Global Strategic Management: Examining Facebook's Business and Corporate Strategies
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This report examines the business and corporate strategies used by the CEO of Facebook, as well as the external and internal environment analysis, strategic tools and techniques used, and the different levels of strategy employed. Suggestions and recommendations for sustaining Facebook's position are also provided.
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GLOBAL STRATEGIC MANAGEMENT
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Table of Contents. INTRODUCTION...........................................................................................................................3 MAIN BODY................................................................................................................................3 A) Examining the business and corporate strategies used by the CEO which has brought positive contribution to the organization.....................................................................................3 B)External and internal environment analysis.............................................................................4 C) Describing the strategic tools/ techniques / models used by the CEO of FACEBOOK for enhancing the companies performance........................................................................................6 D) Examining how the CEO of FACEBOOK created, developed and designed strategic planning of company..................................................................................................................7 E) Different levels of strategy.....................................................................................................8 Using appropriate corporate examples and literature to justification..........................................9 Suggestions / recommendations for FACEBOOK to sustain its position.................................10 CONCLUSION..............................................................................................................................11 REFERENCES.............................................................................................................................12
INTRODUCTION Global strategy is being defined as guiding the organisation procedures across the global world. The strategy is being designed by the company for expanding the business into the international market. Global strategy is being designed for analysing various competitors if the company, also the consumers of the company being situated globally the production of the products being generated globally of the company into the global markets for generating profits of the business. Facebook company, operating as the social networking site having billions of users al around the world. The social network enables various user to connect to with world, with the family friends through various devices being used by the users in the dynamic world. Facebook enables various people to share, connect and discover all feeds. Developing the global strategy helps in increasing the sales and generates better profit earning capacity for the business. Accessing Facebook sites by the users is free of charge and it generates most of the money from its advertisement by posting various content of users and posting messages, also location, status, worldwide news. Facebook is privately owned, trading its shares publicly. By generating competitive global strategy aids in creating the brand awareness globally and in international markets it also lowers the labour costs for the company. This report will provide details of examining various corporates strategies used by the company CEO which brings positive contribution in business. Further, undertaking internal and external analysis of business. Also, examiningthestrategicplanningcreation,developmentanddesigningdonebyCEOof company. It also provides details of analysing the companies contemporary strategic issues in strategy and different levels of strategy used by the Facebook using resource based model and innovating and technical strategies of business. MAIN BODY A) Examining thebusiness and corporate strategiesused by the CEO which has brought positive contribution to the organization Corporates strategies are those which helpsin achieving the business goals by setting goals, plan forincreasing sales ofthe companiesservices being given to various users all around the world (Armstrong, Kulczynski and Brennan, 2021). Various strategies is being used by the company which positively contributing or achieving the business growth which result in increase the profits margins andrevenues with better performance at the optimum level of the company.
Low cost marketing strategy :The CEO of Facebook company is using low cost marketing strategy as it emphasize on marketing various business at low cost . As this induces the small and medium enterprises to choose the marketing medium which choose low cost for marketing their business products and services as on the social media sites. As adopting the less cost marketing strategy contributesthe business for attracting large number of users for promoting their business which helps in gaining more profits and loyal consumers for the company. New product development strategy:By developing new products is introducedby the CEO of Facebook in the company as it emphasize on developing and diversifying its products ranges into not only posting content and messages on the social network site. As currently the company has introduced new portfolio as of posting news, feeds, videos, photos, searching pages (Introduction to Porter’s Generic Strategies,2022). By adopting this strategy by the company helps in establishing competitive advantage for Facebook and it constitutespositively in enhancing companiesposition into marketand generatesbetterperformancefor growing business and profits. Focusing on the user experience:Facebook company CEO has adopted the strategy for focusing on the user experience and this helps in generating growth for business. The company provide optimum balance between the standardizations and customizing the websites (Binford and et.al., 2021). By introducing new customization into the website which has helpedthe company for establishing the brand image ad popularity among millions of users. Adopting ways of monetization:CEO of Facebook has adopted the strategy for continuously monetizing (Faroukhi and et.al ., 2021). The company is utilizing various ways for regularly monetizing the revenues and maximizing it for continuously adopting different new strategies for retaining the market position and positively establishing the brand image in the mind of various user. B)External and internal environment analysis Externalenvironmentmeanstherearevariousexternalfactorsthataffectsthe organization functions. These factors are not in control of business but company must find ways to overcome from these outside factors. These factors are as under-
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Political-Political factor playsa important role in the success of business. Political stability of other countries allows Facebook Inc. to operate it's social mediabusiness and also government supports to expand it's business. Economic-This factorhelps Facebook Inc. in the growth of business as economic stability is increasing in other countries and it leads to better telecommunication services. Moreover, increasing income of people in developed countries allows users to buy application and access Facebook and it expands business of company. Social-With regard to social factors it also impacts as customer are looking for high quality services. So Facebook must focus on to improve it's service quality to satisfy the customer and to retain their customer. Technological-This factor also impacts the Facebook Inc. as there are other social media companies that are attracting customer. Company added features as per consumer needs like live streaming and others. Legal-There are certain laws that restricts the business. Further, there are certain regulations in the collection of online data that affects the business. Environment-In this factor company may haveto be sustainable and satisfies the regulations that are set for the environment like waste disposable. Internal Environment means thefactors that impacts directly on thefunctioning of business internally within the organisation. They are as under- Strengths-Number of users of Facebookare increasing and a largest network across the globe because of technology innovation it leads to success. Weakness-Company facing issues related to privacy security since last many years and it results in the loss of information of some clients. Opportunities-Technological innovation helps the company in growth of their business as customer are using more social media platforms. Threats-There are many other social media sites that are attracting customers so there is a high competition in the industry is a threat to a company. Business framework means the strategies formed by the organisation that guides the business to work accordingly. This Framework is used by Facebook CEO to find out the problems that business is facing and then try to come out with the solutions.
Privacy related issue- Facebook CEO made changes inthe privacy related issue as users were complaining regarding their loss of data. Companymadechanges in their privacy protection and included new restrictions in their policies. Competitive Pressure-The CEO of Facebook handled the competitive pressureby adding new features in the application like added story, video calls feature similar to Instagram and other competitors. Business Framework of Facebook company includesissues related to users privacy protectionand the intense competition organization is facing. Further, the possible solutions come out from that issues like companyofferbest services to the customer(Goni and et.al., 2021).In addition to that company included all those features that other social media platforms are offering to attract more customers. C) Describing thestrategic tools/ techniques / modelsused by the CEO of FACEBOOK for enhancing the companies performance Various strategies, tools and models is used by companies CEO for enhancing companies performance. The porter generic model is used by the company forenhancing its position and retaining the market share of the company as operating in the dynamic environment. By using this model has helped the company for growing business and establishing competitive advantage (Lin and Hsieh, 2021). Porter generic model emphasize on the four strategies it includes cost leadership strategy, differentiation, cost focus and differentiation focus. From all the four strategies company is using cost leadership strategy. Cost leadership strategy is being used by the company for minimising cost as by using the strategy of offering marketing options to various users for their businesses. As for this company uses computing technical instruments for maximizing its efficiency as for establishing top social networking websites for the users. The online nature of business has given easy access to users for reaching the websites, this helps company for adopting this strategy as it gives satisfying experience as establishing competitive position. Various techniques is used by company for enhancing its business performance as, the company is:Expanding its graphical appeal:The company is using these techniques asfor those users who are not interested in reading the long content being posted on the websites. By suing mode graphical appearance on the social networking site will help the company in retaining loyal users for using Facebook site (Photiadis and Papa, 2022). By using this technique posting high quality
content,which is authentic and errors free helps in expanding the graphical appeal to all the users and engaging more and more users by providing better user experience from the company. Focusing on brand by being consistent :The company is emphasizing on the brand image by posting exciting stuff, as this helps in complementing the brand by engaging more and more consumers. By engaging users as by posting interesting content on the websites helps in fixing the brand mage in the minds of users for using the social site (Lwin and et.al., 2018). Also, by being consistent as syncing the photos and content, also updating the users by the brand. The company is focusing on posting ye catchy pictures which helps in raining the users by building brand. D) Examining how the CEO of FACEBOOK created, developed and designedstrategic planning ofcompany The CEO of Facebook will creating, developing and designing the planning as: setting goals, the plan will be created by knowing the audience of the business. This is the firsts step taken by the company CEO for designing the strategic by knowing the audience. Further the goals must be designed as for increasing the sales of the company also helps in achieving profits for the company (Peljhan and Marc, 2021). After knowing the audience the company will proactively engage with the audience by gaining interactive content and attracting audience by providing great place to post and engage their content at the Facebook site. The company must schedule its content in the proper form as by adopting various marketing techniques and proper deciding the posting of the content to be posted on site and the pictures portion. While planning for the strategy deciding the content also adopting the higher marketing strategy for engaging more and more consumers. Furthermore the company will be determining its strategic position while planning for companies strategies. Planning will also involve in determining its priorities, as for why the strategy is being adopted by the company and for executing the strategy right person must be executed at the right position (Mosquera and et.al., 2020). As for appointing right people at right position, or hiring personnels for operating the department will help in increasing the business performance. While planning for implementing and various strategies the company is focusing on its mission, by eliminating small distractions and reacting on the important matters.
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The company CEO has implemented the latest plans in the company as by increasing the security for privacy of content. Also end to end encryption of the data is being proposed with transacting at low cost (Morgan and et.al., 2019). Also, adopted the detection programs for detecting the fake news connect in order to post the actual and real content on the site. E) Different levels of strategy There are various levels of strategy in which the strategies are formed for the functioning of business and it includes decisions for the areas of improvement. They are as under- Resource based strategy- This theory means that how much the resources organization have to improve its performance than the competitors. It includes VRIO (value, rarity, imitability and organization) analysis which helps the organization to know about their resources. ResourcesValueRareOrganizedInimitable AudienceyesyesyesNo International Presence yesyesyesNo Financial worthyesyesyesNo Technologyup gradation yesyesyesyes Organization Culture yesyesyesno There are certain issues on which company needs to focus to improve the overall performance of the company. For example company needs to focus on increasing audienceas there are many other social media apps that are attracting customers. Although Facebook audience is high but due to increase in competition other platforms promoting their apps and attracting global audience. Further, company needs to focus on organisational culture like to improve the employee satisfaction and that will results in increase the performance of the company. This will improves the overall growth in the company. Blue ocean strategy-In this strategy company uses low cost strategy to increase the demand of the applicationin the new market. Company uses this strategy while entering into
new market segment so that competition factor doesn't matter because of low price. This will further leads to growth in the business and increases profits of the company (Luo, 2021).There are many issues arises whenFacebook company implementing this strategies like sometimes customers doesn't understand the application and it's services. Besides this too much patience required when this strategy is being implemented as at initial levels there are risk. Sometimes Facebook company fails to create the demand in the new market area as customer don't like the offerings of the application. It includes creating the unnecessary space in an area where the customer are not responding to the application. Further, Facebook fails to create different costs in the organization and faces difficulty in the alignment of the activities. In other market company charges different prices so keep record of the different prices that are set for the new market (Ricci and et.al., 2021).In addition to that company also faces difficulty in creating the demand in the new market area as the other rivals also follows the same strategy and hinders in capturing the new customers. Based on these theories company improves the overall performance of the company by increasing the large number ofaudience in case of resource based strategy (Zimmer, 2020). There are many other social media apps that attracting the customers so Facebook must include features that are in other apps. It will help organizations in not losing the customers. Further, in case of blue ocean strategy Facebook should find ways to spread the knowledge of this application to the people. Besides this also delivers new ideas of new applications and it's features so that customer gets clear understanding of the application then it will lead to gaining new audience. Using appropriate corporate examples and literature to justification Various examples for justifying literatures are as follows: Walmart company, the store Asda is operated in UK, is using costs leadership strategy. By using this strategy by the Walmart helps in attaining competitive advantage. The company Selling its products by maintaining low cost. This helps the company to attract large numbers of consumers for purchasing vraious products from the stores of the Walmart. By using this strategy has helped the company by effective establishing competitive advantage. The company is being effective by using this strategy for establishing the competitive advantage in the country. By establishing the latest technical equipments and adopted automated technologies aids in achieving low operational cost
for the company. Also, by adopting this strategy helps the company in reducing the outsourcing costs. Nike company is using consistency strategy, for maintaining its brand strategy as of the sprit sports by celebrating the struggles and efforts of all individuals who are working in the company. As by using this strategy help in inspiring various individuals for remaining fixed or staying atconsistent position by maintaining the brand image over the years. The company is building its image by constantly exploring various ways for maintaining the positioning and actions of company at the desired stage. Suggestions / recommendations for FACEBOOK to sustain its position For maintaining the market position of company, various recommendation for sustaining the position of company are : Facebook company mustprovide privacy concern options for increasing piracy of users data. Facebook company must integrate all its goals, activities, websites , marketing , planning and other departments in for sustaining its competitive position in dynamic market. By limiting various campaigns and the fake contents for ensuring quality content to be posted on the website for sustaining current position of the business. Company must prioritize group of events which needs o be done on the particular date on the user profiles, also developing presence of various groups by posting interactive content and graphical posts. By adopting privacy checking tool, as by showing the news feed when the privacy is being interrupted of users. This helps in directing about the privacy issues and why the privacy of the user is being disrupted will be checked by applying tool. Company must adopted the strategy for boosting up the top likes posts by using effective marketing techniques , this will helps in engaging users in better and efficient way. The cony must use and experiment with the new content , as of ever-changing the social media trend recently the trend is to socialise and connect with all the audience by making videos. experimenting with posting new videos which is not grasped. The company must host giveaways for the users , by gifting valuable gifts to uers wil helps in retaining the loyal consumers for the company.
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Company must use strategies for asking various opinions for improvement of the Facebook site. As this opinion will helps in adopting latest trends according to the consumers preferences and helps in sustaining the position of the company in long run. CONCLUSION From the above report it can be concluded that global strategic management aid in making and planning various strategies for expanding the business at worldwide level. Facebook company established as the largest social networking sites used by radius users for connecting and hosting various media and feed regularly. These site is helpful for entering with various individual globally and aid in providing information with the news. Thus, global strategy is maintained by the company for sustaining its position and gaining market share for the company.
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