Defense Media Activity: Business Model Assessment

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The use of well-planned and practically sound business models is a valuable aspect of the success of activities in any market. The ability to apply adequate tools to interact with the target audience and implement approaches that allow generating profits characterize a company as a sustainable enterprise. As an assessment object, the organization called the Defense Media Activity (DMA) will be evaluated in the context of the business model promoted as the main development strategy, as well as its validity in the current conditions. In order to conduct objective analysis, relevant theoretical and behavioral aspects of the firm will be considered. Based on the available information on the peculiarities of the activities, specific features of the business will be reviewed by using concepts that reflect DMA’s structure, the design of its work, and other criteria. According to this information, recommendations will be given regarding opportunities to improve performance outcomes and the credibility of the business. The customer engagement approach can be an alternative to the client-oriented strategy promoted by DMA, and more attention should be paid to enhancing the available material base for strengthening budget assets and gaining market authority.

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Business Overview

DMA is an organization that has been operating in the telecommunications market for over 12 years. Its main area of ​​activity is to transmit the official information directly to the public from the Department of Defense. DMA is a trusted agency that is different from most other news providers. The Department of Defense entrusts it with preparing materials for broadcasts, editing content, and performing other operational tasks, which makes the organization a reliable and trusted participant in the telecommunications market.

The company’s activities are sufficiently extensive to offer hundreds of jobs to employees. At the same time, DMA works all over the world and interacts with a large number of interested parties to maintain a stable process of transferring data from the Department of Defense to the public. When talking about the relevance of DMA in the market, one can note that the information telecommunications industry has slightly reduced its influence and lost the authority of past years due to the rapid development of digital technologies. Social media accounts that many government agencies have, including the Department of Defense, allow users to receive the latest news directly. Nevertheless, the activity of DMA is in demand, and the analysis of the basic trends that the organization follows can help evaluate its business comprehensively.

Theoretical and Behavioral Trends in the Business Model

Since a business model is not only the general structure of a particular organization but also a strategy that allows it to develop in a specific environment, the assessment of the characteristic decisions and measures taken by DMA regarding this objective is a relevant task. Based on the company’s report, it is not the only news agency that interacts with the Department of Defense. Nevertheless, out of all 28 organizations that are involved in communication with this state structure, DMA has the most stable position. According to Park and Tran (2018), those customers who are satisfied with their business partners are not inclined to use the services of other competing organizations often due to the need to avoid disagreements and misunderstandings. As a result, DMA’s activities comply with all the requirements that the Department of Defense makes for news agencies and achieves those results that are consistent with the goals of the press service of the state board. This behavioral aspect of adapting to each other is favorable for both interested parties and enhances the success of DMA, the company that is a key and credible partner in its industry.

In relation to a theoretical justification for DMA’s success and the interpretation of the organization’s activities from the perspective of specific development models, the chosen path of customer-oriented services allows the company to maintain a high market position and gain trust among the target audience. Wirtz and Daiser (2018) cite the case study of Google, the corporation that has a multi-million target audience and is one of the largest service providers in its sector. The authors note that Google executives choose customer-oriented tactics and implement business development programs that influence important social, environmental, and other areas that are significant publicly (Wirtz & Daiser, 2018). A similar principle of DMA’s work explains the organization’s stable position in its market segment: a client-oriented policy of the company enables it to address the needs of the target audience, in particular, to receive reliable information timely, and act as an intermediary between the Department of Defense and the public. Such a theoretical background explains the specifics of the organization’s activities and its main development trends.

Maintaining expected behavior is a business aspect that allows DMA to avoid losing confidence in its key media partner. Since the Department of Defense is a state board and is not involved in financial and other development models, the reputation of its partners is the criterion that is important for promoting sustainable and long-term communication. Park and Tran (2018) argue that expected behavior is one of the nuances of a client-oriented policy, and this approach has been successfully applied by DMA. While working in the telecommunications market, the company has proven that it is not prone to drastic changes in development strategies or management structure. This, in turn, strengthens the Department of Defense’s confidence in the organization and helps maintain long-term and fruitful cooperation. Thus, customer focus and the stability of its business strategy are the key behavioral aspects of DMA’s business model, and the existing theoretical background confirms the value of following such a strategy in maintaining partnerships with the Department of Defense.

Theoretical Background: Business Analysis

When analyzing the business of DMA from the perspective of specific practical approaches and strategies, one should pay attention to the key aspects of development, in particular, a pattern, design, and operational frame. Also, the organization’s activities can be viewed through a metaphor that reflects the peculiarities of the company’s work and emphasizes the key features and nuances of activities. The business environment in which DMA operates has an impact on the strategic directions of development, and partnership with the Department of Defense is an additional driver in support of specific solutions. The detailed analysis of the entire structure of work can help identify the basic features of the organization and draw conclusions regarding those areas that deserve improvement.

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Metaphor as an Organizational Image

Prospects for the development of any business, including its organizational features and areas of activity, can be evaluated from the perspective of metaphors. In the context of DMA’s work, Morgan’s evaluative background may be applied, which, as Örtenblad, Putnam, and Trehan (2016) state, includes nine metaphors. For the organization in question, the machine metaphor is the most appropriate due to the nature of the business that DMA promotes. The validity of this assumption lies in the specifics of the company that is involved in the interaction with a reputable government board. Since DMA is an intermediary in transmitting news from the Department of Defense, it cannot establish a flexible system of work and is forced to follow a clear data exchange algorithm. Such a mechanical structure, as Örtenblad et al. (2016) note, suggests efficiency but excludes dynamic growth and adaptability to market trends. Therefore, the comparison with the machine operating principle defines DMA as an inflexible and narrow-minded organization.

Pattern and Design

DMA’s pattern is an approach that the organization promotes as a mechanism for communication with stakeholders. In accordance with the specifics of activities, this parameter of the company may be defined as a customer-oriented policy, which requires strict fulfillment of direct obligations to meet the needs of the target audience. This aspect is the one that deserves improvement since the lack of an opportunity to offer other services and interact with customers in different formats narrows the prospects for business development. The design includes a system that reflects the nature of operating activities, and in DMA, this indicator is also straightforward and simple. Close interaction with the Department of Defense excludes any dynamics and innovations in the mode of work. Therefore, all the operations that the company conducts are stable and, at the same time, routine, which may be an incentive to optimize the system of data exchange and offer more advanced communication algorithms.

Frame Model

DMA’s business model that is analyzed by using pattern and design characteristics may be complemented by a specific frame. Bolman and Deal (2017) offer several basic approaches, and, according to the specifics of the organization in question and its interaction with stakeholders, a structural frame fits into the development strategy. Since DMA works stably and does not introduce any innovative solutions into the operational process, this concept describes the news agency as accurately as possible. The company is a key provider of news received from the Department of Defense, and its chosen style of activity is reliable, although it does not allow changes and reorganizing certain aspects of the business.

Areas to Improve

Based on an analysis of DMA’s business from the perspective of the aforementioned criteria, one can assume that its pattern and design may require improvement due to limited potential and insignificant growth prospects. In particular, a customer-oriented approach that implies satisfying the needs of the target audience at all costs may be an outdated practice that does not allow business transformation, and the conditions of clear and stable communication with the Department of Defense can be the reason for this. In addition to the status of a news provider, DMA is not involved in any other areas of work. Therefore, restructuring of the material base for possible participation in other media projects may be the outcome of reorganization measures.

Evaluation of the Business Model

Based on the analysis of DMA’s business, one can conclude that the company is a stable but inflexible organization for which updating a working mode and introducing innovations are challenging prospects. Since this news agency is involved in the field of telecommunications, the social factor is a significant criterion that affects the activity process. In their case study, André, Cho, and Laine (2018) note that the enterprise they review depends on the environment in which it operates, and external factors are significant determinants of performance outcomes. In the case of DMA, the social aspect of work is associated with a customer-oriented approach and the importance of engaging the target audience by providing data that can satisfy the needs of the public. The proposed Morgan’s machine metaphor proves that the company is firmly attached to its line of business, and any changes in the operating mode may affect the rating of the agency negatively. Therefore, in the context of growth and the implementation of new approaches to the organization of work, DMA has a low potential, although its stable algorithm of interaction with interested parties is a valuable advantage.

Regarding the design of DMA’s business model, in particular, the structure, adherence to a functional strategy of clear interaction with a key partner and acting as an intermediary for transferring data is the result of the aforementioned behavioral pattern. However, when discussing the success of this approach, one should take into account further prospects. Weissbrod and Bocken (2017), who analyze sustainability as a crucial aspect of businesses, argue that any measures taken should be aimed at increasing and sustaining the credibility of an organization in a particular market. This statement applies to any enterprise; however, in the case of DMA, no significant changes take place, with the exception of linear development, which implies an increase in staffing and the expansion of scope. This model is limited by the frames that may be overcome only if the reorganization of financial, partnership, and other activities is conducted. At the same time, the specifics of DMA’s business do not allow the company to restructure its operational processes, which is a limitation and a deterrent that cannot be eliminated due to the threat of losing the status of a temporary leader in its field.

The values ​​of the business in question explain strict adherence to the chosen model and emphasize the interest of a key partner, in particular, the Department of Defense, in cooperation with DMA. The very activity that the organization conducts carries not only social but also political significance. Justifying the value of the business is an action that is associated with espoused values, which are beliefs in the relevance and benefits of the work performed. Since DMA’s reports confirm that in the field of the services it provides, it is the most reputable agency, the chosen activity style corresponds with the set objectives. Therefore, from the standpoint of validity, the company fulfills its obligations and justifies the trust of interested parties.

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While taking into account the specifics of DMA’s business model, the nature of the work performed cannot be changed as soon as possible. The organization has no problems with business sustainability, which, according to Weissbrod and Bocken (2017), is found in companies with a vague development model. Despite the linearity of work and the absence of significant changes, DMA has the potential to expand its capabilities. Based on the above analysis, individual recommendations can be made regarding the existing omissions and gaps to address.

Recommendations for Improvements

The evaluation of the business model under consideration makes it possible to identify its weaknesses and make recommendations in relation to increasing the company’s credibility and strengthening its interaction with various stakeholders. The aforementioned customer-oriented approach is valuable in the context of meeting the needs of the target audience. However, this practice does not allow DMA to apply new approaches to business development due to limited and unambiguous responsibilities. The interaction with the Department of Defense is the main area of ​​work, but in case of opening new perspectives, for instance, creating unique digital content, more opportunities can be achieved. According to Nazal and Megdadi (2019), the customer engagement approach may be a more favorable development strategy than the customer-oriented practice if business expansion is planned. In the case of DMA, and a number of valuable implications can be realized. If cooperation with the Department of Defense is suspended, DMA can continue working in the related industry. Also, unique content may be developed, which can attract a large audience and, consequently, profits. Finally, creating an individual product is a favorable background for innovation, and modern business methods can be mastered.

As another recommendation, increasing the material base is a potentially valuable objective. Capital growth is a security measure that is relevant in a dynamic telecommunications market. Leadership in its segment may be temporary, and if the Department of Defense interrupts cooperation with DMA, this news agency will have a reliable background for the reorganization of its business strategy. As Kölsch, Herder, Zimmermann, and Aurich (2017) note, the aforementioned customer engagement practice intersects with the prospect of strengthening the material base, and the practice of increasing budget assets is a potential guarantee of expanding the sphere of influence. In addition, a large capital obtained due to the work of the company in other areas can make it possible to attract new reliable partners, which is also a significant prospect.

While taking into account the aforementioned recommendations, introducing the new ways of interacting with stakeholders and enhancing the individual material base are of high importance as business model security drivers. Participation in a wider range of activities may have a positive effect on the company’s credibility in the telecommunications market. Moreover, increasing the scope of intervention is the key to the growth of employees’ professionalism and a condition for developing managerial principles, which is essential due to a large number of staff. Therefore, these recommendations are of importance as safety drivers and approaches that increase the stability of the business in a dynamic and unstable business telecommunications environment.

Conclusion

The assessment of DMA’s business model confirms that some changes in the organizational activities of the company, in particular, the transition to a customer engagement approach and strengthening its individual material base, are valuable objectives in the context of enhancing the safety and sustainability of the business as crucial development perspectives. The analysis of such structural components of the organization’s strategy as its pattern, design, and frame makes it possible to identify weaknesses and areas for intervention. The company’s current leadership in the services that it provides may be lost due to the linearity of the business and the lack of new opportunities or activities. Attracting new opportunities for development contributes to creating an enabling environment for the development and enhancement of DMA’s authority in the telecommunications market.

References

André, K., Cho, C. H., & Laine, M. (2018). Reference points for measuring social performance: Case study of a social business venture. Journal of Business Venturing, 33(5), 660-678. Web.

Bolman, L., & Deal, T. (2017). Reframing organizations artistry, choice and leadership (6th ed.). Hoboken, NJ: Jossey-Bass.

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Kölsch, P., Herder, C. F., Zimmermann, V., & Aurich, J. C. (2017). A novel concept for the development of availability-oriented business models. Procedia CIRP, 64, 340-344. Web.

Nazal, A., & Megdadi, Y. (2019). The role of customer relationship management strategies on developing customer services of Jordanian telecommunication companies. Journal of Marketing Management, 7(2), 77-85. Web.

Örtenblad, A., Putnam, L. L., & Trehan, K. (2016). Beyond Morgan’s eight metaphors: Adding to and developing organization theory. Human Relations, 69(4), 875-889. Web.

Park, J. H., & Tran, T. B. H. (2018). Internal marketing, employee customer‐oriented behaviors, and customer behavioral responses. Psychology & Marketing, 35(6), 412-426. Web.

Weissbrod, I., & Bocken, N. M. (2017). Developing sustainable business experimentation capability – A case study. Journal of Cleaner Production, 142, 2663-2676. Web.

Wirtz, B. W., & Daiser, P. (2018). Business model development: A customer-oriented perspective. Journal of Business Models, 6(3), 24-44. Web.

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