Global Strategic Management for Facebook: Business Strategies, Environmental Analysis, and Contemporary Issues

This report discusses the different business and corporate strategies used by Mark Zuckerberg, CEO of Facebook, and how he managed complex problems through SWOT and PESTLE analysis. It also examines the strategic planning tools used by Facebook and evaluates contemporary strategic issues using different theories. The report includes an analysis of the internal and external environment of Facebook, as well as recommendations for sustaining its position.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
Business and corporate strategies used by the CEO which has brought about positive
contribution to the organisation...................................................................................................2
External and internal environment analysis and analyse complex problems at FACEBOOK
were managed by the CEO using SWOT and PESTLE..............................................................4
Strategic planning tools...............................................................................................................5
Examine how the CEO of FACEBOOK created, developed and designed strategic planning
for FACEBOOK..........................................................................................................................6
Contemporary strategic issues in strategy by using theories......................................................7
Literatures Review......................................................................................................................8
Recommendations for FACEBOOK to sustain its position........................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
1

INTRODUCTION
Global strategic management is related to the combinations of globalization and its
implication of corporate world and business are changed drastically due to rise in globalization.
This is helps the company by employ different strategy in order to reward of trading in
worldwide market (Dutta, 2019.). Present report is based on CEO of Facebook Mark Zuckerberg
who has introduced Facebook in the year 2004 also he is responsible for setting overall direction
and product strategy for company. He is born White Plains New York in 1984, and he has
attended the high schools in Phillips Exeter Academy. He is also known as Philanthropist,
internet entrepreneur also launched the Facebook in Harvard University with his room-mates
then expanded rapidly beyond college and reaching more than one billion in the year 2012
(Lischka, 2019). He is also a chairman of META that is originally founded as Facebook also he
is responsible for setting overall direction regarding product strategy. Then, he is also co-founder
and co-CEO of Chan Zuckerberg initiative that is deal for solving the problem for toughest
challenge from the eradicating disease in order to improve education so that it can reform the
criminal justice system (Treadaway and Smith, 2019).
The main goal of CEO is to give power to people in order to share and make world
connected and open. In context of organisations it has been analysed that Facebook explains that
it believes in making connection between people in order to leading better understanding among
despite groups. The present report will cover the business and corporate strategies used by CEO
in order to positives contribution to organisation. Also, explain external and internal
environmental analysis in order to find and solve complex problem which can be managed by
CEO. Describing strategic tools that enhance the performance of organisation with the help of
Michael berg or Blue Ocean etc. Moreover, evaluating the designed planning for Facebook and
then critically analysis different contemporary strategy issue in different level of strategy uses by
company on the basis of different theories such as resources based strategy and competitiveness,
innovation and technology strategies, Blue strategy etc.
MAIN BODY
Business and corporate strategies used by the CEO which has brought about positive
contribution to the organisation
There are different business and corporate strategy used by the company but some of the
major are as follows:
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Business strategy-
 Competitive strategy- Mark Zuckerberg has adopted cost leadership generics
competitive strategy so this involving minimising the cost of doing business. Also, cost
minimization are help top minimising the pricing strategy of company when the price is
competitively.
 Engage with audience- CEO of company think about to engage mores and customers by
providing them they are can about them. Also, team is focus on to regular communicate
with their audience so that it helps to increasing the connection. By consistent reply,
comment ands engage with them helps to resolving the issue are on of major reasons of
complete business strategy (Phan, Thomas and Heine, 2020).
 Sustainable energy- Facebook has well at luxury rethinking dominant approach which is
related to sustainability by operating it on massive scale. It is facilitates Sweden, Altoona
and Lulea for powering 100% of renewable energy in hydro Lulea and wind in Altoona. Social media- CEO focus in making socials media strategy by wide appeal for significant
user base so that it helps to translate for the ad revenue. Also, company need the desire
for spending the budget on the entire platform.
Corporate strategy-
 Summarize the strategy and share with everyone- According to research it has been
analysed that there are 95% employee of company is unaware of what strategy CEO used
but at the same time Mark Zuckerberg share all the strategy with management and staff.
Also, employees are very connected to employees so that it helps to create goods brand
image of organisation as well as it helps to create value (Jaroenkitboworn, 2021.).
 Establish clear objective for business team and unit- Being a great manager it helps to
ensure that all the objective of company and key result help to design measurement
against in order to identify the performance of Facebook (McManaman, 2019). Also,
human activities are share to team so that they can work accordingly and on the basis of
financial objectives it will to establish the budget that can be used by team to achieve the
goal.
 Market standing- This is one of the measure that can be complete in order to satisfy the
customer and defining the marketing share so that it helps to strengthen customer service.
So that it will help to maintain and increase profits (Haupt, 2021.).
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External and internal environment analysis and analyse complex problems at FACEBOOK were
managed by the CEO using SWOT and PESTLE.
On the basis of PESTLE framework externals environmental analysis complex problem at
Facebook that is managed by CEO using business framework.
Political factors- Company has faced the problem regarding entry barrier in China
because of data privacy is affected in China that are managed by CEO. In addition to this,
organisations enhance the data security and privacy that are needed to negotiate with Chinese
government with the help of displaying the advertisement market in country (Moran, 2020.).
Economic factor- On the basis of economic factor it has been analysed that companies
ahs the opportunity of expanding the business internationally. That is increasing disposable
income and help to rapid growth in developing countries.
Social factors- There are different culture followed by people in country but CEO
consider this problem as advantage and manage the problem by offering different service in all
the countries with the help of corporate social responsibility by satisfy the need of consumer.
Technological factors- The major threats regarding this factor is to increase social media
companies but it is focus on to corporate with other company such as Amazon by providing
advertisements to customers so that this problem is being managed by CEO (Musonera and
Weber, 2018).
Environmental factors- Climate change is affect the company but it has deal with it by
promoting corporate social responsibility in different location.
Legal factors- When increasing regulations on online data affect the company at the same
time they managed resolving Cambridge analytical scandal issue.
On the basis of SWOT framework internal environmental analysis complex problem at Facebook
that is managed by CEO using business framework (Corejova, Rostasova and Valicova,
2020).
Strength Weakness
 Facebook has strong brand that vital for
stability and long term sustainability.
 It has diversified portfolio in order to
managing on the basis of protecting
 Use privacy concern is biggest
weakness that is affected by losing its
popularity buts it can be managed by
offering the data analytical tool
regarding data and privacy concern.
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core financial asset by investing in
Whatsapp, Instagram and Oculus etc
(Abdelhaey, 2019).
 Some scandal affect by creating
frictions in management but it can be
managed by integrating the harmony in
top level management.
Opportunity Threat
 In order to expand the business through
new acquisitions so that CEO has
financial resources that is managed for
acquiring promising technology
(Paramadita and Candra, 2020.).
 Company has faced the problem
regarding entry barrier in China
because of data privacy is affected in
China that are managed by CEO.
 In addition to this, organisations
enhance the data security and privacy
that are needed to negotiate with
Chinese government with the help of
displaying the advertisement market in
country (Sorensen, 2018.).
Strategic planning tools
Strategic planning tools are help to look at goals and plans of organizations that are need to
accomplish in order to executed well and improving the performance of organizations. There are
different types of strategic that are used by company but for Facebook study discusses Michael
porter and Blue ocean model (Stjernfelt and Lauritzen, 2020. ).
Michael Porter's five forces-
This theory is proposed in the year 1985 for competitive advantage and it is suggested that any
business should pursue the policies in order to create high quality of goods and services that are help for
taking high advantage in market. Facebook uses this model in order to emphasize the productivity growth
by focusing on national strategies.
Competition in industry (Moderate)- In the social media industry there are large number of
competitions are seen in the industry by offering equivalent services. Facebook has analysed that it
affected by the external forces by increasing the number of firms who are offering online display
advertisement so that it affect company (Arturo, Alejandro and Gálvez-Rodríguez, 2017).
Bargaining power of customer (Strong)- Company's primary source is to generate by
display online advertisement at the same time there are substitute options are available in market.
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For example, customer could advertise the services by various methods such as Radio,
Television, newspaper so that it can reach to the large audience (Chavan and Shukla, 2019).
Bargaining power of supplier (weak)- Many suppliers are available in the markets so
that this force is not affect the company more because there are many organizations that supply
digital technology so that it improve the supply chain.
Threat of substitute goods (strong)- This creates the challenge for organizations in the
social media firm by offering low switching cost and highly substitute availability are affect
Facebook by differentiate audience.
Threat of new entrants- Its impact negative on business because there are many
companies which are improving service and offers related services such as Amazon (Bekoglu
and Onayli, 2016).
Blue Ocean strategy-
This model is introduced in 2006 in order to create new concept of innovation, Facebook has
using this strategy in order to analyse the cost differentiation that are being pursued simultaneously.
According to this model the strategy used by CEO is to change the name of Facebook by Meta in order to
show the audiences that it is not about social network but also it is about metaverse by offering different
products. So it is changed from Blue Ocean to read ocean in orders to offering something existing.
However, this strategy is unproven because it can jump into Red Ocean for social Media to blue ocean it
is metaverse played in decision (Niebuhr and Gonzalez, 2019).
Examine how the CEO of FACEBOOK created, developed and designed strategic planning for
FACEBOOK
Mark Zuckerberg has developed different types of strategic planning that for Facebook so that it
helps to achieve the business objective.
He is not chained to his desk- Mark Zuckerberg stated that he does not like to spend 45
to 60- hours in a week in office because he thinks that when individual work more than 60 hours
a week it affected by less productivity. So, that they spend more time on serving the connectivity
better.
Messaging tools- It has been analysed that Facebook is spending more time on sending
private messages by using stories and forming different groups for fasting the growing forms in
orders to provide better communication. That is why CEO is focus on improving the
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functionality of tools by considering content inspiration, like in stories (Azoulay, Kim and
Miranda, 2020. ).
Changing in storage access for different regions- This is changing the storage of data
very often so that no one theft the personal information of user. In some countries they did not
selected as the centre where chance of violation is comparatively high.
End-to end encryption- This is known for very important tool that help to protect the
communication between two parties over the third party. Also, it will help to transmitted all the
information that are related to readable device regarding sender and receiver are encrypted. Also,
Facebook is intended for improving the platform security that help to feel safer and also it is
online that can be more encrypted (Barwise and Watkins, 2018.).
Interoperability- This is the ability of many other systems which are work together in
order to provide services and also interact with each other. This is the goal of CEO to provide
customer regarding sending message with the help of application. This can be work for business
as well as individual in order to provide streamline communication and process.
Calculating risk- According to the history it has been analysed that CEO of Facebook
find all the track record by bolding moves (Coursaris, Van Osch and Balogh, 2018). Also,
Zuckerberg strategy to calculate the risk in order to company in pubic 2012, also it bought
Instagram for 1 billion dollar and the Whatsapp for 19 billion dollar and planning for future to
buy mobiles also.
Contemporary strategic issues in strategy by using theories
There are different issues which are managed by CEO related to strategic issues then study will
discuss on the basis of critically analysis such as follows:
Resources based reviews and competitiveness- On the basis of resources based reviews
it has been analysed that there are important roles played in Facebook’s success by making the
competitive advantages in orders gaining market success. On the other hand it can be tough to
understand by CEO that the entire intangible and tangible asset can make the part of the biggest
influence regarding competitive advantage (Horwitz, 2019. ). Also, companies has mores than
850 million users globally that help to create as the biggest asset of company by making
database. In the contrary not it has been analysed that there are some competitors of company
such as Path and Google++. Sometimes the user are divided that affect the strategic planning of
the Facebook.
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Innovation and technology strategies- It has been analysed that innovation and
technology strategies are used by CEO for creating the network effect machine so that people
can power but it can be affect in negative ways for becoming dominant. Then Google scared of
Facebook in context to technology innovation also they have strategy that can be work well for
the company by attracting more customer and Zuckerberg innovates the ideas for searching
better than Google (Ercin and Hertwich, 2019). However, sometimes Facebook innovations
strategy been criticised in orders to despite the fact by making most popular social network and
this one that helps to make buzz regarding the value of social networks. On the contrary note it
has been analysed that Microsoft has biggest action whiles making update XP at that time’s the
strategy of Facebook get despites and looked for making more money by help Microsoft for new
IPO in orders to make benefit of the company.
Blue Ocean strategy- This model is introduced in 2006 in order to create new concept of
innovation, Facebook has using this strategy in order to analyse the cost differentiation that are being
pursued simultaneously. According to this model the strategy used by CEO is to change the name of
Facebook by Meta in order to show the audiences that it is not about social network but also it is about
metaverse by offering different products (Hoffmann and Proferes, 2018). Moreover, it is changed from
Blue Ocean to read ocean in orders to offering something existing. However, this strategy is unproven
because it can jump into Red Ocean for social Media to Blue Ocean it is metaverse played in decision.
Literatures Review
According to (Zou and Cavusgil, 2020) Global business environment is one of the most
important factors that any businessman can consider in order to identify the financial stability
and strength. This is the most important opportunity that can help the organisation for growing in
different market. ..Stated that success of business online depend on the choosing the right
country that help to transact by having ability for negotiating the country policies and rules.
However, there are many countries which are related to investing in others countries because the
competition is comparatively low. So that domestics country males profit with the help of
developing country. For example, Toyota of Philippines are considered domestic firm in other
branch but at the same time (Fundingsland Tetlow and Hanusch, 2020) argued that international
business should involving all the dimensions of foreign environment. Then the export and import
can be most complex for the domestic by paying more tariff and taxes so the revenues of the firm
might be affected. For example, CEO of Facebook managing the companies in almost all the
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countries but at the same times some of the barriers are faced by company. Such as China has
banned Facebook by considering it has leaking the official and personal information of the user.
Then CEO manage it by making other strategy that helps to provide personal search engine that
stores all the data and security in order to makes the company’s global (Garrett, Beard and
Fiesler, 2020, ).
Recommendations for FACEBOOK to sustain its position
 It has been recommended that Facebook should use the strategy for having clear goal so
that it helps to attract more and more company in order to make better investment. Also,
give chance to small business so that they can collaborates and to improve the customer
base. It is necessary to create the environment positive which helps to maintain the good
position in the market (Garrett, Beard and Fiesler, 2020,).
 It is also suggested that organisation should focus on encouraging people so that can
comment on picture and video in order to maximises the customer service and it will
make the connection better. Then to provide emotional content to user regarding their
family and friends so that they can create positive relation and encourages other to join
Facebook.
 It has been recommended that it can easy to attract large number of audience by creating
the content for human voice fort the business like increasing collaborations with small
business, influencers, trending people and business etc. It will help to increases the reach
of services than people excited to join on daily basis (Ohm, 2018).
CONCLUSION
It has been concluded that global strategic environment help the organisations to change
different policies which are helps in order to stand with globalisation. Present study based on
Mark Zuckerberg who is CEO of Facebook and he is responsible by making all the strategy
regarding innovation and technologies. Also, report discussed problem and issues that can be
managed by CEO while using corporate and business strategies in order to contributed in
organisation. Then analysed the external and internal environment by using SWOT and
PESTLEs framework regarding complex problem. Moreover, examined the strategic planning
tool that is created by CEO of Facebook such ass Blue ocean model, porter five forces etc.
Further, critically analysed the different contemporary strategic issue regarding different level of
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strategy such as resource based strategy and competitiveness, innovation and technology and
support with literature review and example.
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