Global Strategic Management of Facebook: Business and Corporate Strategies used by Mark Zuckerberg

This article explores the business and corporate strategies used by Mark Zuckerberg in the global strategic management of Facebook. It discusses the internal and external environment analysis, Porters five forces model, strategic planning, and contemporary strategic issues in strategy. The article also highlights the use of artificial intelligence and virtual reality technologies to gain a competitive advantage in the market.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business and corporate strategies used by Mr Mark Zuckerberg...........................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global strategic management is the mixed set of economies which used by the companies
in order to design the business operations more strategically to achieve the business goals
efficiently. The mentioned strategy management facilitate business into capitalize their business
operations in global market through such they gain the competitive advantage. Managers uses the
numbers of tools and techniques to understand the business environment. By such analysation
various insights collected by managers in relation to the fluctuating demand, stakeholder analysis
which is used in allocation of resources in order to develop the business. In regard to the above
discussion strategic management style of Mr Mark Zuckerberg that used in the evaluation of
Facebook.
Facebook is a social networking site which was foundered by Mr Zuckerberg in 2004. By
the effective strategic management the respected company has established its business operations
worldwide (Acar, 2020). The respected individual created the effective social media platform
which can be used from devices with the use of internet connection. In the early stage of
Facebook development the mentioned individual adapted number of practises such as focus on
convictions, tests the apps on various attributes in order to provide the best experience to their
user. By the use of innovative approaches the respected company got the success worldwide
with billions of active users.
In regard to the above discussion the respected report will evaluate the business strategies
that adopted by the respected individual. Further, the report will also highlight the internal and
external environment analysis which will describes the various issues and complexities that faced
during the operations as well as practises that took by the individual in order to manage it.
Moreover, the report will also determines the tools and techniques which adopted in enchaining
the respected business performance. In regard to this the strategic planing will also adhere in this
report. Furthermore, in context to the above discussion various contemporary issues in strategies
will also evaluate as well as different level of strategies that used by the mentioned CEO will
also adhere.

MAIN BODY
Business and corporate strategies used by Mr Mark Zuckerberg
Mark Zuckerberg performs number of strategies and activities in order to develop the
effective business functions in the target market. Thorough the effective business plan and
innovative approach the respected individual developed the effective business which is named by
Facebook. Due to such scenario the mentioned individual became one of the youngest billionaire
in the world. In regard to achieve the success the respected individual performed the number
corporate strategies which is discussed in the below discussion.
 Framework of innovation- In the initial stage Facebook were used through the webpage
only. Hence with the further development the respected CEO planned to start the
respected company services on mobile also. At the starting phase various issues were
faced by the company due to lack of new ideas as they were busy in launching the new
features for mobile and desktop. In order to eliminate such issues from the organisation
operations strict actions were adopted by the company CEO. An effective training
programs were indulged at the workplace in order to developed the skills and knowledge
of their employee (Bömelburg, and Gassmann, 2021). New rules was also implemented
at the workplace in which employees need to pitch new ideas in every product review
meetings. It helped the mentioned business in order to keep their staff more focused to
bringing the big transaction in the business operations. In addition to this, it facilitated in
getting the large pool of ideas in the business functions that helped them in order to
develop the effective mobile versions for user.
 Hire more effective workforce- Employees plays the main key role in the organisation
success. In regard to this the mentioned CEO follows the simple rule in their hiring
process. Never onboard an employee for whom you wouldn't work. By following the
mentioned approach in the business functions the respected company prefers to hire the
employee who have the right pool of talent according to the company functions as well as
select the person who have unique personality. In addition to this the respected company
forms the effective team which were full of new ideas and ability in order to solve the
occurred issues in the business functions (Mark Zuckerberg Reveals the 5 Strategies That
Helped Facebook Grow at an Insane Rate, 2017).

The above discussion has clearly stated that the respected individual performed number of
effective approaches and practices in the business operations that assist the company in order to
achieve the set goals in a more effective manner. By these strategies the respected business
achieved number of milestones such as create the most number of user in the social media
business.
external and internal environment analysis of Facebook
Internal environment
 Allegation of racial bias- The respected company alleged in the racial bias due to
employee diversity in their business functions. The mentioned company had the less
numbers of black people in their operations which were showed the discrimination at
their workplace. In regard to sole the mentioned issues the mentioned business evaluate
their hiring polices in order to enhance the strength of black people in their business
operations. It raised from 3.8% to 4% in the recent time. The number is still low but the
respected company is deploying efforts in order to balance the workplace (Facebook
diversity report: Efforts still failing Black and Hispanic employees, especially women,
2020).
external analysis
 Users privacy concerns- The mentioned organisation came in the highlight due to the
privacy concerns. Various allegations were pointed to he company in regard to
misleading of leading of user data. Due to such functions the respected business faced
the lawsuits as well as fined by governments. Peoples also controverted the company
operations. Hence, in order to eliminate such issues from the the company operations the
mentioned business developed the more security features as well ass developed the new
user policies in order to safeguard the user privacy. In instance company launched the
privacy encrypted features in which third party involvement are restricted in order to
ensures the user privacy(Hansen, 2020).
 Increase in Competition- As discussed in the above report that the respected business
perform their functions the highly competitive market. As there are number of
competitors in the market such as Twitter, Snap chat etc. these platform offering the
effective services to their users which somehow impacting the user retention on

Facebook. In regard to the mentioned concern the respected business has developed their
apps and user interference by including the new features such as customised emojis,
more user friendly app interference, reliable news content etc. by these functions the
mentioned business enhanced the user activities on respected app again. In regard to this
they also deployed the new features in which businesses can perform their business
activities by attracting the customer through the respected platform.
Porters five forces models used by the CEO of FACEBOOK to enhance the organisational
performance
Porters five forces model
Competitive rivalry within the Industry(Moderate)
The respected company performs their functions in the competitive market. It is stated
that the Facebook already have the large number of active user with the company app but it
doesn't mean that it can taken for granted. There are number of competitors which is facing by
the respected company in their operational market. Companies like twitter can impact the
customer base by reducing the user time on Facebook. As the respected company need to focus
on their target market by evolving their business operations even more further in order to reduce
the risk of competitors in the operational market (Khan, and Ali, 2020).
Bargaining Power of customers(Moderate)
The main revenue that generated by the respected company is earn from the
advertisement and promotion of brands. These brands approach the respected company because
they have the high customer base on their apps. Hence, the fluctuation in number of user can
impact the business model of company which shows the bargaining power of respected entity.
Another, factor is that the switching cost is low which gives the advantage to the user to switch
to another platform.
Threat of New entrants(High)
The mentioned company perform the business through internet which have the low
barriers to entry. Hence it gives the opportunity to the new business ideas in order to perform in
the same market. Therefore, the respected company regularly track the activity of new entrants in
order to enhance their business operations according to their business activities.
Bargaining power of Suppliers(Low)

Facebook has the large customer base in their operational functions which required the
adaptive software and sources such as storage, data centre etc. hence, these services are mainly
provided by the suppliers. In regard to this the mentioned business have the number of suppliers
as well as they use agreements in their business operations in order to reduce the complexity.
Another, factor is company can easily switch to other suppliers with the low switching cost
which decreases the bargaining of supplier.
Threat of Substitute Products(Moderate)
There are large number of social networking sites in the operational market which offered
the same services as Facebook. User can easily shift to these sites due to low shifting cost. As
these substitutes can easily impact the business by fulling the loop holes which identified in
mentioned company business. Hence, it shows that the substitute products acquired the moderate
power(Rodpai, and Hong-ngam, 2020).
strategic planning for FACEBOOK
Artificial intelligence to understand user requirement
As stated above the mentioned company business is depend on the user activity. Hence, it
is necessary for the company in order to connect the users with company operations more
effectively. In regard to evaluate the Facebook even further more the respected company
developed the artificial intelligence in their business operations in order to understand the
requirement of users as well as their needs which company can fulfil through tier business
operations. In addition to this the mentioned technology is effectively coded by the industry
experts that closely analyse the activities of users on the app. Further, these data are filtered by
the number of process in which informative were picked by the company. These leads facilitated
the respected business in order to develop the more effective app to enhance the user activity on
mentioned app. In regard to this the respected company developed the metaverse in which users
can effectively digitally interact with each other on mentioned platform. By the adoption of
mentioned practice company is decreasing the shift of user to another substitute (Rugman, and
Douglas, 2018).
Virtual reality in order to get the competitive advantage
The mentioned company generated the effective virtual reality functions in the form of
Oculus VR. The respected technology provides the benefits to the user in order to interact with
each other more effectively. It provides the features to the user to experience the 360 view of

photos and virtual experiences of videos at their apps. It facilitate the company in order to
encourage the user to spent more time at their apps. Its main competitors not adopted the
mentioned technology till now. Hence, it gives the advantage to gain the first mover advantage
through the adoption of the mentioned functions. As stated above the respected organisation
performing their operations in the highly competitive market as well as new entrants can get the
entry due to lack of barriers. Hence, the adaptive changes were needed in order to eliminate such
issues. Therefore, the mentioned technologies that adopted by the company CEO assist the
organization in order create the strong market image. Their business evolvement helped them in
order to attract the more brands endorsement at their platform. Such practises increased the
respected company revenue by $ 4.3 billion in he third quarter of 2015(Inside Mark
Zuckerberg’s Bold Plan For The Future Of Facebook, 2015).
The different contemporary strategic issues in strategy
Aggressive Approach- The CEO of Facebook has implemented the number of innovative and
rapid changes in order to evolve the Facebook more attractive and user friendly. In regard to this
the mentioned organisation launched the new feature “News feed” back in 2006. by the use of
mentioned Feature people can easily track the activities of their friends on Facebook. This was
the main features that helped the respected company in order to get the success in the operational
market. The respected company clearly followed the process of implementing the innovative
practises with out the approval of users. Hence, such practice helped them in implementing the
new practises more rapidly. In regard to the discussion the respected company faced the number
of strategic issues in regard to implying the mentioned approach.
 Internal scanning- As stated above the mentioned CEO core approach in the business is
to innovate. Before applying any changes or innovation in the target market it is needed
to understand the company ability whether they are capable to initiate such changes in the
operations or not. In the initial stage of mobile version development the respected CEO
actively communicated with the employees in order to understand their concern regard to
changes. Moreover, they also took the harsh decision such as pressuring the employee for
giving the new ideas in every product development meeting.
 Stakeholder acceptance- One of the main concern of innovation is that they are on high
verge of risk. Will stakeholder accept the new innovation or not. In regard to this when
Facebook implemented the News Feed functions in their app several criticism were faced

by them as users protested that it was inquisitive. However, eventually users accepted the
new feature. In instance to this if users were not accepted the features could lead to
wastage of resources (Sparviero, 2021).
 Technology Competence- The respected company function majorly rely on the
technology. As stated above various changes has adopted by the Facebook in tier
operational such as development of new features, adaption of new technology in
company functions. In regard to this the major concern that faced during the mentioned
process were to balance the competency of employee towards the new adaptation. Every
technology required the set of skills to effective use the techniques. Hence, sue to such
scenario the respected company invested on the training programs in order to generate the
new skills in employee. The mentioned process is time consuming as skills development
take time.
According to Erik Arvidson, (2022). The respected company uses the aggressive
approach in their business functions in order to implement the new innovation and changes in
their business functions. In regard to this the mentioned company follow the philosophy in which
changes are deployed without further notice to its user. The main reason of performing the
mentioned function is to reduce the time in the implementation of innovation. In regard to
encourage the innovation in the developer the respected company followed the hack on Thons
sessions in which new codes were written down in regard to the new project. Such practises
helped the company in order to generate the effective skills in employees that facilitate them in
performing the company new projects more effectively without hiring the experts from outside.
In regard to this the respected company launched the News feed functions in 2006 through which
user can track their friends activities as well as can surf the number of feed regard the followed
pages. The mentioned innovation faced the lot of criticism in the starting but became one of the
most successful innovation more company. Hence, the mentioned approach were the key factor
in the company success (What Makes Facebook a Successful Innovator?, 2022).
According to Anne Helmond, (2017). by the use of Hackathon the mentioned company
generates the innovative environment at the workplace by the use of such approach employees
got the opportunity to developed new skills and knowledge in regard to enhance their innovative
thinking. By encouraging the workforce for bringing the new ideas succoured the respected
organisation in order to got the new ideas which further can be used in product enhancement.

Moreover, employees collaborated with each other, rates the effort of employees as well as
developed the challenging mindset in order to solve the issues that faces by them in their
operational functions (How Facebook Made Innovation a Daily Habit, 2017).
Recommendation
 Listen to user- One of important recommendation that Facebook Need to adopt in their
business functions is to listen their users. As the respected company does not consult with
tier users before implementing any changes in the app. Such practice somehow
discourage the user as well as gives the reason to shift to another platform. In regard to
this the mentioned company need to run the practises such as surveys and online polling
in regard to any changes that they want to implicate in their platform. As the decision
need to addressed according to the result of these surveys (Yang, and Ji, 2019).
 Secure personal information- One of the major concern which Facebook is dealing
nowadays Is regard to security concern. The respected company faces the number of
lawsuits due to addressed concern. Therefore, they need to create the effective security
wall in which all the data and information must be secured. Such process will help the
company in order to regain the trust of users as well as enhance their interference with the
app which is useful in improvising the business (Waller, and Waller, 2019).
CONCLUSION
From the analysis of above report it is evaluated that effective strategic management
helps the company in order to perform the effective functions in the operational market. In regard
to this the above report highlight the number approaches and techniques such as innovative
approach that helped the company in getting the success in the operational market. Moreover, the
report also analysed the internal and external environment of the respected organisation that
helped them in managing the organisation functions. The report also discussed the strategic
plaining of the company through which they established the efficient business model. Further,
the report also highlighted contemporary issues as well as recommendation were deployed
according to the presented concern

REFERENCES
Books and Journals
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Hansen, 2020. Toward a strategic management perspective on local content in African
extractives: MNC procurement strategies between local responsiveness and global
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Khan, and Ali, 2020. Impact of advertising and promotional expenses on profitability of
automobile industry of Pakistan. Journal of Engineering and Economic
Development, 6(1), pp.40-51.
Rodpai, and Hong-ngam, 2020. Strategic management in a public hospital by balanced scorecard
and economics analysis. International Journal of Trade and Global Markets, 13(1),
pp.126-133.
Rugman, and Douglas, 2018. The Strategic Management of Multinationals and World Product
Mandating 1 (pp. 90-101). Routledge.
Sparviero, 2021. The contribution of global media to ethical capitalism. In The Routledge
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Waller, and Waller, 2019. An analysis of negative reviews in top art museums’ Facebook
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Yang, and Ji, 2019. The quest for legitimacy and the communication of strategic cross-sectoral
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Online
Facebook diversity report: Efforts still failing Black and Hispanic employees, especially women,
2020. [Online] Available
through:<https://www.usatoday.com/story/tech/2020/07/15/facebook-diversity-african-
american-black-hispanic-latino-employees/5430124002/>
Mark Zuckerberg Reveals the 5 Strategies That Helped Facebook Grow at an Insane Rate, 2017
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Inside Mark Zuckerberg’s Bold Plan For The Future Of Facebook, 2015. [online] Available
through:<https://www.fastcompany.com/3052885/mark-zuckerberg-facebook>
What Makes Facebook a Successful Innovator?, 2022. [Online] Available
through:<https://smallbusiness.chron.com/facebook-successful-innovator-27192.html>
How Facebook Made Innovation a Daily Habit, 2017. [Online] Available
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