TABLE OF CONTENTS

NO TOPIC CONTENTS 1.0 INTRODUCTION: BACKGROUND OF NOKIA CORPORATION 2.0 PORTER FIVE FORCE ANALYSIS SWOT ANALYSIS OF NOKIA EVALUATION OF NOKIA S STRATEGIC STRENGTHS AND WEAKNESS 3.0 CONCLUSION : RECOMMENDATION TO NOKIA 4.0 5.0 REFERENCE COURSEWORK 12 13-18 11 4-10 PAGE 1 2-3

1.0 Introduction
Background of Nokia Corporation
The background of Nokia Corporation started in1865, there was an engineer named Fredrik Idestam who established a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. The company's sales acheived its high-stakes and Nokia grew faster and faster when there was a strong demand for paper in the industry. Russia imported paper from the Nokia company and then Nokia company also exported the paper to United Kngdom and France. The Nokia factory employed a large workforce and a small community grew around it.A small society called Nokia still exists on the riverbank of Emaskoski in southern Finland. The manufacturer of a rubber goods named Finnish Rubber Works impressed the hydroelectricity that conducted by the Nokia wood pulp. Then merged up and started selling the products under the companys name called Nokia.

It acquired a major part of the Finnish Cable Works shares after World War II. The Finnish Cable Works had grown swiftly due to the expanding need for power transmission and telegraph and telephone networks in the World War II. In 1967, the Nokia group had formed in 1967. The Electronics Department generated 3 % of the Group's net sales and provided work for 460 people in the same year.

In the beginning of 1970, the telephone exchanges consisted of electromechanical analog switches. Soon Nokia successfully developed the digital switch. The Nokia DX 200 was embedded with high-level computer language as well as Intel microprocessors for Nokia's network infrastructure.

After that, Nokia became a large television manufacturer and also the largest information technology company in the Nordic countries. The Nokia was committed to telecommunications during the economic recessions. The 2100 series of the production was so successful that inspite of its goal to sell 500,000 units, it marvellously sold 20 million. Presently, Nokia is the number 1 production in digital technologies, it invests 8.5% of net sales in research and development.

2.0 Body
2.1Porter Five Force Analysis
Rivalry Among Existing Competitors During 2010 Nokia went from 36.6% of the mobile phone market to27.1%. In the fourth quarter of 2010 Nokias Symbian OS was replaced by Android as the most widespread platform. The top three competitors to Symbian are beginning totake a serious bite of Nokias smartphone market share. Nokia took a big hit to its market dominance to due increased competition from Android and Apple sales.The largest piece of the mobile device market is possess by Nokia corporation. Although the largest piece of the mobile device market is possess by it, RIMs Blackberry, Apples iPhone and a pile of smartphones that running Googles Android has strongly challenges Nokia corporation. Nokias Symbian operating system is showing its age compared to these newer smartphone offerings. Threat of Substitute Service There was significant growth in 2010 although the mobile device market saw declines in 2009. The threat to the mobile device industry is low as a communication device is a growing choice of phone users across the world. The equates to a market value of almost $97 billion It is anticipated that the largest market segment, AsiaPacific, will see a volume growth of 98.7% by 2014 compared to 2009. Power of suppliers: The Nokia companys current suppliers attempt to bargain for more money with them. It is because Nokia are in the position where they can bargain and negotiate with any mobile phone hardware maker because there is a high number of equipment suppliers that are readily available to Nokia.
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As the leading mobile phone company in the industry, the Nokia company are in a very strong position when bargaining with their suppliers. The software suppliers for their Smartphones are now Microsoft, who will have a very high bargaining power. Although Nokia rely on its suppliers to supply equipment for their advanced mobile phones there are actually a number of large equipment makers, which Nokia could switch to. Microsoft will have a lot of power when negotiating a price and share because the deal is more beneficial to Nokia than Microsoft. Nokia company is a global organization that has the highest market share or the lions share in the industry as their main argument that would be the fact. For this, the suppliers would not want to lose such a splendid organisation. Besides, Nokia have recently created an alliance with Microsoft for their software which would be considered a major coup for Nokia more than Microsoft. Microsofts power over the software is very high because theyre very few other organisations who have the expertise and skills to rival Microsoft. There is a moderate threat from the powers of suppliers because although the hardware suppliers have a very low power. Powers of buyers: The increasing number of choices in the mobie telecommunication industry causes the power of customers is rising. There are various types of competitors of Nokia that offering similar packages, the industry is very price sensitive with customers seeking out the best value for money. A large number of the consumers will also be tied into long term contracts so switching from one handset to another will be difficult and expensive for the consumer, as a result they may not want to change until the contract is finished.

The mobile phone industry is a competitive market where the number of choices is very wide, resulting in the consumer having a lot of power because they can choose to go to one of Nokias many rivals if they feel Nokia are not good enough. As a result this has created a very price sensitive market because consumers will always be on the lookout for the best deals. As Nokia do not have a direct store to sell to their consumers, intermediaries such as Carphone warehouse or network stores such as Orange also have other handsets readily available for the consumers, which makes it difficult for Nokia to have a direct impact on the selling of their handsets.The mobile phone industry is a competitive market where the number of choices is very wide, resulting in the consumer having a lot of power because they can choose to go to one of Nokias many rivals if they feel Nokia are not good enough. As a result this has created a very price sensitive market because consumers will always be on the lookout for the best deals. So, the conclusion is the buyers have a high amount of power because of the other handsets they can purchase instead of Nokia.

Threat of new entrants: Nokia currently hold a 29% of the entire mobile phone market worldwide and for a new competitor to obtain some of their market will take either a very long term plan or something that is truly innovative and unseen before. This is because realistically the new entrant will need very high investment for R&D and marketing, and would not be able to publish positive result for a long time as they try to build a customer base and a name for itself in an established market. There are 3 major things about threat of new entrants. First, the barriers to entry in the mobile phone industry is high because any new entrants will need high
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investments in R&D, technology and marketing in order to compete with the established organisations. Second, the new entrants want to take market share from the larger organisations but Nokia hold 29% of the market share in the industry, the highest market share in the industry. Third, the mobile phone industry is already a well established market and the threat of a new entrant is quite low, as the technology needed to rival the devices already available is quite advance if they want to differentiate from them. The threat of new entrants into the mobile phone industry is very unlikely as the start up cost of entering into the market at a high level needs a lot of investments and time to be considered a respectable competitor of the already established organisations. The conclusion of the threats of new entrants is very low and not a factor which Nokia will have to worry about in the near future.

2.2 SWOT Analysis of Nokia

The SWOT of Nokia which means of strength of Nokia, weaknesses of Nokia, opportunity of Nokia, threat of Nokia.

Strengths
Recently, Nokia corporation has the largest network of distribution and selling as compared to other mobile phone company in the industry of mobile in the world. The financial aspect is very strong in case of Nokia as it has many more profitable business. It is backed with the high quality and professional team in the HRD Dept. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other companys product. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world.

Weaknesses
Nokia has Some of the weakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Besides that, for now there are various types of competitor just like Apple, HTC, RIM Blackberry have the intense competition with Nokia corporation in this industry.

Opportunity
With the opportunity like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around.

Threats
In this intense competitive mobile industry, Nokia has many threats to tackle to maintain its position as market leader in the world. The companies like Motorola, Sony Eriksson, Cingular (U.S)etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. The threats like emerging of other mobile companies in the market. The threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. It is because there are too many types of competitor that compete with Nokia corporation. Nokia has to make strategies to tackle problems in the present and the near future swiftly. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.

2.3 Evaluation of Nokia s strategic strengths and weaknesses

The financial aspect is very strong in case of Nokia as it has many more profitable business. So, Nokia corporation has the largest network of distribution and selling as compared to other mobile phone company in the industry of mobile in the world. It is backed with the high quality and professional team in the HRD Dept. The re-sell value of Nokia phones are high compared to other companys product. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world.

By the way, recently there are various types of competitor just like Apple, HTC, RIM Blackberry have the intense competition with Nokia corporation in this industry. Nokia has some of the weakness includes the price of the product offered by the company. It is just not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. Besides, the service in these countries are not so good compared to the other countries.

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3.0 Recommendation to Nokia

In conclusion, Nokia can expend its market share by introducing brand in new market and by catering new target market as well. With these opportunities like Telecom penetration in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Nokia has ample of opportunity to expand its business. Besides, telecommunication market is growing rapidly and more people are being interested towards the industry so it is great opportunity for Nokia to expand market share and to grow as well. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around. It can also capture more market share and attract more customers in existing market by changing price and introducing new product range and also by innovating product features of existing products. Communication it can strong its reputation and increase its sales and also create good brand image among the people through excessive advertisement and effective market Nokia itself becoming the item of everyday convenience the day is not so far that it will become the item of every day use.

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4.0 Reference 1. http://www.connectmobiles.com 2. www.wikipedia.com 3. www.scribd.com

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5.0 Coursework
1) The effect of climate change on industries and companies throughout the world can be grouped into six categories of risks.Explain carefully.

Porter and Reinhardt warn that "in addition to understanding its emissions costs, every firm needs to evaluate its vulnerability to climate-related effects such as regional shifts in the availability of energy and water, the reliability of infrastructures and supply chains, and the prevalence of infectious diseases." Swiss Re, the world's second-largest reinsurer, estimated that the overall economic costs of climate catastrophes related to climate change threaten to double to $150 billion per year by 2014. The insurance industry's share of this loss would be $30-$40 billion annually. The effects of climate change on industries and companies throughout the world can be grouped into six categories of risks: regulatory, supply chain, product and technology, litigation, reputational, and physical.
1.

Regulatory Risk: Companies in much of the world are already subject to the

Kyoto Protocol, which requires the developed countries (and thus the companies operating within them) to reduce carbon dioxide and other greenhouse gases by an average of 6% from 1990 levels by 2012. The European Union has an emissions trading program that allows companies that emit greenhouse gases beyond a certain point to buy additional allowances from other companies whose emissions are lower than that allowed. Companies can also earn credits toward their emissions by investing in emissions abatement projects outside their own firms. Although the United States withdrew from the Kyoto Protocol, various regional, state, and local government policies affect company activities in the

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U.S. For example, seven Northeastern states, six Western states, and four Canadian provinces have adopted proposals to cap carbon emissions and establish carbon-trading programs.

2. Supply Chain Risk: Suppliers will be increasingly vulnerable to government regulations- leading to higher component and energy costs as they pass along increasing carbon-related costs to their customers. Global supply chains will be at risk from an increasing intensity of major storms and flooding. Higher sea levels resulting from the melting of polar ice will create problems for seaports. China, where much of the world's manufacturing is currently being outsourced, is becoming concerned with environmental degradation. In 2006, 12Chinese ministries produced a report on global warming foreseeing a 5%-10% reduction in agricultural output by 2030; more droughts, floods, typhoons, and sandstorms; and a 40% increase in population threatened by plague. The increasing scarcity of fossil-based fuel is already boosting transportation costs significantly. For example, Tesla Motors, the maker of an electric-powered sports car, transferred assembly of battery packs from Thailand to California because Thailand's low wages were more than offset by the costs of shipping thousand-pound battery packs across the Pacific Ocean. Although the world production of oil had leveled off at 85 million barrels a day by 2008, the International Energy Agency predicted global demand to increase to 116 million barrels by 2030. Given that output from existing fields was falling 8% annually, oil companies must develop up to seven million barrels a day in additional capacity to meet projected demand. Nevertheless, James Mulva, CEO of

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ConocoPhilips, estimated in late 2007 that the output of oil will realistically stall at around 100 million barrels a day.

3.Product and Technology Risk: Environmental sustainability can be a prerequisite to profitable growth. For example, worldwide investments in sustainable energy (including wind, solar, and water power) more than doubled to $70.9 billion from 2004 to 2006. Sixty percent of U.S. respondents to an Environics study stated that knowing a company is mindful of its impact on the environment and society makes them more likely to buy their products and services.35 Carbon-friendly products using new technologies are becoming increasingly popular with consumers. Those automobile companies, for example, that were quick to introduce hybrid or alternative energy cars gained a competitive advantage. 4. Litigation Risk: Companies that generate significant carbon emissions face the threat of lawsuits similar to those in the tobacco, pharmaceutical, and building supplies (e.g., asbestos) industries. For example, oil and gas companies were sued for greenhouse gas emissions in the federal district court of Mississippi, based on the assertion that these companies contributed to the severity of Hurricane Katrina. As of October 2006, at least 16 cases were pending in federal or state courts in the U.S. "This boomlet in global warming litigation represents frustration with the White House's and Congress' failure to come to grips with the issue," explained John Echeverria, executive director of Georgetown University's Environmental Law & Policy Institute.

5.Reputational Risk: A company's impact on the environment can heavily affect its overall reputation. The Carbon Trust, a consulting group, found that in some sectors

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the value of a company's brand could be at risk because of negative perceptions related to climate change. In contrast, a company with a good record of environmental sustainability may create a competitive advantage in terms of attracting and keeping loyal consumers, employees, and investors. For example, WalMart's pursuit of environmental sustainability as a core business strategy has helped soften its negative reputation as a low-wage, low-benefit employer. By setting objectives for its retail stores of reducing greenhouse gases by 20%, reducing solid waste by 25%, increasing truck fleet efficiency by 25%, and using 100% renewable energy, it is also forcing its suppliers to become more environmentally sustainable.37 Tools have recently been developed to measure sustainability on a variety of factors. For example, the SAM (Sustainable Asset Management) Group of Zurich, Switzerland, has been assessing and documenting the sustainability performance of over 1,000.corporations annually since 1999. SAM lists the top 15% of firms in its Sustainability Yearbook and classifies them into gold, silver, and bronze categories, Business Week published its first list of the world's 100 most sustainable corporations January 29, 2007. The Dow Jones Sustainability Indexes and the KLD Broad Market Social Index, which evaluate companies on a range of environmental, social, and governance criteria, are used for investment decisions. Financial services firms, such as Goldman Sachs, Bank of America, JPMorgan Chase, and Citigroup have adopted guidelines for lending and asset management aimed at promoting clean-energy alternatives.

6. Physical Risk: The direct risk posed by climate change includes the physical effects of droughts, floods, storms, and rising sea levels. Average Arctic temperatures have risen four to five degrees Fahrenheit (two to three degrees Celsius) in the past 50 years, leading to melting glaciers and sea levels rising one inch per decade.41
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Industries most likely to be affected are insurance, agriculture, fishing, forestry, real estate, and tourism. Physical risk can also affect other industries, such as oil and gas, through higher insurance premiums paid on facilities in vulnerable areas. Coca-Cola, for example, studies the linkages between climate change and water availability in terms of how this will affect the location of its new bottling plants. The warming of the Tibetan plateau has led to a thawing of the permafrostthereby threatening the newly-completed railway line between China and Tibet. (See the Environmental Sustainability Issue feature for a more complete list of projected effects of climate change.)

2)Please describe four responsibilities of business.

Carroll's Four Responsibilities of Business Friedman's contention that the primary goal of business is profit maximization is only one side of an ongoing debate regarding corporate social responsibility (CSR). According to William J. Byron, Distinguished Professor of Ethics at Georgetown University and past- President of Catholic University of America, profits are merely a means to an end, not an end in itself. Just as a person needs food to survive and grow, so does a business corporation need profits to survive and grow. '-'Maximizing profits is-like maximizing food." Thus, contends Byron, maximization of profits cannot be the primary obligation of business.

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As shown, in Figure 3-1, Archie Carroll proposes that the managers of business organizations have four responsibilities: economic, legal, ethical, and discretionary.
1.

Economic responsibilities of a business organization's management are to produce goods and services of value to society so that the firm may repay its creditors and shareholders.

2.

Legal responsibilities are defined by governments in laws that management is expected to obey. For example, U.S. business firms are required to hire and promote people based on their credentials rather than to discriminate on non-job-related characteristics such as race, gender, or religion.

3.

Ethical responsibilities of an organization's management are to follow the generally held beliefs about behavior in a society. For example, society generally expects firms to work with the employees and the community in planning for layoffs, even though no law may require this. The affected people can get very upset if an organization's management fails to act according to generally prevailing-ethical values.

4.

Discretionary responsibilities are the purely voluntary obligations a corporation assumes. Examples are philanthropic contributions, training the hard-core unemployed, and providing day-care centers. The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill discretionary responsibilities, whereas many expect an organization to fulfill ethic al ones.

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