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Benchmark - Case Study Paper

In the current age of revolutionary change, an organization is as healthy as its sustainability prowess. Today’s companies, unlike past generations, operate in a complex and fast-paced regulated environment. There is an increased need to satisfy current stakeholders, safeguard future generations, and most favorably use natural resources. It is in this breadth the Purple Cloud Company thirsts to speed up their product development, widen its market share, and seize new opportunities. The company’s sustainability strategy is acquisition and expansion as they aim to increase the value above $100 million and increase the organizations stock price above $71.

Acquisition is a strategic measure that allows businesses to increase their market share, expand their geographic reach, and become more significant players in their industries. In an acquisition, a corporation purchases another company to enlarge its operations. Small organizations use this strategy to expand its product line and enter new markets. The Purple Cloud Company implemented an acquisition strategy as a corporate sustainability resolution. The company purchased ABC-Tech, and the acquisition allowed the parent company to intertwine its services with the newly acquired and developed organization. The purchase yielded goodwill for the company’s stakeholders, provided a competitive edge, and reflected positively on the organization's financial bottom line. The acquisition of ABC-Tech, which is a company that offers a pure 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 not only expand its market share, especially if the home market is saturated with its products, but also expand its product line, and add new features to increase its sales and profits. The company will continue selling within the existing market. 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

Management theory is a collection of ideas that sets out general rules on how to manage a company or organization. Management theory addresses how managers and supervisors relate to their organizations in knowing their goals, implementing effective ways to achieve planned targets, and how to motivate employees to meet the highest standards.

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).

The improvement of technology 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 economic future of the organization. In fact, the proper use of the management theories allows the Purple Cloud company to experience rapid growth in its market share, an increase in sales, and the company’s stock position.

Leadership Theories

An organization’s progress is equally based on its leadership theories. The Purple Cloud Company needs leaders who stand out among the masses. Defining leadership is categorized commonly as an aspect of leadership theories. The Purple Cloud organization employs transformational leadership and trait leadership theories. Transformational theory is evident when different interactions between individuals within the company leads to solid relationships. 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 ensures 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. Organizational leadership is 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 different traits ranging from intellect, sense of creativity, and responsibility to other admirable values. The trait leadership theory is implemented by the organization to ensure the growth of prospects. 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 assist with the company’s rapid growth, and improvement of services. Thomson’s technological expertise and knowledge has created a team dynamic within the company. Technology is used to guard financial information, confidential managerial assessments, and other records that result in competitive pros. Technology assist enterprises to keep their ideas, thoughts, and plans away from competition. An organization equipped with technological abilities to explore new opportunities remain a step ahead of oppositional challenges. An organization continues to exist by growth and obtaining new prospective clients.

Discussion

Sustainability is a cardinal focus for organizations that aim to safeguard their footprints beyond generations. To make operations successful today, and preserve 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 a partnership 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). As an alternative, organizations adopt the Greenfield Venture; which is a market entry approach of establishing a new organization in a foreign country. The Greenfield Venture allows the Purple Cloud Company to enter new markets without the assistance of another established company in the country. The process of creating a Greenfield venture is expensive and complicated, but the company is provided with maximum control of operations, products and services. In fact, this method allows the company’s scheme to be built into the structure from the beginning.

Therefore, the Purple Cloud Company will have full control over its Greenfield business operations. The associated costs and risks are increased, because to establish a new business venture in a foreign country, the company must acquire local market knowledge and expertise, and develop relationships with stakeholders, which increases expenses, costs, and risks company exposure.

Purple Cloud Company also minimizes organizational exposure to political risks in the foreign country it wants to invest in. Company’s in alliance with the Purple Cloud Company will have the experience and understanding of local laws, customs, and cultural climate of the target country. This partnership works best when both portfolios complement one another, and do not display a competitive niche. Strategic alliances offer other benefits, including access to new technology, intellectual property rights, product and service diversification, improved material flow and product lifecycle, streamlining operations, and reducing overall costs.

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 with the quality demands of the state 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. The countries also have favorable restrictive regulations for foreign businesses, including foreign ownership of business property and taxation, import tariffs, quotas, and export restrictions.

Ethical Implications

Ethics are essential in determining the success or collapse of an organization. Ethical implications influence a company’s reputation and assist to identify a business model that will prosper despite challenges. Incorporating ethical strategic measures add considerable value to a brand, while the inability to do the right thing causes social, economic, and environmental damage, which has negative long-term effects on an organization. Once a company adopts ethical approaches to conducting business, they obtain the benefits of demonstrating high ethical standards (Wallace & Sheldon, 2015).

The ethical implications and tone begin at the epicenter of the organization. Management information on social, environmental, and high-quality ethical performance is vital to monitor the social and ecological impacts of a company and linked to compiling reports that show how effective their governance arrangements are (Smart, Barman, & Gunasekera (2010). Corporate communications and sustainability reports must do more than just pay for direct attention. They should provide substantial evidence of the positive impact on society, and the strategic returns to the company, and how the adverse effects are being addressed (Smart, Barman, & Gunasekera (2010). Management accountants have an ethical responsibility to promote an ethical culture that does not allow unlawful practices. Throughout Purple Cloud’s development, the company must consider the ethical approach in its organizational strategy and decision-making processes. By doing so, it will improve the company’s mission, vision, and core values.

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. Purple Cloud Company must make philosophical adjustments not only to enhance the company’s income and profit rate, but also accomplish the mission of providing quality protection products, the vision of safe cloud movement for applications, and the organizations core values.

Reference

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

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

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

Wallace, M., & Sheldon, N. (2015). Business research ethics: Participant observer perspectives. Journal of Business Ethics, 128(2), 267-277.

Smart, V., Barman, T., Gunasekera, N. (2010). Incorporating ethics into strategy: developing sustainable business models. Retrieved from, https://www.cimaglobal.com