Global Strategic Management: Analysis of Facebook's Corporate and Business Strategies

This report provides an analysis of Facebook's corporate and business strategies using various strategic tools such as PESTLE analysis, VRIO framework, McKinsey's 7S model, Porter's five forces model, SWOT analysis, and Ansoff matrix. It examines the internal and external environment of Facebook, the complex problems faced by the company and how they were managed by the CEO. The report also describes the strategic tools to enhance the overall organizational performance and the concept and model to develop and design the strategic planning. The subject is Global Strategic Management and the course code is 1.

Global Strategic
Management
1

INTRODUCTION....3
MAIN BODY..................................................................................................................................3
TASK A...........................................................................................................................................3
A brief analysis of corporate and business about the positive contribution to the company.......3
TASK B...........................................................................................................................................6
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO.............................................................................6
TASK C...........................................................................................................................................8
Describe the strategic tools to enhance the overall organisational performance.........................8
TASK D.........................................................................................................................................11
Examine the concept and model to develop and design the strategic planning.........................11
TASK E.........................................................................................................................................13
Evaluate the various contemporary strategic issues in strategy by using concepts and models13
Process and Product innovation Model.....................................................................................15
Suggestions and recommendations............................................................................................15
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17
2

INTRODUCTION
International business means main type of business that is important for an entrepreneur
for developing focus upon key operations and main type of business which is an important
perspective regarding key operations. This is an important part of an organization which makes
focus developed over management and leadership with effective techniques used for maintaining
operations at international platforms for doing business. There are different kinds of
organizations making development done through effective operations helping in growth and
expansion possible. The projects are based over Facebook organization that is a multinational
social media company. It has been focusing on important perspective that is essential for overall
development of an organization. Facebook organization is based upon key considerations which
is important from business environment in representation of CEO Mark Zuckerberg. The
organization has been founded in the year 2004 and is based over United States of America it is
an American based organization. Further, report perform analysis upon business environment
performed in precise manner. Also project is based over strategic planning tools which has been
used by company for maintaining and developing key perspectives for gaining competitive edge.
The project is base over various important aspect for gaining competitive edge. The project
explains about different models and theories has been explained.
MAIN BODY
TASK A
A brief analysis of corporate and business about the positive contribution to the company
Business strategy
This is based over describing about planning framework that holds importance over
growth and development. It is important part of business which is based upon developing
important perspectives based upon decision making of business strategy. This is essential for
business organization like Facebook which makes development of business strategy done over
leading marketplace. These strategies make business development possible with better approach
regarding market.
Porter's generic strategies
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Porter's generic strategies are combination of business elements making growth with
sustainability achieved by an organization. This is applied in relation to porter generic strategies
leading towards competition understood in better manner(Wan and et.al.., 2019.). It has key role
to be focused over development of strategy which leads towards marketplace development. Also
application of Porter’s generic growth strategies for Facebook that an organization uses which
has been discussed as follows:
 Cost leadership- This is an important part of an organization’s key operations which has
helped Facebook with its overall development. It helps upon developing focus over
effective products with reasonable price. Through cost leadership makes Facebook is able
to decide its rates in better manner.
 Differentiation- These approach are focused upon making business separated within
marketplace. Differentiation is an important approach that helps upon increasing growth
of business which helps in making key operations performed in business. It has helped
Facebook to differentiate organization from its competitors within market.
 Focus- Main focus of a business should be on development of a strategy and it is crucial
for a business to focus on strategic actions as well. Facebook company focuses on its
social media operations with software engineering to gain market growth.
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The BCG Matrix Model
The BCG matrix is that kind of model which helps over gaining market growth with
competitive advantage. This is an important part of an organization having essential role played
within an organization (Shaulska and et. al.2021). It helps upon making analysis done by
performing or implying BCG matrix to retain market growth. This is another key aspect for
Facebook which is focused over product categories explained as follows:
 Star products- In this start product of an organization is identified great profitability
within marketplace. Star product means expansion done within higher marketplace.
These are the products which is based over high expansion within higher marketplace.
This is also known as an key aspect of business which is focused over star products in
order to gain competitive edge (Rudaya, 2019). Instagram is star product of Facebook
which is having high share within market of 750 users and is growing on constant pace.
 Question Mark- Question mark means those main products that is ineffective within an
organization. The product are having low growth share within marketplace that puts an
question mark over effective operations of Facebook.
 Cash cows- This is based upon functioning of business entity having its focus over cash
cow products. It has major role of business based upon emphasis regarding Cash cow
products for attaining competitive advantage. The cash cow is based over large market
share like Whatsapp belongs to this category.
 Dogs- The Dog products are products having category of low market growth and low
market share. Messenger of Facebook is considered as dog product which are having a
low market share and growth.
Vertical and Horizontal Integration model
This is a vertical integration model related to major approach for developing business. Under
its both local and international marketplace is based over focusing upon development of model
with effective operations and assistance of model to gain growth within marketplace. The
organization like Facebook an organization is developed effectively while assistance of model is
provided for gaining growth within marketplace. This is important for business entity in order to
perform major operations helping upon developing strategic planning within marketplace.
5

TASK B
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO
PESTLE analysis
This analysis is an important tool which is used for making development of external and
macro environment which is present over analysis helping over leading within marketplace. Also
it makes various kinds of elements related to organization working has been covered. This makes
organization improved more effectively in terms of business operations. PESTLE analysis has
been explained as follows:
 Political factors- Political factors these are those key factors which is based over policies
that has been formed by government of country (Rodpai. and Hong-ngam, 2020).
Facebook organization requires to develop by delivering its focus over following
corporate law of government.
 Economic factors- These are those factor which is based over factors related upon
various kind of economic perspectives like GDP and national income. The main role of
business entity like Facebook follows monetary policies developed by government.
 Social factors- In this working of an organization is based over essential role which is
focused upon social factors like taste and preference of customers which is required to be
analyzed by an organization such as Facebook. The organization requires to focus upon
making product provide by an organization reach to its customers.
 Technology factors- These factor are based over various kinds of technological
development that has been taking place all over world. It is essential part of business
requires to follow IT practices over performing important operations with more accuracy
and effective way. It has heleped facebook in using techoology by creating social media
platform which is know all over world.
 Legal factors- This is necessary for facebook over developing approach for follwing
employement legislation based prctices. Its has helped in makig development over legal
and ethical approch within business operations and function.
 Environmental factors- The environmental factor which is considere over developing
according sustainable operations for protecting environment. It is required to make
Facebook as they are making developement by government leading within marketplace.
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VRIO frame work
The VRIO framework has helping in optimum utilization over resources. Application of
VRIO model helping Facebook over performing perform operations in legal and effective way
making customer reach to maximum satisfaction. The application of VRIO framework has been
explained as follows:
 Valuable- The valuable resources is based upon key approaches within business
operations that is most valuable organization (Rascão, 2020). This is main role of an
organization requires to be focused upon gaining competency edge as per market. Human
resource and infrastructure of Facebook is a key valuable resource. It helps upon
improving human resource management within an organization.
 Rareness- Resources are scare to an company which makes rare contemporary business
environment scarce for an organization. Rareness of resources brings main issues and
challenges for an organization. The rare resources developed over effective approach
making national marketplace focused with effective approach. This makes business entity
focused over rareness of resources developed with effective approach making
organizations unique view point of which is developed with effective approach.
 Imitable- These are the resources which is an important resource of related over
innovation based patents and copyrights. This is one of major role of an organization
which makes focus marked over copy right and patents.
 Organization- The organizational functions with combination over key strengths of
business in order to develop systematic operations. It plays major role of an organization
to focus upon dimensions to formulate management practices.
TASK C
Describe the strategic tools to enhance the overall organisational performance
Gap analysis model
The Gap analysis model is related over key theory and current performance with desired
outcome. This is an important technique which is used by an organization for developing
important strategies, capabilities, technologies, skills making organizations growth possible. The
application of McKinsey's 7S model and Ansoff matrix for Facebook company is mentioned
below:
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McKinsey's 7S model
The McKinsey 7s model application over Facebook organization which has been
discussed as follows:
 Strategy- The formulation of strategic planning is based over tools in McKenzie’s 7
model which is based over key parameters for making business growth (Pessima and
Dietz, 2019). Strategic management of Facebook leading towards making goals and
objectives achieved more effectively within marketplace. Also it helps upon making
development done more effectively.
 Structure- Organizational structure is of business requires to be developed in more
effective manner facilitating decision making. Facebook has adopted over functional
organizational structure to perform main function with department responsibility.
 Systems: Whole process which is followed by an organisation is included in systems.
The organisation's key responsibility to focus and put emphasis on systematic
development.
 Skills- Skills are considered as key capabilities of Facebook company which are
important for overall growth.
 Style- The management or leadership style used by an organisation to perform its
functions comes under this category (Koseoglu, 2016). It is key role of a company to
focus on style of management in order to develop systematic and key organisational
goals.
Porter's five forces model
The Porter’s five force model means major key strategic framework that is important for
Facebook in order to gain marketplace. Elements related to Poter’s five force has been explained
as follows:
 Threat of new entrants- This elements makes an organization evaluate effectiveness of
new organizations making growth developed within marketplace. This is key role which
has been used for emerging social media based organization for developing strategies.
The elements make social media organization establish within market on very large scale.
 Bargaining power of suppliers- Bargaining power of suppliers makes approach
calculate over buyer influence and business. In case of Facebook company, bargaining
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power of supplier is low over topmost application. This makes organization like
Facebook supply its topmost application.
 Bargaining power of buyers- In this function business entity and bargaining power of
buyers are considered as key approach that makes business growth possible with an
positive approach in market. The risk of buyers and their bargaining power is low due to
dominant nature of Facebook (Bonsu, 2019).
 Competitive rivalry- The organization that are giving competition to Facebook which is
based upon competitive rivalry that are Snapchat and LinkedIn.The company faces major
challenges regarding Facebook. It makes competitors face difficulty in its running their
business.
 Threat of substitutes- This is important part of business which is focused over substitute
handling. Snapchat makes major substitute product Facebook organization which can
become threat for Facebook. This make threat analyzed more effectively and make
Facebook is able to identify threat.
9

TASK D
Examine the concept and model to develop and design the strategic planning
SWOT Analysis
Strengths Weaknesses
 The Human resource department of a
business which helps it to manage
diversity of employees.
 Marketing management and ICT are
also two major strengths of company.
 Value development is absent in
employees of Facebook
 The another weakness of Facebook is
its strategic planning which is
sometimes ineffective.
Opportunities Threats
 Growth and expansion in the field of
social media operations is major
opportunity for Facebook.
 Key growth rate and its development is
also a major opportunity for Facebook
company.
 Rising cyber security risks are major
threats for Facebook company.
 Also competitors are one of the crucial
threats for the business of Facebook.
Ansoff matrix
This is one of the major tools used by a company to focus on development of competitive
advantage. The Facebook company performs this strategy in a way which is mentioned below:
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Illustration 1: Strategic Growth with the Ansoff Matrix, 2022
 Product development- In this stage, a company introduce a fresh product at the
marketplace. This helps in bringing innovation in a business and helps in attracting large
number of customers.
 Market development- The development of market is essential for a business entity with
the help and support of key marketing management operations. It is moral responsibility
of Facebook to focus on market development for analysing key growth.
 Market penetration- In this approach, a business focuses on dominating the current
marketplace with help of strategic actions (Li, and Reuer, 2022). All major companies in
the international marketplace like Facebook focused on market penetration in order to
develop a major approach at the marketplace.
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Performance indicator and key risk indicators
The measurement of actual performance of employees is a major tool which is used by a
company to evluate performance and development of functions. Risk is also one of the major
type of performance indicator that includes key role of risk in impacting on overall performance
of the business.
KPI- The key performance indicators are considered as major tools which helps in development
of overall performance of individuals (Mavi, Gheibdoust, and Mavi, 2019). The KPI approach is
considered as key approach which is beneficial in increasing output of an organisation by
measuring main employee performance.
Benchmarking- Benchmarking is considered as major type of norms and standards which are to
be utilised by a business entity. It is major role and focus of a business to set benchmarking
standards that are important for overall growth.
TASK E
Evaluate the various contemporary strategic issues in strategy by using concepts and models
Resource based view strategy
The resource based view of a company is focused on development of optimum utilisation
of key resources. There are tangible and intangible resources of a company are also important to
be evaluated with major and effective strategies in order to develop their usage. Facebook
company focus on this view of strategy in order to formulate key practices,
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Illustration 2: Resource Based View, 2012
Corporate level strategies
The extraordinary kinds of company techniques effect on operations of Facebook so that you can
increase powerful operations.
• Joint assignment- Joint assignment is associated with formation and improvement of
enterprise operations through merging of or extra corporations (Minà, and Dagnino, 2016). In
this technique there may be a minimisation of threat related to a enterprise.
• Strategic alliance- This is end result of an settlement among or extra corporations wherein
mutual income for business enterprise is developed. It is important position of a enterprise to
recognition on improvement of strategic alliance.
• Acquisition- It is important for a enterprise entity to recognition on acquisition wherein an
current business enterprise is aquired through a enterprise (Nagel, and Aviles, 2021). The
Facebook business enterprise has aqcuired Instagram in an powerful way that is offering
improved profitability and revenue.
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Process and Product innovation Model
 Product- This is the very last output produced via way of means of a organization to
satisfy wishes and call for of various customers. It is vital for a commercial enterprise
entity to expand merchandise with first-rate and idea of general first-rate control to
growth income figures.
 Process- Process is mixture of complete steps which can be accompanied via way of
means of Facebook to supply treasured merchandise. Facebook organization comply with
the technique evolved collectively via way of means of pinnacle degree and strategic
control to expand specific method.
 Position- The function is taken into consideration as key method that is beneficial for a
organization which will expand a key designation (Newburry, Deephouse, and Gardberg,
2019). It is vital for a commercial enterprise to consciousness on locating and looking
after powerful function within side the organisation.
 Paradigm- The paradigm is taken into consideration as intellectual techniques which
helps a comapny to figuring out the manner body what it does.
Suggestions and recommendations
It is critical function of a organization to attention on improvement of targeted and
properly described technique for you to benefit aggressive edge. It is suggested for Facebook to
attention on implementation of key fashions and theories for you to expand a main control
technique. The management fashion and implementation need to be additionally decided on via
way of means of a commercial enterprise for you to benefit market increase in a fixed duration of
time (Rascão, 2020). Facebook organization need to additionally take help of virtual generation
primarily based totally equipment and strategies for you to benefit a competency age. The
organization should lease IT specialists to carry out all main operations in an correct and short
manner.
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CONCLUSION
From the above dialogue it could be concluded that control of a enterprise relies upon at
the strategic making plans and frameworks which can be crucial for enterprise boom. This
undertaking concludes position performed through making plans frameworks with the intention
to carry out key operations of a business enterprise in a properly described manner. This record
concludes that it's miles the essential position of a enterprise entity to awareness on aid primarily
based totally approach with the intention to increase key making plans framework. There are
numerous agencies within side the global market which takes assist of expert enterprise
improvement specialists with the intention to carry out organisational project in an powerful
manner. This undertaking additionally concludes software of BCG matrix, Porter's commonplace
boom approach, PESTLE which facilitates a business enterprise to awareness on enterprise
improvement.
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REFRENCES
Books and Journals
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Arıcıoğlu, M.A. and Yiğitol, B., 2019. Paradigm Change in Strategic Management. In Handbook
of Research on Managerial Thinking in Global Business Economics (pp. 179-195). IGI
Global.
Bonsu, S., 2019. Strategic management: The concept of competing with self. Journal of
Marketing and Management, 10(2), pp.20-44.
Pessima, J.D. and Dietz, B., 2019. Global strategic planning. The Wiley handbook of global
workplace learning, pp.141-154.
Rascão, J.P., 2020. Strategic Management and Entrepreneurship. International Journal of
Strategic Decision Sciences (IJSDS), 11(1), pp.35-55.
Rodpai, P. and Hong-ngam, J., 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.
Rudaya, I., 2019. Issues of strategic management of Russian innovative organizations’
intellectual property. UPRAVLENIE/MANAGEMENT (Russia), 7(1), pp.50-59.
Shaulska, L and et. al.2021. Strategic enterprise competitiveness management under global
challenges. Academy of Strategic Management Journal, 20(4), pp.1-7.
Wan and et.al.., 2019. Strategic management in fatwa-making process. Academy of Strategic
Management Journal, 18(4), pp.1-6.
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