Category: Blackberry

Abstract

The preferences of consumers change with the change in technology. RIM Blackberry failed to keep-up with such changing technological trends in 2013. Considering the fact that the mobile market is highly competitive, it is imperative for the mobile manufacturing companies to be coherent to the technology being used globally. The market shares decline, that Blackberry faced needs to be analyzed by a Soft Systems Methodology (SSM) in order to understand the perceptions that exist and to find a solution. This report looks at ways to apply the SSM to solve the problem that Blackberry faces due to the current technological challenges. Overall, it demonstrates the overview of Blackberry as a company and its struggle to improve its market shares and reputation within the industry.

Introduction

Unlike other industries, the mobile industry is all about adaptation. Such adaptation has to be from both the manufacturer and the consumer. The manufacturer has to adapt to new and innovative techniques and the consumer has to adapt to change (new versions or models). If both these entities perform their individual roles of adaptation in a perfect manner, there is no possibility of a particular mobile manufacturing company not performing well.

In September 2013, the Blackberry Company “reported a net loss of $965 million for the second quarter” (Blackberry reports Q2 loss of $965 mn, 2013, para. 1). The loss was ascribed to lower revenue from its latest smart-phone. Blackberry experienced great financial crisis due to this incident. In an attempt to come out of the financial crisis, the company declared that it would scrap more than 4,500 jobs globally. It is worth mentioning that during the same period, Apple, its competitor, was able to sell not less than 9mn units of the company’s new smart-phone.

Five years back, the Blackberry Company was among the best technological performing companies with a significant market share (Hicks, 2012). Things did not seem rosy since the past two years when its sales started dwindling. The huge second quarter loss of 2013 confirmed that all was not well with the company. The only thing that people wanted to know was the reason for this downfall. This paper makes use of the systems thinking methods and techniques to explain the origin of the decline in Blackberry’s performance. In addition, these methods are utilized to chart a course of recovery from the decline and re-establish the company as a leading technological company.

It is very unfortunate that Blackberry is now poised for a change in its management. It is surprising to note that the news of such a change (in August, 2013) suddenly improved the market position of the company’s shares. There was an increase of 10% (Miller, 2013). The following paper discusses the factors responsible for this debacle.

Research in Motion (RIM) and Blackberry are common names associated with smart phones that revolutionized mobile communication and other related services. It is understood that companies experience changes (depending on their way of dealing with issues) that are either beneficial or detrimental to their overall performance. Blackberry had a success story for its competitors to emulate and clients to appreciate, but the present scenario demands a great struggle by the company to regain its ground and overcome the financial challenges it is experiencing.

Background

In order to maintain an upper edge in the competition race, it became imperative for Blackberry to introduce a new phone model that would be able to replace all other similar products and compete effectively with other similar companies. Unfortunately, the idea flopped and Blackberry started experiencing its downfall shortly after it released its first Smartphone. The downfall forced Verizon to switch over to other companies. His intention was to ensure that Blackberry produced a touch screen phone that would ensure that its market is retained and expanded.

This did not happen and the efforts by co-CEO, Jim Balsillie, to develop instant messaging software, were opposed by the current CEO, Thorsten Heins. Balsillie was forced to quit the Blackberry board and seize his relations with the company because he thought his presence in the company was not adding value. The Blackberry directors, led by Heins, ignored Balsillie’s advice and went ahead with their plans, that later had serious implications for the company. These are some of the reasons that triggered Blackberry’s long journey to financial crisis. The crisis forced some of its top office bearers to resign for fear of being condemned of failing the company.

The year 2012 witnessed a mobile war and to combat it, Thorsten Heins (CEO) and members of the board decided that the company’s weapon would be the fully touch screen Blackberry Z10. Michael Lazaridis opposed this plan. According to him, the company had learnt various lessons from its previous products and there was no need of investing in a device that had already reached saturation in the market. Kristian Tear and Frank Boulben opposed Michael’s idea claiming that the keyboard-equipped mobile phones were no more in demand. This episode marked a turnaround for Blackberry’s performance because it failed to meet its financial targets after launching the Blackberry Z10.

It reported a $ 965 million fiscal second quarter loss because of a huge write down of this product. The plan had flopped because the company had not met its target even eight months after launching this product. The company is unable to meet the cost of paying its workers and has already reduced 4,500 jobs. This means reducing its employees by 40%. Even though Blackberry invented the smart phone concept, it is unable to compete with similar companies and this has lowered its market value by $75 billion within the past five years. It is evident that significant rifts between board members are to be blamed for causing serious conflicts and barriers while implementing the projects of this company.

Balsillie resigned from the company’s board because his proposal to introduce a universal product that would promote instant messaging on all phones was opposed. This and other similar happenings have cast the future of this company in doubt. Fairfax Financial Holdings announced its intention to take over Blackberry at an estimated cost of $ 4.7 billion. The Apple iPhone was a grave warning for Blackberry because of the complexity of its services. It was a mini computer and this baffled Balsillie who downplayed this innovation by casting doubts on the new software and propagated its threat to collapse networks. The launch of its two way email pager managed to compete with Apple’s iPhone and minimized its influence on the global market.

The post iPhone period dealt a serious blow to Blackberry because it required the use of different data packages from the traditional wireless carriers. This forced Lazaridis to buy Torch Mobile. The company made software that enabled mobile phones to have web connectivity. However, it was very challenging to fix this application in a Java supported device because it was only compatible with Android and Apple systems. This showed that the company was neither prepared nor positioned for the future of smart phones. The DNA of Blackberry was very old and it was necessary to change it to enable the company to extend its life.

Blackberry’s structure was very complicated and even though the two CEOs worked in unison, their subordinates were a big hurdle to decision making. It took too long to account for shortcomings and new products were never launched as planned due to long consultations. The plan to launch its first notebook (PlayBook) did not help the company recover from perennial failures and led to serious losses. Lazaridis is optimistic that the Blackberry story will never end and there is a possibility that he may be in the team planning to buy his former company and rejuvenate its performance.

Soft Systems Methodology

Reliability

Root Definition

BlackBerry will provide a reliable service (W) that depends on a fault tolerant system (T) to keep consumers (C) satisfied in using the latest technology (E), which now has investment (E) for the IT department (A) in the company that is owned by RIM Blackberry (O).

CATWOE

Table 1: CATWOE for the reliability.

E’s Criteria

Table 2: E’s criteria for the reliability.

Conceptual Model

Security

Root Definition

The company will provide a secure system (W) by using the encryption keys and data protection act (E) that is implemented by the IT department (A) which safely secures customers’ personal data (T) to keep the consumers (C) loyal to RIM Blackberry (O).

CATWOE

Table 3: CATWOE for the security.

E’s Criteria

Table 4: E’s criteria for the security.

Conceptual Model

Phone Design

Root Definition

The company will provide a faster response to technological trends (W) by responding quicker to the customers’ requirements (T). RIM Blackberry (O) needs to generate the resources and finance (E) in order, for the Media department, and the CEO (A) to produce a new phone design, that should regain the confidence of consumers (Individual users and Businesses) (C).

CATWOE

Table 5: CATWOE for the phone design.

E’s Criteria

Table 6: E’s criteria for the phone design.

Conceptual Model

Accessibility

Root Definition

The company needs to make BBM accessible to other consumers (W) by making it a cross platform application (T), which would allow accessibility to all consumers (C) using other popular smart phone devices. RIM Blackberry (O) is unable to produce this, due to mobile phone network constraints (E), which is controlled by the mobile phone network companies (A).

CATWOE

Table 7: CATWOE for the accessibility.

E’s Criteria

Table 8: E’s criteria for the accessibility.

Conceptual Model

Conclusions

The Soft System Methodology indicates that organizational problems, intensive technology, and industry competition are the reasons behind the decline of the Blackberry Company in the market. The corporate culture of the organization prevented organizational learning and change; this resulted in the loss of its market share. Analytical thinking suggests that a cultural change is necessary for a company to recover in the long run. In addition, technological innovation is critical for the organization to remain competitive in the market. By hiring a new CEO, Blackberry hopes to bring-in a range of new technologies and ideas that should have a knock on effect so that Blackberry’s staff may feel more secure about their future with the company. As is evident from the rich picture below, the suggested model is totally different from the real world model.

By using the SSM, it was revealed that RIM Blackberry was overloaded with environmental pressure which caused the decline of the shares. In concluding, it is understood that the business environment for the Smartphone industry is becoming more and more competitive. We have realized that progressing while considering the internal and external changes is critical for the organization’s success. RIM Blackberry achieved its success through the transformational level that we suggested in the CATWOE, when the company started facing industry challenges from its competitors (Apple’s iOS and Google’s Open Source Android Platform).

SSM explains that problems cannot be solved by disintegrating them into individual components. This is because such activities can only be examined when they are together due to the interaction of its components. System thinking is a process that involves a methodological comprehension of problems and identification of their solutions. The system has to be analysed within its environment by taking account of its external environment. Through analysis, solutions to a problem are obtained and organizations are able to have a learning system (Cabrera, 2006).

Recommendations

In providing a solution for the recovery of Blackberry, the infusion of money is not the only solution for the company. Analytical thinking shows that the company needs to change its corporate culture to facilitate a learning system where the executives are ready to adopt new ideas. In the fast moving smart-phone industry, the company needs to re-invent its technological base and develop operating systems that are flexible to the shifting customer trends. The competitive applications of eco-systems and a competitive marketing strategy should be put in place by the company to re-gain its market share. The company needs to utilize consumer feed-back in the development of competitive products that match the changes in the industry.

References

Blackberry reports Q2 loss of $965 mn. (2013).

Cabrera, D. A. (2006). Systems thinking. Web.

Hicks, J. (2012). Research, no motion: How the Blackberry CEOs lost an empire. Web.

Miller, H. (2013). Blackberry CEO to make $55.6 million if he sells company. Web.

Abstract

Since the dynamics of businesses are broad and challenging, they require stringent management strategies to regulate them. In recent decades, the corporate world experienced a series of challenges, as some multinational firms plummeted while others triumphed. The conditions are even worse in the telecommunication and technology companies, which are dependent on the emerging changes in the volatile markets. Since the emerging markets are very volatile, it is difficult for the telecommunication and technological companies to adjust market forces effectively. What is evident is that the preferences of consumers change with the advancement in technology. Failure to realize the trend of the consumer preferences halted the dominance of BlackBerry’s smartphones in the mobile phone industry from the year 2011.

Quandaries in the top management and failure to enhance innovation in the company resulted into plummeted sales and loss of reputation in the markets, which greatly affected the dominance of the BlackBerry Company. Using Soft Systems Methodology in the analysis of the prevailing situation and recommending actions for the company to integrate, BlackBerry can restore its initial market reputation. The approach involves a systematic way of analysing a problem associated with the performance management and provides a possible means of restoring the performance.

Introduction

As corporate competition continues to intensify, firms continue to experience various management challenges that affect their progress and market reputation. In recent decades, the corporate world has experienced a series of challenges, which have made some multinational firms to plummet while others to triumph (Reed, 2006). BlackBerry Limited is one of the modern phone technology firms that have experienced management issues, which have led to its collapse as a corporate entity. BlackBerry has been among the most renowned phone technology companies, however, since 2011, the company’s sales and overall market reputation has plummeted dramatically.

Appearing in the earliest times when phone technologies were growing, BlackBerry dominated the smartphone industry for a considerable period, but has failed to recover against Apple. It is important to understand that although BlackBerry is facing such serious economic downbeats, systems thinking approaches may assist it to recover its lost performance. Therefore, this case study seeks to employ the systems thinking approach in designing a strategy that would assist BlackBerry to restore its stature in the realm of smartphone technology.

Background Situation

BlackBerry has been among the most renowned telecommunications and mobile phone service provider, since its inception in 1984. For the past five years, the company managed to dominate the mobile phone industry because it was competitive in designing modern smartphones (Miller, 2013).

However, since 2011 the company seems to have lost its market reputation and experience extreme downbeats in sales, as the general sales gradually plummet. Recently in September 2013, BlackBerry reported a net loss of about $965 million (Hicks, 2012). The company’s management ascribed the loss of meagre revenue from its smartphone market performance. Such collapses in the net sales of its major telecommunication devices, including smartphones have contributed to the detrimental financial crisis to the BlackBerry Company. Following such incidences, the company announced that it would scrap more than 4,500 existing jobs in the company structure (Miller, 2013). While BlackBerry plummets in its market reputation, its closest market competitor Apple tripled BlackBerry sales by 9 million.

The company had already built an extensive international market reputation and, since such downbeats acted as a drawback to the BlackBerry operations, the public has raised questions into what transpired in the company (Miller, 2013). Following public pressure and the urge to restore its market reputation, BlackBerry Company has been seeking ways of restoring its initial business performance and means of transforming its management. The few strategies towards change have suddenly resulted in an improved market reputation of BlackBerry and an increase in its market share (Hicks, 2012).

The findings of the backdrop to the prevailing problem reveal that management of BlackBerry played an important part in the dwindling of the company. Recent investigations into the BlackBerry misery indicate that such turnarounds resulted from inadequate modern innovation to produce elegant telecommunication devices and improper management skills that hampered its business performance (Hicks, 2012). Decision-making disparities amongst BlackBerry top management, including the Chief Executive Office over the production of touch screen phones contributed to the downfall of the company.

Purpose of the Study

It is normally uneasy to keep a steady rise and maintain dominance of the market in the competitive business world that seems unpredictable and constantly changing (Reed, 2006). Such business issues predispose businesses to risk of downfall. Modern companies experience varied corporate management challenges and a downfall among other miseries, is a common misfortune in an organization that is serving in a highly competitive and challenging business world. Reed (2006) asserts that, “leaders operate in the realm of bewildering uncertainty and staggering complexity and success in the contemporary operating environment requires different ways of thinking about problems and organizations” (p. 10).

While a range of problem-solving strategies for performance management have been overtly applied in different organizations, it is important to note that systems thinking approach is also vital (Kravchenko, 2013). Soft Systems Methodology (SSM) is one of the modern and effective problem-solving techniques. The main intent of this report is to apply SSM in BlackBerry to help in solving the prevailing performance management quandary.

Stakeholders

The Soft Systems Methodology involves a systematic approach that members of the management board integrate into an organization. The SSM is important because it involves deep insights and rigour evaluative through using multiple goals, different logics, various views and perspectives, and different stakeholders (Kotiadis, 2007). Major actors in the SSM approach are the people responsible for developing the system and those who will oversee its operations throughout the implementation process (Kotiadis, 2007). The SSM development process requires an involvement of different stakeholders as desired by the operatives (Kotiadis, 2007). In the case of the BlackBerry Company, the top management members are the most important stakeholders that will spur the development of the system and oversee its operations throughout the implementation phase. The main people in the system development are the executive members and managers of different departments of the BlackBerry Company.

Viewpoints and Perspectives

The SSM approach involves viewpoint or perspectives that drive the objectives of the system in transforming the organization through a series of presumed changes (Anderson et al., 2006). Understanding the perspectives and viewpoints that involve plausible intended actions that an organization seeks to integrate and revive the performance of the company is an important step in the development of the SSM approach. In understanding the perspectives and viewpoints, it is important to know the mnemonic CATWOE first (Williams, 2005).

In the mnemonic CATWOE, customers are the people expected to benefit from the intended transformations, actors are the individuals to facilitate such transformations, while transformations are the real process from the beginning to end (Anderson et al., 2006). Weltanschauung is the component that gives transformation credible meaning, as the owner is an individual answerable to the transformation, while the environment is the indirect influence of the control system.

Systems Failure Approach: Pre-Analysis

Soft System Methodology is a systematic strategic tool that organizations can use to diagnose and tackle problems through designing new systems of pluralistic ideas and values (Kotiadis, 2007). The pre-analysis section in the SSM involves developing the richest picture that presents the problematic situation in a diagrammatic manner.

Rich Picture

Explanation

Drawing the rich picture is the first approach in the SSM technique to demonstrate the diagrammatic representation of the problem and the association between variables that contributed to the problem. Wilson (2008) states rich picture offers an appropriate analysis of a case study because “it presents organizational entities of interest, the relationship between them, roles apparent significance, issues, and areas of conflicts” (p. 35). The rich picture depicts how different forces in the case study interact and contribute to the occurrence of system failure. From the rich picture, it is evident that many factors contributed to the decline of the Blackberry shares. Hence, the spray diagram in necessary to provide additional insights into the issues that led to the decline of BlackBerry shares. Therefore, figure 1 is the rich picture, which depicts the BlackBerry situation. The chart presents the areas of concern, which are the problematic variables that cause system failure.

Spray Diagram

Explanation

The above spray diagram demonstrates the contextual situation that describes how different factors contributed to turnarounds of the BlackBerry Company. The above spray diagram helps the SSM approach to organize associated concepts or elements concerning the problem, and the association between them. The above spray diagram, demonstrates the relationship between problem causative elements and the central problem. Decline in the shares of the BlackBerry Company involved a continuum of interrelated aspects like competitor pressure, inability to develop new designs, changed consumer perceptions and broken security systems. This means that for management to revive BlackBerry, it must undertake massive reforms in these aspects because they cumulatively contributed to the system failure.

Relationship Diagram

Explanation

SSM is an integrative approach that involves indicating the prevailing relationship between concepts and issues just as in the case of spray diagram. SSM is a dynamic approach that involves several diagrammatic models that indicate various interrelationships that reveal the connections associated with the problem.

Multiple Influence Diagram

Explanation

The SSM approach contains an analysis of multiple goals, multiple perspectives, and different logics. A multiple diagram can demonstrate a relationship between the concepts and aspects associated with the problem identified. The multiple influence diagrams above represent the association between aspects and concepts that contributed to the collapse in the sales and shares of BlackBerry.

Systems Failure Approach: Systems Modelling

I/O Diagram

Systems Map

Influence Diagram

Formal Systems Model

This is the final section of the SSM approach, which involves building the system from the system conventions. It entails developing the root definitions and describing the most important activities that are essential to carry out the transformation. The transformation (T in COTWOE), as previously mentioned, is the entire process in the system that includes the starting point to the end of the process. The SMM approach consists of the root definitions and important systems that the company should adopt to recover its performance management. SMM suggests the development of different perspectives that the analysis can extract from the situation as expressed in the rich picture.

Using the Customers, Actors, Transformation, Weltanschauung, Owner, and Environment (CATWOE) mnemonic technique, the SMM model will have the following transformation components. In the mnemonic CATWOE customers, are the people expected to benefit from the intended transformations, actors are the individuals to facilitate such transformations, while transformations are the real process from the beginning to end. Weltanschauung is the component that gives transformation credible meaning, owner is an individual answerable to the transformation, while the environment is the indirect influence of the control system.

Reliability: Root Definitions

Through the SSM approach, the company will provide a series of transformation elements as suggested in the mnemonic CATWOE. CATWOE: the company will provide reliable services (Weltanschauung- W) to its customers that depend on a fault tolerant system (Transformation-T), to keep the product clients (Customers-C) satisfied by means of the latest technology (Environment- E), which now has invested in the Information Technology Department (Actor -A) in the BlackBerry Company (Owner- O).

Table 1: CATWOE for the reliability in BlackBerry.

Environment (E) Criteria

Table 2: E’s criteria for the reliability.

Security of BlackBerry: Root Definitions

The company will integrate a security system (W) by using encryption key and data protection act (E) through its IT department (A), which enhances safety of customer’s personal data (T) to make the purchasers, clients or simply users (C), become loyal to BlackBerry (O).

CATWOE for security

Table 3: CATWOE for the Security.

Environment assessment criteria for security

Table 4: E’s Criteria for the security.

Conceptual model for security

Phone Designing: Root Definitions

The IT department of BlackBerry (O), through the developed system, should be responsive to modern technological trends (W) by improving innovative designs that satisfy consumer needs (T) and invest enough resources and money (E) to enable the media department and the CEO (A) to produce customized phone designs to regain the confidence of BlackBerry purchasers (C).

CATWOE for phone designs

Table 5: CATWOE for the phone’s design.

Accessibility: Root Definitions

As part of its transformation agenda, the company and its products have to be accessible to clients (W) by introducing a cross platform application (T), which would allow accessibility to all potential consumers (C). Unstable access to mobile phone networks (E) controlled by other telecommunication providers (A), makes the BlackBerry Company (O) to be unable to produce stable smartphones.

COTWOE for accessibility

Table 7: E’s Criteria for the Accessibility.

Environmental assessment criteria for accessibility

Table 8: E’s Criteria for the Accessibility.

Conceptual model for accessibility

Conclusions

While companies are applying all possible strategies to avoid downbeats, it is normal that the competitive corporate markets may collapse, especially for those companies in the telecommunication and technology industry. SMM is an effective business performance approach, which may transform or help a company recover from its decline in global markets. Therefore, in the analysis of issues affecting it, the BlackBerry Company should apply the SMM approach and thus come up with robust solutions of transforming its decline in the telecommunication industry. In developing the business performance model, the mnemonic COTWOE is important in identifying major aspects and concepts, as well as a means of integrating them effectively in the business system.

References

Anderson, D., Bryson, J., Richardson, G., Ackermann, F., Eden, C., & Finn, C. (2006). Integrating Modes of Systems Thinking into Strategic Planning Education and Practice. Journal of Public Affairs Education, 12(3), 265-293. Web.

Hicks, J. (2012). Research, no motion: How the Blackberry CEOs lost an empire. Web.

Kotiadis, K. (2007). Using soft systems methodology to determine the simulation study objectives. Journal of Simulation, 1(3), 215–222. Web.

Kravchenko, V. (2013). Using Process Analysis and Modelling in an Integrated Problem Solving Approach to Business Performance Improvement. International Journal of Advances in Management and Economics, 2(5), 49-62. Web.

Miller, H. (2013). Blackberry CEO to make $55.6 million if he sells company. Web.

Reed, G. (2006). Leadership and Systems Thinking. Web.

Williams, B. (2005). Soft Systems Methodology. Web.

Wilson, B. (2008). Soft Systems Methodology: Conceptual Model Building and Its Contribution. London: John Wiley & Sons. Web.

Appendix

BlackBerry’s Current Mission

• Blackberry’s mission has been revised to reflect the current nature of the market.
• The current mission statement reads as follows: To be the leading telecommunication and wireless company in the world.

Blackberry Limited has revised its mission statement in order to reflect its current focus in the market. Although the firm is known for its quality Smartphone and tablets, the management has been focusing most of its attention towards the telecommunication and wireless industry. Its software has been popularly used in organizations across the world, including governmental departments. The management of BlackBerry has been struggling to expand its telecommunication services to various parts of the world beyond North America. The mission was adjusted to reflect its decision to expand its telecommunication services to the global market. Currently, the firm is planning on how to enter the Chinese and Indian markets.

BlackBerry’s Objectives and Strategies

• To achieve global market coverage
• To continue offering high quality products
• To improve its income from the sale of its products

BlackBerry has developed its objectives based on its mission statement. The firm seeks to achieve global market coverage with its high quality products. The industry is highly competitive, and that explains why the management has come up with the strategy of offering high quality products. With the current market competition, this firm can only achieve success if its products are superior to those of the existing competitors. The management also seeks to improve its income through improved sale of its products. In order to manage the challenges posed by the external environment, this firm would need a strong financial base. This can only be achieved through increased sales in its current markets.

BlackBerry’s Current Financial Condition

Importance of the Financial Ratios

1. Current Ratio = Current Assets/Current Liabilities = 5,057,000/2,268,000 = 2.23
2. Quick Ratio = (Current Assets -Inventory)/Current Liabilities = 5,057,000 -244,000)/2,268,000 = 2.12
3. Debt Ratio = Total Debt/Total Assets = 7,552,000/ 3,927,000 = 1.92

Financial ratios play an important role when analyzing a firm’s performance. BlackBerry’s financial ratios shown above helps in determining the firm’s current financial position. These rations are important to the investors in determining the financial health of a firm. The current ratio calculated above indicates that this firm is able to pay its short-term debts without straining. Short-term creditors will always be willing to offer financial assistance to a firm with such an impressive current ratio. This impressive performance is confirmed by the quick ratio that has been calculated. It shows that BlackBerry may not necessarily depend on its inventory when planning to meet its short-term financial obligations. Finally, the debt ration that has been calculated reveals that this firm does not heavily rely on debts to finance its operations. Despite this positive image, analysis of the financial documents reveals that there has been a consistent drop in revenue, operating income, net income, and total assets of this firm within the past three years.

External Opportunities

• SWOT Analysis Model
• Improved economy
• Increasing population of the middle class
• Improved technology

In order to analyze the external and internal environmental factors that affect the operations of BlackBerry, a SWOT Analysis Model would be appropriate. The external environment poses a number of opportunities that this firm should capitalize on. The improved world economy following the end of the recent recession means that the purchasing power of the consumers has increased. The increasing population on the middle class in China, India, and other emerging markets is another opportunity that BlackBerry can capitalize on. The middle class form the main target market for most of the BlackBerry products. Improved technology has also been beneficial to this firm. Technology improves the production and marketing strategies of the firm. Improved means of transport through air and sea helps in ensuring that products reach the market within a short period.

External Threats

• Competition from the market rivals
• Increasing cost of production
• Fluctuating market prices
• The legal environment in the international market

The external environment has a number of threats that should be monitored and managed in order to avoid their negative consequences. There is a stiff competition in the market that BlackBerry has to manage. Firms such as Apple and Samsung offer very stiff competition in the Smartphone market. The increasing cost of production is very worrying. It forces the firm to increase its prices in order to remain profitable in its operations. This may drive some customers away from the products of the firm. The fluctuating market prices is another issue that is causing serious issues to many firms in this industry. Sometimes the fluctuation may cause serious loss of profit to the firm. The legal environment in the international market is also posing challenge to the BlackBerry, especially in cases where the firm has to follow bureaucratic processes to get operating license.

Internal Strength

• Strong market brand
• Strong financial base
• Experience in the market
• Pool of highly talented employees

BlackBerry has some internal factors that give it strength to manage forces that may affect it in the market. Its BlackBerry brand is one of the best known brands in the Smartphone industry. The popularity of this brand in both developed and emerging economies has offered the firm acceptance in the global market. It also has a strong financial base following a long period of positive sales in the market. Being one of the first firms to venture into the Smartphone industry, it has enough experiences about the forces in the external environment and how to manage them. A large pool of dedicated and highly talented employees has also enabled this firm to remain innovative in its product designs and marketing strategies. These factors have helped the firm to remain competitive.

Internal Weaknesses

• Slow adaptation to changing environmental factors
• Inability to manage competition
• High employee turnover

BlackBerry has a number of weaknesses that have affected its ability to be successful in the market. One of the main shortcomings of this firm is its slow adoption to change. Although it is one of the first firms to venture into the Smartphone industry, it has failed to come up with better versions of these products, allowing its main competitors such as Apple and Samsung to surpass it. The firm is has been slow in managing some of the emerging technologies in the market. This has largely been seen as an inability to manage market competition. The recent cases of high employee turnover are another weakness that needs to be addressed. When the skilled employees leave the firm, they transfer the knowledge experience to other rival firms.

How BlackBerry’s Strategy is Aligned with Market Conditions

• The current market environment of electronic and telecommunication industry
• BlackBerry’s market strategy in this industry
• How BlackBerry’s strategy is aligned with the market condition

The market environment of electronic and telecommunication industry has become very competitive. The emergence of new technologies and small more flexible firms have been exerting pressure on existing firms such as BlackBerry to come up with superior production and marketing strategies. BlackBerry has been keen on using production strategies that emphasizes on reduced production cost. The firm has failed to invest in research, one of its core values in the market. Some of the strategies this firm is currently using to produce and market its products is not consistent with the market conditions. For instance, the firm is yet to make serious investment into the production of touch-screen phones. However, the management has been keen to ensure that its strategies are based on market research.

Revising the Firm’s Mission and Objectives

• The effectiveness of the current mission
• Application of the current mission and objectives
• The need to revise the firm’s mission and objectives

The mission of an organization is meant to provide a path through which a firm would take to achieve its objectives. The mission should offer a practical and precise approach that a firm should take in meeting the needs of its stakeholders. The current mission statement of this firm is effective and does not need any revision. Its objectives also capture what the firm needs to achieve in order to be successful in such a competitive market. What needs to be done in this firm is proper application of the current mission and objectives that are set in its website. The mission will ensure that the firm remains innovative in its production and marketing strategies. The current objectives can also make it manage the current competition effectively.

Corporate and Business Strategies

• The current position of the firm
• Changing communication strategies
• Changing the current marketing strategies
• Using Porter’s generic strategies
• Using corporate social responsibility to improve its image

BlackBerry has been overtaken as the market leader in the Smartphone industry. It is position three in this industry, having been overtaken by Samsung and Apple. From the above analysis, BlackBerry has a superior mission statement, but it’s the strategies used to implement it are not effective. The management should change its bureaucratic communication system. In its place, it should embrace an open system of communication where a junior employee can communicate directly with the top management without having to go through the middle managers. This will allow the top management unit to have a clear picture of what is happening on the ground. The firm should also embrace online marketing strategies, especially the social media. While using Porter’s generic strategies, the firm has emphasized on cost leadership. However, its current position cannot allow it to pursue the same route. It should now focus on differentiation. The marketing unit should also consider using corporate social responsibility as a tool that can help it improve its public image.

Marketing and Finance Strategies

• Social media marketing
• Using Porter’s Five Forces strategy
• Increasing sources of funds
• Allocation of funds

BlackBerry should employ innovating marketing strategies that will help it improve its sales in the market. The firm currently uses mass media marketing in order to reach its customers. This strategy is effective in reaching the target group within regional borders. However, when it comes to reaching the global consumers, social media is the most appropriate platform that BlackBerry should use. The marketing unit should use Porter’s Five Forces to define its strategy in the market. It should manage threat of new entrants by expanding its market share to new markets. The bargaining power of the buyers can be managed by delivering superior products in the market, while the power of the suppliers can be managed by forming partnership with them. Majority of the youth, who make the bulk of the firm’s customers, can easily be reached through the social media. The best way of increasing the funds for this firm is through increased sales. When allocating the funds, priority should be given to research and development projects.

Human Resource and Operation Strategies

• Employees management strategies
• Maintaining a pool of talented workforce
• Improving operational strategies

Managing employees is critical in achieving success at this firm. This process starts with hiring of the needed workforce. The human resource management should be keen on hiring highly skilled employees to participate in various activities in all the departments of this organization. Emphasis should be laid on the educational background of the applicants, their experience in the field applied for, determination, talents, and other special skills. Once hired, the management should make an effort to ensuring that it maintains its pool of talented workforce. Stressors at workplace or other factors that may make the employees consider moving to other companies should be eliminated. The management should consider using emerging technologies as a way of improving its operational activities in the production, finance, logistics, and marketing departments.

Human Resource and Operation Objectives

• To maintain a pool of dedicated employees
• To promote teamwork and innovation among employees
• To improve efficiency in operation

Employees play an important role in a firm’s quest to achieve its objectives in the market. It is important for the firm consider coming up with human resource objectives that will make the workforce more productive. The first objective based on the above analysis should be to reduce employee turnover rate. The firm should make an effort to reduce the rate at which it is losing its skilled workforce to other firms. This means that the firm will need to find a way of maintaining motivation in the firm. Another objective would be to promote teamwork and innovation among employees. The employees need to work as a team when addressing various tasks. The firm also needs to work on the efficiency of its production. At this stage, the objective should be to improve the efficiency of operations by using new technological tools.

Expected Results based on Financial Statements

• Having skilled workforce
• Improved production strategies
• Better marketing strategies
• Increased flow of income

This firm has managed to maintain a pool of highly talented workforce because of some of the strategies it has employed. This will eliminate high employee turnover rate and improve their productivity. The use of emerging technologies will make the production more efficient and less costly. Use of the social media will help improve the marketing strategies of this firm. It will be able to reach many global customers who do not have access to the local mass media. The use of corporate social responsibility will also improve the image of the firm in the market. These factors will help in improving sales and profitability of BlackBerry. Improved sales and profitability will in turn improve the inflow of income into the firm.

Recommended Procedures for Strategy Review and Evaluation

• Individual performance review
• Departmental performance review
• Use of external evaluators
• Conclusion

It is important to ensure that the set strategies are followed in order to achieve the desired objectives. For this reason, it is important to establish procedures for strategy review and evaluation that can be used to monitor the performance of individuals, departments and the entire firm.

• There should be a performance contract that will help in evaluation of the performance of individual employees in meeting personal targets by the end of every year.
• The management should develop a quality assurance unit for every department to determine their performance based on the objectives set for them.
• The firm should use external evaluators such as Ernst & Young to evaluate the performance of the departments and the firm on a yearly basis to help identify areas of weakness.

From the above analysis, it is clear that Blackberry has made an effort to ensure that its strategies are aligned with the market conditions. However, the analysis shows that there are some issues about communication and marketing procedures that should be addressed to achieve perfect alignment.