Global Strategic Management: A Case Study of Facebook's Business and Corporate Strategies

This report discusses the business and corporate strategies of Facebook's CEO, Mark Zuckerberg, and how they have positively contributed towards the organization. It also undertakes an analysis of the external and internal environment of Facebook and the management of complex problems by the CEO using business frameworks. The report discusses the strategic tools and models used by the CEO to enhance the organizational performance and provides recommendations for the sustainability of the organization.

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Task A..............................................................................................................................................4
Examining the business and corporate strategies used by the CEO which has positively
contributed towards the organization...........................................................................................4
Task B..............................................................................................................................................5
Undertaking analysis of external and internal environmental of Facebook and the management
of complex problems by the CEO using business framework ..................................................5
Task C..............................................................................................................................................6
The strategic tools or models used by CEO to enhance the organizational performance............6
TASK D...........................................................................................................................................7
Creation, developing and designing strategic planning for Facebook by its CEO......................7
TASK E............................................................................................................................................8
Critical Analysis based on the theories........................................................................................8
Corporate examples & literature..................................................................................................9
CONCLUSION AND RECOMMENDATION.............................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategic management is defined as a process of managing the business activities
in order to capitalize on competitive opportunities that arise globally. Different techniques and
tools are developed by managers to analyse the business environment. The concept of this
phenomenon emerges by considering the effects of globalization on the corporate world.
Countries and organizations can get benefit by applying strategies for managing the business at a
global level and getting competitive advantage in the global market. To create a successful
global strategy the organizations must understand the nature of the changing environment and act
according to the dynamics of the competition in the world. There are different types of global
business strategies such as standardization, multi-domestic, export and transnational which helps
companies to sell same products and service in different countries. They have be implemented by
setting goals for international integration and planning an effective marketing strategy to get the
maximum benefit at the global level.
Facebook is a multinational organization based in America, co-founded by Mark
Zuckerberg, who was a student at the Harvard University. It became the most popular social
network platform at the global level where users are able to create profiles, upload photos, start
new groups etc. It was founded in 2004 and has achieved massive popularity all over the world.
The company has reached to different parts of the world by its attractive service and has become
a powerful tool for social and political movements. Mark Zuckerberg is one of the top
businessman in the world, he is a brilliant and hard working individual who became the youngest
self made billionaire in the world. He has been engaged in computers and software since high
school days and developed various apps and games, his most successful venture has been
Facebook which is the reason for his popularity.
The report will examine various corporate and business strategies of the organization,
external and internal analysis of the business environment, strategic tools used by the CEO to
enhance the organizational performance, strategic planning of Facebook, contemporary issue in
the strategy of the company, corporate examples and literature and recommendations for the
sustainability of the organization.

Task A
Examining the business and corporate strategies used by the CEO which has positively
contributed towards the organization
There may be different models adopted by Mark Zuckerberg in order to develop effective
strategies to bring positive changes in the organization. The model used by the CEO may be
Porter's Generic Strategies, which may be used by organization in order to determine the
effective strategy for the development of the infrastructure and market share of the organization.
The strategies followed by the CEO in this model are as follows:
Differentiation : It is the major competitive strategy which may be used by Facebook in
order to increase its popularity to generate good sales and revenue. The company may provide
outstanding and differentiated features to attract customers from all type of categories which is
one the main reason for the popularity of the organization (Benzaghta and et.al., 2021). A lot of
businesses around the world uses the platform to promote their products and services as the
platform is highly suitable for customer engagement because of its advance technical features.
Facebook may have clearly differentiated itself from its competitors such as YouTube, Twitter,
Linked etc. to give the best services to its consumers and remaining the favourite platform
among the audience.
Cost Leadership : Facebook also use cost leadership strategy but in moderation, as the
company may enjoy advantage in the market by being the market leader and allocating lower
cost for its clients to promote their brand worldwide (Xie and Karan, 2019). A larger segment
can be targeted by the clients by using the services of Facebook as it is widely popular in the
global nations. Facebook uses a competitive pricing strategy in order to dominate in the market
and acquire more market places. So the competitive pricing strategy of the company may be
partly cost leadership.
Mark Zuckerberg may be a transformational leader who focuses on building a strong
team of effective employees by motivating his employees through implementing incentives,
setting goals and providing opportunities for professional and personal goals of the individual.
He is also considered as a motivator who inspires his workforce to give their best to achieve the
organizational goals (Cooper, 2020). He aims at disrupting the market by introducing innovative
projects regularly to attract the audience towards the organization. Mark Zuckerberg has

developed an effective system for the employees to give optimum output regularly which has
benefited the organization and contributed towards the success of the venture.
Task B
Undertaking analysis of external and internal environmental of Facebook and the management of
complex problems by the CEO using business framework
The organization may use SWOT Analysis, which is an effective business tool, used to
analyse the critical factors having an impact over the business to get an idea of the internal
environment of the organization. The factors are Strength, weaknesses, opportunities and threats
for the business which are as follows :
Strengths : Easy integration with various websites and applications may have resulted in
gaining competitive advantage in the market for Facebook which is a major strength of the
business. The platform has more than a billion active monthly consumers which increases its
value at the global level. The organization may have a lot of data from the people around the
world which may help the organization to analyse the environment.
Weaknesses : The weak point of the organization may be its growth which highly
depends upon the revenues that come from advertising and its social network (Demirbag,
Apaydin and Sahadev, 2021). Facebook's may also collect private information of users which
may be the reason of its decreased demand.
Opportunities : The number of people using the platform through mobiles may show an
increase which can create an opportunity for the organization to expand and the newly elected
government in China may also open its market for Facebook after removing the restrictions.
Threats : The major problems for the business are low growth rate of the online
advertising industry as the business is highly dependent on advertising income.
Facebook may get an idea of its external environment with the help of PESTLE Analysis
which is an effective business tool used to analyse the major factors affecting the organizations
(PESTLE Analysis of Facebook, 2022). These factors include :
Political factors : This factor may put negative impact on Facebook, it may have faced
several bans in different countries as the platform is widely used for controversial political
activities. Governments may have identified the platform to spread fake news and speech.

Economic factors : The revenue of the organization gets negatively impacted by the fake
news and breach of data due to which the company may lose its customers which may lead to
decrease in profits.
Social factors : This factor may put negative impact on the organization as it may deeply
focus on generating profit and lost the ethics that the business had when it started (Shaulska and
et.al., 2021). There may be loss in the quality of the organization which leads to a negative
influence over the business.
Technological factors : This factor may put negative impact on the company as it may
be facing issues like hacking attempts and data leaks which may result in the downfall of the
brand image.
Legal factors : Various governments in countries are considering the issues faced by the
organization and imposing restrictions on the continuity of Facebook in their region. This factor
may put negative impact on the organization.
Environmental factors : Facebook may use coal power in order to generate power
which may result in the loss of the fossil fuel, nuclear gases which may lead to global warming
in the environment. This factor may put negative impact on the company.
Mark Zuckerberg may manage these issues at the company by developing a detailed
business framework, an operational framework may be guided to a company's goals, policies,
standards and training (Gilmour and et.al., 2020). The framework may set the way the company
operates a business and promotes a corporate identity .
Task C
The strategic tools or models used by CEO to enhance the organizational performance
Blue Ocean Strategy may be defined as a term which describes a market with less
competition for a product in the way for innovators. It may state that business may search for
business in which very fewer firms may operate as there may be less pressure. Mark Zuckerberg
may have applied these strategies to create an uncontested market space for Facebook (Hansen,
2020). The company may have experience positive changes in the operations of the organization
after the implementation of these strategies which may have benefited in improving its
productivity. The opportunities for the company may have been analysed by the CEO to evaluate
the outcome, competitive position, features and benefits of implementation of new strategies in
order to gain the maximum outcome for the company. The company may have applied the blue

ocean strategy to gain competitive advantage in the global market and establish its brand name in
different countries by effectively managing its operations to achieve the organizational goals.
The organization may use effective practices in order to ensure the efficiency of the
organization with the achievement of the goals that may be set by the management to acquire
more customers in new markets across different countries. These strategies may help the
business to overcome the hurdles and difficulties that arise due to tough competition in the
market. Mark Zuckerberg may be visionary who focuses on promoting innovation and applying
strategic techniques like market penetration to acquire the market by introducing innovative
products into new markets. He may take aggressive actions to expand the market share of
Facebook in order to reduce the competitive advantage of its rivals. It may allow the business to
provide services at lower costs to generate higher profit percentage in the market.
TASK D
Creation, developing and designing strategic planning for Facebook by its CEO
Mark Zuckerberg created Facebook with the coding process of Facemash. He first invented
Facemash when he was studying in Harvard. But it was closed due to the privacy policies as he
hacked the network to gather the information of the students. Afterwards he was expelled due to
this behaviour but the charger were dropped in the upcoming period.
Mark Zuckerberg then launched Facebook in 2004 which was a new version of
Facemash. When it was first launched it was restricted towards only Harvard students so that it
will help them to connect with each other. As this website for the Harvard students whose base
was the guide provided by the Harvard for the students to stay in touch. This website was further
developed to connect various other universities and colleges. For which Mark Zuckerberg asked
his friends to help him to expand its websites reach. In this some of his friends were working on
various different areas which will help to grow the website. These areas were of programmer,
site's graphics, spokesperson, etc (Pellegrini, 2020, October).
This helped him to expand his website to fulfil his vision. The main strategy for
developing and designing was to connect people of Harvard which was further extended to other
universities and then to various people. There were investment done by Napster Founder &
Angel Investor Sean Parker which helped the Facebook to expand it networks. This was the
monetary help which was given to Facebook. At first Facebook was for high school students then
it had various changes in the joining policies (Louw, and Nieuwenhuizen, 2020).

He was doing various innovation on the websites which had to face various criticism.
Those criticisms were taken in the positive way by Zuckerberg so that he can support the users
with the best platform. At that time he had various competitors, but he was creating Facebook to
build a community where the people can be brought closer. He was designing Facebook such
that the people will do not have any problem while using the application or website. This was the
attractive features of the Facebook as anyone can join the community without facing any
problem. This made the customer experience better and helped them to connect with various
known people who are scattered in the world. Mark Zuckerberg was very much inclined towards
supporting their users and the strategies he was developing was based on benefits of the users
(Sörlin, and Wormbs, 2018).
TASK E
Critical Analysis based on the theories
Resource-Based Theory provides those resources which are valuable, rare and various others
which important for the long term success of an organization. Also, competitiveness helps the
organization to give improved quality of services to its consumers (Barney, J.B., 2021).
Mark Zuckerberg had the resources which were in the form of its valuable assets. Those
friends helped in various ways which lead to the growth of the organization. They helped in
programming the website which is very important for a website to work. One of his friends was
handling the graphics of the website which makes it attractive. Another non-substitutional
position of Facebook was that its ease of use. Facebook has very easy features installed in its
programming which helps the user to have best experience when using it.
The features of Facebook are easy to use which makes it difficult for their consumer to
imitate their feature. As there were various competitors of Facebook such as Myspace who failed
because of various reasons. One of the reasons can be that it was not very easy to use for its
users. There was Friendster which failed due to site's spike which affected the company and gave
a negative impact on its servers (Bobba, 2019).
There were various innovations which were made in the Facebook which were successful
such as a person cannot imagine Facebook without that feature. Their were also various features
which failed for the Facebook and still facing various issue by Facebook. Those issues can be
such as privacy which is still there in the Facebook even after this long time has passed. This

innovation needs various technologies which help to make this innovation liked by everyone
(Damanpour, 2020).
The feature of Wall where a person can post various things had a limit which change with
various factors. This feature is also present on Facebook which help them to post profile picture
and various pictures. It also had messaging feature from start for which they have launched a
messenger application where a person can chat or call others.
They also gave an online marketplace for seller to increase their sales. This feature is
accepted by various people and giving various benefits to them. They provided a feature of Like
Button which helps the user to shows his emotion on a picture. This feature has become familiar
that a user cannot imagine Facebook without Like Button. Facebook also provided tagging and
attachments in the Wall which helps to make it more attractive.
Corporate examples & literature
If we take an example of LinkedIn which was founded in 2006 which was firstly known as
“Myspace Adults”. This provides features to various student to search for job and connect with
the recent activities in the corporate world. It also provides various employer to search for
candidates by posting the job opportunities on LinkedIn on which candidates reply if they want
to apply for those jobs. They also faced various problems in the starting which lead them to face
losses.
They help various students and the company's to connect. The students can showcase
various talents of them by completing certificates. The companies can show their culture by
sharing post related to any activities which are done on their company. LinkedIn is providing
various improved facilities which are not provided by its competitors. As they are providing
various course facilities to their users such as certificates, recommendation by their connections,
etc.
Another application can be YouTube which is famous for providing various information
as well as entertaining their viewers. This application is providing platform to various influencers
and various industries to promote themselves or their product on YouTube. Such as music
industry is uploading their songs and videos to increase its reach.
This platform is also beneficial for those who want to learn something or teach but are
not able to go to such activities. Here a user can learn and teach various concepts related to

studies or their interest areas. Currently they do not have more competitor as the popularity
which is with YouTube and innovation done by them are difficult for any other to imitate.
They also provide advertising facilities to various companies or products who are new in
the market or existing. This is how various products gained their market growth or popularity.
CONCLUSION AND RECOMMENDATION
The main problem which is associated with Facebook is that its privacy issues. This privacy
issues leads to various problem in the lives of a user. If this issue is solved by Mark Zuckerberg
then it will improve the experience of using Facebook as anyone can chat and post freely.
Facebook should also reduce their contents of advertisement as the users feel like they are
not able to experience the feature for which the use it. This also makes the user feel like their
privacy is targeted as whatever they search on other platforms it gets pop up in the feeds. They
can do this by charging the advertiser a fee which will reduce the advertisement quantity.
It is also recommended that they should delete those informations which are not true. It is
because there are various videos or content which spread negative information and some people
are affected by those informations. If Facebook is able to stop those negative content then it will
give a positive feeling to the users,
One of the recommendation can be that they should form a response team which solves
problems easily. By forming a new support or security team they can identify various scams and
malware which is there in the site.
Facebook can educate their users about the positive or negative uses of sharing things.
This will reduce negative activities which affect lifestyle of a user.
It is also suggested that they should properly verify an account before giving them the
access. It will ensure there are no such persons who can take benefit of this by creating a fake
profile.
Other recommendation can be the time for deactivation of account should either be
reduced or removed. It will help the user to generate new id and it will also not confuse their
connections.
It is recommended that they can add a feature of filter in the feed section. It will benefit
the users as they will only see the content they are interested in seeing. Also, it will help to
reduce views of negative content which leaves a negative impact on them.

REFERENCES
Books and journals
Barney, J.B., 2021. The emergence of resource-based theory: a personal journey. Journal of
Management. 47(7). pp.1663-1676.
Benzaghta, M. A. and et.al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights. 6(1). pp.55-73.
Bobba, G., 2019. Social media populism: features and ‘likeability’of Lega Nord communication
on Facebook. European Political Science. 18(1). pp.11-23.
Cooper, R. J., 2020. Pestle and mortal: the demise of community pharmacy in the UK.
International Journal of Pharmacy Practice. 28(3). pp.205-206.
Damanpour, F., 2020. Organizational innovation: Theory, research, and direction. Edward Elgar
Publishing.
Demirbag, M., Apaydin, M. and Sahadev, S., 2021. Micro-foundational dimensions of firm
internationalisation as determinants of knowledge management strategy: A case for
global strategic partnerships. Technological Forecasting and Social Change. 165.
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Gilmour, J. and et.al., 2020. Facebook-based social support and health: A systematic review.
Psychology of Popular Media. 9(3). p.328.
Hansen, M. W., 2020. Toward a strategic management perspective on local content in African
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integration. Africa Journal of Management. 6(1). pp.24-42.
Louw, C. and Nieuwenhuizen, C., 2020. Digitalization strategies for SMEs: A cost vs. skill
approach for website development. African Journal of Science, Technology, Innovation
and Development. 12(2). pp.195-202.
Pellegrini, M., 2020, October. The Intersection of Design Thinking and Website Creation:
Findings from Two Case Studies. In Proceedings of the 38th ACM International
Conference on Design of Communication (pp. 1-2).
Shaulska, L. and et.al., 2021. Strategic enterprise competitiveness management under global
challenges. Academy of Strategic Management Journal. 20(4). pp.1-7.
Sörlin, S. and Wormbs, N., 2018. Environing technologies: a theory of making environment.
History and Technology. 34(2). pp.101-125.
Xie, W. and Karan, K., 2019. Predicting Facebook addiction and state anxiety without Facebook
by gender, trait anxiety, Facebook intensity, and different Facebook activities. Journal
of Behavioral Addictions. 8(1). pp.79-87.
Online
PESTLE Analysis of Facebook. 2022. [Online] Available Through:
<https://www.marketingtutor.net/pestle-analysis-of-facebook/>

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