Advantages and Disadvantages of Social Media Networks in Business

Explore the impact of social media networks on businesses, analyzing pros like enhanced communication and cons like negative feedback. Research methodologies include qualitative and quantitative approaches.

HI6008: Assessment 2
Advantages and Disadvantages Using Social Media Networks in Business
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Contents
1. Introduction.........................................................................................................................3
2. Project Objective.................................................................................................................3
3. Project Scope......................................................................................................................3
4. Literature Review...............................................................................................................4
4.1 Social media networks overview.........................................................................................4
4.2 Pros of Social media networks.............................................................................................4
4.3 Cons of social media networks............................................................................................5
5. Research Questions/Hypothesis.............................................................................................6
6. Research Design and Methodology.......................................................................................6
6.1 Qualitative research..............................................................................................................7
6.2 Quantitative research............................................................................................................8
7. Research Limitations............................................................................................................10
8. Time Schedule (Research plan)...........................................................................................11
9. Conclusion............................................................................................................................13
10. Reference List....................................................................................................................13
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1. Introduction
The use of social networks in business has been continuously rising since the last decades
with the expansion of the technology. In business, the social networks are used for the
plethora of purposes. There is no doubt in the fact that application of social networking tools
in the business processes has transformed the activities and way of operations of the business
organizations. The use of social networks has been a widely discussed topic among the
researchers, people, and organizations. It is found that social networks have both positive and
negative implications for the business that makes the topic more curious and attractive. The
assignment aims to explore the advantages and disadvantages of social networks on the
business in order to develop critical knowledge and understanding in the minds of the
readers. Technology one is an enterprise software company in Australia that offers software
advises to the customers. The findings of the research will be used by the organization for
own purpose.
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2. Project Objective
The important objectives of the research that should be accomplished are underlined as
below:
 To review existing literature that lay empathises on the use of social networks in business.
 To learn and gain reliable and accurate information about the advantages and disadvantages
of social networks in business.
 To draw meaningful conclusions for the readers.
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3. Project Scope
In reference to the modern context, the use of social networks in business is widely discussed
and analysed as social networks are helpful in changing the business habits and activities.
The scope of the research is wide as the findings and obtained literature can be used by the
different business organization in order to learn more about the applicability of social
networks in business.
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4. Literature Review
4.1 Social media networks overview
According to the opinion of Baruah, (2012), the role of social media is increasing day by day
as it is changing over time and allows people and organizations to communicate and interact
in an innovative manner. Social media is modifying rapidly with the application of distinctive
features to broaden the experiences of the participants. It is the fusion of sociology and
technology that changes the way of communication of information among the people.
Social media has biggest impacts on the organization’s interaction and communication with
the customers and public. It is recognised as the most powerful tool for business practices
which is efficient in enhancing the market position of the organization and avail competitive
advantage in the market against the competitors (Baruah, 2012).
4.2 Pros of Social media networks
In the words of Arca, (2012), social media marketing practice is very common among the
business organizations where social media tools are widely used for the advertising and
promotion of the products and services offered by the organizations. With the easy access to
the internet, the customers can find the information about the features of the products and
services via social media tools. The most commonly used social media marketing platforms
are Facebook, Twitter, and Google etc. Social media now become the substantial part of the
marketing strategies of the business organizations as it is less expensive and result in oriented
marketing strategy as compared with the traditional methods of marketing (Arca, 2012).
Social media is also an effective communication and networking platforms where business
people and managers can directly communicate with the customers through creating their
own websites and ask for the reviews and suggestions. It results in the enhancement of the
brand awareness of the organizations and brings new customers. It is important for the
business enterprises to communicate and create bonds with the customers in order to maintain
their loyalty to the organization. For this purpose, social media networks are the best tools
that do not only introduce the products to the people but also satisfied them through attractive
personalized messages. Customers can go to the websites and communicate their feedbacks.
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Using social media as a research tool is not less than an opportunity for the organizations to
gain maximum that will help in aid the organization towards growth and sustainability. It
offers insight aspect to the business people to estimate about the target customers, their
demands, and expectations, latest technologies prevailing in the market etc.
These are the positive consequences of social media networks on the business that can lead
the organization towards the successful accomplishment of their desired goals and
expectations. In addition to the positive factors, social media also constitutes of certain
limitation which will be discussed in the below section.
4.3 Cons of social media networks
As per the viewpoints of Nekatibebe, (2012), it is not mandatory that social media networks
suit every business. There are certain drawbacks of social media networks that instead of
revamping the position of the business decline it in the market. With the increasing use of
social media marketing, the marketers are stuck with multiple arrays of choices. It is not easy
for any business to implement or use every new technique launch on the market. There is no
doubt in the fact that social media in interactive and successful but at the same time it is time
intensive. A person should be always present to monitor and control the social media
networks to maintain relationships and bonding with the customers (Nekatibebe, 2012).
It is seen that companies use the social networks to promote their products and services in the
eyes of the customers. The products are presented by the organizations with the application of
effective and quality features but sometimes instead of the positive feedbacks of the
customers, negative comments can be seen on the websites. What really matters is the
feedbacks and reviews posted by the customers that out shown the image of the organization
in the market. This is the reason why social media networks act a scary and challenging for
the business organizations. The organizations have no control over the comments and content
posted by the customers. Negative word-of-mouth can be widely spread in a short span of
time as compared with the positive reviews. In addition to it, there is also the risk of
inappropriate behavior on the internet that might harm the reputation and brand image of the
organization in the market (Siricharoen, 2012).
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5. Research Questions/Hypothesis
Primary Question: What are the major benefits and limitations of social networks to the
businesses?
Secondary Question: Does the use of social networks in business enhance the growth and
development of business?
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6. Research Design and Methodology
6.1 Qualitative research
Type of research
According to Johnston, (2014), it is a type of research methodology where the information is
investigated and gained through the application of social science and natural science. It is
explanatory research where reviews and opinions are gathered and analysed in order to fulfill
the research aims and objectives. It involves various steps and procedures for the collection,
analysis, and interpretation of reliable information in accordance with the research problem
and objectives (Johnston, 2014).
Data collection
In qualitative research, data is collected from secondary sources such as articles, journals,
reviews, books and internet sources. The collected data will be presented in the form of a
literature review that shows the complete interpretation of the information gathered.
Sampling
Mass of information is collected through articles, journals, reviews, books, and internet
sources but it is not necessary that the entire gathered information is reliable for the research.
Through critical evaluation, only the information and data which is relevant to the research
will be selected and processed (Mertens, 2014).
Data analysis
In this research, the selected information from the secondary sources will be analysed through
the qualitative technique of data analysis (Bryman and Bell, 2015).
Reliability and Validity of data
The research will constitute of the qualitative information which is relevant and useful for the
completion of the research goals and objectives. No irrelevant information, that might hamper
the richness of the findings and outcomes, will be added to the research. The collected data
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and information is valid and will be used with effective accuracy and reliability. In order to
ensure the effectiveness of the validity of the information, the authors and sources will be
acknowledged in the bibliography at the end of the research (Smith, 2015).
6.2 Quantitative research
Type of research
In the words of Mertens, (2014), qualitative research is the empirical investigation of the data
and information which can be presented and interpreted in the numerical, mathematical and
computational forms. The information collected via qualitative research has the tendency to
be presented in the forms of charts and graphs. In this research, quantitative methods will be
used for the investigation and interpretation of the information (Mertens, 2014).
Data collection
In order to execute the quantitative research, the data will be gathered from primary sources.
Primary sources are the sources that offer a first hand or practical information about the
subject matter. The primary source in this research surveys questionnaire which is distributed
to the customers of the organization in order to gather knowledge about their opinions on the
applicability of social networks in business.
Sampling
The questionnaire will be distributed to the 100 customers hence it would be not easy for the
researcher to analyse large data. 10 samples from the universe (100 customers) will be
selected through random sampling technique. It is sampling technique where samples are
randomly selected from the large universe.
Research instrument
For data collection, a questionnaire will be designed which will be distributed to the
respondents.
Questionary Design
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The questionnaire consists of 10 questions which are open-ended. The questions can be easily
understood by the respondents. There will be a simple use of language in the designing of the
questionnaire. The questions will be set in accordance with the theme or subject of the
research (Smith, 2015).
Data analysis
The data and information in the quantitative research will be analysed through the
quantitative technique of data analysis (Bryman and Bell, 2015).
Reliability and validity of data
Highly reliable and accurate information will be used in quantitative research. The personal
information of the respondents will be highly confidential. There will be no changes made in
the responses for any reason.
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7. Research Limitations
In every research, there are a number of limitations occurred which should be critically
considered by the researcher so that the accuracy and reliability of the findings will not affect.
Some of the identified limitations of the research are depicted as under:
 Time is one of the major limitations of the research. If the research is not completed on time,
then the results are not said to be as effective as it should be.
 Short of knowledge in the researchers also hinder the effectiveness of the results.
 In addition to these, inappropriate methodologies also consider drawbacks of the research. In
order to avoid it, the researcher should have complete knowledge about the suitability and
applicability of the research methodologies.
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8. Time Schedule (Research plan)
Sr. No. Research Activities Time Duration (in weeks)
1 Research plan 1
2 Literature review 2
3 Data collection 2
4 Data analysis 2
5 Findings and discussions 2
6 Conclusion and recommendations 1
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Gantt chart
Timeframe ( in weeks)
Sr. No. Research Activities 1 2 3 4 5 6 7 8 9 10
1 Research plan
2 Literature review
3 Data collection
4 Data analysis
5 Findings and discussion
6 Conclusions and recommendations
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9. Conclusion
The research study has effectively reflected the advantages and disadvantages of social
networks in business. It is revealed that use of social networks has both positive as well as
negative consequences on the business. On one hand, use of social media improves the profits
and revenues of the organization while on the other sometimes it generates the negative
impression of the organization in the eyes of the customers.
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10. Reference List
 Arca, C., 2012. Social Media Marketing benefits for businesses Why and how should every
business create and develop its Social Media Sites?. Master of International Marketing,
Master Thesis report.
 Baruah, T. D., 2012. The effectiveness of Social Media as a tool for communication and its
potential for technology-enabled connections: A micro-level study. International Journal of
Scientific and Research Publications, Volume 2, Issue 5.
 Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
 Johnston, M.P., 2014. Secondary Data Analysis: A Method of which the Time Has Come.
Qualitative and Quantitative Methods in Libraries (QQML) 3:619 –626.
 Mertens, D.M., 2014. Research and evaluation in education and psychology: Integrating
diversity with quantitative, qualitative, and mixed methods. Sage publications.
 Nekatibebe, T., 2012. Evaluating the Impact of Social Media on Traditional Marketing.
Helsinki Metropolia University of Applied Sciences.
 Siricharoen, W.V., 2012. Social Media, How does it Work for Business?. International
Journal of Innovation, Management and Technology, Vol. 3, No. 4.
 Smith, J.A., 2015. Qualitative psychology: A practical guide to research methods. Sage.
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