Which are the three most Critical Issues of this case?
The critical issues of the Groupon Case are the situation that it has found itself during the onset of the year 2012 facing stiff competition from the other large giants in the industry. Mason is wondering what has happened to the company as he is reflecting the in the previous year how business was booming and it was easy for him to conduct business without mishap. He is a frustrated man seeing his company that he started around in the year 2003 profits dwindling and the stock prices falling tremendously. He is wondering what to do to rejuvenate the company back to the previous position it used to enjoy.
The other issues are the strategy Groupon will use to apply in order to compete with this large companies that are largely and have numerous resources for expansive purposes. Mason is trying to view the possibilities the company will use to remain profitable in the industry. This brings an in-depth thinking into the company financial books and other business units they can use in gaining advantage in the market. The strategy will also involve minimization of the expenses of the firm and increase the sales of service provision to the customers. Gaining customer's loyalty is a factor for success the company should consider.
The third factor is the worrying Mason is having of the clients substituting their services to their competitors in the case they offer the services that suite their needs. He is thinking how he will avoid such kind of situations and keep the customers liking their products on a continuous basis. Their share price has dwindled since the IPO in the year 2012 thus Mason is feeling sad on how this has affected the business. In addition, there has been an increase scrutiny of the firm affairs which is not a good indication for going concern basis.
Which are the three most relevant Lessons learned of this strategic management Business case?
The first lesson is the company learning on strategies that will enable it cope with the changes in the trends and technology in the market. Technology is changing rapidly in the world and companies like Groupon must learn to adapt with the changes as they will face the firm if they don't embrace new technologies. A company like Groupon would not find themselves in the situation if they could have adopted social Medias early enough and market their services. Flexibility in the market is important for a company success in the long term.
The second lesson is constant innovation and invention in the firm as this will resonate well with the customers. Customers will require new product or services on a regular basis and this will increase their urge of the services of the firm. Company like Groupon should apply the concept of creating new service strategies that will satisfy the customer's changes in taste. The value for changes in preference is important as this will force the clients to move for substitution process. Groupon should learn and use strategies that will make the customers loyal to their services.
The third lesson is the having a long-term plan that will ensure the company remain profitable into the foreseeable future. Putting management policies that will ensure the firm compete favorably in the market is critical for the beneficial of the firm. Firms should not sit comfortable and wait for the business to continue making profit in the long run is a notion that should be demystified and firms like Groupon must continue implementing strategies that will put the firm in a good position of making more profits in the future.
Which are the three most relevant Best Practices of this strategic management Business case?
The corporate governance practices are important in the managing of a business. Best practices of governing the firm is critical as implementing bad ones will see the regulator imposing restrictive measures that will create doubt in the firm. By the SEC putting more scrutiny in Groupon is an indication the company is not having good governing strategies and may be engaging in unethical practices like insider trading.
The operation management part is essential for the smooth running of the business. Management needs implement the best practices of operation that ensure the firm remains competitive in the market. The operations will involve the Groupon getting a talent and able team in the management to ensure driving of more sales for income realization
The third is the application of finance best practices. The finance team should have the skills of managing the resources available in the firm and create value with them in the long-term basis. They should apply the best practices of accounting and disclosure to avoid investigations by the authorities.
Identification and description in detail of key critical issues and problems.
The Groupon Company is aspiring to remain relevant in the market as they had for a long term enjoyed the smooth flow of income. They are trying coming to terms with the increased level of competition in the industry with the entry of new and large firms that has caused their profits to fall. The shares they issued in the SEC has fallen and investors are not subscribing due to Groupon making little profit as compared in the initial years. The company is facing turmoil of comping with competition and Mason is concerned on the strategies it's going to use in order to remain competitive in the industry. The firm profits has been reducing from the period of 2010 which is due to the changes in the dynamic operation of changes in industry. The firm management is worried of the future performance and sustainability of Groupon.
Identification of alternatives for each critical issue and strategic issue or problem.
The issues of competition will need the company device alternative like having a merging process that will see the company have more resources and boost the market share to remain competitive in the market. The rivalry in the market will be reduced with alternatives of provision of competitive services that will ensure Groupon neutralizes competition.
The management problems should be addressed by having a team that will ensure the affairs and the objectives of the firm are not subdued for personal gains. The board of management needs to reflect the true skills of managing the company that will propel it through the turbulence of completion and falling prices
The governance is critical as Groupon must comply with the various regulators of the industry and taxation systems. Ethical practices in governance should be an alternative that Groupon must instill from its management team in operations and accounts to avoid regular investigations that will tarnish the reputation of the firm.
Recommended course of action for each critical and strategic issue.
The course of action is creating actionable plan of teaching the staff on good governance practices that are acceptable in the industry. They will engage the staff on regular basis training and seminar that will keep them in touch with any new regulations to avoid being caught unaware.
The company should acquire latest technology that will ensure they cope with the current trends of marketing their services. These technologies will enable improve on their service delivery process that clients will like
They can embrace marketing in the social media that is currently used by the many that will see them have a wider market for their service provision. They have an alternative of improving their marketing strategy by employing more work force.
Implementation and execution plan for each key critical and strategic issue.
The first plan is putting the ensuring the staff go for regular training on a weekly and monthly basis.
Organization of team building that will see the employees' brain storm on regular to have them create new brilliant ideas
Implementing new technologies and controlling them through checking on the milestone that have achieved in the running affairs of the firm.
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