Strategic Management of Snap Inc.: Organizational Structure, Modern Management Approach, and SWOT Analysis

This paper provides a brief outline about the strategic management of Snap Inc. The company's organizational structure, modern management approach, and SWOT analysis are discussed. The role of managers in decision making, customer and financial objectives, and strategic frameworks used by the company are also covered.

Running head: Management and organizations
Management and organizations

Management and organizations
Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................3
1. Profile of the company............................................................................................................................3
2. Organizational structure of the company.................................................................................................4
Task 2..........................................................................................................................................................6
1. Modern management approach................................................................................................................6
2.Johnson & Scholes cultural web...............................................................................................................7
Task 3..........................................................................................................................................................8
Two strategic management objectives of Snap Inc......................................................................................8
Strategy and strategic management.........................................................................................................8
Role of managers in decisions making....................................................................................................9
Objectives................................................................................................................................................9
Customer objective................................................................................................................................10
Financial objectives...............................................................................................................................10
Strategic framework..............................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Management and organizations
Introduction
The main aim of this paper is to provide a brief outline about the strategic management of Snap
Inc. The company was founded in 2011 having employee’s approx 3069 across the world. Here
is the discussion about the organizational structure of the firm that is used by the company. On
the other hand, it also explains the modern management approach that is used by Snap Inc.
Company such as system approach. Furthermore, SWOT analysis, porter five forces analysis and
pestle analysis are done by the firm to overcome the competitors.
Task 1
1. Profile of the company
Snap Inc. is a social media and American technology company, incorporated in 16th September
2011 by Evan Spiegel and Bobby Murphy. It offers various products such as Bitmoji, Zenly,
Spectacles and Snapchat. There are approx 3069 employees employed in the company. The
company’s headquater is located in Venice city that is known as Silicon Beach. The revenue of
the company is US$824.95. In today’s world, the organization is expanding and exploring the
business activities and operations globally. Along with this, Snap chat is a group messaging and
one to one app that lets users send video, photo and text messages that disappear after the several
seconds1. The company’s application is available in more than 18 different languages throughout
the world. Snap chat is an image messaging application software product. Snap Inc. tops the list
of the 11 most significant companies with maintaining highest valuation per headcount ratio
about $48million per worker. The size of the Snapchat is 25.8MB. Along with this, the company
is also involved in developing and manufacturing the spectacles adding features of camera lens.
By using Snapcodes, friends have been able to add via their usernames and photo contracts. In
this way, Snap Inc. has been able to be good and strong player in the market2.
1 Benyi, Heider, Simões Sofia Carla, and Gram Caroline, (2017). "Snapchat as an innovative
service."
2 Jonatan, Storesund. (2019)"Competitive Marketing advantage by Co-Creation of Value on
Snapchat: Part 2 How should Marketers adapt?."
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Management and organizations
2. Organizational structure of the company
The organizational structure of the firm is strong and unique to attract and retain the customers
across the world. The vertical organizational structure is followed by the company for proper
flow of information from the top to bottom. All the decisions are taken by the top management
after considering the views and opinion of middle and lower management. Top management
divides the policies to run the business activities successfully. They guide and communicate with
middle level management to maximize the profitability of the firm. In addition, they guide and
assist the workers of how to conduct business operations in a hassle free manner. Evan Speigel is
CEO and Co-founder of Snap Inc and Bobby Murphy is co-founder and chief technology officer.
Furthermore, Imran khan is chief strategy officer and Mary Ritti takes care of communication
activities in the competitive market3. By using Snapcodes, friends have been able to add via their
usernames and photo contracts. The organizational structure of the firm is detailed below.
3 Bibian, Ogbuji., and Papazafeiropoulou Anastasia (2016) "Social Media Strategies for
Companies: A Comprehensive Framework." Conference on e-Business, e-Services and e-Society.
Springer, Cham.
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Management and organizations
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Management and organizations
Task 2
1. Modern management approach
Management is the process of dealing with or controlling things or people in the organization.
Along with this, modern management theory refers to the emphasizing and enhancing the use of
systematic mathematical techniques in the system by evaluating and knowing the
interrelationship of management and employees in all aspect4. There are various theories are
initiated by the company including systems approach, situational approach, team building
approach and Chaos theory. One of the significant theories of the modern management is system
approach. System theory is based on the generalization that everything is inter-dependent and
interrelated5. The benefits and drawbacks of system theory are discussed below.
Benefits
 The system approach guides and assist in studying the functions and operations of
complex organizations. Furthermore, it also helps in planning, organizing, controlling and
directing.
 It is very close to reality therefore the approach has an edge over the other approaches.
 This approach also helps in gaining competitive advantages.
Drawbacks
 The approach does not provide technique and tool for mangers.
 It cannot be applicable to complex and large organization easily.
 If organizational change is occurred in the company then it will react quite slowly.
 It is not good for the service industry6.
4 Peter, Drucker, 2012. The practice of management. Routledge.
6
Evan Spiegel
(Co-founder & Chief executive office)
Bobby Murphy
(Co-founder &Chief technology officer)
Imran khan
(Chief strategy officer)
Drew Vollero
(Head of finance)
Luke Kallis
(Head of West Coast Sales)
Mary Ritti
(VP communications)
Sean Countain
(Deputy chief compliance officer)
Luke Kallis
(Head of west coast sales)
Abenezer Mamo(product manager)

Management and organizations
2.Johnson & Scholes cultural web
By explaining the distinctive rituals, symbols, power, stories, control systems and organizational
structures, the firm can maintain favorable working environment at the workplace. Johnson and
Scholes explained a cultural web, analyzing a number of factors that can be used and initiated to
describe and affect the organizational culture7. The three elements of Johnson and Scholes
cultural web have been stated below.
Snap Inc. focuses on rituals and routines. Rituals and routines are significant activities whereas
routine is performed by the firm without conscious thinking. It indicates what is estimated to
happen after the firm has decided its paradigm and what is evaluated by the management. Story
is the second element of cultural web as it shall be noted that the history of the company is
unique. Next it focuses on the paradigm that includes the mission, goals, objectives and vision of
the firm. It will also help in improving the performance and productivity of the firm. At the end,
it proves a picture about the image of the firm and what people are talking about its app and how
the firm is conducting its activities worldwide. All these Johnson & Scholes cultural web
elements help in maximizing the profitability of Snap Inc.
5 Nicolai J., Foss and Klein.G. Peter. 2012. Organizing entrepreneurial judgment: A new
approach to the firm. Cambridge University Press.
6 Eugene, F. Yates, 2012. Self-organizing systems: The emergence of order. Springer Science &
Business Media.
7 Karen . Cacciattolo, 2014. Understanding organisational cultures. European Scientific Journal,
ESJ, 10(10).
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Management and organizations
Rituals and routines
Paradigm
Story
Task 3
Two strategic management objectives of Snap Inc.
Strategy and strategic management
Strategy is a plan of action which is designed to attain long term goals and objectives. It helps in
making good decisions within the organization. On the other hand, strategic management is the
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Management and organizations
integration and implementation of the primary goals and actions taken by the company’s top
management and managers on behalf of the company after taking consideration of resources and
assessment in which the firm competes8. It provides overall direction and assistance to the
enterprise for attaining desired mission and vision of the firm. Also, it helps in creating a better
future in the marketplace. With the help of strategic management, it can be possible to increase
and maximize the market share and profitability in the global market. In addition, it also provides
financial and non-financial benefits to the employees. The main characteristics of this
management are that it has the capacity to handle and resolve the issues related to skills and
potential of the workers.
Role of managers in decisions making
Managers play a vital role to make unique and dynamic decisions within the organization. They
make rules, policies and strategies to carry out the business activities and operations
successfully9. Apart from this, managers and leaders provide guidance and assistance to
employees for doing work in a hassle free manner. Also, they improve and enhance the skills,
potentials and experienced of the workforce. Favorable working environment is maintained by
the managers at the workplace to boost employee confidence and morale10.
Objectives
The main objective of the company is make a good position and image in the minds of the
customers. The objectives of the firm are divided into three categories including operational,
8 Michael A., R. Hitt, Ireland Duane, and Hoskisson, E. Robert. 2012. Strategic management
cases: competitiveness and globalization. Cengage Learning.
9Lee G., Bolman, and Deal.E. Terrence. Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.
10 Robert C.Ford., and Richardson.D.Woodrow . 2013. Ethical decision making: A review of the
empirical literature. In Citation classics from the Journal of Business Ethics (pp. 19-44).
Springer, Dordrecht.
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Management and organizations
tactical and strategic objectives11. The two innovative objectives of Snap Inc. are discussed
below.
Customer objective
The customer objective of the firm is to create best value in the minds of the consumers by
providing effective and unique services. By providing good quality of the products and services,
the organization wants to beat the competitors globally. To attain customer objectives, Snap Inc.
focuses on the needs, requirements and wants of the customers.
Financial objectives
The financial objective of the firm is to increase and grow the shareholder value in the
marketplace. Along with this, it also wants to increase and enhance the profitability with
determining stability. It shall be noted that Snap Inc. wants to reduce and avert its management
cost in order to maintain suitable financial leverage.
Strategic framework
Various strategic frameworks are initiated by the company including SWOT analysis, porter five
forces analysis and Pestle analysis12. These frameworks help in analyzing and evaluating the
plans and policies of the rivalries. SWOT analysis has been discussed below.
Strengths
 Snap Inc. provides unique software and base to the customers.
 Along with this, higher customer engagement is one of the significant strengths of the
company.
11Joe, Phua, Venus Jin Seunga, and Jay Kim Jihoon. Gratifications of using Facebook, Twitter,
Instagram, or Snapchat to follow brands: The moderating effect of social comparison, trust, tie
strength, and network homophily on brand identification, brand engagement, brand commitment,
and membership intention. Telematics and Informatics, 34(1), pp.412-424.
12 Mateja, Kocbek, Jošt Gregor, and Polančič Gregor. 2015, August. Introduction to social
business process management. In International Conference on Knowledge Management in
Organizations (pp. 425-437). Springer, Cham.
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Management and organizations
Weaknesses
 Undervalued stocks and it declines daily active users.
 It dependence on advertisement for revenue and returns.
 High competition
Opportunities
 Raising usage of Smartphone’s
 Improved scalability and growing demand for privacy.
Threats
 Immense competition
 Restrictions and technological advancements
 Dependence on IT infrastructure
Conclusion
On the above discussion, it can be analyzed that strategic management plays a vital role in each
and every company for attaining the goals and objectives. It is also necessary to compete with
competitors in the market. Here is the discussion about the Snap Inc. that is American
technology and social media company. The company maintains effective organizational structure
and dynamic modern management approach is used by the company. By using effective strategic
management, the firm has been able to achieve its customer’s objectives and financial objectives
as well. In addition, SWOT analysis is done by the organization to survive in the competitive
market.
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Management and organizations
References
Storesund, Jonatan. "Competitive Marketing advantage by Co-Creation of Value on Snapchat:
Part 2 How should Marketers adapt?." (2016).
Heider, B., Carla.S.S., and Caroline G. "Snapchat as an innovative service." (2017).
Ogbuji, B and Anastasia P. "Social Media Strategies for Companies: A Comprehensive
Framework." Conference on e-Business, e-Services and e-Society. Springer, Cham, 2016.
Drucker, P. The practice of management. Routledge, (2012).
Foss, N. J., and Peter G. K. Organizing entrepreneurial judgment: A new approach to the firm.
Cambridge University Press,( 2012).
Yates, F. E, ed. Self-organizing systems: The emergence of order. Springer Science & Business
Media, (2012).
Cacciattolo, Karen. "Understanding organisational cultures." European Scientific Journal, ESJ
10.10 (2014).
Hitt, M.A., R. Duane I, and Robert E. H. Strategic management cases: competitiveness and
globalization. Cengage Learning, (2012).
Phua, J, Seunga V. J, and Jihoon J. K. "Gratifications of using Facebook, Twitter, Instagram, or
Snapchat to follow brands: The moderating effect of social comparison, trust, tie strength, and
network homophily on brand identification, brand engagement, brand commitment, and
membership intention." Telematics and Informatics 34.1 (2017): 412-424.
Ford, R.C., and Woodrow D. "Ethical decision making: A review of the empirical literature."
Citation classics from the Journal of Business Ethics. Springer, Dordrecht, 2013. 19-44.
Bolman, L.G., and Terrence E. D. Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons, 2017.
Kocbek, Gregor J, and Gregor P. "Introduction to social business process management."
International Conference on Knowledge Management in Organizations. Springer, Cham, 2015.
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