This is the assignment I did for the 3rd stage of the Post Graduate Diploma of the Sri Lanka Institute of Marketing (SLIM).

1. Advanced Management Competencies (AMC)
Assignment Topic Isn’t NokiaDead? Fall and Return
Student Name H.D.S.T. PERERA
RegistrationNo 0000022260
June 2017 Examination
Postgraduate Diploma in Marketing
Sri Lanka Institute of Marketing

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3. Assignment Marketing Scheme
June 2017
Subject Advanced Management Competencies AMC)
Student Registration No. 0000022260
Criteria Marks
Allocated Awarded
Aligning to the purpose of the assignment 20
Some of the answeraddressestothe purpose of the question 1-5
Thishas addressedthe purpose of the assignment 6-10
Has addressedthe purpose of the assignmentcoherently 11-15
Thishas addressedthe purpose of assignmentcomprehensively 16-20
Clarity of expression 20
An attempttoorganize ina logical manner 1-5
Satisfactoryshowingof logical mannerand organization 6-10
Showshigherlevelof Carefullyandlogicallyorganized 11-15
Showscoherentstructure withclearlyexpressedideas 16-20
Using examples/evidences 20
Showsa little use of examples 1-5
Some use of examples.Some evaluation attempted 6-10
Some use of examples.Wellevaluated 11-15
Showsappropriate examplesare fullyandreliablyevaluated 16-20
Critical analysis of concepts, theories, conclusions 20
Demonstrateslimitedevidenceof critical analysis 1-5
Demonstratessome critical analysisof relevanttheory 6-10
Demonstratesapplicationof theorythroughcritical analysis 11-15
Demonstratesapplicationof critical analysiswellintegrated 16-20
Following assignment guidelines 20
Limitedfollow-upof assignmentguidelines 1-5
Some level of follow-upof assignmentguidelines 6-10
Good displayof adherence toassignmentguidelines 11-15
Excellentadherence toassignmentguidelines 16-20
Total 100
Special Remarks
Signature of the Examiner

4. Assignment Topic: Isn’t Nokia Dead? Fall and Return
CONTENT
Once the biggest and best-known mobile phone manufacturer, Nokia, has finally
announced the launching of a new smart phone series in 2017 after some analysts thought it
would die in 2014 due to fatal mistakes. What happened to the Nokia’s market kingdom is no
secret: Apple and Android crushed it.
Historically, Nokia had been a surprisingly adaptive company, moving in and out of many
different businesses - paper, electricity, rubber galoshes, etc. In 1990’s, top managers of
Nokia, with their transformation style of leadership, decided to concentrate solely on telecom
business, anticipating a rise of cell phones. It also spent enormous amounts of money on
research and development in order to understand the category in detail. However, they were
quite unable to translate R&D spending into products that customers actually wanted to buy.
Nokia, in fact was a pioneer in the smartphone market, literally introducing consumers to the
smartphone with its initial Symbian Series 60 devices in year 2002. Apple introduced its
iPhone in year 2007. With its full touchscreen and app-based operating system, the iPhone
changed the very definition of what a smartphone should be. Nokia should have responded to
the iPhone more quickly. They didn’t make a response until 2011 – and with that delay I they
suffered eventually. Nearly 1,700 Nokia’s employees were laid off in 2011 due to the
prevailing bad situation of the company.
Samsung, on the other hand, moved quickly into the smartphone market. Not only were
they quick but they also selected the right platform as their operating system (OS) – Android.
Stephen Elop, who was previously the Head of Business Software Division at Microsoft, was
appointed as the Nokia’s new CEO in 2010. Even though there was a rise in profits for the
company during that time, job cuts were continuing. Desperate to come out of this on-going
crisis and to better compete with competitors, Nokia stepped to a strategic partnership with
software giant Microsoft and selected Windows phone as its primary mobile OS.
Interestingly at that time, there were rumors spreading that Microsoft is in talks to acquire the
struggling company. However, Elop rubbished them as ‘baseless’. Company closed its oldest
factory in Finland in year 2012. In 2013, the company started making some profit but

5. revenue continued to decline. In September 2014, Nokia sold its devices and services
division to Microsoft.
Nokia’s unwillingness to accept drastic changes when required – for example, delay in
introducing touchscreen – is considered as probably the biggest reason that put them down.
In addition to the above reason, there were other significant lapses to be noticed in relation to
poor coordination and communication drops between top and middle managers. Although
middle managers were aware of the real situation of the company, they were not willing to
formally discuss the same with their superiors. The real facts and figures of the market were
not communicated to the top managers and some were certainly filtered. This led to bad
decisions or rather delays in arriving at right decisions. The managers were focusing on
products and technology a lot, ignoring the changing needs of consumers. Some of the
decisions would have been based on wrong intuition and satisficing. Eventually, decision-
making that wasn’t based on consumers' demand resulted in the separation of Nokia from the
market.
Armed with its recent history and the expensive and hard hitting lesson learnt, Nokia
backed by the world class company Microsoft, would plan to rework and comeback to the
mobile market.
This is good news for all Nokia fans! After over two years of struggling and reworking,
Nokia is all set to hit the markets in the first half of 2017. Soon, they would make their
presence in the market with 2 new Android devices disproving some of the analysts’
predictions.
TASK ONE
Briefly explain the information roles of a manager (Refer Mintzberg’s Categorization of
managerial roles). Using the details of the above case study as examples, discuss the
seriousness of carrying out decision making roles efficiently and effectively by a manager in
an organizational context.

6. Guideline Note 01
Briefly explain the specific information roles explained by Mintzberg in his theory.
Discuss in detail, how information roles are to be accomplished by modern managers to
avoid crisis and failures from happening in an organization. Students may abstract, if needed
or use suitable examples from the case to further explain their points as justifications
TASK TWO
Explain the Administrative Model in decision making, and discuss its positive and
negative consequences by referring to the case
Guideline Note 02
Briefly explain the administrative model by Herbert A. Simon. Discuss possible positive
and negative consequences of following this model in decision making. Students could refer
to and associate the situation that occurred at Nokia.
TASK THREE
Referring to some of the recent innovations that have happened in the mobile phone
industry, discuss how critical it is to follow customer focused innovations for the survival of
a business.
Guideline Note 03
Students are expected to consider a minimum of three innovations (products and product
features) found in recently launched mobile phone industry and explain benefits and comforts
consumers might enjoy due to them. Discuss the benefits of making consumer oriented
innovations highlighting the negative consequences otherwise.

7. Table of Contents Page
1. Managerial Roles……………………………………………………………….. 1
1.1. Informational roles of Managers…………………………………………… 1
1.2. Monitor……..……………………………………………………………… 2
1.3. Disseminator………………………………………………………………. 2
1.4. Spokesperson……….……………………………………………………… 3
2. The Administrative Model In Decision Making ……………………………….. 5
2.1. Uncertainty, Ambiguity and Non-programmed Decisions……………….. 5
2.2. The Administrative Model…………………………………………………. 5
2.3. Intuition……………………………………………………………………. 6
3. Positive and Negative Consequences of the Administrative Model……………. 7
4. Innovation in the Mobile Industry……………………………………………… 8
4.1. WiFi Phones…………………………..……………………………………. 8
4.2. Mobile Apps…………….…………………………………………………. 8
4.3. Camera on Phone..…………………………………………………………. 9

8. 1
Task 01
1. ManagerialRoles
Managers need to perform a diverse range of activities on a day to day basis. Henry
Mintzberg through observation and research divided the diverse activities of a manager into
ten roles and grouped them into three conceptual categories, namely informational roles,
interpersonal roles and decisional roles. An illustration of the division is given below.
Exhibit 1.1 Ten Managerial Roles
 Monitor
 Disseminator Informational
 Spokesperson
 Figurehead
 Leader Interpersonal
 Liaison
 Entrepreneur
 Disturbance handler Decisional
 Resource allocator
 Negotiator
Source: Henry Mintzberg, Nature of Managerial Work (New York: Harper & Row, 1973)
pp.92-93
1.1 Informational Roles Of Managers
The Information role includes the three management activities of Monitor,
Disseminator and spokesperson.
As the Monitor the manager needs to scan his business environment in search of
current information from many sources. These sources could be through his network
(people, contacts) or through written material (news articles, studies and research data).
As the Disseminator, a manager needs to forward the gathered information to other
organization members. This could be through sending memos, reports or making phone
calls.
The Spokesperson role is where the manager transmits information to outsiders
through speeches and reports.

9. 2
1.2 The Monitor
In accomplishing the informational role effectively, a manager must clearly identify
what he needs to do. As the monitor a manager needs to know what information to
gather. Not all information ‘out there’ is important for decision making. The manager
need to identify what information is beneficial for the organization to stay competitive in
its industry. In Nokia’s case study for example current consumer attitudes and trends was
important information needed. Competitor activity, especially of Apple and Samsung
were important information that was needed for decision making.
Sources for information include relevant websites such as consumer review websites
(ex. gsmarena.com), competitor websites (ex. apple.com) and industry related news
websites. They can also gather information by attending industry related exhibitions,
forums, press conferences and competitor product launches.
Market research reports are another source of valuable information to managers to
accomplish the monitor roles. If the secondary data available in a market research is not
sufficient, an organization can opt for a customized research to gather primary data.
Personal contacts are arguably the most valuable source of information to a manager as
a monitor. Contacts from within the industry could provide valuable input for managers
to make the right decisions at the right time.
Not only should a monitor know what information is needed, he should also know
about the reliable sources for information. A monitor needs to use good judgment in
collecting information as some could be deliberately fabricated to mislead competitors.
False information could result in erroneous decision making that could have devastating
consequences to an organization.
1.3 Disseminator
Disseminators forward information to other organization members. The information
gathered, should be understood clearly by the managers themselves. If information is not
properly understood by the manager it is difficult to communicate it accurately to the top
management. The result would be decisions based on erroneous information.
As the disseminator, the manager needs to ask ‘who is the best person to forward the
information to’. Not all top managers will have the same view of a situation. The

10. 3
manager should forward information to the right executive in the top management, who
will take action on the information.
The disseminator role requires the manager to know what information to forward. Not
all information is needed by the top management. Only those that would have a high
impact on the organization as a whole if not acted upon. As a disseminator, managers
must be excellent communicators. They should be clear and precise in what they forward.
There should be no ambiguity. He needs to structure these data into a format that is most
preferred by the decision maker. It might be a report, email or even a presentation.
Managers should convey the important information to the top managers within the
shortest time possible. Information is as good as the speed at which it is used in decision
making.
Nokia’s middle managers could have forwarded a report to the top management about
the consumer needs and wants of the market. They should have also forwarded the
information about the pending threat of Apple and Samsung to their brand.
Organizations should create a culture in which middle managers are not reluctant to
communicate what they consider important to the organization. In Nokia’s situation
middle managers were reluctant to communicate their conclusions to the top management
maybe due to the fear of being criticized.
1.4 Spokesperson
As the spokesperson manager transmits information to outsiders. A manager has to be
very careful as to what information is transmitted to outsiders. Forwarding wrong
information could give negative consequences and damage the reputation of the
organization. Information should be disclosed after considering the outcome. Whatever
information that has the slightest chance of being misinterpreted should be ignored
altogether.
When Stephen Elop was appointed as the CEO of Nokia, rumors started circulating
that Microsoft was in talks with Nokia for a possible takeover. Elop’s background in
working for Microsoft could have prompted the rumor which seemed probable. The
rumor could have elevated the crisis Nokia was facing at the time. In this instance,
Stephen Elop demonstrated the managers role as the spokesperson, quickly dismissing

11. 4
the rumor as ‘baseless’. As the CEO, Stephen’s words were considered as accurate
information about the Nokia organization. It is important that managers who perform
informational roles project themselves as honest. Or else the words of the spokesperson
could do more harm than good to the organization. When white house spokesman Sean
Spicer kept giving contradicting statements in January 2017, the Donald Trump
administration lost valuable credibility. The present US administration has lost its
credibility to date due to this failure.
Lastly, the spokesperson also should decide the best channel to forward the
information, whether to transmit the information through print media (newspaper,
magazines) or hold a press conference.

12. 5
Task 2
2. The Administrative ModelIn DecisionMaking
The administrative model in decision making, also known as the behavioral model was
introduced by Herbert A. Simon. This model is based more on practical reality rather than
theoretical ideal. It describes how managers actually make decisions in their changing
environments as opposed to a theory of how managers ‘should’ take decisions. The
administrative model of decision making is typical in situations involving uncertainty,
ambiguity and when requiring a non-programmed decision.
2.1.Uncertainty, Ambiguity and Non-programmed Decisions
Uncertainty occurs when adequate information is unavailable regarding a problem,
options and consequences. Ambiguity is when the circumstance is totally unclear.
There is no information about the problem, possible options and consequences.
Non-programmed decisions include those decisions made is response to situations
which are unique, poorly defined and largely unstructured, and has serious
consequence for the -organization. Non-programmed decisions are taken when the
organization is facing a type of problem that it’s unfamiliar with. Possibly a situation
they have not encountered before.
2.2.The Administrative Model
With his decision making model, Herbert A. Simon proposed two concepts as
shaping the administrative model. One is bounded rationality and the other
satisficing.
Bounded Rationality means that individuals have limited rationality and do not
have access to all the possible information. In a complex business environment
managers do not have the time and cognitive ability to process all the information
required to solve complex problems. In such instances they simply choose the first
solution that meets the minimal decision criteria. This is referred to as satisficing.

13. 6
2.3.Intuition
Intuition is the third aspect of the administrative model. Intuition is not making
decisions arbiterily or in an irrational fashion. But Intuition is taking decisions based
on years of practice and hands-on experience. Manager should not rely solely on
intuition for decision making. Consequences could be positive or negative if done so.
Neither can managers rely heavily on rational analysis as they do not posses all the
time and information to do so. The best solution is a balance between the two.

14. 7
3. Positive And Negative Consequences OfThe Administrative Model
The positive side of following the administrative model is that it considers practical
reality as opposed to the Ideal Rationale Model. The Ideal Rationale Model is based on
the assumptions that the problem environment is certain and that the decision maker is
rational. But this is not the reality in which managers make decisions. Situations are very
much dynamic and are characterized by uncertainty and ambiguity.
Nokia’s track record of moving in and out of different businesses gave its management
invaluable experience. Intuition is the aspect in the administrative model which is based
on past experience. The lessons learnt by experience in various industries provided the
right intuition Nokia needed to enter a new market such as telecom. The right intuition
demonstrated here is a positive consequence of following the administrative model.
Decisions made on Intuition are quick. Samsung pouncing on the opportunity given by
Nokia’s delay in introducing a touch screen Smartphone proved profitable to the
company.
Another positive in following the administrative model is its bounded rationality.
Individuals have limited rationality and do not have access to all possible information. In
the dynamic environment faced by managers today, decisions need to be made within the
shortest possible time on available information and the manager’s cognitive ability. When
Apple introduces its touch screen, app-based phone in 2007, Nokia did not respond till
2011. The company waited instead, most probably wanting to gather as much information
as possible before making a decision. And that proved fatal. The dynamic environment in
the cell phone market did not allow Nokia a ‘time out’.
There are negative consequences of following the administrative model as well. For
example Nokia spent enormous amounts of money on research and development in order
to understand the cell phone product category in detail. However, they were unable to
translate R&D spending into products that customers actually wanted to buy. As good as
its R&D results were Nokia lacked important information about consumer needs and
wants. It is this lack of information that resulted in Nokia’s delay in responding to the
release of the Apple’s Smartphone. This is where Bounded rationality can result in
negative consequences. If the information available is limited, the decisions based on this
information can prove fatal to organizations.

15. 8
When the management of Nokia did not have time to consider every possible solution
to the crisis they appointed Stephen Elop as CEO in 2010. Competitors were choking
Nokia’s market share. Rather than going through every foreseeable solution, Nokia
appointed Elop as the first solution. Stephen Elop seemed the best option for the
crumbling organization. But Stephen Elop’s strategy in partnering with Microsoft created
rumors that there was a potential takeover of Nokia by the tech giant Microsoft. This had
a further negative impact on Nokia’s brand which the management did not foresee when
they choose Elop. Eventually Nokia sold its devices and service division to Microsoft in
September 2014. Satisficing can be fatal in situations where sufficient solutions have not
been considered. Company’s maybe better off in choosing several solutions that meet the
required criteria and then deciding on the best one, rather than selecting only the first
solution that meets the requirement.
The administrative model is in fact a decision making ‘model’. It is not a foolproof
systematic process to come to the ‘correct’ decision. Consequences of following the
administrative model depend on how managers use the model. Quick decision making
with the least amount of information and consideration could have negative
consequences. So will taking too much time to consider all the possible solutions and the
consequences of each. It is therefore good practice that managers consider the severity of
the problem, the time and information available and make the decision that has the best
possible economic benefit to the organization

16. 9
Task 03
4. Innovations in the mobile industry
Mobile technology is one of the fastest developing technologies in the world. Many of
these technologies are based on consumer needs and wants. Communicating, doing
business and learning through use of mobile devices is becoming even easier today. Let
us look at some the technologies that are making mobile devices the sort after electronic
durable among consumers.
4.1 Wi-Fi Phones
For years mobile phones have operated on localized carriers such as Dialog, Mobitel
and Etisalat. Though internet facilities are provided by these carriers, consumers need to
watch the data limits. Exceeding these data limits could either cost more for the user or
suffer slow internet speeds.
Today almost all new phones come with a Wi-Fi feature. This feature allows users to
shift from using their own packages data to Wi-Fi in certain locations. Most business
today operates Wi-Fi zones within their premises for the customers. For example most
restaurants, hospitals and hotels offer free Wi-Fi to its guests. Today’s customer is
hungry for information. And there is literally no place they would not go with their
mobile device. Sometimes customers give preference to doing business in places where
Wi-Fi facility is freely available. Individually or as a business executive, connectivity is a
must. Businesses that do not offer such customer value may lose out in future.
4.2 Mobile Apps
Mobile Applications (Apps for short) are one of the most important consumer oriented
innovations in the last five years. The popularity of social networking is unprecedented.
In Sri Lanka there are over 5 million internet users. Over 3.5 million internet users are on
Facebook, 0.6 million on LinkedIn and about 60,000 on instagram (Digital Marketer,
2016). With such large number of social media users the technology of social apps on
mobile phones became inevitable.
Today many businesses are developing apps to communicate with their customers.
And customers in turn use mobile phones to communicate with potential businesses.

17. 10
Banks have introduced mobile apps to give their customers the ease of doing transactions
by phone, without even stepping into a bank. Customers no longer require standing in
queues to pay their utility bills, check their bank statements or make online payment. It’s
all available in the app.
Restaurants offer their customers the ease of ordering through mobile apps. No longer
does the consumer need to call for delivery. The app provides all the details required to
make the buying decision. Other services such as taxi, ticket booking, hotel reservations
are all on mobile apps. Mobile apps have truly made life easy for the consumer.
4.3 Camera On Phone
Another feature that is addictive to mobile users is the camera. No longer does an
individual need to carry a traditional camera in their pocket to capture those moments.
Their trusted mobile phone provides that benefit as well.
Today the term ‘selfie’ is very popular among youngsters as well as those young at
heart. And the perfect tool for the selfie is the mobile phone. The camera feature in the
mobile phone has literally removed the need for the traditional camera. Mobile phone
camera’ is becoming sophisticated with each new model. The Oppose brand of mobile
phones has a model it calls “the selfie expert”. Today mobile phone designs have
upgraded from a single back end camera to a dual camera feature with the second camera
being placed in the front end.
The innovations the mobile phone has gone through over the years are not limited to
the above three features. The mobile phone industry is developing at a rapid pace. Top
manufacturers are competing to become the number one in the industry. And the secret of
success is consumer oriented innovations. Apple is a brand known for its innovative
technology fueled by its continuous commitment to delighting the customer.
The fatal flaw of Nokia was its lack of consumer orientation. Nokia did not consider
the customer in their innovations and paid the ultimate price for it. Apple and Samsung
capitalized on this error by Nokia and became top brands of today. The inability of Nokia
to understand the consumer trend whilst being the industry leader is a lesson for all
mobile phone manufacturers.

18. 11
Though Apple and Samsung remain successful brands today they cannot become
complacent in their respective positioning. There is stiff competition from Indian and
Chinese mobile brands that are offering similar features at lower prices. The key to
succeed in the industry is for manufacturers to focus all their attention on consumer
oriented innovations.