Stakeholder Analysis of Facebook

This presentation provides an analysis of the stakeholders of Facebook, including users, advertisers, employees, government, and communities. It discusses the strategies and recommendations for each stakeholder group to ensure the success and sustainability of the company. The presentation also includes insights from the BCG Matrix, GE-McKinsey Matrix, and Synergy Matrix.

Facebook is the worlds largest social media today.The initiative was
taken by Mark Zuckerberg and his group of friends at the Harvard
University. Now, the headquarters of the company are in Menlo
Park, district of California, America. Unique selling proposition of
the platform is Provision of a common platform, where they can
come together and share their perspectives through text, pictures
and videos. Today the platform contains more than 2 billion users
helping the company and attracting numerous companies to
market their products and services.

Continued…
• Having the world’s largest user base it has systematically provided
advertisements and markets huge number of products which helped
them to become a billion dollar company within a span of few years.

Facebook
Advertisement
User
Employee
Governing Body
Community
Stakeholders of Facebook

Stakeholder Identification
The stakeholders include:
a) User Base: The user base of the platform being the primary
stakeholder of the corporation are the individuals helping the
company in maintaining a balance among the other stakeholders.
The huge number of footfalls of users act as the backbone which
enhances the company to recover from external shocks of the
business and in experimenting in new fields like artificial
intelligence and bit coin.

Continuation
• In addition, differences in perspectives have helped the company to
market products and services according to their preferences. The
diversity of the user base enables the company to market products
and services, systematically targeted based on nationality, culture,
behavior, gender and various other parameters.

Stakeholders of the Corporation
b) Advertisers: After the users, the advertisers stands second in the
priority list. They are the financial part of the company and the main
source of income of the company. The high frequency of advertisement
is solely due to the huge user vase of the company. They services
provided to the advertisers are very unique. The platform provides
various types of advertising options through mediums like video as well
as pictures. The data analysis unit of the corporation enables the
advertisers in targeting the customers with accuracy through customer
segregation.

Stakeholders of the Corporation
c) Employee: They rank third on the priority list and are the people
responsible to maintain the top position of the company
irrespective of the increased number of competitors. The
employees are responsible creating, managing and improving the
service being provided from the corporation. They form an integral
part of the list of stakeholders because their presence helps in the
uniformity of the services on a daily basis.

Stakeholders of the Corporation
d) Government: The last stakeholder for the company is the
government, who is responsible for the imposition of laws and
regulations for operating in the market. The rules and regulations
help the company to follow legal path and restrict them from
conducting any illegal pursuit. The CSR is also an essential part of
the company and its corporate environment.

Stakeholders of the Corporation
e) Communities: Facebook communities are the groups of people who
have an inclination towards a common initiative. Communities possess
the authority to drive the other people towards a particular cause such
as a political issue, protecting the old and the orphans, problems
related to drug abuse or taking an initiative against a disease.

Strategy for Stakeholder
1. User: The best strategy which fits with this type of stakeholder is the
offensive strategy. The offensive strategy is basically used to remove or
decrease the competition in the related market. The main stakeholders
of the corporation are the user base, as they can heavily influence the
business process in both positive and negative manners. This strategy
proposed by Freeman appropriately fits the stakeholders because of
their mixed traits. Therefore, the offensive strategy has to be utilized
for maintaining the leadership position of Facebook in the market.

Strategies for Stakeholders
2. Communities: Communities are the group of users who have highly
influential impact on the perception and behavior of the common
masses. Such communities provide a rationale to the people and
provides them a motive to come back to the application on a regular
basis. In this prospect, the stakeholder tactic applicable is the hold
strategy, which is appropriate for these communities as this strategy
provides optimum freedom to the stakeholders.

Strategy for Stakeholder
3. Employee: This type of stakeholder are the vital force responsible for
the daily functioning of the corporation. It consists of cross-cultural
diversified nature of the people in the organization. Since Facebook
comprises of employees with diverse cultural backgrounds and skill
sets, the Swing Strategy must be utilized in order to reduce the
intervention that might affect their efficiency. The chosen strategy shall
also enhance the interests of the employees in the company along with
balancing the cross-cultural diversity and thereby lead the corporate
towards a pragmatic path in the future.

Strategy for Stakeholder
4. Government: The fourth element in the stakeholder analysis is the
government, which is responsible for directing the corporation in
accordance with the regulations of the nation. The open nature of the
platform allows the people for expressing their feelings as well as form
and opinion. Recently, it has been observed that the political parties are
using the platform to negatively influence the opinion of the people. So,
attaining the defensive strategy and abiding the rules and regulation is
essential for long run sustainability of the corporate.

Recommendations for Strategic
Program Implementation
Strategic management program recommendation for stakeholders of
Facebook:
a)User: The stakeholder strategy for the user base of Facebook is the
offensive strategy. The strategic program elements to have a positive
effect on the users and increase the potential of the platform are:
i) Addition of more features in the application such as contests and
quiz and provision of redeemable virtual rewards.
ii) Reduction in the irrelevancy of the advertisements.
Advertisements are often irritating and unlike television ,
Facebook application can be switched off in a moment. So,
advertisements must be more directive and less irrelevant. `

Recommendation of a strategic
Program
b) Employees: Employees being the factors responsible for the
daily operations of the business swing strategy is used to maintain
the cultural diversity in the organization in one hand and to
maximize the positive influence of the entities on other hand. The
strategies that must be applied are:
i) Creation of an Organic Structure: The existence of an organic
structure helps the employees to engage among themselves at
a higher level and increase the integration level. This enhances
the retention level of the company and employees will hesitate
to leave the company when offered higher remuneration by
other companies.

Continued…
• Systematic and Efficiency based Remuneration: If fair remuneration
and incentives are provided to the employees then it will help the
organization to reduce dissatisfaction among employees. On the other
hand, it must provide non monetary benefits such as vacations and
leaves to increase the satisfaction level.

Recommendation of strategic
Program
c) Community: Community is a group of users directed
towards a particular objective. As the recommended
stakeholder strategy is hold strategy, the recommendation
to maximize their engagement are as follows:
i) Monetary Benefits: To increase the level of engagement
the communities must be tactically used and based on
user engagement monetary benefits musty be provided
based on the number of users they can add to the
platform and community.

Continued..
• Indirect Employment: As the influencing capability of various
communities are high they must be approached to market various
products and services, converting them into influencers and providing
them earning option as incentives.

Assignment 2
D&H food is an FMCG company, existing in the market for over 50
years. The product portfolio of the company includes:
a) Munchy Biscuits
b) Pure Juice
c) Funville Chocolate
d) Burger RU’s
e) Home Fresh

BCG MATRIX: D & H
Question Mark
Burger RU’s & Pure Juice
Star
Home Fresh
Dog
Funville Chocolate
Cash Cow
Munchy Biscuits
BCG MATRIX
M
a
r
k
e
t
G
r
o
w
t
h
Market Share

BCG MATRIX Explanation
• Funville Chocolates: This product falls in the 1st quadrant i.e. Dog. This is
because both the market share and the market growth are low for the
category.
• Munchy Biscuits: This product falls in the 2nd quadrant i.e. Cash Cow . This is
because both the market share is high and the market growth are low for
the category.
• Home Fresh: This product falls in the 3rd quadrant i.e. Star. This is because
both the market share and the market growth are high for the category.
• Burger RU’s and Home Fresh : This product falls in the 2nd quadrant i.e. Cash
Cow . This is because both the market share is high and the market growth
are low for the category.

Business Unit Strength
Market Attractiveness
GE – McKinsey Matrix
High Medium Low
Low Medium High Munchy
Biscuits
Home Fresh
Pure Juice &
Burger RU’s

GE MATRIX
• Home Fresh will be placed in the 1st quadrant. This is because
both the market attractiveness and the business unit strength is
high for the product.
• Munchy Biscuits will fall in the 2nd quadrant where the market
attractiveness is high but the business unit strength is medium.
• Pure Juice and Burger RU’s will be placed in the 5th block due
medium market attractiveness and medium business unit
strength.

Synergy Matrix
Munchy
Biscuits
Pure Juice and Home
Fresh
Funville
Chocolates
Burger RU’s

Synergy Matrix
• Munchy Biscuits falls in the top right quadrant where it is
categorized under ‘FITS’. This means that both the outgoing
benefits and the incoming benefits are high for this product.
• Pure Juice and Home Fresh falls in the ‘Misfit’ category because
both the incoming and outgoing benefits are negative for these
products.

Continued…
• Burger RU’s fall in the category of Parasites. This is because incoming
benefits are high but the Outgoing Benefits are low. It falls below the
line of threshold acceptance.
• Funville Chocolates fall in the category of “TAKERS” falls above the
line of THRESHOLD ACCEPTANCE. The incoming benefits of the
product are positive but the outgoing benefits are negative.

Recommendations for Products
Munchy Biscuits: This product is the Cash Cow of the company in the
BCG Matrix with high market share but low market growth. If analyzed
from the point of view of the product life cycle then the product in in
the saturation stage. In the near future the market share of the product
will fall steeply. On the other hand, in the GE Matrix market
attractiveness is high and Business unit strength is medium.
So therefore to sustain in the market, the product must be
reintroduced in the market with new flavors and new variants.

Pure Juice
Pure Juice is a new product in the market with very high potential but
low present market share in the BCG matrix. In the iGE Matrix both the
Market Attractiveness and the Business Unit Strength is high.
So for this product the brand awareness has to be increased and
international expansion has to be adopted. In addition, the production
has to be increased systematically.

Burger RU’s
Burger RU’s is a new product in the market with very high potential but
low present market share in the BCG matrix. In the iGE Matrix both the
Market Attractiveness and the Business Unit Strength is high.
So for this product the brand awareness has to be increased and
international expansion has to be adopted. In addition, the production
has to be increased systematically.

Home Fresh
Home fresh is the best product of the company at present. With high
market share and high market growth it is the star product of the
company in the BCG Matrix. In the GE Matrix it has high Market
Attractiveness and low Business Unit Strength.
To increase the revenue of the product it must reduce its prices to
create maximum market share and remove other competitors from the
market.

References
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• Yang, R.J., Wang, Y. and Jin, X.H., 2014. Stakeholders' attributes, behaviors, and decision-making
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