Contemporary Management Issues: Facebook - Essay Example

? Contemporary management issues Due Key Words: Facebook, Instagram, Contemporary management issues, Management, Strategies, Decisions, Corporation, Company, Marketing, Competitive Advantage, Going Concern Concept, Service, Introduction The contemporary world due to the urge of applying cost effective and proper managerial strategies has resulted to varied intriguing issues evidenced with global corporations. Officials concerned with activities of different institutions always seek to maximize on their managerial trends, profits as well as allow for positive business feedback (Adler & Shper, 2010, pp.285). Facebook and Instagram are two corporations that have engaged in a skimming relationship whereby the former has resulted to extravagant spending with the intention of neutralizing competition from the latter. Facebook as a company wants to acquire ways of improving its managerial functions. This has prompted it to acquire the services of Instagram for a one billion dollar deal, which based on the latter’s revenue is literally too high. Instagramis one of the competitors in business in terms of photo shopping and uploads. It offers a range of advertisements in photo and pictorial applications especially in social networking, hence attracting large pool of global fans especially youths. The intent of Facebook to purchase its competitor’s services is a central way in which the company would gain efficient managerial grounds besides dominating the market. This paper will focus on the contemporary management issues arising from the contractual concurrence amid Facebook Corporation and Instegram. The contemporary management issues concerning the situation between Facebook and Instegram One of the outstanding business practices in the world today is competitive advantage strategy. This is the fundamental way of winning the trust of a customer besides large pool of global fans especially in social networking. Managerial departments of companies in the present world regard quality management as one of the primary issues of gaining competitive advantage in the market (Mabry, 2012, pp.66). Under this, the management regards meeting customers’ needs as the essential way of gaining efficient managerial practices and competitive advantage. For example, the scenario that prompted Facebook to engage in the one billion-dollar deal was due to Instegram’s better photo applications. During that period, most of the photo users preferred using services of Instagram rather than Facebook, hence bringing in competition whereby the latter can only neutralize via purchasing it all together. Since, this will grant it adequate and strong base to dominate the market besides enhancing its applications. Starting up a business is not always an easy event in the life cycle of an existing institution. The management departments always look onto ways of improving their services at lowest costs possible (Montana, 2008). Businesses in the present world improve their services by adopting different supplementary services. This is because management always wants to have the most outstanding services compared to those of one’s competitors within their industries of operation. For example, in the case of Facebook and Instegram, the former wants to acquire enhanced services with the intention of being at higher position than its competitors are. This is a modern strategy of skimming against actions of lesser and emerging players. This applies in order to gain an upper hand in business operations. Additionally, Facebook intended to beat its competitors like Google, which is an emerging threat in terms of picture applications. Customers asserted that Facebook pictures were becoming boring, which yielded to the corporation’s move of intending to purchase a lesser player’s services. Another primary strategy that arises in the present management world also involves an increase in customer awareness in the business field. The increasing knowledge of customers in the market implies businesses are responsive to dynamic desires of social world. Customers are increasingly becoming aware of the social lives of the other people in the different services. In the case of Facebook, customers asserted its photo applications do not provide a platform of sharing other people’s images, which is evident with Instegram’s software. This shows customers are increasingly becoming aware of what they need and quality of services, which they receive from varied global firms. This is an outstanding contemporary strategy, which management has had different concerns in the present world whose focus is create increasing customer awareness intended to evaluate firms’ services and choose the best. The present-day management issues arising in the sectors of media imply each managerial team ought to avail quality services to their respective customers in order to survive and thrive. Failing to apply this strategy has prompted numerous corporations end up falling out of market to the extent of not being able to have any significant comeback. Quality services comprise the first thing that attracts consumers towards a satisfaction edge (White, 2013, pp.8). This means people will always focus on service strategies, which their respective firms provide (White, 2013). Based on the scenario of Facebook buying Instagram at one billion dollars, there was an increasing demand for quality services from the applications, which Facebook was not in a position to do so due to fear infringing Instagram’s copyright. Conversely, Instagram is offering the services whose quality and effectiveness entice large pool of clientele in satisfying their desires or fantasies. This implied Facebook had to blend its services with the Instegram’s services in order to achieve the right quality besides enhancing operations. This is because in the contemporary world customers take quality as the central purpose for the existence of a business as well as enabling them to have what they need (Neeraja, & Jayam, 2013, pp.5). The other contemporary issue arising in the management side is the desire for continuous operations. The management in the present world raises concerns towards going concern principle instituted by the accounting department (Belloni, Freund, and Selove, & Simester, 2008). They always want to put the assumption that their business will continue to be in operation for longest time in future. Therefore, this entails businesses to have efficient strategies for managing its future business trends (Belloni, Freund, and Selove, & Simester, 2008). This calls for a strategy that will ensure continuous plan of action besides allowing consistency in its performance. In the case of Facebook and Instegram, there was a looming decrease in the improvement of various Facebook photo applications. This prompted the management of Facebook to absorb of Instegram’s services in facilitating continuous activities and operations, which will guarantee them success. This is one of the management’s issues observable in the contemporary business in the world. Additionally, the management has concerns of improvement of the consistency of their services for customers (Belloni, Freund, and Selove, & Simester, 2008). Extending the platforms of operations in a given business is also a central strategy currently charactering competitive industries (Belloni, Freund, and Selove, & Simester, 2008, pp.1544). Firms seek to accommodate diversified ways of doing marketing products. This implies that there are ways in which organizations can extend line of its activities, which will guarantee success. This has made many businesses to widen their bases though it entails observing market but not similar to what numerous educational systems have outlined. This encompasses knowing numerous ways of beating competitors in the present world. In the case of Facebook and Instegram, there was the desire by the former’s management to facilitate diversity. Their customers were losing platforms in the accessories of photo applications. This prompted the its management to purchase Instagramservices in order to increase Facebook’s operational power especially in advertising. Facebook’s management intended to take advantage of activities involving advertisements, which are increasingly becoming the financial base of InstagramCompany. Therefore, by acquiring the firm in question would greatly channel immense revenues compared to what it has spend in purchasing Instegram. Minimizing costs of managing startups is also a fundamental business interest in the contemporary world (Krug, 2009). Therefore, businesses are becoming sensitive especially when making investing decision whereby the main intention is to acquire or start operations of any given firm with little costs’ involvement. This implies wise investment is a concern in terms of outlay benefit analysis by the management. These activities have prompted the management panel of different firms to adopt strategies like outsourcing and takeovers. For survival, management has invested in cost reduction strategies that will enhance profitability and reducing any chances of incurring losses. In the case of Facebook, the launching of one billion deal was due to the fact that, it was an easy option rather than investing in machines that would provide the same needs. Facebook needed a way of improving photo application services whereby taking over of Instagram firm services was a good way of winning needs of the management at lowest costs possible. Conclusion The contemporary world implies a change in operations of most business’ activities. This implies management has to adjust their plans in accommodating dynamic environments that come along with massive uncertainties (Cooper & Finkelstein, 2008). Hence, calling for plans regarded as effective managerial actions and strategies. The case of Facebook and Instagram is practical scenario depicting how the former struggles to maintain its operations by adopting services of the latter. These strategies aim at maintaining quality activities for large pool of clientele of the purchasing firm whereby if there are no proper intentions of availing the required satisfaction would end up losing revenue and the sought global fan. This is because customers are becoming increasingly aware of the present-day ways of doing things and making comparison, which certain product would benefit them based on cash each person is willing to part with for a given service. References Adler, Y, & Shper, V 2010, 'Business and quality: in search of excellence', Current Issues of Business & Law, 5, 2, pp. 285-294 Belloni, A., Freund, R., Selove, M. & Simester, D. 2008, "Optimizing Product Line Designs: Efficient Methods and Comparisons", Management Science, vol. 54, no. 9, pp. 1544-1552. Cooper, C. L., & Finkelstein, S. 2008. Advances in mergers and acquisitions. Bingley, UK, Jai Press. Krug, J. A. (2009). Mergers and acquisitions turmoil in top management teams. [New York, N.Y.] (222 East 46th Street, New York, NY 10017), Business Expert Press. Mabry, L. 2012, "Competitive Advantage,” Knowledge Quest, vol. 40, no. 3, pp. 66-71. Montana, J., JD 2008, "Strategies for Minimizing Litigation Risks, Costs,” Information Management Journal, pp. 10-12. Neeraja, B, & Jayam, R 2013, 'customer satisfaction vs. successful business', Golden Research Thoughts, 2, 9, pp. 1-7 White, J 2013, 'Customer Satisfaction', Optometry Today, 53, 1, p. 8 Read More