Facebook Business Event of Facebook Company

RUNNING HEAD: Business
Business

Business 1
Facebook business Event
The purpose of this paper is to enlighten the reader with the information about the
business news event of Facebook Company aligning with the PwC Australia with an objective of
implement economic and social benefits in the society. The paper is going to analyse the details
about the event and its impact of the society. The changes in the globalization and world trade
were also implemented with the occurrence of this business environment. Facebook is a
multinational organization holding a large market share of world’s most crucial industry that is
information technology. The actions conducted by Facebook highly impacts the functions of
several other companies working in the worldwide environment.
Analysing the details about the business event of Facebook occurred in the year 2018, it
should be noted that the company engaged by PwC Australia with an objective to explore the
economic and social benefits of Facebook displayed in the world. In the past years, the company
has performed several events that assisted people and companies to carry on their functions
peacefully. The PwC report stated that the corporates present in the Australian environment are
achieving profitability by making effective use of Facebook in their business activities.
Considering the economic impact of Facebook, the PwC report stated that in 2017, the SMBs
growth was supported by the extensive use of Facebook that eventually resulted in creation of
120,000 jobs in the environment. The employment opportunity raised that created increase in the
economic value of Australia to $ 16.8 billion in which 24% was retained by the regional
Australia (Social Daily News, 2019).
The report provided a list of measurable benefits that were achieved to the companies
worldwide and specifically in Australia because of the change in algorithms and account
handling activities of the company. Facebook growth removed the trade barriers from the society
and gave immeasurable benefit to the companies that were finds ways to make global entry. Use
of Facebook eliminated the geographical boundaries and made the world flat. Promotion of
Facebook in the environment increased the world trade activities by connecting the prospective
companies with each other and initiating the trade decision. Low cost access gave advantage to
small and medium companies to implement trade actions while implementing the marketing
activities cheap (Bagnoli, 2019).

Business 2
However, Buzz Feed News stated that in the year 2014, Facebook acquired messaging
service of WhatsApp for 19 billion. With the implementation of this type of acquisition activity,
the share of WhatApps has started to increase and it has left all other apps like Tumblr, Pinterest
etc. behind it. When Facebook acquired WhatsApp, the company was in vulnerable position and
was fighting for the attention of the customer. Thus, this aspect helped WhatsApp to gain
superiority in the environment with the support of Facebook (Buzz Feed.News, 2018).
WhatsApp further assisted in the growth of the company and let it reach to the places
where internet connectivity was scarce. The company helped in enhancing the connectivity
which can act as the biggest benefit to the globalization and world trade. This type of acquisition
activity significantly made a tough fight for top-notch companies to compete with Facebook in
the worldwide environment (Esayas, 2017).
Considering the potential impact of Facebook’s business actions in the worldwide
environment, it should be noted that before the acquisition of WhatsApp, the stock price of
Facebook reflected $ 54.65 and after the purchase of WhatsApp the stock price uplifted to $
78.02 by the end of 2014. Current stock price of Facebook is $ 217.80 which shows growth and
profitability of the company (Yahoo Finance, 2020). In the year 2014, the market value of the
company rose of $170 billion preceding Amazon Inc. that clearly stated the expansion activities
that Facebook after acquiring WhatsApp (Buzz Feed.News, 2018). The revenue of the company
rose from $ 7,872 billion to $ 12,466 billion in the year 2014. The net income of the
company exceeded from $1500 billion to $2940 billion in 2014. Daily active users of Facebook
in 2014 were 890 million that were 18% high from the previous year (Investor.Fb, 2014).
Total stockholder’s equity in 2013 was $ 15470 million which increased to $ 36096
million. ROE of Facebook in 201 was 10% which reduced to 8% in the year 2014 which stated
that the company increased its borrowing capacity that resulted in reduction in ROE. Further, it
should be noted that the objective of the company is to connect people around the globe and let
them share their business as well as personal actions. Increment in business actions of Facebook
helped people to connect with each other in better ways that led to online transactions in the
worldwide environment (Investor.Fb, 2018). The online e-commerce industry has become
extremely powerful because people can check the authenticity of client on this platform. Also,
Facebook and WhatsApp are nowadays being used as a medium to connect with clients and