Business Research: Social Networks in Business - Semester 2/2017

This report provides a comprehensive analysis of the advantages and disadvantages of utilizing social networks in business. It begins with an introduction to the increasing role of technology and social media in enhancing business communication and productivity, emphasizing the use of social networking platforms for brand promotion and global market expansion. The report outlines the project's objectives, scope, and a detailed literature review, examining the impact of social media on business performance, including the changing needs of customers, the significance of social media channels, and the importance of online advertising and customer feedback. The study explores both the positive impacts, such as connecting the world, attracting global consumers through online advertising, and providing immediate feedback, as well as the negative aspects, such as challenges in gathering customer feedback and privacy concerns. The report concludes by providing recommendations on how to overcome barriers to effectively using social networks in business and provides a reference list.

Running head: BUSINESS RESEARCH
Business Research
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction..................................................................................................................................2
3. Project Scope...............................................................................................................................3
4. Literature Review........................................................................................................................4
5. Conclusion.................................................................................................................................13
Reference List:...............................................................................................................................14

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Topic: Advantages and disadvantages of using social networks in business
1. Introduction
People belonging to the current era are gradually becoming accustomed with the
advancement of technology. The overarching term social networks ensure systematic practice
that allows business organizations in improving the way of communication as well as
productivity. Social networking is the form of internet based social media programs that allows
making an effective connection with business clients as well as customers. Marketers in order to
enhance their brand image and reputation intend to use the popularity of social networking
platforms (Baltar and Brunet 2012). The enhancement of social networks allows the business
organizations in getting familiar with the new customers who even belong to different
geographical market. With the help of social networks number of business can be expanded to
different geographical corners. The business executives get the scope to promote their brand and
services to various geographical areas. The products and services get the scope to reach beyond
regional market. Therefore, business executives get the opportunities to expand their entire
process of business in the international market again.
At the same time, the emergence of social networking sites are constituted with some of
the major disadvantages as well. After the emergence of social media the business service
providers get least opportunity in collecting customers’ feedback by making face to face
communication. Customers while providing necessary feedback to the service providers
regarding the products as well as services cannot maintain privacy. Feedback through social
media or any kind of private forum is not private. They have to make any kind of comment
publicly (Picazo-Vela et al. 2012). For that particular reason large number of customers does not

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intend to provide feedback through social networking sites. Business organizations have to face
difficulties in gathering customers’ feedback. This particular study has focused to make an in-
depth analysis about the advantages and disadvantages of using social networks in business.
2. Project Objective
The primary aim of this particular study is to critically evaluate the advantages and
disadvantages of using social networks in business. With the help of various eminent scholars
the study has focused to present both the positive as well as negative impact of using social
networking sites. The primary objectives of this specific study are as follows:
 To critically evaluate the advantages and disadvantages of using social networks in business
 To highlight the factors that affect in using social networking sites within business
 To provide some of the major recommendations on how the necessary barriers of using social
networking sites can be overcome
3. Project Scope
It has been observed that in last five years business organizations especially small and
medium enterprises are facing innumerable difficulties in expanding their entire process of
business in different geographical boundaries (Aljabre 2012). People belonging to the various
countries are not aware of the products and services of those small and medium organizations.
Automatically, the target market of those organizations remains the same. Business executives
do not get enough scope and opportunities in enhancing their target market for rendering a
boundary on the overall communication. In order to make a change on the overall business
process the executives of various organizations have decided to emphasize on the social

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networking sites for enhancing their overall business process. After the emergence of social
networking sites the business managers have faced immense scopes to introduce their brands as
well as services beyond going the regional market (Sekaran and Bougie 2016). At the same time,
emergence of social network has brought some of the disadvantages on overall business
performance as well. This particular study has primarily focused to make an in-depth critical
analysis about the impact of social networking on the enhancement of overall business process.
4. Literature Review
Literature review is the systematic procedure of making an in-depth analysis about a
particular topic by involving some of the eminent scholars belonging to the contemporary ages.
In this specific study an in-depth critical overview about the impact of social media network on
the overall business performance has been portrayed.
 The overall concept of social networking sites and its significance on business
performances
Batjargal et al. (2013) stated that with the dynamic change of global industry the needs
and demands of the customers are changing gradually. As per the earlier business scenario,
people were very much accustomed with the traditional media networks. Traditional media
networks include television, radio and print media and so on. People belonging to different
geographical boundaries are not very much familiar with the service process of business
organizations especially small and medium enterprises. Therefore, social media platform is one
of the most effective media vehicles with the help of which people belonging to different
geographical markets can communicate with each other by sitting at their own place. As report
says, around 40% of the populations are connected with social networks (Myers 2013). The first

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billion reached within the year 2005. The second billion reached within 2010 and third billion
reached within 2014. After the increase of wide range of social media users the business
performers get better scope to interact with their clients (Baruah 2012). At the very initial period
the promotional activities were highly dependent on the electronic as well as print media
vehicles. International customers get least opportunities in sharing their own opinion regarding
the reliability of products and services. In this kind of situation, the social networks have become
of the most significant platforms for introducing the brand in the global market.
As emphasized by Sashi (2012), large number of business organizations are primarily
associated with some of the most recognizable social media channels for promoting their entire
business process in different geographical corners. The social media channels include Facebook,
Twitter, Google Plus, Linkedin, etc. The rate of social media users all over the world includes:
Figure 1: The rate of social media users all over the world
(Source: Zikmund et al. 2013)

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The numbers of Facebook users are wide in range in comparison to other social media
platforms as opined by Gronum et al. (2012). Large number of business organizations tends to
give their online advertisement of products and services through social media pages. People with
the current trend do not intend to follow news in a stereotype manner. Therefore, business
experts do not intend to use the news channels as their platform of business promotion. After
rising the innumerable rate of Facebook users is one of the major advantages for the business
experts (Denscombe 2014). As a result, the marketing managers are intending to use Facebook
pages for drawing the attention of customers. On the other hand, other people belonging to
different geographical markets to use other social networking sites as well. Customers of global
areas can get the scope to provide their own point of views regarding the service quality a
particular brand in social media platform. Okazaki and Taylor (2013) opined that business
experts do not have to go anywhere in order to gather necessary feedback from the customers.
This particular study has focused to make an in-depth overview about the positive as well as
negative impact of social networking sites in expanding the entire business process. The range of
target market can also be increased after the use of social media platform.
 The impact of social networks on business organizations
In order to evaluate the impact of social network on the overall business the study has
tried to portray both the positive as well as negative impact. As per the opinion of some of the
eminent scholars some people are not very much accustomed with the advancement of
technology. Rennie and Morrison (2013) stated that especially people who belong to the age
group of 40 to 60 are not very much aware of operating technological process. In this kind of
situation, social media networks act as a major negative impact on the overall performance level
of the organization. At the same time, some of the eminent scholars have stated that social media

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has emerged as a bridge among the customers of different geographical markets. Business
experts are flexible enough in launching the brand in the international market with the help of
social media platform. Automatically the business experts have raised their target group beyond
going regional market.
After the evaluation on the impact of social media platform on the overall business
process this particular study has provided an in-depth overview on how much effective the social
media is for enhancing the business performance level of the organization. While providing
some of the major recommendations on how the necessary barriers of using social networking
sites can be overcome the study has suggested in providing training and development session to
the employees based on which they can enhance their skill and competency level.
 Necessary advantages and disadvantages of social networking sites
As emphasized by Slovensky and Ross (2012), social networking sites are the flexible
platform where the business organizations can create personal profile, own page and forum for
collecting customers response. With the growing progress of civilization the business trends are
getting changed gradually. Employees are getting accustomed with communicating people with
the help of social media platform. In this kind of situation, social media has become one of the
most inevitable platforms for business promotions as well as expansion. On the other hand some
of the eminent scholars believe that social media platform is possessed with some of the major
disadvantages as well. The primary advantages of using social networking sites are as follows:
 Connecting the entire world:
Social media has connected the entire world within a specific boundary. An individual
social media user can communicate with anyone by sitting at their own place. Therefore,

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business experts intend to use social media platform for introducing their brands as well as
products to the global market. Borgatti, Everett and Johnson (2013) stated that automatically the
international customers get an effective scope to provide their feedback regarding the reliability
of products. Business executives on the other hand, get an opportunity in enhancing their product
variety to meet the needs and demands of global consumers. In this kind of situation, people
belonging to different geographical market would like to show their interest in using products as
well as services due to the large number of product variety.
 Online advertising attracts global consumers:
Social networks allow the organizational employees to present the advertising campaign
Worldwide. Social media users by sitting at their own workplace can view the online
advertisement. While presenting the advertising content the marketing executives have to focus
on some of the major aspects. Chen and Bryer (2012) stated that the content writers should focus
on developing the content in such a way that people belonging to different geographical ages and
religious backgrounds can easily understand the content. On the other hand, the business experts
should never focus on the people of specific geographical location. Product should be designed
in such a way that people of various religious backgrounds can focus on using the products as
well as services.
 Providing as well as collecting immediate feedback:
With the help of social network platform the customers get the scope to provide an
immediate feedback regarding the reliability of products and services (Eriksson and Kovalainen
2015). In most of the cases it has been observed that the business experts have provided negative
regarding the quality of products as well as services to the business experts. Based on the

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customers’ feedback the organization is able to change their strategies and policies for fulfilling
the needs and demands of the customers. On the other hand, it has also been observed that
business experts get the scope of providing immediate feedback to the customers so that
customers do not lose their trust on the organization.
On the other hand social networking sites are not devoid of some of the major
disadvantages as well. The primary disadvantages of social media networks are as follows:
 Lack of direct communication:
After the emergence of social networking sites the business experts fail to communicate
with the customers directly. As a result, the customers do not get the scope of providing direct
feedback to the service providers. As per the opinion of Whiting and Williams (2013), direct
communication is highly important in order to get an effective feedback from the customers.
Social media platform is not competent enough in collecting genuine feedback from the
customers as their every comment is published publicly.
 Raise of cyber bulling and criminal activities:
The raise of cyber bulling crime activities are increasing day by day after the emergence
of social networking sites. Use of social media can expose the individuals for harassment as the
entire contact detail is very much exposed to everyone (Dabner 2012). In this kind of situation,
people belonging to different geographical markets are facing insecure in using the platform of
social media.
 Influencing only young generation:

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Hamat, Embi and Hassan (2012) opined that social media network is influencing young
generation only with the help of which aged persons belonging to different geographical
boundaries are getting deprived of getting aware of the upcoming brands and products.
Therefore, the people belonging to different age group are not very much accustomed with the
advancement of technology. In this kind of situation, business organizations fail to draw the
attention of customers belonging to different geographical boundaries.
 Factors implementing social network on business performance
Some of the major factors that become a serious hindrance in using social networking
sites within the process of business are as follows:
 Lack of proper training on technology:
As per the opinion of Dabner (2012), senior employees do not have proper training in
handling the technological operation. As a result, while providing customer services those
employees have to face innumerable difficulties in operating the technological devices.
Customers fail to get proper response at the stipulated time. Automatically they intend to show
their reluctance in using the products and services from this particular organization. As
emphasized by Eriksson and Kovalainen (2015), organizations should always provide an
effective training and development session to the employees. As a result, the customers would
not have to face difficulties in receiving the service process within specific time.
 Lack of sufficient technological equipments
It has been observed that business organizations especially SMEs sometimes fail to use
social media networks for communicating with the customers due to the lack of sufficient

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technological equipments. On the hand, employees are not capable enough in operating
technologies (Chen and Bryer 2012). On the other hand, the employees so not have enough
scope in developing their technological skill due to the lack of proper equipments at the
workplace. In this kind of situation, services providers have to be dependent entirely on face to
face communication, direct marketing and so on. Technological equipments enable the service
providers in maintaining communication by sitting at their own workplace. At the same time, the
customers get the scope to receive an immediate response from the customer service providers.
 Lack of economic strength
Economy is one of the most significant factors based on which the rate of business
expansion is highly dependent. Organizations are able to implement technological equipments,
web page promotion and social media promotion only when the economic strength of the
organization is on the favor. It has been observed that large number of business organizations
due to the lack of economic strength fail to use social media networks for promoting their
business a as well as for communicating with the international customers. As per the opinion of
Borgatti, Everett and Johnson (2013), marketing managers should invest sufficient number of
budget for the business promotion. As a result, the customers belonging to international markets
would become aware of the brands and products.
 Limited target customers
As opined by Slovensky and Ross (2012), social media network attracts those kinds of
customers who are from young group of ages. Most of the social media users are from young
generation. As a result, people belonging to other age group face difficulties in getting proper
knowledge and information regarding the reliability of brands and products. In this kind of