Answer to Question #249950 in Management for Nhlaphu

Question

1.When Mxit first launched, they planned to be one of the biggest innovative organisation in the IM industry yet 10 years later the company shut down its operations. Following systematic steps on a control process(Setting performance standards, Measuring actual performance, Comparing actual performance with standards or goals, Analyzing deviations and Taking corrective action) and using practical examples , establish why did Mxit failed to achieve their planned objectives.(30 marks)

Answer 1

a) Not understanding the environment or focusing on results. South Africa IM industry is full of fierce competitors from WhatsApp and Facebook. In South Africa, WhatsApp had more than 10 million users, while Facebook had 13 million. Such a factor should have been put into consideration before launch.

b) Partial commitment, the management must be fully committed and fully understand how a strategic plan can improve their enterprise. Without this knowledge, it’s tough to stay committed to the process. Probably, Mxit's top management might not have been fully dedicated themselves to the program.

c) Lack of excellent personnel to execute their planned objectives. Employees are a key part of the achievement of any objective in an organization.

d)  Ignoring marketplace reality, facts, and assumptions. Before the launch, the company research and development team must have done an in-depth analysis about the operations of Facebook and other competitors in the market, the beliefs, and assumptions so that they can crack them one by one.

e) Unrealistic goals or lack of focus and resources. Strategic plans must be focused and include a manageable number of goals, objectives, and programs.