VGI-ZZU560-20060428-SAKC-P1-Growth-v2

NOKIA Strategic eras 1865 Creation of Nokia Corporation Leadership Founded in 1865 by Fredrik Idestam 1967 Building new businesses 1992 Focus on Telecommunications Jorma Ollila (1990s) 2000 2005-> Leading the way in Telecom Jorma Oillila *

Bjrn Westerlund (1967-77) Kari Kairamo (1977-86) Simo Vuorilehto (1986-88) Kalle Isokallio (1990-92) ***

Mission/ Vision

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Strategy Formation

Combine unrelated businesses under a decentralized structure with individual profit responsibilities

Invest aggressively for growth and build on the Groups newly developing knowledge in computers, consumer electronics, and telecommunications

Divest all other business lines and focus on Telecommunications industry in 2 key areas - equipment for networks (only GSM) and mobile phones

Key Events

Established as a

Built strong position in the growing telecom

industry by Introducing cutting edge technologies such as In digital transmission equipment (1969), first mobile handset for NMT(cellular network), fully digital telephone switch (1982) etc Shifted focus to consumer and business electronics following 1973 oil shock Modernized and expanded basic industries such as paper, chemicals, electricity, and machinery into robotics, fiber optics, and high-grade tissues unaccustomed to high volume production, began losing money The television and computer businesses also struggled Profits in the electronics division tumbled from $71 million to just $14 million and overall Group income stagnated

In 1991, delivered the first operational

network to the digital GSM standard, nine months ahead of its competitors Overhauled supply chain management by instituting Commando teams to substantially improve profitability Provided turnkey solutions on common platforms to new service operators (post liberalization of the sector) In mobile phone segment, focused on promoting user friendly technology and developed shared platforms across standards and was five-fold in 1993 Operating profitsimilar external image for each standard compared to previous year surpass Motorola and became the world's #1 mobile phone company Maintained strong position in Europe while increasing sales to North and South America and Asia-Pacific

manufacturer of pulp and paper Founded in 1898, Finnish rubber works used the Nokia brand for its galoshes, tires, and other rubber products Finnish Cable Works was set up in 1912 which manufactured cables for the telegraph industry and later served as nokias platform Performance into the telecom arena Forestry industry Indicators contributed to 16% of total sales Limited Geographical Presence (Nokia had only 2 foreign subsidiaries, in Sweden and Turkey)

The fast-growing mobile phone business,

Continue focus on four areas - mobile phones, multimedia, networks and enterprise solutions and manage their profitable growth with other phone Teamed makers and wireless service providers in 2003 , to develop a common global standard for 3G phone software Mobile phone unit introduced new products across a range of market niches. E.g.: introduced a unit capable of English and Chinese text recognition to be sold by vendors in China, N-Gage mobile gaming device etc Maintained #1 position as

Sold 40 million mobile phones in 1998 to

Operating profits

maker of cell phones increased from $3800 mn to $6000 mn from 199903

* Olli-Pekka Kallasvuo named President and CEO effective June 1, 2006 and subsequently on September 21, 2010 Stephen Elop took over.