Strategic Resource Allocation and Planning for Facebook

Facebook
Strategic Resource Allocation and Planning

STRATEGIC RESOURCE ALLOCATION AND PLANNING 1
Table of Contents
Introduction................................................................................................................................2
Overview of Facebook...........................................................................................................2
General Environmental Analysis...........................................................................................2
Technological Trends.........................................................................................................2
Demographic Trends..........................................................................................................3
Economic Trends...............................................................................................................3
Political/ Legal Trends.......................................................................................................3
Social-cultural Trends........................................................................................................4
Global Trends.....................................................................................................................4
Physical Environment Trends............................................................................................4
Industry Analysis...................................................................................................................5
Competitor Analysis...............................................................................................................6
Internal Analysis....................................................................................................................6
SWOT................................................................................................................................6
Strategy Formulation..............................................................................................................8
Strategic Action Plan..............................................................................................................8
Identification of demanded content by the users................................................................9
Searching and building relationships with the Subject experts..........................................9
Proofreading and editing of the matter offered by the expert............................................9
Posting the articles, reviews, etc........................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

STRATEGIC RESOURCE ALLOCATION AND PLANNING 2
Introduction
Environment analysis is said to be a strategic tool. It is a procedure to recognize all the
internal and external elements which can have an impact on the performance of the
organization (Pestle Analysis, 2015). The analysis includes evaluation of the level of
opportunity and threat involved in an environmental factor (Hussain & Kharisov, 2016). This
report is being prepared in order to analyze the case based on Facebook. In this, the analysis
of the external environment and internal environment will be done. Along with this the
detailed analysis of the industry and competition will be performed. Further, the report will
make a long-term strategic plan for the Facebook.
Overview of Facebook
Facebook is a well-known American company of social networking and social media service
based in California (Newsroom, 2018). In 2004, the website of Facebook was launched by
Mark Zuckerberg. He was a computer science student at the college. The roommates of Mark
Zuckerberg were Dustin Moskovitz, Eduardo Saverin, Chris Hughes and Andrew McCollum
who gave strong support in creating Facebook (Elhuda & Dimetry, 2014). In 2009, Mark was
ranked at 23rd position in Vanity Fair magazine.
General Environmental Analysis
Technological Trends- There is a huge impact of technology on the business of Facebook
because it is based on online technologies (Haseeb, 2017). In the initial journey,
CourceMatch program was written by Mark who allowed students to organize and tactically
select their classes. After that Facemash was created by him. This technology offered the
opportunity to students to rate other people depending on their looks. After working with the
roommates Mark invented Thefacebook which was renamed Facebook.

STRATEGIC RESOURCE ALLOCATION AND PLANNING 3
Demographic Trends- The user count of Facebook is so big that it is good to say that
everybody is on Facebook.
Women Facebook user is more compared to men- Facebook is used by approx. 83% of
women whereas only 75% of men use Facebook (Hicks, 2018).
All the age group people are involved on this platform- Most of the Facebook users are from
the age group of 18-29 which is approx. 88%, 84% people are from 30-49 age group and 72%
are of 50-64 age group.
Source [http://www.effectivespend.com/understanding-the-audience-of-each-social-media-
platform/]
Economic Trends- In 2012 Facebook filed its initial public offering. In the details of the
filling Mark had 22% ownership share and owns 57% of voting shares. The value of the
shares was $38/share and the value of the company was at $104 billion which is considered
as the highest valuation for a newly public company (Rusli & Eavis, 2012). Recently, the
market cap of Facebook exceeded $64 billion and reflected a periodic growth rate of about
2%.