BUSN20019: Analysis of Nokia's Business Performance and Management

This report delves into a comprehensive analysis of Nokia's business performance and operational management, examining the key factors that contributed to its decline in the mobile phone market. It explores the company's strategic decisions, weaknesses in operational management, and the impact of competition from companies like Apple and Samsung. The report investigates the role of technological advancements, supply chain management, and the effectiveness of Nokia's research and development in shaping its market position. Through a detailed literature review, the report assesses the conceptual framework and analyzes the company's financial reports and business strategies. The research employs both qualitative and quantitative methodologies, including correlation and regression analysis, to evaluate the relationship between Nokia's business performance, operational management, and its eventual downfall. The report also includes a Gantt chart outlining the research timeline and a list of references for scholarly support. The analysis aims to identify the critical issues and provide insights into the factors that led to Nokia's loss of market share, offering valuable lessons for businesses in the telecommunications industry and beyond.

Running head: RESEARCH IN NOKIA
RESEARCH IN NOKIA
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Table of Contents
Chapter 1: Introduction..........................................................................................................................2
Background of the study....................................................................................................................2
Research Aims and Objectives..........................................................................................................2
Aims of the study...............................................................................................................................2
Objectives of the study......................................................................................................................2
Research Questions............................................................................................................................2
Chapter 2: Literature Review.................................................................................................................4
Conceptual Framework......................................................................................................................4
Operational Management of NOKIA responsible for the downfall in the business value..............4
Business Performance of NOKIA..................................................................................................5
Chapter 3: Research Methodology.........................................................................................................7
Data Collection Process.....................................................................................................................7
Quantitative Data analysis (Correlation and Regression)...................................................................7
Qualitative Analysis (Thematic Analysis).........................................................................................7
Gantt chart.........................................................................................................................................7
References.............................................................................................................................................8

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Chapter 1: Introduction
Background of the study
Before the advent of Samsung Smart Phones and I phones, NOKIA used to be the leading
pioneer in the world of mobiles. NOKIA used to render its products and services to more than 130
diversified nations. However, in the contemporary times, NOKIA has undergone a downfall in the
business value owing to the loopholes that creep into the operational management and the business
performance of the organization (Alibage & Weber, 2018). The operational management of NOKIA
and the business operations of the same had direct relationship in the decline of the brand image of
NOKIA. These two factors are directly accountable for the downfall of the business market of
NOKIA. The toughest challenge encountered in this regard, was the technological advancement of the
Apple, which eventually turned out to be enticing that has lured the large concentration of the
customers towards itself. This report performs a thorough research and analysis on the highlighted
issue based on the above mentioned parameters.
Research Aims and Objectives
The aim of this research is to perform qualitative and quantitative analysis on the secondary
data collected from the provided source. The report aspires to analyse the previous data about the
organization and accordingly anticipate the upcoming outcomes. Accordingly, the corresponding
amendments can be done in the infrastructure of the organization fetching the purpose of the
upliftment of the business value of the organization thereby facilitating the attainment of the business
targets.
Aims of the study
The aims of this research is to identify the demerits of the business performance and the
operational management of the organization and amend them accordingly, fetching the sole purpose
of the elevation in the business value rendering business growth.
Objectives of the study
The objectives of this report is to:
 To perform a thorough and profound qualitative and quantitative analysis on the
prevailing and the persisting data of the organization and thereby capable of
anticipating the upcoming outcome.
 Based on this the organization can bring about alterations in their prevailing business
structures and thereby aspires to attain supremacy in the cosmopolitan market of
smart phones.
Research Questions

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How operational management will contribute to the degradation in the business of NOKIA?
This research question focuses on the contribution led by the operational management of the
NOKIA in the corresponding downfall.
How business performance affects the positive elevation in the business growth of NOKIA?
This research question focuses on the impact that has been led by the business performance of
the NOKIA in controlling the business growth of the organization.

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Chapter 2: Literature Review
Conceptual Framework
Operational Management of NOKIA responsible for the downfall in the business value
Operations management of NOKIA aims at maintaining a good and healthy relationship with
its customers. The customers and the suppliers have profound contribution in the operations of an
organization. In the event of a fast progressing business like telecommunication business, there needs
to be the adaptability of the suppliers (Alva & Bhat, 2018). The second challenge encountered by
NOKIA was the weak management system, which led to the internal discontent that has triggered the
poor decision making of the organization resulting in the downfall of the NOKIA. Moreover, the
weak and incompetent business operations also hold vital contribution in the downfall of the brand
image and the business value of the organization.
The suppliers need to be responsive to the customised requirements of the customers and
accordingly execute the renovations in the business operations. The particular citation in this scenario
that deserves special mention was the tough challenge imparted by the global widespread market of
the I phones (Chang, Srirama & Buyya, 2017). The suppliers of the IPhone were responsive to the
product demands and the required specifications and had act accordingly, whereas this was the major
drawback of the NOKIA.
For any business, supply chain management is the fundamental criterion, based on which the
business value and the profit margins of an organization are ascertained. The supply chain
management of NOKIA was more keen on focussing at the services and products offered by NOKIA
in compliance to the work place culture and the human rights, instead of focussing at the customised
requirements of the customers.
NOKIA should have focussed at the contemporary market scenario of the telecom industries
and should have restructured its Research and Development sector according the specifications on
demand (Cozzolino, Verona & Rothaermel, 2018). Apple has sufficed this scenario by bringing
alterations in its Business protocols incorporating up gradations in the research and development
sector, thereby facilitating the production of customer centric applications embedded in the software
of the I phones.
The I phones of Apple made entrain in the cosmopolitan market in the year of 2007.
However, it failed to gain ground on the global market as compared to NOKIA owing to the
contemporary brand image set up by NOKIA (Doppler et al., 2017). However, there was a complete
reversal in the scenario in the year of 2010, marked by the launch of the “I Phone killer” by NOKIA,
which was not at all a successful approach. In the potential ground of competitive advantage, Apple
taking the advantage of this scenario gained potential ground.

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Consequently, there was a degradation in the quality of the high end phones manufacture by
NOKIA. Whereas, on the other hand, Apple has gained supremacy turning out to be a pioneer in the
world of telecommunication industries. There was a distinct downfall in the market value of the
NOKIA in the successive 6 years since the operations management was unable to identify the
loopholes within their structural framework and rendered extensive opportunity to Apple to excel in
terms of business value and profit margins.
The management model of Apple is totally diversified in contrast to the Operations
management of the NOKIA. There is no official strategy of the Apple whereas there is a articulated
and systematic business strategy of NOKIA that had complied with the customer ethics and rights
(Dunuwille & Pathmini, 2016). The fundamental reason that contributed to the drastic downfall of the
NOKIA in contrast to the attainment of the potential ground by the Apple, is the failure of the NOKIA
to respond to the growing business demands and the customised product specifications. Nokia phones
were not android oriented phones, neither it had rendered the beneficial aspects and features as
offered by the Apple’s I phones. Customers are keen to enjoy the benefits of a PC in smart phone,
which NOKIA failed to deliver as an outcome.
There was lack of communication within the organizational management of the NOKIA
owing to the unfamiliarity observed research and development teams, finance department and the
management team of NOKIA (Mannion & Savolainen, 2016).. This communication gap to some
extent was responsible for the downfall of the business value of the NOKIA. This was not the
scenario when it comes to Apple. There is a strong coherent relationship between the departments of
the Apple forming the infrastructure of the organization, which contributed to the attainment of
pioneer ship of the organization.
Business Performance of NOKIA
The business performance of NOKIA is equally responsible for having active contribution in
the downfall of the business of NOKIA (Manssen, Greene & Hoirup, 2015). In the early eras of its
business expansion, the leveraging factors that accounted to the parabolic growth in the business value
of the organization with a view to attain global supremacy are the profound and the wide angle vision
and the smart management of the organization.
However, the middle of 1990 was marked by the substantial downfall owing to the shrinkage
encountered in the supply chain network. The business performance of NOKIA was further impacted
by the incapability and the ineffectiveness of the managers in dealing with the adverse scenarios
(Migdadi, 2016). They failed to devote sufficient time and intellect in enduring the adverse scenarios
and as a consequence this has greatly impacted the business performance resulting in the culmination
of its brand value.
There was the urgent requirement for the intrusion of third leg within the structural
infrastructure. Third leg refers to the arena facilitating the growth and development of the business

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network. There was the introduction of a NEW Venture Board in the organization, however it was not
that capable to address the loopholes and was not that beneficial in combatting the scenarios, owing to
the pre-existence of inbuilt departments concerned with the venturing activities.
However, there was the renewal of the efforts to fetch the purpose of detecting the third leg.
This was facilitated by the Nokia ventures organization, leaded by the top management team of
NOKIA. The NVO was successful in the absorption of the prevailing and persisting ventures and
opted for the emergence of new innovative technologies that fits the product requirements of the
customers (Rahaman et al., 2017). The NVO was successful in transforming a number of crucial
projects and into the core business values. NVO proposed for the incorporation of the IoT and
multimedia based health management, which was the contemporary demand of the cosmopolitan
market.
Share price of NOKIA was high and initially it was successful in rendering business
satisfaction to the customers in terms of product specifications and business requirements. However, a
huge loss was incurred in terms of entrepreneurialism and agility, owing to the elevated concern of the
CEO of NOKIA in the attainment of the rapid business growth (Reid & Sanders, 2015). Within the
time span of 4 years i.e. from 2001 to 2005, for fetching the purpose of rekindling the ancient drive of
NOKIA, a number of decisions have been undertaken. Eventually, none of them turned out to be
successful in the way of accomplishment of the desired objectives.
There was the relocation of the vital roles incorporating the leadership responsibilities, which
in turn accelerated the departure of the crucial decision makers and the leading personalities who has
vital contributions in the decision making of the organization (Reid & Sanders, 2015). This had
hampered the strategic thinking of the organization. Different teams and squads having diversified
inter personal skills also fall short to address the decentralised initiatives owing to the fact that the
mid-level executives are not that competent in terms of experience or training skills that fits the
integrative negotiations.
The operating system coined Symbian was held responsible for the trapping of the NOKIA.
There was the shifting of the priority from hardware to software owing to the criticalness in the
competitive feature in the industry (Slack & Brandon-Jones, 2018). This concludes the role of
business operations in the downfall of the global position of NOKIA.

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Chapter 3: Research Methodology
Data Collection Process
For performing the research, there is the requirement for the collection of the data of NOKIA
about last 10 years, based on the parameters like annual sales (independent variable) and annual
production (independent variable) and the output will be profit margin (dependent variable). The
secondary data is collected from the annual sales report of NOKIA.
Quantitative Data analysis (Correlation and Regression)
For generating the outcome of the research that has been carried out for the analysis of the
possible causes that has triggered the downfall of NOKIA, there is the requirement for the
Quantitative analysis of the data collected from the annual sales report of NOKIA. The methodology
adopted fetching the purpose of data analysis is correlation and regression of the data. In both the
event of performing correlation or regression-based analysis, the independent variables are annual
sales of NOKIA and the annual profit margin of the organization. The dependent variable will be the
Annual profit margin of the organization. In the methodology of regression, there is the existence of
an inverse relationship between the independent variables, whereas in the methodology of correlation,
there exists a direct relationship between the independent variables.
Qualitative Analysis (Thematic Analysis)
The qualitative analysis employed for the analysis of the data collected from the annual sales
report of the NOKIA is Thematic Analysis. This methodology identifies and addresses the patterns
and the themes. In this research, the coding operations and the development of the theme is facilitated
through the direction of the collected data.

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Gantt chart

9RESEARCH IN NOKIA
References
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Cozzolino, A., Verona, G., & Rothaermel, F. T. (2018). Unpacking the disruption process: New
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