1. Company Profile
■ Founded in 1865 in a small Finnish town outside Helsinki
■ Originally a manufacturer of wood pulp and pulp
■ A government-orchestrated merger in 1966 resulted in Nokia acquiring an electronics subsidiary.
■ In 1975, Kari Kairamo was appointed CEO.
■ Kairamo decided to focus Nokia's operations on high-tech ventures, with a particular focus on the telecommunications industry.
■ Kairamo also decided to expand Nokia's target market from Finland to all of Europe.
■ In 1980, Nokia helped create the Nordic Mobile Telephone network, the first international cellular system. ■ The next year Nokia purchased control of the largest mobile phone company in Finland.
■ In 1986 Nokia made a huge investment in a mobile phone that would bear the company's name and be marketed internationally.
■ After several challenging years, the company's mobile phone sales grew rapidly during the 1990s. ■ Presently, Nokia is the world's largest manufacturer of cellular phones with annual sales of more then $30 billion.
■ Key strengths: Aggressive management team that continually searches for new products and merger candidates. ■ Key challenge: Overcapacity in mobile phone industry has cut sharply into Nokia's profits.
■ Key challenge: Company's worldwide operations pose many administrative logistical problems.
1.1 Nokia Financial Performance
The company recorded revenues of E51, 058 million (approximately $69,987.2 million) during the financial year (FY) ended December 2007, an increase of 24.2% over 2006. Strong growth in the company's revenues was due to the inclusion of NSN results and a strong increase in revenue of the multimedia segment.
The operating profit of the company was E7, 985 million (approximately $10,945.4 million) in FY2007, an increase of 45.5% over 2006. Its net profit was E7, 205 million (approximately $9,876.2 million) in FY 2007, an increase of 67.3% over 2006.
1.2 Nokia Organisation
● Devices are responsible for developing the best device portfolio for the marketplace, including sourcing of components.
● Service & software reflects our strategic emphasis on developing and growing our offering of consumer internet services and enterprise solutions and software.
● Markets is responsible for management of supply chains, sales channels, and brand & marketing activities.
● The corporate Development office focuses strategy and growth, and provides operational suport for integration across all units.
2. Products and Service
Wireless Wizard Nokia is world's no.1 maker of cell phones, ahead of such as rivals as Motorola, Siemens, and Samsung. The company's products are primarily divided primarily between four divisions:
■ Mobile phones (Wireless voice and data service for personal and business service),
■ Multimedia (Set-top boxes, home satellite system, and mobile gaming device),
■ Networks (wireless switching and transmission equipment used in carrier networks), and ■ Enterprise solution (wireless systems for business). ''Nokia is committed to pursuing accessibility solutions for all, including individuals with disabilities’' says the company’s website. 2.1 Nokia Competitor...
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