BENSON BAWAK

BASHARAT MEHMOOD
BHANDARI RAJJU

FAIZ RASOOL
EJEMEWUO OVOKE

OBJECTIVES
To understand
organisations

the

purposes

of

business

To understand who stakeholders are and how

companies meet stakeholders objectives

To understand the responsibilities of organisations

and the strategies employed to meet them

PRELIMINARIES COMPANY PROFILES

A - NOKIA CORPORATION
Opened in 1871 as a wood pulp mill called NOKIA AB along the

banks of river Nokianvirtra (hence the name Nokia) in Finland by an

engineer called Frederick Idestam.
Started operating as NOKIA CORPORATION in 1967 following a
merger of Nokia AB, Finnish Rubber Works (1868) and Finnish Cable
Works (1912)

Entered the telecommunications business in 1960 and produced

its first phone in 1968. The first GSM call was made by an
operator on a Nokia phone in 1991
Became world leader in mobile technology in 1998 and enjoyed
that position for many years.
Merged with Microsoft in 2011 to avert competition from IOS
and Android. In 2014 Nokia completed the sale of its Mobile
phone and Services department to Microsoft
Today, Nokia employs over 67000 people who work in its three
main business; Nokia Networks, HERE, and Nokia Technologies.

B SONY GLOBAL
In May 1946, Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications
Engineering Corporation), also known as Totsuko, established in Nihonbashi,
Tokyo with start-up capital of 190,000 yen for the research and manufacture
of telecommunications and measuring equipment.
In 1955, the company decided to use the logo SONY for all of their
products. Until this time, the companys log was SONI. It was not until
January 1958 that the company name was changed from Totsuko to Sony
Corporation

 Since its creation, SONY has been a world leader in the sphere of
digital media technology, epitomised by their being the first to create
digital video and audio devices from the G-TYPE recorders (1950),
through the famous portable walkman (1979) to the first OLED TV in
2007
With its headquarters in Tokyo, an official head-count of 140,900
persons, an annual turnover of approximately 7,767,300 million yen
(41,660.7) and products ranging from entertainment, professional
solutions and life-changing medical equipment, SONY stands as a
world leader in todays international business environment.

OBJECTIVE 1
THE PURPOSES OF BUSINESS ORGANISATIONS

Your organization needs to be absolutely clear about purpose and

principles and must be very careful to know what a purpose and a

principle is - you know, a purpose is not an objective, it's not a mission

statement - a purpose is an unambiguous expression of that which

people jointly wish to become (Dee Hock, 1997)

1- PROFIT MAXIMISATION
Profit maximisation is the main purpose for which businesses are
created, as it is the major way by which businesses reward its
principal stakeholders shareholders.
NOTE: Not all companies are meant for profit making purposes.
This is the case of voluntary organisations that are meant to serve a
worthwhile causes, for example, the British Heart Foundation.
SONY Corporation announced an annual net profit of 43billion Yen
for the year 2013, after having announced a loss of 456million Yen
in 2012. (

Nokia Group announced a profit of 6,660million Euro for the year

2013, indicating a close to 6650 million increase from 2012

2 ATTRACT AND KEEP STAKEHOLDERS

To attract stakeholders, businesses need to stay on top of their
game, ensuring they meet their commitment made towards the
different stakeholders from the outset.
In order to keep its stakeholders, businesses ought to continuously
set up means and methods to meet the ever-changing and
insatiable needs of its stakeholders. This is the role played by
research and development in the business.
Sonys drive to continuously keep its clients abreast with the latest
technology in digital and medical technology are means by which
they attract and retain their varied stakeholders

Nokia has recently agreed to shifting its mobile telephone business

to Microsoft. This move is a means of retaining its clientele following
stiff competition in the last years from the likes of Samsung and
Apple

3 GROWTH
The prestige associated with long-standing businesses is
the goal of every business. Not only does it signify the
prowess it has with relation to other businesses, it is an
opportunity for the business as it will open opportunities
for future investment.
SONY and NOKIA are both companys that benefit from a
long-standing tradition of success and innovativeness. It
will be the wish of the owners that this status stays the
same as the company goes bigger in the world.

OBJECTIVE II
HOW BUSINESSES MEET STAKEHOLDERS OBJECTIVES
A stakeholder is anyone with an interest in a business. They
are persons who are affected or likely to be affected by the
activities of the business.
Stakeholders could be individuals or groups, and are made
up of persons from within the organisation or persons from

outside the organisation

Figure: Different stakeholders in a business.

a) PRODUCT DIFFERENTIATION
By investing huge sums in a wide range of products,
businesses offer the consumers the opportunity to have several
options in the market, as well as the opportunity of attaining
maximum profits.
SONY are currently the worlds largest manufacturer of TV sets.
Their ability to continually put out products that reflect the state
of technology for consumers interest, while being able to attain
profits in the process

Picture: SONYs
latest 4k TV.
Picture from
www.sony.co.uk

 Although NOKIA has been facing stiff competition from APPLE and
SAMSUNG, the company has still employed strategies to ensure that
its customers still enjoy top quality services with its brand. The move to
sell its handset division to Microsoft in 2013 illustrates this perfectly.
NOKIA still retains control over its Networking and digital mapping
and its Technology and Development divisions.

b) EMPLOYEE DEVELOPMENT
Employees are the fuel that lubricates the companys
projects. A company that invests in its employees invests in its
own future.
By building a proper culture around the employees and
investing in their training gives the employees a sense of
belonging and job security, as well as motivation to work for the
companys success.
SONY recognises the role played by its employees in
innovativeness, and engages to employ strategies to develop
their capabilities. Their graduate scheme provides the
opportunity for young and talented persons to join them in a
capabilities improvement journey through employment.

OBJECTIVE III
UNDERSTANDING THE RESPONSIBILITIES OF BUSINESSES AND THE
STARTEGIES EMPLOYED TO MEET THEM
The duty owed by businesses to their stakeholders is known as
Corporate Social Responsibility (CSR)

CSR covers a broad range of issues, ranging from legal, through

environmental to human resources. Its main aim is to ensure companies
are carry out their business in a sustainable manner and in respect of
rules laid down by the system.

CSR STRATEGY OF SONY CORPORATION

MANAGEMENT
RESPOSIBLE
SOURCING

Corporate Governance
Compliance

Conflict Minerals
Supply chain

HUMAN RESOURCES
Training & Development
Supply chain

SONY

PRODUCT
RESPONSIBILITY

Quality
Service

Technology for
sustainable
development