Critical Issues In Business Management


There are certain critical issues which affect the working environment of an enterprise. To achieve the predetermined objectives, it is required to meet the changes of business environment. In this report, critical issues have been mentioned in detail and their impact over business enterprises is also discussed. When a business enterprise starts its business operations, they need to analyse the market and its trend (Spenceley, 2012). In this report, critical issues faced by Instagram have been mentioned. Instagram is a social networking site or application which allows its users to share their memories through photos and videos with the world. Instagram has been created by Kevin Systrom and Mike Krieger. It was launched in October 2010 and earlier it was only available on iOS platform but later on it was also launched in Android in 2012. There are many certain critical issues which were faced by Instagram and its management and innovation team during business operation.


1.1 Analysis & discussion of the nature of innovation brought about by Instagram in the social media industry

Earlier, social media was limited up to sharing photos and updating thoughts. Now a days Users using social media increased their requirements. They require to experience a more realistic world inside their smartphones(Weiss, 2014). Social networking sites like Facebook and Twitter have become a bit complex for the users as it has many fake users But later on, in year 2010 Kevin Systrom and Mike Krieger launched their social networking app Instagram. It reduced the complexity of users to access their accounts. Users now can easily upload their photos as well as their videos also. There are certain special features in Instagram like a user can convert his public profile into a private profile which provides security to the users so that their private data which they want to share with their followers only, cannot get publicly accessed(Krutz and Vines, 2010). Social media allows its users to reach other users easily so that they can communicate and can easily share their views. In social media industry, there are many opportunities but there are some threats also. There are certain steps which are required to be taken by innovation team of Instagram :

Customer Requirement: Instagram has developed itself as the user friendly. A user requires fast and easy access for their accounts further they want to share their videos and photos. Instagram is a platform where the user can upload his photos and videos as well as they can make live video which streams over the Instagram application (Romero, 2014).

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Accurate services: Customer satisfaction is the main goal of the entity. If cited entity will provide accurate product and services to its customers then they will be satisfied. Instagram provides services which are required by its users and it keeps on updating such services so that customers can get better and updated services. Instagram has analysed the trend and provided its services to users in accordance with that trend. Further, Instagram has identified and sustained competitive advantage with other social networking sites.

Instagram is focused towards the innovation through the following points:

Technology Push: Technology push can be described as the part of a business strategy or a plan. In it, the research and development is made on technological aspects so that services with better technology can be provided to the customers or users (Trkman, 2010).

Market Pull: Market pull is different from the marketing push. Market pull can be considered as the requirement or need for new product and services. These requirements directly come from the market place. Need and requirements are simply identified through potential customers. Instagram has developed and made innovation in the services as per the requirement of the market place.

Types of innovation:

  • Product: Instagram has made innovation in its services. Management has made certain innovation so that users can experience something new in the social media (Malhotra and Temponi, 2010).
  • Process: Instagram has maintained a unique process to provide services to its users. Instagram gives equal response to its business profile users and public profile users. It has certain feedback process through which the bugs in any application can be removed easily.
  • Strategy : Instagram and its management has decided to provide better and unique services to its users hence for this purpose they had made certain strategies to abolish current trend of other social networking sites and to develop a new trend with uniqueness.

Identification and analysis of the main drivers that encouraged Instagram to innovate in this industry

There are certain factors which conduct the activities for innovation. Due to these factors or drivers, an entity is required to make innovation in products and services. Some of these drivers are mentioned below:

Financial pressure to reduce cost: The requirements to made innovation in the products and services may also generate to reduce cost so that margin can be more. Further, innovation can also be made to increase operational efficiency of the organization. If the efficiency of an enterprise increases then this will increase its productivity level. Hence, they can gain more in less efforts (Ajmal, Helo and Kekäle, 2010).

Increased level of competition: Due to high competition, cited entity is required to make innovation in its products. As in purely competitive environment, providing innovative products and services to the customers can be a method to capture the targeted market. Social media industry is highly competitive. Every other social media site is launching some unique and interesting features so Instagram has made some changes in its application to provide updated facility to its users. It has started many other features like Boomerang so that it can easily overtake its rivals (DeTienne, 2010).Demographic,

Social and Market changes: Demographic factors and social factors make a tremendous impact on the cited entity.Demographic factors like age group, ethnicity, religion and culture etc. needs to be handled very carefully. Users using application of Instagram, demands certain services which social media needs give hence they Instagram has made certain innovative steps to fulfil their requirements.

Rising customer expectations regarding quality: Customer’s  demands better quality in products irrelevance of the type of industry. Weather it is service industry or a manufacturing industry, customers requires products with quality. Hence, to deliver better quality to its users Instagram has made certain innovations in its products which consist of better quality (Yeoh and Koronios, 2010)

Critical evaluation of the factors which enabled and hindered Instagram to innovate within social media industry.

There are various factors which act as a hurdle for development and innovations. As Instagram needs to make innovations in its products hence they need to deal in a positive way with such factors to deliver its products and services to its users in an innovative way(Doz,  2011). Some of the factors which acts as an obstacle in development and innovation are mentioned below :

Individual Factors : Some of the individual factors which acts as a hurdle for innovation to be made by Instagram are as follows :

Trainning : Better training to make innovation can lead to successful delivery of services to the users. But if employees are not trained enough to make innovations in products and services then this will affect the innovations.

Job Rotation : Job rotation can be considered as movement of work force to do several different task at different point of time. In such technique employees can develop their working skills to perform different task. But if job rotation is not operated in an efficient way then it may create certain unwanted situations like burden or stress on employees (Oliveira and Martins, 2010). This may reduce innovation level of Instagram.

Project : In projects there are certain factors which may create some confusing situations which can lead to several conflicts in task of innovations. The employees who are responsible to do innovations requires to perform well. For the achievement of goals and targets of Instagram its innovation team needs to command in an effective and efficient way.

  • There are certain rule regarding management needs be followed properly so that organisational structure of Instagram can work efficiently and it can yield positive results.
  • Openness to new ideas is necessary to make new and unique changes in the existing products and services. If innovation team of Instagram community ignores ideas of others then it may result in such innovation which may not be considered as fruitful (Spenceley, 2012).

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Some factors which enables Innovation are mentioned below :

Organisation : There are some factors which are related with the organisational structure of Instagram which may create hurdle in innovatory steps. Such factors are mentioned below :

Instagram which may create hurdle in innovatory steps. Such factors are mentioned below :

  • Making survey for environmental scanning and after that analysis of such environmental factors thoroughly may result in better and fruitful innovations.
  • Communication across the boundaries of an entity enables better innovations. Through which an entity can get better ideas from various communities.
  • Identification of problems and analysing them to find solution for such problems. Enables Instagram to make better innovative steps which can cultivate successful outputs (Krutz and Vines, 2010).
  • Targeting customers for questioning can remove their problems which will ultimately results in better and innovative products.

There are some environmental factors which enables innovations. Instagram needs to manage such factors so as to manage innovations, these factors are mentioned below:

  • Level of competition in the business environment decides the quantum of innovations(Weiss, 2014).
  • Further the extent of engagement of customers and other stakeholder also decides the level of innovation.

Evaluation of the extent to which Instagram is a disruptive innovation in the industry

The disruptive innovation theory is a very powerful way to grow any enterprise through the methods of innovations. Instagram has applied disruptive innovation theory and its methods for growing its enterprise by making innovations in its products and services. There are certain disadvantages of this theory as methods and concepts of this theory is this theory changes the whole structure of competitive market. Instagram needs make several strategic approaches for different innovations(What Is Disruptive Innovation?. 2015.). An entity which operates in a market which usually shifts is not made for disruptive innovation theory(Romero, 2014). If Instagram and its management team fails to imply the results of several research and developments then it may not result in effective innovation. Theory of disruptive innovation was initially innovated by Clayton Christensen in his book “The Innovator's Dilemma”. Instagram has developed new category of customers or users through its innovations. The innovation team implement new technologies and used to harness such technological aspects. Contrasting of disruptive innovation along with sustaining innovation  has been done by Instagram (Trkman, 2010). As per the needs and requirements of users Instagram has installed some tools like Hashtag in its application so that users can connect their files or uploads with the uploads of others. There are two key elements of disruptive innovation which are mentioned below :

  • Improvement of incumbents : An incumbent results in betterment or innovation of products for a particular area. Usually they improve products in certain established areas.
  • Pace of sustaining innovations : An entity whose product and services are squarely maintained in current customer's needs and requirements, most probably will find the fact regarding what those customers are able to utilize in future. Instagram has maintained sustainability in the growth of its products and services. This allows disruptive innovation to Instagram in its various services(Malhotra and Temponi, 2010).


The above mentioned facts explains that why users can demands better services and products from the entities. Further this report also discuss certain critical issues in management of business enterprise. Through report it can concluded that how Instagram and its innovation team has reacted towards the demand of its users and it also includes types of changes and new features added by it in its application to bring innovation in its products and services.


  • Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development. Routledge.
  • Krutz, R.L and Vines, R.D., 2010. Cloud security: A comprehensive guide to secure cloud computing. Wiley Publishing.
  • Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.
  • Romero, C., 2014. Handbook of critical issues in goal programming. Elsevier.
  • Trkman, P., 2010. The critical success factors of business process management. International journal of information management. 30(2). pp.125-134.
  • Malhotra, R and Temponi, C., 2010. Critical decisions for ERP integration: Small business issues. International Journal of Information Management. 30(1). pp.28-37.
  • Ajmal, M., Helo, P and Kekäle, T., 2010. Critical factors for knowledge management in project business. Journal of knowledge management. 14(1). pp.156-168.
  • DeTienne, D.R., 2010. Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development. Journal of Business Venturing. 25(2). pp.203-215.
  • Yeoh, W and Koronios, A., 2010. Critical success factors for business intelligence systems. Journal of computer information systems. 50(3). pp.23-32.
  • Doz, Y., 2011. Qualitative research for international business. Journal of International Business Studies. 42(5). pp.582-590.
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