Global Strategic Management: Analysis of Facebook's Business and Corporate Strategies

This report analyses Facebook's business and corporate strategies, including external and internal environment analysis, strategic tools utilised by the CEO, strategic planning, evaluation of contemporary strategic issues, and recommendations for sustaining its position in the market.

GLOBAL STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A Business and corporate strategy for positive contribution to organisation..............................3
B External and Internal environment analysis.............................................................................4
C Strategic tools utilised by FACEBOOK CEO for organisational performance.......................6
D Strategic Planning....................................................................................................................7
E Evaluation of contemporary strategic issues in strategy and level of strategy used by CEO of
Facebook......................................................................................................................................8
Literature review..........................................................................................................................9
Recommendations for Facebook to sustain its position..............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management refer as the effective process to set the goals, objectives in order to
make the business more competitive in their market field. Generally, with strategic management
organisation aims to deploy effectively their resources and employees for producing better and
efficient outcomes (Hitt, Ireland and Hoskisson, 2019). It helps the businesses in order to give
the proper direction by creating the effectual plans for designing the objectives and then assign
the resources accordingly to support the strategic plan. Thus it overall guides the business to
effectively compete in the market and to give the forward direction to the business. Facebook a
Social media and social networking platform which is founded by the Mark Zuckerberg.
Company aims to powering the people and to develop the community. Following report will
cover the business and corporate strategies which is implemented by CEO. It will discuss the
external and internal environment analysis and the way CEO manages the complex problem of
company. It also covers the strategic model used by CEO of Facebook and critically analyse the
different contemporary issues found in strategy. It also lays out the recommendation for the
company to sustain its position in the market.
MAIN BODY
A Business and corporate strategy for positive contribution to organisation
Corporate strategy refers as the desired destination for which the business move, that
strategic decisions shapes all planning and strategies in each part of business. Strategies which
are used by the Mark Zuckerberg that have shaped their organisation are as follows:
Have conviction: Starting or running a company requires a specific strategy which keeps the
work place environment goal oriented. Zuckerberg always thinks positive and also make their
team to stay positive and carry out the operational task which they have design. As for their news
feed feature people criticise them but they continue their work and not it become a successful
feature of their Facebook company (Petera, Wagner and Šoljaková, 2020). Thus having
convictions helps in deciding when to take the feedbacks.
Develop a long term team: Team work always plays an significant role it contribute maximum
potential in work and make it efficient in every manner. For the company like Facebook, CEO

believes in building a long term team which helps in creating chances for the innovation and also
helping the new hiring to become more skilled full to excel their work. Productivity always
comes from the work culture; therefore, CEO of Facebook allows the employee to share their
views they provide them openness culture so that their suggestions will help in effectual decision
making. They hire better talent for their work who have technical knowledge and strong
determination towards the work, thus it leads them to develop a proficient team that are highly
dedicated towards their work (Svatosova, 2020).
It is found that company follows the transformational leadership style, which helps them
to lead, motivate and inspire the team to adapt the change and to develop the innovation
opportunities. Thus this leadership style also helps the organisation in shaping their healthy and
innovative work culture, that lead the company in driving good revenues as well as to acquire the
whole market. Company’s positive growth is developing due to their fast changes and adaption
in planning and adaption, continuous innovation makes the firm to excel in their field.
B External and Internal environment analysis
SWOT analysis: A framework implemented to evaluate the organisational competitive position
to forming strategic planning.
Strength: Main strength of Facebook is their strong brad which provides them long term
stability and sustainability. They also have the diversified portfolio with the major WhatsApp,
Instagram and Messenger etc. application are main strength of company (Chereau and Meschi,
2018). Other strength is loyal consumer base which helps the company to become more
successful.
Weakness: Company have been facing problem with maintaining the user privacy which lead
them a ton of loss, they are also facing problem in controlling the misleading information for
which they have faced lots of criticism.
Opportunity: Although company have diversified portfolio but still social media industry is the
biggest opportunity to extend business. to target other audience as well, company has the
customer which are mostly younger and tech savvy, thus by providing high tech platform will
help in targeting older people as well.
Threat: Competition is the biggest threat for the company also increased new regulations also
causing threat situation for Facebook (Widyanto and et.al 2019).

Pest analysis: It helps in determining the external factors and their impact over the
organisational operations for becoming competitive in their field.
Political: Political stability plays an significant role in shaping the business. As for the Facebook
political stability in developed countries present opportunity for the company, but company also
suffers from the political obstacles in China. Thus this factor have the ability to slow down
company’s business regarding their security and privacy issue.
Economical: Company has great chance for enhancing their market penetration efforts to
increase the economic stability in different countries (Stead and Stead, 2019). Rapid economic
growth in developing countries providing opportunity for company to grow their revenues.
Social: Changing socio cultural trends offering chance for company as enhancement in
preference for high qualitative service are the opportunity for company. Also due to increment in
online purchasing is also driving good change in their return.
Technology: As the Facebook business is mainly discovered on the online technologies. As the
use of smart devices are the good chance. It is also found that rising social media corporation is
creating threat chance for firm.
Porter five analysis:
Strategic analysis tool which helps the business to review their strategy and make it
efficient to compete with their rivalries.
Bargaining power of customer: For the company like Facebook, their consumer power is high,
they create strong impact over the business. As company offers the better social platform service
to their user. Thus it is important for company to provide better customer experience in order to
retain customers.
Bargaining power of suppliers: For Facebook there is minimum issue regarding the suppliers
in their online advertising. However, company is approaching to manage the suitable relationship
with the suppliers for supporting their supply chain.
New entry threat: As for the company this threat is somewhat lower because it is more
complicated and difficult for the firms to develop popular social media brand like Facebook
(Veselovsky and et.al 2019). Thus it is the minimal issue for Facebook company.
Substitute threat: This external factor exerts more impact over the Facebook’s business as the
availability of the substitute services in the market are creating threat for the company.

Competition rivalry: Competition for the Facebook is intense although they have good position
but still there are companies who give strong competition. For example Google company creates
the intense competition when it comes for advertising.
To solve the complex problem, company usually review their strategy and make the
effective measure also allows employees to give suggestions to solve the problem in efficient
manner. As for their privacy issue company works in collaboration with government to enhance
the security and safety at Facebook platform (Fedushko and et.al 2021). Facebook business
model is mainly based on providing their efficient tools and other services at free of cost to their
billions of users and then develop the revenue by enabling the businesses to present the
Facebook’s users advertise.
C Strategic tools utilised by FACEBOOK CEO for organisational performance
Strategic tool refers as the frameworks, approaches, techniques that helps the businesses in
order to develop their own strategy to run the business. Facebook company always begin with
the unique approach; continuous innovation helps them in enhancing their organisational
performance.
Porter generic strategy: There is three type of competitive strategy which the organisation
follow-
Cost leadership: In this organisation usually cut down the cost and become a low producer in
their market field. It helps in maximising the revenues by reducing cost. Also helps in enhancing
the market share by maximising the sale of product and service due to low cost.
Differentiation: This strategy suggests to develop the products and services unique from other
business rivalries. It relies on the market environment which helps the organisation to design
products so that customers can easily differentiate with other’s. it mainly requires the better
research and main focus on innovation.
Focus: Organisations who utilise the focus strategy mainly focus on niche market, as by
knowing the market dynamics to deliver unique affordable product to customer (Tsangas and
et.al 2019). This strategy is mainly use to develop the good brand for developing potential or
loyal customer base.
However, It is identified that Facebook company uses the cost leadership generic strategy
which helps them in reducing the costs for doing business.

Blue ocean strategy: It is referring as the market for the specific commodity which mainly not
have the competition or can be little competition. This strategy is all about to search for the
business for which there is only few firm operate and also no costing pressure has been found.
Facebook company uses the blue ocean strategy to develop the awareness of their business in
new market place for developing the potential demand amongst the customers. With this strategy
Facebook company is able to develop the market boundaries from strategic actions taken by the
firm. Thus with this company is able to search the new market for their business expansion, thus
it all creating good values in their business.
D Strategic Planning
Strategic planning refers as the efficient process where the leader of the organisation set the
vision and develop the goal and objective for the better business performance. This process also
involves the developing the sequences where the goals reflect as realised so that firm can
proceed to accomplished their stated vision. As for the Facebook company their mission
statement is to provide the better services to the people, as power to share and develop the world
more connected. As company is aiming to utilise the solar power drones, develop hardware that
enhance the good internet connectivity in dense urban region, also to allow the artificial
intelligence technology for learning about the information about as what the audio, images are all
about (Sitorus and Fontana, 2021). Company is mainly looking for improvising their image
regarding security and privacy measure for the Facebook platform and also looking for
continuing their monetisation strategies for the WhatsApp platform.
Merger and acquisition strategy for Facebook, s the company is continuing acquiring the
promising companies so that they will use its benefit to develop their revenues in market. This
strategy is also helping the company to manage the developing and well structures user base with
the good return. Thus company aim to improvise their services and to provide the better social
media services to their customer, employees are highly potential and motivated towards their
work. Thus overall working culture enables the company to efficiently deploys the strategy for
growing their market share and to become successful in their market field. Company’s CEO’s
constant support and motivation or knowledge helps in strategic planning, they allow their
employees in town hall meetings to speak out even allow to correct the CEO by their good

suggestion. Thus all will lead company to grow in their market field and drive good values for
their company.
E Evaluation of contemporary strategic issues in strategy and level of strategy used by CEO of
Facebook
Contemporary strategic issues affect the organisational business at great extent thus it is
required for the businesses to develop the strategy for solving all issues. Therefore, innovation is
also a contemporary strategic issue as it is the main issue which the businesses deal with absence
of innovation impacts the business can also lead to lowering revenues. For the Facebook
company innovation is the major concern due to this they are acquiring and collaborating with
other organisations as well in order to meet the customer’s need (Phadermrod, Crowder and
Wills, 2019). Another contemporary issue is technology, as emergence of new technologies
developing the chances for the businesses in order to provide better and fast services to the tech
savvy customers. As for the Facebook company they are approaching to initiate the new venture
that is based on the virtual reality, it generally requires the next generation technical skills or
technology. Thus it is also a challenge for the company. As for the level of strategy Facebook
company approaches the Innovation strategy where they implement the new changes but do not
ask for their user’s approval. As the company is developing the “Network effect equipment”
which is very efficient ad dominating, thus because of this company like Google is scared of
Facebook’s innovation strategy. Resource based strategy it suggests that the resources which are
rare, hard to imitate, valuable makes the organisation to move towards the long term success.
Facebook company manage all their resources as Equipment they are the tangible resource they
maintain it for better operational purpose. As company’s well organised resources allows them to
give tough competition to their rivalries.
Competitive strategy of Facebook is to implement the cost leadership strategy which
helps them in develop better brand reputation as by providing the services at low or affordable
cost. Thus company’s capability to develop and deliver the better or unique services will lead
them to rule their market region or to acquire the large market share. Large customer base also
develops the competitive edge for the company so they can easily expand their services for good

revenues. Thus with overall implementation of the better strategies Facebook company is able to
grow in their market also to keep their higher position world-wide (Sharma and Sehrawat,
2020).
Literature review
According to the view of Lee and et.al (2019) Facebook company uses the various strategy
that helps in driving the better revenues for their business. as company uses the cost leadership
strategy, it allows them to cut down the prices over their services, as they utilise the computing
technologies for increasing the efficiency of their social sites. Other corporate like Amazon also
uses the cost leadership generic strategy to minimise their operational cost by providing valuable
products and services to the customer. Author also said that Facebook company also uses the
diversification strategy to cooperate with their growth strategy. Their main aim regards the
intensive growth process to develop their new business as to expand it for better business
position. Thus company have acquired the Oculus VR firm to provide the VR virtual reality
technology that supports their social sites services. Facebook company’s major acquisition are
WhatsApp and Instagram. As Another Firm Google also adopted the acquisition which express
as “related” diversification, company’s main purpose is to develop the products and services that
improvise their market position.
It is also found that other big corporation Amazon is also using the diversification strategy
for developing their business. with this organisation is aiming to improvise their market stocks,
as Amazon web service (AWS) is the better example for their diversification strategy, it is
extremely supporting the organisational business to increase their market share. It is found that
company is also using the transformational leadership style which makes them to improve their
work culture and to develop goal oriented team who are highly dedicated towards their work. As
company like Apple, IBM, Microsoft all are using transformational leadership style to grow their
business in computer industry with good and motivated work force (AL-NABULSI). Therefore
Facebook company have unique approach to run their business and with their unique strategies
company is able to develop their growth and as well as able to maintain their global position.

Recommendations for Facebook to sustain its position
Facebook company is itself a good brand in global market, their position specify that they
are having better market share. Because of continuous experiments with the new technologies
and strategies all helps the company to grow their revenues and to develop better competitive
edge to their business. Although regarding privacy and security issue company had to face
criticism which also affects their business. thus it is important for the organisation to develop a
solution for solving privacy issue. Company also require to continue their monetising strategy for
the WhatsApp and other Messenger platform, as Those platform have the great range of
customer base and also a great source for developing revenues. Thus it is important for the
Facebook to not stop monetising their platform (Kurniati and Nurcahyo, 2018). It is found that
company’s competition like YouTube is providing the efficient payment option which is creating
hype in the market, thus company also required to come up with the plan to provide safe and
secure payment option, it will help them in developing loyal customer base as well as helps in
generating good revenues.
Another recommendation can be company can also proceed to increase their concentration
on developing hardware and software. As company can commence with creating an app that will
help in attracting the younger customer as well as provide them facilities which fulfils all their
needs. They can also begin to add games in their application which catch the attention of the
children. Thus company can also increase their focus on new technologies to provide the services
which the user never had imagined. Therefore all will help the company in sustaining their
market position or to become more successful to give tough or cutthroat competition to their
rival businesses.
CONCLUSION
From the above report it is concluded that development and deploy of the strategy helps the
organisation to streamline their services. With the help of strategic management businesses are
able to allocate the resources accordingly and to make sure their effective use for driving
revenues. Following report have illustrated the business and corporate strategies that is used by
the CEO of the company to contribute the positivity in work place system. It also discuss the
internal and external analysis of the organisation that covers the SWOT, PEST and porter five
force framework also discuss how company manage their complex problem for better business

performance. Moving on further report illustrated the strategic tools that are implemented by the
organisation that covers the porter generic strategy and blue ocean strategy for organisational
performance. It also discuss the strategic planning and contemporary strategic issues found in
strategy, report lastly concluded with the literature review and with some recommendation that
made for the organisation to sustain their growth and position.

REFERENCES
Books and journals
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