MGT502 Business Communication: Financial Benefits of Facebook

This essay examines the financial benefits of using Facebook in an organizational context. It argues that Facebook enhances a company's ability to communicate with its target audience, build brand reputation, and increase revenue. The essay highlights how Facebook facilitates contact with investors and customers, leading to increased profits and competitive advantages. It also discusses how Facebook can reduce marketing costs, increase brand loyalty, and improve relationships with stakeholders. Furthermore, the essay mentions that Facebook can be used for internal communication, employee recruitment, and training, ultimately contributing to efficient financial management and overall organizational success. The author supports these claims with references to several studies and researchers.

RUNNING HEAD: BUSINESS COMMUNICATION 0
“FACEBOOK”

BUSINESS COMMUNICATION 1
Facebook leads in providing various benefits to the organization that is it increases the
capability of the organization to transmit the messages to their target audience (Schivinski &
Dabrowski, 2015). It also supports in increasing the reputation of the organization because of
promoting the products in Facebook and spreading awareness to increase the knowledge
regarding the products and services. In this essay, discussion is made on the “Financial benefits
of Facebook in organization context” argument.
Facebook provides various financial benefits to the organization it is because of reaching
billion number of users, it is because through this organization can contact various number of
investors and customers. This result in increasing profits and revenue of the organization as well
as organization also increase the capability to gain competitive advantage. The reputation of the
company also increases by adopting Facebook while communicating with the stakeholders it is
because through this organization focuses on collecting the e-mails from the Facebook fans
(Duffett, 2015). This is done to increase connection and contact with the other communities’
members outside the Facebook. Further, in internal environment, it increases involvement ad
participation of all the team members because of selecting the specific method of decision
making. This supports in making adequate decision making by including all the members in
organization and also help the organization to reduce the cost because of decreasing the wastage
and other expenses in the company (Schivinski & Dabrowski, 2015).
The Facebook help the company in increasing their brand reputation through which it
become the effective tool of the organization because of impacting the financial growth of the
organization in highly positive manner (Karabulut, 2013). This leads in reducing the marketing
cost of the organization because of promoting the product with good content so that more
customers gets attracted towards the product and more knowledge. Through this more awareness
is spread among the consumers can increase the capability of the individual to invest in research
and development so that efficiency will be maintained in the company. It can provide various
other benefits to the company that is it results in increasing brand loyalty by developing better
image in the eyes of the customers (Bonsón & Ratkai, 2013). It is because the reputation is
increased by increasing loyalty among the customers towards the organization by getting more
information about the products. This leads in raising the support with the other financial
institutions to increase the activities in the organization to sustain in competitive environment.

BUSINESS COMMUNICATION 2
Researchers revealed that through adequate application Facebook social capital will be created
and contribute to providing good image of the organization it is because of ease in accessing the
funds through the marketplace (Lee, Hosanagar, & Nair, 2018).
The estimation revealed that through the Facebook companies share important
information about the company to increase contact with the business and customers it is because
through this company can target potential customers (Karabulut, 2013). This also results in
raising number of clients for increasing contract with suppliers and other investor through which
profitability will be managed in the organization. Therefore, it supports in increasing relationship
with the internal and external shareholders and help the company to promote the products and
raise more transactions through internet. The estimation revealed that through the distinctive
features of Facebook that is video conferencing, text message more connection among the
employees, this can results in finding the best way to perform the activities and reduce the work
by optimum utilization of the resources (Lee, Hosanagar, & Nair, 2018). This results in reducing
the expenditure for reducing the resources and other functions to achieve the overall objectives
of the organization.
Facebook also support the organization in managing the finance by efficient and effective
selection of the competent employees. It is because in Facebook company also post
advertisement for recruiting the adequate employees, through which most appropriate employees
can apply for the job position and can maintain specialization in the organization (Bonsón &
Ratkai, 2013). This also wok according to the requirement of the company and reduces the cost
of recruitment and hire appropriate employees according to the needs and requirement of the
company. Further, it is revealed that it manages various human resource activity it is because the
advertisement of the training for the employees information is also transmitted among the
employees. Through Facebook and text messaging feature allow the employees to chat in group
when the particular employee is not present in the company, this can support in making adequate
decision and can make decisions regarding the changes in the particular area so that financial
resources will be effectively managed by the organization (Schivinski & Dabrowski, 2015).
Further, it is revealed that Facebook affects the activities and financial resources in more
efficient manner it is because of posting important data to educate the employees as well as
customers, this revealed that more positive results will be achieved by focusing on the internal

BUSINESS COMMUNICATION 3
activities in which employees become benefitted. In the external environment customers become
benefitted, which also provide efficient benefits to the company by raising their status for more
contracts and this managed the cash inflow and outflow of the organization (Lee, Hosanagar, &
Nair, 2018). The companies can invest their funds in efficient activities it is because through
Facebook company can check the sales and profits of their competitors through their
advertisements.
From the above, it is conclude that nowadays Facebook is being used by the company for
communicating the message and for increasing the reputation of the organization. It is because of
providing several advantages to the organization such as increase investment, reduce cost etc.
The transmission of adequate information through Facebook supports in increasing the revenue
of the organization. The estimation revealed that Facebook affects the financial position of the
company in more positive manner it is because this leads in increasing decision making and can
include more investor to invest in the organization. The use of Facebook help the company to
communicate with more stakeholders and which results in improving the financial position of the
company.

BUSINESS COMMUNICATION 4
References
Bonsón, E., & Ratkai, M. (2013). A set of metrics to assess stakeholder engagement and social
legitimacy on a corporate Facebook page. Online Information Review .
Duffett, R. G. (2015). Facebook advertising’s influence on intention-to-purchase and purchase
amongst Millennials. Internet Research .
Karabulut, Y. (2013). Can facebook predict stock market activity? In AFA 2013 San Diego
Meetings Paper .
Lee, D., Hosanagar, K., & Nair, H. S. (2018). Advertising content and consumer engagement on
social media: Evidence from Facebook. Management Science , 64 (11), 5105-5131.
Schivinski, B., & Dabrowski, D. (2015). The impact of brand communication on brand equity
through Facebook. Journal of Research in Interactive Marketing .