Global Strategic Management: Analyzing Strategies Used by CEO of Facebook
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This report provides a detailed analysis of the strategies used by the CEO of Facebook and how they have positively contributed to the organization. The subject of this report is Global Strategic Management, and it is relevant to courses related to business, management, and marketing.
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GLOBAL STRATEGIC MANAGEMENT
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Table of Contents. INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................4 Examining the business and corporate strategies used by the CEO which has brought about positive contribution to the organization.....................................................................................4 Undertake external and internal environment analysis and analyse how the complex problems at FACEBOOK were managed by the CEO using business framework.....................................5 Examine how the CEO of FACEBOOK created, developed and designed strategic planning for FACEBOOK..........................................................................................................................7 Critically analysing and evaluating the different contemporary strategic issues in strategy, clearly synthesizing between the different levels of strategy used by the CEO of FACEBOOK ......................................................................................................................................................9 Use appropriate corporate examples and literature to justify your stand...................................10 Recommendations would you make for FACEBOOK to sustain its position...........................11 CONCLUSION.............................................................................................................................11 REFERENCES.............................................................................................................................12
INTRODUCTION Global strategic management is the process of activity undertaken as for increasing the business processes and growth also for capitalizing the opportunities available. Global strategic management is the process of defining and designed the strategies as by combining set of actions and integrating the process of business also by taking various actions for developing strategies at global level. These are the set of behaviours in which firm globalizing and coordinating activity of business for achieving and attaining competitive advantage for operating business globally. Global strategy is being defined as the process of designing and expanding the business into international markets. This strategy is being designed for identifying various competitors of business. Facebook is recognized as the social media networking site providing services to large amount of users as for communicating and connecting with all the family, friends. It enables different individual for sharing and connecting to others as by commenting, reading news all over the world. Also, providing necessary information just by making profile on the app. As by establishing the global strategy helps company in using and taking various actions as for increasing sales, earning profits also engaging more consumers for using the social media networking site of the firm. Facebook company is privately owned but trading its shares into the public. As approaching and making use of the social networking site is free of charge with just making profile of various users, it is mainly used for advertisement and marketing firms products. As marketing their products and services with using this social media site. This report specifies details about examining corporate strategies mainly used by the CEO of the Facebook company. It is Also undertaking the external and internal analysis of the company for analysing the complex problems of the firm. Further, describing the strategic tool, techniques and models use by the company CEO as for enhancing the companies position of the firm. Further it also helps in examining the development, creation and designing of the strategic planning for the company. Moreover, this reports helps in providing details about evaluating the contemporary issues with using the appropriate theories as of resource based and various other strategies for defining issues.Also, justifying and illustrating the theories and strategies used with giving examples. Lastly giving recommendation for the company as for sustaining its positioning into the dynamic market.
MAIN BODY Examining the business and corporate strategies used by the CEO which has brought about positive contribution to the organization Various strategies used by the company as for specifying and attaining the competitive advantage by increasing sales and generating profits for the business. The strategies used by the business helps in attaining and achieving the profits by taking various actions. The CEO of company uses various strategies as for growing business which helps in positively contributing into the business success (Atkinson, Sumnall and Meadows, 2021). CEO of Facebook used various intensive growth strategies and generic porter strategies for growing the company as : Cost leadership strategy:Thisstrategyisadaptedby thecompany CEOasfor minimizing the cost for providing the services of social networking site to various user of the company. This strategy is adopted by the company as by minimizing the cost and serving all the commodities at low cost. By using this strategy it has the ability to attain competitive advantages for the company and providing networking services at low cost to allthe users of the company (Facebook Inc.’s Generic Strategy & Intensive Growth Strategies,2022). This strategy helps in expanding the market for the company by focusing on growing objectives and adopting various ways for achieving the competitive advantages. Furthermore, by using the Ansoff model aid in definingandadoptingvariousgrowthstrategiesforcompanywhichhelpsinpositively contributing for achieving the success. Intensive growth strategies used by the CEO of the company. Market penetration:By adopting the market penetration strategy aims for growing the business as by emphasizing the market share of the company. The main objective of this strategy as for increasing the services into operating into the existing market. As for this the company adopts for establishing the alliances with others by adopting resources and aiming to achieve the goals of the company . Market development:Developing the market is the strategy adopted by the company as for growing its market and explaining with the share of consumers the main objectives of this strategy ofexpand the market and enter into the new markets. As by developing the caret coordinating with the governance a for achieving the growth and capturing the large target market for the company (Klassen and et.a., 2018). This strategy help in aligning and achieving
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all the mission and vision by maximizing companies efficiency for operating and surviving into the dynamic markets. Diversification:This strategy is mainly adopted as for diversifying and providing different ranges of services to large number of users in the market (Karppi and Nieborg, 2021). AsFacebook by adding newfeaturesinto the social networkingsite also acquiringthe technology which is important for the company as for earning more profit helps in growing and sustain into the existing market condition. Product development :Developing products mainly emphasizing on expanding product line as messenger for the company. It emphasize on adding new line of product range into the company for providing easy services to large consumers. For this the company is using and adding new features on the website, this helps in attracting large numbers of users and for earning the revenues (Fumagalli and et.al., 2018). Furthermore, for growing into existing market by attracting large number of users for the company. Undertake external and internal environment analysis and analyse how the complex problems at FACEBOOK were managed by the CEO using business framework Facebook is recognized as the largest social networking site, the main aim of company is to connect all the users with family and friends easily. The internal and external analysis for the company as for analysing the company problems at the company were manages by the CEO as using the framework of business. By analysis the internal and external factors company is using swot and pestle analysis which help in identifying the factors. PESTLE ANALYIS Political factors Various rules and regulation, changes impose by government s. As of changes into taxes , safety guidelines and governmental rules and regulations also the political stability impacts the company operations (Facebook Inc. PESTEL/PESTLE Analysis & Recommendations,2022). The governance restrictions impact the company a with decision revenues and profits. Also, the trade ties between various countries as for not using the Facebook into the particular country as of the trade between US and china impact the company. Economic factors
Variouseconomicfactorsimpactthecompanyoperationsasofinflationrates, unemployment rates. As due to covid, restriction due to lock-down emerges company for shutting down itsoperations. Facebook is following the business model cycle due to lock-down it resultsin reducing company revenues and profits. As by reducing the marketingand advertising ads on the websites. Also, various marketing and sponsored advertising for marketing the company restricted and shutdown due to pandemic . Social factors Social factors of the company affecting as, Facebook has shifted totally towards marketing and advertising the products and services of large number of users. This impact the company as it is only focusing in earning profits to maintain the consumer base by adding new features an establishing th strong market. Also, Facebook has compromised its quality of services by posting various ads and advertisements for the other firms as for marketing. Technological factors For using the social networking site, internet is the main source as it help in accessing the site. Furthermore, with the increase into technological methods into the current market various competitors as of Instagram and snap chat, also twitter uses new technical features for engaging the consumers base and establishing large consumer base.As this is diverting users to use the Facebook site (Tien, Hung and Tien, 2019). furthermore, for this the company is adopting continuously innovating techniques as for attaining competitive advantages and sustaining the position into the market of the company. Environmental factors As by operating the social networking site at large level various emission of carbon di oxide emission effect the environmental concerns, for these measures must be adopted the company as for reducing these impact on the environmental changes. Legal factors Various laws as of patent laws, copyrighted laws, privacy concerns and security laws impacting company operation. As various legal laws must be ascertained by the company as for operating with all the latest and current legal regulation by securing the consumers market a for providing security and safety to privacy.
SWOT analysis strengths Facebook is investing for diversifying business as for increasing and earning more revenues and creating competitive advantage. By using the cost leadership strategy helps the company in minimizing cost and earning more profits by providing services at low cost (SWOT Analysis of Facebook,2022). Usingbestadvertisingstrategyfor promotingvariousotherfirmand increasing more profits and revenues. Weakness Mainly dependent for earning revenues on the advertisement and marketing of other firms products. Lack of privacy issues reduces safety and security of various users hinders the users market. Thepublicityresultedinnegative mannerandbiasnessregardedas weakness for the company. opportunities Targettinglargeaudiencesbringing from different countries. Investingintotheexpandingand diversify markets as for diversifying the businessandexpandingtheexisting marketswithestablishingthonline dating apps, and the e wallet. Threats Threatasduetolargelevelof competition as the main competitors are Instagram,twitter,providingsimilar services which reduced the profits and revenues of the firm. Breachingdataandregulationsby government is thereat to business. Examine how the CEO of FACEBOOK created, developed and designed strategic planning for FACEBOOK The creation, development and designing of the strategy various steps adopted by CEO as for engaging and planing strategically for engaging large consumer market of thecompany. Strategic planning is the forming and taking actions as for achieving gaols and objective of the company. Using the strategic planning concept help company in attaining goals by considering various specific conditions and taking certain actions according to the goals for achieving the
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desired objectives. The CEO of Facebook created and designed also developed strategic planning by suing following steps as: Setting aims and objective for the company This is the first set as for creating, developing ans designed the strategic plan, the key step is to set aim and goal of the strategy and business. Designing strategy by ascertaining goals mission and vision helps in implementing strategy in the proper way. The goals for increasing sales, profits, increasing revenues also marketing and advertising thecompany.This helps in recreating value of Facebook as social networking site. Addressing audiences By addressing and reviewing the target audiences for which the strategy is being designed for engaging and retaining the target market is important. Ascertaining needs of audiences help in forming and designing appropriate strategy for business which helps in fulfilling needs. As by researching and reviewing the social demographic market helps in analysing target audiences of social media sites. Determining and scheduling strategies As by knowing the audiences engaged for using the Facebook networking site an attracting the target market, determining andscheduling strategy as by using cost leadership technique help in maintaining current position. This is adopted as for increasing profits and attaining growth by establishing competitive advantage. Also, scheduling strategy emphasizing on arranging all the necessary equipments which helps in forming and engaging plan for achieving the strategy in business. By addressing needs and equipments helps in maintaining and utilizing current position of company as by engaging more audiences. Developing / executing and implementing plans for achievement Various plans and action taken for analysing the companies ultimate vision of adopting the particular strategy in business designing plan help in successfully achieving the stagy and attaining with in company. As by properly communicating and allocating resource to all employeeshelpsinachievingresultsbymakingplanforachievementwhichhelpsin contributing positively. Tracking and analysing the results It is the last step as for analysing and tracking the results of the strategy implemented in company as for achieving growth,. The CEO of company uses various tools for tracking an
obtaining the end result of the implemented strategy as by suing ROI and SPROUT helps in making report of tracking and analysing strategy has resulted in achieving growth or nit for the company. Critically analysing and evaluating the different contemporary strategic issues in strategy, clearly synthesizing between the different levels of strategy used by the CEO of FACEBOOK With using the resource based model as VIRO helps in analysis thee internal factors impacting companies and helps in identifying issues pertaining into strategy formed by the CEO of company. ResourcesValuableRareImitableOrganizedCompetitive advantage Consumer base yesyesnoyescompetitive Globally recognition yesyesnoyesCompetitive advantage Brand awareness yesyesnoyesCompetitive advantage Human resources yesnoyesnoNot competitive Financial stability yesyesnoyescompetitive Cultureyesyesnoyescompetitive Company Services yesnoyesnoNot competitive advantage With the above analysis it is analyses that, the VIRO analysis frameworks helps in analysing companies internal capabilities and issues operating to strategies adopted by the companyasformaintainingandoperatingbusinessoperations.Thecompanyisglobal recognized and having strong loyal consumers base which is not imitable and are regarded as
rare and organized for attaining competitive advantage to the company. Also, brand awareness, culture of company is values and uniquely established (Facebook VRIO Analysis,2022). Furthermore, the company is financially stable and operating into the large target market by providing various services to engaging and connecting consumer base with friends and family this helps in attaining competitive advantages to the company. Furthermore, the issues faced by the company is with the HR strategies as while recruiting an adopting the talented personnels for serving the company. The employees working in company are not rare, as recruiting skill and potential employees are also adopted by other competitors firm as or marketing and provide various services for connecting to large consumer base. Also, various technical operating individual are adopted by the other social networking websites are imitable in nature. Furthermore, the services provided by the company to all the user and consumer for connecting are imitable in nature as due to large competitors available in market and providing similar services to user for connecting and engaging with the friend and family hinders the operations (Seghers, De Clerck and Lybaert, 2021. The main competitors are Instagram, twitter, snap chat providing same services as for posting pictures, connecting and chatting online with the user base and commenting on the pictures. This hinders the strategy as of marketing and advertising must be adopted by the company for making and attaining into the competitive market. Use appropriate corporate examples and literature to justify your stand Using Different corporate examples for justifying and illustrating cost leadership strategy for attaining competitive advantages are as follows : Ryanairaviation company is using cost leadership strategy as for gaining the market by providing low cost services and low cot booing of various tickets to large number of consumers travelling from one country to another internationally. The airline is sustaining and building competitive position by establishing the Lowest cost and supplying products to large number of user by maintaining the position as for providing the low cost carrier operator. Amazonis also using the low cost leadership strategy as for increasing the warehouse storage and capabilities which is used for competitive advantge. As amazon uses the latest digitalization and technologies as by minimizing the cost for operating and working. Walmartestablished as the supermarkets stores globally suing the cost leadership strategy asby Selling and producing products of th company at low cost to all the user in
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gaining the competitive advantages for the company (Palomino-Manjón, 2018). As by reducing the operation cost, outsourcing an and other cost for minimizing the expenses further helps in attaining and growing company by gaining competitive advantages into the dynamic market. Also, the company minimizeits spending on its resources also minimizing the automation and operating cost for gaining the competitive advantages. Primarkcompany is also using the cost leadership stay in company, as the company is fashion retailer offering product at low prices to large number of consumer in market. A by purchasing the raw material for the stores and necessary goods aid in minimizing and cutting the cot as for achieving the competitive advantage of the company also reducing time for Marketing and using little budget for branding an advertising the company it helps in attaining the cost leadership strategy by the company. Recommendations would you make for FACEBOOK to sustain its position The company must improve the security and privacy concerns , also consumer services must be improved as the Meta platform providing consumer support services is not providing adequate privacy to all the users of the Facebook. Also, the Facebook company must prioritize the positive content to be posted on the social media platform which engages users and also help in changing the privacy concern by securing and safeguarding personal and private information of all the users. Further, engaging and organizing more events and groups of individuals which helps in creating global advantages for increasing revenues and profit of the firm. The company must also adopt new and latest trend as by communication and engaging more users for using the website. Also, advancing the user face by expanding the Facebook services for providing new shopping experience to all the user as by branding, help in sustaining position of the company in dynamic market. CONCLUSION From the above reports it can be concluded that global strategic management is defining anddraftingstrategyforcompanyasforsustainingandexpandingmarketbyattaining competitive advantages. Facebook recognized as th social networking site for engaging ans connecting large number of user adopted cost leadership and generic porter growth strategy as for growing and positively contributing for success of the company. Also, with the internal an external analysis company help in identifying the forces which impact companies operations and
profits also adapting various strategies helps in achieving profits and sustaining position into the dynamic market. REFERENCES Atkinson, A. M., Sumnall, H. and Meadows, B., 2021. ‘We're in this together’: A content analysis of marketing by alcohol brands on Facebook and Instagram during the first UK Lockdown, 2020.International Journal of Drug Policy.98.p.103376. Fumagalli,Aandet.al.,2018.Digitallabourintheplatformeconomy:Thecaseof Facebook.Sustainability.10(6). p.1757. Karppi, T. and Nieborg, D. B., 2021. Facebook confessions: Corporate abdication and Silicon Valley dystopianism.new media & society.23(9). pp.2634-2649. Klassen, K. M and et.a., 2018. What people “like”: Analysis of social media strategies used by food industry brands, lifestyle brands, and health promotion organizations on Facebook and Instagram.Journal of medical Internet research.20(6). p.e10227. Palomino-Manjón, P., 2018. “Great to see ur staff are doing their job properly”: Customer (dis) affiliationoncorporateFacebookpages.InternationalJournalofEnglish Studies.18(2). pp.77-96. Seghers, M., De Clerck, B. and Lybaert, C., 2021. Mapping the spread of Dutch non-standard language use on corporate Facebook pages: A corpus-based analysis of service-oriented interaction.Nederlandse Taalkunde.26(3). pp.363-399. Tien, N. H., Hung, N. T. and Tien, N. V., 2019. The role of brand and brand management in creating business value-case of Facebook Vietnam.International Journal of Research in Marketing Management and Sales.1(2). pp.124-128. Online FacebookInc.PESTEL/PESTLEAnalysis&Recommendations.2022.[Online]Available through:<http://panmore.com/facebook-inc-pestel-pestle-analysis-recommendations> Facebook Inc.’s Generic Strategy & Intensive Growth Strategies. 2022.[Online] Available through:<http://panmore.com/facebook-inc-generic-strategy-intensive-growth- strategies#:~:text=Strategy%20(Porter's%20Model)-,Facebook%20Inc.,to%20reduce %20its%20prices%20competitively.>
Facebook VRIO Analysis. 2022.[Online] Available through:<https://notesmatic.com/facebook- vrio-analysis/> SWOTAnalysisofFacebook.2022.[Online]Availablethrough: <https://strategicmanagementinsight.com/swot-analyses/facebook-swot-analysis/>