Twitter, the popular micro-blogging site, follows the same model as most social media, earning revenue primarily by selling advertising on the site while offering the service free to users. Its ability to sell advertising is subject to its ability to attract users who will view and, advertisers hope, click on ads. At various times since the company was founded in 2006, it has faced serious declines in its stock value. In 2015, for example, stock value declined despite revenue growth of 74% and 111% in the company’s latest quarterly and annual results, respectively. Investors had reason to be skeptical of Twitter’s potential. At the time, its user base of 302 million users was much smaller than Facebook’s user base of 1.4 billion users. In addition, newcomers Instagram, founded in 2010, had experienced rapid growth, and its user base now rivaled that of Twitter. Another even more recent entrant to the market, Snapchat, founded in 2011, was gaining users much faster than Twitter. Twitter was losing ground to its competitors due to an inability to convey a clear value proposition to new users. Though hundreds of millions of users have signed up for accounts on the Twitter platform, many have not converted into active users. To combat these challenges, Twitter has made changes in its platform features: new features have included instant timelines, logged-out homepages, enhanced messaging, various timeline curation and filtering functionality including anti-harassment tools, and Facebook-style reaction emojis. Twitter has also made changes to its leadership. In July 2015, CEO Dick Costolo departed. Costolo had led the company through making a number of acquisitions and its initial public offering. The change at the top did not signal an injection of “new blood,” however, as founder and former CEO Jack Dorsey took the reins. After a continued rough patch in the mid-2010s, Twitter’s stock price recovered sharply in 2018 and substantially maintained that higher level for the next couple of years. According to the case study, which of the following are likely reasons Twitter changed its executive leadership? Check all that apply. a. Twitter faced increased competition from companies such as Facebook. b. Twitter needed to respond to the concerns of investors. c. Twitter is losing money over time. d. Twitter wanted a more streamlined decision-making process. If Twitter never changed its strategies or organizational design, which of the following would be most likely to occur? a. Twitter would continue on at the same rate of success as it had previously. b. Twitter would attract more and better job applicants. c. Twitter would become a less successful company. d. Twitter would increase its competitive advantage. Which of the following is the most important reason for Twitter to change in response to changes in its business environment? a. Change will help Twitter become more successful in the future. b. Change will integrate strategies from Twitter’s past and future CEOs. c. Change will prevent Twitter employees from becoming bored with their jobs. d. Change will ensure Twitter is not punished by federal or state governments.

Twitter, the popular micro-blogging site, follows the same model as most social media, earning revenue primarily by selling advertising on the site while offering the service free to users. Its ability to sell advertising is subject to its ability to attract users who will view and, advertisers hope, click on ads. At various times since the company was founded in 2006, it has faced serious declines in its stock value. In 2015, for example, stock value declined despite revenue growth of 74% and 111% in the company’s latest quarterly and annual results, respectively. Investors had reason to be skeptical of Twitter’s potential. At the time, its user base of 302 million users was much smaller than Facebook’s user base of 1.4 billion users. In addition, newcomers Instagram, founded in 2010, had experienced rapid growth, and its user base now rivaled that of Twitter. Another even more recent entrant to the market, Snapchat, founded in 2011, was gaining users much faster than Twitter. Twitter was losing ground to its competitors due to an inability to convey a clear value proposition to new users. Though hundreds of millions of users have signed up for accounts on the Twitter platform, many have not converted into active users. To combat these challenges, Twitter has made changes in its platform features: new features have included instant timelines, logged-out homepages, enhanced messaging, various timeline curation and filtering functionality including anti-harassment tools, and Facebook-style reaction emojis. Twitter has also made changes to its leadership. In July 2015, CEO Dick Costolo departed. Costolo had led the company through making a number of acquisitions and its initial public offering. The change at the top did not signal an injection of “new blood,” however, as founder and former CEO Jack Dorsey took the reins. After a continued rough patch in the mid-2010s, Twitter’s stock price recovered sharply in 2018 and substantially maintained that higher level for the next couple of years. According to the case study, which of the following are likely reasons Twitter changed its executive leadership? Check all that apply. a. Twitter faced increased competition from companies such as Facebook. b. Twitter needed to respond to the concerns of investors. c. Twitter is losing money over time. d. Twitter wanted a more streamlined decision-making process. If Twitter never changed its strategies or organizational design, which of the following would be most likely to occur? a. Twitter would continue on at the same rate of success as it had previously. b. Twitter would attract more and better job applicants. c. Twitter would become a less successful company. d. Twitter would increase its competitive advantage. Which of the following is the most important reason for Twitter to change in response to changes in its business environment? a. Change will help Twitter become more successful in the future. b. Change will integrate strategies from Twitter’s past and future CEOs. c. Change will prevent Twitter employees from becoming bored with their jobs. d. Change will ensure Twitter is not punished by federal or state governments.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

At various times since the company was founded in 2006, it has faced serious declines in its stock value. In 2015, for example, stock value declined despite revenue growth of 74% and 111% in the company’s latest quarterly and annual results, respectively. Investors had reason to be skeptical of Twitter’s potential. At the time, its user base of 302 million users was much smaller than Facebook’s user base of 1.4 billion users. In addition, newcomers Instagram, founded in 2010, had experienced rapid growth, and its user base now rivaled that of Twitter. Another even more recent entrant to the market, Snapchat, founded in 2011, was gaining users much faster than Twitter.

Twitter was losing ground to its competitors due to an inability to convey a clear value proposition to new users. Though hundreds of millions of users have signed up for accounts on the Twitter platform, many have not converted into active users. To combat these challenges, Twitter has made changes in its platform features: new features have included instant timelines, logged-out homepages, enhanced messaging, various timeline curation and filtering functionality including anti-harassment tools, and Facebook-style reaction emojis.

Twitter has also made changes to its leadership. In July 2015, CEO Dick Costolo departed. Costolo had led the company through making a number of acquisitions and its initial public offering. The change at the top did not signal an injection of “new blood,” however, as founder and former CEO Jack Dorsey took the reins. After a continued rough patch in the mid-2010s, Twitter’s stock price recovered sharply in 2018 and substantially maintained that higher level for the next couple of years.

According to the case study, which of the following are likely reasons Twitter changed its executive leadership? Check all that apply.

a. Twitter faced increased competition from companies such as Facebook.

b. Twitter needed to respond to the concerns of investors.

c. Twitter is losing money over time.

d. Twitter wanted a more streamlined decision-making process.

If Twitter never changed its strategies or organizational design, which of the following would be most likely to occur?

a. Twitter would continue on at the same rate of success as it had previously.

b. Twitter would attract more and better job applicants.

c. Twitter would become a less successful company.

d. Twitter would increase its competitive advantage.

Which of the following is the most important reason for Twitter to change in response to changes in its business environment?

a. Change will help Twitter become more successful in the future.