Purple Cloud's Success in Question Amid Economic Struggles - Essay Sample

Introduction

Purple cloud is a security company on the rise; however, it is facing challenges due to technological changes associated with large firms. The current economic environment of Purple cloud product is filled with competition from five other competitors. Even though the software security application from Purple cloud is the best, the competitors are selling their products at half the price of purple cloud products. The United States market is showing unfavorable current economic trends. The unstable economic trends are because of financial deregulation, and mitigating economic policies have occurred in previous years through a significant increase in mortgage loans. This paper analyses the current economic environment and how it will affect the Purple Cloud company.

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Unemployment has exponentially increased from 5.0% low several years ago, rising 1.5% in the last quarter. If there is no mitigation on unemployment, the increase in unemployment will increase to a wanting 8%. Unemployment leads to poverty due to a lack of income setting off financial and economic instability. In the united states, there is a strong likelihood of a decline in the mortgage industry. Financial and economic uncertainty will create a stop in the country`s overall consumption. There are signs of a technology bubble in the United States. It is caused by the selling stocks bought at prices that do not concur with actual financials. Cybersecurity stocks rapidly increase reflection on the preparedness of future cyber attacks.

Uncertainty of the stock market has created mixed trading shown by the market rise to near-record trading, then loosing up to 10%. Even after the indifference, the market cannot seem to approach equilibrium. The market is faced with high amounts of sell-off that could affect the housing market and technology organizations in it. The current market is volatile, and the ease of lending targets increases the loan`s interest rate. Inflation is running high in the market, and new interest rates are being established to fight it. Insecurity has created strife between the board members.

The rate of inflation posses a direct impact on daily living expenditure that consumers experience. The rise in unemployed people creates a challenge in adapting to the cost of living. Many people are likely to cut expenses on a particular product because of a lack of money to keep up with the charges. Recessionary periods create a decrease in economic activity causing a decline in cash flow in the business. Economic downturn forces the company to deal with the current implications without checking measures of achieving long term goals.

The recession period of 2007 to 2009 was initiated with approximately ten trillion-dollar housing run-up prices and caused 8.4 million losses in jobs creating a strain on the market. Also, it created low-interest rates that helped in the revitalization and maintenance of the economic comeback. High levels of unemployment impact the business negatively due to unemployed consumers having little to spend creating a decrease in sales. The projected increase in unemployment will cause economic instability. Financial instability will decrease consumer consumption affecting the security business especially of a small company such as Purple Cloud.

Globally, inter countries' politics are affecting the stocks in the market. Great Britain and France agree to exit the European Union. It will cause a significant ripple in the global economy. Spain, Greece, and Ireland are not sure of their economic outlook, while India and China are ramping up their savings by introducing skilled human resources. However, the continued political unrest in Africa and South America affects the global economy negatively. Meanwhile, the economic growth in Asia, Africa, and Europe is showing promising signs while the U.S economy is wanting. The future of Purple Cloud is optimistic because the revenue it receives, 20%comes from the international markets.

A rise in interest rates creates the business requirement to pay more to borrow money. It can cause consumers to reduce purchases as a form of avoiding increased rates. The volatility of the stock market has created the need for the United States Federal Reserve to revise the interest rates. The federal reserve manages inflation and maintains constant prices, they regulate and supervise nations bank, maintain financial market stability and provide banking services to other banks (Amadeo, 2006). They undertake their actions by creating monetary policy. The regulations of lending have become accessible, indicating an increase in the interest rate. Economic growth creates challenges in business when trying to keep up with the changing times. The burgeoning demand may be difficult to keep up with the market-leading to losing the competition to other competitors. The growth of the internet favors larger companies because they possessed better marketing budgets and proficient technical personnel. The acquisition of companies that provided promising security software technologies ensured Purple Cloud survival in the competitive market. The first potential resolution is adapting to survival demands by reinvesting in strategies that will help in remaining relevant in the competition. Tecnoti developed the procedure of acquiring companies with breakthrough security technologies.

The purchase of ABC tech developed a different technology from the pre-existing market models, which offered a practical solution and solved the issue of daily updates (Amontpetit:AWS, n.d.). The material changes in addressing the issue of Purple Cloud develops an adaptive implementation to obtain results from the goals set. Running the organization requires finance, which should be visibly laid out in the business plans indicating the operations and ideas to be implemented such as market research. The potential of an economic climate that is rapidly changing requires the formulation of strategies to guide Purple Cloud to an appropriate way forward

Strategic financing at Purple Cloud involves the numerous attempts to fund business processes and approach of investment that manage an organization. It is attached in the business highlighting an orderly response from the organization to future events in the organization. An alternative marketing plan involves various contingencies that need to be indicated in the project to ensure preparation for efficient response to an occurrence in the future (Curry-Brooks, Paglia, & Everett, 2017). Currently, the organisation`s health in terms of mortgage appears relatable, but long-term sustenance of the company requires organization returns and revenue. For the future, cash flow and shortfalls require assessment in decision making to determine the significant business purpose. For intellectual growth in business, the organization personnel need to be trained to accomplish the firm's ideas. The experts in making enhance the assigning of roles to achieve the best results in post-merger integration and transition acquisition procedure. The making of the plan should highlight the strategy for marketing and its contingencies, clearly indicating that the failure to market the product in cash. Mortgages are significant in the short term, but the revenue from it funds the business operation. Therefore, proper analysis of projected cash flows and potential shortcomings in the plan ensures the acknowledgment of the reason behind the business. Professional personnel in the organization is significant in the sense that the purpose of the firm is comfortable in ensuring completion as they are experts in the making.

Proper choice of employees in the assignment of roles ensures they perform to their limit in the transition process and smoothening. Revision of the purchasing strategies of the cloud security company should be handled with no limitation on financiers, professionalism and accountants with an understanding of the commercial implication of time. It will help the purple cloud security company to acknowledge the benefits accompanying the integration of opportunities into the business. The company should understand the methods employed for the success of the product.

Committed individuals need to be recruited by the company to deal with strategic purchasing and collaboration, while others deal with solving tasks in different areas. Also, a strong team of managers who are conversant with the security company will help in achieving the culture of the business surrounding the internal system of the company. The chosen personnel are required to fulfill the operation of the marketplace and direct customer decisions. In this way, they deal with dynamic directions in the environment. The mission, vision, and value focus on how the employees in the company interact, lacking the guidance to the people in case of no support on the statements. The goal statements help the staff to assist each other. However, the vision indicates the future of the organization.

The mission, vision, and core values of Purple Cloud exist to give quality protection products that will safeguard the online client security. They correlate in establishing that the purpose of the business is attainable by the consumers and stakeholders. The statements educate on the development approach that will assist the organization during the decision making on the investment and the interest. The mission and vision statement in the company show the side in which the management and staff view the progress of the business. Analysis of the growth of the company helps in attaining the goals of the company. Furthermore, the objectives and goals are used in evaluating the approaches success in the firm, thereby creating a platform; they indicate the progress of the business before general auditing.

The strategy for acquisition at Purple Cloud requires revision, having no limitation on sponsors, accountants, investors, and professionals. The processes entail understanding the significance of time in a commercial application. An economic result requires analysis in consideration with the macro environment under the company operation (Juneja, n.d.). For the purple cloud to realize the benefits generated from the incorporation of opportunities and business performance, they need to understand the tactics to use for successful transmission and merger. Commitment and dedication are essential values in an employee. It guides the employees in achieving the set goals of the company. The creation of a group of committed individuals who are involved in strategic acquisition and collaboration can be used in problem-solving of complex issues in the organization. A robust managerial team with an excellent understanding of the security company surrounding the internal and external framework of the company will help in upholding the business culture. The leadership and executive personnel in choice help in the realization of the marketplace operation and drive customer decisions creating easiness in dealing with dynamic environmental factors.

Understanding what the company stands for provides insights into the critical aspects for experiences, expectations, and philosophy. The values direct staff and management traits on self-esteem, future, and internal desires. Also, the organization's mission and vision are related to ensuring the customer and stakeholders achieve business ideals. The statements of the company show a mirror of management and staff perception of business growth and attaining company set goals. The models teach the strategies of development favoring organizations in decision making on the interest gained from the investment. It weighs the goals and objectives used to access the successful strategy in the organization providing the framework of bu...