A PROJECT REPORT

ON
To study on Customer loyalty towards
NOKIA Mobile Handsets.

Project Report Submitted to Teerthankar Mahaveer University, Moradabad

(for partial fulfillment of the requirements for the award of the Degree)

MASTER OF BUSINESS ADMINISTRATION

Submitted by:
Gaurav Bhatnagar

Submitted On:

Under the guidance of

Internal Guide
Mr Himanshu Upadhyaye

TEERTHANKAR MAHAVEER UNIVERSITY,

MORADABAD
TABLE OF CONTENTS

a. Executive Summary
b. Introduction
c. Importance Of Study
d. Research Methodology
e. Data Analysis & Interpretation
f. Limitation
g. Findings &Conclusion
h. Suggestion
i. Bibliography
j. Questionnaires
INTRODUCTION OF PROJECT

CONSUMER PREFRENCE:

Customer loyalty, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation or how much loyal
towards the handset. It is seen as a key performance indicator within business and
is part of the four of a Balanced Scorecard. In a competitive marketplace where
businesses compete for customers, customer satisfaction and loyalty is seen as a
key differentiator and increasingly has become a key
element of business strategy

However, the importance of customer loyalty diminishes when a firm increased

bargaining power.
EXECUTIVE SUMMARY

Nokia is a mobile telecommunications company, and offers far more than

just mobile phones for everyday use. They offer networking solutions for

businesses that help businesses stay connected and communicate with each other at

all times and places. For them, Nokia also offers special mobile phones with

exquisite and unique functions and options. In this project, we will first talk about

what Nokia is and what they do.  We will talk about their history, and how they

came to where they are today. Vision, goals, and their strategy are discussed, as

well as their wide variety of products and services offered for the regular

consumer, businesses, and service providers. Nokia’s success benefits were some

advantages they had in the market. These also include the advance technology and

features, as well as services they offer to their consumers.  However, like most

other companies, Nokia has some weaknesses, but we consider these to be very

minimal, and almost only come down to their competition. Lastly, we will talk

about their informational business model. Nokia has recently undergone a major

organizational restructure.  As a result of this restructuring, Nokia has revised it

goal, mission and strategy into clear and specific objectives.  On Nokia’s website

they state, “Our goal is to be a good corporate citizen wherever we operate, as a

Responsible and contributing member of society. We take part in long-term

projects aimed at helping young people create their own place in the world, for

example through our global youth programs.”  They hope to fulfill their goal by

following their mission statement that is, “By connecting people, we help fulfill a

fundamental human need for social connections and contact. Nokia builds bridges

between people – both when they are far apart and face-to-face – and also bridges

the gap between people and the information they need.”  Nokia plans to achieve its

goal and pursue its mission by implementing its strategy of, “Expand mobile voice,

drive consumer multimedia and bring extended mobility to enterprises.”There are

many different products Nokia offers within a common product line.  This

common product line is cellular phones and accessories.  Nokia’s group structure is

slightly different than its employment structure.  The business structure is entirely

segmented while the employment structure is segmented but yet connected through

the manufacturing process.  The structure is actually segmented with separate

functions in each area (www.nokia.com). 

INTRODUCTION
Nokia has played a pioneering role in the growth of cellular technology in
India, starting with the first-ever cellular call a decade ago, made on a Nokia
mobile phone over a Nokia-deployed network.

Nokia started its India operations in 1995, and presently operates out of offices in
New Delhi, Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Pune and
Ahmedabad. The Indian operations comprise of the handsets business; R&D
facilities in Bangalore and Mumbai; a manufacturing plant in Chennai and a
Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength
increasing from 450 people in the year 2004 to over 15000 employees in March
2008 (including Nokia Siemens Networks). Today, India holds the distinction of
being the second largest market for the company globally.

Devices business

Nokia has established itself as the market and brand leader in the mobile
devices market in India. The company has built a diverse product portfolio to meet
the needs of different consumer segments and therefore offers devices across five
categories ie. Entry, Live, Connect, Explore and Achieve. These include products
that cater to first time subscribers to advanced business devices and high
performance multimedia devices for imaging, music and gaming.

Nokia has been working closely with operators in India to increase the
geographical coverage and lower the total cost of ownership for consumers. Today,
Nokia has one of the largest distribution network with presence across 1,30,000
outlets. In addition, the company also has Nokia Priority Dealers across the
country and Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur, Hyderabad,
Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a
complete mobile experience.

Services business

With the global launch of Ovi, the company's Internet services brand name,
Nokia is renewing itself to be at the forefront of the convergence of internet and
mobility. From being a product centric company, Nokia is now focusing to become
solutions centric. The strategic shift is built on Nokia’s bid to retain consumers and
empower Nokia device owners to realise the full potential of the Internet. Nokia
will build a suite of Internet based services like Nokia Maps, the Nokia Music
Store and Nokia N-Gage around its Ovi brand.

Infrastructure business

Nokia Siemens Networks is a leading global enabler of communications

services. The company provides a complete, well-balanced product portfolio of
mobile and fixed network infrastructure solutions and addresses the growing
demand for services with 20,000 service professionals worldwide. Its operations in
India include Sales & Marketing, Research & Development, Manufacturing and
Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia Siemens
Networks has 47 offices and presence in over 170 locations across the country.

R & D centers

Nokia has three Research & Development centers in India, based in

Bangalore and Mumbai. These R&D hubs are staffed by engineers who are
working on next-generation packet-switched mobile technologies and
communications solutions to enhance corporate productivity.

The Center in Bangalore, the biggest R&D site in the country comprises S60
Software Organization, Common Technologies, Next Generation now called
Maemo Software, Productization and Software & Services.

Nokia has three R&D centres in India, one each in Bangalore and Mumbai. The
centres are focused on next-generation packet-switched mobile technologies and
communications solutions to enhance corporate productivity. While all the three
centers are an integral part of Nokia’s global R&D infrastructure and therefore
work on global projects, these centres do play a pivotal role in assimilating local
flavors from the market and act as a conduit for information to the global product
development teams. Currently Nokia has 1000 people working on various R&D
projects.

Of the three, the Bangalore R&D centre is the largest Nokia site in India. It was
established in 2001 with the acquisition of Amber Networks. Over the years it has
played a pivotal role in the development of new applications, software platforms
and chipsets for high-end Nokia mobile devices. The software platform group
works on development of parts of the base services for the platform, application
frameworks, user interfaces and test tools. On the chipset side the work done in
India is mainly in the area of ASIC design, hardware design, integration and
verification, protocol software design and integration, speech and video codec
design and integration.

The facility today houses over 1200 employees across all teams namely S60,
Devices R&D, S&S operations and other enabling functions. The vision of the
centre is to be the most R&D centre globally by driving operational excellence and
innovation in hardware, software and internet services with great sense of pride.

The mission of the R&D centre is to become an innovation hub by leading the
internet revolution and making its operating platform the preferred choice. There is
a strong intent to make it a growth site for Nokia through development of
knowledge, resource and infrastructure building. To achieve this, the centre
encourages and fosters an environment that encourages people to be connected to
social networks; flexibility, sharing of best practices and spawning of new ideas
with both internal and external customers.

One of the focus areas of the Center is to increase the S60 invention flow through
intense training and focus. There have been other key initiatives which have
contributed significantly to the overall development of products and services. An
example is S60 Webservices and Webvideo programs have qualified to the semi –
finals in the Product Excellence Category of the Nokia Quality Award 2008.

At a broader perspective, the centre has been driving operational excellence and
innovation in hardware, software and internet services and today has to its credit
several great accomplishments. Going forward the Bangalore R&D centre will
continue to drive operational excellence and focus on several innovative initiatives.
It will continue to build and foster an ecosystem of Architects and Product
Managers, while delivering key technology programs to improve S60
competitiveness.

Design Studio

Nokia has set up its first Design Studio in Bangalore in partnership with
Srishti School of Art, Design and Technology. The first of its kind, the design
studio will give Nokia designers and India’s talented youth the opportunity to work
together on new design ideas for India and the global markets.
Manufacturing in India

Nokia has set up its mobile device manufacturing facility in Chennai, India
to meet the burgeoning demand for mobile devices in the country. The
manufacturing facility is operational with an investment of USD 210 million and
currently employs 8000 people. Nokia has recently announced fresh investments to
the tune of US $ 75 million towards its manufacturing plant in Sriperumbudur,
Chennai for the year 2008.

Nokia Manufacturing Plant- Sriperumbudur, Chennai

As the global leader in mobile communications, Nokia is committed towards

developing its manufacturing infrastructure and establishing a global sourcing
network. The Nokia India manufacturing facility located in Sriperumbudur,
Chennai is Nokia's tenth mobile device production facility globally and has been
created in line with Nokia's global philosophy of developing world class
manufacturing systems that enable best-in-class quality, lowest cost, world class
responsiveness, just in time delivery and a challenging and joyful work
environment.

Factory Highlights

 The factory construction from ground breaking to manufacturing of the first

product took 5 months
 Started with 550 people in January 2006, and grown to 8000 people

Spread over an area of 210.87 acres, Nokia started its operations with 550
employees in January 2006 and today boasts of 8000 employees, 70 percent of
whom are women. Currently the factory exports to 50+ countries in South East
Asia, Middle East, Africa, Australia and New Zealand, other than catering to
the demands of the domestic market. Nokia's manufacturing facility in India
reiterates its commitment to the fast growing Indian telecommunications market.

The Chennai facility has been built keeping in mind Nokia's commitment to
employee safety and in compliance with environmental standards. The quality
management and safety systems at the Nokia manufacturing facility in Chennai are
world class.

Nokia lays special emphasis on the well being of its employees and the Chennai
manufacturing site has a highly motivating work environment that is designed to
sustain a large & diverse talent pool. Nokia's employee practices are committed to
ethical conduct, full compliance to applicable national and international laws and
respect for human rights in the spirit of internationally recognized international
labour standards in the ILO conventions, the United Nations' Universal Declaration
of Human Rights and the Convention on Rights of the Child.

Nokia Telecom Park

Chennai was selected as the location for the Nokia Telecom Industry Park
due to the availability of skilled labor, support from the state government and the
presence of good logistics connections. The mission of the Nokia Telecom
Industry Park is to create a network of co-located and co-dependent partners that
operate at world class standards and manufacture high quality products.

Developing the Nokia Telecom Industry Park in Chennai into a world class high-
tech industrial zone is an important part of Nokia's global manufacturing and R&D
network strategy. The Telecom Industry Park not only underlines Nokia's
successful cooperation with the Indian government but also represents a unique
and optimized business model that will provide growth opportunities for all parties
in the value chain. The 210.87 acres of land in the Telecom Industry Park provides
Nokia with the benefits of a pollution free environment, in-house customs
clearance, and uninterrupted power supply.

With Nokia as the key enabler, the Telecom Park is expected to attract about 8
global and domestic component suppliers and service providers and create more
than 30,000 jobs when it is in full operation. This Nokia Telecom Park will ensure
that the Nokia India Chennai factory has a consistent supply of lowest total cost
material and services.

Nokia Telecom Industry Park

Construction update and facts

 Size - 210.87 acres

 External fencing around Nokia Telecom Industry Park - 5.7 km in length
 Area of main building: 30,748 m2
 Total amount of structural steel used in factory construction 2500 t
 Total Capacity of under ground water sump at factory 450 m3
 Project Safety target achieved - One Million man hours without Lost Time
Injury
The Nokia Telecom Park also has made significant progress with 7 suppliers
already signed up. These include Salcomp, Aspocomp, Foxconn, Perlos, Jabil,
Laird and Wintek. Of these, 2 suppliers have already started shipping to Nokia
Chennai viz., Salcomp and Perlos. The Park will strengthen Nokia's delivery
capabilities with added efficiencies and flexibility.

Nokia has been the engine of the investment train in Chennai's manufacturing
corridor. Many electronics manufacturing companies have announced plans to
come to the city since Nokia's establishment. The total impact of the Nokia SEZ
can be measured only by an assessment of the actual potential realized –
encompassing construction, direct employment and services opportunities that are
sure to come in response to the rising headcounts.

Since the launch, the Nokia facility and the Telecom Park have not only met the
targets set at the beginning, but created an extremely bullish atmosphere in the
Sriperumbudur manufacturing corridor. Nokia will continue to play a key and
leading role in the development of this region.
SOME FIRSTS FOR NOKIA IN INDIA
1995 – First mobile phone call made in India on a Nokia phone on a Nokia
network.

1998 - Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210)

2002 - First Camera phone (Nokia 7650)

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2004 - First Wi-fi Phone- Nokia Communicator (N9500)

2005 – Local UI in additional local language

2006 – Nokia manufacturing plant in Chennai

2007 – First vernacular news portal

Some Achievements for Nokia

 Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008
 Ranked the No 1. MNC in India by Business world, India’s leading business
weekly, 2006
 Ranked as the No. 1 telecommunications equipment vendor in the country
by Voice & Data for five consecutive years –2008, 2007, 2006,2005 and
2004
 Ranked as the 9th most powerful brand by Millward Brown’s BrandZ 2008
 Ranked world’s 4th most valuable brand by Interbrand, 2007
 Ranked Asia’s most trusted brand by the Media-Synovate, 2006
COMPANY VISSSION AND MISSION

March 2011

Nokia’s mission is simple, Connecting People.

Our strategic intent is to build great mobile products. Our job is to enable billions
of people everywhere to get more of life’s opportunities through mobile.

News - new strategy, new leadership, new operational structure

Nokia has recently outlined its new strategic direction, including changes in
leadership and operational structure to accelerate the company’s speed of
execution in a dynamic competitive environment.

Major elements of the new strategy include:

 Plans for a broad strategic partnership with Microsoft to jointly build a new
winning mobile ecosystem.
 A renewed approach to capture volume and value growth to connect ”the
next billion” to the Internet in developing growth markets
 Focused investments in next-generation disruptive technologies
 A new leadership team and organizational structure with a clear focus on
speed, results and accountability

“Nokia is at a critical juncture, where significant change is necessary and

inevitable in our journey forward,” said Stephen Elop, Nokia President and CEO.
“Today, we are accelerating that change through a new path, aimed at regaining
our smartphone leadership, reinforcing our mobile device platform and realizing
our investments in the future.”

The strategy

Nokia’s strategy is about investing in and ensuring Nokia’s future. “I have

incredible optimism because I can see fresh opportunity for us to innovate, to
differentiate, to build great mobile products, like never before, and at a speed that
will surpass what we have accomplished in the past,” Elop said. “We are going
forward. We are not going backwards. We have a strategy. We have a path. We
have a future. And we can deliver great mobile products. And despite all of these
changes, we remain true to our mission, that of Connecting People.”

Regaining our leadership in the smart phone space

Nokia plans to form a broad strategic partnership with Microsoft to jointly build a
global ecosystem that creates opportunities beyond anything that currently exists. It
brings together highly complementary assets and competences. The Nokia-
Microsoft ecosystem targets to deliver differentiated and innovative products with
unrivalled scale in product breadth, geographical reach, and brand identity.

Nokia would adopt Windows Phone as its primary smart phone platform, helping
drive and define the future of the platform by leveraging its expertise on hardware
optimization, software customization, and language support. Nokia and Microsoft
would also combine services assets to drive innovation. Nokia Maps, for example,
would be at the heart of key Microsoft assets such as Bing and Ad Center, and
Nokia’s application and content store would be integrated into Microsoft
Marketplace. Under the proposed partnership, Microsoft would provide developer
tools, making it easier for application developers to leverage Nokia’s global scale.

While Nokia transitions to the Windows Phone platform, Symbian will continue to
offer considerable value to Nokia, to our customers, developers and consumers.
200 million people use Symbian globally, and Nokia will modernize the platform
through investments in completely new devices with new features, hardware
improvements such as GHz+ processing capabilities and significantly increased
graphics speed, as well as software improvements.

Maintaining our volume and value leadership in the mobile phones space

In feature phones, Nokia’s strategy is to leverage its innovation and strength in

growth markets to connect the next billion people to their first Internet and
application experience. By providing compelling and affordable, localized mobile
experiences, particularly to the emerging markets, our ambition is to bring the next
billion online. We will continue the renewal of our Series 40 platform in
QWERTY, touch & type, dual SIM, Nokia services, including Maps, Browser,
Life Tools, Web apps and Money. We are also investing in the future; developing
assets (platform, software, apps), which will bring a modern mobile experience to
the mobile phone consumers and enable business opportunities for developers.
These investments will be especially focused on growth economies.
Sustaining our future as the world’s leading mobile manufacturer

To make sure we get ahead of the game on industry innovation evolution, our
MeeGo efforts will transition into an ongoing long-term market exploration of the
next generation of devices, platforms and user experiences.

New leadership team, operational structure and governance to drive the

change in strategy

This new strategy is supported by significant changes in Nokia’s leadership,

operational structure and approach. The renewed governance will expedite
decision-making and improve time-to-market of products and innovations, placing
a heavy focus on results, speed and accountability.
COMPANY STRUCTURE
Smart Devices: our business unit which focuses on smart phones, and additionally
on exploring next-generation opportunities in devices, platforms and user
experiences to support our industry position and longer-term financial
performance.

Mobile Phones: our business unit focused on bringing a modern and affordable
mobile experience to people around the world.

NAVTEQ: a leading provider of comprehensive digital map information and

related location-based content and services for mobile navigation devices,
automotive navigation systems, Internet-based mapping applications, and
government and business solutions.

Nokia Siemens Networks: jointly owned by Nokia and Siemens, is one of the
leading providers of telecommunications infrastructure hardware, software and
professional services globally.
COMPANY PRODUCTION UNIT

Networks technology
China
Finland
Germany
India

Mobile devices and technology

Brazil
China
Finland
GreatBritain
Hungary
India
Mexico
Romania
South Korea
STORY OF NOKIA
Nokia first century 1865-1967

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the
Nokianvirta river. Between 1865 and 1967, the company would become a major
industrial force; but it took a merger with a cable company and a rubber firm to set
the new Nokia Corporation on the path to electronics...

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-

western Finland, where the Nokia story begins.

1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's
rubber business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and
electronics businesses.
1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable

Works.

1960: First electronics department

Cable Works establishes its first electronics department, selling and operating
computers.

1962: First in-house electrical device

The Cable Works electronics department produces its first in-house electrical
device - a pulse analyzer for nuclear power plants.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to
create Nokia Corporation.

Move to mobile 1968-1991

The newly formed Nokia Corporation was ideally positioned for a pioneering role
in the early evolution of mobile communications. As European
telecommunications markets were deregulated and mobile networks became
global, Nokia led the way with some iconic products...
 1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia
and leading Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is
built.

The mobile era begins

Nordic network pioneers international mobile calling

A new era for mobile phones began in 1981, with the launch of the Nordic Mobile
Telephone (NMT) service.

Initially spanning several Nordic countries, the service was the world’s first
international cellular network. It was also the first to allow international
roaming, and caught on fast both inside and outside Europe.

Mobile explosion

With the introduction of the NMT standard, the mobile phone industry began to
expand rapidly.

Nokia soon introduced the first car phones to the network. The Mobira 450 car
phone came in 1982, followed by the portable in 1986. By this time the company
was also providing base stations and switches for NMT network operators.

Did you know?

As Nokia’s telecommunications business took off, its cable and rubber businesses
were still going strong. One of the great successes of the early 1970s was the
Kontio – a rubber boot that was available in different colors and proved a big hit
with all age groups.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into
operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone

1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman,

Mobile phones go handheld in 1987

The original mobile phones were heavy, bulky and usually permanently installed in
cars.

But 1987 saw a breakthrough: Nokia launched the Mobira Cityman, the first
handheld mobile phone for NMT networks and a model that was to become a
classic.

Seal of approval
Nokia’s mobile phones got a big publicity boost in 1987, when Soviet leader
Mikhail Gorbachev was pictured using a Cityman to make a call from Helsinki to
his communications minister in Moscow. This led to the phone’s affectionate
nickname of the "Gorba".

Vital statistics

The Mobira Cityman 900 weighed 800 grams and had a price tag of 24,000 Finnish
Marks (approximately EUR 4,560)

1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the

Nokia is a prime mover in digital standards

On July 1, 1991, Finnish Prime Minister Harri Holkeri made the world’s first
GSM call, using Nokia equipment.

It was an appropriate choice. From the start, Nokia was one of the key developers
of GSM technology. Its expertise in the new standard, coupled with the
deregulation of European telecommunications markets in the 1980s and 1990s,
was to be the cornerstone of its international success.

What is GSM?

The Global System for Mobile communications (GSM) was adopted in 1987 as the
European standard for digital mobile technology. This second generation
mobile technology could carry data as well as voice traffic.

GSM’s high-quality voice calls, easy international roaming and support for new
services like text messaging (SMS) laid the foundations for a worldwide boom in
mobile phone use.

Nokia was in the vanguard of GSM’s development, delivering its first GSM
network to the Finnish company Radiolinja in 1989. Nokia launched its first
digital handheld GSM phone, the Nokia 1011, in 1992.
By the end of the 1990s, Nokia had supplied GSM systems to more than 90
operators all over the world.

Did you know?

Nokia was the first manufacturer to make a series of handheld portable phones for
all major digital standards, including TDMA, PCN and Japan Digital, as well as
GSM.

Mobile revolution 1992-1999

In 1992, Nokia decided to focus on its telecommunications business. This

was probably the most important strategic decision in its history.

As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the
head of the mobile telephone industry’s global boom – and made it the world
leader before the end of the decade...

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia,

Jorma ollila mobile visionary

How telecommunications become Nokia’s core

When Jorma Ollila became President and CEO of Nokia in 1992, the company
made a crucial strategic decision: to focus on telecommunications and move out
of its other businesses.

During the 1990s, rubber, cable and consumer electronics divisions were gradually
sold as the company moved to concentrate on communications.

Nokia’s core business was now:

 manufacturing mobile phones

 manufacturing telecommunications systems
The strategy was to prove a big success, as Jorma Ollila’s long-term vision
propelled Nokia onto the world stage.

1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature
Nokia signature sounds

Nokia ringtone has classical roots

The Nokia Tune is probably one of the most frequently played pieces of music in
the world.

The company introduced it as a ringtone in 1994 with the Nokia 2100 series,
which went on to sell 20 million phones worldwide. Nokia’s target had been
400,000.

The tune comes from a classical guitar work called Gran Vals, composed by
Francisco Tarrega in the 19th century.

Ringtones have come a long way since 1994, and new phones offer dozens of
choices in a variety of formats. With the right phone, you can even create your
own.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.
 1997: Snake – a classic mobile game
The Nokia 6110 is the first phone to feature Nokia’s Snake game.

1998: Nokia leads the world

Nokia becomes the

Nokia becomes the world’s biggest mobile phone manufacturer

By 1998, Nokia’s focus on telecommunications and its early investment in GSM

technologies had made the company the world leader in mobile phones.

Expanding markets

For most of its history the company had exported to Europe, other Nordic countries
and the Soviet Union. As late as 1991, more than a quarter of its turnover still
came from sales in Finland.

But after the strategic change of 1992, Nokia saw a huge increase in sales to North
America, South America and Asia.

Soaring sales

The 1990s also saw unparalleled growth in global sales. Between 1996 and
2001, Nokia’s turnover increased almost fivefold from EUR 6.5 billion to EUR 31
billion.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the Nokia 7110.

Nokia now 2000- today

Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices
and a look to the future...

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650.

Nokia launches mobiles for a new generation

The launch of 3G ("third generation") technology meant mobiles would never be

the same again.

Nokia launched its first 3G phone, the Nokia 6650, in 2002. A vintage year for
innovation, 2002 also saw the launch of Nokia’s first phone with a built-in
camera, the Nokia 7650, and its first video capture phone, the Nokia 3650.

Expanding possibilities

With 3G, mobiles can do much more than just make calls. 3G means you can
use your phone to:

 download music
 make video calls
 watch TV on the move
 browse the web

2003: Nokia launches the N-Gage

Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
Entertainment and communication on the move

A new generation of multimedia devices was born in 2005 with the launch of the
Nokia Nseries.

The easy-to-use devices combine state-of-the-art technology with stylish design,

creating complete entertainment and communication packages.

Whether it’s taking your music collection mobile, shooting and editing feature-
length video or watching TV – see what you can do with the Nokia Nseries.

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia
Siemens Networks.

World leader

Today, Nokia is still the world’s number one manufacturer of mobile phones,
and one of the leading makers of mobile networks.

A new President

In 2006, Olli-Pekka Kallasvuo, formerly Nokia’s Chief Financial Officer, took

over as CEO from Jorma Ollila, who became chairman of Nokia’s Board of
Directors.
The next step: Nokia Siemens Networks

The next step in Nokia’s continuing evolution is already under way. In June 2006,
Nokia and Siemens announced plans to merge Nokia’s networks business and the
carrier-related operations of Siemens into a new company, to be called Nokia
Siemens Networks.

Nokia’s future

As mobile usage grows in the world’s emerging markets, Nokia will continue to
develop affordable mobile devices that can contribute to increased economic
growth and quality of life.

At the same time, mobile communications is converging with computing, digital

imaging and the internet, making it possible for people to use handheld devices for
filming video, listening to music, playing games, surfing the web and more. Nokia
is shaping this converging industry, pushing it forward with cutting-edge
products and the development of open standards.

Nokia’s success story is built on constant innovation. Our very human technology
is all about enhancing communication and exploring new ways to exchange
information. That’s why Nokia will never stop finding new ways of connecting
people.

2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.

2008
Nokia's three mobile device business groups and the supporting horizontal groups
are replaced by an integrated business segment, Devices & Services.
KEY DATA

2010 2009 Change

EURm EURm %
Net sales 42 446 40 984 4
Operating profit 2 070 1 197 73
Profit before taxes 1 786 962 85
Profit attributable to equity
1 850 891 108
holders of the parent
Research & development
5 863 5 909 1
expenses

2010 % 2009 %
Net debt to equity (gearing) -43 -25

ACQUSITION
During the past few years Nokia has been actively acquiring companies with
interesting new technologies and competencies, including also investments in
minority positions. All of these acquisitions and investments were targeted to
enhance Nokia's ability to help create the Mobile World.
Date Acquisition Target Nokia Unit
September 1, Motally Inc. Mobile
2010 Solutions
April 9, 2010 Novarra, Inc. Services

April 9, 2010 MetaCarta Inc. Services

September 28, Dopplr

Services
2009
September 11, Plum
Services
2009
cellity
August 5, 2009 Services

bit-side GmbH
February 9, 2009 Services

December 2, Symbian Nokia

2008 Corporation
November 4, OZ Communications Services &
2008 Software
PLAZES Services &
July 15, 2008
Software
NAVTEQ Nokia
July 10, 2008
Corporation
Trolltech
June 17, 2008 Devices

December 4, Avvenu Enterprise

2007 solutions
Enpocket Nokia
October 8, 2007
Corporation
July 24, 2007 Twango Multimedia
October 16, 2006 Loudeye Corp. Multimedia
 gate5 AG
October 12, 2006 Multimedia

June 30, 2006 LCC International's U.S. deployment business Networks

February 10, Intellisync Corp. Enterprise

2006 Solutions
Metrowerks Corporation Nokia
October 18, 2004
Corporation
November 3, Tahoe Networks
Nokia Networks
2003
Sega.com Inc. Nokia Mobile
August 19, 2003
Phones
Eizel Technologies(TM) Nokia Internet
April 22, 2003
Communications
Redback Networks Inc.
May 22, 2002 Nokia Networks

Amber Networks Inc.

July 25, 2001 Nokia Networks

F5 Networks Inc. Nokia Internet

June 28, 2001
Communications
December 7, Ramp Networks Inc. Nokia Internet
2000 Communications
NGI Industrial (NGI) Nokia Mobile
October 20, 2000
Phones
DiscoveryCom Inc.
August 8, 2000 Nokia Networks

Network Alchemy Inc. Nokia Internet

February 1, 2000
Communications
Nokia Wireless
December 13, Security software business from TeamWARE
Group Network
1999
Solutions
Telekol Group Nokia Internet
October 22, 1999
Communications
 Rooftop Communications Corp
September 2,
Nokia Networks
1999

Aircom International
June 30, 1999 Nokia Networks

R&D units from TeamWARE Group Nokia Mobile

May 14, 1999
Phones
Nokia Wireless
February 18, InTalk Corp
Business
1999
Communications
February 16, Diamond Lane Communications
Nokia Networks
1999
December 18, Vienna Systems Corp Nokia Internet
1998 Communications
September 17, NE-Products Oy Nokia Mobile
1998 Phones
Nokia
User Interface Design
August 20, 1998 Communications
Products
Matra Nortel Communications Nokia Mobile
June 25, 1998
Phones
December 9, Ipsilon Networks Inc
Nokia Networks
1997

DIVESTMENT
During the past few years Nokia has been divesting businesses
which have not a critical component to our vision of The Mobile World. This
strategy has enabled Nokia to focus on shareholder value by concentrating on the
core competencies and business areas where we see the most value added and the
best growth opportunities.
Date Divestiture Target Nokia Unit
November 30, Nokia's wireless modem business Nokia Corporation
2010
July 12, 2010 MetaCarta’s enterprise business Nokia Corporation

December 1, 2009 Venyon Nokia Corporation

October 16, 2009 Nokia's Symbian Professional Services Nokia Corporation

April 14, 2009 Nokia's security appliance business Services

June 16, 2008 Nokia's line fit automotive business Devices

June 02, 2008 Nokia's Adaptation Software R&D entity Nokia Corporation

May 16, 2008 Nokia's Identity Systems Services &

Software
November 5, 2007 3G chipset development Nokia Corporation

March 18, 2005 Nextrom Holding Nokia Corporation

September 5, 2005 Professional Mobile Radio business Networks

March 18, 2005 Nextrom Holding Nokia Corporation

August 30, 2001 Part of mobile core related R&D Nokia Networks

March 13, 2001 Narrowband access products Nokia Networks

June 13, 2000 Cabling and electromechanical units Nokia Networks

January 17, 2000 Nokia Display Products' branded business Nokia Display
Products
January 10, 2000 Monitor manufacturing unit in Hungary Nokia Display
 Products
November 1, 1999 SHD/DWDM business Nokia Networks

October 1, 1999 Salcomp Oy Nokia

Communications
Products
September 9, 1998 Mobile radios and printed circuit boards Nokia Networks

August 7, 1998 LK-Products Oy Nokia Mobile

Phones
March 3, 1998 Autoliv Nokia AB Nokia Industrial
Electronics
December 23, 1997 Loudspeaker Operations Nokia Industrial
Electronics
February 7, 1997 Tuner Operations Nokia Multimedia
Network Terminals
July 17, 1996 Television production Nokia General
Communications
Products
March 18, 1996 Cable Business / NKF Holding NV Nokia
Communications
Products

FORWARD-LOOKING STATEMENTS

March 2011

It should be noted that certain statements herein which are not historical facts are
forward-looking statements, including, without limitation, those regarding:
A. the intention to form a strategic partnership with Microsoft to combine
complementary assets and expertise to form a global mobile ecosystem and to
adopt Windows Phone as our primary smartphone platform, including the expected
plans and benefits of such partnership;
B. the timing and expected benefits of our new strategy, including expected
operational and financial benefits and targets as well as changes in leadership and
operational structure;
C. the timing of the deliveries of our products and services;
D. our ability to innovate, develop, execute and commercialize new
technologies, products and services;
E. expectations regarding market developments and structural changes;
F. expectations and targets regarding our industry volumes, market share,
prices, net sales and margins of products and services;
G. expectations and targets regarding our operational priorities and results of
operations;
H. expectations and targets regarding collaboration and partnering
arrangements;
I. the outcome of pending and threatened litigation;
J. expectations regarding the successful completion of acquisitions or
restructurings on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such acquisition or restructuring; and
K. statements preceded by "believe," "expect," "anticipate," "foresee," "target,"
"estimate," "designed," "plans," "will" or similar expressions.

These statements are based on management's best assumptions and beliefs in

light of the information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results that we currently
expect. Factors that could cause these differences include, but are not limited to:

1. whether definitive agreements can be entered into with Microsoft for the
proposed partnership in a timely manner, or at all, and on terms beneficial to us;
2. our ability to succeed in creating a competitive smartphone platform for
high-quality differentiated winning smartphones or in creating new sources of
revenue through the proposed partnership with Microsoft;
3. the expected timing of the planned transition to Windows Phone as our
primary smartphone platform and the introduction of mobile products based on that
platform;
4. our ability to maintain the viability of our current Symbian smartphone
platform during the transition to Windows Phone as our primary smartphone
platform;
5. our ability to realize a return on our investment in MeeGo and next
generation devices, platforms and user experiences;
6. our ability to build a competitive and profitable global ecosystem of
sufficient scale, attractiveness and value to all participants and to bring winning
smartphones to the market in a timely manner;
7. our ability to produce mobile phones in a timely and cost efficient manner
with differentiated hardware, localized services and applications;
8. our ability to increase our speed of innovation, product development and
execution to bring new competitive smartphones and mobile phones to the market
in a timely manner;
9. our ability to retain, motivate, develop and recruit appropriately skilled
employees;
10. our ability to implement our strategies, particularly our new mobile product
strategy;
11. the intensity of competition in the various markets where we do business and
our ability to maintain or improve our market position or respond successfully to
changes in the competitive environment;
12. our ability to maintain and leverage our traditional strengths in the mobile
product market if we are unable to retain the loyalty of our mobile operator and
distributor customers and consumers as a result of the implementation of our new
strategy or other factors;
13. our success in collaboration and partnering arrangements with third parties,
including Microsoft;
14. the success, financial condition and performance of our suppliers,
collaboration partners and customers;
15. our ability to manage efficiently our manufacturing and logistics, as well as
to ensure the quality, safety, security and timely delivery of our products and
services;
16. our ability to source sufficient amounts of fully functional quality
components, subassemblies and software on a timely basis without interruption and
on favorable terms;
17. our ability to manage our inventory and timely adapt our supply to meet
changing demands for our products;
18. our ability to successfully manage costs;
19. our ability to effectively and smoothly implement the new operational
structure for our devices and services business effective April 1, 2011;
20. the development of the mobile and fixed communications industry and
general economic conditions globally and regionally;
21. exchange rate fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the Japanese yen and the
Chinese yuan, as well as certain other currencies;
22. our ability to protect the technologies, which we or others develop or that we
license, from claims that we have infringed third parties' intellectual property
rights, as well as our unrestricted use on commercially acceptable terms of certain
technologies in our products and services;
23. our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens
Networks patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property rights of these
technologies;
24. the impact of changes in government policies, trade policies, laws or
regulations and economic or political turmoil in countries where our assets are
located and we do business;
25. any disruption to information technology systems and networks that our
operations rely on;
26. unfavorable outcome of litigations;
27. allegations of possible health risks from electromagnetic fields generated by
base stations and mobile products and lawsuits related to them, regardless of merit;
28. our ability to achieve targeted costs reductions and increase profitability in
Nokia Siemens Networks and to effectively and timely execute related
restructuring measures;
29. Nokia Siemens Networks' ability to maintain or improve its market position
or respond successfully to changes in the competitive environment;
30. Nokia Siemens Networks' liquidity and its ability to meet its working capital
requirements;
31. whether Nokia Siemens Networks' acquisition of the majority of Motorola's
wireless network infrastructure assets will be completed in a timely manner, or at
all, and, if completed, whether Nokia Siemens Networks is able to successfully
 integrate the acquired business, cross-sell its existing products and services to
customers of the acquired business and realize the expected synergies and benefits
of the planned acquisition;
32. Nokia Siemens Networks' ability to timely introduce new products, services,
upgrades and technologies;
33. Nokia Siemens Networks' success in the telecommunications infrastructure
services market and Nokia Siemens Networks' ability to effectively and profitably
adapt its business and operations in a timely manner to the increasingly diverse
service needs of its customers;
34. developments under large, multi-year contracts or in relation to major
customers in the networks infrastructure and related services business;
35. the management of our customer financing exposure, particularly in the
networks infrastructure and related services business;
36. whether ongoing or any additional governmental investigations into alleged
violations of law by some former employees of Siemens AG may involve and
affect the carrier-related assets and employees transferred by Siemens AG to Nokia
Siemens Networks;
37. any impairment of Nokia Siemens Networks customer relationships
resulting from ongoing or any additional governmental investigations involving the
Siemens carrier-related operations transferred to Nokia Siemens Networks; as well
as the risk factors specified on pages 12-39 of Nokia's annual report Form 20-F for
the year ended December 31, 2010 under Item 3D. "Risk Factors."

Other unknown or unpredictable factors or underlying assumptions subsequently

proving to be incorrect could cause actual results to differ materially from those in
the forward-looking statements. Nokia does not undertake any obligation to
publicly update or revise forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent legally required.

NOKIA LEADERSHIP TEAM

February 2011

Our articles of association provide for a Nokia Leadership Team, which is

responsible for managing the operations of Nokia. The Chairman and the members
of the Nokia Leadership Team are appointed by the Board of Directors. Only the
Chairman of the Nokia Leadership Team can be a member of both the Board of
Directors and the Nokia Leadership Team. The current members of our Nokia
Leadership Team are set forth below.

Chairman
Stephen Elop

President and CEO

Esko Aho

Executive Vice President, Corporate Relations and Responsibility

Jerri DeVard

Executive Vice President, Chief Marketing Officer

Colin Giles

Executive Vice President, Sales

Richard Green

Executive Vice President, Chief Technology Officer

Jo Harlow

Executive Vice President, Smart Devices

Timo Ihamuotila

Executive Vice President, Chief Financial Officer

Mary T. McDowell

Executive Vice President, Mobile Phones

Tero Ojanperä

Executive Vice President, acting Head of Services and Developer Experience

Louise Pentland

Executive Vice President, Chief Legal Officer

Niklas Savander

Executive Vice President, Markets

Juha Äkräs

Executive Vice President, Human Resources

Dr. Kai Öistämö

Executive Vice President, Chief Development Officer

BOARD OF DIRECTORS
 Nokia Board of Directors consists of the following nine members: Lalita D.
Gupte, Bengt Holmström, Henning Kagermann, Per Karlsson, Isabel Marey-
Semper, Jorma Ollila, Marjorie Scardino, Risto Siilasmaa and Keijo Suila.

Chairman
Jorma Ollila

Vice Chairman

Dame Marjorie Scardino

 Lalita D. Gupte
 Dr. Bengt Holmström
 Dr. Henning Kagermann
 Per Karlsson
 Isabel Marey-Semper
 Risto Siilasmaa
 Keijo Suila

The operations of the company are managed under the direction of the Board of
Directors, within the framework set by the Finnish Companies Act and our Articles
of Association as well as any complementary rules of procedure as defined by the
Board, such as the Corporate Governance Guidelines and related Board Committee
charters.

The responsibilities of the Board of Directors

The Board represents and is accountable to the shareholders of the company. The
Board's responsibilities are active, not passive, and include the responsibility
regularly to evaluate the strategic direction of the company, management policies
and the effectiveness with which management implements them. The Board's
responsibilities also include overseeing the structure and composition of the
company's top management and monitoring legal compliance and the management
of risks related to the company's operations. In doing so, the Board may set annual
ranges and/or individual limits for capital expenditures, investments and
divestitures and financial commitments not to be exceeded without Board
approval.
Nokia has a Risk Policy which outlines Nokia's risk management policies and
processes and is approved by the Audit Committee. The Board's role in risk
oversight includes risk analysis and assessment in connection with each financial
and business review, update and decision-making proposal and is an integral part
of all Board deliberations. The Audit Committee is responsible for, among other
matters, risk management relating to the financial reporting process and assisting
the Board's oversight of the risk management function. Nokia applies a common
and systematic approach to risk management across all business operations and
processes based on a strategy approved by the Board. Accordingly, risk
management at Nokia is not a separate process but a normal daily business and
management practice.
The Board has the responsibility for appointing and discharging the Chief
Executive Officer, the Chief Financial Officer and the other members of the Group
Executive Board. The Chief Executive Officer, who is separate from Chairman,
also acts as President, and his rights and responsibilities include those allotted to
the President under Finnish law. Subject to the requirements of Finnish law, the
independent directors of the Board confirm the compensation and the employment
conditions of the Chief Executive Officer upon the recommendation of the
Personnel Committee. The compensation and employment conditions of the other
members of the Group Executive Board are approved by the Personnel Committee
upon the recommendation of the Chief Executive Officer.

The basic responsibility of the members of the Board is to act in good faith and
with due care so as to exercise their business judgment on an informed basis in
what they reasonably and honestly believe to be in the best interests of the
company and its shareholders. In discharging that obligation, the directors must
inform themselves of all relevant information reasonably available to them. The
Board and each Board Committee also have the power to hire independent legal,
financial or other advisors as they deem necessary.

The Board conducts annual performance self-evaluations, which also include

evaluations of the Board Committees' work, the results of which are discussed by
the Board. In 2009, the self-evaluation process consisted of a questionnaire, a one-
to-one discussion between the Chairman and each director and a discussion by the
entire Board of the outcome of the evaluation, possible measures to be taken, as
well as measures taken based on the Board's self-evaluation of the previous year.
In addition, performance of the Board Chairman was evaluated in a process led by
the Vice Chairman.
Election, composition and meetings of the Board of Directors

Pursuant to the Articles of Association, Nokia Corporation has a Board of

Directors composed of a minimum of seven and a maximum of 12 members. The
members of the Board are elected for a term of one year at each Annual General
Meeting, i.e., as from the close of that Annual General Meeting until the close of
the following Annual General Meeting, which convenes each year by June 30. The
Annual General Meeting held on May 6, 2010 elected 10 members to the Board of
Directors. The members of the Board of Directors elected by the Annual General
Meeting in 2010 are Lalita D. Gupte, Dr. Bengt Holmström, Prof. Dr. Henning
Kagermann, Olli-Pekka Kallasvuo, Per Karlsson, Jorma Ollila, Dame Marjorie
Scardino, Isabel Marey-Semper, Risto Siilasmaa and Keijo Suila. Olli-Pekka
Kallasvuo resigned from the Board of Directors as from September 10, 2010.

Nokia's Board leadership structure consists of a Chairman and Vice Chairman,

annually elected by the Board and confirmed by the independent directors of the
Board from among the Board members upon the recommendation of the Corporate
Governance and Nomination Committee. On May 6, 2010, the independent
directors of the Board elected Jorma Ollila to continue to act as Chairman and
Dame Marjorie Scardino to continue to act as Vice Chairman of the Board. The
Chairman has certain specific duties as defined by Finnish standards and the Nokia
Corporate Governance Guidelines. The Board has determined that Nokia Board
Chairman, Mr. Ollila, is independent as defined by Finnish standards, and also
under the New York Stock Exchange rules since June 1, 2009. The Vice Chairman
of the Board shall assume the duties of the Chairman in case the Chairman is
prevented from performing his duties. The Board has determined that Nokia Board
Vice Chairman, Dame Marjorie Scardino, is also independent as defined by
Finnish standards and relevant stock exchange rules and has been independent
since being appointed Vice Chairman in 2007.

The current members of the Board are all non-executive, except the
President and CEO who was an executive member of the Board until his
resignation on September 10, 2010. The Board has determined that all nine non-
executive Board members are independent as defined by Finnish standards. Also,
the Board has determined that eight of the Board's current nine non-executive
members are independent directors as defined by the rules of the New York Stock
Exchange. Dr. Bengt Holmström was determined not to be independent under the
rules of the New York Stock Exchange due to a family relationship with an
executive officer of a Nokia supplier of whose consolidated gross revenue from
Nokia accounts for an amount that exceeds the limit provided in the New York
Stock Exchange rules, but that is less than 8%. The executive member of the
Board, President and CEO Olli-Pekka Kallasvuo, was determined not to be
independent under both Finnish standards and the New York Stock Exchange
rules. Olli-Pekka Kallasvuo resigned from the Board of Directors as from
September 10, 2010.

Also in January 2010 the Board has determined that all of the members of the
Audit Committee, including its Chairman, are "audit committee financial experts"
within the meaning of the Sarbanes-Oxley-Act of 2002 and the subsequent
regulations by the US Securities and Exchange Commission.

The Board held 13 meetings during 2009, of which seven were regularly scheduled
meetings held in person and six were meetings held in writing. The attendance at
all meetings was 100%. The non-executive directors meet without management at
regularly scheduled sessions twice a year and at such other times as they deem
appropriate, in practice in connection with each regularly scheduled meeting in
2009. Such sessions were chaired by the non-executive Chairman of the Board or,
in his absence, the non-executive Vice Chairman of the Board. In addition, the
independent directors meet separately at least once annually, and did so in 2009.
All the directors attended Nokia's Annual General Meeting held on May 6, 2010.
The Finnish Corporate Governance Code recommends attendance by the Board
Chairman and a sufficient number of directors to allow the shareholders to exercise
their right to present questions to the Board and management.

The independent directors of the Board also confirm the election of the members
and Chairmen for the Board's committees from among the Board's independent
directors upon the recommendation of the Corporate Governance and Nomination
Committee and based on each committee's member qualification standards.

According to Finnish law, the shareholders have the right to submit director
recommendations or other agenda items or proposals to the agenda of a general
meeting provided that the item or proposal belongs to the scope of the general
meeting of the shareholders and the request is made to the Board in writing well in
advance to be included in the notice of the meeting, which time may not be
deemed to be earlier than four weeks before the notice of the meeting.

COMMITTEES OF THE BOARD

May2010

The Audit Committee consists of a minimum of three members of the Board who
meet all applicable independence, financial literacy and other requirements of
Finnish law and the rules of the stock exchanges where Nokia shares are listed,
including NASDAQ OMX Helsinki and the New York Stock Exchange. Since
May 6, 2010, the Audit Committee consists of the following three members of the
Board: Risto Siilasmaa (Chairman), Lalita D. Gupte and Isabel Marey-Semper.

The Audit Committee is established by the Board primarily for the purpose of
overseeing the accounting and financial reporting processes of the company and
audits of the financial statements of the company. The Committee is responsible
for assisting the Board's oversight of (1) the quality and integrity of the company's
financial statements and related disclosure, (2) the statutory audit of the company's
financial statements, (3) the external auditor's qualifications and independence, (4)
the performance of the external auditor subject to the requirements of Finnish law,
(5) the performance of the company's internal controls and risk management and
assurance function, (6) the performance of the internal audit function, and (7) the
company's compliance with legal and regulatory requirements. The Committee
also maintains procedures for the receipt, retention and treatment of complaints
received by the company regarding accounting, internal controls, or auditing
matters and for the confidential, anonymous submission by employees of the
company of concerns regarding accounting or auditing matters. Our disclosure
controls and procedures, which are reviewed by the Audit Committee and
approved by the Chief Executive Officer and the Chief Financial Officer, as well
as our internal controls over financial reporting are designed to provide reasonable
assurance regarding the quality and integrity of the company's financial statements
and related disclosures. The Disclosure Committee chaired by Chief Financial
Officer is responsible for preparation of the quarterly and annual results
announcements, and the process includes involvement by business managers,
business controllers and other functions, like internal audit, as well as a final
review and confirmation by the Audit Committee and the Board.

Under Finnish law, Nokia's external auditor is elected by our shareholders by a

simple majority vote at the Annual General Meeting for one fiscal year at a time.
The Audit Committee makes a proposal to the shareholders in respect of the
appointment of the external auditor based upon its evaluation of the qualifications
and independence of the auditor to be proposed for election or re-election. Also
under Finnish law, the fees of the external auditor are approved by our
shareholders by a simple majority vote at the Annual General Meeting. The
Committee makes a proposal to the shareholders in respect of the fees of the
external auditor, and approves the external auditor's annual audit fees under the
guidance given by the shareholders at the Annual General Meeting

In discharging its oversight role, the Committee Has full access to all company
books, records, facilities and personnel. The Committee may retain counsel,
auditors or other advisors in its sole discretion, and must receive appropriate
funding, as determined by the Committee, from the company for the payment of
compensation to such outside advisors.

The Audit Committee meets at least four times a year based upon a schedule
established at the first meeting following the appointment of the Committee. The
Committee meets separately with the representatives of Nokia’s management, head
of the internal audit function, and the external auditor in connection with each
regularly scheduled meeting. The head of the internal audit function has at all time
direct access to the Audit Committee, without involvement of management. The
Audit Committee had six meetings in 2009. The average ratio of attendance at the
meetings was 100%. In addition, any directors who wish to may attend Audit
Committee Meetings as non voting observers.

The Personnel Committee

The Personnel Committee consists of a minimum of three members of the Board

who meet all applicable independence requirements of Finnish law and the rules of
the stock exchanges where Nokia shares are listed, including NASDAQ OMX
Helsinki and the New York Stock Exchange. Since May 6, 2010, the Personnel
Committee consists of the following four members of the Board: Per Karlsson
(Chairman), Prof. Dr. Henning Kagermann, Dame Marjorie Scardino and Keijo
Suila.

The primary purpose of the Personnel Committee is to oversee the personnel

policies and practices of the company. It assists the Board in discharging its
responsibilities relating to all compensation, including equity compensation, of the
company's executives and the terms of employment of the same. The Committee
has overall responsibility for evaluating, resolving and making recommendations
to the Board regarding (1) compensation of the company's top executives and their
employment conditions, (2) all equity-based plans, (3) incentive compensation
plans, policies and programs of the company affecting executives and (4) other
significant incentive plans. The Committee is responsible for overseeing
compensation philosophy and principles and ensuring the above compensation
programs are performance-based, properly motivate management, support overall
corporate strategies and are aligned with shareholders’ interests. The Committee is
responsible for the review of senior management development and succession
plans.

The Personnel Committee had four meetings in 2009. The attendance ratio at the
meetings was 94%. Three members of the Committee attended 100% of the
Committee meetings and one member attended 75% of the meetings. In addition,
any directors who wish to may attend Personnel Committee meetings as nonvoting
observers.

The Corporate Governance and Nomination Committee

The Corporate Governance and Nomination Committee consists of three to five

members of the Board who meet all applicable independence requirements of
Finnish law and the rules of the stock exchanges where Nokia shares are listed,
including NASDAQ OMX Helsinki and the New York Stock Exchange. Since
May 6, 2010, the Corporate Governance and Nomination Committee consists of
the following three members of the Board: Dame Marjorie Scardino (Chairman),
Per Karlsson and Risto Siilasmaa.

The Corporate Governance and Nomination Committee's purpose is

(1) to prepare the proposals for the general meetings in respect of the composition
of the Board and the director remuneration to be approved by the shareholders, and

(2) to monitor issues and practices related to corporate governance and to propose
necessary actions in respect thereof.

The Committee fulfills its responsibilities by

(i) actively identifying individuals qualified to become members of

the Board,
 (ii) recommending to the shareholders the director nominees for
election at the Annual General Meetings,
(iii) monitoring significant developments in the law and practice of
corporate governance and of the duties and responsibilities of
directors of public companies,

(iv) Assisting the Board and each committee of the Board in its annual
performance self-evaluations, including establishing criteria to be used in
connection with such evaluations, and

(iv) Developing and recommending to the Board and administering

Nokia’s Corporate Governance Guidelines, and
(v) Reviewing the company's disclosure in the Corporate Governance
Statement.

The Committee has the power to retain search firms or advisors to

identify candidates. The Committee may also retain counsel or other
advisors, as it deems appropriate. The Committee has sole authority to
retain or terminate such search firms or advisors and to review and
approve such search firm or advisor's fees and other retention terms. It is
the Committee's practice to retain a search firm to identify director
candidates each time a new director candidate is searched for.

The Corporate Governance and Nomination Committee had three

meetings in 2009. The attendance at all meetings was 100%. In addition,
any directors who wish to may attend Corporate Governance and
Nomination Committee meetings as nonvoting observers.

SWOT ANALYSIS OF NOKIA

 SWOT analysis is the tool which helps the organization to understand where
it stands. The SWOT analysis of Nokia make it understand that where Nokia stand
in the market.

Strengths

Nokia has the strong brand name which is its one of the most important strength
because it is then favorable for Nokia to launch its new products because it is
reliable for the customers by establish as strong brand.

Its distribution network is wide globally so the products are easily available for the
target customers.

Nokia has also strong finances which make it possible to make innovations easily. 
Nokia products are easy to use for everyone, even an illiterate person in some
developing countries use Nokia easily.

Nokia has high range of products which is attractive for the customers. Nokia
mobile sets have high re-sell value as compared to others which is favorable for
Nokia as well as for the customers.

Weaknesses

Nokia have high prices as compared to others but its good quality and reliable
products somehow cover this weakness of Nokia but still it is weakness and lower
class is unable to purchase Nokia products.

Some of the Nokia products are not user friendly which didn’t get success in the
market.

Nokia’s sales and service centers are very few therefore its after sale service is not
impressive. If the customers face the problem in the product then they have to face
difficulty.

Opportunities

Nokia can expend its market share by introducing brand in new market and by
catering new target market as well.
It can also capture more market share and attract more customers in existing
market by changing price and introducing new product range and also by
innovating product features of existing products.

Telecommunication market is growing rapidly and more people are being

interested towards the industry so it is great opportunity for Nokia to expand
market share and to grow as well.

Through excessive advertisement and effective market communication it can

strong its reputation and increase its sales and also create good brand image among
the people.

Nokia itself becoming the item of everyday convenience the day is not so far that it
will become the item of every day use.

Threats

As the telecommunication industry is increasing with that not only opportunities

increasing but also threats are equally increasing with the growth of the telecom
industry.

The completion is getting explosive with the growth of the market. More and more
competitors are entering in the market which is a big threat for Nokia.

Some competitors offer products at low prices and as the economy is falling down
the customers are more attracting towards the products of low prices. So those
competitors can take away the market share of Nokia.

Another threat for Nokia is the growth of WLL network because Nokia provides
CDMA cell phones so its products can go toward the down fall with the rise of
WLL network
IMPORTANCE OF STUDY

Today consumers have a lot of option for every product, same for Mobile

handset specially in every segment.

This study may be helpful for company to know about the factor affecting the

buying behavior of consumer. It may also be helpful to know the specific

requirements of consumer so that it can easily satisfied the consumer. Moreover

this study helps to know the buying problems and what are their preferences for

buying Handset.

The study may helpful for company to know the preference for company to know

the preference of consumer for product and it would help in making marketing

strategy.
 RESEARCH OBJECTIVE

i. To know brand awareness about new launches of Nokia.

ii. To Customers satisfaction level and loyalty level.

iii. To Study which brand is popular in Moradabad and surroundings areas and
why.

iv. To study customer feed back regarding handset, service.

RESEARCH METHODOLOGY

Research may be defined as the search for knowledge through an objective and
scientific method of finding solution of problem. Research methodology is a way
to systematically solve the research problem. It includes the various steps that are
generally adopted by a researcher in studying problem along with the logic
behind them. During my research I have adopted the following research design.

1. To decide the objective and subjective of the research.

2. To determine the most suitable method of research.

3. To determine the sources of data.

4. To decide the appropriate research instrument for data collection.

5. To determine the suitable sampling design and sampling size.

6. To conduct the field survey for data collection.

7. To prepare the research report.

Descriptive Research

This method is undertaken when the researcher is interested in knowing about the
characteristics of certain groups such as age, sex, education level, income.
Interested in knowing the proportion of unit in a given population who behaved in
a particular way, determining the relationship between two or more variable.

This method was the most suitable in my research work.

RESEARCH DESIGN

A research design specifies the methods and procedures for conducting a particular
study.

Research design is the plan, structure and strategy of investigation conceived so as

to obtain answers to research questions and to control variance.

TYPES OF RESEARCH DESIGN

Research design have been classified in different ways, such as—

 Exploratory Research Design

 Descriptive Research Design
 Casual research Design
 Descriptive Research Design

Descriptive research studies are those studies which are concerned with described
the characteristics of particular individual. In descriptive as well as in diagnostic
studies, the researcher must find be able to definite clearly, what he wants to
measure and must find adequate methods for measuring it along with a clear cut
definition of ‘population’ he wants to study. Since the aim is to obtain complete
and accurate information in the said studies, the procedure to be used must be
carefully planned. The research design must make enough provision for protection
against bias and must maximize reliability, with due concern for the economical
completion of the research study.

I have chosen descriptive research descriptive research design which is well

structured. The objectives of such is to answer the “who, what, when and how” of
the subject under investigation.

Descriptive studies can be divided in to two broad categories cross sectional and
longitudinal.

So, here I have chosen a cross sectional study which is concerned with a sample of
elements from a given population. Cross sectional studies are two types-
a. Field Studies
b. Survey
I have taken survey research because a major strength of survey research is its
wide scope. Detailed information can be obtained from a sample of a large
population. Besides, it is obvious that a sample survey needs less time than a
census inquiry.
SAMPLE DESIGN

To carry out the study-

Research Methodology:

Data Source : Primary and Secondary

Data Approach : Questionnaire
Sample Size : 100
Sample Unit : customer and retailer
Sample Area : Moradabad and surrounding area.
Sampling Method : Probability -- Random.

Are chosen so that it could give a fair response to achieve our objectives and
also could be finished within stimulated time limit.

Type of Sample Design

The type of sampling that was carried out was probability (convenience)
sampling due to limited resources available.

In non probability sampling, I have chosen random sampling. Because this was
best sampling method to do market survey. Also , to cover all consumers in Meerut
was not an easy task.
DATA COLLECTION

The study was conducted by the means of personal interview with respondents and
the information given by them were directly recorded on questionnaires.

For the purpose of analysis the data it is necessary to collect the vital information.
There is two types of data, these are-

a. Primary Data
b. Secondary data

Primary Data:-

Primary data can be collected through questionnaire. The questionnaire can be

classified in to four main types---

a. Structured non disguised questionnaire

b. Structured disguised questionnaire
c. Non-structured non disguised questionnaire
d. Non-structured disguised questionnaire

For my market study, I have selected structured non disguised questionnaire

because my questionnaire is well structured, listing of questions are in a
prearranged order and where the object of enquiry is revealed to the respondents.

To making a well structured questionnaire, we have adopted three type of

questions-

a. Open ended questions

b. Dichotomous questions
c. Multiple choice questions

These types of questions are easy to understand and easy to give required answers.
 Secondary data:-

Secondary data means data that are already available i.e. they refer the data which
have already been collected and analyzed by someone else. When the researcher
utilizes secondary data, than he has to look into various sources from where he can
obtain them, in this case he is certainly not confronted with the problems that are
usually associated with the collection of original data. Secondary data may either
be published data or unpublished data. Usually published data are available in: (a)
Various publications of the central, state and local government; (b) Various
publications of foreign government or of international bodies and their subsidiary
organization; (c) Technical and trade journals; (d) books, magazines and
newspapers; (e) Reports and publications of various associations connected with
business and industry, stock exchanges, etc.; (f) Reports prepared by research
scholars, universities, economists etc.; (g) public records and statistics, historical
documents and other source of published information.

The source of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with
scholars and research workers, trade associations, labour bureaus and other
public/private individuals and organization.

Measurement Techniques

In the questionnaire most of the questions asked based on attitude rating scale,
which consisted rating scales and composite scales.
Field survey:

After carefully choosing the way I have started the survey for accuracy of the data
I picked my sampling unit from the city, and then went on to analysis and report
making part.
Process of Marketing Survey:
The marketing survey is done in systematic process. The survey has
conducted the below process of marketing for my study at NOKIA handsets:

Problem Identification

Research Design

Data Collection

Data Analysis & Interpretation

Research Report & Presentation

HYPOTHESIS

A hypothesis consists either of a suggested explanation for an observable

phenomenon or of a reasoned proposal predicting a possible causal correlation

among multiple phenomena. The term derives from the Greek, hyposthenia

meaning "to put under" or "to suppose." The scientific method requires that one

can test a scientific hypothesis. Scientists generally base such hypotheses on

previous observations or on extensions of scientific theories. Even though the

words "hypothesis" and "theory" are often used synonymously in common and

informal usage, a scientific hypothesis is not the same as a scientific theory.  

NULL HYPOTHESIS

      The Null Hypothesis of this project report is that there is a positive result. After

the study of customer loyalty of customer towards the NOKIA the customer are

more loyal then any other Brand.

ALTERNATE HYPOTHESIS

No alternative hypothesis.
LIMITATIONS

While learning any thing new there are some limitations and this project is no

exception. Limitations while making projects

a. Sometime problems were faced while collecting data.

b. As it was the first time experience of learning while working so it takes time

to adjust.

Limitation of time

Time availability was one of the biggest limitations face due to shortage of

time we had to limit the work in its present form.

Other limitations

a. Because of social barrier woman were not willing to fill the form

b. Selective biasness
DATA ANALYSIS AND INTERPRETATION

Mobile phone user survey in moradabad

Q1 which brand mobile are you using?

Motorola Nokia

Samsung Sony ericssion

Other

Brand
Brand

72

12
8 5 3

Motorola Nokia Samsung Sony ericssion Other

INTERPRETATION

Hence from the above graph it is clear that the customer of Moradabad are prefer
to using NOKIA mobile as compare to others.
Q2 from how long are you using the NOKIA mobile?

From 6 months from 1 year

Approx 1-2 year other

Time
Time

54

34

12

From 6 months from 1 year Approx 1-2 year other

INTERPRETATION

Hence from the above graph it is clear that the customer using the NOKIA mobile
from 1 to 2 year and more.
Q3 ON which basis are you like most to purchase the NOKIA mobile?

Durability Reliability

Performance Serviceability

Others

Liking
Liking
57

25
15

3
0

Durability Reliability Performance Serviceability Others

INTERPRETATION

Hence from the above graph it is clear that the 57 out of 100 is prefer to buy the
NOKIA mobile due to durability, 25 out of 100 is buy the NOKIA mobile due to
performance of mobile.
Q4 Are you satisfied with Features of Nokia phone?

High satisfied

Satisfied

Not satisfied

Chart Title

77

23

High satisfied Satisfied Not satisfied

INTERPRETATION

Hence from the above graph it is clear that the 77 out of 100 customer are satisfied
with the feature of mobile handset that provide by NOKIA company.
Q5.Are you satisfied with price of Nokia phone?

Yes Can’t Say

No

Price
Price

52

36

12

Yes No Can't say

INTERPRETATION

Hence from the above graph it is clear that the 62 out of 100 customer are not
satisfied with the price of NOKIA handset. 26 out of 100 are satisfied with the
price of NOKIA mobile
Q6 how do you rate the quality of our products?

Excellent very good

Good Fair

Poor

Quality
Quality

54

32

6 8
0

Excellent Very Good Good Fair Poor

INTERPRETATION

Hence from the above graph it is clear that the quality of NOKIA mobile provide
by the company is very good, 54 out of 100 says the quality of NOKIA handset is
very good, 32 says the quality is good.
Q7 How familiar is you with Nokia Handset?

I never heard of them

I have heard of them but never buy there products

I buy there products occasionally

I buy their products on regular basis

Familier
Familier
64
34
0 2

INTERPRETATION

Hence from the above graph it is clear that the 64 out of 100 customer are buy the
product occasionally. 32 out of 100 are buy the product of NOKIA on regular
basis.
Q8IF you purchase again mobile which brand of mobile are you choosing?

Motorola Nokia

Samsung Sony Ericssion

Others

Post Purchase
Post Purchase

72

12
8 5 3

Motorola Nokia Samsung Sony ericssion Other

INTERPRETATION

Hence from the above graph it is clear that the 72 out of 100 customer like to
purchase again NOKIA mobile.
Q9 Are you suggest to your friend for buying the NOKIA mobile?

Yes

No

Mobile
Mobile

83

17

Yes No

INTERPRETATION

Hence from the above graph it is clear that the customer who already use the
NOKIA mobile they suggest his friends to buy the NOKIA mobile.
Q10 Are you satisfied after sales service of NOKIA mobile?

Yes

No

After sale service

After sale service

78

22

Yes No

INTERPRETATION

Hence from the above graph it is clear that the customer are satisfied with the after
sale service.
LIMITATIONS

Every project has some limitations even the researcher came across some
limitations while working on the project which made the analysis a little
inappropriate at times. Some of the basic limitations faced during the research are
listed below:
Only limited number of Retailers and Customer where it has been found 100
sample was covered in the study.
a. There was a bias on the part of the respondents.
b. The research is based on Moradabad and surrounding area
c. At the time of research most of the customer did not sincerely respond to the
researcher.
d. There was a time problem as head of the department were not available
FINDINGS & CONCLUSION

a. After analyzing the data it was clear that customer are using the NOKIA
brand mobile as compare to other brand they are using NOKIA mobile from
many months..

b. After the survey we find that purchasing of NOKIA mobile is due to his
durability and give the performance and they are satisfied with the feature
that provide by the company in NOKIA mobile..

c. Customers are not satisfied with the price of NOKIA mobile as compare to
other brand of mobile the price is little bit high.

d. Most of the customer are satisfied with the quality that provided by NOKIA.

e. Customers of NOKIA who already use them they always suggest the
NOKIA brand to his friends and relatives and also if they buy again they buy
NOKIA.

f. People are more familiar with NOKIA brand as compare to others.

 SUGGESTION AND RECOMMENDATION

1. NOKIA should take proper attention towards price of handset..

2. Company executive should pay proper attention towards checking of various

components of Handset before end user delivery. Otherwise it tends towards
defame of brand name in comparison to rivals.

3. Need to expand customer care center as the consumer base of NOKIA is

increasing with tremendously fast pace.

4. Proper attention should be paid for advertisement planning otherwise it may

lead to problem for dealer and customer as well as for company.

5. Company should tie up with some event management company to organize

various promotional activities like canopy, Carnival.
BIBLIOGRAPHY

Books:

 Marketing Management – Philip Kotler,

 Kevin Lane Keller.
 Research Methodology - Kothari
 Schiffman & Kanuk –Consumer behaviour

MAGAZINES / NEWSPAPERS

a. Business Today
b. The Financial Express
c. The Times of India
d. Company Annual Magazine

WEBSITES:

a. www.nokia.in
b. www.indiainfoline.com
c. www.google.co.in
d. www.wikipedia.com
e. www.scribd.com
f. www.chithr.com
 QUESTIONAIRE

I (GAURAV BHATNAGAR) student of TEERTHANKAR MAHVEER

UNIVERSITY, Moradabad presently pursuing our project with Customer loyalty
towards NOKIA Mobile Handsets in Moradabad as a part of our MBA project.
Your feedback will help us in upgrading our skills and completing project, this
project is a partial requirement of obtaining master degree. We will be highly
obliged for the act of your kindness. Information in the Questionnaire will be:-
a. Used for academic purposes only.
b. Kept strictly confidential.

Name:-______________________ Sex:-_______________________

Address:-____________________ Occupation:-_________________

QUESTIONNARE
Q1 which brand mobile are you using?

Motorola Nokia
Samsung Sony ericssion
Other

Q2 from how long are you using the NOKIA mobile?

From 6 months from 1 year

Approx 1-2 year other

Q3 ON which basis are you like most to purchase the NOKIA mobile?

Durability Reliability
Performance Serviceability
Others

Q4 Are you satisfied with Features of Nokia phone?

High satisfied
Satisfied
Not satisfied

Q5.Are you satisfied with price of Nokia phone?

Yes Can’t Say

No

Q6 How do you rate the quality of our products?

Excellent very good

Good Fair
Poor

Q7 How familiar is you with Nokia Handset?

 I never heard of them
I have heard of them but never buy there products
I buy there products occasionally
I buy their products on regular basis

Q8IF you purchase again mobile which brand of mobile are you choosing?

Motorola Nokia
Samsung Sony Ericssion
Others

Q9 Are you suggest to your friend for buying the NOKIA mobile?

Yes
No

Q10 Are you satisfied after sales service of NOKIA mobile?

Yes
No