A PROJECT REPORT ON STRATEGIC MANAGEMENT OF NOKIA

IN THE SUBJECT STRATEGIC MANAGEMENT SUBMITTED TO UNIVERSITY OF MUMBAI FOR SEMESTER II OF M.COM.

BY

JIGAR MAHESH RAVAL ROLL NO. 152

UNDER THE GUIDANCE OF Prof. SANDHYA PARASHAR

YEAR 2012 2013

ACKNOWLEDGEMENT
I wish express my sincere acknowledgement to our principal Dr. M. R. Nair and all other who were directly or indirectly associated with the project. In the completion for this project, support and help of many is acknowledged. I would like to express my sincere appreciation to Prof. Sandhya Parashar for her guidance, patience, kindness and wisdom with this research project, as well as all other important aspect of this project. Additional acknowledgements go to the Librarian for providing me with all the required reference books for the project. Lastly, I would like to express my sincerest appreciation towards my parents, and all of my extended friends for their everlasting support and encouragement.

DECLARATION

I, JIGAR MAHESH RAVAL Student of MCom. Part-I Management, Roll. No 152,hereby declare that the project for the paper Strategic Management, Strategic Management Of Nokia submitted by me to University of Mumbai, Semester II examination during the academic year 2012-2013, is based on actual work carried by me under the guidance and supervision of Prof . Sandhya Parashar I further state that this work is original and not submitted anywhere else for any examination.

JIGAR MAHESH RAVAL.

CERTIFICATE
This is to certify that the project entitled ________________________________________________________________ _________________________________________________________________ ____________________________Submitted by Mr./Ms._______________________________________________ Roll No. ________ student of M.Com. (Part-I) Accountancy / Management / Banking & Finance (University of Mumbai) Semester I examination has not been submitted for any other examination and does not form a part of any other course undergone by the candidate. It is further certified that he / she has completed all required phases of the project. This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner

External Examiner

Co-ordinator

Principal

College seal

EXECUTIVE SUMMARY
Nokia N8 is new device of cell phone which has lots of functions and latest updates. Nokia has increasing market trend and the overall market share of Nokia is around 50% based on the survey information of 2009. Nokias great slogan is Connecting with people that connect people wherever they are. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products. AT the very beginning of time and recently Nokia held a Convention which is in Singapore. In that convention Nokia renewed and rectified its commitment and promises of determination to serve and deliver the great deal of experiences to their customers with its new and latest range of products and promotions. Nokia convention has been held basically to renew its commitment and given promises to its loyal customer. At that event of convention, two new devices were announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in addition with this showcase of Nokia the gorgeous and high designed Nokia N8 was revealed for the first time in the market of cell phone basically for the region of its customer to the media and the analysts. N8 is high quality smart phone in the cell phone market. The aim of Nokia is to satisfy a broad and wide range of customers over the world. Nokia is becoming and continuing its growing up of market and it is to bring an affordable and easy access to the communication of mobile. There are hundreds of millions of people in the world using the Nokia as primary phone. Nokia is bringing smart phone in the market and its functionality and varieties to the mass customer market easily and quickly and it is more and more affordably. Among all smart phones Nokia N8 is one of the first smart phone which is a device for the people want to create and enjoy the contents of N series that are really amazing. Nokia N8 has TV programmers and Ovi Store apps. Nokia N8 has great stores of music player which has great entrance to the thousands of songs.

Table of Contents 1.1 Introduction: 1.2 Objective of the Assignment: 1.3 Scope of the Study: 1.4 Methodology: 2.1 Strategic Change: 2.2 Business Transformation 2.3 Considerations in Business Transformation: 2.4 Convention of Nokia in Singapore: 2.5 Nokias change of connecting people: 2.6 Principles of Nokias change management: 2.7 Renewal of Nokias Commitment: 3.1 Successful change Strategy of Nokia: 3.2 Assessment of Competitive Environment: 3.3 Considerations in Assessing Competitive Environment: 3.4 Process of Competitive Strategy and Method of Assessment: 3.5 Strategic Transformation of Nokia:

3.6

Key Elements of Nokias Business Transformation:

Evaluation of Nokias Transformational Change: 4.1 Value Chain Process of Nokia: 4.2 Porter's Value Chain: 4.3 Competitive Advantages: 4.4 Nokias Competitive Advantages: 4.5 Factors of Competitive Advantages: 4.6 Corporate Strategies of Nokia: 4.7 Comparison of Corporate Strategies with Apple:

5.1 Joint Venture:

5.2 Failure Strategies of Nokia: 5.3 Consolidation and Recovery Strategy: 5.5 Suggested Strategy for Nokia: 6.1 Conclusion:

Introduction:
The world is becoming more competitive and high competition makes the world to be globalized and so todays business world has become more improved and developed. And thus now the world business market is very and tremendously competitive. The organization has to follow some rules that should help the company to reach its destination. At the very beginning of business and creation of company existence there are certain goals and objectives have to set. The target makes the organization to reach its destination and to reach that organizations targets company management is very important thing which must need to be proper and accurate. Nokia as a company, its a growing company which is in at maturity position of its life cycle. The global market of Nokia is very high demanded and rich. Approximately 50% market share are under control of Nokia Company. Nokias great slogan is Connecting with people that connect people wherever they are. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products.

Objective of the Assignment:

The basic objective and general focus of the assignment is to get and to identify the major important factors which can be ensured by the best customer serving by delivering best and by satisfying their needs in the mobile phone sector. The assignment has been done by analyzing the company of cell phone industry and basically Nokia.

Scope of the Study:

The scope of study is very important factor of the rules of guidance and path of success. The scope of this assignment is basically limited to its function and to the overall brief description of the Nokia Company, its products, products ranges and customer services, and its position of ranking in the cell phone industry. The scope of the assignment is so limited to the management plan and management team, and lastly the organizational setup of the company.

Methodology:
The methodology is most important consideration in case of preparing the report. So, to prepare the assignment on strategic management of Nokia is crucial. The analysis method has been done without statistical presentation but the description and interpretation of current data has been shown by step by step. In that case, the methodology of the analysis can be described as descriptive research.

Strategic Change:
Strategic change is the need for the organizations further development and progressive pathway of organizations success. A strategy basically the strategic plan for the company is a long term plan of business and long term way to achieve and attain some specific goals or objectives and to reach the target of the business. The success of the company is totally depending on the strategy of management and managerial decision of the company. The short term strategy is really important for gaining the long term strategy of company. Strategies are based on the company objectives and generally focus on the near future of company to bring the change of organization and to cope up with the success of corporation.

Business Transformation
Now a days transformation of business is becoming a more important to look at. Business transformation starts from the change of organization objectives and cause of manage change to organization. Business change and its transformation can be considered as a compliment of change management and strategy for managerial change in the company that can aim to business change of aligning People, operations, operational activities and business process and technological change of the company. The organization has to follow some rules that should help the company to reach its destination. At the very beginning of business and creation of company existence there are certain goals and objectives have to set. The target makes the organization to reach its destination and to reach that organizations targets company management is very important thing which must need to be proper and accurate. So, business transformation has an influential impact on industry life cycle as well.

Considerations in Business Transformation: Planning

One of important key of aspect to management of the company and to the managerial role is known as planning. Planning is more or less necessary consideration of implementation of attaining organizations goals. The planning procedures depend on the organizations resource and resource material that shows the inner strength of corporation. Setting Goals To implement the plan and planning of organization goals setting and targeting the profit making stream is very important. Without proper path way and definite goals a company cannot reach to its destination. So, change management has everything to plan the right way of long term blueprint of enterprise and its depend on the procedures of organizations goals setting.

Convention of Nokia in Singapore:

At that event of convention, two new devices were announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in addition with this showcase of Nokia the gorgeous and high designed Nokia N8 was revealed for the first time in the market of cell phone basically for the region of its customer to the media and the analysts. N8 is high quality smart phone in the cell phone market. The aim of Nokia is to satisfy a broad and wide range of customers over the world. Nokia is becoming and continuing its growing up of market and it is to bring an affordable and easy access to the communication of mobile. There are hundreds of millions of people in the world using the Nokia as primary phone. Nokia is bringing smart phone in the market and its functionality and varieties to the mass customer market easily and quickly and it is more and more affordably.

Nokias change of connecting people:

Nokias great slogan is Connecting with people that connect people wherever they are. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products. Nokia has to follow some rules that should help the company to reach its destination. At the very beginning of business and creation of company existence there are certain goals and objectives have to set. The target makes the organization to reach its destination and to reach that organizations targets company management is very important thing which must need to be proper and accurate. AT the very beginning of time and recently Nokia held a Convention which is in Singapore. In that convention Nokia renewed and rectified its commitment and promises of determination to serve and deliver the great deal of experiences to their customers with its new and latest range of products and promotions. Nokia convention has been held basically to renew its commitment and given promises to its loyal customer.

Principles of Nokias change management:

1. Change management takes place generally in organizations movement of current operations and management change requires for business transformation from current position of enterprise. 2. Change management requires understanding of business and knowing the perspectives better from different point of view. 3. To bring a change in the organization targeting the new goals is necessarily needed and setting of rules and procedures to follow the rules should be clearly identified.

Renewal of Nokias Commitment:

Nokia is bringing smart phone in the market and its functionality and varieties to the mass customer market easily and quickly and it is more and more affordably. Among all smart phones Nokia N8 is one of the first smart phone which is a device for the people want to create and enjoy the contents of N series that are really amazing. Nokia N8 has TV programmers and Ovi Store apps. Nokia N8 has great stores of music player which has great entrance to the thousands of songs and movies and has an IMS which is also known as integrated messaging service for the business connectivity and social networking advantage. Nokia N8 is new device of cell phone which has lots of functions and latest updates. Nokia has increasing market trend and the overall market share of Nokia is around 50% based on the survey information of 2009. At that event of convention, two new devices were announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in addition with this showcase of Nokia the gorgeous and high designed Nokia N8 was revealed for the first time in the market of cell phone basically for the region of its customer to the media and the analysts.

Successful change Strategy of Nokia:

To bring the success in organizations change and change of management there are some important considerations need to follow. 1. Increase of company urgency that indicates an increase of company urgency needs to inspire of people and inspiration to move forward and to make goals realistic, accurate and relevant to company mission.

2. Building of the guiding forums that manage team: Building of the guiding forums that manage team is necessary to get the accurate and right people those who are really accepted by human resource manager, the right people should incorporate in place with necessary right and relevant commitments to organization.

3. Getting of the right and accurate company vision: Getting of the right and accurate company vision is necessary to get the perfect team to implement and to get the reach of destination to a simple organizational vision that focus on strategy and strategically change of management for service excellence and management efficiency.

4. Communication of buying: Communication of buying basically involve many people according to the as many it is possible. Communication of buying also includes communication of the requirements and people's needs or wants.

5. Empowerment of action: Empowerment of action includes removal of obstacles, enabling of constructive and right way of accurate feedback and lots of justified supports are needed from leaders

6. Short term success for long term goals: Short term success for long term goals includes setting of aim which is perfect and easy to take and attain.

7. Making of management change strictly: Making of management change strictly includes reinforcing of the value adding of path way and an implemented successful

organizational change by effective recruitment policy, promotional activities, and changing of management.

Assessment of Competitive Environment:

One of important key of aspect to management of the company Nokia is assessing competitive environment. And to the managerial role is known as environment analysis. Environment analysis is more or less necessary consideration of implementation of attaining organizations goals. The planning procedures depend on the organizations resource and resource material that shows the inner strength of corporation. To implement the plan and planning of organization goals setting and targeting the profit making stream is very important. Without proper path way and definite goals a company cannot reach to its destination. So, change management has everything to plan the right way of long term blueprint of enterprise and its depend on the procedures of organizations goals setting. As part of assessing competitive environment Nokia renewed and rectified its commitment and promises of determination to serve and deliver the great deal of experiences to their customers with its new and latest range of products and promotions. Nokia convention has been held basically to renew its commitment and given promises to its loyal customer.

Considerations in Assessing Competitive Environment:

Political Analysis

Political instability Risk of invasion to military Favorable trading partner Laws of anti trust Pricing strategies and regulation Taxation and increase of tax rates and incentive

Economic Analysis

Different types of economic systems and ways in operating countries. Government intervention in the economic market and in the free market Comparatives advantage of hosting country Efficiencies in financial market Unemployment rates and increase of literacy rate Inflation and increase of rate Increase of interest rate Social Analysis

Demographic of customer Class and wealth structure Education and literacy rate Culture and customs Spirit of entrepreneurial ship Technological Analysis

Technological impact on products offering Impact on organization cost structure Impacts on value chain structures Rates of technological diffusions

Process of Competitive Strategy and Method of Assessment:

Process of Competitive Strategy and Method of Assessment depends on business development and business development driven change that requires effective management policy and business change of management hierarchy. The activities of department also change with the change of business development.

Sales growth of the company and its development Innovation of new product and development of business Market segmentation and development of new market Development of business by developing the organization, organizational rules and regulations, organizational structure change and processes development of company.

Change of people of company, change of management process and increasing the communications within the organization through better training program.

Change of strategy and strategic partnership agreement and channels of distribution and supply chain management.

Company internal development Change of disposals and acquisitions.

Strategic Transformation of Nokia:

Strategic transformation of Nokia brings the company more affluent in grasping market share of cell phone. The target makes the organization to reach its destination and to reach that organizations targets company management is very important thing which must need to be proper and accurate. Nokia N8 is new device of cell phone which has lots of functions and latest updates. Nokia has increasing market trend and the overall market share of Nokia is around 50% based on the survey information of 2009. Nokias great slogan is Connecting with people that connect people wherever they are. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Business change and its transformation can be considered as a compliment of change management and strategy for managerial change in the company that can aim to business change of aligning People, operations, operational activities

and business process and technological change of the company. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products. So, business transformation has an influential impact on industry life cycle as well. In modern world Nokias business transformation of business is becoming a more important to look at. Business transformation starts from the change of organization objectives and cause of manage change to organization. The organization has to follow some rules that should help the company to reach its destination. At the very beginning of business and creation of company existence there are certain goals and objectives have to set.

Key Elements of Nokias Business Transformation:

The key elements of Nokias business transformation include some important considerations that lead the company to help in managerial change and business development.

Planning of long term achievement. Better strategic visions Specified and detail plan Focusing on detailed plan to establish and measure the delivery of timely action. Establishing of the forum in the business enterprise. Empowerment of the people for making important decisions in business level Establishment of a successful and good practice of culture and company ethics. Active team empowerment and team working. Using of workshop to get better training. Adjustment in recruitment policy.

Evaluation of Nokias Transformational Change:

In the evaluation of Nokias Transformational Change includes Nokias change management that takes place generally in organizations movement of current operations and management change requires for business transformation from current position of enterprise and Nokias change management that requires understanding of business and knowing the perspectives better from different point of view. Nokia as a company, its a growing company which is in at maturity position of its life cycle. The competition among the cell phone industry is becoming more competitive and high competition makes the world to be globalized and so todays business world has become more improved and developed. The target makes the organization to reach its destination and to reach that organizations targets company management is very important thing which must need to be proper and accurate. And thus now the world business market is very and tremendously competitive. The organization has to follow some rules that should help the company to reach its destination. At the very beginning of business and creation of company existence there are certain goals and objectives have to set. So to bring an overall change in the organization targeting the new goals is necessarily needed and setting of rules and procedures to follow the rules should be clearly identified. At a project level, six key considerations are: Focusing on benefits Resourcing and outsourcing Expanding, developing and learning Sustainability of business Skilled workforce Production process

Value Chain Process of Nokia:

Value chain of Nokia includes two types activities and these are primary activities and the supportive activities. In the primary activities the considerable ingredient are inbound logistics, operations, the logistics of outbound, the sales promotion and marketing process with proper plan and the last thing to consider is services. Nokia N8 has TV programmers and Ovi Store apps. Nokia N8 has great stores of music player which has great entrance to the thousands of songs and movies and has an IMS which is also known as integrated messaging service for the business connectivity and social networking advantage. Nokia N8 is new device of cell phone which has lots of functions and latest updates. Nokia is bringing smart phone in the market and its functionality and varieties to the mass customer market easily and quickly and it is more and more affordably. Among all smart phones Nokia N8 is one of the first smart phone which is a device for the people want to create and enjoy the contents of N series that are really amazing. The value chain of Nokia deals with the creation of value with better services to its loyal customers.

Porter's Value Chain:

According to Porter, the value chain includes some particular things and these are categorized into different parts, according to porter the primary activities are:

Primary Activities: 1. Inbound Logistic. 2. Business operation. 3. Outbound Logistic. 4. Marketing and Sales of promotional activities 5. Services

Secondary activities: 1. Procurement of raw materials 2. Human Resource management process 3. Technological Development and 4. Infrastructure of organization

Competitive Advantages:
Competitive Advantages includes Competitive strategies, Differentiation strategy, Cost management Leadership, Differentiation on Focus, Cost on Focus. These all are crucially important in case of gaining competitive advantages.

Nokias Competitive Advantages:

Nokia has great competitive advantage in the market because of its differentiation policy that is spread to worldwide. Among all smart phones Nokia N8 is one of the first smart phone which is a device for the people want to create and enjoy the contents of N series that are really amazing. Nokias strategy basically the strategic plan for the company is a long term plan of business and long term way to achieve and attain some specific goals or objectives and to reach the target of the business. Nokia N8 has TV programmers and Ovi Store apps. Strategic change is the need for the organizations further development and progressive pathway of organizations success. The success of the company is totally depending on the strategy of management and managerial decision of the company. Nokia N8 has great stores of music player which has great entrance to the thousands of songs and movies and has an IMS which is also known as integrated messaging service for the business connectivity and social networking advantage. The short term strategy is really important for gaining the long term strategy of company. Strategies are based on the company objectives and generally focus on the near future of company to bring the change of organization and to cope up with the success of corporation.

Factors of Competitive Advantages:

Competitive position of business market sharing advantages Competitive Strategies Differentiation strategy Cost management Leadership Differentiation on Focus Cost on Focus

Corporate Strategies of Nokia:

The corporate strategies of Nokia depend on the management process of the company. From the source of information Nokia has approximately 50% market share which are under control of Nokia Company. Nokias great slogan is Connecting with people that connect people wherever they are. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products. These growth of Nokia is the overcome of Nokias better corporate strategy.

Comparison of Corporate Strategies with Apple:

Nokia has better sales growth of the company and its development. Nokias Change of strategy and strategic partnership agreement and channels of distribution and supply chain management is very efficient. Nokia as a company has internal development. Nokias change of disposals and acquisitions are very effective comparing with Apple. Nokia has innovation of new product and development of business. The market segmentation and development of new market creates lots of opportunity to grasp the customer by attracting them with Nokias great sorts and models of cell phone design. The development of business by developing the organization, organizational rules and regulations, organizational structure change and processes development of company and the change of people of company, change of management process and increasing the communications within the organization through better training program makes Nokia to run the business in sitting down on the consumer market.

Joint Venture:
Joint venture is basically the agreement of contract which is called also contractual agreement and this contractual agreement lies between the parties who are joined together in doing the business. The joint venture has lots of benefits because it creates the synergy in company valuation. This is the purpose of doing the undertakings of company by the large company. It enhances the growth of company market share and utilizes the full resources that are remained unused.

Failure Strategies of Nokia:

Failure strategies are those strategies which fails the company to reach the target market. To reach the target markets there are lots of research needs to accomplish because everything depend on customer satisfaction.

Consolidation and Recovery Strategy:

Consolidation and recovery strategies include an increase of company urgency that increase of company urgency needs to inspire of people and inspiration to move forward and to make goals realistic, accurate and relevant to company mission. Communication of buying indicates the communication by buying that basically involves many people according to the as many it is possible. Communication of buying also includes communication of the requirements and people's needs or wants, Empowerment of action that exerts empowerment of action includes removal of obstacles, enabling of constructive and right way of accurate feedback and lots of justified supports are needed from leaders. So, for Short term success for long term goals includes setting of aim which is perfect and it helps in building of the guiding forums that manage team which is necessary to get the accurate and right people those who are really accepted by human resource manager, the right people should incorporate in place with necessary right and relevant commitments to organization.

Inertia and Overcoming of Resistance:

Basically inertia is the motion change that creates resistance physical objects. In case of Nokia, the inertia can come from high risk of diversified market. The aim of Nokia is to satisfy a broad and wide range of customers over the world. And so by diversification of resource and investment Nokia can take a good opportunity to overcome the resistance. Nokia is becoming and continuing its growing up of market and it is to bring an affordable and easy access to the communication of mobile. Nokia convention has been held basically to renew its commitment and given promises to its loyal customer. The consumers of Nokia are worldwide and it has great varieties of products in diversified market. Nokia is becoming and continuing its growing up of market and it is to bring an affordable and easy access to the communication of mobile. There are hundreds of millions of people in the world using the Nokia as primary phone. Recently Nokia unveiled and released a new device and product for its customers, and of them Nokia N series products including the Nokia N8 are high demanded products. AT the very beginning of time and recently Nokia held a Convention which is in Singapore. In that convention Nokia renewed and rectified its commitment and promises of determination to serve and deliver the great deal of experiences to their customers with its new and latest range of products and promotions. N8 is high quality smart phone in the cell phone market. At that event of convention, two new devices were announced by Nokia and these are the Nokia X6 8GB and the Nokia X5, in addition with this showcase of Nokia the gorgeous and high designed Nokia N8 was revealed for the first time in the market of cell phone basically for the region of its customer to the media and the analysts.

Current Situation of Nokia:

5.5 Suggested Strategy for Nokia: To improve the market situation Nokia needs to have some suggested strategies. Getting of the right and accurate company vision that can create an opportunity for Nokia of getting of the right and accurate company vision is necessary to get the perfect team to implement and to get the reach of destination to a simple organizational vision that focus on strategy and strategically change of management for service excellence and management efficiency. Overall condition can be improved if Nokia takes the perfect decision in perfect time because timing is most important thing without which a market of product can fail to reach the customer.

Conclusion:
Finally, it can be conclude that the corporate strategies of Nokia depend on the management process of the company is currently facing some problems but it will take little time to overcome from that situation. From the source of information Nokia has approximately 50% market share which are under control of Nokia Company. However, Nokia has great competitive advantage in the market because of its differentiation policy that is spread to worldwide. Among all smart phones Nokia N8 is one of the first smart phone which is a device for the people want to create and enjoy the contents of N series that are really amazing. Nokia can start the joint venture which has lots of benefits because it creates the synergy in company valuation. This is the purpose of doing the undertakings of company by the large company.

REFERENCES & BIBLIOGRAPHY

L. Morgan, & D. C, Band, ridge, (Eds.), Strategic management (pp. 49-64).Greenwich publishing

Marshal, P. J. (1999), Management strategies in organization, 44-56, Morgan, G. (1989)

S. Morgan, F., Croat, L J., & Puny, K. R. (1989), Business transformation strategy, (pp. 3-35), Greenwich, CT: JAI Press.

Davidic, K. F, Evans, N., & Tyler, R, (1986), Competitive business strategy, 32-37, Greenwich publishing

Philip Kotlar, Marketing Management, 4 th edition.

Official website of Nokia (www.nokia.com )