Explanations of Success and Failure in Management Learning: What Can We Learn from Nokia’S Rise and Fall?
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Nokia in 2010 Review by the Board of Directors and Nokia Annual Accounts 2010
Nokia in 2010 Review by the Board of Directors and Nokia Annual Accounts 2010 Key data ........................................................................................................................................................................... 2 Review by the Board of Directors 2010 ................................................................................................................ 3 Annual Accounts 2010 Consolidated income statements, IFRS ................................................................................................................ 16 Consolidated statements of comprehensive income, IFRS ............................................................................. 17 Consolidated statements of financial position, IFRS ........................................................................................ 18 Consolidated statements of cash flows, IFRS ..................................................................................................... 19 Consolidated statements of changes in shareholders’ equity, IFRS ............................................................. 20 Notes to the consolidated financial statements ................................................................................................ 22 Income statements, parent company, FAS .......................................................................................................... 66 Balance sheets, parent company, FAS .................................................................................................................. -
Nokia Disconnected a Corporate History from a Workers’ Perspective
By Cereal , Cividep India, SOMO May 2015 Table of Contents 1. Introduction ................................................................................................... 3 1.1. Methodology ................................................................................................... 3 2. Leading the mobile phone sector (1998-2007) ........................................... 5 2.1. Precarious employment, poor working conditions and relocations ................. 5 3. Decline (2007-2013) ...................................................................................... 8 3.1. Loss of market share and dismissal of workers worldwide ............................. 8 4. Acquisition by Microsoft (2013-2015).......................................................... 12 4.1. Large scale job cuts ........................................................................................ 12 5. Conclusion .................................................................................................... 17 Colophon ................................................................................................................... 18 Nokia Disconnected A corporate history from a workers’ perspective 1. Introduction Nokia is one of the most successful companies of the late 20th and early 21st century. At its peak, the company had over 40% of the mobile phone market share, and its brand was synonymous to mobile technology. Eventually, the company dwindled and was taken over by software giant Microsoft in 2013. The company’s rise and fall illustrates -
Operation Elop
Operation Elop Operation Elop The nal years of Nokia’s mobile phones The little green spy boat seen from the old Nokia House in the Keilalahti bay, Espoo, Finland. Photo by Jari Ijäs on December 8, 2010, with a Nokia C7. On October 8, 2017, Joe Belore of Microsoft casually announced the death of Windows Phone. In a series of tweets he explained that Microsoft will continue to support the Windows Phone (and Windows 10 Mobile) platform but “building new features/hw aren’t the focus”. That was the end of Microsoft’s smartphone endeavor. Fast rewind to 2010. On September 10, 2010, Nokia of Finland replaced its Chief Executive, Olli-Pekka Kallasvuo, who had been at Nokia for 30 years, with 1 Operation Elop Stephen Elop, a 46-year-old native of Ancaster, Ontario, and the head of Microsoft’s business software unit, in a bid to turn around the company’s struggling smartphone lineup and stop a decline in its market share in the U.S. On February 11, 2011, Nokia and Microsoft announced plans for a broad strategic partnership to build a new global mobile ecosystem with Windows Phone. [1] Under the proposed partnership Nokia would adopt Windows Phone as its principal smartphone strategy, and contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments, and geographies. On September 2, 2013, Microsoft announced that it would buy Nokia’s Devices and Services business and license its patents for $7.2 billion. Also as part of the deal, Nokia’s CEO Stephen Elop was announced to eventually go back to Microsoft and lead an expanded devices team. -
Nokia Phones: from a Total Success to a Total Fiasco
Portland State University PDXScholar Engineering and Technology Management Faculty Publications and Presentations Engineering and Technology Management 10-8-2018 Nokia Phones: From a Total Success to a Total Fiasco Ahmed Alibage Portland State University Charles Weber Portland State University, [email protected] Follow this and additional works at: https://pdxscholar.library.pdx.edu/etm_fac Part of the Engineering Commons Let us know how access to this document benefits ou.y Citation Details A. Alibage and C. Weber, "Nokia Phones: From a Total Success to a Total Fiasco: A Study on Why Nokia Eventually Failed to Connect People, and an Analysis of What the New Home of Nokia Phones Must Do to Succeed," 2018 Portland International Conference on Management of Engineering and Technology (PICMET), Honolulu, HI, 2018, pp. 1-15. This Article is brought to you for free and open access. It has been accepted for inclusion in Engineering and Technology Management Faculty Publications and Presentations by an authorized administrator of PDXScholar. Please contact us if we can make this document more accessible: [email protected]. 2018 Proceedings of PICMET '18: Technology Management for Interconnected World Nokia Phones: From a Total Success to a Total Fiasco A Study on Why Nokia Eventually Failed to Connect People, and an Analysis of What the New Home of Nokia Phones Must Do to Succeed Ahmed Alibage, Charles Weber Dept. of Engineering and Technology Management, Portland State University, Portland, Oregon, USA Abstract—This research intensively reviews and analyzes the management made various strategic changes to take the strategic management of technology at Nokia Corporation. Using company back into its leading position, or at least into a traditional narrative literature review and secondary sources, we position that compensates or reduces the losses incurred since reviewed and analyzed the historical transformation of Nokia’s then. -
Mallinson on Why Some SEP Owners Generate Much Higher Royalties Than Others, 14Th May 2019
Mallinson on why some SEP owners generate much higher royalties than others, 14th May 2019 Large differences in FRAND rates and royalty payments are legitimate and pro-competitive Cellular technology companies with substantial device businesses — including Huawei and Samsung today, and Nokia until it sold its handset business in 2014 — generate no more than modest net licensing revenues, despite the significant Standard-Essential Patent (SEP) portfolio sizes they have declared. Crucially, they must also cross license their manufactures against infringement of other companies’ patents. Companies without significant device businesses, including Qualcomm and InterDigital, have no such overriding need to barter their intellectual property. Instead, their businesses are focused on licensing cellular and smartphone patents for cash, upon which their technology developments crucially depend. Exhibit 1: Many licensing deals are largely barter, with reduced or no cash payments SEP licensors do the costly technology developments that make new generations of standards including 3G, 4G and 5G openly available to all Original Equipment Manufacturers (OEMs): however, since 2011, if not earlier, none of the former has received, in licensing revenues, even as much as an average of $4.50 per phone or a few percent of global wholesale handset sales revenues, for example, totalling $398 billion in 2018. Aggregate royalties paid to all licensors have averaged less than five percent. In contrast, Apple has taken up to 43 percent revenue share with its iPhone sales and other leaders Samsung and Huawei are also currently in double digits. FRAND rates and net payments in cash The question of what levels of royalty rates should be deemed Fair Reasonable and Non- Discriminatory (FRAND) for licensing SEPs in cellular technologies has loomed large in commentary on the recent US Federal Trade Commission (FTC) v. -
Apple and Nokia: the Transformation from Products to Services
9 Apple and Nokia: The Transformation from Products to Services In the mid- to late 2000s, Nokia flourished as the world’s dominant mobile phone – and mobile phone operating software – producer. Founded in 1871 originally as a rubber boots manufacturer, by 2007 Nokia produced more than half of all mobile phones sold on the planet, and its Symbian mobile operating system commanded a 65.6 percent global market share. 1 But within half a decade, Nokia would falter and be surpassed in the smartphone market not only by Apple’s revolu- tionary iPhone but also by competitors including Google and Samsung. And in September 2013, Nokia would sell its mobile phone business to Microsoft for $7 billion. 2 Apple literally came out of nowhere – it sold exactly zero mobile phones before the year 2007 (the year Nokia held more than half of the global market share) – but by the first quarter of 2013, Apple had captured almost 40 percent of the US smartphone market and over 50 percent of the operating profit in the global handset industry.3 In fiscal year 2013, Apple would sell five times more smart- phones than Nokia: 150 million iPhones compared to Nokia’s sales of 30 million Lumia Windows phones. 4 In contrast to Nokia, Apple real- ized it wasn’t just about the mobile device itself, it was about leveraging software to create a platform for developing compelling mobile experi- ences – including not just telephony but also music, movies, applica- tions, and computing – and then building a business model that allows partners to make money alongside the company (e.g., Apple’s iTunes and AppStore) and, in so doing, perpetuate a virtuous cycle of making the iPhone attractive to customers over multiple life cycles through ever-ex- panding feature sets. -
THE NOKIA REVOLUTION the Story of an Extraordinary Company That Transformed an Industry DAN STEINBOCK
THE NOKIA REVOLUTION The Story of an Extraordinary Company That Transformed an Industry DAN STEINBOCK DAN STEINBOCK is an affiliate researcher at the Columbia School Institute for TeleInformation and a visiting professor at the Helsinki School of Economics and Business Administration. He is the author of The Birth of Internet Marketing Communications and Triumph and Erosion in the American Media and Entertainment Industries. SUMMARIES.COM is a concentrated business information service. Every week, subscribers are e-mailed a concise summary of a different business book. Each summary is about 8 pages long and contains the stripped-down essential ideas from the entire book in a time-saving format. By investing less than one hour per week in these summaries, subscribers gain a working knowledge of the top business titles. Subscriptions are available on a monthly or yearly basis. Further information is available at http://www.summaries.com. The Nokia Revolution - Page 1 1920s - 1980s – Global Focus 1. The History of Nokia With the end of World War I, Nokia was in the process of “Finland has quite a few resources. Briefly put, there are two of changing from a family owned business to a public company. As them: the people and the trees. Exports are obligatory in the part of that process, the company started moving into new future as well. Things must be sold abroad so that living business segments. Nokia expanded its electrical power conditions will remain good domestically. This, in turn, requires generation line of business and looked for other innovations. that we have extensive experience in international business. -
Nokia Corporation (Exact Name of Registrant As Specified in Its Charter)
Table of Contents As filed with the Securities and Exchange Commission on March 7, 2013. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 Commission file number 1-13202 Nokia Corporation (Exact name of Registrant as specified in its charter) Republic of Finland (Jurisdiction of incorporation) Keilalahdentie 4, P.O. Box 226, FI-00045 NOKIA GROUP, Espoo, Finland (Address of principal executive offices) Riikka Tieaho, Vice President, Corporate Legal, Telephone: +358 (0)7 1800-8000, Facsimile: +358 (0) 7 1803-8503 Keilalahdentie 4, P.O. Box 226, FI-00045 NOKIA GROUP, Espoo, Finland (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the “Exchange Act”): Title of each class Name of each exchange on which registered American Depositary Shares New York Stock Exchange Shares New York Stock Exchange(1) (1) Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of the Securities and Exchange Commission. Securities registered pursuant to Section 12(g) of the Exchange Act: None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Exchange Act: 5.375% Notes due 2019 and 6.625% Notes due 2039 Indicate the number of outstanding shares of each of the registrant’s classes of capital or common stock as of the close of the period covered by the annual report. -
The Dissolving Corporation
THE DISSOLVING CORPORATION Contemporary Architecture and Corporate Identity in Finland Peter MacKeith www.eva.fi EVA´s homepage contains reports, articles and other material in Finnish and in English. Publisher: Taloustieto Oy Cover: Antti Eklund Printing: Yliopistopaino 2005 ISBN 951-628-424-8 PREFACE In the past few years, the Finnish Business and Policy Forum EVA has treated the issues of creativity and business-culture interaction with growing interest. This report is an extension of the June, 2004 EVA conference on “Creativity through Competitiveness” and is published in co-operation with the Creative Finland Association. Entertaining a subject quite different from past EVA report themes, this essay offers one perspective on the state of Finnish corporate architecture within the more general context of corporate management practices and ar- chitectural innovations. In this report, Professor Peter MacKeith argues that in the contempora- ry moment of global, open-market economies, Finnish architecture is at a critical juncture. This condition is reflected precisely in recent headquarters architecture produced by Finnish corporations. Whereas a hundred years ago corporate headquarters were central elements of the surrounding cultural and urban environment, expressing values of the emerging national consciousness, today’s Finnish corporate headquar- ters have adopted a style of neutrality and anonymity, and situated themselves outside of the public realm. Professor MacKeith calls for a corporate architecture that takes into account issues of sustainable de- velopment and the corporation’s relationship to the society, culture and civic realm in which it is physically situated. Along with the desired image and values communicated by a building’s form to the outside world, corporate office planning has also adopted new objectives. -
Nokia – the Inside Story Martti Häikiö
Opiskelijakirjaston verkkojulkaisu 2004 Nokia – The Inside Story Martti Häikiö Julkaisija: Edita. Helsinki 2002. Julkaisu: Introduction + Chapter I, s. 13-33. Tämä aineisto on julkaistu verkossa oikeudenhaltijoiden luvalla. Aineistoa ei saa kopioida, levittää tai saattaa muuten yleisön saataviin ilman oikeudenhaltijoiden lupaa. Aineiston verkko-osoitteeseen saa viitata vapaasti. Aineistoa saa opiskelua, opettamista ja tutkimusta varten tulostaa omaan käyttöön muutamia kappaleita. Helsingin yliopiston Opiskelijakirjasto www.opiskelijakirjasto.lib.helsinki.fi [email protected] INTRODUCTION_______________________ Understanding Nokia's explosive growth okia is nothing less than a national institution in Finland because of its contribution to the national economy and its long history, but the keen interest in the company today stems more from its recent N success as Finland's first real world-class corporation. Yet this global role has been achieved so quickly and so quietly that the story of Nokia's rise to world prominence is little understood. Outsiders are fascinated by the Nokia story, as am I, and I shall tell it from my historian's perch in a way that provides a clear and complete record, focussing especially on the past 25 years. In the opening three chapters I attempt to answer some of the most frequently asked questions about the company, with a more detailed account to follow in later chapters. Links are indicated in the text for quick reference to the detailed story. Unlike many other published articles, books and studies of Nokia, this history was made possible in large part by unlimited access to documents in Nokia's files, most of them confidential until now. As a historian and researcher, I have applied academic rigor to these and all other sources of information. -
Nokia in 2014 at Nokia, We’Re Excited by Where Technology Will Lead Us
Nokia in 2014 At Nokia, we’re excited by where technology will lead us. We’re reimagining a world where technology blends into our lives. Technology that works for us, discreetly yet magically in the background, enriching our lives. But for some, this new technology world, where everything and everybody are connected, can be challenging. Fear of intrusion, technology that seems hard to understand or control, and the complexity of choice, can be overwhelming. That’s why our focus is, and has always been, on people. We work together, with our partners, customers, and across our businesses, to create human technology that helps people thrive. Effortless, simple, and intuitive technology, designed to enable new and extraordinary experiences in people’s lives each day. We see the possibilities of technology. The human possibilities. Read more online: company.nokia.com The year 2014 was one of fundamental rapidly evolving world of technology which is change for Nokia, a new chapter in our storied as much about connecting things as about history, which stretches back to the founding connecting people. We expect to see more of a small paper mill in southern Finland in than 50 billion connected things—devices, 1865. Following the sale of substantially all of modules and sensors—by year 2025. The our Devices & Services business to Microsoft opportunity is extraordinary—not just for us, (the “Sale of the D&S Business”), which was but for the world at large. completed on April 25, 2014, Nokia emerged with three businesses—Nokia Networks, HERE We have a powerful role to play in this and Nokia Technologies—and a significantly increasingly connected world. -
Nokia and Microsoft Join Forces in Smartphone War
NOKIA AND MICROSOFT JOIN FORCES IN SMARTPHONE WAR On the 11th of February 2011, Nokia Corporation announced the alliance with Microsoft Corporation, unveiling their aggressive strategy to challenge Google and Apple for domination of the hot smartphone market. In this strategic alliance, Nokia will use Microsoft’s mobile operating system (OP) Windows Phone on its smartphones. As per the deal, Windows Phone would replace Symbian as the primary OS on Nokia’s phones and Nokia would pay royalties to Microsoft for using its OS. Microsoft would in turn provide support to Nokia in selling its new Windows Phone powered smartphones. Nokia’s Canadian CEO, Stephen Elop, and Steve Ballmer, his Microsoft counterpart, announced that Nokia would make Windows Phone its main phone platform, a move that effectively confirms that Nokia’s own platforms, Symbian and MeeGo, were uncompetitive and they would be tossed onto the technology scrap heap. There were mixed reactions from analysts to the alliance between Nokia and Microsoft. The challenge before the senior management at Nokia and Microsoft was how to make the alliance work. Nokia once dominated the market for standard “feature phones” and smartphones, the Internet- enabled, multi-media devices that are becoming must-have tools for the business and high-end consumer markets. But Nokia’s Symbian OS has not proved popular with consumers, who have been migrating en masse to Android and Apple phones. As a result, Nokia began to face severe competition from companies like Google, Inc. and Apple, Inc. who entered the market for high-end smartphones after 2007. Analysts said Nokia’s poor focus on software and the lack of the latest OS on its smartphones were the main reasons for its declining market share in the last years.