Abstract
The management of business telecommunications is very important to the success of any organization. It significantly contributes to understanding among the consumers, investors, and management of the organization. This paper will elaborate the difference in the management of business telecommunication between large and small businesses. The companies that will be used in the illustration are Apple Inc. representing large businesses and Radio Flyer representing the small businesses. The difference in the management of the two organizations marks the difference in profit margins and market share. Different strategies are put in place for large organizations due to the high competition while the small companies use fewer strategies in communicating their information. Hinds and Kiesler (2001) argues that large companies are more transparent regarding their operations, unlike the small businesses enterprises.
Management of Business Telecommunications
Introduction
According to FitzGerald, Dennis and Durcikova (2012), the style of managing business ventures highly depends on the size and structure of the organization. Despite the size of the organization, proper steps must be taken to ensure the protection of the firm’s data communications through the use of modern computer networks. The increased transformation of the internet has led to the increased innovation of the businesses and compliance with the data telecommunication requirements. In choosing the type of technology to use in the institution, it is imperative for management to choose the best internet service, providers (Emanoil, Ramona & Lucia 2008). In this paper, we will look at the operation of Apple Inc. and radio Flyer. Apple Inc. will be representing the large organizations while radio Flyer will be representing the small and medium sized enterprises. Through the organizations, the paper will illustrate the difference in the operation of the businesses and their similarities.
Company 1: Apple Inc.
Apple Inc. is a renowned multinational technology company, established by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976. By the time of its inception, Apple Inc. was involved in the development and selling of personal computers. Its incorporation as Apple Computer, Inc. occurred in January the following year. However, its focus shifted in the year 2007 to mass production of consumer electronics. It focuses on electronics products which are highly diversified. It has 490 retail outlets in twenty countries. Additionally, it has online stores that are available in 39 countries. In the year 2011, it reported sales of U.S $16 billion in merchandise that also indicated that sound organizational strategies in the United States concerning its sales per unit area. In maintaining their sales, prioritizing the customers’ expectations is crucial. The strategy has enabled the enterprise to expand its operations globally (Johnson et al. 2012). Given its large size, it has various ways of communicating with the customers and all interested parties, since it operates in America, Europe, Japan, Greater China, and the rest of Asia pacific.
Financial Information
Apple Inc. trades its shares publicly and has a market capitalization of $752.0 billion. It has three types of shareholders that include mutual fund holders, individual stakeholders, and other institutions. Other institutions have the largest share of 31.26 percent, followed by mutual fund holders with 30.21 percent. Individual stakeholders have the least shares of 0.91 percent. The trading of shares publicly is one form of communication used by the organization. It communicates to the investors that the company is willing to raise funds or capital through the sale of shares. Through the listing of shares publicly, it also shows that the firm is transparent that increases investors’ confidence with the organization. The company returns to capital, and cash position has been increasing over the years, which are indicated by the release of their financial statements. Through the release of the financial statements to the public, it shows its progress through the years. It also indicates the growth rate of the business in the technology industry. The communication is vital since investors, consumers and employees are able to see company progress. In providing the information, investors and shareholders can analyze the information and make rational decisions. The graph below shows earnings of the institution for the years 2015 to 2016.
From this graph, it is evident that the net income of the company has been inconsistent for the first three-quarters of 2016 and increased in the last quarter of the year. The same is clear with revenue and profit margins of the business. While communicating their profits to the public, the company also stated that their total debt stood at $88 billion by the end of the year 2016. The clarification helps shareholders in understanding the position of the company. It also assists in making decisions regarding investments since the investors have all the information required in making their decisions.
Websites and ads
Apple Inc. operates in three main industries that include personal computers, entertainment media, and mobile payment systems. The diversification helps in maintaining the market share and customer loyalty. They have competitors in these industries ranging from Dell, Acer, Lenovo, Google, Samsung, and PayPal. In maintaining their competitive advantage, they communicate their sales and marketing in the following ways. In communicating the company products to the customers, Apple puts their information simple and clear on their websites. With the information given, it is easy to understand their products. In a simple and clear communication of information about their products through ads, consumers can make rational decisions on buying the products.
Apple Inc. uses billboard ads which are exceptionally simplified. The similarity of the ads makes it easier for the company to pass the relevant information to the audience. Mickalowski, Mickelson and Keltgen (2007) posit that through the ease of identification, customers remain loyal. The method of communicating their product details also leads to the increase in sales thereby increasing the profit of the company. Although the organization is popular globally, it utilizes the online platform and billboards in passing information to the public. The information helps the consumers in understanding the company operations and its products. The convenience that the products make has led to their popularity around the globe thereby leading to diversification and expansion of the business operations (Kulkarni, 2016). The strategies Apple Inc. uses to assist in customers trusting the information and learning of the product. The technique is also vital in increasing competitiveness of the company. In improving sales of the organization, they highly invest in sales and marketing. The communication strategies have been vital in improving the company position in the industry.
Company 2: Radio Flyer
The company is located in the United States and was founded in the year 1917 in Chicago, Illinois. During its formation in 1917, its owner Antonio Pasin was building and selling wooden toy wagons to area shops in Illinois. In 1997, his grandson took over management of the company and is currently the CERO. Currently, it specializes in the production of toys, scooters, tricycles, and bicycles. In the year 2015, the company was named the best small business to work in. Although the firm has not diversified its operations globally, it has several retail shops in the country. As a small business, its objective, and its products are available online. As the best small organization to work in, they ensure that their business telecommunication is perfect that allows understanding of the customers. Through proper management of its business telecommunications, they are also in a better position of utilizing the available opportunities (Lee 2009). The company major competitors include Mattle Inc., Hasbro Inc., and Pacific cycle Inc. Its quality production of the wooden toys has earned the institution a large market share in the American toy market. Identification of the major competitors is paramount to the organization. In identifying their competitors, it indicates that they are keen on maintaining the top position in the industry. It also shows a great focus of the organizational management and needs to diversify. As a small business, they show the ability to lead and continuously provide high-quality products for its customers.
Financial Information
The main retail outlets of the company sell its plastic wagons in the USA and Canada. From the sale of its products, the business earns an estimated $14.318 million annually. Over the years, the company revenue has been increasing that shows a significant growth. It also shows continuous innovation of the institution aimed at maintaining their market share as well as their leadership in the industry. However, the financial statements do not communicate further information of their company such as the value of its assets. Other items not available from the business are cash flows, balance sheet, profits and the income statement. Unavailability of these items illustrates unwillingness of the company to communicate to the public its worth. Various reasons can also be drawn from the non-disclosure of the business value. Most importantly, as a private or family business, they may be avoiding public interest in the affairs of the company. Investors are continuously fascinated by establishments fetching high profitability.
Given the unavailability of the profits, investors will assume that the organization is not transparent. For this reason, they will avoid investing with the company. In keeping investors away from the company, it is possible for the business to maintain the family business. Shareholders have the ability to control management of the firm. Non-disclosure of the profits is an indication that management of the organization is not willing to lay off their management style through the influence of the shareholders. Additionally, the value of the company attracts other competitive organizations to mergers and hostile takeovers. Due to the non-disclosure of the most important information, it is difficult for interested parties to value the company. From the inability to value the organization, it makes it difficult for mergers and hostile takeovers.
Competitors will always have the need and urge of understanding their competitors’ strategies and way of accomplishing their goals. Radio flyers have kept secret their formula of attaining their goals and objectives and keeping their customers satisfied. The tactic also offers the company a competitive edge against their rivals. The competitive advantage ensures that the company is always ahead of time and maintains the ability and strength to compete with other organizations in the industry. With competitive advantage, the institution is sure of maintaining its market share and customer loyalty. In terms of credit ratings, the business is projected to have a moderate to low risk of failure. There is also the assumption that the organization has a low estimated threat of delinquency. From the moderate to low risk of failure, it is evident that management of the institution has well laid down strategies that ensure high performance of the firm. The laid down strategies keeps the business focused on achieving its goals and objectives. It also shows cautiousness of the management of the firm in giving out their financial information unlike in public owned organizations where disclosure of financial information is paramount. On the other side, the company may be portraying fear of competition from other strong organizations. Fear from management can portray a weakness of the institution, which is a great threat.
Communication Systems
Online Channels
The emergence of the internet has had a great impact on how organizations run their operations. The change has led to change in organizational operations that have greatly affected their communication methods. Besides, many people are increasingly using the internet that makes it relevant for institutions to conduct their business online. Radio Flyer communicates its performance through websites about their products. The overreliance of an individual on individuals for information is an opportunity for organizations to invest in the opportunities. Radio flyer like other organizations has taken this initiative and is available online. With their increased sales, they have made use of the internet where they sell their products through Amazon.com. The platform offers the company a base to conduct their advertisement and also convince customers to join their company. Engagement of the customer in the online platform allows the company to increase their sales and profits. They also can increase their market share through online customers. Their presence in the online platform also earns the firm competitive advantage by keeping the organization relevant in the industry. The names of the director, CEO and assistant CEO are given, but their contacts are not available. The company email is not available. For this reason, it is impossible for customers to reach to the management of the firm.
The unavailability of the contact information is disastrous and a great weakness of the organization. Customers have no avenue of raising any concern to the management. The issue sets a negative image of the company where management is not concerned with affairs of its customers. Due to the feeling that the organization does not care about the customers, some clients may feel insecure trading with the organization. The action may lead to loss of some customers thereby reducing their market share. Competitors may also neutralize the competition by giving the consumers the care that they lack. The only way customers can interact with the marketing representatives is through the online cloud platform (Carr 2002). Through the site, the representatives inform consumers of their products and their value. They also take orders from the clients through the platform. The strategy is a great move for the company since they can freely interact with the consumers and market the organization.
Cloud Platform
When joining the cloud platform, the company had the intention of communicating with its customers and investors. Through the platform, consumers can give their opinion on the products and what they expect from the company. Cloud platform also offers a more secure connection that also protects information of the company. Through the platform, it is possible to identify areas of the company that needs attention (Kramer, Jenkins & Katz 2007). The idea will significantly improve the organization since they will be producing goods that meet consumer needs. They will also have the idea of consumer expectation thereby be in a position of satisfying the customers. Satisfaction of the clients is vital to the business since they will earn the loyalty of the customers. The loyalty of the clients will help in expanding the market share since they will be marketing the organization to other consumers.
The use of the online platform helps the organization in reaching many consumers who are always available online looking for products. Cloud sites have great traffic, and this allows interaction more efficient (Blogger, 2009). It is also an added advantage since many small businesses do not have the resources of performing online activities. For this reason, the company will maintain its competitive edge and increase its sales and profits.
Conclusion
In retrospect, the management of business telecommunication in large and small firms is unique. Large organizations have diversified operations compared to the small enterprises. For instance, Apple Inc. operates in four continents while Radio Flyer is mainly located in America. Although it has its retail outlets in Canada, it is less diversified. The communication of the company information is quite different compared to the Radio Flyer. For Apple Inc., they publicly state their profits and losses through the use of the financial statements. Shareholders and consumers are free to analyze the organization performance that portrays transparency of the firm and helps in making rational decisions. On the contrary, financial statements of Radio Flyer are not available to the public. The unavailability of the information indicates a lack of transparency of the business, and it is not available for public scrutiny. Additionally, large businesses list their shares publicly while small businesses do not list their shares. Large organizations also invest heavily in their sales and marketing of their products while small institutions do not have the financial power to invest in sales and marketing heavily. Besides, contact information of the large companies is easily accessible unlike that of small businesses. Due to the strategies applied by the large organizations, they will always have a large market share as compared to small companies.
Reference List
Blogger, Rack. 2009. “Radio Flyer Puts Little Red Wagon in the Rackspace Cloud. Rackspace Blog”. The Official Rackspace Blog. N.p., 2017. Web. 11 Apr. 2017.
Carr, H.H., 2002. The management of telecommunications: business solutions to business problems. McGraw-Hill, Inc.
Emanoil, M., Ramona, T. and Lucia, F. 2008. Efficient organizational communication: A key to success.
FitzGerald, J., Dennis, A., and Durcikova, A., 2012. Business data communications and networking. 11th ed. Hoboken, NJ: John Wiley & Sons
Hinds, P. and Kiesler, S. 2001. Communication across Boundaries: Work, Structure, and use of Communication Technologies in a Large Organization.
Johnson, K., Li, Y., Phan, H. and Singer, J. 2012. The Innovative Success that is Apple, Inc. Retrieved from: mds.marshall.edu/cgi/viewcontent.cgi?article=1420&context=etd
Kramer, J. W., Jenkins, B. and Katz, S. R. 2007. The role of the information and communications technology sector in expanding economic opportunity. World Resources Institute.
Kulkarni, C. 2016. 10 Things you need to Learn from Apple’s Marketing. You’ve never seen Apple engage in a price war, have you? Find out why. Entrepreneur September 8, 2016. Web. 11 Apr. 2017. entrepreneur.com/article/280692
Lee, I., 2009. Handbook of Research on Telecommunications Planning and Management for Business”, Volume I. Information Science Reference, Hershey, New York.
Mickalowski, K., Mickelson, M. and Keltgen, J. 2007. Apple’s iPhone Launch: A Case Study in Effective Marketing.
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