Snap Inc. - High-Tech Social Media Essay Company.

Using your knowledge of effective management and organisational practices, learnt on the module and reliable information from own wider reading on the company “Snap Inc.”, carefully address the following tasks:

Task 1

a) Introduce the organisation. (Your description should include details such as; what the organisation does; its scope and scale; the industry it operates in; its market value; when and how the organisation was created)

b) Describe the organisational structure of the company. (You should include relevant definition of terms and, where possible, use diagrams to support your answer)

Task 2

a) Identify benefits and drawbacks of one modern management approach that could be used in the company. (Modern Management approaches such as situational, contingent, systems, or other, should be considered)

b) Using guidance from any three elements of Johnson & Scholes (1988) cultural web framework, include “a 3-picture narrative input chart story” to describe the organisational culture of the company. (Use the narrative input chart template, attached as appendix I of this coursework brief and include relevant definition of terms where relevant)

Task 3 Analyse two identified innovative strategic management objectives of the company. 
 

Introduction to Snap Inc.

Snap Inc. is rated as a high tech social media company which is having its roots in America. The company came into existence on 16^th September 2011 by conjoint efforts of Bobby Murphy together with Evan Spiegel.  The company is headquartered in Venice city which is also recognised as “Silicon Beach”. Moreover, it is a public company which forms the categorisation under the broad framework of Hardware Social Media commerce. It has worldwide framework with around 3069 employees with the net generated value of US$824.95 million as per the figures of 2017. Approximately it has a marketplace capitalisation of 19.47B approximately (Snap Inc., 2018).

The work carried out by the company consists of creating and maintaining the procedure of image sharing with the help of various mobile applications. It allows people to upload pictures and edit in it. Also, the company focused on developing and manufacturing of its secondary product line i.e. spectacles. The product features along the camera lens which is capable enough to store videos, harmonise it with relative account of online user through smartphones. Additionally, a personalised application of its subsidiaries such as Bit strips which activates the functioning of Bitmoji was put into practice in July, 2016 (Worley and Doolen, 2016).

This report highlights the brief portrayal about Snap Inc. organisation and its relevant organisation structure. It also takes into account the methodologies of modern management approaches and later decides on the objectives which can be reframed to withhold in diverse market. The relationship between functional management, strategic objectives and respective business environment is also deeply recognised.

The concept of organisation structure was initiated in the middle phase of 20^th century formerly. There were primarily two categorisation formed: vertical and horizontal in nature. To ensure that the stream of information goes from top to bottom the management of Snap Inc. need to implement the vertical dimensions of hierarchy. The top regulators frame the policies which further governs the working of the companies operation. Thereafter, the information passes onto the middle level management so that they can select between the alternatives available by analysing the quantum of profit to be earned is maximum and cost of resource deployed is limited. Lately, the assessed information is surpassed to area of functional level and required training is imparted for proper execution (Gureva, 2016).

The organisation assembly of Snap Inc. is described in detail below with various hierarchy levels. The picture attached below depicts the corporate structure of Snap Inc. which also shapes the stages of authority, responsibility and accountability. The vertical flow start from the top executive level i.e. co-founders, to its secondary level i.e. directors along with last stage of functional team members such as managers (Joseph, Klingebiel and Wilson, 2016).

Organizational Structure of Snap Inc.

Figure 1: ORGANISATION STRUCTURE OF Snap Inc 

(Source: Crunchbase, 2016)

 The concept of management is enduring and crucial for the growth of organisation. As a result, the theoretical framework binding on the managerial theory suggests measures to be taken by managers in order to manage the complex organisation structure.  There are numerous theories which comprehend the work of Henry Fayol’s, Elton Mayo and Frederick W. Taylor (Certo and Certo, 2015). With the advent of progression made in management theory, several approaches were discovered such as Situational theory, System theory, Contingency theory, chaos theory along with predefined approaches of Team building. From aforesaid, two theories have been briefly discussed along with respective benefits and drawbacks attached.

Theory 1: Situational Analysis

Benefits:

1. It takes into account the leadership traits which a leader should follow for maximum gains.
2. This real-world approach is very simple in understanding and implementation throughout the channels of diversified variety.
3. This theory has gained momentum because of its intact training capability to train corporate leaders (Stewart and Cureton, 2014).
4. The focus is imparted on innovative ideas and proportion of flexibility among the leader.

Drawbacks:

1. It neglects other culture subjective matter and draws the attention on priority towards values.
2. It is also remarked for the creation of individual constraints along with peer pressure force in decision making (Fortune, 2018).
3. Since the approach is highly long term in nature and structure, it is expected that it could result in deviation away from the profound strategy.

Benefits:

1. It provides aid in analysing, studying and solving problem of complex nature in systematic and quantitative way.
2. The resultant outcome is highly exact i.e. facts and figures.
3. Numerous techniques and mathematical tools are used such as simulation, queuing and statistical approach along with linear programming system.
4. Among employees and managers, an environment of orderly thinking is created. 

Drawbacks:

1. In the practical world circumstances, the process of decision making can be tedious as it requires undergoing complex calculations.
2. The data or information might be outdated in nature which results in disproportionate decision making structure.
3. The human resource within the organisation is not granted proper weightage as per the principles of this approach.

It is relevant that Snap Inc. shall follow the concept of situational approach in its management practices. This is recommended as a competitive measure and strategy to beat the increasing competition. The workforce can be trained to revolutionize a new range of emojis and filters so that users can be attracted towards its use. It tends to differentiate itself by serving some value addition in the services offered. Significantly, the Snap Inc. deals in sharing of message through the gateway of images it is expected to permeate more of the creative element in long run (Chen, Stegerean and NISTOR, 2017). One of the outstanding feature is messages get dissolved after they are read which minimises the chances of complexities.

The matter which is displayed below takes into account three out of the six elements of Johnson & Scholes (1988) model of cultural web. The frame work outlines some of the important aspects which are stated underneath.

The exemplar structure of Snap Inc. Company comprises of its vision, mission, goals and objectives which are both short as well as long term in nature.

“The product delivered by us empowers its users to prompt themselves, learn about the news update, capture the moment along with having the element of fun” (O'Neill, Beauvais and Scholl, 2016). 

“The belief is reinvention of the camera has been the greatest opportunity to build the place in      mind set of its users and communicate with them”.

Later the dimensions are enlarged on the concepts of routine elements and rituals which can be only availed by active users of Snap chat in a quarter time phase. This further show cases the possible outcomes on the enactment of paradigm which will be cherished by management. It also evaluates and synchronises the dealings with outside world along with perpetuation of recognised conduct and morals.

Modern Management Approaches

Figure 2: Culture story

Source: (Snap chat Inc., 2015)

Snap Inc. has three distinguished levels which defines objective into strategic objective, tactical objective and operational objectives. The subsequent objectives need to be clear and precise along with quantified time frame which is achievable and measurable. Within these recognised range, the two utmost important strategic management objectives are discussed in detail below.

They are often abbreviated and understood under the prospectus of financial goals which are planned up to accomplish under a specific time frame.

1. The revenue so earned determines the factors of stability and growth within the organisation.
2. The foremost concern is to build up and increase the value hold by shareholders.
3. The management must be cost effective in natures such as concept of cost volume profit (CVP) can be applied to arrive at breakeven analysis.
4. The propensity of financial leverage needs to be controlled and systematically managed.
5. The company shall aim at increasing the earning per share as it would in reflection with the amount of profits earned.
6. The tools and techniques to measure the funding and its allocation shall be strictly practiced.
7. Results need to be derived at proper intervals so that prevention actions can be taken. 

As customers are king of the market, they shall be addressed on priority level.

1. They must be given best of the services in context of the price charged. It will further increase the demand and supply from conflicting sides.
2. It generates the intellect of honour and pride to the company’s goodwill in the marketplace as maximum amount of customer satisfaction is rendered.
3. The opinion and feedback received from the customers side shall be given due consideration
4. The customers shall be given best of the product despite of the price, as it will bring along both existing and new customers.
5. To understand the need and intimacy level of customers, a separate strategy needs to be underlined so that targeted population could be influenced as per the specification.

To reach the worldwide situated customers, Snap Inc. needs to undertake the aforesaid objectives.  This will further provide assurance in regards of sustainability and profitability in market place. Also, the company need to formulate the designed procedure of annual cash flows and budget allocation. To obtain financial stability, the statements need to get audited by the recognised auditor and government authorities. As a result, transparency would be obtained among investors and shareholders about shares of the company.

Figure 3: Porter's Generic strategies

Source: (Griffin, 2016)

Correspondingly, the aforesaid objectives can have the further classification into competitive advantage and its relevant scope. The study of porter’s generic strategies states that companies are independent to plan up and implement the objectives as per the needs and requirements of customers. Later on the relevant strategy can be opted on grounds of its applicability (Newton and Statt, 2018). The diagram clearly shapes the interest prevalent in the company to deliver the services through diverse channels of mechanism.

This states that company exercise its efforts to gain maximum benefits as it is the only way to cut down the cost of production. With the increase in demand, per unit cost is minimised, hence it generates more profits. It also helps in facing the competitive threat along with profit realisation. On the contrary, it doesn’t takes into account the production of inferior quality products at low rates. In such an event, there will be total loss of revenue along breakdown of goodwill earned (Lin, 2014). To execute this strategy, the company is required to produce the products at competitive cost as compared to others dealing in uniform line of product and services. 

This strategy focuses upon uniqueness in the offering of services in the market place so that customers could be influenced in differentiated manner. The products are designed to meet the prerequisites of the customer in every possible manner without compromising on the areas of quality standards. Innovative measures shall be continued to lead the market area. The implementation shall be executed at product level by the method of price segmentation (Lasserre, 2017). The goodwill of the company will be estimated by the prolonged differentiated service for definite time period.

Strategic Objectives of Snap Inc.

In case of the Snap Inc. the most fruitful choice would be to select differentiation strategy as it need to regain the market capture after such a decline experienced in quarter ages. Some other competitive threats like the applications of Facebook, Instagram and Watsapp are likely to have resembled features as that of Snap chat.  In order to counterpart the competitors, some new filters and features shall be introduced

Conclusion 

It can be concluded that in this modern era of globalisation, strategic thinking has been discovered as the utmost requirement of every organisation. In order to sustain and survive within the boundaries of competitive world along with targeted market capture it is mandatory to have proper management. Alongside, formulation of corporate strategies can prove assurance for the stand in long run. The implementation of strategy helps in achieving required mission as well as objectives. It also helps in alignment of corporations with distinguished opportunities and environment. Moreover, it provides an insight of various internal and external dimensions of the adjoining environment. The decision making process is smoothen and employees are also encouraged. In context of Snap Inc. the use of modern management approaches will help to achieve the growth in respective hardware industry by aiding users with best of products and services. The company is expected to flourish universally by keeping the objectives specific in nature and attainable within a given time frame. 

References

Certo, S.C. and Certo, S.T. (2015) Modern Management: Concepts and Skills. Prentice Hall.

Chen, K., Stegerean, R. and NISTOR, R.L. (2017) A Modern Management Approach In Internet Era. In Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE (Vol. 11, No. 1, pp. 918-927). Faculty of Management, Academy of Economic Studies, Bucharest, Romania.

Fortune. (2018) Snap Touts Snapchat Redesign as Revenue, User Growth Send Shares Soaring, [Online]. Available at: https://fortune.com/tag/snap-inc/  [Accessed on: 20 April 2018].

Gureva, M.A., et al. (2016) Management of innovations and innovative process: concept, essence, classification and diffusion. International review of management and marketing, 6(6S).

Joseph, J., Klingebiel, R. and Wilson, A.J. (2016) Organizational structure and performance feedback: Centralization, aspirations, and termination decisions. Organization Science, 27(5), pp.1065-1083.

Lasserre, P. (2017) Global strategic management. Palgrave.

Lin, L.H. (2014) Organizational structure and acculturation in acquisitions: Perspectives of congruence theory and task interdependence. Journal of Management, 40(7), pp.1831-1856.

Newton, C. and Statt, N. (2018) THE SNAPPING POINT, [Online]. Available at: https://www.theverge.com/2018/1/5/16854242/snap-evan-spiegel-redesign-cheetah-corporate-structure [Accessed on: 20 April 2018].

O'Neill, J.W., Beauvais, L.L. and Scholl, R.W. (2016) The use of organizational culture and structure to guide strategic behavior: An information processing perspective. Journal of Behavioral and Applied Management, 2(2).

Snap Inc. (2018) Snap Inc., [Online]. Available at: https://www.snap.com/en-US/ [Accessed on: 20 April 2018].

Stewart, J. and Cureton, P. J. (2014) Designing, Delivering and Evaluating L&D: Essentials for Practice. Kogan Page Publishers.

Worley, J.M. and Doolen, T.L. (2016) Organizational structure, employee problem solving, and lean implementation. International Journal of Lean Six Sigma, 6(1), pp.39-58.