Impact of Social Networks on Business

This assignment analyzes the profound impact of social networks on contemporary business practices. It examines how businesses leverage social media platforms for marketing, fostering customer relationships, driving innovation, and enhancing operational efficiency. The analysis delves into the benefits and challenges associated with social network integration, drawing upon relevant research and case studies to illustrate real-world applications.

Advantages and Disadvantages of Using
Social Networks in Business

CONTENTS
INTRODUCTION......................................................................................................................3
OBJECTIVE..............................................................................................................................3
SCOPE.......................................................................................................................................3
LITERATURE REVIEW...........................................................................................................3
RESEARCH QUESTIONS........................................................................................................6
RESEARCH DESIGN AND METHODOLOGY.....................................................................7
Research design......................................................................................................................7
Sampling.................................................................................................................................7
Reliability and validity...........................................................................................................7
Time schedule.........................................................................................................................8
REFERENCES.........................................................................................................................10

INTRODUCTION
Social networking service is also known as web based service which allows the user
or individuals to build a public or semi–public profile for the users and also with whom it
shares the connections (Baltar and Brunet, 2012). In Today’s world technology has change
the mind of young people and due to this through internet the world is around the young
people. The internet is also used by the young people through mobile, laptop, and also
computer for the source of information and engage and construct and for maintenance of
social network (Picazo-Vela, Gutiérrez-Martínez and Luna-Reyes, 2012). This research is
proposing benefits of social networking services with understanding of its objectives,
methods, questions alongside the study of previously proposed information in the discussion.
OBJECTIVE
Increasing digitalization has created a significant impact of social networking sites on
business operations as well. It helps organizations in effectively reaching the consumer base.
The major objective of this report is to examine the possible advantages and disadvantages of
the social networking in business (Kasavana, Nusair and Teodosic, 2010). Furthermore the
research suggests how to enhance brand loyalty and customer satisfaction for a business
organisation through various popular social media platforms
SCOPE
It identifies various essential benefits related to social networking service (SNS) such
as it promotes the sense of self-esteem and belongings. It helps in delivering educational
outcomes. Further, it provides in facilitating supportive relationships and also maximises
promoting internet and increasing the benefits of SNS and promoting internet (Woodcock,
Green and Starkey, 2011). The media literacy may help the young people to protect from
risks of online interactions like cyber-building, or plundering.
LITERATURE REVIEW
Introduction to social networking
According to Hendrickson, Rosen and Aune (2011), In today’s world Australia is the
most prolific user of social media and the youngsters’ of Australia between the age of 16-29
year old are affected to the internet are 90%. In most of the time they use the internet on an
average of 22 hours in a week. The young people gives more importance to SNS in everyday
life is incontrovertible. From 12 to 16 year old use SNS is 97% (Ellis, 2011). The vast

majority of young people in Australia are enthusiastic. The users engaging on a daily basis
with SNS through computer, mobile phones etc. Social networking service has now become
an emerging field in research.
The (Australian Communications and Media Authority, 2009) has studied of the
negative impact of social networking services on people. Internet freedom is viewed as it
shapes the strategic choices of the citizen. There are enough evidences available which shows
that benefit associated with the use of social networking sites. The usage of internet is such
that 64% of 97% mobile users have internet connection in their mobile. The use of SNS
became the number one online activity for 16 to 29 year age group with 83% (Gronum,
Verreynne and Kastelle, 2012). It allows the users to communicate through the internet with
others in many ways such as commenting on photos, posts, and updating own profile, posting
public messages, Twitter, Facebook, “status” function etc. The most of the internet activities
in which mobile users are involved include downloading content, emailing and visiting
popular SNS. 30% of the SNS users access their account via their mobile handset.
Social networking benefits
According to Trusov, Bodapati and Bucklin, (2010), it is an indisputable fact that SNS
plays an important role in everyday life of young people. The age group which are majorly
involved in SNS includes 90% among the age group of 12-17 years and 97% among the age
group of 16-17 years. The number one online activity for the people of age group of 16-29
years includes SNS usage. It is reported that 83% of the people use SNS on regular basis
(Sadler, Lee, Lim and Fullerton, 2010). SNS is a medium through which people can connect
to each other in various form. Among the various forms through which people communicate
include updating profile status, commenting on posts and photographs, posting and sharing
public messages, etc. SNS provide instant messaging facility.
According to Kwon and Wen, (2010), among the top ten online activities in which
young people are engaged includes writing and reading blogs, micro-bloggong through
Facebook and Twitter. The popularity of blogging over Facebook and Twitter via mobile
phones is increasing. SNS facilitates communication, sharing and creating various forms of
content such as photos, videos, blogs and many more. In Australia, the young people below
the age under 25 are the prolific user of SNS and it is the most active group on SNS ( Molina‐
Morales and Martínez‐Fernández, 2010).

According to Sigala, (2012), the young people engaged in SNS and social media
practices are exposed to wide range of challenges and risk which include privacy and
personal information management, cyber bullying and risk of predation. It has suggested in
their study that Australian parents are also becoming active on SNS but they are finding it
difficult to understand and find these digital activities as complex. Australian parents are
majorly concern about wellbeing and safety of young people using SNS. According to
Greenhow, (2011), the reason behind the concern toward the wellbeing and safety of young
people using SNS is the lack of understanding and awareness of public nature of internet.
Global scenario of Social networking
According to (Lenhart and Madden, 2007), many young people are aware of potential
threats associated with privacy and they take steps also to minimise the risk. (Palfrey and
et.al, 2008) suggested in their studies that risk or potential threat associated with online
activity is no different with offline risks.
Traino, Andzulis, Rapp and Agnihotri, (2014) suggested in their studies that risk
associated with online activity is real and the consequences associated with it can be more
serious and they should neither be overestimated or under-estimated. As social networking
sites have become everyday part of people, it is important to identify the positive impact of
SNS on life of people. It is important to identify the understanding of young people to
estimate the potential risk associated with the usage of SNS. Social media technologies foster
democracy especially in less-confined political spaces. Social networking sites are growing
so rapidly that they are creating monopoly in the market. There is a threat of privacy or
leaking of personal information to third parties.
It is studied by (Fernandez-Martinez and Morales-Molina, 2010) that social media
communication is a modern type of word of mouth used earlier by marketers for both
commercial and non-commercial communication. Social media act as a platform even for
consumers to post their positive or negative comment regarding any product or service. The
influence and effectiveness of social media is more as people with similar experience relate
themselves and add themselves to such posts. They show their liking for the post and even
post their own experience in the form of comment also. Thus, we can call social media as
electronic form of word of mouth. It has become more popular with increasing popularity of
internet and mobile phones. Social media can be very useful and beneficial to the
organizations and individuals. It can be used in the form of forum for discussion, electronic

bulletin board, newspaper, blog, SNS, etc. Another reason of SNS becoming popular day by
day is vast information is available through it.
Even at global level, the popularity of SNS has raised. SNS has changed the way
information are communicated (Kwon and Wen, 2010). Internet has changed the face of
marketing activities and communication both. Even before making any purchase decision
consumer prefers to search and compare products on internet. SNS are the best medium even
to get review about the product.
SNS can serve as a tool for communication for marketers (Sadler, Lee, Lim and
Fullerton, 2010). Today’s world rum around internet and internet has provided various
benefits such as SNS. It facilitated transmission of information and hence marketers use them
for both individual and product branding. One of the benefits of SNS is that information
reaches to mass. Even marketers can reach to many people at a time on SNS and it is more
persuasive way also. SNS are easily accessible to vast number of people and influences them
also.
RESEARCH QUESTIONS
The objectives set in previous section have been focussed in entire research according
to which several questions have been framed (Park and Lee, 2008). These questions have set
entire study on right track in relation to benefits of social networking sites.
The primary questions for present research are as followings:
1. Does social network influence the business in the future?
H0: social network does not influence the business in the future
H1: social network influences the business in the future
2. Does the social networking help in enhancing the consumer’s satisfaction and brand
loyalty through marketing?
H0: the social networking is not helpful in enhancing the consumer’s satisfaction and
brand loyalty through marketing
H1: the social networking is helpful in enhancing the consumer’s satisfaction and
brand loyalty through marketing

RESEARCH DESIGN AND METHODOLOGY
Research design
This paper incorporates the qualitative approach to study research objectives. The
report will undertake a descriptive research in order to attain significant and well defined
result. The analysis of social networking sites will be undertaken to attain reliable and actua;
data.
Sampling
Sampling is significant for structuring the study and attaining valid and significant
data for the study. Social networks play a significant role in business growth and
development. The population is vast for the study. In order to attain valid data sample
analysis of businesses from Sydney will undertaken. 10 major companies will be reviewed
and analysed. The researcher will focus on identifying the businesses’ association with social
networks.
Data collection process
Secondary means of data collection has been adopted for the study to attain
significant and well defined result. Sampling has been done effectively and the tool that has
been employed to work on the data collection is particularly snow ball sampling measure
where an in-depth research about the issue has been undertaken and to attain reliable and
valid research results (Baltar and Brunet, 2012).
Reliability and validity
Research will be undertaken in a structured and well defined manner. The secondary
data collection is challenging task. However the resreacher will ensure that
LIMITATION OF STUDY
The major limitation of the study is related to formulating objective of the study. The
social networking service is a vast topic on which detailed study can be done. But the current
study is limited to the benefits of social networking services. The study was limited to make
it more specific. The second limitation of study was collection of data. It was equally
important to collect valid and reliable data. Analysing the data collected was additional
challenge of the study.

Time schedule
The following schedule of activities clearly defines the process of research and its
time segment:
Task Name Duration Start Finish Predecessors
Business research 13 wks Tue 8/1/17 Mon 10/30/17
Market analysis 1 wk Tue 8/1/17 Mon 8/7/17
Problem identification 1 wk Tue 8/8/17 Mon 8/14/17 2
Drafting aims and objectives 1 wk Tue 8/15/17 Mon 8/21/17 3
Undertaking past literature 2 wks Tue 8/22/17 Mon 9/4/17 4
Choosing data collection
method 1 wk Tue 8/22/17 Mon 8/28/17 4
Sampling 2 wks Tue 8/29/17 Mon 9/11/17 6
secondary data collection 2 wks Tue 9/12/17 Mon 9/25/17 7,5
Data analysis 1 wk Tue 9/26/17 Mon 10/2/17 8
Finding solution to research
issues 1 wk Tue 10/3/17 Mon 10/9/17 9
Draft submission 1 wk Tue 10/10/17 Mon 10/16/17 10
Improving as per feedbacks 1 wk Tue 10/17/17 Mon 10/23/17 11
Final submission 1 wk Tue 10/24/17 Mon 10/30/17 12

Figure 1 Gantt Chart

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