Nokia, More Than Just Connecting People

by Bikash Pandey and Anadin Tokmic
Finance
Faculty advisor: Dr. Lei Wen

This research has a thorough business analysis for Nokia, a European mobile devices and communications equipment maker. Three areas are examined to explain why Nokia can be a dominant global player. First of all, we analyzed the macro economic and political environment in Finland and provided information about the company such as its product and services, global strategies, and corporate governance. We also developed a SWOT analysis to outline its strengths, weaknesses, opportunities, and threats. Second, we used Nokia’s accounting and financial information from 2007-2009 to compare with those from other competitors in the financial analysis section. Finally, we compared Nokia’s ADR (American Depositary Receipt) performance to the overall U.S. stock market return in past 5 years in order to better assess Nokia’s equity valuation as a multi-national corporation. The current stock price level is also examined to see if it is over- or under-priced based on the all analyses. An opinion about the future performance of the company’s ADR in the short term and long term is also provided.