Summary of the Current Environment
With the rapid advancement of innovative technologies, cybersecurity has become an integral part of people’s lives throughout the whole world. In fact, the practice of protecting systems, networks, and programs from information disclosure contributes to the improvement of business continuity management. At the same time, in case the data of a particular organization is protected from cyber threats, including computer-assisted fraud, espionage, or vandalism, the customer satisfaction level is expected to be high (Humayun et al., 2020). Otherwise, organizations are likely to suffer from revenue loss, damage to brand reputation, and loss of intellectual property. Therefore, companies offering cybersecurity services are tremendously high in demand. In addition to taking appropriate measures to prevent digital threats, these organizations also respond to threats in seconds through endpoint telemetry and alert management (Islam & Aktheruzzaman, 2020). For instance, Purple Cloud is one of the main business leaders in terms of securing user experiences.
Due to the intention to continue to expand as a global organization present in numerous countries with a strong coordinated brand, Purple Cloud took into consideration cybersecurity. Marie Preston, the company’s CEO, has managed to garner the favor of the Board of Directors, who shared the same vision. As a result, it was decided to broaden the business strategy by developing new products and enhanced services to support those new products. Even though the cybersecurity market constantly grows, the idea to create a new product addressing the increasing number of global security breaches can be considered potentially successful. It can be explained by a vast number of cybercrimes that become violent with time (Buil-Gil et al., 2020). Thus, Purple Cloud has the opportunity to enter into global business markets through the introduction of new products and services related to cybersecurity.
Summary of the Management Opportunities Inferred from the Case
The process of launching a cybersecurity business begins with the basics. In order to benefit from the introduction of cybersecurity services, the company’s management team should ensure it has appropriate certifications, funding, structure, and business plan (Peinado et al., 2018). Even though degrees currently do not provide the real-world experience that customers usually need, it is essential to have a high level of theoretical knowledge in the areas of information technology and computer science. In fact, it can help improve communication with potential and existing clients, as well as increase the quality of provided services. Moreover, it is crucial to develop a business plan tailored to cybersecurity. This plan should include comprehensive information in the context of competitive market analysis, a budget plan, and a legal structure for the business.
From the perspective of management opportunities, there are a variety of interventions that can be implemented to improve the position of the company in the international market. For example, application and platform modernization is expected to provide long-term solutions to business challenges and goals, thereby improving the image of the company on the market (Eliyana et al., 2019). If high-quality processes and technologies are used on a regular basis, Purple Cloud is predicted to become one of the primary providers of consumer-focused security products in the world. Furthermore, the success of the organization is likely to be determined by expanding cyber-attack surface, threats to critical infrastructure, and the rise of automotive hacking. Accordingly, the high demand for cybersecurity services is the reason why Purple Cloud has the opportunity to achieve its objectives in a short period of time.
Review of at Least Two Viable Strategic Actions
Business development requires a complex approach that takes into account the current business environment, as well as potential risks and perspectives. In other words, this practice is based on the idea to improve knowledge in terms of the competitive landscape in the specific industry. In turn, to assess the effectiveness of implemented interventions, it is important to use key performance indicators (KPIs). When it comes to cybersecurity, the main KPIs are level of preparedness, security incidents, mean time to detect/resolve/contain. In order to develop a competitive business, the company’s management should also consider the significance of long-term customer relationships and customer feedback. Nevertheless, the development of Purple Cloud as a cybersecurity provider requires specific strategic actions that should be achievable and measurable.
The first considerable strategic action focused on the improvement of the overall performance of the company is the establishment of a cohesive organizational structure. This action can align to the strategy of implementation that relates to the development, use, and amalgamation of the structure as supported by the appropriate control of systems. In fact, once the appropriate organizational structure is built, the company is predicted to achieve its maximum performance. First, this type of organizational structure can be established when the firm’s management encourages sharing, creates a sense of ownership, and increases the level of employee engagement. Second, a cohesive organizational structure plays a vital role in the expansion of Purple Cloud to other countries, as it is associated with a healthy culture that is perceived as the main internal contributor to the development of any organization (Mutonyi et al., 2020). For instance, this style requires the company’s representatives to promote wellness, increase employee retention, allow for workday flexibility, and reduce the possibility of culture-related conflicts between workers.
The next significant strategic action that should be taken into consideration is concerned with the abandonment of a divisional structure that Purple Cloud currently displays. Indeed, it entails the grouping of each organizational function into a separate division that may correspond to either products or geographic locations (Cristóbal et al., 2018). At the present time, Purple Cloud serves its functions continuously updating and creating new customer-oriented products, which is why the company has the opportunity to reduce product development cycles and improve the quality of services in the core areas that are being emphasized. However, the divisional structure is likely to result in numerous difficulties for the whole organization, including conflicts between divisional heads, the duplicity of functions, and a selfish attitude. Accordingly, the divisional organizational structure should be replaced in order to ensure that the official reporting relationships that govern the workflow of the company result in the accomplishment of the company’s main goals.
It would be beneficial for the entire company to use the benefits of a matrix organizational structure that is tremendously effective in terms of distributing resources and employees across a range of operations. As a combination of several types of organizational structures, this approach provides the opportunity to facilitate a rapid management response to the changing market (Sytch et al., 2018). On the one hand, this type of organizational structure is expected to result in an increase in communication efficiency, improved employee motivation, and increased teamwork. On the other hand, this approach is widely known due to maximization in resource usage and increased employee professional development. As a result, Purple Cloud would be able to increase flexibility and opportunities with the purpose of making well-informed decisions. Nevertheless, to ensure this organizational structure leads to the benefits listed above, it is essential to take into account several recommendations. For example, it is crucial to identify priorities and goals for each project and make sure that management responsibilities are equally distributed among all employees.
In the context of the mission and vision statements of the company, they are tremendously essential, as they create the core identity of the company. In addition, they serve three essential functions, such as communication of the purpose of the company to stakeholders, the establishment of strategy development, and identification of the primary goals and objectives that should be achieved in a specific period of time. When it comes to Purple Cloud, its mission and vision should provide comprehensive information regarding its role, and core functions served on behalf of customers from different parts of the world. For instance, the company’s representatives should inform the target audience that Purple Cloud aims to reduce the vulnerability of the digital environment by implementing innovative cybersecurity interventions.
Research-Based Discussion of the Organizational Structures
As it was mentioned above, the divisional organizational structure has helped Purple Cloud become an extremely successful company under the circumstances when countries such as China, Japan, and India continue to threaten the position of the U.S. as a world leader. In fact, this kind of organizational structure has helped the firm improve its specialization and efficiency (Hammouchi et al., 2019). Considering that divisional organizational structure is beneficial for companies that produce a single product, Purple Cloud has managed to reach its main strategic objectives. Nevertheless, one of the primary objectives of this organization is to expand as a global organization present in numerous countries (Burton & Obel, 2018). This goal is predicted to be achieved by introducing additional cybersecurity services, which is why the divisional organizational model should be replaced with a more suitable approach. In this case, a matrix organizational structure can be considered the most effective approach to human resource management (Hsiao & Wu, 2020). Opposite to a hierarchical structure, a matrix organizational approach is based on the idea of reporting to more than one manager.
Research-Based Evaluation of the Business Analytics
It is essential to take into consideration business analytics that can be used for the improvement of potential strategic actions in order to lead to a competitive advantage. At the present time, business analytics is an integral part of business, as it helps develop a sustainable competitive advantage. For example, the most widely used business analytics are classic SWOT analysis and Porter’s five forces, although there are a variety of other techniques that can be used with the purpose of supporting a company’s unique business model (Power et al., 2018). From the perspective of Purple Cloud, it would be effective to consider SWOT analysis and Hax’s delta model that enables differentiation. On the one hand, SWOT analysis is one of the best tools in terms of evaluating a company’s competitive position. On the other hand, Hax’s delta model perceives customers as a priority in the middle of management (Hassan, 2019). In other words, this framework can be used by Purple Cloud’s representatives to implement effective strategies to the advantage of their clients.
Research-Based Evaluation of the Change Management Strategies
In order to achieve its main objectives, Purple Cloud should pay attention to change management strategies that provide direction for the strategic vision of the company. For example, offering incentives is the first change management activity that should be implemented in Purple Cloud on a regular basis (Rosenbaum et al., 2018). Secondly, it is crucial to redefine cultural values that have been the company’s focus for numerous years. In fact, this strategy is predicted to be effective when it comes to encouraging workers to become more receptive to new ways of working. Moreover, taking into account that Purple Cloud might face employee opposition due to the intention of the management team to expand the company to other countries, it is important to exercise authority. This change management strategy demonstrates a high level of effectiveness in the context of adhering to new standards (By, 2020). Finally, recruiting highly qualified frontline employees is the last strategy that is expected to help Purple Cloud adapt to new ways of running a business.
Discussion of the Legal and Ethical Implications of Strategic Actions
By implementing change management interventions, Purple Cloud is likely to face ethical and legal issues that should be addressed immediately to make the process of business development success on the international market. For instance, as for ethical issues, this organization might suffer from problems, such as self-gain, poor social responsibility, and negative impact on the environment (Fontrodona et al., 2018). These issues can be addressed by introducing a clear code of ethics that requires its employees to be accountable for their decisions. Furthermore, the main legal issues that can arise in the changing work environment are related to challenging employment laws, limiting regulations, and lawsuits (Sáiz & Castro, 2018). These issues can be managed by implementing privacy policies, protecting intellectual property, signing legally enforceable contracts, as well as keeping personal and business funds separate.
Research-Supported Recommendation and Supporting P/L Statement
Growing the business is a complex process that can either result in considerable success or failure. Therefore, before expanding business to other countries, Purple Cloud’s representatives should take into consideration several recommendations. Firstly, it is vital to determine the customer’s needs by personalizing services and nurture existing customers by maintaining communication with them via an e-newsletter (Kaur & Ramkumar, 2021). Furthermore, with the advancement of Internet technologies, it would be essential to use social media platforms with the purpose of promoting business to potential customers. At the same time, Internet sources offer the opportunity to identify trends that appeal to a certain target market. Lastly, it is recommended to attend networking events to build positive relationships with customers (Cabaj et al., 2018). As a result, if these recommendations are followed, Purple Cloud’s profit is expected to increase in the future, as shown in Table 1.
Table 1. Statement of operations
Discussion of Future Research That Could Be Conducted
Considering that Purple Cloud aims to expand to other countries by offering cybersecurity services, it is important to analyze trends in this area of business. Hence, the company’s representatives would be able to predict the development of the organization in the near future. In the next several years, the cybersecurity industry is expected to operate under the impact of automotive hacking, cloud vulnerability, and targeted ransomware (Rajasekharaiah et al., 2020). In addition, the combination of Al technology and machine learning has significantly changed the whole cybersecurity industry.
Conclusion
Therefore, Purple Cloud should take appropriate measures to develop AI-enabled threat detection systems to identify potential digitalization attacks. Simultaneously, insider threats are still expected to affect the activity of organizations in the field of cybersecurity, as human errors account for a large number of data breach cases. Accordingly, it is important to hire highly qualified employees in order to minimize the number of potential human errors.
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