12. Snap Inc. Stakeholder Analysis. Executive Summary.
Added on - 22 Sep 2019
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1Snap Inc. StakeholderAnalysis
2Executive SummaryThe current study is about the Snap Inc.’s stakeholder analysis. Snap Inc. has been a well-known social media organisation that has been competing with some global entities such asGoogle and Facebook. Over a period of 7 years since the incorporation, it has got immensesuccess to reach around 187 million people around the world.With the growth, it has developed relationship with a number of people who directly orindirectly influence or get influenced by the entity. These people (stakeholders) are the keyof organisational success at various aspects.The report talks about the stakeholders of Snap Inc. entirely. At first, this highlights the keystakeholders followed by the 4 important stakeholders who are categorised as perorganisation centric stakeholder theory. Finally, an analysis is done with these keystakeholders and also some useful recommendation are provided to improve relation.
31.0.Introduction1.1.About the CompanySnap Inc. is an American multinational that is associated with majorly with social mediamarket. The Company came into existence in September, 2011. Evan Spiegel and BobbyMurphy are the founders of this multimedia entity. The entity is listed with NYSE1as SNAP.The company offers multimedia tools such as Snapchat, Bitmoji and Zenly. Apart from that,it diversified its business into lifestyle segment by offering Spectacles (Brand of Snap Inc.that produces Smart glasses). (Etlinger 2016)1.2.Stakeholders- A brief ideaStakeholders for a corporation such as a public or private limited company refer to all thosepersons, group and organisations that are having interest or concerns with an organisation.Stakeholders can affect organisational policies, procedures, actions etc. and the entity canalso affect the stakeholders with the same. Stakeholder numbers depend on the scope ofthe entity i.e. its business area. Some of common stakeholders are owners, shareholders,employees, government, customer, creditor etc.Stakeholders’ influence on entity and influence of entity on them are not same. Therelativity of influence depends on relationship (transactional, legal or social) of the entitywith the stakeholder. (Stafford 2016)Stakeholder’s engagement is now becoming an important task because they can affectbusiness and reputation of the entity in the market.2.0.Stakeholders of Snap Inc. (particularly forSnapchat)2.1.Who are the stakeholders?Snap Inc.’s majority of the revenue comes from its social media application called Snapchat.It is a mobile messaging application which is used for sharing photos, videos, text and1NYSE- New York Stock Exchange
4drawings. Recently, audio and video calling features have been added to make theapplication platform as an alternative traditional telecommunication or video conferencing.The application is “free of cost” and available on two most widely popular Operating SystemAndroid Google and Apple IOS. Due to its wide utility, the application has been widelyacceptable among young population.For Snap Inc.’s Snapchat, the stakeholders can be put as below- (Freeman 2001)1.Founder/Board members2.Shareholders3.General public user4.Government5.Vendors6.Corporate Partners- corporate customers7.Community8.Employees2.2.Why they are important?The above mentioned stakeholders are the important for the following reasons- (DeVries2017)StakeholdersImportanceFounder and boardmembersFounders and board members are the drivers of the entity. Theyhold the maximum shares of Snap Inc. so they are the major risktakers of the entity. They formulate policies and strategies ofthe entity. The entity’s success is highly dependent on theirplanned actions. It is the reason why they are importantstakeholders.ShareholdersThe entity is a listed company thus many retail investors havebought shares through IPO2. So they have expectations ofgetting good Return on Investment (ROI) from the entity. Sothey are also important for the entity as they provide financialsupport to the company.2IPO- Initial Public Offering- A process by which an entity offers shares of the company to general public forgetting minimum subscription to be listed in the stock exchanges.