Strategic Management of Facebook by CEO Mark Zuckerberg

This report analyses the strategic management of Facebook by CEO Mark Zuckerberg. It includes examination of business and corporate strategies, internal and external environment analysis, strategic tools and models used by CEO, and ways in which CEO creates strategic planning for Facebook.

Global Strategic
management

Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................2
Examination of business and corporate strategic used by CEO to get positive contribution to
organisation .................................................................................................................................2
TASK B...........................................................................................................................................3
Undertaking of Internal and external environment analysis and analysation of complex
problem at Facebook managed by CEO through using business framework .............................3
TASK C...........................................................................................................................................5
Description of strategic tools, model used by CEO of Facebook to enhance organisational
performance ................................................................................................................................5
TASK D...........................................................................................................................................6
Examination of ways in which CEO of Facebook create, design and develop strategic planning
for Facebook ...............................................................................................................................6
TASK E............................................................................................................................................9
Critical analysation and evaluation of different strategic issues in strategy among different
level of strategy used by CEO of Facebook ................................................................................9
Recommendation ..........................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management can be described as process for decision making as well as planing
that leads to development of effective strategies in order to assist organisation for attainment of
objectives of company. It is a process that assist company for determining objectives and allow
allow them to make various strategic decisions (Alliance, 2019). Style of leadership create
impact over conflicts and also desire of different entrepreneur activities in business. It is a style
in which CEO of company determine ways to maintain trade-offs. It is a style that create
influence over corporate level and also ensure over different activities of business.
Mark Zuckerberg is the CEO of Facebook and an internet entrepreneur who is carry out
business in marker. He is co-founder of social media website Facebook and is current CEO,
chairman and controlling shareholder of company. Entrepreneur was born in the year 1984 at 14th
May in New York, US. In the year 2004, Zukerberg has writing a code for new websites by
following semester and launched this website with partnership with his room mates.
Entrepreneur with his efforts and leadership style provide success to business and make
Facebook as one of leading social media platform.
Facebook was founded in the year 2004 by Mark Zuckerberg in US. It is an American
multinational company that is based in California. It is a parent company for Instagram,
Whatsapp as well as other subsidiary company. It is among top American company based on
information technology. This project report includes examination of business and corporate
strategies used by CEO of company that contribute positively (Bailey and et. al., 2018 ). It also
consider internal and external environment analysis in business that assist them for identification
of problem and also managing framework in business. It also describe strategic tool and model
used by CEO of Facebook that enhance performance of organisation. It also examine ways in
which CEO of face plan, design and develop strategic planning of Facebook. Moreover, it
critically analyse and evaluate strategic issues of company in order to identify strategic issues in
business.
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TASK A
Examination of business and corporate strategic used by CEO to get positive contribution to
organisation
Business strategy can be described as competitive moves as well as action used by business to
attract customers, compete in market successfully, provide strength to performance an also assist
them to attain goal of company. There are different types of strategies adopted by Facebook in its
organisation that provide them guidance for getting success in market.
Porters generic strategies: These are the strategies which are introduced by Michel Porter that
provide understand about core strategy of company. It allow Facebook to overcome of
competition and expand its marketing share (Ansoff, and et. al., 2018). It mainly consist four
strategies and explanation of these in context of Facebook are mentioned below:
Cost leadership: It is one of strategy in which organisation focus on offering lower price
possible by them by reducing cost of company. It allow them to target large market share by
offering lower prices for products. It allow Facebook to increase market share and also increase
reach of its products.
Differentiation: It is another strategy in which organisation is focusing on adoption of
innovation that allow them to offer distinct products in market. Facebook is providing
networking business and also adopting unique feature in organisation.
Focus strategy: It is a strategy in which organisation is focusing on niche market with adopting
of both cost focus as well as differentiation focus. Facebook is adopting this strategy as it is
providing lower prices service with unique features to user.
BCG Matrix model:
Boston Consultancy Group Matrix is a tool which is designed to assist companies for long term
planning and also allow them to get growth opportunity through review of portfolio of products
to invest, develop products and take decision to discontinue of products (Beirman, 2020). It
consist different categories which in context of Facebook is mentioned below:
Star: It includes products that has high growth as well as high market share. Instagram is one of
platform offered by Facebook that ha high market share and also has high growth in market. It is
a growing company which is used to 700 million user within two years.
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Question Mark: It is a category that has low marketing share but has high growth in market.
Facebook has Oculus that has hardware and software products offered by company. Zuckerberg
is investing around $3 Million in this company in next decade.
Cash Cows: It is a category that get high market share but low growth in market. Whats app is
included in this category as it does not have growth opportunity but still this have high market
share (Chabowski, and Samiee, 2020).
Dogs: It is one of category that includes product that have low market share and does not growth
opportunity. Message by Facebook fall in this category as due to increasing use of Whats app,
people are not using this app.
TASK B
Undertaking of Internal and external environment analysis and analysation of complex problem
at Facebook managed by CEO through using business framework
External analysis: It is an analysis which is used by companies in order to identify factors that
are present outside business. In order to conduct identify factors in external analysis, managers
can used PESTEL analysis. Explanation of different factors of PESTEL analysis are mentioned
below:
Political Factor: There is political stability in develop countries like US, Canada, Germany,
France and others that provide opportunity for Facebook. Government also providing support for
globalisation which provide opportunity to social media platform (Dzikowski, 2018). Social
media is one of platform which helps government to speed up globalisation.
Economic Factor: Economic growth provide opportunity for business for Facebook as it allow
company to improve its infrastructure in telecommunication industry. There is also increase
among disposable income of people that allow them to invest on products and service offered by
companies of other organisation through advertisement.
Social Factor: There is increasing trend of online shopping among customers of United States
that provide opportunity to Facebook as it allow them to increase number of advertisement of
other companies on its platform that will allow them to generate more income.
Technological Factor: People in today's time increasingly using smart mobile phones and
internet connection. It provide opportunity for business of Facebook as it allow them to increase
number of user for company.
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VRIO analysis: It is an internal analysis which provide opportunity to business of Facebook to
analyse internal resources of company and provide them competitive advantage. Resources of
company can be measure on basis of Values, Rareness, organisation and Imitability (Gaur,
2019). Explanation of different resources of company in context of Facebook are mentioned
below:
Valuable resources: Resources can be consider as valuable when it allow firm to attain
competitive advantage. It allow firm to improve efficiency and effectiveness of company and
also provide them various opportunity. Facebook has valuable employees, resources, patent as
well as distribution channel.
Rare resources: Resources can be considered by companies as rare if it can be possessed by
only few companies and other platers cannot be access to these resources. Facebook has rare
financial resources as it is a leading company, patent and distribution channel.
Imitable resources: Imitable resources are those resources which cannot be copied by other
organisation. Facebook has imitable resources which cannot be copied by company like they has
rate distribution and patent resources (Gillespie and Swan, 2021).
Organised: A company can take advantage of resources if it is organised in effective manner.
Facebook is organised its resources in effective manner that allow them to get competitive
advantage in market. Facebook has organised its distributive in effective manner that allow them
to get advantage in market.
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TASK C
Description of strategic tools, model used by CEO of Facebook to enhance organisational
performance
Gap analysis model: It is one of strategy model which is used by companies in order to compare
actual performance with desired performance. It is a model which used to identify goals,
structure, technology, skills that assist company for attainment of goals of company. Facebook
can use different model for purpose of identification of gap including Ansoff Matrix, MC Kinsey
model.
McKinsey model:
It is a model which helps business to analyse organisation design of company. Goal of this model
is to identify ways to improve effectiveness of organisation through 7 model which are
mentioned below:
Structure: Structure of Facebook provide ways in which company organised chain of command
as well as its accountability relationships form in organisation. Structure of company allow them
to attain goals and objectives of company (Haldorai, Ramu, and Murugan, 2018).
Strategy: It refers to business plan that allow them to develop plan of action for attainment of
competitive advantage through reinforcing mission and values of company. Facebook has
develop various strategy like differentiation strategy that allow them to get competitive
advantage in market.
System: System of Facebook allow company to develop technical infrastructure of work that
develop workflow as well as chain of decision making of company.
Skills: It forms capabilities and competencies of business that allow employees to attain goals of
company. Facebook has skilled and capable employees that allow them for attainment of goals
and objectives of company.
Style: It can be described as attitude of senior employees of company that allow them to
develop code of conduct of business through interaction as well as symbolic decision making and
allow them to form management style of leaders (Hitt, Ireland and Hoskisson, 2019). Facebook
is adopting effective style of leadership in which company allow employee to participate in
decision making process.
Staff: Facebook gas skilled and qualified employees as it provide proper training and
development opportunity to business.
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Share Values: Mission and objectives and values of Facebook form its organisation and allow
them to develop design of organisation.
Porters five forces model:
it is a model that allow business to analyse competition within industry and was introduced by
Michel E. Porter in the year 1979. Explanation of different factors included in this model in
context of Facebook is mentioned below:
Threat of New entrants: New firm cannot enter in social media business as there is huge
competitors in industry and it require proper knowledge of this platform. Therefore, Facebook
has less threat from this factor (Lynch, 2018).
Bargaining power of supplier: Facebook is a leading company and cannot depend on single
supplier for its business. It is taking suppliers from suppliers in different parts of world.
Therefore, it get less threat from this factor.
Bargaining power of buyer: Customers are addicted with social media platform of Facebook
and does not get much choices. Therefore, buyers does not have high bargaining power.
Threat of Substitute: There are substitute social media platform available in market that create
threat for business of Facebook. Therefore, company has threat of this factors as people change
their habits.
Competition within industry: There are numbers of players who are providing its service in
social media platform like Snapchat, Twitter, Pinterest. It create high threat for buisness in
market (Prideaux, Thompson, and Pabel, 2020).
TASK D
Examination of ways in which CEO of Facebook create, design and develop strategic planning
for Facebook
Strategic planning: Strategic planning is defined as the process that helps organisational leaders
to determine their vision for future and analyse their goals and objectives for an organisation.
There are some models and approaches are used by the Facebook to design their strategic
planning are mentioned below:
SWOT Analysis: SWOT analysis helps organisation to identify their strong and weak
areas as well as opportunities as well as threats of external environment. Through analysing these
factors business can take efficient decisions.
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Strengths Weaknesses
 Facebook provides better quality
experience to customers that help
organization to maintain business
reputation in current market place
(Wenzel, Stanske and Lieberman,
2020).
 There are various application and
websites of Facebook that enhances
organizational market share and
customer base.
 Lack of differentiation among various
product of organizational portfolio.
 Facebook also facing internal
competition from other applications
such as Instagram and WhatsApp that
can create issues regarding business
future.
Opportunities Threats
 Tapping in emerging economies and
market will help the Facebook to gain
higher future growth and development.
 Facebook maintains transparency with
users as well as make sure that it
safeguards customer data and
information that will help organization
through maintaining effective
relationship with customers.
 There is vast competition in faced by
the Facebook because other
organizations tapping in market with
new featured products.
 Fake accounts, hacking instances and
incorrect news reduces the credibility of
Facebook.
Ansoff's matrix
Ansoff matric is defined as the strategic tool that help organization to develop effective
planning and create effective and right strategies that plays important role in business growth and
development. Ansoff matrix in the context of Facebook is defined below:
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Figure 1, Strategic Growth with the Ansoff Matrix
 Product development: Product development business strategy is related to introducing
new product in existing market place with the objective of attracting higher number of
customers. It helps organization to enhance overall revenue of business.
 Market development: Market development is the strategy in which organisation tries to
launch its existing products and services in new market place in order to increase
business market share (Rugman, and Douglas, 2018). It helps business to improve their
profitability and performance level.
 Market penetration: In market penetration strategy, business concentrates on proving
existing products and services in existing marker place to attract more customers. There
are various actions are taken by organization such as increase advertisement, reduce price
as well as provide them complimentary services that help them to improve market share.
 Diversification: Diversification is the riskiest business strategy in which business
introduced new product and new market place. High level advertisement is required in
this strategy.
CEO of Facebook should use product development strategy in which organization need to
analyze customer’s requirement than provide them similar products that attract them towards
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organization. As social media become popular in current market place that helps organization to
generate higher revenue.
Performance Indicator and key risk indicator
There are various key performance indicators are used by the organisation to analyse
their performance and other associated risks. Facebook also uses some KPIs that help
organisation to analyse risks and take better decisions that are mentioned below:
 Benchmarking is the effective key performance indicator that is used by the Facebook.
It enables organization to compare its actual outcomes standards one and find out
variances in performance. Benchmarking facilitates organization to attain its determined
goals and objectives with efficiency and effectiveness.
TASK E
Critical analysation and evaluation of different strategic issues in strategy among different level
of strategy used by CEO of Facebook
There are different types of contemporary issues that are faced by the organisation that also
directly impact on organisation performance and efficiency. Some strategies are used by the
Facebook to overcome these issues with efficiency. Some strategies are mentioned below:
Resource based view strategy
It is defined as the managerial framework which is undertake by organization to identify
organizational strategic resources to gain sustainable competitive advantages. Business have
tangible as well as intangible resources. Facebook uses all these resources in efficient manner to
get higher outcome and perform operations properly.
Corporate level strategies
Corporate level strategies are used by the organization to define all business and
accomplish all defined goals and objectives. Facebook uses certain business strategies that help
organization to expand business operations in global market. These strategies are mentioned
below:
 Joint Venture: Joint venture is considered as the arrangement in which two or more
organizations come together than they use their resources to attain common goals and
objectives. Facebook, get more benefit through expanding business at international level.
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 Acquisition: Acquisition is related to purchasing share of another organization to control
their actions and run operations accordingly. This helps the small business to get expand
in the large market and generate revenue.
Process and Product Innovation Model
Innovation process model is defined as the method of bringing new ideas as well as inventions
into reality as a product. Some aspects of model are defined below in the context of Facebook:
 Product: Product is considered as the first element that comes into mind when anyone
thinking about the innovation. Facebook introduced new products and services in the
market to expand market share.
 Process: Process is defined as the process to deliver things to customers with efficiency
that help organization to generate higher revenue and gain competitive advantages over
other competitors.
 Position: Position is defined as the image of organization in the mind of customer.
Facebook provides quality experience to customers that help business to maintain
differentiate positioning.
 Paradigm: Paradigm is the concept that enable organization to identify how policies are
framed and how they are implemented.
Recommendation
It is recommended to the organization to implement product development strategy that
help business to attract customers through provide them their required products and services. It is
suggested to organization to develop effective market strategies and implement them with the
objective of enhancing awareness in market regarding business products and services.
Organization need to access customized website as well as strong business model with the
objective of expanding market and gaining competitive advantages. It is advised to Facebook to
conduct research to analyses customer’s needs, demands and preferences than provide them
products accordingly to gain higher competitive advantages.
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CONCLUSION
From above mentioned project report, it can be concluded that global management strategy are
one of important strategy for business. It is essential for business to develop effective strategy in
business that allow them to get advantage in market and also to over come of competition in
market. In order to get opportunity in business, they can use effective model that identify factors
present in environment and create impact over operation like PESTEL analysis, VRIO analysis,
SWOT analysis and others. Business can also use other strategy mode that allow them to
formulate corporate business strategy that allow them to manage operation of company in
effective manner.
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REFERENCES
Books and Journals:
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Bailey, C., and et. al., 2018. Strategic human resource management. Oxford University Press.
Beirman, D., 2020. Restoring tourism destinations in crisis: A strategic marketing approach.
Routledge.
Chabowski, B.R. and Samiee, S., 2020. The Internet and the International Management
Literature: Its development and intellectual foundation. Journal of International
Management, 26(1), p.100741.
Dzikowski, P., 2018. A bibliometric analysis of born global firms. Journal of business research,
85, pp.281-294.
Gaur, A.S., Ma, H. and Ge, B., 2019. MNC strategy, knowledge transfer context, and knowledge
flow in MNEs. Journal of Knowledge Management.
Gillespie, K. and Swan, K.S., 2021. Global marketing. Routledge.D’Cruz, J.R., 2018. Strategic
Management of Subsidiaries 1. In Managing the multinational subsidiary (pp. 75-89).
Routledge.
Haldorai, A., Ramu, A. and Murugan, S., 2018. Social Aware Cognitive Radio Networks:
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Management. In Social network analytics for contemporary business organizations (pp.
188-202). IGI Global.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2019. Strategic management: Concepts and cases:
Competitiveness and globalization. Cengage Learning.
Lynch, R., 2018. Strategic management. Pearson UK
Prideaux, B., Thompson, M. and Pabel, A., 2020. Lessons from COVID-19 can prepare global
tourism for the economic transformation needed to combat climate change. Tourism
Geographies, 22(3), pp.667-678.
Rugman, A.M. and Douglas, S., 2018. The Strategic Management of Multinationals and World
Product Mandating 1 (pp. 90-101). Routledge.
Wenzel, M., Stanske, S. and Lieberman, M.B., 2020. Strategic responses to crisis. Strategic
Management Journal, 41(7/18).
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