Symantec



Symantec Case 4-2Brittany Snook28 September 2017Problem Symantec designs, delivers, and supports a diversified line of software for information management, productivity, and software development for businesses. They began in March of 1982 and experienced rapid growth over the course of an eight-year period. They went from 30 to 316 employees, acquired other companies, created 9 new products, made $50 million in revenues, and increased to $1.05 per share. This rapid growth was beneficial for the company, however the company has not adjusted their internal communication and information flow to accommodate this growth (Goldratt). Symantec has a differentiation strategy. They must always be improving and innovating to maintain this strategy and stay ahead of their competition. An effective communication process is important to ensure they are receiving customers’ recommendations and problems to create solutions for them (Porter). Symantec has a Matrix structure. Their decisions are hierarchy based, so the top managers make the choices to be passed down to lower management and employees. The information moves from the top to bottom as well (Cash).Symantec has acquired a few other companies. While this helps to lower the competition in the market, it has caused the company to have locations in many different areas. Symantec does not believe in relocating the employees from these companies; therefore they have offices in Cupertino, CA, Novato, CA, Mountain View, CA, and Bedford, MA. CEO, Gordon Eubanks also did not believe in imposing a new culture on the product groups of these other companies. He believed that the dynamics of the team allowed them to create innovative products and should remain that way. Deciding to not relocate or make any organizational changes to to their new companies added to the communication and information flow difficulties Symantec faced.The problem Symantec is facing right now is internal communication and information flow problems. The communication problems are issues between different divisions and locations, unreliable email system, two different email systems, and unreliable phone systems. They also have different computers on the system. Some are IBM PCs and some are Macintosh’s. Industry Competitive AnalysisThreat of New Entrants- HighThe threat of new entrants in this market is high. Technology is advancing quickly and consistently. Technology is also growing in demand as more and more companies switch to using technology in their daily tasks. With this market continuing to grow in popularity, there is a high probability that new entrants will emerge.Threat of Substitutes- HighThe threat of substitutes is high. There are countless technology products on the market that can all accomplish similar tasks. They vary in price and functionality; however there is always another product out there that can do what a company needs it to do. When Symantec first started they diversified themselves from other companies by offering the development, deliver and support all from them for their products. This practice is becoming more and more common. Symantec must keep up with the competition and differentiate themselves in some way (Kalakota). Bargaining Power of Buyers- HighThe bargaining power of buyers is high. Symantec makes their money on customers buying their products. If customers no longer buy their products they will not be successful. This gives buyers a strong position of bargaining power. If Symantec is unable to gain a competitive advantage and maintain their customer service, customers may look elsewhere to fulfill their technology needs.Bargaining Power or Suppliers- LowThe bargaining power of suppliers is low. Symantec is the supplier of their own programs and services; therefore there is no supplier for them.Threat of Rivalry- HighThe threat of rivalry is high. Symantec has many competitors. Over the years they have purchased many other technology companies. This helps Symantec eliminate competition and acquire new innovative products. However, Symantec has not acquired every rival company in the market. Two major competitors the case mentions is Lotus and Ashton-Tate. Symantec must correct their internal communication and information flow problems in order to stay competitive with their rivals. StakeholdersSymantec employeesThe employees of Symantec will be affected by these communication and information flow problems daily. Whatever solution Symantec chooses will influence the productivity and efficiency of the employees. The management must listen to their employees to ensure they are making the best decision that will have a positive impact on the employees. The employees have the right express their opinions with how the company operates and to make recommendations to correct theses issues. They also have the right to the best procedures, policies, and systems used at the company to do their work to the best of their ability. Customers of SymantecThe customers of Symantec have the right to purchase the best product at the best price and receive this product and service on time. They also have the right to buy whatever product they see fit for their company. Better communication and information flows would help Symantec improve their customer service. With improved communication and data flow, the recommendations and problems that customers call in to report will be quicker reported to the development and support team for a solution.ShareholdersThe shareholders of Symantec have the right to receive a return on investment for the company. They also have the right to be informed of the decisions being made in the company, as it will affect their returns. Better communication and data flows in the company can increase stock prices. Alternative OptionsNo ActionIf Symantec chooses to not change anything about their current operations they would continue to have the internal communication issues and information flow problems. Symantec would continue to make money as they have been. Their current divisions are productive and innovative. They are creating successful products on time. However, in the current market the costs for customers to switch are low, there are few barriers to entry, and the threats of substitutes are high. If Symantec decides to change too many parts of their company, it could cause the innovation to slow down. If they do nothing, employees continue to innovate and work as they have. Shareholders still receive a return on investment as they have been. Customers receive the quality products they have been (Porter).Implement Standardized Technology ArchitectureIf Symantec chooses to implement standardized technology architecture it would involve many changes to how they are currently operating. They would need to switch to using CC mail for all employees. Switching to a reliable email system would improve communication across the organization. They would also need to switch to a reliable phone system. This phone system would need to be implemented across the entire organization and every location, just as the email system. Many of the business operations Symantec engages in are done over the phone, therefore a reliable phone system is important to their success. Another step would be to replace all cloned PCs and Macs with the same name brand PCs. The case states that when the network goes down all company operations are halted until the network is back up. Implementing the new PCs would prevent this from happening due to not having to be connected to the network to work. Employees would have an easier time communicating across the company and with customers. They could also be more productive with the new network. Making all these changes however will slow the company down for some time. Customers may experience more efficient service once the changes go into effect. Shareholders may receive a higher return on investment once the benefits of these changes begin to take effect (Cash). Centralize OperationsSymantec’s operations are currently dispersed all over the country. When Symantec acquired a new company their goal was to not relocate the employees or disturb their culture, to prevent ruining the dynamic that made their products successful. Centralizing the various operations of Symantec would involve moving all parts of the organization to one city. This could help improve communication across the organization because they would all be in the same place. However, the employees being required to move could be so angry about the move it could damage their dynamic. Employees could become more productive from being together or they could become more unproductive if they are angry or refuse to move and must hire new people to replace them. Customers may experience benefits from the increased communication at the company or they could experience decreased benefits from the movement causing confusion and frustration. The shareholders could have increased revenues if the move is taken well, they could have decreased revenues if it is not.DecisionWorks CitedCash. “Chapter 2 Introduction to Organizational Structure.” Central Concepts of Organizational Structure, pp. 24–36.Goldratt, Eliyahu M., and Jeff Cox. The Goal. HIghBridge, 2006.Kalakota, Ravi, and Marcia Robinson. e-Business 2.0 Roadmap for Success. Addison-Wesley, 2000.Morgan, Gareth. Images of organization. Sage Publications, 2014. ................
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