1

Figure 1

Socrates

WR 121: English Composition Online (4 credits)

Fall 2013 Section 46099 Dates: 9/22 to 12/13

Portland Community College S.E. Center

2305 S.E. 82nd. Ave. Portland, OR 97216

Figure 2

Aristotle

Instructor: James B. Pepe Phone: 971-722-3178 E-mail: [email protected]

Office Hours: Every Monday in room 106, the Mt. Scott building, from 3:00 to 6:00 p.m.

Note: The best way to contact me is contact me through mypcc email, rather than leaving

a voicemail message. However, to ensure student privacy, PCC requires all email

exchanges to be through a mypcc account.

Required Text: Writing About the World, 3rd Edition, Susan Mcleod ed.

Recommended Text: A Pocket Style Manual, 6th Edition, Diana Hacker

Prerequisite: Placement into WR 121 or completion of WR 115 and RD 115.

Required Software An updated web browser (Internet Explorer, Mozilla Firefox, Google Chrome, etc.)

Microsoft Word or OpenOffice (or at least the ability to save a document in basic Word

format), and an updated version of Adobe Acrobat Reader.

Note: If you do not have a word-processing program, I highly recommend that you

download the free word processing program offered by OpenOffice.

Additional Requirements Because this class has an online component, you will need access to a computer with an

internet connection. You will also need access to either a DVD player or an online video

streaming service like Hulu or Netflix because your third essay assignment will be a film

analysis.

I. Course Description “English Composition develops skills in analytical reading, critical thinking, and

expository and persuasive writing” (See this link for “PCC Course Content”). As a

student in WR 121, you will compose four essays that use a variety of rhetorical

strategies to support a thesis. The philosopher Aristotle (384-322 BCE) defined rhetoric

as "the faculty of observing in any given case the available means of persuasion" (See

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this link for Aristotle’s Rhetoric). A well-structured rhetorical argument is indeed a

balance of ethos (the expertise of the writer), pathos (emotion), and logos (logic). Thus, a

good writer knows how to effectively balance these appeals in his or her argument and

how to recognize imbalances in the arguments of others.

Figure Three: The Rhetorical Triangle

Ethos

Pathos Logos

II. Course Objectives By the end of this course, you should be able to write a 1000-word essay that clearly

states a point, supports that point with specific details, effectively integrates MLA

Citation and follows the conventions of standard written English. In addition, you must

demonstrate a mature command of grammar and syntax throughout the term. The

course's evaluation objectives are as follows: (1) Three long argumentative essays, each

written on a different topic; (2); four multiple-choice quizzes based on grammar and

course content; (3) a 500-word time essay; (4) one 1000-word essay; (5) and student

participation during online discussions. See Table One below for more detail. See this

link for PCC’s Intended Course Outcomes.

Table 1: WR 121 Graded Assignments

Assignment Type # of

Words Due % of Grade

Definition Essay 750 Week 3 15

Comparison/Contrast Essay 750 Week 7 15

Film Analysis Essay 750 Week 9 15

1000-Word Essay 1000 Week 12 17

Weekly Discussions varies Weekly 20

500-word in-class essay 500 Week 11 6

Four Multiple-Choice quizzes N/A Weeks 3, 6, 10

& 11 12

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III. Add/ Drop, Withdrawal, and Audit Information Be aware of the following dates:

 Sept. 26: Last day to drop the course in person (by 4:00 p.m.) and receive a refund or to select AUD (audit) for a grade option

 Sept. 27: last day to drop via mypcc (by 10:00 p.m.)

 Sept. 30: Last day to add classes

 Nov. 15: Last day to withdraw with a W (withdrawal) mark or to change grade option between letter grade and P/NP.

Note: All students must earn a minimum grade of “C” in order to pass the course. If you

stop participating in this class without withdrawing, you will fail. To be eligible for

an incomplete grade, you require the following: (1) a documented, justifiable excuse;

and (2) completion of 75% of the graded course work. For further questions on

add/drops and withdrawals, contact the Student the Registration Helpline (971-722-8888)

or see this link for Adding and Dropping Classes.

IV. Student Participation Be prepared to check into the Desire2Learn server and participate in graded discussions

throughout the week. As you can see in Table 1, the weekly discussions account for

20% of your total grade. Web-enhanced writing courses generally require 1-5 hours of

study time per week. If you have not already done so, click on this link for the Online

Learning Orientation, which gives basic advice for logging in and navigating through the

D2L environment. Because I will be grading the quality of your posted responses, I urge

you to edit your messages before posting them into each week's discussion forum. The

criteria for graded assignments will be noted as such in each week's module. All posts

and responses need to be posted to the discussion board by 11:59 p.m. every Sunday. New assignments will be posted each Monday by 8:30 a.m., Pacific Standard Time.

 Essay Submissions: Submit all essays to me as Word or OpenOffice attachments

through the course “Dropbox” by the dates indicated in the course calendar.

When you submit your essay, use your name and the number of the assignment as

part of the document's file name, (e.g., smith_definition_essay or smith_essay1).

 Essay Rewrites: You are allowed to rewrite one of your first three essays for a

possible higher grade; you cannot rewrite essay number four. Your optional

rewrite must be submitted with the original essay and is due by finals week. All

rewrites must be a substantial improvement over the original essay; correcting a

few grammar and spelling errors does not count as a serious revision. See Table

Two below for more details on essay grading criteria

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 Late Essays: Late essays are automatically penalized 10%. The tardy essay will

then lose an additional 10% for each week it is late (this includes weekends).

You cannot rewrite late essays. You cannot submit Essay IV late.

 Late Participation: Late participation in a discussion is worth zero points.

Discussions cannot be made up. Missed quizzes cannot be made up either.

 Please note: Use common sense with what you choose to share in your essays

and online posts. I am required by state law to immediately report suspected

instances of child abuse to Oregon CPS.

V. Instructor Facilitation In his Apology, Socrates (469-399 BCE) said, "I am that gadfly which the gods have sent

to sting you Athenians [to debate]." This is my role as your facilitator: to stimulate each

module's discussion forum with my own questions and observations. In certain modules,

I might require you to respond to a fellow classmates' post.

I usually answer e-mailed questions in less than one day and return graded essays within

7 days. You will receive consistent feedback from me in the following ways: (1) When

you submit an essay to me as a Word document, I will embed numerous grammar and

composition comments within the essay and return it to you as an attachment; (2) at the

end of each module, I will grade your online posts and send submit written comments

detailing the grammatical, rhetorical, and logical strengths and weaknesses of your post.

My face-to-face office hours are 3:00 - 6:00 p.m. every Monday in the Faculty Office

(Mt. Scott, Room 106, PCC Southeast Center). During this time, if I am not meeting

with students, I will be available online to offer advice and feedback on assignments. If

you want to interact with me in real time during my office hours, you can contact me with

the Pager tool, which is next to the Mail tool in the upper right-hand corner of the main

course page. Upon request, I can also conduct a real-time conference (text or voice)

through mypcc Gmail’s chat function. Unlike your participation in the graded discussion

forums, your participation in these online interactions is optional, but I intend to confer

with you at least twice this term. In addition, I will upload short audio lectures each

week. If you need help with a grammar principle or essay topic, contact me immediately,

and I will respond as soon as possible.

You are responsible for the technical requirements of this course. Not being able to open

attachments or receive messages is an unacceptable excuse for late or unfinished work. If

you are having technical difficulties, contact the student support desk.

VI. Graded Posts Your graded online posts are a direct extension of the writing process in an online WR

121. To understand how your responses will be graded, you must understand the

difference between a "reader-centered" and a "writer-centered" message. Paul V.

Anderson, author of Technical Communication: A Reader-Centered Approach, argues

that a "reader-centered" communicator understands that effective rhetoric is a

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collaborative activity between writer and reader. This kind of rhetor will constantly

evaluate a reader's likely intellectual and emotional reaction to each line of a text,

whereas a "writer-centered” poster cares little for the needs of his or her audience. This

is why many unmoderated Web discussions are a soap-box wasteland of writer-centered

monologues and meaningless interjections. Your posts will be graded with the following

rubric:

Table 2: WR 121 Discussion Forum Grading Rubric* Points

Responded to several questions and contributed well-supported, mature, and

relevant insights to the ongoing debate; demonstrated strong rhetorical and

grammatical skills. 3

Responded to the module's required question or questions and demonstrated not

only knowledge of the topic but also some rhetorical and grammatical skill. 2

Responded to the module's requirements, but in only a cursory fashion, with

little to no support in his or her post; otherwise, if the post's content was

adequate, it still contained too many errors in grammar, spelling, or logic

(especially logical non sequiturs).

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No participation . 0

 *(Adapted from a sample FSU online rubric).

VII. Online Etiquette Courtesy to your fellow classmates is mandatory. Even though this is an on-line

environment, you must still follow the Student Code of Conduct. Note the following

rules for online etiquette:

 Keep all postings and responses respectful and relevant. Never engage in an ad hominem attack (which literally translates to "argument toward the man"). When

disagreeing with a classmate, you will always use polite and constructive

language. If you ignore this rule, I will bar you from the discussion forums.

 Furthermore, please do not use emoticons in your posts. This is a formal writing course, not a chat room. For the same reason, do not write in all uppercase letters.

VIII. Essay Format All four of your essays must be typed, double-spaced, and follow Modern Language

Association (MLA) guidelines (see pages 144-162 in A Pocket Style Manual for

examples of this format.) Type your essays using 12-point serif fonts such as Times

New Roman. Please do not use sans-serif fonts such as Arial or Calibri. See Table Two

below for details on essay grading criteria.

Note: A Works Cited page does not count toward an essay’s minimum page length or

word count. In addition, whenever you quote or paraphrase from an essay in Writing

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about the World, you must follow the MLA guidelines for citing from an anthologized

text. See page 139 in A Pocket Style Manual for more detail.

IX. Grading Grades are based on a percentage of points possible: 90% or more is an A, 80-89% is a B,

70-79% is a C, and 60-69% is a D. Borderline final grades will be influenced by active

participation and improvement. Late essays will be penalized for 10%. The tardy essay

will then lose an additional 10% for each week it is late. You can neither make up

missed quizzes nor hand in Essay IV in late. All students must earn a minimum grade of

“C” in order to pass the course. See this link for further reference on PCC’s grading

guidelines.

Table 2: WR 121 Essay Score Sheet*

Score #: 5-6 = needs improvement, 7 = minimal, 8 = good, 9-10 = excellent

#

Introduction: A strong introduction hooks the reader's interest and orients him or

her to the essay's main topic. An average introduction provides some orientation,

but it lacks the means to fully engage and prepare the reader. A weak introduction

is often a choppy sequence of disconnected statements.

Thesis: The essay has a clear thesis with supporting ideas that forecast the structure

of the argument. If the essay has an implied thesis, then the implication should be

obvious by the essay’s conclusion. Lower-range essays either have no thesis, a

vague thesis, or a tacked-on and disconnected thesis.

Essay Structure: The argument--in toto--should be a balanced exercise in ethos,

pathos, and logos. The supporting ideas should progress smoothly and logically

from one well-balanced segment to the next. The writing should be vivid and

compelling. Mid-range essays are often well structured and provide adequate

examples--but they lack the rhetorical power and exhaustive support demonstrated

by their stronger kin. Disorganized lower-range essays often fall short of engaging

the reader intellectually or emotionally.

Paragraph Structure: Each coherent and unified body paragraph should contain a

topic sentence supported by concrete examples with effective transitions between

sequential ideas. Weaker paragraphs often lack the following: unifying topic

sentences, smooth transitions, or adequate support.

Evidence (20 possible points): The essay's claim should be supported by relevant,

arguable, logical, and properly cited evidence, thus informing and persuading a

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Table 2: WR 121 Essay Score Sheet*

Score #: 5-6 = needs improvement, 7 = minimal, 8 = good, 9-10 = excellent

#

hypothetically skeptical reader. Lower-range essays often fail to provide enough

evidence, address possible counterarguments, or use proper citation.

Critical Thinking: The argument should demonstrate impressive critical thinking

skills, originality, and depth.

Grammar and Mechanics: Spelling, grammar, capitalization, punctuation--each

well-structured sentence should demonstrate a strong understanding of the usage

rules for these four areas.

Word Choice: Strong vocabulary and syntax should contribute to the essay's

argument, rather than detracting from it with wordy and awkward constructions.

Conclusion: The conclusion should summarize the argument, creatively restate the

thesis, and invite deep reflection or, perhaps, a call to action. Strong writers often

provide closure by referring to an example, fact, metaphor, or statistic mentioned in

the introduction. Lower-range conclusions fail to restate the thesis or repeat the

thesis verbatim--or introduce tangential and disconnected ideas.

Style: The nuanced writing style exhibits confidence through the use of metaphor,

simile, or poetic word choice (5 possible bonus points)

FINAL SCORE : 90% or more is an A, 80-89% is a B, 70-79% is a C, and 60-69%

is a D.

 *(Adapted from a MHCC grading rubric).

Note: You have the opportunity to rewrite one of your first three essays for a possible

higher grade. All rewrites must be handed in on the night of the final and stapled to the

original graded essay. All rewrites must be a substantial improvement over the original to

receive additional credit. Cleaning up just a few grammar mistakes will not count. You

cannot rewrite Essay IV. As for the final timed essay, you will have three hours to write

this and submit it. I will release the topics for this essay during finals week.

X. Accommodations If you require specific instructional accommodations, please notify me during the first

week of the term. Students who have a documented disability and require a classroom

adjustment or accommodation should contact Disability Services and provide the

Approved Academic Accommodations letter to the Instructor. See this link for

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contacting Disability Services.

XI. Equal Educational Opportunity All students shall be assured equal educational opportunity and treatment. During the

course of this term, we will be discus several challenging and controversial topics. If you

cannot address these subjects, you must make arrangements with me ahead of time to do

an alternative assignment.

XII. Plagiarism Students are required to complete this course in accordance with the Student Rights and

Responsibilities Handbook. “Dishonest activities such as cheating on exams and

submitting or copying work done by others will result in disciplinary actions

including but not limited to receiving a failing grade” (Academic Standards

Handbook). For further details, see the Academic Integrity Policy.

Note the following Merriam-Webster's Dictionary definition of “plagiarize”: “[T]o steal

and pass off (the ideas or words of another) as one's own: use (another's production)

without crediting the source.” Plagiarized papers will receive a failing grade of zero

points out of a hundred; furthermore, I do not allow plagiarized essays to be rewritten.

In addition, I am required to report all plagiarized assignments to the SE Center’s

division dean of Arts and Sciences. Language and ideas in papers should be your own or

credited using the Modern Language Association (MLA) rules on integrating sources.

Contact me if you have any questions about proper citation. _______________________________________________________

Module One (Begins September 22) Grammar and Composition

 Grammar and Vocabulary

 Required Format for Essay Submissions

 Understanding Active versus Passive Voice

 Recognizing Faulty Parallelism

 Recognizing Clear Pronoun Reference

 Recognizing Clear Pronoun Agreement

 Recognizing Subject/Verb Agreement

 Curbing Wordiness and Recognizing Cliché Language

 Introductory Paragraphs, Thesis Statements, and Essay Organization

 Effective Thesis Statements Writing about the World

 “Reading Rhetorically” (4-14)

 John Connor, “The U.S. was Right” (534)

 Gar Alperovitz, “The U.S. was Wrong” (536) Assign Definition Essay

Module One online posts due by September 28, 11: 59 p.m.

_____________________________________________________________________

Module Two Writing about the World

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 Niccolò Machiavelli, “The Qualities of the Prince” (43)

 Kautilya, “The Arthashastra” (35) Grammar and Composition

 Recognizing Independent and Dependent Clauses

 Understanding Coordinating and Subordinating Conjunctions

 Three Rules for Using Commas

 Recognizing Fragments

 Recognizing Run-On Sentences

 MLA format review Module Two online posts due by October 5, 11: 59 p.m.

_____________________________________________________________________

Module Three Writing about the World

 Mao Tse-Tung, "On the Correct Handling of Contradictions Among the People" (76)

 Thomas Jefferson, “The Declaration of Independence” (52) Online Lecture: “Induction, Deduction, and Logical Fallacies”

Definition Essay Due by October 12, 11: 59 p.m.

Quiz One: Grammar and Course Content due by October 12, 11:59 p.m.

Module Three online posts due by October 12, 11: 59 p.m.

_____________________________________________________________________

Module Four Writing about the World

 George Orwell, “Shooting an Elephant” (188)

 Mohandas K. Gandhi, “Satyagraha” (206) “Paragraph Coherency”

Grammar and Composition

 Semicolons

 Colons Module Four online posts due by October 19, 11: 59 p.m.

_____________________________________________________________________

Module Five Writing about the World

 Martin Luther King, Jr., “Letter from Birmingham Jail” (212)

 Nelson Mandela, “I Am Prepared to Die” (227) Grammar and Composition

 Comma Use with Restrictive and Non-Restrictive Elements Module Five online posts due by October 26, 11: 59 p.m.

_____________________________________________________________________

Module Six Symbolic Analysis

Writing about the World

 Royal Bank of Canada Newsletter, “What Use Is Art?” (277) Online Lecture Notes

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 “Friedrich Nietzsche on ‘Apollonianism and Dionysianism’ ”

 Samuel Taylor Coleridge, “Kubla Kahn” Grammar and Composition

 Hyphens

 Dashes Quiz Two: Grammar and Course Content due by November 2, 11:59 p.m.

Module Six online posts due by November 2, 11: 59 p.m.

_____________________________________________________________________

Module Seven Film Analysis

Comparison/Contrast Essay due by November 9, 11:59 p.m.

Module Seven online posts due by November 9, 11: 59 p.m.

Assign Film Analysis Essay

_____________________________________________________________________

Module Eight Writing about the World

 Maxine Hong Kingston, “No Name Woman” (336)

 Plato, “The Allegory of the Cave” (683) Grammar and Composition

 Parentheses

 Brackets

 Ellipses Module Eight online posts due by November 16, 11: 59 p.m.

_____________________________________________________________________

Module Nine Writing about the World

 China: Nu Kwa

 India: Shakti

 Mesopotamia: Enuma Elish

 The Middle East: Genesis

 Africa (Yoruban): The Descent from the Sky

 North America: "The Iroquois Story of Creation" Grammar and Composition

 Dangling Modifiers

 Who/ Whom Assign 1000-Word Essay

Film Analysis Essay Due by November 23, 11: 59 p.m.

Module Nine online posts due by November 23, 11: 59 p.m.

_____________________________________________________________________

Module Ten Writing about the World

 Simone de Beauvior, “Women as Other” (195)

 Jean Paul Sartre, “Existentialism” (700) Module Ten online posts due by November 30 11: 59 p.m.

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Quiz Three: Grammar and Course Content due by November 30, 11: 59 p.m.

_____________________________________________________________________

Module Eleven Quiz Four: Grammar due by December 7, 11: 59 p.m.

Student Conferences

_____________________________________________________________________

Finals Week (Begins December 9) The following assignments are due by December 14, 11: 59 p.m.

 500-word timed essay  Essay IV (1000-word essay)

 Optional rewrite due

Note: Your instructor reserves the right to change this syllabus as needed.

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Additional Resources

 Grammar and Composition, 6th Edition by Diana Hacker (this companion site has online practice quizzes in grammar)

 The Capital Community College Foundation Guide to Grammar and Writing

ISQA 439 Agenda : Oct 1- 2014

 Welcome  House Keeping

 Sign In  Wait List –  Form Team 3 – 5

 Name Tag  Group A, B, C, D, E  Each group has two teams like A1, A2; B1, B2 etc..  Allow up to two presentations per meeting

 05:40 – 07:00  Agenda Setting  Presentations

 07:00 – 07:30  Dinner

 07:30 – 09:00  New material  Class discussion

Agenda for Oct 1, 2014

 Administration – Sign in  Wait List – First one on the list  Course Packet -

https://cb.hbsp.harvard.edu/cbmp/access/30672719  Class Format  Article – Framework discussion  Case Study – Up to Two teams present each week on Two different

cases/topics.  Every week, there will be two cases for discussion

 Non Presenting team will need to come and prepare to ask a minimum of 2 questions to each team that is presenting and Hand in the Case Analysis Work Sheet

 Team Assignment  Maximum 3 - 5 people per team

Value of working in a Team Environment

 Gather different perspectives  Develop friendship and relationship  Learn about your own strength and weakness  Try out something – Push your self  Respect team dynamics- Lead and Follow

Feedback from the Industry

 Sept. 25, 2014  Business Community Panel- On current and emerging skills

employers are looking for in new hires  Panelists:  - Brett Joyce, President, Rogue Ales  - Curt Bludworth, VP, Human Resources, Tektronix  - Tauna Dean, Senior Manager, Talent Acquisition, adidas

America  - Greg Stokes, Director, HR, Energy Trust of Oregon  Our moderator is Kevin Coupe, author/publisher

What is a Perfect Candidate

 Align with Brand/Company Value  Blend of IQ/EQ  Pivot toward EQ  Manage and operate in a matrix organization

 Cultural fit  Raw Smart mixed with Spirit

 Passion & Excitement for the job/industry  Come and Prepared

Specifics -

 Data Analysis  How to approach a problem with analytic  Framework

 Know how to write  Work in a team  Business acumen  Excel skills  Certainty of your own brand (know yourself)

Interview Questions

 Tell me a time when you experience work in a team successfully and not successfully

 What motivates you to apply for this position  Tell me a joke  What is your brand?  Tell me your brand differentiator?

 I am the right person for the job and here is why….  What shape you and prepare you for the next step?

Expectation Team Presentation & Write up

 Each team is expected to be on stage for 35 minutes  20 + slides and present for 20 – 25 minutes  10 minutes for Q&A

 Write-up: Single voice; 8 to 10 pages; Not cut & paste from 3 different team members write-up

 Concise background – 1/2 page max  Problem statement – 1 page max  Analysis & Framework application  Recommendation  Share your perspective

Presentation – Visual Impact

 Title = Largest Font  Section Header #1  Sub

 Sub-Sub

 Section Header #2  Sub

 Section Header #3

Presentation - Content

 MECE principle  Mutually Exclusive  Collectively Exhaustive

Ask the question

Leading Practitioners Thought Leaders

Framer

DoerFollower

A p

p li

ca ti

on o

f F

ra m

ew or

k

Low

High

High Integration of Accumulated Knowledge

Case Analysis Worksheet

 Define the problem  List any outside concepts that can be applied  List relevant qualitative data  List relevant quantitative data  Describe the results of your analysis  Describe alternative actions  Describe your preferred action plan

D O E S I T M A T T E R ?

Purchase & Supply

0

1

2

3

4

5

6

7

8

9

10

6/29/2007 7/11/2008 6/19/2009 6/24/2010 10/14/2011 9/21/2011 9/28/2012

Original iphone iphone 3G iphone 3GS iphone 4G iphone 4GS iphone 5 iphone 5S and 5C

Initial 3 days Launch

Units in million

Iphone 5 – The Biggest Release

iPad2

Fewer Chips Inside IPhone 5

Qualcomm QCOM -0.93%, which has a big lead in delivering chips that work with the fourth-generation cellular technology LTE, as expected provided its MDM9615M communications chip–the most important component in the device after the Apple-designed A6 processor–as well as two other radio-related chips found in the handset taken apart by iFixit in Australia.

Apple, which often uses multiple sources for the ommodity data-storage chips needed for its devices, turned to Korea’s Hynix Semiconductor 000660.SE -1.47%for the NAND flash memory in the handset opened up by iFixit. Elpida, which is based in Japan, provided the dynamic random-access memory, or DRAM.

Skyworks Solutions SWKS -3.12%, a company based in Woburn, Mass., was selected for amplifier chips in the iPhone 5, iFixit found. Its shares were up 4% on Friday. So was Avago Technologies AVGO -2.56%, of San Jose, Calif., whose

shares rose 6%, and Triquint Semiconductor TQNT -4.27%, based in Hillsboro, Ore., which rose about half a percentage point.

As expected Cirrus Logic RUS -4.24%provided an audio chip. The Texas-based company is taking over a slot that might have gone to Audience, whose stock plunged earlier in September after the company disclosed it did not expect its technology to be used in the next iPhone.

Murata, based in Japan, supplied the module that allows the iPhone 5 to connect to Wi-Fi networks. That’s a slot that is frequently won by Broadco BRCM -1.64%; that Irvine, Calif., company did place a touchscreen controller chip in the iPhone 5, however Texas Instruments also TXN -1.07%supplied a touchscreen chip.

Update: it turns out the Murata module likely includes a Broadcom Wi-Fi chip, according to the research firm Chipworks.

IPhone 6 & 6 Plus

Supply Chain Management It is about delivering the right product/service at the right time, right quantity, right price to the right customer

Oct 1, 2014Confidential

20

 Managing the plan and operating the flow of materials sourcing, production process, distribution, delivery, reverse logistics, information system and financial supply chain while optimizing the costs and risks and meeting federal laws, regulations and company policy

Plan

Source Make Delivery Suppliers Customers

Information System

Reverse Logistics

$$

Supplier Customer

Federal Laws & Regulations; Company Policy; Risk Management

Procurement/Strategic Sourcing Approach

Oct 1, 2014Confidential

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Current Spent, Business Environment

Analysis

Supply Market, Total Cost Ownership

Benchmark

Sourcing Strategy Development

Supplier Selection, Negotiation,

Contract Implementation, Performance Management

Project Management Change Management

What is bought & Where How you buy it Do we really need this part/service Who owns the relationship What is the decision process Back door selling ? Transactional vs. strategic focus

Who offers What How much does it cost to provide those goods or services How much does it cost to recycle and replace Use Porter 5 forces to evaluate seller and buyer leverage

Who are the suitable suppliers Where to buy and consider demand & supply situation while optimizing risks & costs

Supplier financial strength Supplier past performance Payment terms and price Products specification or service level Geographical coverage and support Risk mitigation and contingency plan Contract and performance monitoring plan

For Public Sector – Best value, service excellence For Private Sector – Top line growth, free cash flow, margin improvement

It is about getting the best products or services at the best value considering risks and costs

Spend Data Analysis

Oct 1, 2014Confidential

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 Baseline analysis to capture the spend characteristics of a company  Analyze actual vs. planned expenditure  Segment spend by business units

 High spend areas and key suppliers  Characterize spend by dollar amount, PO volume, category  Aggregate supplier PO revenue by company, business units, category

 Key suppliers by business units and category  Top 3 suppliers for MRO, IT services, clerical staffing, engineering services, etc…

 Gauge organizational synergies and assess opportunities for cost savings, cost avoidance, free up cash flow, risk mitigation, service improvement  Logical category segmentation/management  Supplier relationship influence  Supply market dynamics  Supplier rationalization  Key contract considerations

Category Management

Oct 1, 2014Confidential

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 Research supply market to produce a logical category structure  Deep understanding of suppliers and supply markets

 Align user wants and needs into business plan/strategy  If it is not that important, why buy it or who needs it

 Manage category spend on a business wide perspective and not transactional

Spend Data Analysis

Define Suitable Category

Indirect (Below the line

View as expense)

Direct (Above the line Impact COGs)

Significant change management -Senior Management buy in -Effective cross functional & Collaborative team work -5% reduction in COGs, what is the impact to EBITDA?

Travel & Event -IT & Telecomm -Marketing & advertising -Printing -Facilities -Temp Agency

Best Practices - Procurement

Oct 1, 2014Confidential

24  Discourage “Back door selling” - Combat fear of change

 Suppliers promote fear of change  By-pass procurement team and sell directly to users  Access to sensitive information where suppliers can leverage during negotiation

 “Who are our competitors, Is our price in the ball park, How does our quality measure up, what is your budget, who are the decision makers ? ”

 Develop Procurement Policy to streamline request and approval process

 Evaluate Financial Supply Chain Leverage  VMI and Extended Payment Program: May be built into pricing

 Transferring credit risks and capital cost up the supply chain may not be best  3rd party financing: who has better financial strength to borrow

 Static discounts- Negotiated discounts for accelerated payment  Flexible discounts- 2%/10/net30; Sliding scale on actual payment date

 3rd party payment solution: Automated payment approval against invoice  Power track’s freight payment, product payment solutions  P card program to support procurement activities under $3,000 per transaction  Simplified PO process and payment approval under $10,000 per transaction

 Consider the benefits of integrating the work processes from order request to order fulfillment or point solution in E Procurement, B2B, or Web solution into ERP

Small

Simplified

Complex

A u

th or

it y

L ev

el

Time L

H

H

Best Practices - Contracting

Oct 1, 2014Confidential

25

 Use appropriate types of contracts – Legal binding  Cost plus reimbursement- Uncertainty in outcome or new technology  Time and Materials – Need historical data to set baseline  Fixed Price – Focused on “what” not “how”; Suppliers decide how  Performance based – Incentives for suppliers to deliver better results

 Develop policy to support standard process and contract template  Reuse contract template or statement of works if it is appropriate  Publish approved suppliers list with product category and contract type  Decide and communicate “non negotiable terms or conditions” for “enterprise wide” except it

can be waived or modified by company officers  Safety and meeting laws - Transportation Agreement – Carrier Safety rating – Only satisfactory  Indemnification language – “Solely” Vs “Share liability based on contributing level”

 Contract Life Cycle Management  Enable module within an enterprise system to keep track of existing contracts: Monitor

financial obligations and legal risks  Develop score card & report on contracting activities, performance, schedule, cost  Institute suppliers negotiation and performance review processes  Install data warehouse to capture both numerical value and fact based comments on supplier

performance and negotiation experience  Migration from transactional focus into “procurement and contracting knowledge center” and

strategic focus

Buyer’s risk

Su p

p li

er ’s

ri

sk

Cost Plus

T&MPerformance

Fixed Price

L

H

H

Public Sector

Oct 1, 2014Confidential

26

 FAR – Federal Acquisition Regulation

 Federal Acquisition Reform Act 1995 to decrease rigidity and bureaucracy in government procurement activities  Part 15: Contract by negotiation  Part 12: Commercial items available thru Wal-Mart and Microsoft

 GSA – US General Service Administration established by President Harry Truman, 1949  Public building service  Federal acquisition service

Risk Management

Oct 1, 2014Confidential

27  Contracting is all about risk allocation and minimizing risk to include cost, schedule & performance with an

understanding in probability of failing and the consequences of failing  In both the public and private sector, conducting a due diligence process is a must

 Risk Profile & Policy - How much risk can you tolerate; No right/wrong  Business Impact Analysis – Plan for risk

 High Impact – Financial loss, breach of contracts, regulations, show stoppers  Low Impact – Political, reputation, creditability, competitive advantages  Eliminate Critical; Reduce or Work around Major; and Accept Minor

 Leverage Capability Maturity Model to mitigate risk  Align People, Process, Technology, Structure, Policy, Culture

 Risk identified  Define roles and responsibilities  Recruit or train people with appropriate skills  Develop processes  Use risk management tools and automated reporting processes  Institute continuous improvement, testing and monitoring

Naive

Formalized

Managed

Emerged

Optimized

L ev

el o

f R

is k

M it

ig at

io n

Organizational Readiness

Critical

Minor

Major

Major

Im p

ac t

Likelihood L

H

H

L

H

H

KEL673

©2012 by the Kellogg School of Management at Northwestern University. This case was prepared by Joanna Wilson under the supervision of Professor Russell Walker. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 800-545-7685 (or 617-783-7600 outside the United States or Canada) or e-mail [email protected]. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Kellogg School of Management.

RUSSELL WALKER

Nokia’s Supply Chain Management

On March 17, 2000, a power surge caused a fire at the Royal Philips Electronics (Philips) plant in Albuquerque, New Mexico. The plant was a key supplier of semiconductor chips used in cell phones for both Ericsson and Nokia Corporation; together they received 40 percent of the plant’s chip production. At the time, both companies were about to release new cell phone designs that required these chips.1 Although “smaller than the nail on a baby’s pinkie,” the chips were of utmost importance to the phones’ functionality.2

The fire at the Philips plant lasted less than ten minutes before workers and sprinklers put out the flames. It was clear the fire had destroyed a certain stock of chips, but the extent of the damage to Philips’s “clean rooms”—where the entire inventory of chips was stored, due to their fragile composition—was unknown. In its initial reports of the fire to Ericsson and Nokia, Philips relayed it would take around a week before production would return. News traveled quickly at Nokia, where managers actively dealt with the supply disruption, setting up a series of daily alerts and discussions. At Ericsson, the technician who received the initial report of the fire from Philips failed to pass along the information to his superiors. Philips soon realized it had underestimated how much damage the clean rooms had sustained and reported to Ericsson and Nokia that the process to resume normal operations would take six weeks. Nokia’s resources were waiting and ready to spring into action to locate alternative supply sources, whereas Ericsson was unprepared for the news and had been depending on a quick Philips recovery. As a result, while Nokia’s new phone launch continued, Ericsson had to delay the launch of its new phone and its market share suffered.

Philips and the Cell Phone Market

In 2000 Philips’s semiconductor division was manufacturing about 80 million chips every day. Eighty percent of the mobile phones sold worldwide used Philips chips.3 Apart from mobile phones, consumer markets were demanding many other electronic devices that required the chips, such as new cars, digital cameras, and mobile memory devices. Owing to this burgeoning demand, surplus capacity was scarce.

1 Yossi Sheffi, “Building a Resilient Organization,” The Bridge 37, no.1 (2007): 30. 2 Almar Latour, “Trial by Fire: A Blaze in Albuquerque Sets Off Major Crisis for Cell-Phone Giants,” Wall Street Journal, January 29, 2001. 3 Amit S. Mukherjee, “The Fire That Changed an Industry: A Case Study on Thriving in a Networked World,” in The Spider’s Strategy: Creating Networks to Avert Crisis, Create Change, and Really Get Ahead (Upper Saddle River, NJ: FTPress, 2008), 3.

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A steady supply of chips was critical to cell phone manufacturers, as their customer base often replaced phones for the latest or most fashionable model. Suppliers increasingly relied on the replacement market, which meant speed to market became a critical sales factor.4 This was especially true in an industry with short product cycles of just eighteen months, where each shelf week helped the company recoup research and development costs.5

During this time, cell phone companies believed the newest craze would be converged devices with 3G networks that promised wireless mobile access in combination with basic phone functions. Companies invested billions in this prospect, creating the supportive infrastructure, buying 3G licenses, and investing in new product design. These heady investments seemed certain to return big profits, as Internet traffic was reportedly doubling every one hundred days and there was strong growth in worldwide mobile cell phone penetration.6

The Nokia Corporation

In 2000 Nokia was the world’s leader in cell phone sales and the largest corporation in Europe by market capitalization. The 130-year-old company had started in wood pulp production but by 1999 was a leading electronics firm, with $19.9 billion in net sales and 60,000 employees. It had developed a strong brand synonymous with price accessibility and mass appeal for its cell phones, which accounted for 70 percent of its revenue.7 It also had a small network sales division that accounted for another 25 percent of revenue.

The transformation from a “stodgy Finnish conglomerate, making everything from rubber boots and cables to lavatory paper and televisions,”8 to the Nokia of today began in the 1970s, when leadership invested profits into new technology and electronics such as radiotelephones. When Ericsson’s Nordic Mobile Telephone network (the first international network) went up in the early 1980s, Nokia already had some start in basic hardware manufacture; it launched one of the first consumer mobile phones in 1984, the Talkman.

When the Soviet Union collapsed in the early 1990s, so too did trade channels for Nokia’s traditional product line. This was just as demand for mobile handsets was increasing. However, Nokia did not have the capacity to expand production until the head of the handset division, Jorma Ollila, channeled new resources into the division and one year later as chief executive, “bet the company on becoming a mobile phone pure-play.”9 In 1999 Nokia sold 128 million phones.

The Ericsson Corporation

Ericsson was another large, old Scandinavian firm, based in Sweden and founded in 1876 as a telephone manufacturer. In 2000 it had 100,000 employees and net income from operations of

4 Christopher Brown-Humes and Dan Roberts, “Ericsson Nears Surrender in Handset Battle,” Financial Times, January 26, 2001. 5 Caroline Daniel, “Ericsson Faces More Than Just a Test of Fire,” Financial Times, July 24, 2000. 6 “Beyond the Bubble,” Economist, October 9, 2003. 7 Latour, “Trial by Fire.” 8 “A Finnish Fable,” Economist, October 12, 2000. 9 Ibid.

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$734 million, with net sales of $25 billion. While Nokia dominated the handset business, Ericsson excelled in network sales.

Ericsson had perpetually struggled to keep pace with its telephone manufacturing competitors, going head-to-head early in the twentieth century with AT&T. However, by mid- century it had expanded its role in telecom technology and revolutionized landline networks in the 1950s and again in the 1970s, before pioneering early cellular networks in the 1980s. At the start of the twenty-first century, the company was by “far the world’s dominant supplier of mobile networks,” with 70 percent of sales coming from the network division.10

Nevertheless, Ericsson continued to persevere in telephone production, now mobile, despite constant criticism that the firm misread consumer markets by focusing on uncompetitive upscale models. Although the company did experience sales growth in 1999, its handset sales, at $43.3 million, were still well below those of Nokia. Margins were also slim at 1 to 2 percent for handsets, while its network business continued to experience “rapid sales growth and strong margins.”11 The opposite was true for Nokia, whose margins were 24 percent for hardware while its networks were “weak by comparison, with lower growth and falling margins.”12 Between the criticism and the margins, Ericsson had little breathing room in the fast-moving handset market. New products were needed to quell the critics, and Ericsson hoped the first foray into Bluetooth technology would do just that.

Post Fire: The Nokia Response

A few days after the fire, a supply manager noticed a flag in the system about chip inflow from Philips. Following a pre-established process, word eventually reached component purchasing manager Tapio Markki.13 The anomaly was unresolved until a call from Philips on March 20 detailed the news about the fire and the estimated week hiatus. Markki sent word of the fire up the chain to Pertti Korhonen, senior vice president of operations, logistics, and sourcing in Nokia’s mobile handset division. Korhonen then implemented a series of tracking applications in the system for the five components Philips made at the plant and began placing daily, instead of weekly, calls to Philips about inventory.14

On March 31, Philips phoned Nokia to explain that the damage to the clean rooms was worse than anticipated, and it would be weeks before it could restart production. Some quick calculations at Nokia determined the shortage could halt production on about four million handsets and affect 5 percent of its annual production.15 The prospect was unacceptable, and a team of thirty, including Korhonen and CEO Jorma Ollila, sprang into action from several angles. First, engineers considered whether a chip redesign would allow Nokia to access alternative suppliers. The team then looked into new suppliers for three of the five components available independently of Philips—two suppliers in the United States and Japan responded with the

10 “Ericsson Gets Alarm,” Financial Times, October 23, 2000. 11 “Nokia/Ericsson,” Financial Times, April 29, 2000. 12 Ibid. 13 Mukherjee, “The Fire That Changed an Industry.” 14 Latour, “Trial by Fire.” 15 Robert B. Handfield et al., “How Do Supply Chain Risks Occur? A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain,” The Supply Chain Resource Cooperative Articles Library, January 18, 2011, http://scm.ncsu.edu/public/risk/ risk3.html.

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NOKIA’S SUPPLY CHAIN MANAGEMENT KEL673

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requested inventory within five days. Finally, under pressure, Philips secured more inventories from the Netherlands and Shanghai plants after expanding production. By the end of the global effort, Nokia had its chips and as a bonus, the engineers had devised a way to boost production so that an additional two million chips could be made when the plant came back online.16

This effort successfully resulted in Nokia avoiding any production loss because of supply chain disruption, an event which years earlier had cost the firm millions.17 Owing to the previous setback, Ollila had “instituted the practice of aiming executive hit squads at bottlenecks and giving them authority to make on-the-ground decisions.”18 After the fire, this practice worked in tandem with other company institutions, such as a well-functioning input monitoring system and a clear channel of communication between all personnel levels. As a result, the fire was a minor hiccup in 2000.

Post Fire: The Ericsson Response

Ericsson did not know about the fire until a low-level technician received Philips’s initial message. One-week delays were common, and “the fire was not perceived as a major catastrophe,” according to an Ericsson spokeswoman.19 When Philips phoned technicians again on March 31 to acknowledge the previous timeline was too idealistic and that the short-term supply of chips was uncertain, the top brass continued to remain in the dark.

It was early April before anyone on the executive team knew about the fire. By then, the outlook was bleak because Ericsson had previously moved to streamline its supply chain by making Philips its sole provider.20 Moreover, Nokia had already commandeered any extra supply of chips that existed. When Ericsson finally announced the loss to the market, shares fell more than 11 percent.21

Repercussions

The component shortage at Ericsson helped delay the launch of the first mobile phone to feature Bluetooth technology, the T36. Company officials estimated $400 million in direct revenue losses, which insurance would somewhat cover.22 However, the continued muddle in the mobile phone division was obvious, and the new phone had lost critical shelf time. Although Ericsson adjusted its shipping configuration to mitigate future shortages, analysts agreed the continued endeavor in mobile handsets was floundering.

By the end of October, Ericsson had already lost 3 percentage points in global market share to Nokia. By the end of the year, Ericsson had to scrap the T36 for the mass market, citing too short

16 Ibid. 17 During the Christmas sales season in 1995 there was a parts shortage that left network operators and customers without new phones. 18 Latour, “Trial by Fire.” 19 Ibid. 20 Roger Eglin, “Can Suppliers Bring Down Your Firm?” Sunday Times, November 23, 2003, http://business.timesonline.co.uk/ tol/business/career_and_jobs/senior_executive/article1022636.ece. 21 Clare MacCarthy, “Ericsson Handset Side Hit by Fire,” Financial Times, July 22, 2000. 22 Latour, “Trial by Fire.”

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KEL673 NOKIA’S SUPPLY CHAIN MANAGEMENT

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of a market life. The company reworked it into another model that came out in 2001, the T39— more than half a year after it had initially announced the T36.23 The losses were astounding in the annual report, with nearly $1.68 billion lost in the company’s mobile phone division, which the company attributed to component shortages.24

Like Ericsson, Nokia also subsequently found secondary suppliers for many of its components. Unlike Ericsson, there was no mention of component shortages or the fire in Nokia’s annual report. Despite the preparedness with which it handled the fire, Nokia continued enhancing its supply chain operation by installing dynamic systems to track major shipments of its suppliers, establishing a thorough risk management assessment for each of its major suppliers, and creating contingency plans for a variety of crises.25

The Bubble Bursts

The telecom bubble more or less coincided with and was largely a consequence of the larger dot-com bubble, bursting in mid- to late 2000. The telecom industry experienced bankruptcies, fraud, and destruction of shareholder value on a massive scale, in part because investments were based on incorrect predictions about the growth of the Internet and accompanying goods and services.26 As mentioned above, some sources believed Internet traffic was doubling about every hundred days—but in reality its growth was far less striking, doubling every year between 1997 and 2003. Growth in worldwide mobile phone penetration also peaked in 1999 at 52 percent, falling abruptly in 2001 to 29 percent. Companies had invested billions in fiber-optic networks, 3G spectrum, and highly sophisticated converged devices, forecasting quick returns from consumers demanding the newest replacement phones. In fact, many cell phone manufacturers thought that 3G would be a quick fix to the slowing market, which would necessitate that consumers update their handhelds for the fastest access to a mobile Internet.

However, cell phones at the time were clunky, had small screens, and failed to utilize the Internet in an appealing way. As one analyst at Dow Jones said, “Are there really that many people who want to surf the web on a cell phone’s two-inch screen?”27 Moreover, the telecom bubble and 9/11 had stalled consumer markets, and in some parts of the world companies still needed to invest in more 3G licenses and networks to offer quality coverage. It would be some time before companies would see a return on these heady investments, with 3G networks and useful cell phone designs finally mainstream by 2007.

Post Bubble: Ericsson and Nokia

The bubble showed up at Ericsson in early 2001, when the company laid off around 20 percent of its workforce and outsourced its cell phone production. By April 2001, Ericsson was done with independent manufacture of mobile phones and had created a 50/50 venture with Sony

23 “Ericsson Gets Alarm.” 24 Sheffi, “Building a Resilient Organization.” 25 Handfield et al., “How Do Supply Chain Risks Occur?” 26 “Beyond the Bubble.” 27 Michael Rapoport, “In the Money: Now It’s a Wireless Bubble That’s Popping,” Dow Jones News Service, July 27, 2000.

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that became Ericsson’s new production shop. By 2009, the Sony-Ericsson brand was the fifth largest producer of mobile phones by sales, with 4.5 percent of market share—down from 7.6 percent in 2008.28

Telecom eventually recovered from the bubble, before again facing slower demand brought on by the global recession in the late 2000s. In 2010 Ericsson was a much smaller company, at 82,500 employees with plans for further reductions. Net sales were stagnant in 2009 at $29 billion, and operating income dropped 65 percent year-on-year to $834 million.

Nokia weathered the telecom bubble better than its competitors by anticipating the downturn; it slowed hiring, shelved new product development, and cheapened expenses by outsourcing production.29 Although there were layoffs, they were not as significant. As of 2010, the company had more than 123,000 employees with net sales of $58.7 billion (down 19 percent from 2008) and an operating profit down 76 percent year-on-year to $1.6 billion. Despite these less-than-ideal figures, the company had grown considerably since 1999 and had continued to maintain its position as a sales leader, with a 2012 market share of 22.5 percent. It had lost much of its market share to Samsung in recent years (the maker of the Android phone), which led with 25.4 percent.30

Supply Chain Risk

Nokia’s ability to manage a supply chain disruption with alacrity and flexibility demonstrated to its shareholders and the public its competency in not only supply chain management but also operational risk management. As was obvious with Ericsson, however, an insufficient response to a disruption is costly, and hazard insurance may only cover the immediate loss of inventory and physical assets and not total revenue loss or brand damage. As globalization allowed for truly worldwide supply chains, disruptions were more likely for myriad reasons: border issues, terrorists, natural disasters, and labor disputes. In fact, natural disasters had grown increasingly more expensive since the 1960s, with their cost having risen tenfold.31 In effect, it is important for companies to consider the threats posed to supply chain disruption and their associated costs in an operational risk frame.

A typical drop in the share price after negative supply news is about 8 percent in the first two days, which is a greater drop than that caused by either a delay in a new-product launch (an average of 5 percent), negative financial news (3 to 5 percent), or IT problems (2 percent).32 Moreover, as Ericsson experienced, the delay of a new product may accompany supply chain disruption when global capacity for an input is scarce. The impact is not limited to the short term, however, as operating income, return on sales, and return on assets are negatively affected for months—even years—afterwards.33

28 Vincent Chang, “Top-5 Mobile Phone Vendors Lost Market Share in 2009,” Cellular-News, February 23, 2010, http://www.cellular-news.com/story/42084.php. 29 Janet Guyon and Paola Hjelt, “Nokia Rocks Its Rivals,” Fortune, March 4, 2002. 30 “Samsung Overtakes Nokia in Mobile Phone Shipments,” BBC News, April 27, 2012, http://www.bbc.co.uk/news/business- 17865117. 31 Eglin, “ Can Suppliers Bring Down Your Firm?” 32 “A Survey of Logistics: When the Chain Breaks,” Economist, June 15, 2006. 33 Ibid.

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KEL673 NOKIA’S SUPPLY CHAIN MANAGEMENT

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To avoid these costs, companies must implement an operational risk design with standards for strategy, processes, and values supported by technology, which gives the company enough forewarning to adapt and respond to supply chain problems.34 Part of this flexibility may be addressing the issue of a lean supply chain. Although less costly, it creates risk because of the complete reliance on a sole provider. Thus, companies need to consider the tradeoffs in their risk management strategy between holding inventories or using multiple supply sources and avoiding disruption. However, a completely risk-averse strategy in a supply chain may result in carrying too much inventory or spreading suppliers over such a large geographic range that the strategy is prohibitively costly—which smaller firms could ill afford. Companies must balance costs with risk-management practices to produce a tailor-made strategy for their firms to avoid the large direct and indirect costs of a disruption.

Recovery Efforts

The fire in New Mexico was a costly setback for Ericsson that contributed to the end of its independent mobile phone production. Additionally, it revealed that the company’s mismanagement of its cell phone brand extended to its operational risk practices, as it failed to recognize how costly disruptions were to the bottom line. On the other hand, Nokia’s keen insight into its manufacturing operations and its cognizance of the importance of getting products to shelves, including its acute monitoring of input supply, helped the company handle the fallout from the fire.

Nokia was not immune from falling sales, and its share price in November 2002 was less than a third of its peak in June 2000.35 It performed better than its competitors, however, due to the prescience of management, weathering the overall market changes with the same logistical and risk management acumen that managed the fire. As the bubble’s repercussions subsided, Nokia still had a healthy lead in market share over its nearest competitor. It also continued receiving numerous accolades, including a signal distinction as “Europe’s biggest corporate success story of the last decade,” according to the Financial Times in 2004.36 Nokia’s next big challenge in the second decade of the twenty-first century would be facing new competition from Apple and potentially, Google—a new test for the old pros in Finland.

34 Mukherjee, “The Fire That Changed an Industry.” 35 Christopher Brown-Humes, Robert Budden, and Andrew Gowers, “Nokia Forecasts Rise in Handset Market,” Financial Times, November 18, 2002. 36 Christopher Brown-Humes, “Vote Ollila,” Financial Times, January 9, 2004.

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Exhibit 1: Worldwide Mobile Penetration

Exhibit 2: Growth in Worldwide Mobile Penetration

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