Business administration and management characterizes the process of leading and directing the systems within an organization by exhausting available resources extensively so as to achieve the objectives of the business operation (Cemal, and Keskin, 2003). It most of the time includes the conceptualization of business plans and monitoring its execution for assessment and evaluation of the efficiency and effectiveness of the business transactions. Strategic management is the process of identifying and enumerating the aims of the organizations in order to come up with sound business policies and plans from which the profit of the business organization will be fully maximized (Appelbaum, St. Pierre & Glavas, 1998).
The advances in technology and the fast modernization of the world, in general, opened new and very promising avenues of business opportunities not just in an individual’s locale but also abroad. A lot of business-minded individuals from different countries with different nationalities and cultural orientation have and continuously defied the geographic boundaries that exist between continents. This is evident in the growing number of internationally-operating business firms all over the world run by entrepreneurs of varying race and culture. The information man has successfully rebelled against intercontinental borders and the challenge that confronts him the most, deals with how to fit and blend in the new cultural environment in which their businesses are situated.
This paper presents critical analysis and discussions regarding the management strategies and options of the case of Moneygram in line with the money transfer market liberalization. As such, the business strategies of the company were examined along with the confounding variables that directly and indirectly affect the entire management and operations of the business enterprise.
Strengths. Along with the Money transfer market liberalization Moneygram was granted exclusive markets weighing up to 50 grams instead of the 100 grams allowance. This opened possibilities for a 5% increase in revenue of the company. Since the restructuring and the commercialization of the formerly state-owned business was made possible through legal changes on the overall structure of the services, the changes that transpired within the company are supported by the law. The company highlighted the improvements in the business aspect of the organization through modern technological infrastructure to modernize the company. These technologies make it possible for the business organization to function efficiently and serve the large customer-base who depends on the energy products and services of the general public as well as the commercial establishments in the region (Hunter, 2003). Extensive investments in automation and standardization of the management improved the quality of the services offered and the value of customers being served. Since the operations and projects initiated by the company are conducted and facilitated following the international standards, the products and services it offers are controlled and monitored with the aim to maintain quality and reliability through the certifications that the organization was able to earn.
Weaknesses. However, the Money transfer market liberalization resulted to increased number of competitors in the domestic as well as in the international Money transfer market as entry of new firms into some postal activities along with finance and telephony services emerged which are characterized with privatization and competition. The changes in technology and consumer needs allowed greater market segmentation in line with logistics and express developments. Moreover, the wide array of services that the company is engaged in makes the management of the whole enterprise cumbersome. The Press Distribution Money transfer subdivision of the company was reported to lag in terms of earnings and productivity compared to the other Money transfer subdivisions which include the Money transfer communication, direct marketing, value added services, and Money transfer international that illustrated contributions to increased operational efficiency and productivity of Moneygram.
Opportunities. With the Money transfer market liberalization, Moneygram was provided with opportunities for international Money transfer market penetration across the entire globe. This means increased number of customers for better profitability and revenues not just in the financial, express, and logistics market of the company but more security on its Money transfer division. The prospect of engaging and investing in various productive research initiatives and development endeavors will generate the company large return of investment. The company’s high asset value and economic worth may serve as a good compensation for development efforts of the organization to support and secure long-term plans and strategies. The success of these researches and development efforts will contribute to the business organization’s competitive advantage in the state energy industry. With the advances in technology, Moneygram can continue its investments on modernization to improve and broaden the available services as well as the customer satisfaction among the clientele through increased service quality and customer value. This could likely result to continuous increase of profit and revenues from the company’s Money transfer subdivisions and the needed improvement for the Press Subdivision to earn competitiveness for the benefit of the entire business operation.
Threats. Existence of new market competitors addresses the possibility of better operations strategy from other companies in the Money transfer industry as the major intimidation to Moneygram. This highly threatens the entire effectiveness of the operations utilized by the company in addressing the needs of their customers. As such, business relations among customers and suppliers demands strategic selection of business options. Moreover, the development efforts and research initiatives and projects that the company invest in order to maintain continuous operation and competitive position call for wise selection of business opportunities as well as skilled leadership and risk management skills among its decision-makers.
PEST Analysis. In relation to the liberalization of the Money transfer market across the globe, the political trends and characteristics illustrate a high probability of initiating the full implementation of the free market structure for the Money transfer market. This is in line with the successful liberalization of other goods and services internationally in order to eliminate economic frontiers between economies. The fulfillment of the Money transfer liberalization initiative is expected to result to increase of real potential competition among business firms involved in the Money transfer industry to experience (a) general decrease on the prices of the services offered, (b) greater quality of products and services variation, and (c) continuous innovation and development in product designs, services methods, as well as in production and distribution systems. As such the company could take advantage of its position as one of the leading most competitive Money transfer companies in the region to increase efficiency and productivity as well as customer satisfaction.
The economic situation has long been characterized with highly active and dynamic exchange of goods and services through increased participation of business firms in line with the globalization trends. Contract management and outsourcing strategies have been the result of the complex and sophisticated demands of the market and the objectives of business companies to offer excellent customer value through quality products and services. Generally, the international market consist competitive and innovative businesses that are interconnected through partnerships and agreements. In this regard, Moneygram can develop further its diversification initiatives particularly in establishing chains of operations. Labor could be outsourced to cut expenditures and create opportunities for service innovation to strengthen the quality of the services offered
The economic description of the region is reflective of the present socio-cultural trends that characterize its people. As active consumers of products and clients of services, the market was provided with the continuous supply of products and services that meets the complex needs and ever-changing requirements and specifications of the public. With the technological infrastructure that characterizes the operations of Moneygram, service quality and customer value and satisfaction can be increased. The services of the company should be in synch with the sophisticated lifestyle of the people through creating means of more efficient service delivery and innovative logistics.
These market demands include quality, efficiency, and customer satisfaction. This further resulted to trends in technological advancement particularly on production and delivery of products and services to meet customer requirements and to increase the productivity and revenue of the businesses. Technological advancements in the form of effective tracking and monitoring equipment of the goods and services being delivered, heightened security efforts, and the utilization of the electronic media to transact highly demanded services online should be considered by the company to adapt with the modern social setting it operates in and meet the needs of the customers.
For Moneygram, the management should be able to take means of identifying of the stakeholders, the priorities of the stakeholders; understanding of the stakeholders’ perspectives and incorporating the stakeholders’ perspectives to the future plans of the company (Smith, 2003). Moreover, the company should cultivate growing consumer markets to promote growth and development of the business organization. This will address the expansion possibilities of the organization to serve not only the locale consumers but also provide services to a larger customer base. As such international relations and the overall business practices and trends all over the world should be investigated so as to make sound decisions that will realize the goals of the company.
Furthermore, the company should continue cultivating community relations and environmental efforts to increase market visibility and improve brand strength. These will be realized through community programs that will advertise the humanitarian causes of the company in the form of public releases (Crook, Ketchen and Charles, 2003). Charity and scholarship programs are good examples for the management to promote and improve community relation. Advertising messages that translates the environmental concerns that the company shares to the public is likewise advisable to take into account and undertake.
Business Level Strategies. Service delivery is an interactive and dynamic process that from the consumer’s point of view is much more than a passive exchange of money for a particular service. Characteristics of services (e.g., intangibility, heterogeneity, simultaneity, and perishability) often require customers to be actively involved in helping to create the service value — either by serving themselves or by cooperating and often working collaboratively with service personnel. In high-contact systems customers can influence the time of demand, the exact nature of the service, and the quality of service (Chase, 1978; Lovelock & Young, 1979). If consumers somehow become better customers — that is, more knowledgeable, participative, or productive — the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin & Luker, 1990). In this regard, the company needs to strengthen relationship with suppliers and increase market share. This effort will result to parallel business interests that will contribute to the company as well as the suppliers’ business objectives (Henrik, 2003). Contract agreements and other business transactions should present advantages and benefits for both parties. Efficient delivery of products and services through premeditated and tactical supply chain management initiatives should be prioritized.
As the nature of financial management become more and more complex in this information and efficient communication era of international business, finance managers face a wide array of challenges, opportunities and options for him or her to enhance the investing and financing activities of the organization as well as the inherent risks and circumstances of the decisions that will be made. The challenge now for companies is to explore the options and take advantage of the opportunities while taking caution in managing the risks (Macmenamin, 1999). As such, the company needs to keep operational expenses within budget to be able to devote the necessary financial resources to both exploration and marketing activities of the company. Financial management decisions that will supply for the internal and external business operations of the corporation should be closely monitored to be able to control the flow of cash. Investing on profit-generating projects as well as training-specific programs for the human resources of the company will ensure extended success(McCarthy, 2003).
Moreover, Moneygram should enhance marketing campaigns and take advantage of company control over the international Money transfer industry competition. The company should initiate efforts to come up with sound advertising and promotional strategies that will bring the people closer. These will include projects and programs that will highlight the humanitarian mission of the company. The use of all available marketing and communications materials particularly the different forms of mass communication technologies will be necessary to realize these plans.
Lastly, there is a need to improve technological innovations to increase efficiency as well as quality of the service. This will include investments on machineries and equipment that will necessitate the increased and efficient operation of the business organization’s management system. Financial assistance on human resources particularly to knowledgeable and skilled individuals should be accorded in order to improve the overall business operation as well as the engineering, monitoring, and control aspects of the business.