Introduction And History To The Phone Nokia Commerce Essay

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Nokia was set up in 1865, when a Finnish mining engineer, Fredrik Idestam established a wood pulp mill on the banks of the Nokia river in southern Finland to manufacture paper. In 1967, three companies, the Nokia Forest Products Company, Finnish Cable Works and Finnish Rubber Works merged. As Cable Works had expertise in power transmission cables and phone lines, Nokia decided to start an electronics division to diversify into telecom products in 1960.

The decision to move into electronics was well timed. Semi conductor technology was just evolving and Nokia, despite being a newcomer, was not seriously handicapped in any way. It was Bjorn Westerlund, president of Cable Works who mooted the idea. Westerland tied up with colleges and universities and hired technically competent people to implement the project.

In the early 1970s, Nokia began developing a switch equipped with computer software and Intel's microprocessors. Called the DX 200, the switch evolved into a multifaceted platform, still the basis of Nokia's network infrastructure. The leadership of Kari Kairamo, who became Nokia's CEO in 1977, played a crucial role in Nokia's evolution as a leader in mobile phones. Kairamo, himself had little knowledge of the business, having been associated with the forest products division. He, however, showed extraordinary initiative, by recruiting outside talent and empowering the young engineers in the electronics division.

In 1981, the Scandinavian countries came together to set up a multinational cellular network, called Nordic Mobile Telephony (NMT). Many other countries also accepted NMT. The system offered competitive prices, and international roaming facilities, and quickly gained popularity the world over. While Swedish company Ericsson rapidly emerged as the global leader in the cellular network equipment business, Nokia gradually strengthened its capabilities in the mobile handsets segment. Soon mobile phones began to evolve as an affordable communication medium even for the common man.

In the late 1980s, the European conference of Postal and Telecommunications Administration (CEPT) decided to develop a common standard for digital mobile telephony. This standard came to be known as GSM* (Global System for Mobile Communications). Nokia committed itself to GSM technology very early on and signed agreements to supply GSM networks to nine other European countries.

Task 1 A: Identify an organisation of your choice which you will discuss as an example in this assignment and give your reasons for choosing this organisation.

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia is a broadly held company with listings on four major exchanges.

Nokia Corporation (Nokia) is a manufacturer of mobile devices and mobile networks. Nokia connects people to each other and the information that matters to them with mobile devices and solutions for voice, data, and imaging, games, multimedia and business applications. The Company also provides equipment, solutions and services for its operator and enterprise customers. Effective January 1, 2004, Nokia reorganized its structure into four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. During the year ended December 31, 2004, Nokia announced a total of 36 new mobile devices in a wide variety of designs and technologies for all segments and at all price points. Of the products launched, 34 had colour screens and 23 were camera phones, including its first mega-pixel camera phone, the Nokia 7610. In 2004, Nokia sold 10 million phones with integrated music players.

The company includes four business groups:

Mobile Phones


Enterprise Solutions and


Nokia also includes two horizontal groups that support the mobile device business groups:

Customer and Market Operations

Technology Platforms.

Nokia, the Finnish telecom giant is today one of the world's most admired companies. Fortune magazine1 has referred to Nokia as the "least hierarchical big company in the world". Nokia generates revenues of $19.9 billion and employs about 55,000 people.  Its shares are listed on the New York, Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges. Networks deals with data, video and voice network solutions. Mobile Phones are the clear global leader.  Many of the standard features of today's mobile phones, such as large graphic displays, signal and battery indicators, colored covers and ringing tones were originally developed by Nokia. Communication products include multimedia terminals for digital TV and interactive services via satellite, cable and terrestrial networks.

Task 1 B : Who are the major stakeholders of your organisation and what considerations should be made to ensure their {Stakeholder} participation in developing management strategy?


Task 1 C: what are the key criteria that should be considered when reviewing management strategy options ?


The Nokia Value System

Flat, networked organization, as well as speed and flexibility in decision-making, characterize the Nokia Way of working. Equal opportunities and openness towards people and new ideas are also key elements we want to nourish. Nokia is straightforward when dealing with customers and suppliers and always looks for innovative ways of creating and introducing products and solutions to the market. We provide individuals with a platform for personal growth in a challenging environment with a clear vision, goals and shared management principles - the Nokia Way. The Nokia Way brings together talented individuals who share these principles, and therefore share success.

Nokia's values are key components of the Nokia Way. Believing in these core values and living them every day is our common bond and shared philosophy. These values drive Nokia colleagues, wherever they are in the world.

Customer Satisfaction:

Creating customer satisfaction is the basis of our strategies and actions. Our customers and end-users are the most important people for Nokia, and we need to all understand how our work will benefit them.

Customer satisfaction is about meeting the existing needs of our customers, but even more important is the ability to anticipate their emerging needs, and create solutions to fill them. We should all be committed to producing high quality solutions, products and services.


Treating one another with trust and respect is a cornerstone of the Nokia values, and essential for building an open and honest spirit at the workplace. Our culture allows us to depend on each other, and communicate openly and honestly.

Nokia is a global and multi-cultural company. We seek diversity, because it is an important asset that enables us to achieve extraordinary results.

Respect also describes our attitude to the surrounding world. In today's networked operational mode, we are working with an increasing number of partners, and we should care for and respect them. We also value the environment and communities around us.


Nokia strategies and goals need to be inspirational and easily understandable, but the drive to achieve can only start from within each of us. Everyone at Nokia should genuinely say: "I care!"

All have a responsibility to contribute to Nokia's success. Professionalism is at the heart of everything we do, and it is understood that everyone will strive to excel at his or her job. Still, no one can realize company goals alone. That's why the Nokia Way aims to connect people in teams, not for the sake of debating the goals, but for reaching them faster. We recognize and celebrate our individual and shared achievements.


Nokia has a willingness to change and develop. The environment in which we do business is evolving continuously. To succeed, we must have the passion and courage to look for new ideas beyond existing products, services and ways of working. Only with truly innovative ideas will we be able to define the future development of our industry and profoundly shape the way in which people understand and use mobility in their everyday lives.

Management and Leadership

Nokia has a distinctive management and leadership approach based on the Nokia Way at all levels. This creates commitment, passion and inspiration through collaboration and coaching, and ensures focus and efficiency by setting targets, fulfilling goals and reviewing results. Personal growth through self-leadership provides the foundation for successful management and leadership practices. Employees are encouraged to be responsible for their own development and to take advantage of the various development opportunities available.

Employee Participation

Nokia encourages open discussion and debate. As an example, the annual globally conducted ´Listening to You´ employee survey is a powerful way of getting feedback from our employees on a range of important issues. We listen to the views of our employees and act on them when designing our people policies and practices.

Another example in addition to this annual survey, other issue-specific surveys and focus group discussions, is the "Ask HR" feedback channel on our human resources Intranet. There, every employee can comment or ask questions about our people practices and processes, even anonymously, and receive a prompt and openly published response.

Task 1 D: Describe a situation with your chosen organisation where a potential strategy might be developed to resolve an issue. Produce an appropriate strategy and indicate its resource requirments.


Task 2:

Develop Vision, Mission, Objectives and Measures

A: For your chosen organisation, list the down its ethical, cultural, environmental, social and business objectives. How are these influenced by the current business and economic climate?

Ans: Ethical Business Practices:-

Nokia has been and continues to be deeply committed to being an ethically sound business; no long term customer, employee or other stakeholder relation can exist without organization and personal integrity.  Nokia is committed to the highest standards of ethical conduct and full compliance with all applicable national and international laws.  Nokia's goal is to be an industry leader in these areas as well as a good corporate citizen wherever it does business. 

Ethics and Law

Nokia is strongly committed to the highest standards of ethical conduct, and full compliance with all applicable national and international laws. This includes, for example, those relating to antitrust and promoting fair competition, corporate governance, preventing bribery, illicit payments and corruption, publicly traded securities, safety in the intended use of the products and services Nokia delivers to customers, labor laws and practices, the environment, human rights laws and internationally recognized standards, and protecting copyright, company assets and other forms of intellectual property. Nokia's goal is not mere minimum legal compliance, but as an industry leader to be among the world's best in corporate responsibility, practicing good corporate citizenship wherever it does business.

Nokia respects the privacy and integrity of its stakeholders and endeavors to adhere to strict standards when processing personal data and product information. All personal data collected and held by Nokia will be processed fairly, lawfully and carefully and in a way that protects the privacy of individuals.

Human Rights

Nokia respects and promotes human rights. Nokia recognizes that certain human rights should be considered as fundamental and universal. Among those rights are freedoms from discrimination based on race, colour, sex, language, religion, political or other opinion, national or social origin, property or birth.  Nokia will not use child or forced labor. Nokia will not tolerate working conditions or treatments that are in conflict with international laws and practices.  

Conflicts of Interest. Gifts & Bribes

Nokia employees are strictly expected to avoid conflicts of interest.  Nokia and Nokia people do not pay or offer to pay bribes or illicit payments to obtain or retain business. 

This includes, but is not limited to acceptance and giving of personal gifts or hospitality, to or from Nokia stakeholders, other than gifts of nominal value or reasonable hospitality given in the ordinary course of business. Any agreement or understanding regarding favors or benefits in exchange for the gifts must be avoided. Gifts of other than nominal value may not be accepted without full disclosure to and prior relevant clearance from the employee's supervisor. Nokia and its employees will not pay or offer to pay bribes or illicit payments to government officials or candidates, or other parties, in order to obtain or retain business. Nokia does not provide financial support to political parties or other political groups.

Workplace Practices

Freedom of peaceful assembly and association as well as freedom of thought, conscience and religion are respected in everyone's actions at Nokia.  Freedom of opinion and expression are very much in line with Nokia's open and straightforward way of working and its corporate value, 'Respect for the individual.'

Nokia employees must respect and encourage Nokia Values at work, promoting teamwork, individual responsibility, and the strength that comes from diversity. Nokia will strive to pay fair compensation, and provide a safe and healthy workplace for employees. Nokia is committed to equality of opportunity in all its employment practices, policies and procedures. Job requirements fulfilled, no employee or potential employee will, therefore, receive less favorable treatment due to their race, creed, colour, nationality, ethnic origin, age, religion, gender, gender reassignment, sexual orientation, marital status, connections with a national minority, opinion, disability, membership or non-membership of a trade union. Nokia will continue to invest in the personal and professional learning and growth of Nokia's employees. Nokia will encourage its employees to lead balanced personal and professional lives.


Nokia's environmental activities are based on life-cycle thinking. The goal is to reduce environmental effects during our product life cycles. This is done by managing our own operations and our supplier network, incorporating Design for Environment (DfE) into our product development, processes and service design and supporting sound End-of-life practices. Nokia does not use any endangered species for any business purpose and furthermore requests that its suppliers avoid raw material procurement from an origin where there are clear human or animal rights abuse, or the method of procurement or distribution is illegal. In marketing and other company activities, Nokia will depict animals in a dignified manner.


Nokia will do its utmost to contract only with subcontractors or suppliers who themselves adhere to international human rights and environmental laws and practices. Nokia commits to monitoring the ethical performance of its suppliers and to taking immediate and thorough steps in cases where the ethical performance of its suppliers comes into question.


The compliance commitment in this Code extends to all matters, including decisions relating to trade, investment, subcontracting, supplying, business development, and in all other business and employment relationships. Nokia's approach to implementing this Code of Conduct will be active, open and ethically sound. Although difficult questions of interpretation may arise in specific instances, particularly regarding the need to sensitively balance local customs and requirements with global standards and guidelines, Nokia recognizes that the above commitment means that Nokia will do its utmost to identify ethical, legal, environmental, employment, and human rights issues and resolve matters consistent with this Code of Conduct.

To remain successful, Nokia respects and encourages teamwork and the strength that comes from diversity.  Working in a multicultural environment is considered to be an advantage and privilege.

Equal opportunity is a key part of the Nokia way.  Nokia invests in the personal and professional learning of all its employees.  Its target is to learn something every day and to secure the continuous learning of the entire team.  Nokia also considers the balance of the personal and professional lives of its employees to be important. 

Everyone at Nokia is encouraged to follow strict ethical rules in their own work environment.  Discrimination, for example, can sometimes be hard to detect.   Whenever a problem in the workplace is detected, it is tackled immediately. 

B: Describe the roles of vision and mission statement of your chosen organisation.



Ten years ago, nokia had a vision that seemed revolutionary for the times: Voice Goes Mobile! As history shows, this vision became reality in an incredibly short amount of time. With more than 1.6 billion mobile phone subscriptions globally - and more mobile phones than fixed-line phones in use - nokia see that mobility has transformed the way people live their lives.

Today, Nokia sees mobility expanding into new areas such as imaging, games, entertainment, media and enterprises. There are new mobile services already taking our industry forward and creating new opportunities. At the same time, major opportunities still exist in bringing mobile voice to completely new users.

If it can go mobile - it will!

Mission: Connecting People

By connecting people, nokia help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people - both when they are far apart and face-to-face - and also bridges the gap between people and the information they need.

C: Indicate how it is possible for an organisation to evaluate the achievement of its objectives.

A ns:- 1: Economic Mission at Nokia is, fore mostly, to drive a profitable and growing business.

2: By conducting business in a responsible way, Nokia can make a significant contribution to sustainable development, at the same time building a strong foundation for economic growth.

3 :Decreasing costs, and building reputation amongst stakeholders.