Snap Inc: An Overview of Organisation and Management

This report provides an overview of Snap Inc.'s organisation and management, including its hierarchy, modern management approaches, objectives, and strategies. It discusses the company's vertical hierarchy, situational analysis and management science approaches, financial and customer objectives, and differentiation strategy.

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Organisation and Management
Snap Inc: An Overview

Organisation and management 1
Table of Contents
Introduction...........................................................................................................................................2
Hierarchy level of organisation:............................................................................................................2
Concept of modern management approach:...........................................................................................4
Theory 1: Situational Analysis..........................................................................................................5
Benefits:........................................................................................................................................5
Drawbacks:....................................................................................................................................5
Theory 2: Management Science Approach........................................................................................5
Benefits:........................................................................................................................................5
Drawbacks:....................................................................................................................................6
Objectives..............................................................................................................................................7
Financial Objectives......................................................................................................................8
Customer objectives......................................................................................................................8
Strategy of cost leadership:............................................................................................................9
Strategy of differentiation:...........................................................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
Figure 1: Organisation structure OF Snap Inc...........................................................................4
Figure 2: Culture story...............................................................................................................7
Figure 3: Porter's Generic strategies..........................................................................................9

Organisation and management 2
Introduction
Snap Inc. is rated as a high tech social media company which is having its roots in America.
The company came into existence on 16th 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.
Hierarchy level of organisation:
The concept of organisation structure was initiated in the middle phase of 20th 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

Organisation and management 3
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).

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Figure 1: ORGANISATION STRUCTURE OF Snap Inc.
(Source: Crunchbase, 2016)
Concept of modern management approach:
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
Evan Spiegel
( Co-Founder & CEO )
Robert Murphy
( Co-Founder & Chief Technology Officer )
Reggie Brown
( Co Founder )
Luke Kallis
( Head of West Coast Sales )
Drew Vollero
( Head of Finance )
Radhika Kakkar
( Director of Customer Operations )
Robyn Thomas
( VP Legal and HR )
Timothy Sehn
( VP Engineering )
Tom Conrad
( VP of Product )
Nick Bell
( VP of Content )

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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.
Theory 2: Management Science Approach
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.

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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.

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Figure 2: Culture story
Source: (Snap chat Inc., 2015)
Objectives
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.
Culture Story

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Financial Objectives
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.
Customer objectives
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

Organisation and management 9
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.
Strategy of cost leadership:
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

Organisation and management 10
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.
Strategy of differentiation:
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.
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.

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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.

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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: http://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.

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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.

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