Global Strategic Management for Facebook: Business and Corporate Strategies, SWOT and PESTLE Analysis, and Strategic Tools

This report focuses on Facebook's global strategic management, including business and corporate strategies, internal and external environment analysis, and strategic tools such as SWOT and Porter's Five Forces. It also includes recommendations for the company's growth and development.

Global Strategic
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Business strategies..................................................................................................................................3
Corporate strategies................................................................................................................................4
Problems that manage by business framework.......................................................................................4
Strategic Tools.........................................................................................................................................6
Strategic Planning....................................................................................................................................9
Level of strategy....................................................................................................................................10
RECOMMENDATIONS................................................................................................................................11
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
The theory of global strategic management entails mixing globalization and the corporate
world. The firm's worldwide initiatives are believed to be the tactics as well as the techniques
that the organisation is developing to extend its business abroad. This company study will focus
on Facebook a social networking site that offers a variety of services to the globe, such as
allowing people to engage with one another, share photos, movies, and articles. An online social
media website allows users to build facebook networks and form relationships with a variety of
people, organizations, and corporations (Prodius and et.al., 2020). The key advantage of having a
connection with for this system is that it offers an actual social site that provides the most up-to-
date knowledge and updates from across the world. Facebook's online network consists mostly
of a timeline, status updates, likes, remarks, shares, alerts, and administrators. The company's
major challenge is to create the entire globe more open-minded and linked to one another, which
will help to foster greater comprehension amongst diverse groups. In this report consist of
business and corporate strategies, internal & external environment like SWOT and PESTLE
analysis. Along with apply strategic tools like porters five forces and porters generic strategy.
Moreover, apply BCG matrix and provide appropriate recommendations.
MAIN BODY
Business strategies
Marketing mix
Product: Facebook's business strategy encompasses something beyond simply text, image, and
multimedia interaction. People may submit images, their location, and what's on their thoughts
via streaming footage of what's happening on all around people.
Price: Facebook has almost always provided its consumers with free samples, and it will
maintain to do so. Its applications, such as Instagram and WhatsApp, are also available to be
using and therefore do not make people pay. Advertising is Facebook's primary source of
revenue. Furthermore, Facebook has guaranteed that certain firms do not overburden users with
advertisements.

Place: Facebook, being an internet social network site, is accessible anywhere via. Facebook
might well be identified in a range of places. This all started in a Harvard medical, and when the
technology have become more readily available, the company expanded across national lines.
Whenever the Facebook application became famous after people from all around the soon started
to be used (Vormedal and Skjaerseth, 2020).
Promotion: Expression marketing has helped Facebook build a strong brand. The marketing
mix's intervention addresses is quite unlike that of every other global corporation. The company
now has an online footprint. Everyone can see that FB advertising has been done through wider
internet utilization, owing towards the various tools that are available on the web.
Corporate strategies
Ansoff matrix
Market penetration: Market penetration strategies strive to bring current products in current
businesses. Consumer demands valued Facebook highly. The first technique that Facebook takes
is to negotiate connections with network operators all around the globe in order to provide data
packages that stimulate their customers to be using Fb increasingly regularly.
Market development: It is performed through incorporating existing goods into researchers have
raised. Facebook is used in practically every country on the planet. As a consequence,
Facebook's world dominance towards emerging businesses is ruled out. FB develops its
businesses by implementing innovation that target growing customer segments within its current
market conditions.
Product development: The adoption of innovative goods into existing markets is referred to as
product design. Facebook's advanced research teams are rather busy, and they routinely reveal
new businesses or features that make Facebook significantly more attractive to customers. This
has, for example, debuted its application, internet conversations, the new Fb page layout, and a
range of those other stuff from periodically.
Diversification: The Company has indeed grown into a wide range of programmes. It purchased
WhatsApp and Instagram in order to establish a stranglehold on voice, video, and image social
media outlets. It bought Oculus VR in order to enter the online digital technology market. Many

of these initiatives to diversify compliment the firm's social media offerings (Capriotti and Losada-
Díaz, 2018).
Problems that manage by business framework
PESTLE analysis:
Political factors: The particular government laws and policies will have an impact on the firm's
customers and activities, such as protectionist measures, security, confidentiality issues, and
hurdles in some countries such as China (Choi and Park, 2019). The CEO of the firm will
investigate multiple countries' rules and minimize data analysis in place to guard and provide
customers with private information.
Economic factors: Such variables include inflationary pressures, bond yields, and regulations
besides several economic trends. As a result, the Head of the company will pertain multiple
tactics besides investigating the market and paying attention to growing the economy that also
maximises the firm's stable economic growth.
Social factor: Social elements such as specific user, views toward lifestyles, educational status,
and society will all have an impact on the firm's management. For this CEO, the corporation
placed a greater emphasis on performance of companies and providing better products to diverse
populations.
Technological factors: Technological problems such as intense competition social networking
marketplaces, security concerns, and 5 G technologies pose significant challenges to the
organisation. In order to keep its clients on the platform, the corporation will continue to get
better its social networking showcasing approach and advertisement offerings.
Legal factor: Legal concerns such as diverse patent laws and restrictions for internet data will
have an impact on the corporate networking marketplaces. However, understanding the
components assists in growing the groups that represent into a larger market range (George,
Walker and Monster, 2019).
Environmental factors: Different difficulties connected to environment, disposal of wastes, and
climatic variability will have an impact on the organisation; thus, the CEO has embraced
techniques for minimizing carbon emissions and network infrastructure emissions.
SWOT Analysis:

Strengths:
 The corporation dominates the social
media platform.
 Every month, billions of individuals
constantly use the Facebook platform.
 This network comprehends the
requirements and behaviours of several
users at the same time.
 Providing clients with exceptional
valuation solutions.
Weakness:
 The firm is affected by privacy
concerns.
 Negative campaigning on the network
often can harm a company image
(Choi, 2021).
 This framework also limits website
personalization.
 This social network lacks several
advanced capabilities that other social
media sites have.
Opportunities:
 Several potential exist, including
moving into chattered terrain with
machine learning.
 Increasing advertising chances by
utilising cell devices as well as other
related technology in order to reach a
larger market region.
 Creating a demand for Facebook by
spreading supplies
Threat
 Enhance the variety of social media
network rivals
 Uncertainty among customer loyalty
 As a result of data exposures, the
government is becoming increasingly
involved in online security.
Strategic Tools
The planning tool and approach used against the business CEO primarily improves company
activities in order to achieve multiple activities for matching the firm's mission vision in order to
avoid various hurdles that the business would confront (Lwin and et.al., 2018). Utilizing the
Michael Porter model will aid in evaluating the firm's competitive situation to use a variety of
ways.
Porter’s generic strategy: Facebook Inc. has a general plan as well as intense strategic
initiatives in place to keep its commercial significant benefit in comparing the effectiveness and

accessibility of internet-based services Michael Porter's three-generic strategy model highlights
the firm's feasible business purpose for commercial space. In this business analysis example, it is
established that Facebook's general strategy provides competitiveness by leveraging the social
channel's characteristics and easier access to grab a higher market share while tackling
competitors (Christodoulou and Langley, 2020).
Growth strategy
Cost leadership strategy: Facebook Inc. employs the basic competitive strategy of cost
leadership. Such comprehensive strategy necessitates minimizing corporate expenditures. Lower
costs enable the firm to successfully earn more profits. In addition, the firm provides its social
networking solutions to global market in a general way. This situation is made possible by the
nature of Facebook's operations.
Intensive Strategy
Market penetration: Facebook's growth is mostly due to a high level of brand strategy. The
purpose of such a rapid growth plan is to strengthen the company's market dominance. This
aggressive growth plan supports the firm's broad competitive cost leadership goal by extending
trade liberalization with includes collecting.
Market development: It is Facebook's secondary intensive method to commercial expansion.
The purpose of this accelerated phase is to enter new markets. Such aggressive approach relates
with Fb's corporate mission and goal objectives, which emphasize global market penetration as a
source of development. This type of market penetration boosts corporate effectiveness and
competitiveness while also achieving the company's general price top marketing benefit.
Diversification: Facebook Inc. employs diversification as a supporting accelerated phase. This
ambitious growth method's major purpose is to establish new businesses. The key strategy of
Facebook Inc.'s aggressive transformation programme is to purchase or construct additional
departments or organizations in order to increase earnings and advertising capacities. Lower
costs are a general competitive tool that promotes in the implementation of this confrontational
form (Awadari and Kanwal, 2019).

Product development: This is a maintaining rigorous business strategy of Facebook Inc.'s social
media corporation. This proactive plan includes the introduction of new products. Such
aggressive tactic affects Facebook's marketing plan, commonly referred as the 4Ps. Product
developments produce more profile pages and advertisements, which have been the company's
primary sources of revenue. The cost leadership generic competing strategy boosts revenue when
implementing this aggressive expansion strategy.
Justification: The broad positioning advantage of cost leadership was connected with the
strategic aim of expanding Facebook's connecting site's core audience. A comparative financial
stated objective might be to improve the firm's annual profit through at least 35%. Facebook has
the capacity to meet these strategic goals in its generic competitive strategy by concentrating on
increasing its enrollment, which presently amounts at further than 2 billion monthly active. The
business's aggressive expansion goals are inextricably related to cost leadership.
Porter’s five forces:
Competitive rivalry for the company: The companies’ competitive competition is of medium
to moderate strength. As the business's rivals include of FB such as, Instagram, Twitter, Snap
Chat. The organisation is always developing to meet the needs of customers in ability to answer
to developments and maybe create a core audience using social media sites. Because the firm
commands a dedicated user base, yet desktop usage has switched to phone devices, the business
will be considered as a danger by competing firms.
Bargaining power of Facebook users: The corporation Facebook has very strong bargaining
power. As people transfer to some other webpage for selling its advertisements, the low price at
other websites will switch the customer to the other network, thus the firm will guarantee that it
provides a pleasant customer engagement in order to maintain its users.
Bargaining power of suppliers of company: Since there are so many providers users can
access, the providers have little negotiating leverage (Hussain and et.al, 2021). As a result, the
firm must enhance its distribution network and connections with vendors in order to contribute to
the firm are socially responsible.
Threat of substitutes: For the corporation, the threat of replacements is quite strong. As original
and innovative applications emerge, new competitors will have an influence on Facebook

subscriber growth. As more applications with reduced and superior features become available,
there'll be a move to other alternatives.
Threats of new entrants : This is low for the firm since it is tough for companies to compete
with the famous Facebook, which has an acceptable level of assets spent for advertising and
attracting diverse users, as well as a very significant market share.
Thus, employing it has aided in the development of numerous strategies and processes at a
cheap cost, policy for connecting the shared vision and goal, and strategy for boosting the
earnings of the business.
Strategic Planning
BCG matrix: The BCG Matrix for Facebook Inc will help the company establish
marketing strategies for its big businesses. The investigation will proceed with evaluating in
which the Facebook organizational strategic departments fall underneath the BCG Matrix.
Stars: In Facebook Inc.'s BCG matrix, the focus strategy both in terms is a star. Business
operates in a field with a lot of potential. This SBU makes a significant contribution a large
amount of profit to Facebook Inc. should reap the benefits of adopting by acquiring additional
distributed generation companies. Because this order to achieve business has potential, it will
help it generate more revenue.
Cash cows: In Facebook Inc.'s BCG matrix, the company's strategic segment of supplier
development products is a cash cow. This has been around for years and has made tons of money
for Facebook Inc, but the core enterprise is dwindling as firms handle their vendors inside rather
than outsourcing it. The proposed method for FB Inc is to halt further keep operating this
strategic business and keep operating this important corporate segment as longer as it is
profitable.
Question marks: The localized dining approach business unit is a question mark in Fb Inc.'s BCG
matrix. Thus according economic fundamentals, people are much more likely to eat street
produce. As a consequence, this market is rapidly expanding. Facebook Inc, from the other
extreme, has a small core audience in this sector. Facebook Inc's advised approach is to spend in
research and development activities in order to create unique services. Such product design plan

will ensure that this key business unit becomes a cash cow for the corporation and generates
profitability.
Dogs: In Facebook Inc's BCG matrix, the corporate strategy division for digitally made things is
a dog. Those things were just recently adopted, and the market is expected to grow. Artificial
tastes, on the other hand, are being avoided as people grow more wellness. The market is
shrinking and Facebook Inc has no meaningful market share. This product should be called back,
according to the recommended strategy for Facebook Inc.
Level of strategy
McKenzie strategy: The Facebook McKinsey 7S framework demonstrates how seven separate
business factors may be integrated to boost performance. Processes and structures are hard
aspects in the McKinsey 7S model, while common values, skills, style, and personnel are soft
factors. The approach emphasizes the presence of strong connections between components, so
that modifications in one element induce changes in others. As seen in the graphic beneath, core
interests are at the heart of the Facebook McKinsey 7S framework because they drive employee's
performance, which has an impact on performance.
Strategy: Facebook has an expense management philosophy, with a focus on the customer
satisfaction. According to their motto, "1% is accomplished," the social networking company is
always developing better products and technologies while still upgrading its current ones.
Structure: Facebook Inc. has a hybrid company structure that combines elements of both the
hierarchical and divisional systems. Components of hierarchical system may be seen in the
existence of many layers of leadership in the corporation, whilst components of segmental or
matrix corporate structure can be seen in the establishment of commodity groups on a global
basis.
System: Facebook Inc. uses a range of management systems in its business operations.
Protection, HR systems, and systems integration devices, as well as other devices are among the
most crucial for a digital media organisation. The surveillance system, in especially, is a vital
success component since it pertains to both the firm's own security is an important part of social
media website customers.

Staff: Recruiting and distant integration — Due to the epidemic, many individuals are employed
from home. To enhance the setting more welcoming for new workers, Facebook should develop
a remote induction structure that incorporates a portfolio of short movies, small community
engagement, and technological demos.
Skill: For workers who work from isolated regions, Facebook can provide systematic training
programmes. Facebook may employ young faces when more individuals leave their current jobs
if they're not pushing them sufficiently.
Style: The leadership styles required in a real-world setting and in a virtual setting are
completely contradictory. In a real-life situation, managers may stop by for a chat, provide
comments, just go over the task. Specialists working in remote areas, but at the other extreme,
must work in a much more sequestered environment. Management should implement a
collaborative and approachable managerial style to drive growth. Different units should be
formed by the administration as part of the larger groupings.
Shared values: The organisation has developed a solid business plan based on its underlying
principles, purpose, and objective. There really isn't anything that has to be changed in the
common variables section. One factor that could be improved is its long-term viability. Investors
put a high priority on ecological, socioeconomic, and political issues, therefore adopting the
Triple Bottom Line concept into ESG and income accounting might enhance transparency.
RECOMMENDATIONS
Facebook, that has been so popular in the social media outlets ( e.g., does not face much
opposition from its other opponents. To achieve a competitive edge, the firm must implement
some corporate strategy. It might be stated that the preceding modifications would enable the
company to increase its competitive edge (5 Ways to Dramatically Improve Facebook
Engagement, 2020). These adjustments would involve frequent website improvements to make it
easier for customers. Based on its rivals, it is necessary to introduce new trends in technology
that will aid in the introduction of stream screening. One of the greatest methods for Facebook to
achieve a competitive edge might be to form strategic alliances including its opponents. Leading
to a shortage of creativity, this firm has struggled to maintain its competitive edge. One of the
most effective strategies for the business to improve its organizational strategy is to provide users

with chances on the platform. Owing to the unavailability of potential on Facebook pages,
businesses have encountered a shortage of user experience. Collaboration with influencer
marketing will assist Facebook in becoming the key to the company's success.
CONCLUSION
According to this research, global strategic management gives several approaches for
businesses in order to build and work abroad. This study aided in the comprehension of internal
and external macro environment. Explaining the management philosophy employed by the CEO
of FACEBOOK has also aided in organizational excellence. Analyzing the long term planning
for FACEBOOK has also aided in establishing strategies for the organisation, which aids in
future growth. The McKinney model has aided in understanding the issues that the Facebook
firm is experiencing.

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