PayPal Internal Analysis. GOALS, DEPENDENCIES, CONSTRAINTS

PAYPAL INTERNAL ANALYSIS
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PayPal Internal Analysis
KPIs
PayPal depends on specific metrics to establish the trajectories of its performance both internally and externally. It is worth remarking that PayPal’s positioning depend on factors such as the third party banks, customers, and various technologies to steer success. Some of the specific metrics that the organization emphasizes include non-GAAP EPS prices, the number of active accounts, complete payment transactions, mobile transactions, person-to-person payments, and the cash equivalents. PayPal operates within the confines of ideal industry values and competitive standards. Hence, all the above metrics define the organization’s trajectory in terms of goals, dependencies, and constraints.
Goals
PayPal roots its primary goal in increasing the number of transactions every quarter. With that objective in place, the company has been successful in creating a flexible operational environment where stakeholders from multiple backgrounds (Jones & Barta, 2012). First among the goals at PayPal is to increase its earnings per share (EPS). PayPal believes that its regular operational profitability trajectory is best represented through the non-GAAP EPS indicators (Zacks, 2019). By increasing their EPS, the organization marks its presence in the operational environment.
Increasing payment transactions and active customer accounts mark the other performance objective at PayPal. PayPal operates within a simple environment where an increase in the number of transactions automatically translates into increased revenues. At the close of 2018 Q4, 218 million accounts were active at PayPal. That was a considerable increment from the previous year’s referenced quarter that closed at 192 million subscribers (Zacks, 2019). That number represented only 2 million subscribers less than the targeted 220 million subscribers at the close of 2018. The increment also represented a record increase of 8.2 million active accounts. In 2017 Q2, active accounts only increased by 6.5 million. The changes in active accounts also represent a considerable increment in processed payment transactions. At the close of 2018 Q3, PayPal had completed $1.9 billion for that quarter (PayPal). That was a notable increment considering that it marked acceleration of year-over-year payment transaction change of 23%. Reaching the set goals in terms of the number of subscribers and active accounts still remains a goal for PayPal. A consideration must be put on the fact that the subscriber and transaction increment trajectories will change especially with the escalating entrants into the industry.
PayPal also seeks to increase the number of merchants who are subscribed to the payment platform. As will be shown later, achieving this goal is highly dependent on the products PayPal introduces to its customers. Making PayPal the number one option for the customers means that they will opt for the platform to transact with merchants.
Another goal or objective for PayPal is geographical expansion and growth. China has been one of the markets that has eluded many U.S. companies. Some have tried and failed to have any meaningful impact in the market...