(PDF) Advantages and Disadvantages of Using Social Network in Business

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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN
BUSINESS
By (Student Name)
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Institution
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Date

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Table of Contents
1. Introduction.........................................................................................................................3
2. Project Objective.................................................................................................................4
3. Project Scope......................................................................................................................4
4. Literature Review...............................................................................................................5
4.1. Introduction.................................................................................................................5
4.2. Evolution.....................................................................................................................5
4.3. Advantages..................................................................................................................6
4.4. Disadvantages..............................................................................................................7
5. Research Questions/Hypothesis..........................................................................................7
6. Research Design and Methodology....................................................................................7
7. Research Limitations..........................................................................................................9
8. Time Schedule/Research plan.............................................................................................9
9. Conclusion........................................................................................................................10
10. Reference List...............................................................................................................11
11. Appendix.......................................................................................................................13
11.1. Appendix 1: Common Types of Social Media Channels......................................13

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Advantages and Disadvantages of Using Social Networks in Business
1. Introduction
Social networks and social media websites have the ability to provide businesses with
numerous positive aspects that may have been previously unavailable, or relatively difficult
for them to acquire on their own. With the right strategies and intervention platforms, social
networks provide businesses with a new avenue through which they can advertise, and
revolutionize the ways in which they present their services and products to their customers
(Cook, 2017). Using social networks, businesses are able to establish an image of innovation
that caters to generations of all ages, while giving them a direct means of communication
with their consumers. Feedback acquired through these processes aid businesses in tailoring
their product designs and updating old products with the purpose of improving how
companies can conduct their business. With the vast amount of information that social
network users put online, companies can currently simply modify their marketing plans, and
streamline their advertisements for specific target markets. Businesses are therefore provided
with another opportunity to learn the minds and preferences of their customers on a global
scale. As is evident in any new ideas, there are also disadvantages when it comes to using
social media sites, such as malware attacks and loss in productivity (Blackwell et al., 2017).
As such, this project aims to delve into the common social networks used by businesses, the
disadvantages and advantages of using these platforms, and analyze, based on dominant
social network platforms, how it is likely to impact businesses in the coming future.
2. Project Objective
When in search of a business perspective, it has become more evident over the last
two decades that social media marketing allows for several new opportunities for businesses
to market their product, brands and services. As a result of the freedom and personal
autonomy presented by the Internet, users are currently increasingly interacting with one

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another to share their opinions and experiences about specific services and products that they
have either heard about or tested on their own. Regardless, it is still somewhat unclear as to
what the real benefits that social networks present, as well as the specific techniques that are
mostly effective in attaining success (Evans, 2008). The main objective of this project is
therefore to uncover the benefits and disadvantages of social network use, while researching
on the potential impacts of social network on businesses in the future.
3. Project Scope
A closer look at the benefits and disadvantages of marketing using social networking
in businesses has the ability to aid in understanding the influence each channel, their
applicability as well as their future impact on people and businesses. The main reason for
selecting this topic is therefore based on the massive use of social networks in several aspects
of the business, that is the internet forms the foundation for telecommunication systems and
social media use is simple an extension of it. As a result of the connectors facilitated by the
internet, social media has therefore become an important part of personal lives and businesses
(Gratton & Gratton, 2012).
4. Literature Review
4.1. Introduction
Social networking is the most widely used form of social media in businesses mainly
due to its ability to interconnect with other people, while creating a community. It is therefore
perfect for establishing relationships, rather than simply being a platform making
announcements through posts (Klein, 2010). Hence, managers can easily use it as an internal
base through which the workforce can communicate and attract potential customers and staff
members.

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4.2. Evolution
It was not until the year 1960 that internet-based technology first came into being. In
its earliest form, today’s internet was first described as ARPANET, which was first
developed in the year 1969 for the United States Department of Defence, under the Advanced
Research Project Agency. The ARPANET was initially supposed to be a mode of
communication through which electronic forms bearing military data could be transferred
without interception or disturbances. The first electronic mail group was later developed in
1971 by Ray Tomlinson. In 1991, exactly twenty years later, Tim-Berners-Lee invented the
World Wide Web, and along with it the Hypertext Markup Language that solves its links.
Social networking is a concept that came into being as early as 1960, after the setting
up of the first technology of the internet. Its very first systems were in the form of online
communities, such as the Usenet, which was established by Tom Truscott and Jim Ellis, all of
whom were graduates of Duke University (Tiago & Veríssimo, 2014). This concept made it
easier for people to freely share their perspectives while giving suggestions. A similar social
network, known as the Bulletin Board System, was invented in 1984, thus making it easier
for the upcoming of social platforms, websites, and the World Wide Web.
Founded in 2003 by Jonathan Abrams was one of the most dominant social platforms
– Friendster. There were others, such as MySpace and LinkedIn, which were similarly
popular. A year later, social networking became a trend that facilitated the development of
Facebook in the year 2006 (Mingers, 2008). At the moment, Facebook is the most successful
social media platform boasting more than one billion active users on its apps and various
pages (Li, 2017).
Several sources indicate that Facebook, being the most popular platform, has become
the first stop for social network users. It has therefore become a platform upon which

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businesses can register their presence and share their services. Similarly, Facebook’s flexible
and simple usage makes it the most suitable fit for businesses. Other platforms, like Google+,
have received a lot of attention due to their various distinct advantages. For example,
Google+ allow businesses to access favorable ratings from customers, which makes it easier
for them to develop more customized interactions with their customers (Wei & Gao, 2017).
Twitter also allows businesses to create s steady flow of their links, news and headlines,
whereas Instagram and Pinterest create a common stream of videos and images to facilitate a
visual mode of storytelling for their consumers (see appendix 1).
4.3. Advantages
The advantages of integrating social networking with business are not only clear, but also
significant. Sources indicate that 90% of approximately 3300 businesses attest to the
importance of social media to their businesses, such as the ability to reach out to a
significantly larger audience, create increased awareness of their products, communicate with
their consumers at their convenience, and outsource opportunities at minimal cost. In short,
these benefits contribute to the expansion of the companies through advertisements, surveys,
and networking (Evans, 2008).
4.4. Disadvantages
Despite the great amount of evidence supporting the integration of social media into
businesses, there is relatively no action without potential risk. While the issues related to the
use of social networking platforms are not resultant of the sites themselves, the problems are
highly likely brought about by the employees. These include matters that could affect the
business’ reputation and confidentiality, including production and productivity levels, and
network security. Businesses are therefore required to first extensively research and come up
with ways in which they can protect themselves from potential threats that could harm the
interest of the company and its employees (Dan, 2009).

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5. Research Questions/Hypothesis
Following the main objective of this project, the primary research question is as follows:
1. What are the advantages and disadvantages of using social networking in businesses?
The following secondary questions are considered to be part of main question, and
support it in their most appropriate sense. Reasoning and justification have been fulfilled in
the project scop and literature review. As a result, they are not a separate entity.
1. What is the most efficient social networking platform for businesses in Australia?
2. How does social networking affect businesses in Australia?
3. What is the potential future impact of social networks on businesses in Australia?
6. Research Design and Methodology
The general design of this project utilizes qualitative research practices founded upon
current market research, for the purpose of uncovering the most appropriate resources. These
qualitative assumptions have been assumed because quantitative methods would not only be
unsuitable, but also undesired. Qualitative approaches are highly effective in the
interpretation of the benefits being offered by social networks to businesses in Australia,
whereas quantitative methods would have been applicable in communicating the benefits
brought about by the various social media channels. This project hopes to analyze the basic
theories behind social networking in order to come up with new recommendations for future
qualitative opinions and research. The analysis will later inform future operations regarding
social networking for businesses based on potential marketing plans and positions.
For this project, the data collected from participants will need to be objective in nature
to allow for future testing of the theories. As such, numerical values from previous sources
will be analyzed, and the instrument for data collection will be a closed-ended questionnaire

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as based on the research questions. A five-point Likert scale will be adopted for this research
(Dibb, 2012).
In the questionnaire, the Likert scale will consist of five different options, including
SA for strongly agree, A to signify agree, D for disagree; N to stand for neutral, and SD to
represent strongly disagree. The participants will be required to fill in the questionnaire so as
to properly outline the specific advantages and disadvantages of social media and social
networking. The sampling method to be used will be random for this project; as such it will
present an advantage that will remove any biasness from the sampling technique. Similarly,
the sampling method will be easy and accurate. The sample size will consist of at least 300
respondents, all of whom will consist of consumers who can reveal realities with regard to the
disadvantages and advantages of social media (Horner & Swarbrooke, 2012).
The respondents of the project will all come from a specific media company in
Australia, because they better understand the reality behind social networking in the world of
media. The significance stated in the instrument will indicate the advantages and
disadvantages of social networking, hence providing a much clearer picture. A pilot study
involving 10 randomly selected individuals will be performed to ensure validity of the
instrument. Similarly, the instrument to be used will be adopted from previously used
instruments to ensure reliability of the data collection method (Kim & Kim, 2017). The
variables of this project entail future innovation of social media, customer outreach
effectiveness, efficiency of customer feedback, and the levels of brand awareness (Kotler &
Armstrong, 2011).
7. Research Limitations
As opposed to the wide range of benefits associated with social networking, as
outlined in the literature review section of the project, the limitations and disadvantages of

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marketing using social networks will similarly be listed for the purpose of maintaining a clear
opinion of any new marketing strategies. As such, the project will be forced to take a much
closer look at the potential negative implications and disadvantages of marketing via social
media, from the perspective of businesses, both big and small (Gratton & Gratton, 2012).
Most importantly, social media marketing is known to be quite time-consuming, hence it
often requires an entire team to work on it daily so as to yield regular outcomes and maintain
consistence in replying to customers’ grievances and feedbacks. As such, data from
individual respondents may not paint a clear picture of the disadvantages of social
networking. The project similarly, does not integrate any legal aspects, thereby does not
properly represent the legal risks involved in social networking businesses (Dougerty &
Craig, 2008).
8. Time Schedule/Research plan
The project has noted that the possible total amount of time necessary to complete the
entire project will likely be 6 months. This is because the participants are too many, and will
therefore require more time for all the respondents to fill in the questionnaire. The main task,
which is often to complete the literature review and the introduction, will not take as much
time as the data collection method, and will therefore be completed in at least 2 months. After
these sections are completed, the participants will be contacted and allowed a total of two
months to completely fill in the questionnaire. The analysis, conclusion and
recommendations will be compiled within the following two months. Hence, 6 months in
total will be required to completely finish the research project.
9. Conclusion
It may be concluded that there are several other different aspects of the proposal that
are being considered. The scope of the paper is therefore seen to have been properly
exhausted within the entire proposal. The research questions have been outlined in the form

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of the proposed primary and secondary questions that will help uncover the risks and benefits
of using social networks in businesses in Australia. Similarly, while there may be quantitative
techniques in this paper, the research design is of a qualitative nature. The potential research
limitations are however most evident in the data collection method, given that marketing is
often undertaken as a team effort in businesses. The schedule, as indicated, may also appear
to be limiting in terms of data collection, but properly allows for enough time for compilation
of the report.

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10. Reference List
Blackwell, D. et al., 2017. Extraversion, neuroticism, attachment style and fear of missing out
as predictors of social media use and addiction. Personality and Individual Differences,
1(116), pp.69-72.
Cook, N., 2017. Enterprise 2.0: How social software will change the future of work.
Routledge.
Dan, Z., 2009. The social media marketing book. US: O'Reilly.
Dibb, S., 2012. Marketing concepts and strategies. Andover: Cengage Learning.
Dougerty, D. & Craig, C., 2008. Web 2.0 Conference. In Web 2.0 Conference. San Francisco,
2008.
Evans, D., 2008. Social Media Marketing: An Hour a Day. Indiana, United States: Wiley
Publishing Inc.
Gratton, S. & Gratton, D., 2012. Zero to 100 000 Social Media Tips and Tricks for Small
Businesses. Indiana, USA: QUE Publishing.
Horner, S. & Swarbrooke, J., 2012. Leisure Marketing. Hoboken: Routledge.
Kim, B. & Kim, Y., 2017. College students’ social media use and communication network
heterogeneity: Implications for social capital and subjective well-being. Computers in Human
Behavior, (73), pp.620-28.
Klein, J.S., 2010. Update: Legal Risks for Employers Who Use. New York Law Journal .
Kotler, P. & Armstrong, G., 2011. Principles of Marketing. 14th ed. New Jersey: Pearson
Prentice Hall.

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Li, Q., 2017. Characteristics and social impact of the use of social media by Chinese Dama.
Telematics and Informatics, 3(34), pp.797-810.
Mingers, J., 2008. Combining IS Research Methods: Towards a Pluralist Methodology.
Information Systems Research, 3(12), pp.240-59.
Tiago, M.T.P.M.B. & Veríssimo, J.M., 2014. Digital marketing and social media: Why
bother? Business Horizons, 6(57), pp.703-08.
Wei, L. & Gao, F., 2017. Social media, social integration and subjective well-being among
new urban migrants in China. Telematics and Informatics, 3(34), pp.786-96.

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11. Appendix
11.1. Appendix 1: Common Types of Social Media Channels
Image 1: Types of Social Media Channels (Dougerty & Craig, 2008)