This document contains information about an organizational design project for Nokia. It includes a list of project members, background information on Nokia's history from its founding in 1865 to becoming a top mobile phone manufacturer, and analyses of Nokia's strengths, weaknesses, opportunities, threats, mission, vision, organizational structure, and external environment.

1. Organizational Design project

2. Members
 Muhammad Tarek Hussein
11104205
 Raouf Abdelwahab Adss
11104457
 Sandra Hesham Mahmoud
11104162

3. History and Background of
NOKIA
1 Founding
Nokia was originally founded as a paper manufacturer by Fredrik Idestam in 1865. After having established a ground
wood pulp mill in South-western Finland, Idestam in 1868 constructed a second mill in the nearby town of Nokia:
having better resources for the generation of hydropower production. In 1971 Ideastam along with close friend Leo
Mechelin transformed the firm into a share company, thereby founding the Nokia Company.
2 Electronics
In the late 19th century Nokia added electricity generation to its business activities. After setting up the Finnish Cable
Works in 1912, Nokia began to branch out into electronics in the 60s. Having developed its first electronic device in
1962 (a pulse analyzer for use in nuclear power plants) Nokia began development on radio telephones in 1963 for the
army and emergency services and by 1987 Nokia became the third largest TV manufacturer in Europe.
3 Mobile telephone
In 1979 the company established the radio telephone company Mobira Oy as a joint venture with the Finnish TV
maker Salora. Having established a firm business footing Nokia released the Nordic Mobile Telephone (NMT) service,
the world’s first international cellular network. As the mobile phone industry expanded throughout the 1970s and early
1980s Nokia introduced their first car phone in 1982, the Mobira Senator.
4 Developments
Nokia was to sell its billionth phone in 2005 as mobile phone subscriptions surpassed 2bn in this same period. In 2007
Nokia was internationally recognized as the fifth most valued brand in the world.
In both 2009 and 2010 the Dow Jones Indexes ranked Nokia as the world’s most sustainable technology company as
they set about developing their business methods and strategies in accordance with new environmental standards.

4. SWOT ANALYSIS
Strengths
 Nokia world’s largest producer and Manufacturer of Cell
Phone as well as has the largest Distribution network around
the world.
It is also known for the Creativity, Inattentiveness durability &
reliability.
 It has very good financial position, higher return on equity
(ROE), return on assets (ROA) and net profit margins (NPM)
 Nokia leads the global Cell phone industry
 Nokia dominates the world cellular industry because it has
the Strong R & D facilities.
 Nokia also possessing the all fashion strategies and four style
new generation characteristic from manufacturers
 It has diverse work force and advanced technology.

5. SWOT ANALYSIS
Weaknesses
it has declared its profits had dropped by 40 % in 2010.
 Nokia Mobile Phone prices are higher as compare to the
prices of china mobiles handsets.
 Nokia presence in the US cellular industry is very low
and in Japan it has very weak position.
 In India Nokia has few Service Center and very
appalling after sale service
 In Japan Nokia closed the mobile handset distribution
and also canceled the distribution of E71 handset due to
low market preference.

6. SWOT ANALYSIS
Opportunities
In 2011, the global cell phone industry expected to
grow by double digits
 Today, Asia-Pacific mobile phone industry is one
of the fastest-growing industries in the world.
 Developing countries like China, Bangladesh,
India and Pakistan has enormous demand
potential.
 Nokia had a 50-50 joint venture with Semen’s of
Germany
 Youth wants the stylish aesthetics, fashionable
handsets, it drive the new market for players.

7. SWOT ANALYSIS
Threats
 Consumers are becoming more complicated in the
choice of handset due to new styles by china mobiles.
 Difficult for sellers to differentiate their products and
retain loyalty.
 Nokia is facing very strong price pressure from china
and other mobile producers
 Nokia is losing global market share after the arrival of
several Chinese producers
 In the Asia/Pacific emerged competitive forces.
 Apple, RIM and the other different sellers have
created strong pressure for Nokia.

8. Mission Statement and Vision
The vision of Nokia company is that rule on
mobile world. And the mission is to provide more
cheaper and valuable mobiles to the people of
world.

9. APPS FOR ORGINZATIONAL DESIGN
Nokia Organization chart in Finland
Work Departmentalization

10. APPS FOR ORGINZATIONAL DESIGN
Work Specialization:
1-Clear division of labor
2-High work specialization
3-Specified skills
Formalization:
1- Less formalized structure
2- Employees have autonomy in dynamic environment
3- Separate quality manuals for its various departments
Span of control:
1-Work done in teams
2-In most cases span of control is wide
Chain of Command:
1-Blur chain of command
2-Free flow of information

11. Centralization and decentralization
Nokia is neither completely centralize or
decentralize. But it works with both approaches.
-In long term (Strategic plans) the decisions are
highly centralize.
-It is more decentralized in short-run (operational
plans) as it works in unstable environment.

12. Dimensions of organizational Structure
Dimension Degree
Attention to
detail
High
Outcome
orientation
Low
People
orientation
Low
Team
Orientation
High
aggressivenes High

13. EXTERNAL ENVIRONMENT
Specific Environment
-Customers: Customers remain our top priority. Customer focus
and consumer understanding must always drive our day-to-day
business behavior. Nokia’s priority is to be the most preferred
partner to operators, retailers, and enterprises.
-Competitors: “Cell phone competitors of the businessmen in
the same area activity of the business.” The Nokia change
business have competitor to provide quality product. Nokia has
the many competitors to control the brand to achieve in the
Mobile market;
Competition in the mobile technology industry is intense. Nokia
recognizes that it must maintain a competitive product portfolio.
They must have a variety of products that meet user needs .

14. EXTERNAL ENVIRONMENT
Specific Environment
-Suppliers: Suppliers support the provision of raw materials,
they add a great deal of effect onto the organization and Nokia
manages to control their bargaining power and maintain a
mutual relationship. They spend years working with them and
provide a good opportunity for them to improve their inputs and
their environment performance Nokia Company has good
supplier to get the raw material on time to maintain their
availability and increasing and their creditability.
-Public pressure groups: pressure is forcing Nokia to look for
new, creative and cost-efficient ways to manage and minimize
environmental impacts … and to be indifferent with the
competitors.

15. EXTERNAL ENVIRONMENT
General Environment:
-Legal and Political conditions: government instability or rules
and regulations which the business must follow. Nokia have
recently moved one of its manufacturing facilities to India, and
because of this it is important that Nokia follow the rules and
regulations that are set in India, so that they can operate as
efficiently as possible.
-Economic conditions: Nokia are vital to the Economy; The
organization is so important to the economy of Finland that the
government had to step in when the business, earlier this year
Nokia planned job cuts in Finland and with fears of what that
would do to the economy the Finnish government stated they
were prepared to help find jobs for those who are sacked
(Reuters, 2011).

16. EXTERNAL ENVIRONMENT
General Environment:
-Sociocultural conditions: Socio-culture focuses on how Nokia
blends in with components in a society; With Nokia mainly
operating in the Western market it is important for them to fully
understand the social factors in these markets and the main
factor they need to understand is the culture of the society…
which is to have the latest and most up to date phone.
-Technological conditions: The technological advances in the
industry are vital to the success of any new Smartphone in the
market that is continually growing, as Nokia ensure that their
Smartphones are at the highest level of innovation.

17. EXTERNAL ENVIRONMENT
General Environment:
-Demographic conditions: It’s affected by the change in the mix
of age groups in the population. If the population becomes older,
this will lead to rising demand for products and services
consumed by older people and a similar fall in demand for
products consumed by younger people. So Nokia always has to
submit products that fit all ages.
-Global conditions: the impact of globalization has been very
significant and, today Nokia with the most of the large
companies (Nokia, Samsung, LG etc.) are present in all
continents and competing globally. The existence of a global
market can be traced back to the absence of significant barriers
of international business and the significant economic gains
(scale and scope) that can be achieved from selling larger
quantities