PPT on Legal Framework and Trade Facilitation

1. MERGER & ACQUISITION
By: Muskan Aggarwal
Vanshika Mittal
Rahul Goel
Himanshu Goel

2. FAMILIARIZATION WITH FIRMS
Microsoft
Microsoft Corporation is an American multinational technology company which develops,
manufactures, licenses, supports and sells computer software, consumer electronics,
personal computers and services. Its renowned software products are the Microsoft
Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer
browsers. It was founded on April 4, 1975, in New Mexico of US by Bill Gates and Paul
Allen. Its net annual income was 21.2 Billion USD on the period 2017. Currently it’s
dealing with the products like MS Office, Skype, Internet Explorer, NETBREEZE, Nokia etc

3. Nokia
It’s a Finnish multinational communication, information technology and consumer
electronics company which was founded mainly in 1865 with a headquarter in Helsinki. It
was founded as a pulp mill company and had long been associated with rubber and
cables. In 1990, it focused on large-scale telecommunications infrastructures and
technology development. The company viewed with national pride by Finns, since its
successful mobile phone business made it by far the largest worldwide company and
brand from Finland. At its peak in 2000, during the telecoms bubble, Nokia alone
accounted for 4% of the country's GDP, 21% of total exports and 70% of the Helsinki Stock
Exchange market capital.

4. MICROSOFT AQUISITION OF NOKIA
• Microsoft announced its acquisition of Nokia's mobile phone business.
• The deal involved Microsoft purchasing Nokia's Devices and Services division, which
included Nokia's Lumia smartphones, Asha feature phones, and other mobile phone
assets.
• The acquisition was completed in April 2014 for a total of €5.44 billion. This strategic
move was aimed at strengthening Microsoft's position in the mobile market and
integrating Nokia's hardware expertise with Microsoft's software capabilities.

5. WHY MICROSOFT AQUIRE NOKIA
• Microsoft acquired Nokia in 2014 to strengthen its position in the mobile phone
market.
• At that time, Nokia was one of the leading manufacturers of mobile phones worldwide,
and Microsoft saw an opportunity to leverage its software expertise by integrating it
with Nokia's hardware capabilities.
• By acquiring Nokia, Microsoft aimed to develop its own smartphones, enhance the
Windows Phone operating system, and compete more effectively with rivals like Apple
and Android.

6. POST ACQUISITION SCENARIO
• July 2015: Microsoft writes off $7.6B, admits failure of Nokia acquisition
• Microsoft announced it would lay off about 7,800employees, most of them working in
its device division, specifically the phone group
• Microsoft stock dropped by more than 5% in early trading following the acquisition
announcement
• Nokia investors, on the other hand, seemed to cheer the deal, sending the stock up by
more than40%
• The write down pushed Microsoft's losses to $2.1billion for July 2015 quarter

7. Why did the Nokia
and Microsoft
Merger Fail?

8. Late Entry
Lack of Innovation
in Products
Integration Issues
Management
Changes
Hardware Issues

9. RECOMMENDATIONS
Early initiative for the acquisition (partnership).
Establish Integration task groups made up of key individuals
from each of the combining organizations.
More freedom at production level.
Could have provided customizable phones.