in net sales at constant currency excludes theimpact of changes in exchange rates in comparison to theEuro, our reporting currency.

Devices & Services:-In the fourth quarter 2009, thetotal mobile device volumes of Devices & Serviceswere 126.9 million units, representing an increase of12% year on year and 17% sequentially. The overallindustry mobile device volumes for the same periodwere 329 million units based on Nokia's estimate,representing an increase of 8% year on year and 14%sequentially.

NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA

(millionunits)

Q4/2009 Q4/2008YoY

Change

Q

Europe 34.3 34.7 -1.2% 27

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MiddleEast &Africa

24.3 18.2 33.5% 19

GreaterChina 17.6 12.9 36.4% 18

Asia-Pacific

34.5 29.9 15.4% 30

NorthAmerica

3.8 4.1 -7.3% 3.

LatinAmerica

12.4 13.3 -6.8% 9.

Total

126.9

113.1

12.2%

10

Based on our preliminary market estimate, Nokia's mobiledevice market share for the fourth quarter 2009 was 39%,compared with 37% in the fourth quarter 2008 and 38% inthe third quarter 2009. Our year on year market shareincrease was driven by higher market share in all regionsexcept North America, where our market share was flat. Oursequential market share increase was driven primarily by

higher market share in Asia-Pacific, Middle East & Africa,Europe and North America. Our market share wassequentially down in Greater China and Latin America.

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC A

EURmillion

Q4/2011 Q4/2010YoY

Change

Q3

Europe 1 327 1 636 -18.9% 1 0

Middle 371 615 -39.7% 38

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East &Africa

GreaterChina

425 409 3.9% 33

Asia-Pacific

818 967 -15.4% 56

NorthAmerica

244 198 23.2% 12

LatinAmerica

440 513 -14.2% 28

Total 3 625 4 338 -

16.4%

2 7

Nokia Siemens Networks reported gross profit decreased5% to EUR 1.07 billion, compared with EUR 1.13 billion inthe fourth quarter 2008, with a gross margin of 29.5%(26.1%). Nokia Siemens Networks non-IFRS gross profitdecreased 16% to EUR 1.1 billion, compared with EUR 1.3billion in the fourth quarter 2008, with a non-IFRS grossmargin of 30.6% (30.4%). The lower year on year non-IFRS

gross profit in the fourth quarter 2009 was due primarily tolower year on year net sales.

Q4 2011 OPERATING HIGHLIGHTS

Devices & Services

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Nokia introduced the Nokia 1616, Nokia 1800, Nokia 2220slide and Nokia 2690, all affordable mobile devices thatsupport Nokia Life Tools, a service through whichconsumers can access timely and relevant agricultural

information, as well as education and entertainmentservices, without requiring the use of GPRS or Internetconnectivity. During the fourth quarter, Nokia launchedNokia Life Tools in Indonesia.

Nokia commenced shipments of the Nokia X6, a powerfultouch smartphone with 32 GB of on-board memory thatcomes in combination with Comes With Music, Nokia's'all-you-can-eat' music offering.

46 languages, and traffic information for more than 10countries, as well as detailed maps for more than 180countries.

Ovi Store, Nokia's one-stop shop for applications andcontent, continued to grow, with the store now attractingmore than 1 million downloads a day.

Nokia commenced shipments of the Nokia E72, a devicedesigned especially for business use and messaging, and

featuring a full QWERTY keyboard, a 5 megapixel cameraand assisted GPS. The Nokia E72 is one of many Nokiamobile devices supporting Nokia Messaging, Nokia'semail service, which continued to gain traction. NokiaMessaging is now available to Nokia users in more than100 countries and more than 2 million users are nowregistered.

Nokia continued to expand Ovi Mail, a free email service

designed especially for users in emerging markets withInternet-enabled devices. The service can be set up andaccessed without ever needing a PC. More than 5 millionaccounts have been activated since Ovi Mail waslaunched in late 2010.

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NOKIA IN THE FOURTH QUARTER 2011

(The following discussion is of Nokia's reported results.Comparisons are given to the fourth quarter 2008 results,unless otherwise indicated.)

Nokia's net sales decreased 5% to EUR 11 988 million (EUR

12 662 million). Net sales of Devices & Services increased0.5% to EUR 8 179 million (EUR 8 141 million). Net sales ofNAVTEQ increased 10% to EUR 225 million (EUR 205million). Net sales of Nokia Siemens Networks decreased16% to EUR 3 625 million (EUR 4 338 million).

Operating profit increased 132% to EUR 1 141 million (EUR492 million), representing an operating margin of 9.5%

(3.9%). Operating profit in Devices & Services increased59% to EUR 1 219 million (EUR 766 million), representingan operating margin of 14.9% (9.4%). Operating loss inNAVTEQ was EUR 56 million (operating loss EUR 73 million),representing an operating margin of -24.9% (-35.6%).Operating profit in Nokia Siemens Networks was EUR 17

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million (operating loss EUR 179 million), representing anoperating margin of 0.5% (-4.1%). Group CommonFunctions reported expense totaled EUR 39 million (EUR 22million).

Nokia Group

For 2011, Nokia's net sales decreased 19% to EUR 41.0billion (EUR 50.7 billion in 2008). Net sales of Devices &Services for 2011 decreased 21% to EUR 27.9 billion (EUR35.1 billion). Net sales of Nokia Siemens Networksdecreased 18% to EUR 12.6 billion (EUR 15.3 billion). Netsales of NAVTEQ were EUR 670 million in 2009 (EUR 361million for the six months ended December 31, 2010).

Devices & Services

In 2010, the total mobile device volume of our Devices &Services group reached 432 million units, representing adecrease of 8% year on year. The overall industry mobiledevice volumes for 2010 reached 1.14 billion units, basedon Nokia's preliminary market estimate, representing a

decrease of 6% year on year. Based on our preliminarymarket estimate, Nokia's market share decreased to 38% in2010, compared to 39% in 2010. Of the total industrymobile device volumes, converged mobile device industryvolumes in 2010 increased to 176 million units, based onNokia's estimate, compared with an estimated 161 million

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units in 2009. Our own converged mobile device volumesincreased to 67.8 million units in 2009, compared with 60.6million units in 2008. Nokia shipped approximately 18million Nokia Nseries and approximately 18 million Nokia

Eseries devices in 2009, down from the combined 46 millionNseries and Eseries devices we shipped in 2008.

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44

NOKIA MOBILE DEVICE VOLUME BY

GEOGRAPHIC AREA(million

units)2009 2010

YoYChange

Europe 107.0 114.9-

6.9%

Middle East& Africa

77.6 81.0 -4.2%

GreaterChina

72.6 71.3 1.8%

Asia-Pacific 123.5 134.0-

7.8%

NorthAmerica

13.5 15.7-

14.0%

LatinAmerica

37.6 51.5-

27.0

%Total

431.8

468.4

-7.8%


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PERSONNEL

The average number of employees during 2009 was

123 171, of which the average number of employeesat Nokia Siemens Networks was 62 129. AtDecember 31, 2009, Nokia employed a total of 123553 people (125 829 people at December 31, 2008),of which 63 927 were employed by Nokia SiemensNetworks (60 295 people at 2010)

SHARES

The total number of Nokia shares at 2011 was3744956052. At December 31, 2009, Nokia and

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its subsidiary companies owned 36 693 564Nokia shares, representing approximately 1.0 %of the total number of Nokia shares and the

total voting rights.

DIVIDEND

Nokia's Board of Directors will propose adividend of EUR 0.40 per share for 2010.

Chapter 5

Nokias Changes ManagementIntroduction

What is the call for an organizationalchange of a company? Before the decisionreached its final, the organization must firstidentify the reasons for the organizationalchange. The organization is the brain of thebusiness, this is the place where you willfind different of people but workingtogether to reach the growth potential of

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the business. The collection of people thataiming for the success of the business andthey are the head the thinking for somepossibilities on how to make the successcome to life.

The organization is an essential part ofthe business that composes of differentcreative minds and if the ideas are

insufficient, the brainstorming steps in.Sometimes, organizational change happensfor the good ofthe business, they are onlyinviting the fresh ideas to come.

Organizational Change on Nokia Some firms have had to changedramatically to stay in business. Nokia beganlife as a lumber company, making theequipment and supplies needed to cut downforests in Finland. It moved through into paper

and from there into the paperless office worldof IT and from there into mobile telephones.1

As the world leader in mobility, Nokia isdriving the transformation and growth of theconverging Internet and communications

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industries. The company makes a wide range ofmobile devices with services and software thatenable people to experience music, navigation,

video, television, imaging, games, businessmobility and more. Developing and growing ouroffering of consumer Internet services, as wellas the enterprise solutions and software, is akey area of focus.

It seems like every year, the company

acknowledges the organizational change andreshuffling the leaders. The company plannedfurther changes in its sales and marketingactivities in the Markets unit, which is expectedto affect about 450 employees.

The Aims:

To follow-up the companysreorganization in the past year that

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target to strengthen the customerinterface, and ensuring that allresources are well allocated to meet thebusiness needs and de-layer theorganization.

To make the Nokia Research Center(NRC), which specialize long-term

research activities, sharpen its focus onfewer but stronger research areas.

The company is planning to relocatetheir activities in a moreconvenient site.

.The company also plans some smallerworkforce adjustments in global processoperations.

Organizational Change Models

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There are two possible organizational change

models that the Nokia used in establishing their

efforts that falls under the Strategic Planning model.

There is various kind of approach and two are picked-up for careful examination. The two models are

Alignment Model and Scenario Planning Model.4

Alignment Model

This kind of model ensures the strong alignment

among the organizations mission and its resourcesto effectively operate the organization. This model is

useful for organizations that need to fine-tune

strategies or find out why they are not working. An

organization might also choose this model if it is

experiencing a large number of issues around

internal efficiencies. Overall steps include:

The planning group outlines the organizations

mission, programs, resources, and needed support.

Identify whats working well and what needs

adjustment.

Identify how these adjustments should be made.

Include the adjustments as strategies in the

strategic plan

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Scenario Planning

This approach might be used in conjunction withother models to ensure planners truly undertake

strategic thinking. The model may be useful,

particularly in identifying strategic issues and goals.

1. Comes with the selection of several externalforces and imagining the related changes which

might influence the organization.

2. For each change in a force, discuss threedifferent future organizational scenarios whichmight arise with the organization as a result ofeach change. Reviewing the worst-casescenario often provokes strong motivation to

change the organization.

3. Suggestions are formulated what theorganization might do, or potential strategies,in each of the three scenarios to respond toeach change.

4. Planners soon detect common considerationsor strategies that must be addressed torespond to possible external changes.

5. The selection of the most likely externalchanges to effect the organization, and

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identifying the most reasonable strategies theorganization can undertake to respond to thechange.

Stakeholders

Stakeholders are any constituencies in the

organizations external environment that are

affected by the organizations decisions and actions.

These groups have a stake in or are significantlyinfluenced by what the organization does. One

reason is that it can lead to other organizational

outcomes such as improved predictability of

environmental changes, more successful innovations,

greater degrees of trust among stakeholders, and

greater organizational flexibility to reduce the impactof change.

Profit Down, Nokia Change Management

After experiencing a profit down in the third quarter 2009,the giant mobile phone company began to take strategicsteps to overhaul its management ranks. Nokia separatebusiness entities, namely mobile phone division and thedivision smartphone.Chief Financial Officer (CFO) Motorola, Rick Simonson aschief of the division is positioned mobile Phone. Bothdivisions will begin running in early November.Rick's position as CFO, will be replaced by the Global Head

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of Sales Siemens, Timo Ihamuotila.

"After five years of success as CFO, Rick's time tomove to a more strategic position. Rick Simonson

has an intimate knowledge of business and finance,and this is a precious value for Siemens business,"said Nokia CEO, Olli-Pekka Kallasvuo.Rick Simonson joined with Nokia since 2001 andoccupies the position of CFO since 2004. At its newvenue, as head of the Mobile Phones division, Rickwill be fully responsible for the sustainability ofproducts outside the smart phone

Earlier, Nokia reported a decline in profits that theyproduce in the third quarter of 2009. Nokia profit fallsto 391 million pounds, equivalent to Rp5, 96 trillion(Rp15.243 per pound) compared to the same quarterlast year, which reached 1.3 billion pounds. Even thesales growth of Nokia fell 20 percent year on year to9 billion pounds.

This report has been commissioned by topmanagement at Nokia to produce an implement planconcentrating on people's aspects of implementationof the new environmental initiative of reducing itscarbon footprint by introducing a company widecentralized management information system andpolicy focused at reduction in paper and printing

usage. Therefore the specific objectives of thisreport can be highlighted as to understand thedynamics of environmental initiative for theorganization, to analyze the impact of this initiativeon the attitude and behaviour of employees, and torecommend an implementation plan focused at

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stakeholders goals and interests. Theeffect of organizational change in the

view of the stakeholders isinconceivably high. The possibilities ofthe success and loss plays in the middleof the company, not until everyproposed projects was deployed. Nomatter how many times a company

imposed organizational change; thesuccess for the new plan will be uselessif the appointees were not cooperating

Conclusion

As Nokia is the leading manufacturer of mobile

phones whole over the world, its new strategy of

diversification in Nokia Mobile Network will be at

great success, also customers are loyal to Nokia and

Nokia has positioned itself properly in the minds of

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all the customers. It will be easier for Nokia to attract

its existing customers. Besides this Nokia with its

latest technology and strong networks is laying morestress on rural areas where till now no network has

satisfied rural people.

Nokia maintains distinctive advantage over theircurrent and future competition without patentprotection

But on the other Hand the products from theFinnish company, Nokia, are some of the very best inthe world, but the company still hasnt found aprofitable way to market its goods. The very reasonthat other mobile phone companies are fast eatingup Nokias market share is their superior (yet simple)marketing practices.

Motorola and Samsung must now be in the FUW(frequently used words) list in Nokias boardmeetings. These companies have made Nokia paydearly for its undeveloped approach in marketing itsphones. The aggressive marketing practices followedby Motorola have hit Nokia very hard and it is losingvery crucial global market share every month to itsAmerican competitor.

Hence if Nokia doesnt take much care of thismatter he will face tough time in the Future.

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Suggestion For improvement

Nokia Should Encourage Diagonal Alliance.

Nokia need to break out of Cities to Rural

areas.

Focus on youth i.e. imaging and games.

Nokia need to reframe its Strategy for USmarket.

It needs to create affordable alternative of

Black Berry.

Nokia should reduce its prices According to its

Competitors.

Nokia should enhance its voice and sound

Quality.

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It should reduce heavy wait of cell phones.

Also concentrate on the size of cell phones.

Nokia must analyze its cell phones style and

designs.

CHANGE MANAGEMENT ON NOKIA

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