Management Week 5Task 1

Chan Chun YeenSandy KongBelinda Ng

BlackBerry

• Lack of innovation• Emergence of Competitors- Apple, Samsung,

Google (Android)• Poor app ecosystem & operating system• Service outage (2009)• Structure of company- unorganized (dual-CEO

structure)

“The executives of RIM (Research In Motion) has decided to improve their Blackberry 10 mobile operating system and reboot innovation in their mobile hardware. The organisation aims for a high customer satisfaction that is on par with its biggest competitor, Apple and to regain market for its business users.”

Regain a 20% global smartphone market share by Q1 2015

Improve customer satisfaction ratings by 40% in Q4 2014

Task 2

(Unfortunately, Thorsten Heins, the CEO of BlackBerry is not convinced...)

Evidence

Management structure problems

“On January 22, Research In Motion announced that Mike Lazaridis and Jim Balsillie would step down as co-CEOs and co-chairmen of the board of directors. Lazaridis will now be vice chair of the board, and head up a new innovation committee. Balsillie will become a director. Their replacement as CEO is Thorsten Heins, formerly RIM’s chief operating officer for products and sales. Barbara Stymiest, who became a director in 2007, will now chair the board. Investors reacted negatively to the news, with RIM shares opening 5% lower on the NASDAQ on January 23.”

- Canadian Business, 2012

1. Dual-CEO structure causing product delays and issues 2. Conflict between management team & shareholders3. Departure of senior executives

Market Share of less than 5% (2013)

Weak app ecosystem & outdated operating system leads to poor customer satisfaction

Threats from external environment1. Lawsuits 2. Service ban/block

(NTP patent lawsuit against BlackBerry that cost more than $600million to settle)