Dynamic Strategy: Facebook Stakeholder Analysis Report

This report provides a stakeholder analysis of Facebook, examining its vision, mission, recent developments, challenges, and industry trends. It utilizes the stakeholder view model to identify and analyze key stakeholder groups, including users, employees, government, and competitors. The analysis ...Read More

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Contents
Part A.........................................................................................................................................2
Introduction of Facebook.......................................................................................................2
Part B..........................................................................................................................................2
Stakeholder View...................................................................................................................2
Part C..........................................................................................................................................3
Stakeholder Analysis..............................................................................................................3
Government........................................................................................................................3
Employees..........................................................................................................................4
Facebook users...................................................................................................................4
Competitors........................................................................................................................4
Conclusion..................................................................................................................................5

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Part A
Introduction of Facebook
The aim of the report is conduct the stakeholder analysis of the well-known company that is
Facebook. Along with this, the analysis of the stakeholders has been conducted with the help
of the stakeholder’s view model including the major stakeholders. Facebook Inc. is an
American online social media as well as the social networking service company that is
majorly based in Menlo Park, California. The company came into existence in the year 2004
to complete the mission that is to give people the power to form and bring the world closer
together. Most of the people use our products to remain connected with the family and friends
to discover what’s going on across the world as to share and express the essential elements
(Facebook, 2019).
The vision of company is majorly based on the company’s social media service offering that
is people make use of Facebook to stay linked with the family as well as friends to determine
what’s going on in the world as well as to share and express what matters to them (Smithson,
2019). The recent development that is done by Facebook include hiring of Nick Clegg as the
former UK deputy prime minister as it’s head of global policy as well as communications.
Clegg will provide the support to the company in a manner to handle the fallout majorly from
the recent scandals related to privacy, fake news and other elements (Mercer and Macaulay,
2018). This shows that the major challenge that is faced by company include issues with the
privacy as well as security of Facebook. The trends of the company are clear as there is 68%
of American who use Facebook and 74% of the user’s visit on regular basis with 96% used it
with the help of mobile phone. In the end, this can be said that there is wide range of
stakeholders of company that are required to be included.

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Part B
Stakeholder View
Facebook social media business leads to the influence on the stakeholders that are present
across the world. The company majorly has below given stakeholders group that are linked to
the corporate citizenship that is arranged as per the CSR strategy.
The above diagram presents the major stakeholders of the company that include employees,
government, advertisers, competitors, Facebook users and government. The brief overview
about these stakeholders is given below: -
 Users: - Company majorly offer their services to the users due to which they are
considered as the stakeholder group that gets the top prioritization in the corporate
citizen after considering the mission as well as vision of company (She & Michelon,
2019). Being the stakeholders of the company, specific users include adults as
Facebook
Stakeholder’s
view
Government
Facebook users
Competitors
Employees
Community

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stakeholders who remain interested in the ease of making the use of services with the
hope of the privacy and security of the personal details.
 Employees: - Employees are considered as the major stakeholders as they are the
assets whose contribution in the business of social media is high. This corporate
citizenship stakeholder plays a vital role in influencing evolution of the company
majorly in developing as well as improving the products (Kissinger, 2018).
 Community: - These stakeholders play vital roles in the business of company as they
can affect the perception of the members as well as the advertisers. This influence the
working of the company in the positive as well as negative side.
 Government: - The government is considered as one of the major stakeholders as
they are the one who keeps the company in compliance with the interest as well as
policies of the government that majorly include the regulatory requirements. The
company form tie up with the government in different programs that lead to their
partnership which manages the relationship between both government and Facebook
(Ji, Li, North and Liu, 2017).
 Competitors: - The competitors of the company are considered as there major
stakeholders that influences the working. The major competitors include what’s app,
snap chat, Twitter, LinkedIn and many others try to capture the maximum attention
from the users present in the market.
Considering the analysis, it has been found that the major stakeholders groups that lead to the
influence on the working of the company include competitors, Facebook users, government
and employees. The analysis on the selected stakeholders has been conducted below in the
next section of report.

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Part C
Stakeholder Analysis
Four major stakeholder’s groups of Facebook are stated below:
Government
Government is the essential stakeholder of the company as they play the major role in making
the rules, regulations and laws in regards with the social media apps. It is the important for
the company to follow the rules and regulations as the policies of the government keep the
company in the obedience. Facebook also show some supports to the governmental programs
as they have the social responsibility strategy to obligate with the rules and regulations of the
government (Haigh and Wigley, 2015). Government makes coalition so that the dominance
of any party can be reduced.
Employees
Employees are most important asset of Facebook as they are creating, managing and
improving the functions and the activities of the company. Employees are responsible for
providing the best online social media services. If the employees of the Facebook will not
satisfied with the working environment or they stop working and then it will result in the
declining the performance and it will also result in losing the users. So for the improvement
and the development of the company and for fighting the competitors of the Facebook, the
employees are accommodated with the high wages (Krishna and Kim, 2015). The interest of
the employees is put on priority in the company such as environment culture, career
development, compensation, etc. The culture of the Facebook is the hacker culture so it is
employees has the responsibility to focus on the resilience.

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Facebook users
The users are the most important stakeholder for the company as they are the one who is
accessing the social media services and increasing the popularity of the Facebook. Facebook
can earn more profit by increasing their user only so it is important for the company to
provide best services to their users and to make the good connection with them. The users
wants that their private information should not be disclosed by the company and at the same
time they also want their Facebook provides the ease and the convenience (Cho, et al., 2017).
Their main source of the income to the company are their users and the main motive of the
users is to make the connection with the people through the Facebook and they also update
the status and scroll the data to evaluate more information about the people.
Competitors
There are many social media apps which are providing the same services of making the
connection with the people such as Twitter, Snapchat, Instagram, Quora, etc. These are the
major competitors for the company so the company has to manage their activities and update
their functions on the daily basis so that they can fight and compete with other social media
apps (Shin, et al., 2015). There are hundreds of the social media sites but the Instagram and
the Snapchat is growing their audience so it is impacting the Facebook at the large manner.
Lots of issues and problems are created in the company due to increasing the competitors.
Conclusion
From the above report it is concluded that stakeholder plays the major role in the Facebook as
they helps in operating, accessing and managing the operations of the company. The success
of the company is dependent on the performance of the stakeholders. In this report the
stakeholder model has been explained which is stating the stakeholder group. Facebook is
large social media organization so their internal and the external stakeholders have the great

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impact on the company. In this report the major four stakeholders who are competitors,
employees, government, and the users of the Facebook has explained and their motive and
behavior on the company has also determined.

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References
Cho, M., Furey, L.D. and Mohr, T., (2017) Communicating corporate social responsibility on
social media: Strategies, stakeholders, and public engagement on corporate
Facebook. Business and Professional Communication Quarterly, 80(1), pp.52-69.
Facebook (2019) Our Mission [Online]. Available from: https://newsroom.fb.com/company-
info/ [Accessed on 8th August 2019]
Haigh, M.M. and Wigley, S., (2015) Examining the impact of negative, user-generated
content on stakeholders. Corporate Communications: An International Journal, 20(1), pp.63-
75.
Ji, Y.G., Li, C., North, M. and Liu, J. (2017) Staking reputation on stakeholders: How does
stakeholders’ Facebook engagement help or ruin a company’s reputation?. Public Relations
Review, 43(1), pp.201-210.
Kissinger, D. (2018) Facebook Inc. Corporate Social Responsibility & Stakeholder Analysis
[Online]. Available from: http://panmore.com/facebook-inc-stakeholders-corporate-social-
responsibilities [Accessed on 8th August 2019]
Krishna, A. and Kim, S., (2015) Confessions of an angry employee: The dark side of de-
identified “confessions” on Facebook. Public Relations Review, 41(3), pp.404-410.
Mercer, C. and Macaulay, T. (2018) Facebook news and announcements [Online]. Available
from: https://www.techworld.com/picture-gallery/apps-wearables/facebook-big-
announcements-3605650/ [Accessed on 8th August 2019]
She, C., & Michelon, G. (2019). Managing stakeholder perceptions: Organized hypocrisy in
CSR disclosures on Facebook. Critical Perspectives on Accounting, 61, 54-76.

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Shin, W., Pang, A. and Kim, H.J., (2015) Building relationships through integrated online
media: Global organizations’ use of brand web sites, Facebook, and Twitter. Journal of
Business and Technical Communication, 29(2), pp.184-220.
Smithson, N. (2019) Facebook Inc.’s Mission Statement & Vision Statement (An Analysis)
[Online]. Available from: http://panmore.com/facebook-inc-vision-statement-mission-
statement [Accessed on 8th August 2019]