10 OM DECISIONS

1. Service and product design

Nokia is one of the world's most known brands in the world. From humble beginnings Nokia has risen to dominate the world market for mobile phones. Nokia sold more than 200 million phones in 2004. There are three strategic assets that Nokia will invest in and prioritize: - Brand and design - Customer engagement and fulfilment - Technology and architecture Nokia has transformed innovative design into a central focus of the company's core business strategy. This last year they affirm they have "unleashed a torrent of creativity" that resulted in 50 new cell phone models this year alone. New technologies, such as wifi, are also a hot issue, as they try to plan their new mobile phones with these capabilities. A commitment to the environment is part of Nokia's driving principles too.

2. Quality management
Quality is at the heart of Nokias brand promise, very human technology. Nokia wants their customers to know that they are the best quality company in the industry with the best products and services, most loyal customers and most efficient operational mode. Quality is about meeting and exceeding customer expectations. At Nokia, quality is an integral part of business management. The quality of products and customer experiences depends on the quality of processes, which in turn is tied to the quality of management. Nokia's quality targets are: To be number one in customer and consumer loyalty To be number one in product leadership To be number one in operational excellence The quality and reliability of their products and services are among the most important factors driving customer satisfaction and loyalty. Designing good quality products begins with understanding customer requirements and creating the best user experience. The whole chain, from suppliers through to R&D, operations, sales and distribution to customers, impacts the end-result everybody in the chain has a role to play in achieving quality. Process management means finding the simplest way of operating, in order to create customer value in a lean manner. Processes are continuously improved based on the measures and the feedback Nokia receives from their customers.

Quality in management is vital for leveraging innovations globally and improving productivity in general. The approach to this is platform thinking, process management and combining fact-based management with values-based leadership. They have developed a key framework for improvement at Nokia, which is called the 'SelfRegulating Management System'. It's about management practices that allow them to run their business in a consistent, effective and fact-based manner. Commitment to quality improvement is a continuous management process. It is both a business strategy and a personal responsibility, and it is a part of their culture and values. But at the end of the day, quality improvement is much more than something Nokia can quantify in words or pictures. It is an attitude. By taking quality personally they are able to deliver world-class quality to our customers. Quality is the source of inspiration, energy and excitement.

3. Process, capacity design

Networks Technology China Finland India Customization and Logistics Centre United States Mobile Devices and Enhancements Brazil China Finland Germany Great Britain Hungary India

Mexico South Korea Nokia has production units all around the world.

McDonald's has even higher quality demands for the product producers than even what is needed by authorities. McDonald's works with partnershipprincipals in other words they make long-term customer relationships with product producers. Each of producers are chosen carefully. All of the routes are planned before hand to make sure that products are kept in ideal temperature during the whole journey. Because of good route planning, all the raw-materials arrive to restaurants fast and exactly. Quality standards make sure that restaurants get only safe, fresh and unmistakable. During the whole process from raw-materials to ready, delicious McDonald's food, they have strict controls. Each of McDonald's estimate their customer amounts per each hour and day. That guarantees that they make about right amount of products without throwing too many products away. As we earlier mentioned, they have strict time limits for products. If products are not sold, they will be thrown away.

4. Location
Nokia's mobile phones can be found throughout the world, in almost every country. Nokia's locations are divided into 5 main areas:

Nokia is constantly trying to gain new customers in new locations via their new technologies and innovative mobile devices. The Company is committed to responsible growth, especially in these years where the mobile sector is in continuous growth due to the new technologies, multimedia ingredients together, such as a fantastic display, outstanding photo and video capability and high-speed connectivity. Nokia has a website where they can help any customer around the world, whenever it is needed.

5.Layout Design
Layout design is quite the same all over the world. You can find the same symbol in every country.

Packages are environmentally friendly and easy to use, but vary from model to model. Nokia's layout is known throughout the world, with its phrase "connecting people" which is heard in every TV advertisement, and read in every other advert. A good layout design reduces effort from the mobile user, to recognise the company or even to use its devices. For example, the combination of smooth software support and good layout design makes messaging functions a strong point in any phone.

6.Human Resources and Job Design

A flat, networked organization, as well as speed and flexibility in decision-making, characterize the Nokia Way of working. Equal opportunities and openness towards people and new ideas are also key elements we want to nourish. Nokia provides individuals with a platform for personal growth in a challenging environment with a clear vision, goals and shared management principles - the Nokia Way. The Nokia Way brings together talented individuals who share these principles, and therefore share success. Nokias values are key components of the Nokia Way. Believing in these core values and living them every day is our common bond and shared philosophy. These values drive Nokia colleagues, wherever they are in the world. These are: Customer Satisfaction, Respect, Achievement and Renewal. Nokia encourages open discussion and debate. As an example, the annual globally conducted Listening to You employee survey is a powerful way of getting feedback from our employees on a range of important issues. Nokia listens to the views of their employees and act on them when designing their people policies and practices. Nokia provides employees with market competitive rewards through a flexible global structure, which can address diverse and changing business and employment environments, as well as specific individual preferences. Nokia rewards employees for good performance, competence development, and for overall company success. This creates a positive and encouraging environment with opportunities for employees to optimize their potential and be rewarded fairly. Higher performance and contribution will lead to higher rewards. The Nokia global market competitive rewards structure addresses the need for flexibility, personalization, empowerment and commitment. The basic salary is set to meet market conditions, the demands of the job and individual competence and performance. The variable part may consist of incentives or bonuses and other compensation, such as overtime pay and call-out pay. Additional local

rewards and benefits are also developed to complement the global programs and to ensure that the local market conditions are met. Nokia cares for its employee's right throughout the cycle of their working life: from induction and training, through development and advancement, and on to retirement. Nokia's Work-Life balance solutions mean that health benefits and possible local retirement benefits are tailored to individual needs according to factors such as tenure, contribution, performance, roles and responsibilities.

7.Supply-Chain Management
Nokia requires that all products and services sold under the Nokia brand are sourced according to practices which uphold internationally accepted standards. These sourcing practices also need to comply legally with human rights and workplace practices throughout the value chain. We are constantly developing our processes and overall supply-demand network set-up to efficiently meet this growing demand. This is a significant competitive advantage for us. Close cooperation with customers and suppliers is one of our core development principles. It allows end-to-end efficiency and speed key success factors for the entire supply chain. Openness and trust are important aspects when working together with suppliers and driving compliance. Some suppliers have well-developed corporate responsibility programs, while others need more support. The methods used to promote ethical considerations among our suppliers include the Nokia Supplier Requirements, face-to-face meetings, assessments, contractual agreements, training programs, and supplier-focused events. Supplier's locations:

Suppliers must: -have a properly documented Environmental Management System and a plan for its implementation

-have an environmental policy -know the environmental legislation and applicable regulations, and comply with them - have an appropriate environmental training program -take due consideration of environmental issues during research, development, manufacturing process design and production -upon request, declare the raw material content of its products delivered to nokia

8. Inventory management

9. Scheduling
We recognize the diverse needs of the individuals in the different phases of their lives. We can provide our employees with innovative solutions aiming at having positive effects on the overall quality of life, job satisfaction and job performance. Depending on the situation and needs, flexible working solutions can provide alternative modes of working such as teleworking at home or at other locations (e.g. working at remote sites). Flexi Time: Depending on the local market conditions, employees may take advantage of flexi time including flexible working hours and part-time working.

Time Off: Nokias flexible working solutions can include unpaid time off and sabbaticals. These solutions support Nokias philosophy of Employee Personal Growth and Selfmanagement and enable employees to take extented leave from work.

10. Maintenance