Analyzing Advantages and Disadvantages of Social Networks in Business: A Case Study of Wesfarmers, Australia

This study analyzes the advantages and disadvantages of using social networks in business, with a case study of Wesfarmers in Australia. It explores the meaning and concept of social networks, their advantages and disadvantages, and suggests strategies for improving social network practices in the organization.

Running Head: ACADEMIC AND BUSINESS RESEARCH
To analyze the advantages and disadvantages of using Social Networks in business-a
case of Wesfarmers, Australia

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Table of Contents
Assignment I..............................................................................................................................3
Introduction............................................................................................................................3
Project objective.....................................................................................................................4
Project Scope..........................................................................................................................4
Literature review....................................................................................................................5
Introduction.........................................................................................................................5
To identify the meaning and concept of social networks- In case of Wesfarmers,
Australia..............................................................................................................................5
To explore the advantages of social networks - In case of Wesfarmers, Australia............6
To identify disadvantages of social networks - In case of Wesfarmers, Australia.............8
To suggested strategies for improving the social network's practices in the organization
of social networks - In case of Wesfarmers, Australia.......................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Assignment I
Introduction
The social media is an online communication technique that is used by the company and
individuals to share their specified or unique data with friends, colleagues, and family
members. In the recent era, many social webs are used by the company to spread the
awareness towards their products and services. There are certain methods and webs that are
considered in the social networks such as WhatsApp, Snapchat, Facebook, Instagram,
Twitter, Pinterest, and LinkedIn. In the current era, approximately 45 billion of individuals
have practiced the social networks to communicate with each other and share their important
data on the websites. It is addressed that 1.86 billion of individuals have used the Facebook to
interact with their family, friends, and colleagues (Turban, et. al., 2017).
In the current era, it is evaluated that a young people have used the social networks.
Furthermore, social media could directly impact on the growth of the business. The company
has needed to improve their existing information about the social networks as it would be
supportive to motivate huge amount of consumers (Sekaran and Bougie, 2016).
In addition, the organization has requisite to know how consumers could be inspired by social
networks. Consequently, it will support the organization to obtain higher competitive
benefits. The company could imply the social networks to obtain opinion, views, and needs
of consumers. It could aid the organization to satisfy a huge amount of consumers.
Consequently, the organization could be capable to obtain higher competitive benefits. The
social networks make enable the firm to sell their products and services to their specified
consumers (Cook, 2017).

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Project objective
The primary aim of this study is to analyze the advantages and disadvantages of practicing
social networks in the business. The following estimated objectives will be used by the
research scholar to attain the aim of research appropriately:
 To identify the meaning and concept of social networks- In case of Wesfarmers,
Australia.
 To explore the advantages of social networks - In case of Wesfarmers, Australia.
 To identify disadvantages of social networks - In case of Wesfarmers, Australia.
 To suggested strategies for improving the social network's practices in the
organization of social networks - In case of Wesfarmers, Australia.
Project Scope
This research proposal is imperative to develop knowledge about advantages and
disadvantages of practicing social networks in the organization. The use of social networks in
the organization as it would be an inspiring matter for the research issue. The best
understanding of social networks could support the company to enhance organizational
performance and improve professional skills of research scholar (Borgatti, et. al., 2018).
This proposal is imperative for the research scholar to obtain the reliable and valid result in
upcoming time. In the recent era, the company uses the social networks to keep the
effectiveness of employees and firm. This proposal aid the company to make an effective
decision as it would support to improve social media practice in the organization. This
proposal could be effective for the research scholar to improve their understanding towards
any social media sites as it would be imperative in case researcher wants to make their career
in the social media. Further, the company could be capable to obtain higher competitive
benefits (Turban, et. al., 2015).

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Literature review
Introduction
This section helps to gain the understanding of reader and research scholar about advantages
and disadvantages of social networks in the business. The researcher could consider many
sources to collect conceptual understanding about research issue. These sources are an
academic journal article, books, magazines, and online and offline sources. Further, this
chapter will support to obtain reliable information about the current research matter (Bryman
and Bell, 2015).
To identify the meaning and concept of social networks- In case of Wesfarmers,
Australia
According to Burns (2016), the social network is used for the organization caused of
attracting a huge amount of individuals in the least time and cost. It facilitates firm to share
their information with their teamwork to attain the aim and objectives of the organisation. It
is also evaluated that there are certain kinds of social media sites like Snapchat, Instagram,
LinkInd Facebook, and Twitter as it would support to obtain higher profit. Consequently, it
could support the organization to share their data about goods and services among specified
consumers. Further, the social network aid organization to enhance the situation of the firm.
In opposition to this, Hair Jr et al. (2015) stated that organization uses the social networking
to enhance their brand loyalty and recognition. Since, it enables the organization to access
more for new customers and more familiar for their existing consumers. It helps the
organization to spread awareness of the brand in the marketplace and differentiate their
products and services as compared to the competitors. The social networking is the
application of social media programmes to make a link with family, friends, and classmates,
clients, and consumers. The social networking occurs for both business and social purpose. It

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is also stated that the social networking is an effective way to engage the company to their
specified consumers and obtain a reliable outcome.
To explore the advantages of social networks - In case of Wesfarmers, Australia
Eriksson and Kovalainen (2015) argued that the social media is a cost-effective digital
marketing technique to enhance their awareness towards products and services among
specified consumers. It could support to improve the organizational performance by
spreading awareness in the marketplace. It is also found that the execution of social network
strategies will effectively increase brand consciousness caused by engaging the firm with
their potential consumers. The company could imply social networks to introduce their new
product and services into the new marketplace. Through this, the organization could be
capable to openly communicate with their customers as it would support to comprehend the
consumers’ needs causing of completing their desire needs and retain them in long-term.
In opposition to this, Luo and Zhong (2015) examined that company cannot get higher
success from the marketplace in lack of the social media. Moreover, it is also stated that
organization could practice ranking structure as it would be effective for determining the
number of visitors on the organization sites. It could support the organization to examine the
people who are interested in the products and services of the organization. Therefore, it can
be illustrated that social network could be an effective approach to increase the organizational
performance. It could also be effective for enhancing the loyalty of consumers. It provides the
new opportunity to the organization for increasing their number of customers in the least time
and cost. It will also help to obtain a higher competitive benefit. The social networks could
support to create the best understanding of the company to the consumers. It will also
facilitate the firm to obtain different thoughts of consumers.
In favor of this, Ruggie (2017) evaluated that the social network is an effective method to
enhance SEO (search engine ranking) of the firm. It could also facilitate the firm to make

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their distinguish image in the marketplace. The SEO is the best method for the attainment of
higher ranking and enhance the traffic on the organizational web. It is also evaluated that
approx. 59% of businesspersons have increased their search engine rankings by applying the
social networks. The company could information exchange their information among positive
result for the organization.
On the other side, Schaltegger and Wagner (2017) explained that clear visibility could enable
the organization to effectively manage the change and obtain a reliable outcome. Further, it is
also analyzed that each image, blog post, comment, and video could lead the viewers of the
company’s websites and increase the traffic. The social media marketing could allow the
organization to make a favorable image in the consumers’ mind. It will also support to obtain
a higher competitive benefit in the least time and cost. The organization could imply the
social networks and share their post, idea, and comment as it would support to obtain higher
profitability. In the current era, consumers are the knowledgeable cause of social networks
hence organization should need to develop their unique image in the marketplace and get a
reliable result. It will be supportive to increase the market share and profitability of the firm.
Hence, it is also found that organization is needed to offer the quality products and services to
their consumers and offer unique services as it would enable to obtain higher profit.
In opposition to this, Prpić et al. (2015) opined that the social networks could be supportive to
increase the consumer's satisfaction level. It could be imperative for communication and
networking. In addition, it is also found the social networks facilitate the company to
influence a huge amount of customers towards company’s goods and services. It would
improve the existing performance of the organization. It is found that the visitors understand
that if they comment and post on the company they would get the personalize reaction.
In support of this, Denscombe (2014) explained that the social networks could enhance
consumer loyalty about goods and services of the company. In the current era, organization

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concentrates on the enhancement of consumer loyalty. It is also found that the customer
satisfaction could enhance the awareness from one to other. In addition, the organization is
engaged with consumer and makes a reliable relation as it would support to enhance the
brand loyalty in the upcoming period.
To identify disadvantages of social networks - In case of Wesfarmers, Australia
According to Bryman (2015), social media could negatively influence the business growth
caused by everyone is free to share their post, comments, and views on the websites.
Moreover, it is also evaluated that the satisfied individuals leave their positive experience on
the website while unsatisfied individuals could share their negative experience as it would
make a negative image in the consumer’s mind. Thus, it would decline the sale of the
organization in the least time and cost.
On the other side, Hinz Schulze and Takac (2014) explained that the application of the social
media tools could be time-consuming and costly as compared to other promotional
techniques as it would also the negative image on the marketplace.The company could take
the effort to maintain the social media practices. An organization can take more effort to keep
the social media practices in the business that can be expensive to successfully operate the
business. It is also found that if the company has lack of human resources then it could be
complicated to effectively distribute the sources of social media. In addition, it is also
analyzed that human resources could be imperative component for the organization to react
on the feedback, queries of consumers (Nielsen and Schrøder, 2014). It is also found that
workforces could play a crucial role in making an effective relationship with customers by
implying the social media. Hence, it can be said that human resources could negatively
influence the performance of the organization.
In favor of this, Trainor et al. (2014) opined that the social media enables everyone to freely
express their opinion, feelings, and consumers perceptions. As a result, it could negatively

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influence the business growth. Therefore, it can also be evaluated that one negative post of
the organization could decline the financial condition of business by making a negative image
of the brand in the consumer’s mind. In addition, it is also analyzed that the social network
could prevent the company to continue growing.
To suggested strategies for improving the social network's practices in the organization
of social networks - In case of Wesfarmers, Australia
Serrat (2017) suggested that company should use the marketing mix strategy for effective use
of social networks. Further, the marketing mix strategy considers many elements like price,
product, place, and promotion. Through this strategy, the company will be capable to make
an effective decision towards firm. As a result, the organization will be capable to obtain a
higher competitive benefit. In addition, it is also stated that organization should give more
priority to their specified customers rather than focus on product and services promotion.
Moreover, social media facilitate the organization to openly communicate with consumers
and obtain a reliable outcome. The organization should also need to gain depth understanding
about the social media practices caused of attracting a large of a number of consumers and
retain them of long-term. Consequently, the organization would be capable to enhance their
productivity in the least time and cost. It could also support to comprehend how consumers
will be influenced together with examining ways of enhancing the customer loyalty (He, et.
al., 2015). It will support the organization to retain their customers for long-term and simply
attract new consumers.
In opposition to this, Hollenbeck and Jamieson (2015) examined that organization should use
marketing strategy as it would be effective to build an effective relationship with customers.
Consequently, the organization could improve their brand image in the market as it would
support to enhance the profitability of the firm. An organization should also make a clear goal
and objective towards the social media as it would support to make a clear image of the brand

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in the consumer’s mind. It will also a direct impact on the growth of the organization. It could
also be effective for the attainment of targeted goal in the least time and cost. Moreover, it is
also found that a company should concentrate on certain factors like cost, network and time.
Through this, the organization will be able to obtain a reliable and valid outcome. Moreover,
it is stated that the appropriate use of social network could facilitate the organization to
enhance their business growth and obtain a reliable outcome.
Conclusion
With respect to the above discussion, it can be summarized that the social network could
directly influence the growth of the business. In can be concluded that social network could
aid the organization to promote their products and services among consumers. The social
network could aid the organization to determine needs of consumers and meet them
accordingly. Consequently, the organization could make their positive image in the
marketplace by using the social networks.
It can also be stated that company could also be capable to get the higher competitive benefit
in the least time and cost. In addition, it can also be evaluated that the social media could also
a negative impact on the organizational performance by offering the equal value to everyone
for sharing their ideas and views. Through this, an individual could share their positive as
well as negative experience on the social media. Hence, it is analyzed that negative comment
of individuals could negatively impact on the organizational performance.
Moreover, it is also found that organization should use marketing mix strategy as it would be
effective to improve the use of social network in the organization and obtain a reliable
outcome. The marketing mix strategy will also aid the company to effectively operate their
business.

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