Your task, as a trainee, is to impress the top management and to do so you decide to write a report in which first you evaluate and discuss about the company’s goals and values and then discuss about the role of the strategic business management. After you have done this first part you then decide to discuss and analyze the impact of internal and external factors on PayPalHoldings, Inc. After you finish that part, you then decide to analyze and evaluate your company’s competitive advantage and you propose some ideas in order to not only maintain that advantage but also to extend it over the competitors. Finally you decide to face the problem of the environmental factors that affect strategic business management and planning.
Task 1: Goals and Values of PayPal with Strategic Business Management
PayPal Holdings, Inc.is an American company which has been effectively operating the different payments online, through supporting the online transfer of money and then it is serving easy electronic alternatives for the traditional matters like the cheques and money orders. The report will focus on discussing about different goals which are used for determining the strategic business management of the company.
1.1Evaluate processes by which organizations identify their goals and values
The mission statement is about focusing on organization purpose, where there is a need to develop a vision statement. The vision is about the vivid organization description to carry the operations and be quick culture specific where the participants then make use of methods which are from higher analytical and divergent discussions. PayPal Holdings Inc. mission is mainly for handling the time to reimagine money and then democratize the financial services with properly managing and moving the money which is a right for the different citizens . The person has a right to participate in the globalized economy with obligations to empower the people for exercising the rights and financial services with digital payments that help in enabling the hopes, dreams and ambitions of the people. The team aims for the valuing inclusion, collaboration with demonstrating the integrity, trust and the respect. PayPal aims to collaborate and work as a team, with driving the ownership and the accountability by making decisions to get the results effectively. The fostering of trust have integrity with innovation by creating experiences for the customers, consumers and the community of PayPal. The look is set with end-to-end and practicing the empathy by putting oneself in the customer’s shoe. The values of PayPal Holdings Inc. includes the wellness and inclusion that is important. The care and active support will help in creating a super energizing workplace which brings out the best of the employees with nourishing the mental and the physical balance.
1.2. Discuss the purpose and role of strategic business management and planning in an organization
The strategic planning team support the corporate strategy and the development of business, thereby, providing the financial guidance on the new initiatives, with partnerships and the different business opportunities which are set across the globe. The projects include that there are bank partnership, with marketplaces and the long-term enterprise planning with acquisition strategy as well . It works on the three-phase strategy where the focus is on expanding its services over the users of eBay in US. The expansion is done to the international sites and then there is a possibility to build a business off eBay.
Phase 1: It evaluates the payment volumes from the auction of the website of eBay.
Phase 2: It highlights on earning the interests mainly for the funds in the accounts. It is considered that the recipients of PayPal credits withdraw the funds immediately.
Phase 3: The strategy is based on strong growth with active users adding users across the different platforms, where there is a creation of new business unit with merchant services to provide solutions to small and large e-commerce merchants
Task 2: Internal and External Factors Impacting the Company
Considering the examples, the company is entering the strategic partnership with issuers and the card networks for the improvement in payment. The partnership has also allowed the PayPal users to introduce different customer choices and then offer a higher flexibility to opt for the payments that are done through credit or debit cards. The other examples of PayPal is to build partnerships that helps in scaling, customer and spend adds could outweigh the revenue drags. The cash and checks are dominated by the P2P ecosystem which is popular. The company helps in improving the business planning with supporting the early development of roadmap with international expansion. Apart from this, the functionalities are about shifting to mobile P2P where PayPal evaluates effectiveness in monetizing the platforms. The consumers look for mobile P2P services with user base scale fast, finding ways for the monetization which needs to be a major priority of the firms to stay ahead. The large network is to understand user base and networks, like the chat apps, and bot, AI technology with different advantages.
1.3. Evaluate the classic and contemporary models used in developing business strategies and plans.
The contemporary concepts are related to focus on allowing organization to deal with the uncertain future. Here, the focus is on developed designs and a restructuring process that is including the rules of competition. The inspiration and the imagination helps in allowing a better performance, with synthesis that is considered to be a major skill. The transformational management tactic in PayPal involves the combination of organizational strategy and target with initiatives defined for employees, process and technology. The support in business strategy helps in achieving the long-term goals with combining areas of people, process and the technologies. They, then try to bring a change to the specific target which involves the changing appearance, shaping and forming through new technology and management practices. With modern day organizations, the evaluation of success is through handling and designing uncertain future. Transformational strategy is used by PayPal which is about increasing communication in between the employees and then work on handling the different departments with motivational and inspiration is given to the staff for the working in a harder manner for a common target. The prescriptive approach of PayPal highlights on how the company is able to manage with inputs in setting the objective or strategy. The supporting analysis is about the logical and analytical approach to predict and revise strategies for taking new opportunities. The approach is about the cost advantage with hyper competitive and underpredicted business environment. PayPal works on prescriptive model where the goals are strategic, tactical and organizational. The goal are able to help in defining the actions which need to be taken. Here, the choices are made for developing goals in marketing, innovation, productivity which is considered to be a classic concept for growth. The important problems with goal and value setting generally leads to the failures and so there is a need to properly plan on different quality and customer services effectively. The strategic factors are designed through allowing development and setting targets which are encouraging participation and contribution. The emphasis is on building new resources with primary values of the company .
Task 3: Maintaining and Extending Competitive Advantage
2.1. Analyze ways in which the internal and external environment can influence organizational management and planning strategies
SWOT Analysis is about focusing on the strengths, weakness, opportunities and the threats a company can face with working on improving the standards. This helps in bringing a balance among different strategic opportunities or weakness, the organization comes through.
Strengths: The global presence of PayPal has been in different countries that makes the company to be one of the largest players in the payment industry. The expansion has been mainly in the emerging markets with larger customer base that have largest user base as well in the industry. It is operated in more than 25 currencies. The company offers the different multiple services where PayPal provide the wider service base which includes the PayPal here, Payment gateway, online invoicing etc. It has been effective and easy to use where the customers are working to improve the customer base .
Weakness: The problems are that the company is facing the higher number of frauds where the processing fee is also high with chargebacks and the card authorization. This leads to the diverging of the expected users as well. There are controversies related to the payments with problems of the dependency on connectivity. PayPal has been depending on internet connectivity and digital literacy.
Opportunities: The moving of one person with cashless and few cash economies, where the countries like India are pushing mainly for the cashless or less cash economics. It helps in presenting the new and great opportunities for PayPal for expansion of its markets. The digital currency and the technological advancement is set with penetration of internet with increasing connectivity and higher digital literacy that helps in focusing on the currency with a boost.
Threats: They are considered important for the strongest economic policies where the countries like China, Japan are important for setting up the constraints. The competition of PayPal is where they have to face the global competition, from the platforms like WePay, Google Wallet. The hacking and the threats of fraud lead to the problems along with issues in the banking services like net banking and IMPS which are taking the potential of PayPal .
PEST Analysis highlights on the political, economic, social and the technological standards so that it is effectively able to determine about the different know-about of a company. It will also include the factors which are important for improving a next level technological management.
Political: PayPal focus on handling the profitability with focus on risks of military invasion, level of corruption and the intellectual property protection.
Economic: The problems are for the exchange rates and stability of host country currency with infrastructure quality in credit service industry. The labor costs and productivity in economy and economic growth rate is in problem too.
Social: The social factors are related to demographics where there are problems with population skill level, class structure and power structure. The attitudes and leisure interests with problems of culture and gender roles are also there .
Task 4: Environmental Factors Affecting Strategic Planning
Technological: The technological holdings includes the impact on product offering with impact on the cost structure in credit service industry. There are rates of technological diffusion as well.
2.2 Discuss the influence of organizational governance requirements on management and planning strategies
The organizational governance requirement focuses on fulfilling the responsibilities and discharges the duty with following the procedures and standards. The corporate governance is about focusing on the system and procedures which are for the structure authority, balancing the responsibility and then providing accountability as well. The corporate governance helps PayPal to incorporate and focus on the internal stakeholders who will have a direct impact on the daily operations like the employees and management. There is a need to build the strategic relationships to ensure the long-term success with profitability. The key is to keep the internal stakeholders informed and motivated for the business to be set with external stakeholder interests. The accountability and social responsibility is based on managing different obligations with focus on fastest growing areas . The business integrates the legal conduct with ethical standards and recognition of a broader community. Here, the perspectives are defined through the legal and regulatory risks to determine and monitor the active management and control like exposures and Company code of ethics. The enterprise risk management program involves the Auditing Committee to identify assess, prioritizing and monitoring the major exposures of risks, that affect the ability to properly execute the corporate strategy. The standards are set to define about orientation programs with new directors of company business, strategies and policies to assist and develop skills, and knowledge with service on Board. The recognition is about planning and reviewing the updates to address the possibilities for enabling the performance and effectiveness to identify opportunities and improve Board performance as well.
2.3. Explore the impact of internal and external risk factors on strategic business management activities
The internal risks are related to the factors which include the forms and the stability for managing business and its finances in PayPal. There is a need to evaluate the debt obligations and the return capital which is for the investors and is considered integral to sound and stable venture. The instability could lead to the decreased profits and the bankruptcy as well.
The organizational structure could also be set where the mitigation or enhancement of business success will help in paramount importance with better political standards. The resources are defined through handling business goals and the innovation needs to be related to management and development of product, marketing and promotion.
There are external business risks for PayPal where the economy problems are about impacts on business. The political and legal factors are related to the change in government and the other policies which have a direct impact on business which needs to keep abreast for the different developments. The technology and shareholders of PayPal Inc. needs to work on handling the investments of any profits for the growth with shareholders taking value for business in forms of dividends. There are different methods which could be used to evaluate the success depending upon transformational strategy with increased communication between the employees . They are based on working with strategic and the tactical goals to meet the specific results that aims for marketing, innovation and productivity. The performance and attitude with public responsibility needs to be evaluated with goal and value setting. The strategies are designed to focus on directing and sustaining the changes in order to allow the adaptation for the different unexpected results (Witherspoon, 2018).
3.1. Analyze ways in which an organization positions itself to outperform its competitors
The competitive advantage of PayPal wallet helps in encouraging the customers to add their information of credit cards to PayPal. They have the possibility of making the checkouts easy. There are cost advantage where PayPal works on improving the performance through quality products or services at a lower cost. Here, the company, then sells the product at a same price as competitors with ripening the higher profit. The differentiation advantage is about offering the unique products with services that include charging premium prices. The strategy is about company positioning itself in branding, advertisement, designing and the quality for a better product development. The customers are also willing to pay a higher price with the unique features and a better quality.
Use of Digital Payments: The fat wallets are getting fatter where the company has been changing its stance on default payment options which include the credit card, issuers who have been incentivizing the customers to properly add the information to the cards on PayPal. The company might increase the usage of digital wallets where Google is likely to collect more data on shoppers. The users also gain more incentives for adding different payment options.
Cross-Screen Optimization: Here, with the growth of mobile, marketers are working on delivering the same content in and across the different screens to build and properly maintain it on the different sites for the desktop and mobile .
Performance issues & Low Infrastructure Costs: There are adaptive designs which includes the elements which is based on the screen size and then focusing on optimizing the site as fast as possible.
Unique Platform & Global Presence: The company offers a wider platform with the end-to-end unique interface that helps the customers with consumers and merchants to go digital with mobile transactions in a hassle-free manner. With this, the company is able to expand its operations in more than 200 countries which has been helpful to increase in revenues and then help in improving the interface or platform for better exposure.
Business: The operations are found to be more than 18000 workforces where the global development helps the company to work with processing the payments volume of approximately $359 billion in 2016 with handling more than 6.1 billion transactions of payment.
3.2. Evaluate appropriate competitor advantage strategies for emerging, maturing and declining positions.
Emerging Industry: There are low entry barriers and the lower level of product innovation with higher needs for trust and local firms who inspire more trust. The lack of needs for standardization does not require the real economies of scale. The differentiation is a key factor where PayPal need to focus on the unique wants and the needs of people.
Maturing : The positions are one centered on a new product where the companies are not only focusing on the beginning with low competition. There are high marketing costs with the product and services that are determined at an unknown quantity. The key advantage is about the emerging industry with first mover advantage where the positioning is considered to be a technology leader with competitive advantage. The company like eBay is for power where it is working on shaping the industry and working on suiting the company strengths as well.
Declining Positions: PayPal Holdings need to focus on the demographic shifts with lower pricing substitute products, change in needs or the wants with higher costs of components. The assumptions are not only of the decline which has to be reversed but also the remaining players in the market are set with limited options. The strategy of PayPal could be to work with handling the profitability survivor strategy.
4.1. Discuss how emerging global issues can impact upon the strategic management and planning activates in an organizations
There are different issues related to the global business which can impact the proper strategic management and planning. It includes the joint ventures, franchises and the establishing of the subsidiary company. The allocation of resources might also be affected by the company structure where the resources are transferred from one place to other place, where the type of balancing might save the costs to provide funds. The plans and policies need to be followed in different departments with proper production, financial and marketing with research and development. The leadership helps in creating a powerful team with mass communication. PayPal needs to focus on initiating the new projects with anchoring new approaches.
Hence, PayPal needs to focus on improving the following factors:
- Global Strategy: The customer liking is found to be same how the markets are presumed. The standardized products could be sold in all the markets with competitive advantage in economy. It leads to centralization of R&D activities with decentralization of production .
- Multidomestic strategy: The company needs to focus on achieving the higher levels of responsiveness where the customer choices and preferences are different for different countries. They are important for matching the market requirements effectively.
- International Strategy: PayPal needs to work on handling the export of services in countries, where the control is retained.
- Transnational Strategy: It helps in lowering the costs and higher local responsiveness to generate better ideas.
4.2. Evaluate the impact of stakeholder interests in shaping strategic management and planning activities in an organization
PayPal needs to focus on improving the decisions or project development with providing ideas that will help in improving the quality of service provided to the customers. The stakeholders who are from different backgrounds look at the issues with different perspectives. This enables to focus on problem solving resources, with engaging the stakeholders who are involved in the process. The increased chances of the project to be successful are through informing the people of the updates. The information needs to be determined with progress as the stakeholders are mainly involved in the positive communication. The employees who are the stakeholders are paid for a job, with clear set of goals and resources that helps in building engagement. The employees have a project to succeed with job security, potential promotion etc. The prevention is from unforeseen problems which comes with reality and also how the projects are grander in scope. The company is engaging in the development of technology platform for digital payments where the solutions include the management of two-sided proprietary global technology platform for linking the customers which consists of merchants and the consumers. They tend to focus on facilitating the processing of payment transactions.
4.3.Analyse ways in which organizations respond to environmental factors, when making strategic plans.
The environmental factors are related to the different markets with the different norms and environmental standards which direct impact the profitability of the organization. The country needs to focus on different environmental laws and liability wherein Texas and Florida has different liability clause when compared in case of mishaps or the disaster. There are new markets which are entering and need to evaluate the operations based on the weather, change in the climate and the laws which tend to regulate the environmental pollution as well. The air and water regulations in Credit Service industry, recycling requires to manage the waste in financial sector. The attitudes are towards the green or ecological products with endangered species that allow the support for the renewable energy. The time with speed, convenience and the security is made for PayPal online platform where eBay is a small-time seller. PayPal has been dominated with e-commerce market with focusing on how the online platforms are used for the different aspects of financial services that includes the consumer credits and the mobile card acceptance with even card insurance. The analysis is based on facing increased competition with payments that are for innovative start ups that aims to solve problems with siphoning a portion of payment transaction fees. PayPal has been considered to be next payment innovation with e-commerce space making inroads in other aspects which includes the mobile and other instore payments. PayPal competes in corner of payments with first time card payments that are relatively focusing on the potential to revolutionize the entire shopping experience of the consumer.
The major focus also comes on the culture of PayPal which requires to handle the recruitment of staff and then to engage mainly in the training and volunteering for building a better capability of organisation. The training is considered an important aspect for the business management with implementing strategies for development and the volunteers will not only be handling the management of task easily but also work on appreciation by customers of business. The management and the assets of a team and leadership styles are generally employed by the managers who have a major impact on the morale of staff and organization culture.
PayPal has been the virtual payment transaction system which is set to handle and unfold the online factors where the consumer is able to make the transactions through mobile devices. It wants the end-consumer to opt for PayPal with wants to aim to build the agnostic platform which will allow the retailers for better software developers and leveraging PayPal network programs. The envisioning is about how the consumers are making use of enabled wallet with different payment transactions that are popular for the online platforms.
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