SWE440-1404A-01Software Project ManagementSameer.docx

SWE440-1404A-01
Software Project Management
Sameer Bangush
10-10-2014
Table of Contents
1Project Description and Methodology3
2Standards7
3Risk, Human Resources and Stakeholders8
4Project Budgeting and Estimation9
5Scheduling and Tracking10
6Final Report11
6.1Scheduling & Tracking Progress11
6.2Dependencies between tasks11
6.3Gantt charts with WBS and Milestones11
6.4Program Evaluation Review Technique (PERT)11
6.5Critical Path Method (CPM)11
6.6Configuration management11
6.7Risk management11
7References12
Project Description and Methodology
We have received a new project to build a software for Wells
Fargo Accounts Department. Wells Fargo is the largest Home

Mortgage Bank in USA and they have both Financial and
Mortgage Department. Here below are the business
requirements from the accounting department.
Business Requirements:
The new system should be an end-to-end enterprise financial
management solution designed to meet the needs of the most
complex, multinational organizations. The ERP solution should
be comprised of a robust set of applications that support all
aspects of financial business activities and are listed below:
· Financial and management accounting: Financials provides
core accounting and reporting capabilities with scalability to
support the requirements of large multinational companies. Key
features and functions include the following:
· Fixed asset, accrual, bank, cash journal, inventory, and tax
accounting
· General ledger
· Accounts receivable and accounts payable AR/AP
· Fast close functions
· Financial statements
· Parallel valuations
· Financial supply chain management: The module should be a
set of applications to help streamline receivables and
collections management processes. These integrated solutions
should help reduce operating costs and improve cash flow and
reduce days' sales outstanding. The application should include
the following application functionality:
· Credit management
· Biller direct
· Dispute management
· Collections management
· Treasury applications: The treasury applications should
provide robust cash, liquidity, and financial risk management
capabilities that enable you to more precisely manage cash,
mitigate financial risks, and streamline bank interactions and
payment processes. This application should contain the

following application functionality:
· Cash and Liquidity Management
· Helps you monitor and manage cash flow and liquidity
· Generates comprehensive and timely cash forecasts and plans
· In-House Cash
· Enables centralized control of banking balances, cash
management, and payments
· Reduces costs of inter unit payments, transfers, and bank fees
· Treasury and Risk Management
· Models risk scenarios and executes mitigation strategies
· Reduces your organization's financial risk levels and ensures
regulatory compliance
· Bank Communication Management
· Streamlines and optimizes corporate-to-bank communications
· Provides straight-through processing, improved payment
control, and lower processing costs
Agile Scrum Methodology:
The Agile is nothing but a movement proposes alternatives to
Traditional Project Management. This methodology often called
as Incremental model. In the Agile methodology, work is
divided into chunk and developed in incremental and rapid
cycles. The Agile team is usually small and consists of ten to
fifteen people team. Daily they do have a meeting which is
called scrum meeting where they discuss what they have done
yesterday what they are going to do today, any issues or any
road blocks. Each release has to be done within the sprint time
frame. Agile team consists of Developers, Scrum Master,
Project manager, Product Manager, Business Analyst and
Quality Assurance Team. First Agile methodology starts with
Sprint planning and they pull the tasks from the backlog. From
Sprint planning, developers code the tasks in Development and
then deploy into QA servers to test their code. After peer review
from the QA team scrum master submit release and ISS team
deploy to the production servers and at the end Product owner
give a demo to the client.

Diagram Of Agile Model:
Advantages of Agile Methodology:
Here below are the advantages of using Agile methodology.
- Meets the customer or client satisfaction by giving continuous
them delivery of useful software.
- Users and team interactions are emphasized rather than
process and tools. The whole team including managers, scrum
master, Developers team and QA team interact with each other
on daily basis.
- Each component or functionality is delivered within weeks
rather than months.
- Since the whole team interacts with each other so the
communication is the key to success.
- Daily communications between developers and business users.
- Good attention to the software design and technical
excellence.
- Change of business requirements are welcome at the last
moment.
Disadvantages Of Agile Methodology:
- When new changes needs to be implement in the software. The
freedom agile gives to change is very important. New changes
can be made implemented at very little cost because of the
frequency of new increments that are produced.
- When new changes needs to be made then developers and
Quality Assurance team has very little time to code and release
it. Sometime, they only have few hours to make changes and
implement the changes.
- Unlike the waterfall or any other methodology, in agile model
team has very little time to do sprint planning.
- Suddenly changes of the business requirements can effect
testing and software can be released with a bug.
References:

http://istqbexamcertification.com/what-is-agile-model-
advantages-disadvantages-and-when-to-use-it/
http://agilemethodology.org/
https://www.cprime.com/resources/what-is-agile-what-is-scrum/
Standards
Risk, Human Resources and Stakeholders
Project Budgeting and Estimation
Scheduling and Tracking
Final ReportScheduling & Tracking ProgressDependencies
between tasks Gantt charts with WBS and MilestonesProgram
Evaluation Review Technique (PERT) Critical Path Method
(CPM) Configuration management Risk management
References
1
Figure 1
Socrates
WR 121: English Composition Online (4 credits)
Fall 2013 Section 46099 Dates: 9/22 to 12/13

Portland Community College S.E. Center
2305 S.E. 82nd. Ave. Portland, OR 97216
Figure 2
Aristotle
Instructor: James B. Pepe Phone: 971-722-3178 E-
mail: [email protected]
Office Hours: Every Monday in room 106, the Mt. Scott
building, from 3:00 to 6:00 p.m.
Note: The best way to contact me is contact me through mypcc
email, rather than leaving
a voicemail message. However, to ensure student privacy, PCC
requires all email
exchanges to be through a mypcc account.
Required Text: Writing About the World, 3rd Edition, Susan
Mcleod ed.
Recommended Text: A Pocket Style Manual, 6th Edition, Diana
Hacker
Prerequisite: Placement into WR 121 or completion of WR 115
and RD 115.

Required Software
An updated web browser (Internet Explorer, Mozilla Firefox,
Google Chrome, etc.)
Microsoft Word or OpenOffice (or at least the ability to save a
document in basic Word
format), and an updated version of Adobe Acrobat Reader.
Note: If you do not have a word-processing program, I highly
recommend that you
download the free word processing program offered by
OpenOffice.
Additional Requirements
Because this class has an online component, you will need
access to a computer with an
internet connection. You will also need access to either a DVD
player or an online video
streaming service like Hulu or Netflix because your third essay
assignment will be a film
analysis.
I. Course Description
“English Composition develops skills in analytical reading,
critical thinking, and
expository and persuasive writing” (See this link for “PCC

Course Content”). As a
student in WR 121, you will compose four essays that use a
variety of rhetorical
strategies to support a thesis. The philosopher Aristotle (384-
322 BCE) defined rhetoric
as "the faculty of observing in any given case the available
means of persuasion" (See
mailto:[email protected]
http://www.openofficedownload2011.com/
http://www.pcc.edu/ccog/default.cfm?fa=ccog&subject=WR&co
urse=121
2
this link for Aristotle’s Rhetoric). A well-structured rhetorical
argument is indeed a
balance of ethos (the expertise of the writer), pathos (emotion),
and logos (logic). Thus, a
good writer knows how to effectively balance these appeals in
his or her argument and
how to recognize imbalances in the arguments of others.
Figure Three: The Rhetorical Triangle

Ethos
Pathos Logos
II. Course Objectives
By the end of this course, you should be able to write a 1000-
word essay that clearly
states a point, supports that point with specific details,
effectively integrates MLA
Citation and follows the conventions of standard written
English. In addition, you must
demonstrate a mature command of grammar and syntax
throughout the term. The
course's evaluation objectives are as follows: (1) Three long
argumentative essays, each
written on a different topic; (2); four multiple-choice quizzes
based on grammar and
course content; (3) a 500-word time essay; (4) one 1000-word
essay; (5) and student
participation during online discussions. See Table One below
for more detail. See this

link for PCC’s Intended Course Outcomes.
Table 1: WR 121 Graded Assignments
Assignment Type
# of
Words
Due % of Grade
Definition Essay 750 Week 3 15
Comparison/Contrast Essay 750 Week 7 15
Film Analysis Essay 750 Week 9 15
1000-Word Essay 1000 Week 12 17
Weekly Discussions varies Weekly 20
500-word in-class essay 500 Week 11 6
Four Multiple-Choice quizzes N/A
Weeks 3, 6, 10
& 11
12
http://rhetoric.eserver.org/aristotle/oneindex.html
http://www.pcc.edu/ccog/default.cfm?fa=ccog&subject=WR&co
urse=121

3
III. Add/ Drop, Withdrawal, and Audit Information
Be aware of the following dates:
and receive a
refund or to select AUD (audit) for a grade option
by 10:00 p.m.)
to change grade
option between letter grade and P/NP.
Note: All students must earn a minimum grade of “C” in order
to pass the course. If you
stop participating in this class without withdrawing, you will
fail. To be eligible for
an incomplete grade, you require the following: (1) a
documented, justifiable excuse;
and (2) completion of 75% of the graded course work. For
further questions on
add/drops and withdrawals, contact the Student the Registration
Helpline (971-722-8888)
or see this link for Adding and Dropping Classes.
IV. Student Participation

Be prepared to check into the Desire2Learn server and
participate in graded discussions
throughout the week. As you can see in Table 1, the weekly
discussions account for
20% of your total grade. Web-enhanced writing courses
generally require 1-5 hours of
study time per week. If you have not already done so, click on
this link for the Online
Learning Orientation, which gives basic advice for logging in
and navigating through the
D2L environment. Because I will be grading the quality of your
posted responses, I urge
you to edit your messages before posting them into each week's
discussion forum. The
criteria for graded assignments will be noted as such in each
week's module. All posts
and responses need to be posted to the discussion board by
11:59 p.m. every Sunday.
New assignments will be posted each Monday by 8:30 a.m.,
Pacific Standard Time.
OpenOffice attachments
through the course “Dropbox” by the dates indicated in the
course calendar.
When you submit your essay, use your name and the number of

the assignment as
part of the document's file name, (e.g., smith_definition_essay
or smith_essay1).
three essays for a
possible higher grade; you cannot rewrite essay number four.
Your optional
rewrite must be submitted with the original essay and is due by
finals week. All
rewrites must be a substantial improvement over the original
essay; correcting a
few grammar and spelling errors does not count as a serious
revision. See Table
Two below for more details on essay grading criteria
http://www.pcc.edu/resources/academic/standards-
practices/documents/G301GradingGuidelinesJun09.pdf
http://www.pcc.edu/registration/dropping.html
http://www.distance.pcc.edu/orientation/
http://www.distance.pcc.edu/orientation/
4
The tardy essay will

then lose an additional 10% for each week it is late (this
includes weekends).
You cannot rewrite late essays. You cannot submit Essay IV
late.
zero points.
Discussions cannot be made up. Missed quizzes cannot be made
up either.
share in your essays
and online posts. I am required by state law to immediately
report suspected
instances of child abuse to Oregon CPS.
V. Instructor Facilitation
In his Apology, Socrates (469-399 BCE) said, "I am that gadfly
which the gods have sent
to sting you Athenians [to debate]." This is my role as your
facilitator: to stimulate each
module's discussion forum with my own questions and
observations. In certain modules,
I might require you to respond to a fellow classmates' post.
I usually answer e-mailed questions in less than one day and
return graded essays within

7 days. You will receive consistent feedback from me in the
following ways: (1) When
you submit an essay to me as a Word document, I will embed
numerous grammar and
composition comments within the essay and return it to you as
an attachment; (2) at the
end of each module, I will grade your online posts and send
submit written comments
detailing the grammatical, rhetorical, and logical strengths and
weaknesses of your post.
My face-to-face office hours are 3:00 - 6:00 p.m. every Monday
in the Faculty Office
(Mt. Scott, Room 106, PCC Southeast Center). During this
time, if I am not meeting
with students, I will be available online to offer advice and
feedback on assignments. If
you want to interact with me in real time during my office
hours, you can contact me with
the Pager tool, which is next to the Mail tool in the upper right-
hand corner of the main
course page. Upon request, I can also conduct a real-time
conference (text or voice)
through mypcc Gmail’s chat function. Unlike your participation
in the graded discussion

forums, your participation in these online interactions is
optional, but I intend to confer
with you at least twice this term. In addition, I will upload
short audio lectures each
week. If you need help with a grammar principle or essay topic,
contact me immediately,
and I will respond as soon as possible.
You are responsible for the technical requirements of this
course. Not being able to open
attachments or receive messages is an unacceptable excuse for
late or unfinished work. If
you are having technical difficulties, contact the student support
desk.
VI. Graded Posts
Your graded online posts are a direct extension of the writing
process in an online WR
121. To understand how your responses will be graded, you
must understand the
difference between a "reader-centered" and a "writer-centered"
message. Paul V.
Anderson, author of Technical Communication: A Reader-
Centered Approach, argues
that a "reader-centered" communicator understands that
effective rhetoric is a

http://www.pbs.org/empires/thegreeks/
http://www.pcc.edu/about/distance/resources/
5
collaborative activity between writer and reader. This kind of
rhetor will constantly
evaluate a reader's likely intellectual and emotional reaction to
each line of a text,
whereas a "writer-centered” poster cares little for the needs of
his or her audience. This
is why many unmoderated Web discussions are a soap-box
wasteland of writer-centered
monologues and meaningless interjections. Your posts will be
graded with the following
rubric:
Table 2: WR 121 Discussion Forum Grading Rubric* Points
Responded to several questions and contributed well-supported,
mature, and
relevant insights to the ongoing debate; demonstrated strong
rhetorical and
grammatical skills.
3

Responded to the module's required question or questions and
demonstrated not
only knowledge of the topic but also some rhetorical and
grammatical skill.
2
Responded to the module's requirements, but in only a cursory
fashion, with
little to no support in his or her post; otherwise, if the post's
content was
adequate, it still contained too many errors in grammar,
spelling, or logic
(especially logical non sequiturs).
1
No participation . 0
VII. Online Etiquette
Courtesy to your fellow classmates is mandatory. Even though
this is an on-line
environment, you must still follow the Student Code of
Conduct. Note the following
rules for online etiquette:
Never engage in an ad
hominem attack (which literally translates to "argument toward

the man"). When
disagreeing with a classmate, you will always use polite and
constructive
language. If you ignore this rule, I will bar you from the
discussion forums.
is a formal writing
course, not a chat room. For the same reason, do not write in
all uppercase letters.
VIII. Essay Format
All four of your essays must be typed, double-spaced, and
follow Modern Language
Association (MLA) guidelines (see pages 144-162 in A Pocket
Style Manual for
examples of this format.) Type your essays using 12-point serif
fonts such as Times
New Roman. Please do not use sans-serif fonts such as Arial or
Calibri. See Table Two
below for details on essay grading criteria.
Note: A Works Cited page does not count toward an essay’s
minimum page length or
word count. In addition, whenever you quote or paraphrase
from an essay in Writing

6
about the World, you must follow the MLA guidelines for citing
from an anthologized
text. See page 139 in A Pocket Style Manual for more detail.
IX. Grading
Grades are based on a percentage of points possible: 90% or
more is an A, 80-89% is a B,
70-79% is a C, and 60-69% is a D. Borderline final grades will
be influenced by active
participation and improvement. Late essays will be penalized
for 10%. The tardy essay
will then lose an additional 10% for each week it is late. You
can neither make up
missed quizzes nor hand in Essay IV in late. All students must
earn a minimum grade of
“C” in order to pass the course. See this link for further
reference on PCC’s grading
guidelines.
Table 2: WR 121 Essay Score Sheet*
Score #: 5-6 = needs improvement, 7 = minimal, 8 = good, 9-10
= excellent

#
Introduction: A strong introduction hooks the reader's interest
and orients him or
her to the essay's main topic. An average introduction provides
some orientation,
but it lacks the means to fully engage and prepare the reader. A
weak introduction
is often a choppy sequence of disconnected statements.
Thesis: The essay has a clear thesis with supporting ideas that
forecast the structure
of the argument. If the essay has an implied thesis, then the
implication should be
obvious by the essay’s conclusion. Lower-range essays either
have no thesis, a
vague thesis, or a tacked-on and disconnected thesis.
Essay Structure: The argument--in toto--should be a balanced
exercise in ethos,
pathos, and logos. The supporting ideas should progress
smoothly and logically
from one well-balanced segment to the next. The writing
should be vivid and
compelling. Mid-range essays are often well structured and

provide adequate
examples--but they lack the rhetorical power and exhaustive
support demonstrated
by their stronger kin. Disorganized lower-range essays often fall
short of engaging
the reader intellectually or emotionally.
Paragraph Structure: Each coherent and unified body paragraph
should contain a
topic sentence supported by concrete examples with effective
transitions between
sequential ideas. Weaker paragraphs often lack the following:
unifying topic
sentences, smooth transitions, or adequate support.
Evidence (20 possible points): The essay's claim should be
supported by relevant,
arguable, logical, and properly cited evidence, thus informing
and persuading a
practices/documents/G301GradingMarch2011.pdf
practices/documents/G301GradingMarch2011.pdf

7
Table 2: WR 121 Essay Score Sheet*
Score #: 5-6 = needs improvement, 7 = minimal, 8 = good, 9-10
= excellent
#
hypothetically skeptical reader. Lower-range essays often fail
to provide enough
evidence, address possible counterarguments, or use proper
citation.
Critical Thinking: The argument should demonstrate impressive
critical thinking
skills, originality, and depth.
Grammar and Mechanics: Spelling, grammar, capitalization,
punctuation--each
well-structured sentence should demonstrate a strong
understanding of the usage
rules for these four areas.
Word Choice: Strong vocabulary and syntax should contribute
to the essay's
argument, rather than detracting from it with wordy and
awkward constructions.

Conclusion: The conclusion should summarize the argument,
creatively restate the
thesis, and invite deep reflection or, perhaps, a call to action.
Strong writers often
provide closure by referring to an example, fact, metaphor, or
statistic mentioned in
the introduction. Lower-range conclusions fail to restate the
thesis or repeat the
thesis verbatim--or introduce tangential and disconnected ideas.
Style: The nuanced writing style exhibits confidence through
the use of metaphor,
simile, or poetic word choice (5 possible bonus points)
FINAL SCORE : 90% or more is an A, 80-89% is a B, 70-79%
is a C, and 60-69%
is a D.
Note: You have the opportunity to rewrite one of your first
three essays for a possible
higher grade. All rewrites must be handed in on the night of the
final and stapled to the

original graded essay. All rewrites must be a substantial
improvement over the original to
receive additional credit. Cleaning up just a few grammar
mistakes will not count. You
cannot rewrite Essay IV. As for the final timed essay, you will
have three hours to write
this and submit it. I will release the topics for this essay during
finals week.
X. Accommodations
If you require specific instructional accommodations, please
notify me during the first
week of the term. Students who have a documented disability
and require a classroom
adjustment or accommodation should contact Disability
Services and provide the
Approved Academic Accommodations letter to the Instructor.
See this link for
8
contacting Disability Services.
XI. Equal Educational Opportunity

All students shall be assured equal educational opportunity and
treatment. During the
course of this term, we will be discus several challenging and
controversial topics. If you
cannot address these subjects, you must make arrangements
with me ahead of time to do
an alternative assignment.
XII. Plagiarism
Students are required to complete this course in accordance with
the Student Rights and
Responsibilities Handbook. “Dishonest activities such as
cheating on exams and
submitting or copying work done by others will result in
disciplinary actions
including but not limited to receiving a failing grade”
(Academic Standards
Handbook). For further details, see the Academic Integrity
Policy.
Note the following Merriam-Webster's Dictionary definition of
“plagiarize”: “[T]o steal
and pass off (the ideas or words of another) as one's own: use
(another's production)
without crediting the source.” Plagiarized papers will receive a

failing grade of zero
points out of a hundred; furthermore, I do not allow plagiarized
essays to be rewritten.
In addition, I am required to report all plagiarized assignments
to the SE Center’s
division dean of Arts and Sciences. Language and ideas in
papers should be your own or
credited using the Modern Language Association (MLA) rules
on integrating sources.
Contact me if you have any questions about proper citation.
_____________________________________________________
__
Module One (Begins September 22)
Grammar and Composition
ecognizing Clear Pronoun Agreement

Organization
Writing about the World
-14)
Assign Definition Essay
Module One online posts due by September 28, 11: 59 p.m.
_____________________________________________________
________________
Module Two
http://www.pcc.edu/resources/disability/
http://www.pcc.edu/about/policy/student-rights/student-
rights.pdf#academic-integrity
9
43)

g Run-On Sentences
Module Two online posts due by October 5, 11: 59 p.m.
_____________________________________________________
________________
Module Three
-Tung, "On the Correct Handling of Contradictions
Among the People"
(76)
Online Lecture: “Induction, Deduction, and Logical Fallacies”
Definition Essay Due by October 12, 11: 59 p.m.
Quiz One: Grammar and Course Content due by October 12,
11:59 p.m.
Module Three online posts due by October 12, 11: 59 p.m.
_____________________________________________________
________________
Module Four

ndas K. Gandhi, “Satyagraha” (206)
“Paragraph Coherency”
Module Four online posts due by October 19, 11: 59 p.m.
_____________________________________________________
________________
Module Five
-Restrictive Elements
Module Five online posts due by October 26, 11: 59 p.m.
_____________________________________________________
________________
Module Six
Symbolic Analysis

Online Lecture Notes
10
“Friedrich Nietzsche on ‘Apollonianism and Dionysianism’ ”
Quiz Two: Grammar and Course Content due by November 2,
11:59 p.m.
Module Six online posts due by November 2, 11: 59 p.m.
_____________________________________________________
________________
Module Seven
Film Analysis
Comparison/Contrast Essay due by November 9, 11:59 p.m.
Module Seven online posts due by November 9, 11: 59 p.m.
Assign Film Analysis Essay
_____________________________________________________
________________

Module Eight
heses
Module Eight online posts due by November 16, 11: 59 p.m.
_____________________________________________________
________________
Module Nine
a: Enuma Elish

Assign 1000-Word Essay
Film Analysis Essay Due by November 23, 11: 59 p.m.
Module Nine online posts due by November 23, 11: 59 p.m.
_____________________________________________________
________________
Module Ten
Paul Sartre, “Existentialism” (700)
Module Ten online posts due by November 30 11: 59 p.m.
11
Quiz Three: Grammar and Course Content due by November 30,
11: 59 p.m.
_____________________________________________________
________________
Module Eleven
Quiz Four: Grammar due by December 7, 11: 59 p.m.
Student Conferences

_____________________________________________________
________________
Finals Week (Begins December 9)
The following assignments are due by December 14, 11: 59 p.m.
-word timed essay
-word essay)
Note: Your instructor reserves the right to change this syllabus
as needed.
---------------------------------------------------------------------------
---------------------------------
Additional Resources
companion site has
online practice quizzes in grammar)
Grammar and Writing
http://bcs.bedfordstmartins.com/pocket6e/#t_697475____
http://grammar.ccc.commnet.edu/grammar/index2.htm

ISQA 439 Agenda : Oct 1- 2014
–
– 5
1, A2; B1, B2 etc..
– 07:00
– 07:30
– 09:00
Agenda for Oct 1, 2014
– Sign in
st – First one on the list
-
https://cb.hbsp.harvard.edu/cbmp/access/30672719
– Framework discussion

– Up to Two teams present each week on Two
different
cases/topics.
cases for discussion
minimum of 2 questions to each team that is presenting and
Hand in
the Case Analysis Work Sheet
- 5 people per team
Value of working in a Team Environment
– Push your self
- Lead and Follow
Feedback from the Industry
2014
- On current and emerging skills
employers are looking for in new hires
- Brett Joyce, President, Rogue Ales
- Curt Bludworth, VP, Human Resources, Tektronix
- Tauna Dean, Senior Manager, Talent Acquisition, adidas

America
- Greg Stokes, Director, HR, Energy Trust of Oregon
What is a Perfect Candidate
organization
Specifics -
ess acumen

Interview Questions
successfully and not successfully
is your brand?
Expectation Team Presentation & Write up
s
– 25 minutes
-up: Single voice; 8 to 10 pages; Not cut & paste
from 3 different team members write-up
– 1/2 page max
– 1 page max
ework application
Presentation – Visual Impact

-Sub
Presentation - Content
Exclusive
Ask the question
Leading Practitioners
Thought Leaders
Framer
DoerFollower
A
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p
li
ca
ti

on
o
f
F
ra
m
ew
or
k
Low
High
High
Integration of Accumulated Knowledge
Case Analysis Worksheet
he problem

D O E S I T M A T T E R ?
Purchase & Supply
0
1
2
3
4
5
6
7
8
9
10
6/29/2007 7/11/2008 6/19/2009 6/24/2010 10/14/2011 9/21/2011
9/28/2012
Original iphone iphone 3G iphone 3GS iphone 4G iphone 4GS
iphone 5 iphone 5S and
5C
Initial 3 days Launch

Units in million
Iphone 5 – The Biggest Release
iPad2
Fewer Chips Inside IPhone 5
Qualcomm QCOM -0.93%, which has a big lead in delivering
chips that work with the fourth-generation cellular technology
LTE, as expected provided its MDM9615M communications
chip–the most important component in the device after the
Apple-designed A6 processor–as well as two other radio-related
chips found in the handset taken apart by iFixit in Australia.
Apple, which often uses multiple sources for the ommodity
data-storage chips needed for its devices, turned to Korea’s
Hynix Semiconductor 000660.SE -1.47%for the NAND flash
memory in the handset opened up by iFixit. Elpida, which is
based in Japan, provided the dynamic random-access memory,
or DRAM.
Skyworks
Solution
s SWKS -3.12%, a company based in Woburn, Mass., was
selected for amplifier chips in the iPhone 5,

iFixit found. Its shares were up 4% on Friday. So was Avago
Technologies AVGO -2.56%, of San Jose, Calif., whose
shares rose 6%, and Triquint Semiconductor TQNT -4.27%,
based in Hillsboro, Ore., which rose about half a percentage
point.
As expected Cirrus Logic RUS -4.24%provided an audio chip.
The Texas-based company is taking over a slot that might
have gone to Audience, whose stock plunged earlier in
September after the company disclosed it did not expect its
technology to be used in the next iPhone.
Murata, based in Japan, supplied the module that allows the
iPhone 5 to connect to Wi-Fi networks. That’s a slot that is
frequently won by Broadco BRCM -1.64%; that Irvine, Calif.,
company did place a touchscreen controller chip in the
iPhone 5, however Texas Instruments also TXN -1.07%supplied
a touchscreen chip.
Update: it turns out the Murata module likely includes a
Broadcom Wi-Fi chip, according to the research firm
Chipworks.

IPhone 6 & 6 Plus
Supply Chain Management
It is about delivering the right product/service at the right time,
right quantity, right price to the right customer
Oct 1, 2014Confidential
20
erating the flow of materials
sourcing, production process,
distribution, delivery, reverse logistics, information system and
financial supply chain
while optimizing the costs and risks and meeting federal laws,
regulations and
company policy

Plan
Source Make Delivery
Suppliers Customers
Information System
Reverse Logistics
$$
Supplier
Customer
Federal Laws & Regulations; Company Policy; Risk
Management
Procurement/Strategic Sourcing Approach
21

Current Spent,
Business Environment
Analysis
Supply Market,
Total Cost Ownership
Benchmark
Sourcing Strategy
Development
Supplier Selection,
Negotiation,
Contract Implementation,
Performance Management
Project Management
Change Management
What is bought & Where
How you buy it
Do we really need this part/service

Who owns the relationship
What is the decision process
Back door selling ?
Transactional vs. strategic focus
Who offers What
How much does it cost to provide
those goods or services
How much does it cost to recycle
and replace
Use Porter 5 forces to evaluate
seller and buyer leverage
Who are the suitable suppliers
Where to buy and consider
demand & supply situation while
optimizing risks & costs
Supplier financial strength
Supplier past performance
Payment terms and price
Products specification or service level
Geographical coverage and support
Risk mitigation and contingency plan
Contract and performance monitoring plan

For Public Sector – Best value, service excellence
For Private Sector – Top line growth, free cash flow, margin
improvement
It is about getting the best products or services at the best value
considering risks and costs
Spend Data Analysis
22
company
category

s by business units and category
engineering services, etc…
cost savings, cost
avoidance, free up cash flow, risk mitigation, service
improvement
Category Management
23
duce a logical category
structure

ive and
not transactional
Spend Data
Analysis
Define Suitable
Category
Indirect
(Below the line
View as expense)
Direct
(Above the line
Impact COGs)
Significant change management
-Senior Management buy in

-Effective cross functional &
Collaborative team work
-5% reduction in COGs, what is the
impact to EBITDA?
Travel & Event
-IT & Telecomm
-Marketing & advertising
-Printing
-Facilities
-Temp Agency
Best Practices - Procurement
24
- Combat fear of change
-pass procurement team and sell directly to users
during negotiation

does our quality measure up, what is your budget, who are the
decision makers ? ”
approval process
pricing
may not be best
borrow
- Negotiated discounts for accelerated
payment
- 2%/10/net30; Sliding scale on actual
payment date
against invoice

$3,000 per transaction
mplified PO process and payment approval under $10,000
per transaction
order request to order fulfillment or point
solution in E Procurement, B2B, or Web solution into ERP
Small
Simplified
Complex
A
u
th
or
it
y
L

ev
el
Time
L
H
H
Best Practices - Contracting
25
– Legal binding
- Uncertainty in outcome or new
technology
– Need historical data to set baseline
– Focused on “what” not “how”; Suppliers decide
how

– Incentives for suppliers to deliver better
results
template
contract template or statement of works if it is
appropriate
contract type
conditions” for “enterprise wide” except it
can be waived or modified by company officers
- Transportation Agreement –
Carrier Safety rating – Only satisfactory
– “Solely” Vs “Share liability
based on contributing level”
ithin an enterprise system to keep track of
existing contracts: Monitor
financial obligations and legal risks
performance, schedule, cost

processes
fact based comments on supplier
performance and negotiation experience
contracting knowledge center” and
strategic focus
Buyer’s risk
Su
p
p
li
er
’s
ri

sk
Cost Plus
T&MPerformance
Fixed Price
L
H
H
Public Sector
26
– Federal Acquisition Regulation

bureaucracy in
government procurement activities
-Mart and
Microsoft
– US General Service Administration established by
President Harry
Truman, 1949
al acquisition service
Risk Management
27
include cost, schedule & performance with an
understanding in probability of failing and the consequences of
failing

diligence process is a must
- How much risk can you tolerate; No
right/wrong
– Plan for risk
– Financial loss, breach of contracts,
regulations, show stoppers
– Political, reputation, creditability, competitive
advantages
Accept Minor
echnology, Structure, Policy, Culture
ent, testing and monitoring
Naive

Formalized
Managed
Emerged
Optimized
L
ev
el
o
f
R
is
k
M
it
ig
at

io
n
Organizational Readiness
Critical
Minor
Major
Major
Im
p
ac
t
Likelihood
L
H

H
L
H
H
KEL673
©2012 by the Kellogg School of Management at Northwestern
University. This case was prepared by Joanna Wilson under the
supervision of Professor Russell Walker. Cases are developed
solely as the basis for class discussion. Cases are not intended
to serve
as endorsements, sources of primary data, or illustrations of
effective or ineffective management. To order copies or request
permission to reproduce materials, call 800-545-7685 (or 617-
783-7600 outside the United States or Canada) or e-mail
[email protected] No part of this publication may be

reproduced, stored in a retrieval system, used in a spreadsheet,
or
transmitted in any form or by any means—electronic,
mechanical, photocopying, recording, or otherwise—without the
permission of
the Kellogg School of Management.
RUSSELL WALKER
Nokia’s Supply Chain Management
On March 17, 2000, a power surge caused a fire at the Royal
Philips Electronics (Philips)
plant in Albuquerque, New Mexico. The plant was a key
supplier of semiconductor chips used in
cell phones for both Ericsson and Nokia Corporation; together
they received 40 percent of the
plant’s chip production. At the time, both companies were about
to release new cell phone
designs that required these chips.1 Although “smaller than the
nail on a baby’s pinkie,” the chips
were of utmost importance to the phones’ functionality.2
The fire at the Philips plant lasted less than ten minutes before
workers and sprinklers put out

the flames. It was clear the fire had destroyed a certain stock of
chips, but the extent of the
damage to Philips’s “clean rooms”—where the entire inventory
of chips was stored, due to their
fragile composition—was unknown. In its initial reports of the
fire to Ericsson and Nokia, Philips
relayed it would take around a week before production would
return. News traveled quickly at
Nokia, where managers actively dealt with the supply
disruption, setting up a series of daily alerts
and discussions. At Ericsson, the technician who received the
initial report of the fire from Philips
failed to pass along the information to his superiors. Philips
soon realized it had underestimated
how much damage the clean rooms had sustained and reported
to Ericsson and Nokia that the
process to resume normal operations would take six weeks.
Nokia’s resources were waiting and
ready to spring into action to locate alternative supply sources,
whereas Ericsson was unprepared
for the news and had been depending on a quick Philips
recovery. As a result, while Nokia’s new
phone launch continued, Ericsson had to delay the launch of its
new phone and its market share
suffered.

Philips and the Cell Phone Market
In 2000 Philips’s semiconductor division was manufacturing
about 80 million chips every
day. Eighty percent of the mobile phones sold worldwide used
Philips chips.3 Apart from mobile
phones, consumer markets were demanding many other
electronic devices that required the chips,
such as new cars, digital cameras, and mobile memory devices.
Owing to this burgeoning
demand, surplus capacity was scarce.
1 Yossi Sheffi, “Building a Resilient Organization,” The Bridge
37, no.1 (2007): 30.
2 Almar Latour, “Trial by Fire: A Blaze in Albuquerque Sets
Off Major Crisis for Cell-Phone Giants,” Wall Street Journal,
January
29, 2001.
3 Amit S. Mukherjee, “The Fire That Changed an Industry: A
Case Study on Thriving in a Networked World,” in The Spider’s
Strategy: Creating Networks to Avert Crisis, Create Change,
and Really Get Ahead (Upper Saddle River, NJ: FTPress, 2008),
3.

For the exclusive use of T. Nguyen
This document is authorized for use only by Thu Nguyen in
Purchasing SCM Fall 2014 taught by McElhinney & Wong
Portland State University from September 2014 to December
2014.
NOKIA’S SUPPLY CHAIN MANAGEMENT KEL673
2 KELLOGG SCHOOL OF MANAGEMENT
A steady supply of chips was critical to cell phone
manufacturers, as their customer base
often replaced phones for the latest or most fashionable model.
Suppliers increasingly relied on
the replacement market, which meant speed to market became a
critical sales factor.4 This was
especially true in an industry with short product cycles of just
eighteen months, where each shelf
week helped the company recoup research and development
costs.5

During this time, cell phone companies believed the newest
craze would be converged
devices with 3G networks that promised wireless mobile access
in combination with basic phone
functions. Companies invested billions in this prospect, creating
the supportive infrastructure,
buying 3G licenses, and investing in new product design. These
heady investments seemed
certain to return big profits, as Internet traffic was reportedly
doubling every one hundred days
and there was strong growth in worldwide mobile cell phone
penetration.6
The Nokia Corporation
In 2000 Nokia was the world’s leader in cell phone sales and
the largest corporation in
Europe by market capitalization. The 130-year-old company had
started in wood pulp production
but by 1999 was a leading electronics firm, with $19.9 billion in
net sales and 60,000 employees.
It had developed a strong brand synonymous with price
accessibility and mass appeal for its cell
phones, which accounted for 70 percent of its revenue.7 It also
had a small network sales division

that accounted for another 25 percent of revenue.
The transformation from a “stodgy Finnish conglomerate,
making everything from rubber
boots and cables to lavatory paper and televisions,”8 to the
Nokia of today began in the 1970s,
when leadership invested profits into new technology and
electronics such as radiotelephones.
When Ericsson’s Nordic Mobile Telephone network (the first
international network) went up in
the early 1980s, Nokia already had some start in basic hardware
manufacture; it launched one of
the first consumer mobile phones in 1984, the Talkman.
When the Soviet Union collapsed in the early 1990s, so too did
trade channels for Nokia’s
traditional product line. This was just as demand for mobile
handsets was increasing. However,
Nokia did not have the capacity to expand production until the
head of the handset division,
Jorma Ollila, channeled new resources into the division and one
year later as chief executive, “bet
the company on becoming a mobile phone pure-play.”9 In 1999
Nokia sold 128 million phones.

The Ericsson Corporation
Ericsson was another large, old Scandinavian firm, based in
Sweden and founded in 1876 as a
telephone manufacturer. In 2000 it had 100,000 employees and
net income from operations of
4 Christopher Brown-Humes and Dan Roberts, “Ericsson Nears
Surrender in Handset Battle,” Financial Times, January 26,
2001.
5 Caroline Daniel, “Ericsson Faces More Than Just a Test of
Fire,” Financial Times, July 24, 2000.
6 “Beyond the Bubble,” Economist, October 9, 2003.
7 Latour, “Trial by Fire.”
8 “A Finnish Fable,” Economist, October 12, 2000.
9 Ibid.
2014.

KEL673 NOKIA’S SUPPLY CHAIN MANAGEMENT
KELLOGG SCHOOL OF MANAGEMENT 3
$734 million, with net sales of $25 billion. While Nokia
dominated the handset business, Ericsson
excelled in network sales.
Ericsson had perpetually struggled to keep pace with its
telephone manufacturing
competitors, going head-to-head early in the twentieth century
with AT&T. However, by mid-
century it had expanded its role in telecom technology and
revolutionized landline networks in
the 1950s and again in the 1970s, before pioneering early
cellular networks in the 1980s. At the
start of the twenty-first century, the company was by “far the
world’s dominant supplier of
mobile networks,” with 70 percent of sales coming from the
network division.10
Nevertheless, Ericsson continued to persevere in telephone
production, now mobile, despite

constant criticism that the firm misread consumer markets by
focusing on uncompetitive upscale
models. Although the company did experience sales growth in
1999, its handset sales, at $43.3
million, were still well below those of Nokia. Margins were also
slim at 1 to 2 percent for
handsets, while its network business continued to experience
“rapid sales growth and strong
margins.”11 The opposite was true for Nokia, whose margins
were 24 percent for hardware while
its networks were “weak by comparison, with lower growth and
falling margins.”12 Between the
criticism and the margins, Ericsson had little breathing room in
the fast-moving handset market.
New products were needed to quell the critics, and Ericsson
hoped the first foray into Bluetooth
technology would do just that.
Post Fire: The Nokia Response
A few days after the fire, a supply manager noticed a flag in the
system about chip inflow
from Philips. Following a pre-established process, word
eventually reached component
purchasing manager Tapio Markki.13 The anomaly was

unresolved until a call from Philips on
March 20 detailed the news about the fire and the estimated
week hiatus. Markki sent word of the
fire up the chain to Pertti Korhonen, senior vice president of
operations, logistics, and sourcing in
Nokia’s mobile handset division. Korhonen then implemented a
series of tracking applications in
the system for the five components Philips made at the plant
and began placing daily, instead of
weekly, calls to Philips about inventory.14
On March 31, Philips phoned Nokia to explain that the damage
to the clean rooms was worse
than anticipated, and it would be weeks before it could restart
production. Some quick
calculations at Nokia determined the shortage could halt
production on about four million
handsets and affect 5 percent of its annual production.15 The
prospect was unacceptable, and a
team of thirty, including Korhonen and CEO Jorma Ollila,
sprang into action from several angles.
First, engineers considered whether a chip redesign would allow
Nokia to access alternative
suppliers. The team then looked into new suppliers for three of
the five components available

independently of Philips—two suppliers in the United States
and Japan responded with the
10 “Ericsson Gets Alarm,” Financial Times, October 23, 2000.
11 “Nokia/Ericsson,” Financial Times, April 29, 2000.
12 Ibid.
13 Mukherjee, “The Fire That Changed an Industry.”
15 Robert B. Handfield et al., “How Do Supply Chain Risks
Occur? A Managerial Framework for Reducing the Impact of
Disruptions
to the Supply Chain,” The Supply Chain Resource Cooperative
Articles Library, January 18, 2011,
http://scm.ncsu.edu/public/risk/
risk3.html.
2014.

requested inventory within five days. Finally, under pressure,
Philips secured more inventories
from the Netherlands and Shanghai plants after expanding
production. By the end of the global
effort, Nokia had its chips and as a bonus, the engineers had
devised a way to boost production so
that an additional two million chips could be made when the
plant came back online.16
This effort successfully resulted in Nokia avoiding any
production loss because of supply
chain disruption, an event which years earlier had cost the firm
millions.17 Owing to the previous
setback, Ollila had “instituted the practice of aiming executive
hit squads at bottlenecks and
giving them authority to make on-the-ground decisions.”18
After the fire, this practice worked in
tandem with other company institutions, such as a well-
functioning input monitoring system and
a clear channel of communication between all personnel levels.

As a result, the fire was a minor
hiccup in 2000.
Post Fire: The Ericsson Response
Ericsson did not know about the fire until a low-level technician
received Philips’s initial
message. One-week delays were common, and “the fire was not
perceived as a major
catastrophe,” according to an Ericsson spokeswoman.19 When
Philips phoned technicians again
on March 31 to acknowledge the previous timeline was too
idealistic and that the short-term
supply of chips was uncertain, the top brass continued to remain
in the dark.
It was early April before anyone on the executive team knew
about the fire. By then, the
outlook was bleak because Ericsson had previously moved to
streamline its supply chain by
making Philips its sole provider.20 Moreover, Nokia had
already commandeered any extra supply
of chips that existed. When Ericsson finally announced the loss
to the market, shares fell more
than 11 percent.21

Repercussions
The component shortage at Ericsson helped delay the launch of
the first mobile phone to
feature Bluetooth technology, the T36. Company officials
estimated $400 million in direct
revenue losses, which insurance would somewhat cover.22
However, the continued muddle in the
mobile phone division was obvious, and the new phone had lost
critical shelf time. Although
Ericsson adjusted its shipping configuration to mitigate future
shortages, analysts agreed the
continued endeavor in mobile handsets was floundering.
By the end of October, Ericsson had already lost 3 percentage
points in global market share to
Nokia. By the end of the year, Ericsson had to scrap the T36 for
the mass market, citing too short
16 Ibid.
17 During the Christmas sales season in 1995 there was a parts
shortage that left network operators and customers without new
phones.

19 Ibid.
20 Roger Eglin, “Can Suppliers Bring Down Your Firm?”
Sunday Times, November 23, 2003,
http://business.timesonline.co.uk/
tol/business/career_and_jobs/senior_executive/article1022636.e
ce.
21 Clare MacCarthy, “Ericsson Handset Side Hit by Fire,”
Financial Times, July 22, 2000.
2014.
of a market life. The company reworked it into another model

that came out in 2001, the T39—
more than half a year after it had initially announced the T36.23
The losses were astounding in the
annual report, with nearly $1.68 billion lost in the company’s
mobile phone division, which the
company attributed to component shortages.24
Like Ericsson, Nokia also subsequently found secondary
suppliers for many of its
components. Unlike Ericsson, there was no mention of
component shortages or the fire in Nokia’s
annual report. Despite the preparedness with which it handled
the fire, Nokia continued
enhancing its supply chain operation by installing dynamic
systems to track major shipments of
its suppliers, establishing a thorough risk management
assessment for each of its major suppliers,
and creating contingency plans for a variety of crises.25
The Bubble Bursts
The telecom bubble more or less coincided with and was largely
a consequence of the larger
dot-com bubble, bursting in mid- to late 2000. The telecom
industry experienced bankruptcies,

fraud, and destruction of shareholder value on a massive scale,
in part because investments were
based on incorrect predictions about the growth of the Internet
and accompanying goods and
services.26 As mentioned above, some sources believed Internet
traffic was doubling about every
hundred days—but in reality its growth was far less striking,
doubling every year between 1997
and 2003. Growth in worldwide mobile phone penetration also
peaked in 1999 at 52 percent,
falling abruptly in 2001 to 29 percent. Companies had invested
billions in fiber-optic networks,
3G spectrum, and highly sophisticated converged devices,
forecasting quick returns from
consumers demanding the newest replacement phones. In fact,
many cell phone manufacturers
thought that 3G would be a quick fix to the slowing market,
which would necessitate that
consumers update their handhelds for the fastest access to a
mobile Internet.
However, cell phones at the time were clunky, had small
screens, and failed to utilize the
Internet in an appealing way. As one analyst at Dow Jones said,
“Are there really that many

people who want to surf the web on a cell phone’s two-inch
screen?”27 Moreover, the telecom
bubble and 9/11 had stalled consumer markets, and in some
parts of the world companies still
needed to invest in more 3G licenses and networks to offer
quality coverage. It would be some
time before companies would see a return on these heady
investments, with 3G networks and
useful cell phone designs finally mainstream by 2007.
Post Bubble: Ericsson and Nokia
The bubble showed up at Ericsson in early 2001, when the
company laid off around 20
percent of its workforce and outsourced its cell phone
production. By April 2001, Ericsson was
done with independent manufacture of mobile phones and had
created a 50/50 venture with Sony
23 “Ericsson Gets Alarm.”
24 Sheffi, “Building a Resilient Organization.”
25 Handfield et al., “How Do Supply Chain Risks Occur?”
26 “Beyond the Bubble.”
27 Michael Rapoport, “In the Money: Now It’s a Wireless

Bubble That’s Popping,” Dow Jones News Service, July 27,
2000.
2014.
that became Ericsson’s new production shop. By 2009, the
Sony-Ericsson brand was the fifth
largest producer of mobile phones by sales, with 4.5 percent of
market share—down from 7.6
percent in 2008.28
Telecom eventually recovered from the bubble, before again
facing slower demand brought
on by the global recession in the late 2000s. In 2010 Ericsson

was a much smaller company, at
82,500 employees with plans for further reductions. Net sales
were stagnant in 2009 at $29
billion, and operating income dropped 65 percent year-on-year
to $834 million.
Nokia weathered the telecom bubble better than its competitors
by anticipating the downturn;
it slowed hiring, shelved new product development, and
cheapened expenses by outsourcing
production.29 Although there were layoffs, they were not as
significant. As of 2010, the company
had more than 123,000 employees with net sales of $58.7 billion
(down 19 percent from 2008)
and an operating profit down 76 percent year-on-year to $1.6
billion. Despite these less-than-ideal
figures, the company had grown considerably since 1999 and
had continued to maintain its
position as a sales leader, with a 2012 market share of 22.5
percent. It had lost much of its market
share to Samsung in recent years (the maker of the Android
phone), which led with 25.4
percent.30
Supply Chain Risk

Nokia’s ability to manage a supply chain disruption with
alacrity and flexibility demonstrated
to its shareholders and the public its competency in not only
supply chain management but also
operational risk management. As was obvious with Ericsson,
however, an insufficient response to
a disruption is costly, and hazard insurance may only cover the
immediate loss of inventory and
physical assets and not total revenue loss or brand damage. As
globalization allowed for truly
worldwide supply chains, disruptions were more likely for
myriad reasons: border issues,
terrorists, natural disasters, and labor disputes. In fact, natural
disasters had grown increasingly
more expensive since the 1960s, with their cost having risen
tenfold.31 In effect, it is important for
companies to consider the threats posed to supply chain
disruption and their associated costs in an
operational risk frame.
A typical drop in the share price after negative supply news is
about 8 percent in the first two
days, which is a greater drop than that caused by either a delay
in a new-product launch (an

average of 5 percent), negative financial news (3 to 5 percent),
or IT problems (2 percent).32
Moreover, as Ericsson experienced, the delay of a new product
may accompany supply chain
disruption when global capacity for an input is scarce. The
impact is not limited to the short term,
however, as operating income, return on sales, and return on
assets are negatively affected for
months—even years—afterwards.33
28 Vincent Chang, “Top-5 Mobile Phone Vendors Lost Market
Share in 2009,” Cellular-News, February 23, 2010,
http://www.cellular-news.com/story/42084.php.
29 Janet Guyon and Paola Hjelt, “Nokia Rocks Its Rivals,”
Fortune, March 4, 2002.
30 “Samsung Overtakes Nokia in Mobile Phone Shipments,”
BBC News, April 27, 2012,
http://www.bbc.co.uk/news/business-
17865117.
31 Eglin, “ Can Suppliers Bring Down Your Firm?”
32 “A Survey of Logistics: When the Chain Breaks,”
Economist, June 15, 2006.
33 Ibid.

2014.
To avoid these costs, companies must implement an operational
risk design with standards
for strategy, processes, and values supported by technology,
which gives the company enough
forewarning to adapt and respond to supply chain problems.34
Part of this flexibility may be
addressing the issue of a lean supply chain. Although less
costly, it creates risk because of the
complete reliance on a sole provider. Thus, companies need to
consider the tradeoffs in their risk
management strategy between holding inventories or using
multiple supply sources and avoiding

disruption. However, a completely risk-averse strategy in a
supply chain may result in carrying
too much inventory or spreading suppliers over such a large
geographic range that the strategy is
prohibitively costly—which smaller firms could ill afford.
Companies must balance costs with
risk-management practices to produce a tailor-made strategy for
their firms to avoid the large
direct and indirect costs of a disruption.
Recovery Efforts
The fire in New Mexico was a costly setback for Ericsson that
contributed to the end of its
independent mobile phone production. Additionally, it revealed
that the company’s
mismanagement of its cell phone brand extended to its
operational risk practices, as it failed to
recognize how costly disruptions were to the bottom line. On
the other hand, Nokia’s keen insight
into its manufacturing operations and its cognizance of the
importance of getting products to
shelves, including its acute monitoring of input supply, helped
the company handle the fallout
from the fire.

Nokia was not immune from falling sales, and its share price in
November 2002 was less than
a third of its peak in June 2000.35 It performed better than its
competitors, however, due to the
prescience of management, weathering the overall market
changes with the same logistical and
risk management acumen that managed the fire. As the bubble’s
repercussions subsided, Nokia
still had a healthy lead in market share over its nearest
competitor. It also continued receiving
numerous accolades, including a signal distinction as “Europe’s
biggest corporate success story
of the last decade,” according to the Financial Times in 2004.36
Nokia’s next big challenge in the
second decade of the twenty-first century would be facing new
competition from Apple and
potentially, Google—a new test for the old pros in Finland.
34 Mukherjee, “The Fire That Changed an Industry.”
35 Christopher Brown-Humes, Robert Budden, and Andrew
Gowers, “Nokia Forecasts Rise in Handset Market,” Financial
Times,
November 18, 2002.

36 Christopher Brown-Humes, “Vote Ollila,” Financial Times,
January 9, 2004.
2014.
Exhibit 1: Worldwide Mobile Penetration

Exhibit 2: Growth in Worldwide Mobile Penetration

2014.

SWE440-1404A-01Software Project ManagementSameer.docx

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