Describe about the Blackberry Profile and Impact of challenges on Blackberry?
Kvalnes (2014) describes management as a place that sets organizational setting according to certain prescribed rules, policies and procedures. Management means implementation of strategies for better productivity along with services. Contingency theory is preferred by many organizations. Management deals with organizing all the factors like human resource, capital, financial, accounts, stability, flexibility, strategic drift and many others (Small Business – Chron.com, 2015). According to system theory managers must understand the different system according to which the worker works. Organizational management must ensure certain practices to satisfy its employees to be productive by improving the workplace and personal behavior. In this essay management process of Blackberry will be delivered. This will include about the company, its present condition, Competing value framework, challenges, and recommendations.
Blackberry Limited, commonly known as Blackberry was founded on 24th February 2003 (BlackBerry.com, 2015). It is the provider of mobile communications. Primarily the company deals with the production of Smartphone and software services with is very own platform Blackberry OS. The company deals with four business areas. They are Business devices, Enterprise services, BTS business and messaging. Mainly the company focuses in delivering Smartphone devices. BTS business of the organization deals with five units, they are, QNX Software system limited, Paratek, Certicom, and Blackberry Internet of things (IoT) Platform as well as Intellectual Property and Patent Licensing (IPPL). The messaging system with which the company is dealing with is widely known as Blackberry Messenger.
Blackberry has developed its size within years by the QNX. This provides the software related assistance in developing its operating system. Automotive electronics, infotainment, and telemetric services have evolved to a great extent that consists of more than 50 million vehicles all over the world. The messaging service of Blackberry known as Blackberry Messenger has proved to be the widely accepted trusted online messaging service globally. Last year it opened its messenger platform to non-Blackberry too due to its demand.
With the progress of time, it is seen that though Blackberry has a lot of services, still it is not able to grow further. Its revenue is constantly decreasing with respect to every quarter. In consideration to the financial year 2014, its quarterly revenue has declined from 3071 to 976 (June 2013- march 2014) (Financials.morningstar.com, 2015). Due to this Blackberry introduced its very own Blackberry 10 OS, but still the results could not tally with the expectations. In several nations like India, with the growth of Android devices, Blackberry finds its place in nowhere. The quarterly revenue has declined to 660.00 in financial year 2015, February (In.reuters.com, 2015). Appendix A shows the Revenue and earnings per share. Appendix B shows consensus analysis and Appendix C shows the financials and key ratios of Blackberry.
The present condition of Blackberry applies certain strategic drift for its sustainability. It can be best understood by SWOT analysis.
Strengths- according to intangible asset value, both security and software related parts are much strong. It has a trusted system of encryption. The software part is much accepted by federal sectors and corporate sectors (prezi.com, 2015). This has resulted in more potential growth with the intangible asset that is unique enough. BES service is efficient enough. Moreover, it has customer loyalty and increased investor interest. Also, Blackberry is debt free. Appendix D shows the security system.
Weakness- several factors like the OS that is Java based is outdated. The designs are quite unattractive. It lacks in major native software (Austen, 2013). The apps are controlled strictly. These factors have resulted in a weak commercial market and dissatisfaction in casual customers. It failed to supply a good marketable phone.
Opportunity- The expectation of Table market is been found to have a growth of 50% from 2011 to 2015. The estimated growth of Blackberry is worth to $100 billion by the end of 2015. With product diversification, its market share can be increased with larger capture (Black, 2013).
Threats- it has a rising competition threats from Apple and Samsung moistly. It is found that Pentagon is opening network for Apple and Samsung device by 2015 (Editorial Search: Group & Organization Management, 2013). Even media has a very bad influence on customers’’ mind to have Fairfax deal and bad reputation from public.
Competing value framework for the development of culture was developed by Quinn and Rohrbaugh for the analysis of Campbell’s effectiveness list of dimensions. CVF gives the best analysis of management for an organization. CVF has a justified implication for management for the following reasons.
Cultural dimensions consist of Horizontal and vertical analysis.
Horizontal dimensions deal with inward and outward attention that the company needs to think about. Outward factors deal with customers, suppliers, and distributors. Internal factors deals with the primary elements like stakeholders and competitive environment and challenges it has to face with progress (Changingminds.org, 2015).
Vertical dimension deals with stability and flexibility. The Vertical axis is determined with taking decisions. The lower end is in control with the management part while the upper-end deals with expert employees, who have an empowerment in developing themselves (Schmitt and Jones, 2013). Stability only comes into force when the organization changes its strategies for enduring effective paramount when environmental forces change constantly.
Competing values mapping is delivered in Appendix E. the four hierarchies are the hierarchy, market, clan and adhocracy.
Hierarchy- this deals with Max Weber bureaucratic chain of management. Hierarchy delegates all the tasks in accordance to experts in respect to the position and power of existing employees. These hierarchical factors have certain policies, procedures and processes. The leaders of hierarchy coordinate and eventually organize to keep track on what is happening (Sharpe, 2013).
Market- this factor deals with the outlook for further extension of business. Transaction cost is maintained thoroughly. The Market organization keeps a track on marketing. Related factors like transactions, market terms like internal and external policies are also maintained. It is considered for an effective organization value lies between stakeholders and people with very less cost and delay.
Clan- Clan deals mostly with the flexibility of an organization. Flexibility can be restored of employees are driven through shared goals, vision as well as outputs and outcomes rather than strict rules.
Adhocracy- for rapidly changing business climate higher flexibility is needed that is more than independence. The Success of the company can be achieved great speed in adaptability for facing new challenges. Organizations need to use prototypes rather than using long projects.
OCAI deals with six categories that distribute several points between Clan, market, adhocracy and hierarchy which are delivered in Appendix F.
From about management procedures have been found out that Blackberry needs to implement for a better positive outcome. For sustainability clan, adhocracy and hierarchy for managing the internal and external factors are very much needed for Blackberry.
The Mobile industry is growing with the fastest speed globally. But with the expansion of such technology, small and medium scale industries are facing competitive issues that results to both positive and negative issues related to sustainability. The most important issues that figures out the challenges for mobile industry are-
Data traffic- with the increase in smart phones and portable electronic devices more amount of data is shared via server. Thus, this results in traffic overload.
Security- mobile industries need to develop static securities to maintain the security of the information of varying customers.
Competition- the most effective challenge for the mobile industry is competition. This has both positive and negative outcomes. Positive factors relate to innovation and product diversification (Bodie, 2014). Unique features are included with the low cost for sustainability that is hampering the quality of smart phones. Low cost satisfies certain customers, but quality factor dissatisfies other customers (Sharpe, 2013). Certain negative factors like the sustainability of organizations prove to be in critical condition as they may not change strategies with the diversified demand growth.
Blackberry used to be one of the leaders of mobile industry. But now with the introduction of Android, windows and iOS, sustainability of Blackberry has been a critical situation. Samsung, Sony, Microsoft, and Xiao Mi is the leading producer of smart phones at present. According to (), the leading challenger of Blackberry is Apple with is I phone.
Apple has developed its market to introduce the most demanded online music library Itunes, which had the most positive outcome. It also has started marketing of I Watch in 2015. Such strategies are though competitive but still it has a negative outcome for Blackberry. This is because Blackberry is not able to earn revenues from the past quarters to implement new strategies.
Blackberry uses its very own platform known as Blackberry Os. But this operation system is restricted to only smart phones. It also lacks features and intuitive graphic user interface in comparison to Apple. IOS of Apple has integration with all its devices that covers all the portable electronics devices globally which provides a complete package. Customers find more profit in using Apple products as all the gadgets are unified with cloud servers.
Cloud server of Blackberry of is not so much intuitive. This is because it is not able to change strategies to synchronize with new cloud computing as it lacks in proper experts. Prospective managers like to work with Apple as they get more benefits there (Humphries, 2014). This has made survival criticality for Blackberry. Its revenue has turned down that is preventing it from taking new strategies. Investors are found to be investing in Apple as they substantially get better dividends.
Blackberry mostly relies on its BBM. This messenger has been demanded globally. Due to this the company has introduced BBM for non-Blackberry devices. But still it lacks in competition to Apple as Whatsapp, Line and WeChat has more features with better UI than BBM. Customers are thus persuaded to buy Android devices that have open source code and so moderators can modify apps according to their devices.
In according to CVF, Blackberry needs to develop its human relations so that investors can invest further. It must properly deal with clan, adhocracy, hierarchy and market.
In consideration to hierarchical management, internal dominant factors, Blackberry needs to develop personal and family-like atmosphere. This creates satisfaction and motivation of human resource. It needs to control its internal structure. Stake holder’s issues are to be quantified and resulting issues are to be taken care of. Risk taking adversities must be adopted as it is in such a condition of now or never.
Leadership styles for motivating, mentoring and nurturing the entrepreneurial activities needs to be facilitated for innovating new strategies (Kvalnes, 2014). Total cooperation of employees relating to freedom, uniqueness and comfort ability has to be implemented.
Employee management must be ensured involving job security, participation, teamwork, and loyalty. Team sentiments must not be hurt so that productivity and innovation increases.
Success criteria need to be achieved through outpacing competition. Unique diversified services related to economies of scale have to be identified that is efficient as well as low cost. The Market place has to be met enduring increase in market share. Proper hierarchical strategies need to be maintained.
Blackberry needs to achieve flexibility in accordance to exchanges of value. Suppliers and external environment are to be kept in concern. It critically arises, it may need to adopt Android platform for product specification. Nokia had also adopted such strategy in introducing Nokia X Smartphone but still it lacked a proper user interface. Blackberry needs to understand these outcomes to implement better strategies.
In order to take advantage of the opportunities offered by developments in technological dimensions it is recommended that the organization examine the benefits of both the Human Relations model and the Open Systems model in order to develop cooperation of both the stakeholders and shareholders (Szymczak, 2013).
As explained in the Introduction, management theory provides us with a means of deliberate artifacts to ensure regulatory measures in taking unique strategies with the total cooperation of team members along with managers and senior executives. For better management, Competing Values Framework has to be kept in mind for any organization to sustain in the competition by granting the challenges positively to develop strategic opportunities. For Blackberry, it needs to make well communication with shareholders as financial issues are the most critical for it. Investors must be attracted with new policies so that they can achieve better dividend.
Changingminds.org, (2015). The Competing Values Framework. [online] Available at: https://changingminds.org/explanations/culture/competing_values.htm [Accessed 27 Jul. 2015].
Financials.morningstar.com, (2015). Growth, Profitability, and Financial Ratios for BlackBerry Ltd (BBRY) from Morningstar.com. [online] Available at: https://financials.morningstar.com/ratios/r.html?t=BBRY [Accessed 27 Jul. 2015].
In.reuters.com, (2015). Stock Quote News – Stock Market Quotes, Online Stock Quotes, India. [online] Available at: https://in.reuters.com/finance/stocks/financialHighlights?symbol=BB.TO [Accessed 27 Jul. 2015].
prezi.com, (2015). BlackBerry Ltd S.W.O.T. [online] Available at: https://prezi.com/zrr19jcgsjch/blackberry-ltd-swot/ [Accessed 27 Jul. 2015].
Small Business – Chron.com, (2015). Management Theories & Concepts at the Workplace. [online] Available at: https://smallbusiness.chron.com/management-theories-concepts-workplace-17693.html [Accessed 27 Jul. 2015].
Austen, A. (2013). Competition in interorganizational networks. public management perspective. Organization and Management, 2013(5 (158).
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Sharpe, M. (2013). The Sorrows of Native Americans. Challenge, 56(4), pp.98-104.
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