Snap Inc Stakeholder view of the organizational model
The stakeholder analysis is one of the most essential analyses that should be done by any corporate organization. The stakeholders are the foundation of any organization. The organization stands with the support from the stakeholders. Snap chat is one of the multimedia messaging apps created by the students of Stanford University. Later it is established as Snap Inc with global users. The company has a significant amount of stakeholders around the globe. The company has to maintain these stakeholders for their future growth. The study is going to be performed to analyze the different perspective of the stakeholders (Recode, 2017). The main aims of the analysis are to find out the strategies that should be taken to satisfy the stakeholders for the holistic development of the organization. Mainly four stakeholders will be identified and their views on the organizational model will be seen and then generic program according to stakeholder’s category will be done.
Stakeholders are generally a group of persons who have a stake in the business organization’s success and failure. Generally, stakeholders do not have the limitation within the organization. Instead, it has widespread aspects linking the performance of the organization. The organizational performances are interlinked with the employee’s interests and it has both the positive and negative impact on the activities of the organization. Thus, the stakeholders can be distinguished into two different groups; internal stakeholder and external stakeholder. Snap Inc has both internal and external stakeholders (Ananthan, Appannaiah, and Reddy, 2010). As per the organizational structure of Snap Inc, the internal stakeholders of Snap Inc are their employees, their owners Spiegel and Bobby Murphy, their consumers, the overall community of SnapChat and the local government. As depicted earlier on the internal and external stakeholders, the internal Stakeholders of Snap Inc are their owners and the employees. On the contrary, the external stakeholders of Snap Inc are the consumers, the government, and overall Snap Inc community. Moreover, the shareholders can also be considered as the external stakeholder.
As mentioned in the theory of the stakeholders, a stakeholder of the organization includes the people affected by the deeds of the organization. It is notable that the stakeholders hold a supportive role in the continuous flow of the organizational performance. The organizational value can be easily estimated by analyzing the stakeholder’s interest. The interest of the stakeholder gives the organization and considerable and sustainable growth for the long-term healthy run. The growth of Snap Inc is very much dependent on the supportive contribution to their stakeholders. For example- as per the report of 2016, Snap Inc holds more than 5 billion class share and more than 20million class b share which clearly indicates the role of the stakeholders to the development of the organization (Schindhelm, 2012). Moreover, SnapChat has more than 158million daily active users who hold the role of the developmental process of SnapChat.
Stakeholder Behavior Analysis
The stakeholders can be categorized into three dimensions according to their role; normative dimensional stakeholder, instrumental dimensional stakeholders and descriptive dimensional stakeholder.
- The normative stakeholders generally monitor the performance of managerial and their staffs of the organization.
- Instrumental stakeholder assumes the future vision of the organization of the managers continue their process as per the present way (Smillie, 2013).
- The descriptive stakeholders describe the consequences of the present run and its impact on the wider environment. SnapChat generally satisfies the interests of their stakeholders and their advice for a profitable outcome.
The stakeholder behavior analysis is consisting of three vital points which are cooperative potential, competitive threat and the actual behavior. The cooperative potential is depicted to be found in between the CEO, manager, users and the employees of the Snap Inc. The focus on the cooperative behavior is being made which is reflecting the activities of Snap Inc. Apart from this, the competitive threat is also identified in between the four stakeholders of the Snap Inc. The competitive nature is present which is being displayed from their working activities as well as the appropriate development of the activities (Christensen and Raynor, 2011). The enhancement of the activities is depicted to be seen which is indicating the appropriate development of the characteristic features of the stakeholders of Snap Inc. It is also reflecting the actual behavior of the stakeholders present in the Snap Inc.
Stakeholders are the basic foundation for any organization. It might an individual shareholder or a large team. Stakeholders play the most important role in the growth of the organization. At present globalization is the present trend so global companies have to take care of global stakeholders which are a lot more dynamic and challenging at the same time. The stake is referred to as interest from the consumers and end user. This interest is transferred into the business process by the organization. The stakeholders can provide with various innovative ideas which are essential for the company’s growth (Phillips and Freeman, 2011).
The diversification is a process or one of the strategies taken by the organization to increase the business from a global perspective. It is important to understand the dynamics of the stakeholder and the dynamics of the global market. Diversification should be done according to the stakeholder needs. Besides that, the market is totally dependent on the demand and supply. So demand should be created by the organization. If the service given by the organization is appropriate then there will be demand for the products and service of the organization. Snap Inc provides the technical support they have diversified and done digital marketing also. The Company started with the founders providing messaging services then it diversified and created a huge amount of global stakeholders.
Owners (Evan Spiegel)
Owners or Promoters are main stakeholders of the highest priority. Basically, the owners are the shareholders who have a good amount of impact in the policy of the organization. Their action might affect the implementation plan of the Snap Inc. For example, the owners and the shareholder of the organization fall into the categories of promoters for the organization (Peng, 2017)..
Stakeholders analysis for four stakeholders
Managers
Managers or the management is another important stakeholder. The organizational development and technical development are totally handled by the managers. The majors play important role in the implementation of the action plan which is depicted by the higher authority. Excellent service is maintained by the competent managers of Snap Inc. The customer satisfaction is totally dependent on the service quality. Therefore the role of the stakeholders is interconnected. The managers play a crucial role in the implementation of the action plan and overall growth of the company (Mellahi and Frynas, 2015).
Employee
The employee is the main stakes in the grass root level. The action plans which are taken by the higher authority are implemented practically by the employees. The main development in the grass root level is done by the employees they are mainly responsible for the product and services in the practical ground level situation. Since the employees are an important stake in the Snap Inc the capacity building of the employees according to the need should be done by the organization. Training should be conducted so that the employees can develop themselves according to the market needs.
Users
Users are the stakeholders who have priority in the reform policy. Their action does not have an impact on the implementation of the policy. The users and the partners’ groups fall under this category it helps the enhancement of the business for the organization. The Snap Inc has a huge amount of users and they strictly want to maintain that stakeholder base by giving the topmost service to its customers or users (Johri, 2010).
The stake holder’s category needs to be identified properly so that strategies could be taken according to the needs. The identification of the stakeholders helps the organization to take the right decisions which is essential for the growth of Snap Inc. The company has a strategic programme which helps in developing a holistic growth of the organization (Hussey, 2012).
Owners: The main strategy that is used by the owners is a defensive technique. In Snap Inc the owners follow the market trends and act according to the situation. This defensive strategy helps the owner’s to cope up with the elections in the market. It helps the owners to update their strategy according to market needs. On the other hand, it helps to compete with the other global competitors (Frierk, 2012).
Users: The generic techniques those are used for the users are mostly related to the recent market trends of the industry. Besides that, the hold strategy should be implemented by the users. This strategy will enhance the process of interaction with the organization according to the requirement of the users. Snap Inc should develop a structure where they intend to provide service based on the demands of the market. The growth of the organization is totally linked to the demand and supply. Proactive generic strategies are needed for the end users. A significant role is played by the users in increasing the profitability of the organization.
Managers: The generic strategies that are taken on the managers by the Snap Inc are dependent on the enhancement of their efficiency. This is a mainly offensive strategy which should be taken by the managers. The offensive strategy will motivate the employees to work according to the action plan. Capacity building of the managers is needed for implementation of the action plan which is essential for the growth of the organization. Proper communication is also required among the team members for the effective output (Deresky, 2017).
Employees: Like the managers, the same strategy should be implemented on the employees. The employees should mainly adopt the swing strategy. Swing strategy will help them to adapt to the fast changing business environment. The capacity of the employees should be built so they can perform the task on the grass root level which will result in the growth of Snap Inc.
The effective implementations of the key strategic programs are the key features for the development procedure of SnapChat. The organizational growth of Snapchat largely depends on the healthy relationship between the organization and its stakeholders. Stakeholders like the owners and managers play a pivotal role in demonstrating the future strategies and effect on the decision-making process of the organization. The stakeholders have carried a significant role to shape the strategic programs for the organization. It requires an effective recommendation for the stakeholders to implement the strategic programs successfully (David and David, 2016).
Recommendation for owners
The strategy making process of the organization strongly depends on the appropriate support of the owner of the organization. The strategies must align with the organizational run process of Snap Chat. For the short-term process, it requires quick dynamic strategy. On the contrary, to achieve long-term, goal, it requires a defensive strategy keeping sustainability with the present marketing trends. Before the strategic application, the owners must ensure the existing strengths, weakness, and threats of the organization. Based on the analysis of the threatening factors the opportunities for future strategies can be developed.
Recommendation for the managers
Managers have the key responsibilities to continue all the organizational process in a smooth way. Moreover, they also play a crucial role in shaping the decision-making process. The managers must convince each employee of their role in the organization. To achieve this, they must maintain a healthy communication with the employees. They need to be open to ideas and must enforce teamwork environment for the better organizational process (David, 2013).
Recommendations for employees
The employees are the backbone of the organization. The employees should make sure that they are maintaining all the organizational policies and regulations. Moreover, must take an active role to implement the strategies taken by the owners and the managers. The employees should be open up to their ideas and apply the level best skill to develop the organizational plans. The employees must meet the entire task successfully that is assigned to them and must carry a healthy relationship with the colleagues and support the team environment of the organization.
Recommendations for consumers
The organizational strategy must align the consumers’ requirement. There must be a healthy relationship between the organization and the consumers. Effective communication skill would be an added advantage for both the organization and user perspective. Moreover, the organization must attain all the feedback from the consumers. They should take an effective step as soon as possible to resolve the issues of the consumers (Cattani, 2011).
Conclusion
The entire study has focused on various roles and responsibilities of the stakeholders. It is identified that the stakeholders have a strong impact on developing organizational policies and organizational strategies. Moreover, they take an active part in implementing the organizational strategies. Without the active concern of the stakeholders, it is impossible to sustain in the competitive market. In addition, the stakeholders’ involvements smooth the organizational operations (Appannaiah and Reddy, 2010). Hence, the ultimate concern of the organization and its management is to satisfy the basic requirements of the stakeholders for a profitable outcome.
References
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Appannaiah, P. and Reddy, D. (2010). Business Management. Himalaya Publishing House.
Cattani, G. (2011). Project-based organizing and strategic management. Bingley, U.K.: Emerald Group Pub.
Christensen, C. and Raynor, M. (2011). Disruptive Innovation. New York: Perseus Book LLC (Ingram).
David, F. (2013). Strategic Management. Old Tappan: Pearson Education UK.
David, F. and David, F. (2016). Strategic Management. Pearson Education UK.
Deresky, H. (2017). International management. Harlow, Essex: Pearson.
Frierk, T. (2012). Disruptive Innovation. Mu?nchen: GRIN Verlag GmbH.
Hussey, D. (2012). Strategic Management. Hoboken: Taylor & Francis.
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Peng, M. (2017). Global business. Australia: Cengage Learning.
Phillips, R. and Freeman, R. (2011). Stakeholders. Cheltenham U.K.: Edward Elgar Publishing Ltd.
Recode (2017). Snapchat’s three-part business model with CEO Evan Spiegel (2015 Code Conference, Day 1). [online] YouTube. Available at: https://www.youtube.com/watch?v=AqPHordzhdw [Accessed 27 Aug. 2018].
Schindhelm, R. (2012). Cooperative systems Stakeholder analysis. Bremerhaven: Wirtschaftsverlag N.W. Verlag fu?r neue Wissenschaft.
Smillie, I. (2013). Stakeholders. Taylor and Francis
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