SKYLINE BUSINESS SCHOOL

Research on world class company culture

Submitted By:- Manoj Kumar

Submitted To:- Romesh Raina

Batch :- L2S1( Feb2009-2011)

 NOKIA
OVERVIEW

Nokia world leader mobile manufacturing business, has an increasing global market
share and has conquered customers all over the world. Corporate NOKIA was
founded by Fedrik Indstam in 1865 as a wood pulp mill involved in manufacturing
paper on the banks of Nokianvirta River. Later name of the river became the name of
the company. It ventured into the telecommunication industry in the 1960s. But the
real transformation of the company into a large MNC, the Nokia Corporation,
happened in 1967 by merger of the companies- the parent company Finnish Rubber
Works, Nokia Wood Mills and Finnish Cable Works. In 1979 it introduced its first
mobile telephone.

Nokia corporation has grown over the century to became the market leader and world
largest company in the mobile business, with 36 percent of the world market share,
by the first quarter of 2007

World class Organization

The real growth of the Nokia Corporation was after the mobile revolution in 1980s.
The company utilized the telecom boom with its high growth strategies.

After the merger of the three companies in 1967, the newly formed Nokia Corporation
concentrated only on the mobile business, which helped it to attain the position of the
world leader in short-span of time. The electronic department of Cabal Works began
manufacturing telecommunication products. In 1964, the electronic department had
developed Very High Frequency (VHF) radio simultaneously with Salora Oy and the
Address Resolution Protocol (ARP) phone was developed in 1971. In 1981 , Nordic
Mobile Telephone (NMT) service was launched . This was the world’s first
international cellular network in international mobile calling and also first in the
international roaming service. This had attracted the market inside and outside
Europe. After the introduction of NMT service , Nokia mobile began to expend the
mobile market. Besides, it work in customer and market operation; and in technology
platforms. Nokia is well ahead of its competitors like Motorola, Ericcson etc., and
accounted for 37% of market share in the telecom industry in 2007 and accounts for
half of the market capitalization of the Helsinki Stock Exchange ( OMX Helsinki,
Finland)

Customer focus: Nokia know the what want to customer, customer want to mobile
phone as a fashion accessory, customer would prefer a mobile phone that is great
looking rather than having the latest features.

Focus on the most valuable customers

A pinpoint focus on the value of each customer is also vital. Nokia Siemens Networks
estimates that 20% to 30% of a typical CSP's end-users generate 70% to 80% of the
Customer Lifetime Value (CLTV). There are also cases where 10% of end-users
generate 90% of the profits.

By analyzing the actual expenses incurred by each end user, such as device subsidies,
call center costs, service and call delivery costs, a CSP can develop a comprehensive
view of user behavior, costs and profitability.

"When such analysis is conducted, the results show that the CLTV varies widely, even
among high-revenue users. This contradicts the belief that high-revenue customers
deliver the highest profits," says Del Rio Sastre. "Rather than treating all customers as
equal and all network traffic as equal, a better approach is to focus on the highest
value and most profitable customers based on real insights into their demands."

There are five key factors that affect the quality of the customer experience: brand,
cost and billing procedures, network and service quality, portfolio and the efficiency
of customer service. Getting any of these factors wrong can lead to increased churn,
while getting them right encourages customers to stay loyal and increases CLTV.

"One of the most effective ways to enrich the customer experience quickly is to invest
in those areas in which the CSP is weakest, yet which are seen as being most
important by end users," says Del Rio Sastre.

Customer insight is vital

Clearly, this approach demands an understanding of end-user needs at each stage of
the customer lifecycle. A holistic view of end-user insights across the organization
enables CSPs to build better customer relationships, increase customer spending and
raise customer loyalty throughout the relationship. Yet, 87% of CSPs do not have a
unified view of all their customer data, making it hard to achieve a fully customer
centric business.

One of the first steps along the road to customer centricity, therefore, is to combine all
subscriber data into a single database that can be accessed through open interfaces by
any application and by any part of the CSP's organization. Such a unified and real-
time view of subscribers gives the CSP a detailed understanding of a customer's value,
needs and behavior at each stage of the lifecycle.

Services
Nokia Care provides support services to consumers through online, email and call
center services, supported by a network of authorized service centers. The support
includes basic product information, guides and demonstrations, discussion boards,
software updates, advice on specific issues, and warranty repairs. It also helps
consumers to find out where to recycle their old products.
We aim at getting a wide picture of consumer experience by using different consumer
feedback channels, and respond with targeted improvement actions. The main
feedback channels include consumer satisfaction surveys, feedback through
independent market research companies and Nokia Care contacts.
Operators
Nokia continues to receive enquiries and assessment requests about social and
environmental performance from our operator customers. We respond to those
requests through our normal customer account management interface.

Better marketing strategy

Nokia,s growth strategies such as a product innovation for different market s from
high and model to low and products have been well received in different market in the
world. This has led to its incredible success with growing profits. The various
corporate strategies adopted by the Nokia have made it one of the ‘best employers’ in
the world / great place to work for. Nokia has won such recognition due to its
excellent strategies followed at various stages of its growth. These have won Nokia
growing revenues and enduring consumers with the increased loyalty towards its
products and services.
Nokia :technology Behind the Growth:-
The growth of Nokia is mainly based on innovation. Its innovation have helped to
improve the standard of its products and technology. In the competitive business
world the customers like only new and high-end innovative products, and Nokia has
come up with very good product innovations. With such products it reaches a large
number of customer in the world. Nokia products are more reliable, user friendly and
innovative than other companies’ products. Also it use advance technology in its
mobile phones. It provides much batter technology than the competitors. These are the
main factor which make Nokia’s technology and products popular and helps it to beat
its competitors in the mobile market. The Nokia success saga started with its invention
of the digital transmission equipment and the first multinational cellular network
Nordic Mobile Technology that facilities its successful growth.

Products:
Nokia products mobile phones in various standards, from low end to high end
products that cater to different market segments of customer in more than 130
countries. Its innovation in using the GSM, CDMA and TDMA technology in its
mobile phones attracted many customers. Besides these innovations the incorporation
of the acquired features of Camera ( both Video and Stills). FM, MMS, GPRS, java,
MP3 & MP4 players has made Nokia mobile phones a big hit in the market and has
made the masses their ardent users.

Nokia provide Offering high product quality, Wide range of product, Product
warrantee worldwide, Fashionable product ( serve new trend)

Cultural role
The Nokia Way-emphasizes the speed and
flexibility of decision-making. Equality of opportunities and employee Participation.
The okia Values are Customer Satisfaction,Respect, Achievement, and Renewal.

Nokia culture is rooted in the Finnish national character: Frugal, honest, very direct,
serious, with little tolerance for “ fooling around”, mixed with a good does of
engineering culture: “ Can do,” pragmatic, and hands-on. The difficulties that Nokia
faced before Ollila became CEO also played their part in shaping the culture.

People who know Nokia well often refer to typically Nordic egalitarian and
communitarian side to the Nokia culture, which emphasizes joint achievements and
rewards. Shared vision, goals, knowledge, openness, speed and integrity are
paramount in every day interaction. Managers are willing to share information and to
involve team members to create greater commitment. This allows knowledge and
skills to be shared freely, and staffing and organization structure to evolve with
relatively little resistance, in a flexible manner.

Another feature of the culture is honesty. People are expected not just to avoid
politicking, but also to be open in expressing disagreement.

Nokia believes that despite its increase in size over the years. Its culture remains that
of the independent, innovative and creative start-up. The informal work culture lays
emphasis on the empowerment of frontline employees.

Building talent-
Though Nokia is not known to pay high compensation, it has been successful in
attracting, motivating and retaining quality people. Nokia inculcates a culture of
intrinsic motivation in its employees and makes them believe that monetary rewards
are not the most important part of employment.

Retain culture its future

Nokia’s corporate culture basically aims at ensuring that employees consider working
at Nokia as experience. It has a positive influence on the lives its knowledge workers.
By providing its employees education, training and development programmes
emphasizing non-monetary incentive for good performance.

Technologies Development in future

Generally, Nokia always improve their product line through Research and
development process, beside this Nokia also has multimedia compatible improvement
with mobile at the same time, such as, GPRS and WAP Service.  Nokia has numerous
technologies which can satisfied those end-users need, such as, Bluetooth, Symbian,
SYNCML, M2M, Wireless LAN and Java. Research (see appendices) and
development can ensure that it stays ahead of the existing products, which seen to be
shortening life cycles of product.(Marriden, 2001)  And Nokia employed more than
17,000 people in R&D department over fourteen countries
EXECUTIVE SUMMARY

This report analyses the impact of external an internal influences on the business
strategies of Nokia Corporation, evaluats the factors, modifers of Nokia’s
advancement, and also considers the environment policies, and technology
development in the future.

Analyzing current business situation shows that Nokia needs to:

 
          Differentiate its products capability between old and new category.
          Enhance its products with computer IT compatible, focusing on new
technology users.
          Maintain its price reasonably.
          Follow, practice and promote its environment policies.
The purpose of this report is to evaluate how successfully does Nokia advance its
products.  Due to the modern trends of social development, whether Nokia’s
environment policy is accurately operated or not will be related to improve its
reputation.  In addition, the grow of mobile terminals leads Nokia to modify its
changes, therefore, Nokia has to develop new technology to approach to a new
market, which combine with PC market not only to occupy the position in mobile
phone market.  Moreover, to connect PC and mobile phone is a tendency in mobile
phone market, even though to combine these two products together.  Because of this
trend, Nokia creates new products to match with the market.

Company History
At beginning, Nokia was a manufacturer of paper in 1865.  It had a dramatic changes
in last centary. (Nokia, 2002)  After World War II, the require of industrial products
were increased substantially.(Liu, 2001)  Nokia had change its function to an
industrial enterprise and produce industrial products, such as chemicals and
rubbers.  Untile 1960s, Nokia had set electronic department, and focused on develop
transmission systems, this was the factor that Nokia became a famous company in the
world.
          Global marketing (product)
Nokia is the global product so it is undoubted true that its products should be at least
passed worldwide qualification, viz, ISO.  This is the reason of why Nokia can be
entrust around the whole world.
 
          High product quality
Nokia concerns about product quality, which is the most important factor to satisfy
customers’ needs.  Nokia adds more values by superior quality or differentiated
features to the market.  In the meantime, Nokia still produces the products with high
quality and continuously improve to the particular market.
 
          Fashionable product (serve new trend )
“The rise in number of users by 700 million in a little over three years will be driven
by a huge rise in the number of young style –conscious users” (Nokia, 2002).  That is
the reason why they have to serve for young people who use their mobile for text
messaging rather than phone call.
Product warrantee worldwide
No matter where Nokia’s customers are, if they got a problem from Nokia’s mobile
phone. Of course, they can use Nokia service worldwide wherever Nokia centers are.
These can ensure customers who worried about service system.

Salient Features of Nokia Culture

Team Work
Nokia organization and culture has often been described as being typically Nordic
egalitarian and communication in nature, which place greater emphasis on joint
achievement and rewards, openness, knowledge, shared vision, goals, speed and
integrity of decision making.
Honesty
People are given, in the literal sense, maximum freedom to express their
disagreements openly and are expected to avoid politicking.
Empowering Front Line Employees
Nokia believes that despite the increase in size over the years, the management
policies and practices remain that of an independent, innovative and creative start-up.
The work culture basically aims at empowering front line employees. An employee in
Finland remarked “ People are quit independent and disciplined; they do not require
strict instructions. As such, there are no fixed office timing and one can choose his or
her seven and half hours of working time as per their convenience.