( SM ) Strategic Management Assignment
Added on 2020-05-28
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Running head: STRATEGIC MANAGEMENT AND COMPARISONSTRATEGIC MANAGEMENT AND COMPARISONName of the StudentName of the UniversityAuthor Note
1STRATEGIC MANAGEMENT AND COMPARISONExecutive SummaryWide space is a large corporation, founded in Sweden in the aim of providing a new platform formobile internet advertising using the smart phones and mobile apps. On the other hand, Hassle isa SME, which started as a digital platform for providing booking and payment options for thelocal customers to avail the cleaning service by using internet. Overtime, both the companieshave grown into international companies with the help of strategic leadership and managementand technological innovation. The aim of this report is to discuss about the difference in the business approach of Wide spaceand hassle.com. Business models being followed by both these organizations are being discussedin this report. In addition, the internal management includes the organizational process andleadership styles being followed in hassle.com. The motive behind the acquisitions and sellinghassle.com to helpling is also being discussed in this report. This report concludes that, boththese organizations are having different business approaches. One of the key similarities beingidentified is the offering of distinctive services to the customers. The development strategies thathave been adopted by the two companies since their inception has been described in detail withparticular milestonesThe next section throws light on the various leadership styles that are present and compares andcontrasts the leadership style of the leaders of the Wide space as well as the Hassle.comcompany. These leaders are Patrik Fagerlund and Jules Coleman. Their leadership style has beenexplained in detail along with reference to entrepreneurial leadership concept. The last section of the assignment describes the Organizational Culture of both the companiesusing the web cultural framework model. The conclusion summarizes the assignment.
2STRATEGIC MANAGEMENT AND COMPARISONTable of ContentsIntroduction......................................................................................................................................3Brief history of the companies.....................................................................................................3Strategic analysis and SWOT analysis........................................................................................4Products and services...................................................................................................................7Growth Patterns...............................................................................................................................9Generic and Developmental Strategies..........................................................................................11Development Strategies.............................................................................................................16Organizational Culture...................................................................................................................22Web cultural framework............................................................................................................22Conclusion.....................................................................................................................................27References......................................................................................................................................28
3STRATEGIC MANAGEMENT AND COMPARISONIntroductionStrategic management and leadership play a very important role in developing theorganizational culture and growth patterns of an organization. These help in shaping theorganizational activities, which in turn helps in making the brand image of an organization(Rothaermel 2015). In the following report, the comparison between a large corporation, that is,Wide space, and a SME, Hassle.com, is made to find out the difference in the impact on theorganizational growth due to difference in their strategic management and leadership styles. Wide space is a mobile advertisement company, headquartered in Sweden. It took theidea of advertisement using the mobile internet when the smart phones are just being launched.Overtime, as the smartphone industry went through a revolution, the scope for Wide space grewleaps and bounds. On the other hand, Hassle.com is a online platform for booking and paymentthat establishes a connection between the customers and pre-vetted local cleaners. It is a digitalstart up based in Vauxhall, in London. Brief history of the companiesWide space was established in 2007 in the USA. The founders, Patrik Fagerlund andHenric Erhenblad got together while working in Ericsson. Henric worked in businessdevelopment in Sweden, USA and China, and Patrik worked in sales in USA and Sweden, forEricsson. They integrated their business ideas and came together to start the business for mobileinternet advertisement in 2007. Since, the smartphone technology was absolutely new at thattime, with iPhone just entered into the market, the idea for mobile internet advertising was newand challenging and saw very slow growth rate in the initial two years. The reason was that thesmartphone was not widely used by the people. Their target companies were the media agencies
4STRATEGIC MANAGEMENT AND COMPARISONand the head of those businesses were not much inclined towards the new mobile technology.Hence, initially, Wide space faced obstacles while growing. Apart from that, the foundersrealized the need for their own technology and sales team to make a position for themselves inthe market. Hence, they hired an experienced Marketing Head from Nokia for brand building.Around 2014, the company was able to make a branding in the mobile internet advertisingmarket (Wennberg 2017). Hassle.com, a digital startup, was co-founded by Jules Coleman, Alex Depledge and TomNimmo in 2012 in London. Its original name was Teddle. They founded this company with thehelp of Techstars London and several angel investors in 2012. In 2013, they rebranded andchanged the name to Hassle. The reason behind such unusual name was that the founders wantedto remove the hassle of cleaning from people’s lives and make their lives easier, so that they canpursue the things that they love. Initially, it started with 27 service providers, such as, drivinginstructors, personal trainers etc. and at the end of 2012, they channelized their business towardsonly house cleaning service providers. Hassle has grown very rapidly and acquired its Germancompetitor Helpling in 2015 and took the process of expansion into the Europe (Helpling.co.uk2018). Strategic analysis and SWOT analysisStrategic analysis of an organization refers to the analysis of different forces thatinfluence the business capacity of the organization (Grant 2016). The forces can be internal aswell as external. For the external forces, PEST (Political, Economical, Social and Technological)model is used and for the internal force analyses, SWOT is performed.
5STRATEGIC MANAGEMENT AND COMPARISONPEST analysisFigure 1: PEST analysis structure(Source: Google image)Wide spaceHasslePoliticalStable political condition ofthe countries has helped it togrow their business.Stable political condition ofthe countries has helped it togrow their business. EconomicalThe company expanded itsbusiness in the developedcountries, due to moreavailability of capital, stableeconomic conditions, andimproved technological andeconomical facilities.It also expanded in thedeveloped countries of Europeand other developed countries,like UAE, Australia andSingapore, which have strongeconomic background tosupport their need for capitaland financial capacities of thecustomers.SocialThe expansion in the customerbase of smartphone and onlinemedia publishers hascontributed to in the growth ofthe company Increase in the number ofinternet users and number ofworking professionals in thesociety has contributed in itsgrowth.
6STRATEGIC MANAGEMENT AND COMPARISONTechnologicalInvention and continuousinnovation of the smartphonetechnology is the backbone forits growth.Improvement in thetechnology in terms of secureonline payment, databasetechnology and GPStechnology has contributed inits growth. SWOT analysisWide spaceHassleStrength Technological innovation indeveloping new advertisingchannelsNew concept of business withthe integration of technologyWeaknessStaggering growth in theemerging marketsBuilding and marinatingdatabases of the cleaningservice providers in foreigncountries, especially in thedeveloping countriesOpportunityGrowth of manufacturingindustry and servicecompaniesGrowth in the increasingnumber of internet usersacross the world ThreatRisingcompetitiondomesticallyandinternationallyRisingcompetitiondomesticallyandinternationallyProducts and services Wide space started the business with a commitment to offer premium advertisement formobiles. This highlights the facts that their products and technology includes the classical banneradvertisements along with adding the real customer value to the clients as well as to the end-users. They have been providing the advertisements through different formats. Those are asfollows:
7STRATEGIC MANAGEMENT AND COMPARISONThe Splash: full screen ad for three seconds during the loading of an app and clickable ad withinthe app.Video banner: video ads played directly in the app, becoming full screen when clicked andbecoming banner again after finishing playing. Store locator: interactive map by displaying the street view in the banner for locating the neareststore using the GPS technology of the smart phones. Calendar: one click on the ad allows the user to set an event or reminder on the calendar on thephone.The Swipe: users can switch through unlimited number of images through one slide over theadvertisement. Voice ads: users can interact with the ads via speech. This new technology is developed with thepartnership of a U.S. based technology firm, Nuance Communication. Apart from these, Wide space introduced new software that would enable the media agencies orad publishers increasing their revenues on their own. The international media houses use thisnew technology to deliver the mobile customized advertisements from the advertisers to thereaders. This generates a significant value added for the advertisers with automatically generatedanalytics (Wennberg 2017). On the other hand, Hassle.com is a digital platform that establishes a connection betweenthe homeowners and the local cleaning service providers. The customers can book and pay toany cleaner through this platform. They have made a database of all the cleaners based on the zipcode. The customers can look for the cleaner, whose profile and price matches the best with their
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