Snap Inc. Company Analysis and Strategic Management Objectives

This assignment provides a comprehensive analysis of Snap Inc., including its company overview, organizational structure, system approach benefits and drawbacks, and innovative strategic management objectives. The report uses Johnson & Scholes cultural web framework to identify the company's culture and narrative input chart story, providing insights into Snap Inc.'s operations and future plans.

Management and Organization
Snap Inc.

MANAGEMENT AND ORGANIZATION 1
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................2
Overview of Snap Inc.............................................................................................................2
Organizational Structure of Snap Inc.....................................................................................3
Task 2.........................................................................................................................................3
System Approach...................................................................................................................3
Benefits of System Approach.............................................................................................4
Drawbacks of System Approach........................................................................................4
Narrative Input Chart Story....................................................................................................5
Task 3.........................................................................................................................................7
Michael Porter’s Five Forces Framework..............................................................................7
Threats of New Entrants.....................................................................................................7
Bargaining Power of Suppliers..........................................................................................8
Bargaining Power of Buyers..............................................................................................8
Threats of Substitute Services or Products.........................................................................8
Rivalry among the Existing Competitors...........................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................12
Appendix 1...........................................................................................................................12

MANAGEMENT AND ORGANIZATION 2
Introduction
The organization can be defined as a set-up where people from various backgrounds, varied
interests, and educational qualifications come together in order to work for achieving a
common objective (Management Study Guide, 2018). “An act or process of organizing or of
being organized is known as Organization”- Merriam Webster. Organization management
helps in bringing out best from every employee in order to complete the task in the given
timeframe. This report is being prepared in order to identify how an organization manages its
functions to survive in the competitive market. To identify this Snap Inc. Company has been
selected. The report involves three tasks which will help in identifying the management
approaches and management objectives of the company.
Task 1
Overview of Snap Inc.
Snap Inc. is a social media company of America which was established in 2011 with
headquarter in California. In 2017, the market value of the company was US$ 824.949
million. The founder of the company is Bobby Murphy and Evan Spiegel (Nasdaq, 2018).
The company offers 4 products i.e. Zenly, Spectacles, Snapchat, and Bitmoji. It was initially
called as Snapchat Inc. upon its inception, but in 2016 it was renamed as Snap Inc. so that
Spectacles products can be included under a single company. The company operates as a
camera company in the U.S. The Snapchat product of the company is a camera application
which helps individual to interact with images and short videos. It also offers Camera, which
is a tool used to add and personalize context to the Snaps (Reuters, 2018). It involves a
Friends Page that allows making and watching stories, making voice, chatting, and video
calls and interacting with a wide range of related stickers and Bitmojis (Bloomberg, 2017).

MANAGEMENT AND ORGANIZATION 3
Besides this the scope and scale of the company can be explained by the data which reflects
that the whole world is not using the products of Snap Inc. yet but approx. 100 million people
use it daily, and worldwide there are approx. 200 million active users (Newberry, 2018). The
number of the user of Snap Inc. products is increasing, therefore it can be said that there is
huge scope for company to grow and increase the worldwide users.
Organizational Structure of Snap Inc.
From last six years, the organizational structure of the company has an important role in its
long-term strategies. The company began at the time when Evan Speigel CEO of Snap, came
together with his classmates, Bobby Murphy, who is now the Chief Technology Officer of
the company, also the co-founder of Snapchat app. Still, the company is being handled by the
two founders with 5 executive officers. As per the information the company had 1,859
employees in December 2016. For achieving diversification and growth an organizational
culture has been built which is diverse yet inclusive. The company's main aim of going public
is to retain and attract highly talented people, including product managers, software
engineers, and designers. They compete for talent by developing a culture of functioning hard
to make great experiences and products and permitting employees to have a contribution to
the exciting and new projects (Matthies and Parvin, 2018).
The team and talent oriented structure of Snaps has always supported company to be
successful in its mission of developing and expanding. Every feature of the operation of the
company from the development of the product, to its legal obligations and financial aspects,
are structured with extremely experienced and skilled officers’ who help in making good
decisions. The company’s organizational structure has been fruitful; however, it has to deal
with some criticism because of its inclusive nature and heavy structure. (

MANAGEMENT AND ORGANIZATION 4
Task 2
System Approach
The system approach is established on the simple concept that everything is inter-dependent
and inter-related. A system is the collection of the dependent and related element which when
in interaction forms a unitary whole. It is basically a combination and collection of parts
making complex whole. The important feature is that it is formed of the hierarchy of sub-
systems (Kühl, 2014). In turn, each industry and company is composed of various systems
and sub-systems so as Snap Inc. such as marketing, accounting, finance, and so on.
This approach will be the best approach that will suit the nature of the company and can be
adopted in the business easily.
Benefits of System Approach
 This approach helps in increasing the adaptability of the organization to
environmental changes. The organization is considered as a whole and not by its
parts. This allows it to adapt to the environment needs. Verdicts are given by
analyzing the micro as well as the macro environment.
 Consistency in the process of decision making so that no particular field gets special
treatment (Ghonaimy, 2014).
 The emphasis is on accomplishing the organization’s individual and overall goals.
Drawbacks of System Approach
 Does not provide specific functioning style in the organization.
 The arrangement of the interrelationships has to be performed appropriately or else it
might be counterproductive.
 It may not be always appropriate for smaller organizations. The model assumes that
maximum of the organizations is complex, open systems, and big.

MANAGEMENT AND ORGANIZATION 5

MANAGEMENT AND ORGANIZATION 6
Narrative Input Chart Story
The beginning
2011
Culture
Logo
Stories
Rituals
and
Routines
Symbols

MANAGEMENT AND ORGANIZATION 7
Evan Spiegel and Bobby Murphy are the ones who established Snap Inc. in the year 2011 in
California, the U.S. In 2016, the company changes its name to Snap Inc. and revealed its
eyeglasses product known as Spectacles. Along with this in this year company filed its
document for IPO (Initial Public Offering) with a projected value of $25-35 billion. In 2017,
the company announced its international headquarter in London. As of February 2018, 95%
of the combined voting power is with both the founders (Snap Inc., 2017).
Besides so many ups and downs and changes in the business, the culture of the company was
consistent which helped them in attaining the success in the competitive market. Snap Inc.
has an expressive internal culture which is apparently based on “humanity”. Apart from a
program which is implemented to support team members financially who are going through
adverse circumstances, the company also arrange some sessions of group therapy for its
employees and a charity division that provides funds for education, youth campaigns, and
fund arts(Econo Times, 2018).
The Snapchat use a ghost for its logo because whatever is posted or texted on the Snapchat
gets disappear after some time (24 hours) (Douglas, 2016). Further, the offices of the
company are dispersed throughout the area which provides conveyance to the employees as
they can reach to the offices easily.

MANAGEMENT AND ORGANIZATION 8
Task 3
Michael Porter’s Five Forces Framework
Source [https://www.professionalacademy.com/blogs-and-advice/marketing-theories---
explaining-porters-five-forces]
Porter Five Forces is a complete strategy framework that makes a strategic decision by not
just analyzing the current competition. The focus of Porter Five Forces is on the Snap Inc.’s
method of building a viable competitive advantage in Service industry and Internet Software.
This framework can not only be used by the company’s manager for creating a strategic
position in the service industry but also can help in exploring profitable opportunities in the
technology sector.
Threats of New Entrants
New Entrants in the market bring new and innovative ideas, new methods of pursuing
business which in turn put pressure on Snap Inc. by pricing strategy, offering a new value
proposition and reducing costs to the customers (Fern Fort University, 2018).
In order to face all these challenges of new entrants, the company has decided to rebuild its
Android app to optimize performance. Due to improved performance of the app new
customers have joined the company. Android App’s new version will be launched in the
selected market.

MANAGEMENT AND ORGANIZATION 9
Bargaining Power of Suppliers
Every company in the service industry purchase the raw material from various suppliers.
Suppliers in central position can reduce the margins that can be earned by the Snap Inc. in the
market. The company can handle this aspect by making well-organized supply chain which
involves multiple suppliers.
Bargaining Power of Buyers
Most of the time buyer’s demands are high. They are always willing to purchase the best
service by paying minimum price. This puts the profitability of Snap Inc. in pressure. If the
customer base is small yet powerful then the bargaining power of the customers becomes
high and forces company to offer discounts.
The company can tackle this aspect by increasing its customer base. It will provide two
benefits to the company i.e. it will help in decreasing the customer's bargaining power and it
will offer a chance to the company to rationalize its production and sales process.
Threats of Substitute Services or Products
The profitability of the industry suffers when a new service meets the existing needs of the
customers in a different way. For instance, Google Drive and Dropbox are the substitutes for
storage hardware drives.
Snap Inc. has taken step to tackle this problem is by simplifying its Snapchat product because
they identified from the feedback of the customers that customers feel difficulty in using this
application.
Rivalry among the Existing Competitors
If there is intense rivalry among the existing companies in the market then it will lead to
decrease in the prices which will result in decreasing the industry profitability. Snap Inc.

MANAGEMENT AND ORGANIZATION 10
Company functions under extremely competitive market of service and software industry.
This competition decreases the overall profit of the company.
To deal with this competition company can collaborate with its competitors such that market
size of the company can be increased.
Conclusion
The above report has provided a brief overview of the Snap Inc. Company and its
organizational structure which has helped the company in sustaining in the market for the
long run. A modern management approach i.e. System approach has been explained along
with its benefits and drawbacks in order to identify its use in the company. Besides this, a
Narrative input chart story has been projected by using three elements of Johnson & Scholes
cultural web framework i.e. Stories, Rituals and Routines and Symbols. In the end, two
innovative strategic management objectives of Snap Inc. have been identified by using
Porter's five forces framework i.e. Rebuilding the Android app to optimize performance and
Simplifying the way of using Snapchat.

MANAGEMENT AND ORGANIZATION 11
References
Bloomberg (2017) Company Overview of Snap Inc. [online]. Available from:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=224055283
[Accessed 13 March 2018]
Douglas, D. (2016) Why did Snapchat decide on using a ghost for their logo? [online].
Available from: https://www.quora.com/Why-did-Snapchat-decide-on-using-a-ghost-for-
their-logo [Accessed 13 March 2018]
Econo Times (2018) Snapchat’s IPO Reveals “Unique” Company Culture, Houses As Office,
Future Plans [online]. Available from: https://www.econotimes.com/Snapchats-IPO-Reveals-
Unique-Company-Culture-Houses-As-Office-Future-Plans-523186 [Accessed 13 March
2018]
Fern Fort University (2018) Snap Inc. Porter Five Forces Analysis [online]. Available from:
http://fernfortuniversity.com/term-papers/porter5/analysis/3918-snap-inc-.php [Accessed 13
March 2018]
Ghonaimy, M.A.R. (2014) Systems Approach for Development. Netherlands: Elsevier.
Kühl, S. (2014) Organizations: A Systems Approach. U.K: Gower Publishing, Ltd.
Management Study Guide (2018) Organization Management - Meaning, Need and its
Features [online]. Available from: https://www.managementstudyguide.com/organization-
management.htm [Accessed 13 March 2018]
Matthies, N. and Parvin, S. (2018) An Evaluation of Snap Inc. and its Recent Decision to Go
Public [online]. Available from:

MANAGEMENT AND ORGANIZATION 12
https://www.umflint.edu/sites/default/files/groups/Research_and_Sponsored_Programs/
SRC/2017/n.matthies-s.parvin.pdf [Accessed 13 March 2018]
Nasdaq (2018) SNAP INC (SNAP) IPO [online]. Available from:
https://www.nasdaq.com/markets/ipos/company/snap-inc-899497-82723 [Accessed 13 March
2018]
Newberry, C (2018) Top Snapchat Demographics That Matter to Social Media Marketers
[online]. Available from: https://blog.hootsuite.com/snapchat-demographics/ [Accessed 13
March 2018]
Reuters (2018) Snap Inc (SNAP.N) [online]. Available from:
https://www.reuters.com/finance/stocks/company-profile/SNAP.N [Accessed 13 March
2018]
Snap Inc. (2017) Introducing the new Snapchat [online]. Available from:
https://www.snap.com/en-US/news/ [Accessed 13 March 2018]
The Official Board (2018) Snap Inc. [online]. Available from:
https://www.theofficialboard.com/org-chart/snap-inc [Accessed 13 March 2018]

MANAGEMENT AND ORGANIZATION 13
Appendix
Appendix 1
Source [[(The Official Board, 2018)]