Business Capstone Project: 205948

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About Cases
Teaching cases are used for instructional purposes at business schools around the world and have been used in this manner for decades. However, what is fairly new is the use of teaching cases that are driven or supported by social media technologies, multimedia content and videos. We have moved beyond text based cases and embraced these types of technologies. The following paragraphs will help you understand a unique form of multimedia teaching case and how it can be used to improve your learning experience. Responses to the following questions guide this discussion:
 What is a multimedia case? These are not your typical Harvard style teaching cases. We offer a brief description of the format of a typical case.
 Why cases? Professors have been using cases to help students learn about both simple and complex issues for a long time. We realize this and provide a few reasons as to why they should continue to be used.
 What is unique about these multimedia cases? We have told you that the cases are different but how so? We suggest a few points of differentiation.
 What are the components of a good multimedia case analysis? While multimedia cases are different, many of the aspects of a good cases analysis remain the same. We list a few of these features in the following paragraphs.
 How might a multimedia case be analyzed? There is no one catch-all answer. But we offer some ideas as to how you might go about it.
 What are some good references about teaching cases? There are a lot of good articles available for students who want to learn more about teaching cases and their use in the classroom and beyond. We suggest a few of these articles.
What is a multimedia case?
A case is designed to teach students how to analyze a specific business or management problem faced in the real world by a specific company and decide on the best course of action in response.
Our multimedia cases are decision based and created within the context of an individual working for a specific company in a particular industry. Our case content is driven by video responses of interviewees and is laid out in a consistent manner. Tagged and transcribed video clip responses to video interview questions which are hosted and organized in the platform become a case. Our cases are simple in terms of their make-up. Each case takes the form of video clips of interviewees offering insight about a recent issue that they encountered and its importance or cause along with information about the interviewee, company and industry. Instructors have access to the interviewees suggested solutions which they can use in class when discussing the case as well as the different options considered. The task of the students is
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to put themselves in the position of the interviewee and create a response that addresses or resolves the issue.
Why cases?
In business rare are situations where there is only one correct answer or path forward. However, more often than not some answers are better than others. The challenge is to identify viable answers and justify a choice or choices among them. Cases studies offer this opportunity to students:
 Case studies help students think through challenges where the decision makers have incomplete information often in ambiguous and complex settings.
 Case studies give students a great opportunity to learn about a specific country, industry and organization by studying problems they may encounter in their careers.
 Case studies can be used to teach students how to devise rules for decision making that will allow them to tackle problems in a methodical and comprehensive fashion.
 Case studies give students a chance to learn by making mistakes in an environment where they can test ideas.
 Case studies help students learn how to determine what the real problem is.
What is unique about these multimedia cases?
Well the obvious answer is these cases do not take the form of a PDF (pdf) file with lots of text and a few charts or diagrams. But here are a few more points of differentiation.
 Insight from business owners, executives or managers forms the content of the cases not the words and ideas of professional case writers.
 The content of the cases takes the form of transcribed short video clips of business owners, executives or managers not pages of written text.
 We do not create video interviews to fit pre-written teaching cases.
 The cases are not self-contained. The answers will not be apparent from the insights found in the video clips. The solutions are not evident in the video clips or transcriptions offered to students. External search for solutions is needed using online information sources, social media, discussion boards or other strategies.
 By capturing insight about the interviewee, his or her company and the industry under consideration in the form of short transcribed video clips, the cases remain flexible in length or duration.
 By using video clips of the interviewees, the cases offer an added personal dimension that might not be evident form a simple text version of the case. Seeing and hearing an individual speak can introduce a human dimension into analysis sometimes inspiring students to sympathize with the interviewee and understand some of the emotions and thoughts that might surround a case.
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What are the components of a good multimedia case analysis?
As alluded to above, we did not invent the teaching case. As an analogy, what we are trying to do is build a better mousetrap. At the end of the day we do not want to throw out the best features of a traditional case. We simply want to alter its form and deliver it in a different manner. Many of the features of a good case analysis remain the same. Simplified, a good case analysis should include:
 A brief introduction that summarizes the issue and its importance
 A set of realistic alternatives
 A set of criteria that can be used to choose among the alternatives
 A solution to the issue derived from the alternatives
 A justification for the chosen solution as well as a justification for each alternative not chosen as a solution based on the selection criteria
 A conclusion that highlights the favoured solution
 Where needed, a series of logical steps to be followed to implement the chosen solution along with a discussion
 A discussion of the managerial and financial implications for the organization of adopting the chosen solution and (if needed) implementing it.
 Communication of these ideas using appropriate paper formatting, accurate spelling and grammar as well as clear and concise writing style.
 A list of references along with appropriate citing of references in the body of the report.
 As an appendix, a description or discussion of the process used by the students to create a solution
How might a multimedia case be analyzed?
When we consider how to analyze a multimedia teaching case, an important point to remember is that the answers or solutions will not be found among the video clips of the interviewee. Students will need to search out or think through solutions. A second important point is that these cases are created from the perspective of the interviewee who is normally an employee of an organization who was involved in resolving an important issue. He or she is the main actor in the case. So here are some thoughts about how an analysis might proceed.
1) Gain an initial understanding of what the case is about. Do this by watching the interviewee describe the issue that he or she is facing and its cause or why it is important.
2) Learn about the main actor in the case. Do this by perusing through the video clips where he or she discusses his or her career path, typical workday, role in the organization and leadership style.
3) Acquire an understanding of the context of the case. Do this by viewing the video clips that focus on the interviewee’s company and industry within which the company operates. From the point of view of the interviewee, these clips should provide information about what the
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organization does and how it is different, how it makes money, who its customers are and why they buy its products, how the organization is structured and whether any key event played a particularly important role in its success or struggles to date. The clips should also offer some insight about the industry within which the organization competes, how they compete, future challenges, and the role of government.
4) Learn more about the company and industry in a more formal manner. Do this visiting and exploring the company website and perusing news stories about the company and industry using a keyword driven news aggregator such as Google News http://news.google.com.au.
5) Revisit the video clips that describe the Issue and its Cause facing the interviewee. Formulate in your own words, the challenge facing the interviewee and why it is important.
NOTE: In multimedia cases the interviewee determines the focus of this style of case and not all the information needed to solve the case is provided. As a result the process of ‘search’ starts to become critical at this stage.
6) With this in mind, how would you know if a solution to the challenge presented is a good one? Put yourself in his or her shoes. On what basis would you assess it if you were the interviewee? You may want to consider identifying more than one criterion with each having two extremes of outcomes such as dangerous and safe or hot and cold or wet and dry. For each criterion which outcome would be least favourable and which would be most favourable? Which outcome might simply be acceptable? Where would you look for an answer? Is it online or in a library database? Is it part of an important theory or analytic framework? Who may have made decisions similar to this before?
The real issue is how best to frame a new array of skills that students have gained in an online environment independent of universities and bring those skills to … the life of ideas. (Doty, 2002: 648).
7) Once you have figured how to determine or judge whether one solution is better than another, it is time to look for different alternatives. Consider creating at least three and consider the context. Is it a small company with limited financial resource or is a large multinational corporation? Once again, where would you look for possible answers? Is an answer ‘out there online’ or is it a matter of throwing ideas off one another? Can one or more reasonable alternatives be created or discovered searching online or through a library? Can an answer be found using Google or Wikipedia or You Tube or a news aggregator? Or does it involve number crunching?
8) Once alternatives are created or discovered, the next important step is to choose a solution. The basis of the choice should be the criteria noted above. Explain why these criteria point you to one solution. Also explain why you did not choose the other alternatives.
9) Suggest a number of steps to help the company implement the solutions.
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References and Suggested Readings
Doty P. (2002). Portal: Fish, Fire, Fallacies: Approaches to Information Technology and Higher Education, Libraries and the Academy 2(4), 647–652.
Hammond, J.S. (2002). Learning by the Case Method, Cambridge, MA: Harvard Business Publishing, 9 – 376–241.
Leenders M.R., Mauffette-Launders, L.A., and J. Erskine (2004). Writing Cases 4th Ed. London: Ivey Publishing.
Lundberg C.C and C. Enz (1993). A framework for student case preparation, Case Research Journal. 13, Summer. http://www.swlearning.com/management/hitt/hitt_student/case_analysis_1.htm

This assignment challenges students to formulate a professional response to in-depth issues contained in a real-life Video Business Case available in a non-searchable YouTube video. Students will act as an independent professional business consultant reporting to senior managers of the company concerned. Students are expected to provide informed and robust advice to this business client. A sophisticated understanding of the critical aspects of this Video Business Case needs to be demonstrated. A succinct and high impact report is expected.
The report is expected to be <2,000 words, including an Executive Summary (<300 words) but excluding References and Appendices. A table of contents is unnecessary. Students need to display their correct name (underline Lastname), Curtin University ID number, Industry ID, tutor’s name, tutorial day, time and the total word count on the top right side of the cover page of the assignment submitted. Assignments exceeding the 2,000 word limit will be penalised 10% of the total mark for every 100 words over length. But using fewer words won’t necessarily result in a penalty.
To support assertions made about the case being critiqued refer to the Required Readings provided in the Unit Outline Program Calendar. Students are strongly advised to refer to a minimum of five relevant and credible sources. Extension Reading information is provided in Blackboard. Video Business Interviews (Background Questions and Video Business Case) are available through links in Blackboard.
Video Business Interviews will be available from the commencement of semester in Blackboard > Video Business Interviews. The Video Business Case to be critiqued will be announced by Seminar 03. Students are strongly encouraged to review the Background Questions segments for the Video Business Case selected for analysis a number of times.
An electronic copy of the assignment needs to be submitted by the Sunday following the week of Seminar 09 in Blackboard as an attachment, via the Turnitin link in Assessments > Video Business Case Report. Assignments may be resubmitted once to Turnitin to
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overwrite the initial ‘Originality Report’ to modify the ‘Similarity Index’ until the due date for submission.
An excessive Similarity Index score may indicate a breach of Curtin University Plagiarism Policy and Procedures. Failure to submit an assignment to Turnitin will result in marks for this assignment being withheld or the assessment failed. Turnitin’s electronic closing date is not the due date.
Students must ensure the following file naming convention is used:
Lastname_STUDENT ID_VBCR.docx
Good luck with the write up. Please email tutors if you have any further queries. The Video Business Case Report is due by the end of the week of Seminar 09.
Refer to the following for details on how to conceive, research and write a compelling Video Business Case Report.
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Individual Video Business Case Report
The Video Business Case will feature individual interviews describing an important issue faced by companies as well as a separate video clip describing its importance to the organisation. Students are tasked with making a response that addresses, or has the potential to assist with, the business challenges presented. An analysis of the short and long term matters involved may be useful.
There are number of things that could be written about in a Video Business Case Report. A good place to begin is by brainstorming everything known about the case within the organisation being analysed. Begin by stating what Issues appear to be of concern. Consider why a decision must be made? When must a decision be made? Who will be affected? Examine details about the company, watch the background videos and read important reports (especially the Annual Report), check the profitability figures, market share, gauge the organisations capacity to invest in Solutions to these Issues, describe the scope of their operations and state the industries the organisation operates in. Source and quote relevant statistical trends from geographical markets under consideration. Identify competitors with the same Issues and find out how they have resolved these Issues; then decide how this might be achieved for the organisation being investigated.
Issues─Causes─Alternatives─Solutions─Implications─Implementation
As should be evident from the Issues─Causes─Alternatives─Solutions─Implications─ Implementation framework, the analysis of the Video Business Case will become progressively more challenging. As such, fewer marks will be awarded for identifying the Issue and Causes and more will be allocated for analysis of the scope and fit of Alternatives and Implications to this particular business environment. Alternatives generated require Decision Criteria to be developed and choices made between competing solutions. This requires rationales to be considered for choosing or rejecting amongst the Alternatives identified. Credible information needs to be identified to support choices made amongst the available and viable choices.
Students are strongly advised to read and address the relevant Assessment Rubric closely before undertaking this assignment (Blackboard > Assessment > 2) Video Business Case Report).
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Suggested headings for the Video Business Case Report
Suggested headings A–F for the Video Business Case Report follow a logical progression. The problems inherent in this case often result from the failure of students to document what has been found. Therefore, when working through a case it is important to adopt the role of a consultant working for a company. A consultant is responsible for reviewing the problems identified in parts A and B of the case. This will lead to surfacing of the most important Alternatives for the company concerned.
EXECUTIVE SUMMARY (<300 words required)
Summarise all sections of the report using only the key information. Compose the Executive Summary after the assignment is complete.
A) Issue(s)
Provide a brief introduction that summarises the main Issue(s) of the case. Issues are the specific problems the business is facing and needs to address. Consider what visible symptoms of the problems identified need to be resolved?
B) Cause(s)
Identify the importance of the Cause(s) to the organisation concerned. What Caused these Issues to arise? The reasons underlying the Issues will be explicit in the Causes identified.
C) Alternatives
Develop a set of realistic Alternatives to address the Issues and Causes identified. A variety of options or different actions that a company could take to address the Issues and Causes need to be identified. Prevention (dealing with underlying Causes) is usually better than cure (fixing Issues that have arisen). Measuring each Alternative against the Decision Criteria will assist in clearly identifying and selecting the better options as well as less desirable options.
D) Decision Criteria
Decision Criteria are the indicators that need to be considered when evaluating and making a decision. Develop a set of Decision Criteria to choose from the Alternative courses of action. These criteria will be used to measure each Alternative available, and decide those to recommend as Solutions, and those to recommend against implementing. Generating expected benefits that would be achieved by resolving the Issues at hand is one way to create Selection Criteria. Conversely, the adverse effects of certain Selection Criteria need to be considered. The expected benefits and drawbacks should be grouped based on underlying themes inherent in the case. This is essentially a logical approach to weighting and ranking relevant data in order to make decisions.
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E) Recommended Solution(s)
Decide the Solution(s) to the Issues derived from the Alternatives based upon the Decision Criteria. For each competing Alternative, justify why different Solutions were chosen or rejected. Recommended Solutions should be the best of the Alternatives identified, as measured by the Decision Criteria. It should be clear to anyone reading the report why specific Alternatives are recommended as Solutions, and why others were rejected. A well written report will allow the company to compare different Alternatives as Solutions, should they disagree with the weightings of the various Decision Criteria.
F) Implementation and Implications
Provide realistic suggestions on how these Solutions could be implemented in the organisation concerned within the industry context being scrutinised. Provide the necessary details on the Implementation for the proposed Solutions. Include the managerial and financial implications for adopting the preferred Solutions. If the organisation implements the recommended Solutions, what might happen to the company? What are the Implications for adopting each of the Alternatives? What might be the Implications of not following the recommendations?
Ethical behaviour
Ethical issues should be referred to throughout the report. Also, ethical issues should be incorporated into the Decision Criteria. Ethical behaviour is an important concern for most aspects of business. When critiquing the case, students are challenged to be aware and sensitive to ethical issues that impact on all company stakeholders.
Locating evidence to support a position
The case is decision based and portrays an issue from the point of view of an individual working for a specific company in a particular industry. Students will need to resolve problems or issues. Learners need to explain the fundamental nature of the situations encountered within this context to deal with or reduce the effect on business of these problems. Resolutions to the challenges faced by these businesses are not simply contained in the video clips or transcriptions. Responses will need to be created using logical reasoning processes supported by a wide variety of information sources including Curtin Library Databases, Internet, discussion boards, social media, print media and so forth.
Company stakeholders
Sound business judgment needs to be based on evidence and consider all the relevant available information. Part of this process involves acknowledging and reconciling the views and rights of the relevant company stakeholders. This may invoke social and ethical legitimacy issues. Anticipating and responding to environmental changes is an indication of
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innovative problem solving. Anticipation of the intended and unintended consequences of decisions is important when judgments are made about difficult decisions.
Credible analysis
Be sure to identify all assumptions before making any judgments. Decisions need to be supported by sound logic and with evidence to support the conclusions reached. Finally, it is important to thoroughly consider the robustness of the overall analysis. Credible Solutions need to be considered in the context of organisational challenges. The consequences of implementing recommended actions need to be carefully considered.
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Refer to the following for developing a high quality Executive Summary.
CREATING AN EXECUTIVE SUMMARY FOR VIDEO BUSINESS CASE REPORT
 Read Writing an Executive Summary (http://www.griffith.edu.au/__data/assets/pdf_file/0003/320178/writing-an-executive-summary.pdf).
 Read Good and Poor Examples of Executive Summaries (http://unilearning.uow.edu.au/report/4bi1.html).
 Refer to CBS Communications Centre. Report Writing: Structure and Content. No 6, HIGH FLYER, Student Notes for Success (Blackboard > Assessment > 2) Video Business Case Report (20%)).
Students sometimes struggle to understand what is meant by “D) Decision Criteria” when critiquing the Video Business Case Report.
CREATING DECISION CRITERIA
For the purposes of the Video Business Case Report students are expected to develop and use Decision Criteria to justify the choices among the Alternative courses of action.
Decision Criteria for the Video Business Case Report can be defined in many ways, including:
 Guidelines by which to judge the Alternatives.
 How to decide which are the best Solutions among the Alternatives.
 How uncertainty and doubt are reduced so that a reasonable choice can be made among Alternatives.
 A standard, rule, or test on which a judgement or decision can be based.
 The basis for comparison among Alternatives.
 The ideal circumstances in terms of which something can be judged.
 Specific measures used to determine the best choice among Alternatives.
 A gauge, norm or yardstick.
Key Decision Criteria should be:
 Related to the Issues and Alternatives.
 Important to the organisation making the decision.
 Brief, preferably in point form.
 Measurable, at least to the point of comparison, such as Alternative X will reduce expenses more than Alternative Y.
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Common Qualitative and Quantitative Descriptors of Decision Criteria
Qualitative
Competitive advantage, customer satisfaction, employee morale, corporate image, ease of implementation, synergy, ethics, visibility, safety, visual appeal, obsolescence, cultural sensitivity, motivation, goodwill, environmental impact, flexibility, within present resources and capabilities, consistent with corporate strategy, successful, efficient, new, coherent.
Quantitative
profit, cost, return on investment, market share, capacity, delivery time, risk, cash flow, inventory turnover, productivity, staff turnover, quality, growth rate quantity.
For further ideas on developing Decision Criteria refer to Tillman, F.A. and D.T. Cassone (2012). Chapter 1.10 Developing Decision Criteria and Metrics. A Professional’s Guide to Decision Science and Problem Solving: Define the Objectives and Identify Metrics. FT Press (http://www.ftpress.com/articles/article.aspx?p=1807181&seqNum=10).
CORRECT ASSIGNMENT REFERENCING
Students should use Chicago referencing style when preparing assignments.
More information can be found on this style from Library web site: http://libguides.library.curtin.edu.au/referencing
Here is an example of how to reference Video Business Interviews which consists of the name of person being interviewed, year, title of video, YouTube video, length of video, full URL.
To use a Hockey Australia as an example:
Tonkin, Shane. 2015. Background Questions – Shane Tonkin; Commercial Partnerships Manager; Hockey Australia, YouTube video, 35:05. https://www.youtube.com/watch?v=SwOr4GzyI6w&feature=youtu.be

Decision Criteria for the Video Business Case Report can be defined in many ways, including:
 Guidelines by which to judge the Alternatives.
 How to decide which is the best solution among the Alternatives.
 How uncertainty and doubt are reduced so that a reasonable choice can be made among Alternatives.
 A standard, rule, or test on which a judgement or decision can be based.
 The basis for comparison among Alternatives.
 The ideal circumstances in terms of which something can be judged.
 Specific measures used to determine the best choice among Alternatives.
 A gauge, norm or yardstick.
Key Decision Criteria should be:
 Be related to the Issues and Alternatives.
 Important to the organisation making the decision.
 Brief, preferably in point form.
 Measurable, at least to the point of comparison, such as Alternative X will reduce expenses more than Alternative Y.
For the purposes of the Video Business Case Report students are expected to develop and use Decision Criteria to justify the choices among the Alternative courses of action.
Common Qualitative and Quantitative Descriptors of Decision Criteria
Qualitative: competitive advantage, customer satisfaction, employee morale, corporate image, ease of implementation, synergy, ethics, visibility, safety, visual appeal, obsolescence, cultural sensitivity, motivation, goodwill, environmental impact, flexibility, within present resources and capabilities, consistent with corporate strategy, successful, efficient, new, coherent.
Quantitative: profit, cost, return on investment, market share, capacity, delivery time, risk, cash flow, inventory turnover, productivity, staff turnover, quality, growth rate quantity.
For further ideas on developing Decision Criteria refer to Harris, Mark (2012), Criteria for Evaluating a Creative Solution, Virtual Salt. Available: http://virtualsalt.com/creative.htm. Access February 24, 2013.
As Outlined in the Business Capstone Unit Outline
C) Alternatives
Develop a set of realistic Alternatives to address the Issues and Causes identified.
D) Decision Criteria
As decision makers students will be expected to develop and use Decision Criteria to justify the choices among the alternative courses of action.
E) Recommended Solution(s)
Decide on Solution(s) to the Issues derived from the Alternatives. For each competing Alternative, justify why different Solution(s) were chosen or rejected. A preferred Solution(s) needs to be indicated.
F) Implementation and Implications
Provide realistic suggestions on how these Solution(s) could be implemented in the organisation concerned within the industry context being scrutinised. Include the managerial and financial implications for adopting the preferred Solution(s).
Suggested Headings C–F for the Video Business Case Report follow a logical order – D should not be done before C, E cannot be done before D, etc. Often, students will work through Decision Criteria in other assessments, decisions and choices they make within their life. However, the problem often lies in that they never write it down and often it is done subconsciously (tacit knowledge).
Therefore when working through a case it is important to emphasise that they are a consultant working for the company, so it is their job to review the problems from parts A and B and how these are important and will lead them to highlight the most important Alternatives for the company.
Tutorial exercise
Generating expected benefits that would be achieved by resolving the Issue at hand is one way to create selection criteria. The expected benefits are then grouped based on underlying themes.
Give students a few minutes to write down all the Decision Criteria that were important to them in choosing to come to Curtin University. Provoke students by asking why they chose Curtin over other local Universities or other locations, within Australia or outside Australia.
Conduct a discussion in pairs, teams, then with the whole class to compare and contrast how their Decision Criteria varied. Get students to rate and rank their Decision Criteria.
Students are likely to come up with some of the following Decision Criteria:
 Reputation
 Proximity to home
 Location
 Better educational opportunities
 Personal Safety
 Qualification recognition
 Friends attending same University
 Multicultural society
 Quality assurance
 Possibility of scholarships
 Research opportunities
 Good beaches
 Climate and weather
 Good chance of getting a good job
 Potential future Permanent Residency
 Cheap cars (relative to country–cheap to Singapore, expensive to USA)
Research findings into the factors influencing international students to study in Australia. Compare the student findings with what the research has found into the factors influencing international students to study in Australia (Mazzarol and Soutar, 2002, p 89)
 An institution’s reputation for quality.  An institution’s links or alliances with other institutions familiar to the student.  An institution’s reputation for having high-quality staff.  An institution’s alumni base and-word-of-mouth referral process.  The number of students enrolled at the institution.  Whether an institution is willing to recognise students’ qualifications
(Mazzarol, T.W., and G. N. Soutar. 2002. “Push-pull” factors influencing international student destination choice, International Journal of Education Management, 16(2): 82-90).
References
Tillman, F. A. and D. T. Cassone (2012). Chapter 1.10 Developing Decision Criteria and Metrics. A Professional’s Guide to Decision Science and Problem Solving: Define the Objectives and Identify Metrics. FT Press (ftpress.com/articles/article.aspx?p=1807181&seqNum=10).

Answer:

Executive Summary

Adobe Systems is a multinational software organization which is headquartered in California, United States. The company has focused on the creation of the software as well as multimedia products.  It has some of the most popular software known as Photoshop, Adobe Reader, PDF and Creative Suite[1]. The company is concerned regarding the falling market prices of the company and the reducing profitability. The market share of the company is 28.29 % in the year 2016. The annual revenue of the company is US$ 987 million in the year 2016[2].  This report would identify some of the major business issues of the company and the underlying causes of it. It would also identify the possible alternatives that can be taken by the company. The decisions criterion is explained along with the possible recommendations. This report would broaden the understanding of the business issues and the possible methods of tackling them.

Discussion

Issues at Adobe

            Adobe has faced several issues in the recent past. The company is immensely popular in the professional as well as corporate domain. Despite its popularity, the company has witnessed major issues. The brand is recognized on a global basis and it is a common name for both the students as well as the professionals. One of the major issues of the company is the declining market share. The percentage of the industry occupied by the total sales of the company over a particular time period is known as the market share[3]. The market share is a significant figure in understanding the consumer preference of a product. A low market share indicates less number of sales and “long term prospects” seem to get weaker. The low market share of the company can force the company to either exit from the industry or push itself hard to regain its share of the market[4]. A significant low market share indicates that there is a weak barrier to entry in the market[5]. This is likely to increase the potential competition for Adobe where it may have to compete with large number of companies providing similar products.

Adobe has witnessed saturated growth in the past 20 years[6]. It has shown little or no signs of business growth in the years. There has been a decrease in the revenue generation of the company. There has been subsequent decrease in the share value as well as share price of the company. The company has struggled to consolidate its market value. This has prevented the company from return the market value to the shareholders and this has caused losses to the company. The company has to undertake initiatives that improve its market share. The act of improving the market share is a risky affair. It is an expensive activity that can provoke counter actions from the primary competitors. There may also be limitations in the availability of the resources or the lack of market influences. It is also difficult to introduce market development capabilities and devise suitable products that would be profitable for the company[7]. There may also be financing issues, social issues or legal obstacles that the company may face when they aim for increasing their market share. There may be lack of attractive investment options. There may be absence of a suitable business strategy that would provide competitive advantage for the company. It is important for the company to devise suitable strategies that would increase the market performance of the company.

Consequences of low market share:

There are several consequences of low market share of the companies. There is a strong inter relation between profitability and market share. The low market share indicates that the company has low visibility in the market[8]. This leads to low profit generation for the company which causes significant decrease in the stock prices of the company. This also causes the company to create less appropriate business strategies which is essential for sustaining in the market. There is an increase in the possibility that the market gains would be enjoyed by a single organization. This organization is supposed to be a market leader and hence the possibility of Adobe in acquiring the customers would minimize. A company with low market share is not accepted by the consumers. The customers start to doubt the company regarding its credibility and the quality of their products. There may also be illegal market acquisition by illicit organizations that may hamper the prospects of the genuine companies.

Causes behind the problem at Adobe

As per the higher management at Adobe, the company is the issues of flat growth rate, limited market share and shareholders’ dissatisfaction is last 20 years. Suffering from these types of problems for 20 years has brought the company at a risky zone[9]. Currently, it is a major challenge for the company to keep the business sustainable in future years. The main causes behind these huge problems are as follows:

Imperfect market:    

According to the management of the company, it had a wide market previously. However, the main problem in that market was that the market included mostly the people, who are either refused to use the service of Adobe or the people could not afford the service of Adobe because of high price range. Due to this, the company failed to attract a large number of people towards its service, which affected the market share or financial performance of the company[10].

High rate of piracy:

The term piracy indicates the illegal use of any service[11]. It has been identified before that due to the high price range Adobe failed to attract many customers. At that time, many people started to use the service of Adobe illegally. These people used the service of Adobe without paying single penny to the company. Due to this, many people got the same benefit but they had not to bother about the price. This type of illegal use reached to such a level that reduced the customer base or market share of the company[12].

Improper customer handling:

There was another vital cause that brought the company into the risky zone. Previously, the company had a huge customer base; however, the strategy taken by the company to maintain the customer base was not so effective and due to that many existing customers stopped to use the service of Adobe. At the same time, the management of the company also failed to understand the motive of the customers, who wanted to use the free service[13].

High cost:

The cost level of the company was much high, due to which the company failed to earn more profit. The salaries of the employees was much high, which was the main reason behind the high cost of the company. Apart from that, the cost of providing the service to the customers was also very expensive[14]. Due to the high cost level, the return percentage of the company was low and due to that the shareholders of Adobe became dissatisfied. There was another reason behind the high cost level at Adobe and that is inefficiency in managing the activities within the organization.

Excessive number of shareholders:

Adobe has huge number of shareholders. Previously, the management of the company was highly focused on increasing the number of shareholders rather than reducing the cost level or enhancing the efficiency level. Due to this, the company failed to provide good amount of return to the shareholders as the profit percentage was limited. This again increased the shareholders’ dissatisfaction.

Failure to tap the potential opportunities:

The management of the company previously failed to grab or grow the potential opportunities in the market. The management noticed that the demand for the software service is increasing in the market; however, the company did not take any strong step to reduce the high rate of piracy[15]. If the company would have taken the proper strategy to reduce the piracy rate, then it could increase the number of real customers. At the same time, the management of Adobe was also informed that the customers are not able to pay high price to avail the software service but the management did not bothered to revise the price range[16]. If the company would have revised the price range and reduced it to some extent, then it could be possible to increase the number of customers.

Therefore, from the above discussion, it can be said that there were number of reasons that brought the company into the problematic situation. The management of the company had done several mistakes for long time, which needs to be solved as soon as possible.

Available alternatives to Adobe

In the above discussion, it has been identified that there were several causes behind the problems at Adobe. As per the current situation of Adobe, it is very important for the management of the company to take immediate steps to improve the situation. However, in order to improve the situation, the management needs to take proper strategies. There are some alternatives available that the management at Adobe can apply to improve the situations. These alternatives are as follows:

Updating the software – The management at Adobe can take a decision to provide updated software services to the customers and at the same time, the company needs to update the software constantly. It will help the company to satisfy the existing customers and grab the attention of the new or potential customers.

Reducing the price range – The management of Adobe can revise the price range of the service of the company. The main reason behind the high level of piracy was high price range. Therefore, if the company reduces the price range, then the people will try to use the original service. This would eventually imply profitable for the company.

Decision Criteria

It is important to formulate suitable decision criteria based on the above problems identified. It is important to create suitable strategies for the imperfect market by devising suitable policies. The high rate of piracy is a serious concern for the company and it must take appropriate action to deal with the issue. Most emphasis should be given to the piracy issue as it is one of the core reasons of falling market share of the company. The company should also decide the optimal handling of the customers so that there are maximum customer satisfaction rates. The existing customers should be handled carefully and the company products should be delivered to them which satisfy their preferences. The company must also take active initiatives in acquiring new customers. It is also important for the company to focus on the balance sheet in order to have more return on investments. There is need for decreasing the operational costs that would automatically increase the profit generation of the company. One of the primary concerns for the company is the increased number of shareholders and their rising dissatisfaction. It is important for the company to focus on this issue and devise suitable strategies to increase the satisfaction rate of the shareholders. Adobe should increasingly focus on the untapped market opportunities that would increase its profitability. Hence, it is important for Adobe to formulate suitable recommendations that would solve the current business problems. The next section would strive to provide some alternatives for the company. The company should try to curb the issue of “illegal copies” without engaging in unethical practices. It should not engage itself in “unfair competitive advantage” in order to stay ahead of its competitors.

Fig: Decision Criteria

Source: Created by author

Recommendations

The recommendations for future betterment of Adobe are as follows:

Strategy of once off payment – The management can apply the strategy of once off payment, which was implemented by the company for the Photoshop service. This type of service will help the company to attract the customers, who are not able to pay high amount of money for using the software service.

Online software service – The Company can start to provide the online service rather than asking the customers to download the same. This will help the company to protect its service from piracy. At the same time, this will also help the company to increase the number of real customers.

Implementation and Implications

The recommendations should be implemented in a cost effective manner. The IT department as well as all the employees of the organization should be involved in the implementation of updated version of the software. The accounts department should also be consulted as it involves the reduction of the price of the products. The marketing team should take active initiative in new promotion campaigns that highlight the changes. The implementation must also consider ethical issues. The company should try to curb the issue of “illegal copies” without engaging in unethical practices. It should not engage itself in “unfair competitive advantage” in order to stay ahead of its competitors.

References

“Adobe: Creative, Marketing And Document Management Solutions”. 2016. Adobe.Com. http://www.adobe.com/

Auerbach, Alan J., ed. Corporate takeovers: Causes and consequences. University of Chicago Press, 2013.

Bahar, Reuben. “Activation code system and method for preventing software piracy.” U.S. Patent 9,298,893, issued March 29, 2016.

Boons, Frank, and Florian Lüdeke-Freund. “Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.” Journal of Cleaner Production 45 (2013): 9-19.

Bourlès, Renaud, Gilbert Cette, Jimmy Lopez, Jacques Mairesse, and Giuseppe Nicoletti. “Do product market regulations in upstream sectors curb productivity growth? Panel data evidence for OECD countries.” Review of Economics and Statistics 95, no. 5 (2013): 1750-1768.

Elfenbein, Daniel W., Raymond Fisman, and Brian McManus. “Market structure, reputation, and the value of quality certification.” American Economic Journal: Microeconomics 7, no. 4 (2015): 83-108.

Fernandez, Pablo. “A definition of shareholder value creation.” Available at SSRN 268129 (2015).

Gomes, Nicolas Dias, Pedro André Cerqueira, and Luís Alçada Almeida. “A survey on software piracy empirical literature: Stylized facts and theory.”Information Economics and Policy 32 (2015): 29-37.

Guang, Sun, Fan Xiaoping, Fu Sha, Song Yingjie, and Luo Huifang. “Software Watermarking in the Cloud: Analysis and Rigorous Theoretic Treatment.” Journal of Software Engineering 9, no. 2 (2015): 410-418.

Gupta, Sunil, and Lauren Barley. “Reinventing Adobe.” (2014).

Khanna, Tarun, and Krishna Palepu. Winning in emerging markets: A road map for strategy and execution. Harvard Business Press, 2013.

Xu, Lingling, Fangguo Zhang, Willy Susilo, and Yamin Wen. “Solutions to the anti-piracy problem in oblivious transfer.” Journal of Computer and System Sciences 82, no. 3 (2016): 466-476.

[1] “Adobe: Creative, Marketing And Document Management Solutions”. 2016. Adobe.Com. http://www.adobe.com/

[2] “Adobe: Creative, Marketing And Document Management Solutions”. 2016. Adobe.Com. http://www.adobe.com/

[3] Fernandez, Pablo. “A definition of shareholder value creation.” Available at SSRN 268129 (2015).

[4] Khanna, Tarun, and Krishna Palepu. Winning in emerging markets: A road map for strategy and execution. Harvard Business Press, 2013.

[5] Bourlès, Renaud, Gilbert Cette, Jimmy Lopez, Jacques Mairesse, and Giuseppe Nicoletti. “Do product market regulations in upstream sectors curb productivity growth? Panel data evidence for OECD countries.” Review of Economics and Statistics 95, no. 5 (2013): 1750-1768.

[6] Gupta, Sunil, and Lauren Barley. “Reinventing Adobe.” (2014).

[7] Boons, Frank, and Florian Lüdeke-Freund. “Business models for sustainable innovation: state-of-the-art and steps towards a research agenda.” Journal of Cleaner Production 45 (2013): 9-19.

[8] Auerbach, Alan J., ed. Corporate takeovers: Causes and consequences. University of Chicago Press, 2013.

[9] “Adobe: Creative, Marketing And Document Management Solutions”. 2016. Adobe.Com. http://www.adobe.com/

[10] Guang, Sun, Fan Xiaoping, Fu Sha, Song Yingjie, and Luo Huifang. “Software Watermarking in the Cloud: Analysis and Rigorous Theoretic Treatment.” Journal of Software Engineering 9, no. 2 (2015): 410-418.

[11] Bahar, Reuben. “Activation code system and method for preventing software piracy.” U.S. Patent 9,298,893, issued March 29, 2016

[12] Elfenbein, Daniel W., Raymond Fisman, and Brian McManus. “Market structure, reputation, and the value of quality certification.” American Economic Journal: Microeconomics 7, no. 4 (2015): 83-108.

[13] “Adobe: Creative, Marketing And Document Management Solutions”. 2016. Adobe.Com. http://www.adobe.com/

[14] Elfenbein, Daniel W., Raymond Fisman, and Brian McManus. “Market structure, reputation, and the value of quality certification.” American Economic Journal: Microeconomics 7, no. 4 (2015): 83-108.

[15] Gomes, Nicolas Dias, Pedro André Cerqueira, and Luís Alçada Almeida. “A survey on software piracy empirical literature: Stylized facts and theory.”Information Economics and Policy 32 (2015): 29-37.

[16] Xu, Lingling, Fangguo Zhang, Willy Susilo, and Yamin Wen. “Solutions to the anti-piracy problem in oblivious transfer.” Journal of Computer and System Sciences 82, no. 3 (2016): 466-476.