Managers and management: using social media

Thanks for checking in to the second semester’s blog posts for 2014 for Management: The Essentials 2e. Want to broaden your understanding of Chapter 1: Managers and Management? You’ve come to the right place.

To start with…

…refresh your knowledge of managerial roles on pages 8 to 11 of the text, then check out this article on the effect that social media has had on a small tourism business in WA.

So, to summarise…

…we all know (perhaps a little too well…) the increasing power of social media.  It may still be too soon to tell how these technological tools have changed humanity, but it seems pretty clear that power is gradually decentralising – the traditional giant power brokers are facing a shift of power to the masses and the crowds.  This process is rapidly accelerating, with many social media platforms becoming an integral part of our lives.  How many of us DON’T have a Facebook profile?  Businesses have realised the potential of a direct access to many individual people, and the article provides a recent example of the power that social media has for a small business – it was, literally, the difference between a business’ life and death.

Just as the owner, Sean Blocksidge, had given up on the future of his tourism business, social media has turned his situation around.  A few favourable reviews on TripAdvisor have positioned him as the number one tourist attraction on Margaret River in WA, and his bookings have been completely full ever since.

To maintain this position and sustain the flow of customers, Blocksidge continues to update his business’ profile through Facebook and Twitter, posting attractive images from his daily expeditions.  This marketing method is cheaper and easier than the traditional costly advertising methods.  Instead of relying on alliance with industry associations (such as massive conglomerates of hotel chains, car rental companies and airlines), businesses can now communicate directly with their potential customers.

This engagement with social media has not only saved Blocksidge’s business, but also increased  tourism for the whole region!  What a demonstration of the power of the masses. It also shows you that managers can have a great influence – greater than what they may expect.

You may think that social media is “an old hat”, and as a manager you will have the advantage of being familiar with it – but just imagine what technological changes there will be by the time you get into the field!

Some issues to notice and pay particular attention to here are…

• External pressures/changes
• Managerial roles
• Managerial responses

Consider the following questions for discussion…

1. The article describes several pressures that are experienced by tourism businesses in WA. What are they?  Are there pressures you can think of that are not mentioned in the article?
2. In addition to the pressures, what changes in the business’ environment have prompted changes in the way the business is now marketing itself?
3. How did the owner-manager in this article respond to the change?  How do you think the manager’s wellbeing has been affected by this new mode of operation?
4. Which managerial role (planning, organising, leading, or controlling) is relevant to the addressing of each challenge that you have listed?