History of Nokia Rise & Fall of Nokia Leadership Roles of Wrong Leadership Causes of Failure Suggestions

1. Leadership in Crisis
Leading throughout tragedy phases-Reverting the tides
with vision
Entrepreneurship & Collaborative moves

2. Group No. 03
Members
• Aliza Rehman
• Abdul Rehman
• Aiman Malik
• Uzair Qayyum
• Baydaar Bakht
• Hina Fatima
• Shazia Nawaz
• Mashal Khan
• Saira Kanwal
• Uzma Balouch
Roll no.
• (BE-15-13)
• (BE-15-14)
• (BE-15-21)
• (BE-15-27)
• (BE-15-37)
• (BE-15-41)
• (BE-15-42)
• (BE-15-47)
• (BE-15-52)
• (BE-15-53)

3. Slide Title

4. Table of Contents
• Overview of Nokia
• Introduction
• History
• Leadership-Stephen Elop
• Nokia-Microsoft Strategic Partnership
• Patent Selling to Microsoft
• Nokia Android Phones
• Conclusion

5. Overview of NOKIA
• Nokia was one of the top cell phone company
• Headquarters were in Finland but employ just
over 120,000 from all over the world.
• In recent years, it has enormously fallen
• This is not a result of their quality or
innovation
• Direct result of poor leadership style

6. Introduction
• Nokia was founded in 1865
• Multinational telecommunication,
Information technology and consumer
electronics company
• Name, ‘Nokia’ actually originated from a
Finnish town called Nokia, also the
Nokianvirta river
• Headquarter in Espoo, Finland

7. Contd…
• Company has had various industries in 152-
years
• No.of employees 102761
• World's 415th-largest company measured by
2016 revenues according to the Fortune
Global 500
• Business in more than 130 Countries

8. Vision & Mission
Vision
“Rule on the Mobile
World”
Mission
“Provide more valuable
and Cheaper Mobile
Phones to the people of
World”

9. History

11. 1865-1967
• Founded by Fredrick Idestamas ‘Pulp Mill’ in Finland
• Formation of shared company by Leo Mechelin &
Fredrick known as ‘Nokia Ab’
• Finnish Rubber Works founded by Eduard Polón
• Nokia Ab partnership with Finnish Rubber Works &
Finnish Cable Factory jointly leaded by Polón

12. 1967-1990
• Formation of Nokia Corporation by Merger of
Nokia, Finnish Cables & Rubbers
• Entry to Radio industry
• Kari Kairamo-New CEO transformed the company
• Nokia acquired TV maker Slora
• Nokia acquire Mobira

13. 1990-2010
• First fully portable mobilephone ‘Mobira
Cityman 900’
• Nokia 1011 commercial GSM phone
• New CEO Jorma Ollila- Rise of Nokia-1992 to
2006
• Nokia overtook Motorola & Nokia 3310 and
many other Symbian Phones

14. 2010-Present
• Stephen Elop take position as CEO- becoming the
first non-finnish director
• Advent of iOS and Android
• Nokia Partnership with Microsoft
• Journey to Window Phones- Lumia 800
• Downfall
• New Journey towards Android

15. Leadership

17. Stephen Elop- As CEO
• Stephen Elop succeeded as CEO of Nokia on
September 21,2010
• Previously head of Microsoft’s business softare
division
• As per Stephen Elop’s initial memo, which leaked
to the press, the company was on a ‘burning
platform’. This was a reference to the Symbian OS
the company had been using for so long.

18. Contd…
• This was regarded as very discouraging and one
of the most damaging memo in corporate
governance.
• Although Elop tried his best, the company saw its
worst days.
• Market share fell drastically from 45% to 34% in
2011
• Nokia posted a loss of 368 million euros for Q1
2011

19. Nokia-Microsoft Strategic
Partnership

20. Contd…
• Desperate to come out of the ongoing crisis and
better compete with competitors, Nokia
announced a strategic partnership with software
giant Microsoft to make the latter’s Windows
Phone.
• Rumors in talk that Microsoft acquire the
struggling Finnish giant.
• Meanwhile, Apple overtook Nokia in smartphone
sales in Q2, 2011.

21. Contd…
• Partnership between Nokia and Microsoft bore
were the Lumia 800 and Lumia 710 Smartphones

22. Contd…
• Company managed to beat market by selling over
a million units of these devices in just a few
months
• job cuts continued
• Meanwhile, effort to save more expenses, the
company announced to close its oldest factory in
Finland
• shift manufacturing to Asia, which had become
largest market by then

23. Contd…
• Windows Phone devices couldn’t do much for
Nokia in Q1, 2012
• Company suffered an operating loss of a
whopping €1.3 billion
• Another round of job cuts, affecting around
10,000 employees

24. Contd…
• Later that year, the company launched Windows
Phone 8-powered Lumia 920 flagship which brings
some profit to NOKIA after six quarters of bleeding
money.

25. Patent Selling to Microsoft

26. Microsoft Overview
• Microsoft Corporation is an American
multinational technology company
• Develops, manufactures, license, support and
sells computer software, personal computers etc.
• Founded by Paul Allen and Bill Gates in 1975
• Formed ’Microsoft Mobile’ through the
acquisition of Nokia's devices and services
division

27. Microsoft Mobile
• Its a subsidiary of MS involving in the development
and manufacturing of mobile phones
• Established in 2014 after the acquisition of Nokia

28. Selling of Nokia
• In September 2013, Nokia announces that it has
entered into an agreement with Microsoft whereby
Microsoft would purchase substantially all Devices &
Services, the Nokia business which makes mobile
phones and smartphones.
• Stephen Elop facilitated this deal.
• Though Nokia is now reporting profits, it had lost its
glory in the market it once dominated single-
handedly.

29. Causes of Failure

30. 1- Moved Slowly
• Apple came in 2007. Wanted to
make an agreement with Nokia,
Nokia refused.
• Android came on 2009, yet ignored
to convert into this

31. 2- Ignore the Competitors
• Samsung was building phones for
Symbian and Android
• Busy in developing their own
softwares.
• HTC, Huawei took the advantage and
occupied the lower market of china.

32. 3- No innovation
• Dependent on their old snake games.
• No gradual waiting in customers
while everyone knew Samsung
would launche
• a new version of Galaxy with
something new for example

33. 4- Wrong Leader
• Hiring a CEO who didn’t work for
them.
• Didn’t concentrated of Competition.
• Forced to sell windows phones to
market while Android and iOS was
accepting

34. Conclusion

35. Conclusion
• Trends
• Catch the wave
• Management Decisions
• Dysfunctional Organizational Structure

36. Wrong vision and misbalance
• "innovation first", instead of the customer first
• I am the best
• Solution may be transformational leadership
Because
• Rigid goals
• Organizational boundaries
• Lack of motivation and engagement
• No shared vision

37. Inefficient recruitment process
• Ex-CEO of Nokia Jorma Ollila & Stephen Elop
• Hiring a right leader
Because
• The success of the team is on the hand of the leader