Beyond 2000

Acquisition is a strategic measure implemented by the Purple Cloud Company as a corporate sustainability resolution. The company purchased ABC-Tech, and the acquisition allowed the parent company to intertwine its services with the acquired developed organization. The purchase yielded goodwill for the company’s stakeholders, provided a competitive edge, and reflected positively on the organizations financial bottom line. By acquiring ABC-Tech, which is a company that offers a simple technology platform, allows the organization to reduce customer support costs from $7,000 to $6,000, increase ABC-Tech revenue from $24 million to $48 million, increase revenue from $70 million to $100 million, and increases the profitability index from 17.2% to 18.7% market share, this will attract talent, and drive innovation. (Spears, 2012).

Additionally, the Purple Cloud organization should deploy an expansion strategy. This step will expand their market share, especially if the home market is saturated by their products. This is an inevitable venture given the prospect of it promoting access to new territories that will boost sales volume, allow diversification thus reducing risk exposure, facilitate access to better talent pools, build strong public relations, bring forth a competitive advantage, and most importantly provide opportunities for direct foreign investment.

Management Theories

Today’s organizations are comprised of individuals who manage the employee pool based on the science of humanistic approaches, which has evolved from the authoritarian mindset of the past generation. Purple Cloud has benefited from various visionary methods of operating sustainable companies commonly referred to as, management theories. A primary management theory is classical theory. The use of data and measurements allows the Purple Cloud management team to observe and evaluate business functions in numerical terms. The quantitative focus on the operations, and the production of services allows the company to achieve informed decision-making, and effective profitability.

Domestically, the company has a larger market share, and this motivates the organization to locate emerging markets internationally. The company employs capable personnel, including a consultant to improve the standards of operations, and their market share (Spears, 2012). Moreover, the company develops toys that carry embedded software for device spying, providing a competitive advantage in different markets. In a nutshell, the company has increased revenues, increased profits, and recorded flat hosting costs and marginal increase in operational costs.

Additionally, the organization is implementing the modern management theory. This is an ideal theory given its holistic, integrated, and well-balanced approach to organizational goals. The theory appreciates the fact there should be cohesion between various functions. Its efficacy is embedded in the recognition and leverage on unique patterns of the organization's flow of operations. This management theory makes it possible for the Purple Cloud management team to analyze quantitative data, and foresee their future in resource availability (Spears, 2012).

Technology improvement allows the company to catch the market and penetrate in different regions within and without operating in those countries. Financial statements aid in determining and providing informed decisions about the financial future of the organization. In fact, the proper use of the management theories allows the Purple Cloud company to experience rapid growth in their market share, an increase in sales, and the company’s stock position.

Leadership Theories

Organizations progress based on strong leadership. The Purple Cloud Company needs leaders who stand out among the masses. The company employs the transformational leadership theory, and trait leadership theory. Transformational theory is evident when different interactions between individuals within the company leads to solid relationships. The relationships bore heightened trust that increased motivations intrinsically and extrinsically for both leadership theories (Denning, 2017). Transformational leadership allows individuals who join the organization to build a relationship that ensure growth, and success of the organization. From the CEO to new recruits, the company has dedicated personnel who has transformed the organization into a strong and promising venture to compete favorably beyond the local market. The company leaders are concerned with the future of the organization, and how to improve daily operations.

Trait leadership theory focuses on mental, physical, and social paradigms. The leaders of the organization have diverse traits ranging from intellect, sense of creativity, and responsibility to other admirable values. The trait leadership theory is used by the organization to ensure that growth prospects are implemented. The company posts leadership profiles to showcase their market potential based on their experience, and their ability to deliver growth for the company. Leadership professionals smoothly operate company activity, and display confidence based on the outcome of the process (Spears, 2012).

Additionally, the company personnel are comprised of individuals from diverse backgrounds. As an example, the company’s Chief Information Officer (CIO) is Thomson Thunder, who has prominent experience in technology, which has assisted the company’s rapid growth, and improvement of services.

Discussion

Sustainability is a cardinal focus for organizations that aim to safeguard their footprints beyond generations. To make operations successful today, and safeguard future interests, an organization must integrate policies and processes into planning and measurement systems. This method allows the paradigm shift from conventional management practice to sustainable approach inevitable. There is no one-size-fits-all approach. However, there is a trade-off based on what management wants to do, and what leaders must do to sustain the financial growth of the organization (Denning, 2017).

Strategic alliance is a method the Purple Cloud company should use to enter international new markets. Through this entry method, the company forms an alliance with an existing company in the nation they want to operate, and work with the organization for a certain amount of time to set a foundation in that country. This prevents the company from being treated as a foreign entity, especially for purposes of import tariffs, and other duties levied on imported products (Denning, 2017).

Purple Cloud can operate in new countries as a multinational company, customizing their products and services to the needs of each country of operation. The organization must comply to quality demands of the country in which they operate and provide consumer needs. Mexico and India are prominent choices the company should consider, because they exercise democracy, provide diverse production processes, and international investors.

Conclusion

Organizations are as sound as the sustainability methods they employ within the balance of the company, and external factors that threaten organizational growth. The Purple Cloud company is on the path of improving the productivity of resources, as long-term growth viewpoints are considered. The company is implementing vibrant management theories, such as, classical and modern management theories, matched with professional leadership theories, trait and transformational theories. These are essential in attaining organizational sustainability poised to increase market share, lower costs and expenses, increase sales, build brand loyalty, drive innovation, improve talent acquisition, and provide the organization with a competitive advantage.

References

Spears, U. (2012). Coaching Leadership Families: Using the Leadership Family Model to Coach, Mentor and Multiply Healthy Families. Bloomington, IN: Xlibris Corporation.

Denning, S. (2017). The Age of Agile: How Smart Companies Are Transforming the Way Work Gets Done. Amacom.

Spears, U. (2012). Managing People and Organizations: Peter Drucker's Legacy. West Yorkshire, England: Emerald Group Publishing.