MORG4038 - Management & Organizations: Snap Inc. Global Report

This report provides an in-depth analysis of Snap Inc., focusing on its organizational structure, market value, and strategic objectives. It examines the company's products like Snapchat, Bitmojis, and Spectacles, along with its financial performance and organizational practices. The report uses the system approach to evaluate management decisions and includes a cultural web analysis, SWOT analysis, and Ansoff Matrix to assess Snap Inc.'s strengths, weaknesses, opportunities, and threats. It concludes that Snap Inc. is performing well globally, driven by innovative products and a skilled workforce, while also addressing challenges in a dynamic market environment. The analysis highlights the company's strategic approaches to market penetration, development, and product development, providing a comprehensive overview of Snap Inc.'s operational and strategic landscape.

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Management and Organizations in a Global Environment
Report
4/23/2018
Student Name

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Contents
Introduction................................................................................................................................1
Task 1.........................................................................................................................................1
Task 2.........................................................................................................................................2
Cultural Web..........................................................................................................................3
Symbol................................................................................................................................3
Control Systems..................................................................................................................3
Ritual and Routines.............................................................................................................3
Task 3.........................................................................................................................................4
SWOT analysis.......................................................................................................................4
Ansoff Matrix.........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Introduction
The report highlights facts about the company Snap Inc. The report discusses the matter
related to the structure of the organization, its market value, scope and scale of its business
operations. The elements used in the organization have been discussed here in the report. The
modern approach used by the management in the company. Also the innovative strategic
objectives of management are discussed in the report (Seidl, 2016).
Task 1
Snap Inc. is an American based technology and social media company, founded on
September16, 2011. Company is providing the four products Snapchat, Bitmojis, Spectacles
and Zenly. Snapchat is the fastest way to share the photos and videos to your loved ones.
Basically snapchat is the multimedia messaging app gets popularity in North America and
Europe. Evan Spiegel, Bobby Murphy, and Reggie Brown are the founder of Snapchat.
Developer of Snapchat is a public company; called Snap Inc. Snap Inc. is claims to be the
best camera company. Snapchat is available in 22 languages and developed by Snap Inc.
Snapchat is working on Android (65.3 MB) and iOS (243.9MB). Snapchat updates every
couple of weeks along with that add new features or change the core functions of app. The
market value of snapchat assumes to be around $250 billion when values at IPO (Initial
Public Offer). The day’s range of Snap Inc. Company market value is lies between $14.94
and $15.42. The company’s 52 weeks range lies from $11.28-$23.57 (Financial Times,
2018). It can be seen that the earning per share of the company is showing the highest trend.
The market price shows the increasing g trends in the market (Aykin, 2016).
Particulars (in $'s)
Years 2014 2015 2016 2017 2018

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Market price 13.69 14.3
14.8
2 14.57 14.88
(Wall Street Journal, 2018)
Organisational Structure of Snap Inc.
Snap Inc. began about six years ago; its organizational structure has played an important role
in the functioning and expansion of the company. The company is run by the two founders,
along with 5 executive officers and 1859 employees. In the organisation, there is a use of
decentralisation in the organisation. The executive officers have the right to appoint the new
staff and every employee of the company given the same rights and decision making power.
Each aspect of company’s operations ranging from its product development to its financial
decision and legal obligations/acquisitions/mergers, are organized by the middle level staff.
The company clearly shows the leader oriented structure with their public venture. Their
organizational practice shows that they require highly skilled employees so that the
immediate decision can be taken by the company without delaying the external opportunities.
The approach opted by the company is unique and also require a high level of investment in
hiring the skilled and trained employees. The possible growth and opportunity company is
gaining and experiencing from the market is because of their executives and employees and
their organizational structure.
Task 2
The managers in the Snap Inc. can use the system approach in its organization. Managers
have to make decisions on a daily basis as they are operating the dynamic business
environment. The system approach is suitable for the organization which is working in the
dynamic environment and has to deal with new challenges on regular basis. From system
approach, the organization is viewed as an open system, which is a combination of interaction

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and interdependent. Business does not operate in a vacuum; it receives information, material,
and energy from another system as inputs. This approach focuses on both the individual goals
as well as the overall goals of the organization (Matthies and Parvin, 2018).
The drawback of this system approach is that it may not be practical sometimes in the
business and leads to delay in the decision-making process which Snap Inc. cannot afford.
Another drawback of this approach is that there will be a classification of the interrelationship
among the departments otherwise it becomes the Counterproductive.
Cultural Web
Source: (By Author)

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Symbol
A logo is a type of a symbol used to help and support public acknowledgment. Snap Inc.
consist a logo of yellow color which looks unusual and attractive. It is the type of a plain
color yellow picture that contains the name of the company. It does not have any other
picture on it. It is enough for highlighting that this very well could be the secret sauce Snap
Inc. is going to cooking with (Rogers and Marres, 2016).
Control Systems
The control system of the company over its employees and stakeholders is very effective.
Public stakeholders are not having voting rights while faking managerial decisions. It means
that the management has full control over its decisions. The company pays monthly and
quarterly performance-based incentives to the employees to encourage them. It creates a
sense of taking care of the employees in financial terms.
Ritual and Routines
Snap Inc. follows the routine of kindness and smartness. Here kind means the type of
kindness that requires you to let somebody know that they have something caught in their
teeth though it's a little uncooperative. The company cares deeply about kindness because it
wants to generate a space that facilitates to provide their team the courage to create. The
Company believes that team feels relaxed innovating new effects because employees are
bordered by the kindness of their nobles and should know that they have support (Business
Insider, 2018).

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Task 3
SWOT analysis
Strength
As Snap Inc. is the leader in its industry and has strength. These strengths not only help the
firm to remain competitive in the market but also help in penetrating new markets also. Snap
Inc. has skilled workforce and company is paying the handsome amount in training and
development of employees.
Weakness
Weakness is the area where the company can improve itself and can build its competitive
advantage. Snap Inc. has not been able to tackle the challenges given by the new entrants and
lose some share in the market. Another weak point of the company is the attrition rate of the
employees. As the company is spending a high amount on them so its big loss to accompany.
Opportunities
New trends adopted by the consumer give more opportunity to the company to explore more
and come up with the new ideas and designs. From these new ideas and trends, the company
can make up high returns and introduce into new product categories in the market. The new
technology provides an opportunity to Snap Inc. to practices differentiate pricing strategies in
the new market. This will make the loyal customer of company which are taking the services
(Linkd In, 2018). New customers are also generated by the company through other value-
oriented propositions.
Threats

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Snap Inc. is operating in a number of countries, so it is exposed to the risk of currency
fluctuations especially when there is a change in the political environment. The company has
to face a shortage of skilled workforce when establishing a business in another country. There
is changing consumer behavior towards the trends so the company has to make new
innovation in their product everytime to survive in the market.
Ansoff Matrix
The usefulness of Ansoff matrix depends on the quality and accuracy of the market
intelligence. These are classified into the four categories which are as follows:
Market Penetration
Market penetration can be defined as the strategy in which the company is trying to focus on
selling the existing products or service in the existing market only. Snap Inc. Company
achieves its growth in that existing market. In this type of strategy, the company has to face
less amount of risk as compared to another strategy (McDonald, 2016).
Market Development
Market development is developing the market by entering the new market or market segment.
The existing product and service will be introduced in the new market. Snap Inc. is also doing
the same. The company is entering the other market like Indian Market and introducing its
old app that is snapchat. In developing the new market, the company has to bear the moderate
risk in the expansion of its business.
Product Development
Product development can be defined as the developing the new product in the existing
market. Snap Inc. is introducing new apps such as Bitmojis, snapchat, and others in the

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American market first. This strategy is adopted by the company to cover the large share in the
existing market and become the kingpin the market. Snap Inc. has used the same strategy in
the American market by introducing the Snapchat and bitmojis in the market and influence
the customer to use it because of the uniqueness of the app (Snap Inc, 2018).
Diversification
In the strategy of diversification, the company focuses on developing the new product in the
new market. In this type of strategy, there exists a high risk. So Snap Inc. will not use the
diversification strategy in its operations (Mind Tools, 2018).
Conclusion
From the above discussion, we can conclude that the Snap Inc. is working well globally in the
market. The company is introducing new and innovative products covering the maximum
countries, which influence the customers to use it. The company is come up with new
technology and development plans which lead to getting the earnings. From the analysis done
above, it is visible that the company is earning high amount of profits and its market value is
also showing the increasing trends. High returns are the hard work of the management of the

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company which is trying to develop a skilled workforce by giving training to them. The
company has many opportunities and threats in the external market, from which they are
dealing by introducing the innovative products and designs.

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References
Aykin, N. (2016) Usability and internationalization of information technology. Florida: CRC
Press.
Business Insider. (2018) Secrecy, Control and Kindness: What the Snapchat IPO tells about
its corporate culture. [online]. Available on: https://www.businessinsider.in/secrecy-control-
and-kindness-what-the-snapchat-ipo-tells-us-about-its-corporate-culture/articleshow/
56957293.cms[Accessed on 23rd April 2018]
Finnacial Times. (2018) Snap Inc. [online]. Available on:
https://markets.ft.com/data/equities/tearsheet/profile?s=SNAP:NYQ [Accessed on 23rd April
2018]
Kasemsap, K. (2018) Enterprise Information System and Digital Marketing: Advanced Issues
and Implications. In E-Manufacturing and E-Service Strategies in Contemporary
Organizations (pp. 53-71).
Linkd In. (2018) A SWOT analysis of Snap, Inc. [online]. Available on:
https://www.linkedin.com/pulse/swot-analysis-snap-inc-chris-travers [Accessed on 23rd April
2018]
Matthies, N. and Parvin, S. (2018) An Evaluation of Snap Inc. and its Recent Decision to Go
Public. Journal of Student Research. [online]. Available on:
https://www.umflint.edu/sites/default/files/groups/Research_and_Sponsored_Programs/
SRC/2017/n.matthies-s.parvin.pdf[Accessed on 23rd April 2018]
McDonald, MALCOM. (2016) Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Oxon: Routledge.

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Mind Tools. (2018) Ansoff Matrix. [online]. Available on:
https://www.mindtools.com/pages/article/newTMC_90.html[Accessed 23rd April 2018]
Rogers, R. and Marres, N. (2016) Landscaping climate change: A mapping technique for
understanding science and technology debates on the World Wide Web. Public
Understanding of Science vol. 9, pp. 1-23.
Seidl, D. (2016) Organisational identity and self-transformation: An autopoietic perspective.
Oxon: Routledge.
Snap Inc. (2018) A whole new story. [online]. Available on:
https://www.snap.com/en-US/news/page/2/[Accessed on 23rd April 2018]
Wall Street Journal. (2018)Snap Inc. [online]. Available on:
https://quotes.wsj.com/SNAP/financials [Accessed on 23rd April 2018]
Yahoo finance. (2018) Snap Inc. [online]. Available on:
https://finance.yahoo.com/quote/SNAP/ [Accessed on 23rd April 2018]