Strategic Management Report: Analyzing Facebook's Business Growth

This report provides a comprehensive analysis of Facebook's global strategic management, examining the business and corporate strategies employed by its CEO, Mark Zuckerberg, to drive organizational growth and navigate complex challenges. It includes an external and internal environment analysis using tools like SWOT and PESTLE, highlighting how Zuckerberg managed issues through business frameworks. The report explores strategic models such as Porter's generic strategies and Blue Ocean Strategy, detailing how Facebook leverages these to maintain a competitive advantage. Furthermore, it investigates the strategic planning processes designed and implemented by the CEO, addressing contemporary strategic issues and offering recommendations for the company to sustain its market position. The analysis emphasizes the importance of continuous innovation, adaptation to market trends, and effective communication in achieving Facebook's strategic goals.

GLOBAL
STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Examine the business and corporate strategies used by the CEO which has brought about
positive contribution to the organisation?....................................................................................3
Undertake external and internal environment analysis and analyse how the complex problems
at FACEBOOK were managed by the CEO using business framework.....................................4
Porter's generic strategy model....................................................................................................5
Blue ocean strategy......................................................................................................................6
Examine how the CEO of FACEBOOK created, developed and designed strategic planning
for FACEBOOK..........................................................................................................................7
Different contemporary strategic issue .......................................................................................8
Justification .....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global strategic management activities enable the business to take advantage of the
opportunities globally. The managers use various tools and techniques in order to analyse the
business environment. Various factors such as political, economic, social, technological and
legal factors affect the strategies of business and affects its operations. It becomes very difficult
of the managers to predict as there are rapid changes in the environment (Rabrenovic, and et.al,
2018). In order to survive in the competitive market and to expand its business, management
should make various modifications in its existing plans and strategies. This report covers the
various business and corporate strategies that is used by CEO, external and internal analysis of
Facebook, different strategic models used by the company. It also highlights the strategic
planning for the company and critically analyse the different levels of strategy adopted by the
organization and recommendation for the company in order to survive in the market.
MAIN BODY
Examine the business and corporate strategies used by the CEO which has brought about
positive contribution to the organisation?
There are different types of strategies used by Mark Zuckerberg in order offer positive
contribution to the organisation.
Changes is good, don't be afraid- This strategy is related to motivate the employees or
managers who are afraid of facings the toughs situations so CEO of Facebook decided tos choose
corporate strategy in order to provides comfort tos the staff. In this kind of situations it is
necessary to provide them trainings so that easy to fit into new situation. The CEO and the senior
managements team are discussed with junior or middle managers so that they can guide
employees accordingly.
Hire and develop manager who can energize control and excite- Facebook recently
hire personal team which are helps for development the team in orders to completed the goal. It
also helps to defining the vision so that employee can understand the missions of the
organisations and put theirs efforts to completed the mission (Alraja, Khan and Aldaas, 2020).
Other than that Mark Zuckerberg has uses autocratic leaderships style in order to achieving
positive results. So, that employee can timely completed their task.

Test, Test, Test- Whenever Facebook update anything in their applications they did not
guess for particular actions because they are likely to test firstly with their staff then they try on
other community. It helps to get real feedbacks in order to change anything into applications this
is one of the majors technique which are help to accurate feedback also audience of Facebook are
very connected with it so they update the applications on the regular basis. Also, people are
sharing on social media for measure connectivity in order to increase the revenue (Arora, Bansal
and Dwivedi, 2019).
Creating a framework for innovation- When Facebook started at that time most of the
people are using in the system but after some time they have updated the application in such a
way so that it can be easy to user by people in mobile. This strategy was one of the best in order
to expand the business in new direction because to carry mobile is very easy so that more than 10
billions people are suing Facebook. Now Facebook updated on the regular basis so that people
are waited for new update.
Undertake external and internal environment analysis and analyse how the complex problems
at FACEBOOK were managed by the CEO using business framework.
SWOT analysis used for analysis the internal factors
Strength Weakness
 User have excellent experience
 There are mores than billions of user
active on Facebook (Macarthy, 2021)
 Integration with application and
websites
 Sometimes social network lack
 Lack of website customizations
 Weak CTR of advertisement
Opportunities Threats
 Diversification for sources of revenue
 Great expansion to China
 Mobile devices are increasing and it
also increasings Facebook users.
 Growth rate were slow for online
advertisement
 Weak business model
 Identifications of threats
PESTLE analysis for analysing external analysis

Political- The political stability of the company is already good because of the developed
country with diversifying the business in the market. Facebook has the opportunity for expansion
in order to manage the stability of others company. However, sometimes it suffer due tos nots
expand the business ins China because there were different policies followed (Zhang and
Hopper, 2018).
Economic- Market penetration effort are helped for Facebook in order to increasing the
economic stability that dealings infrastructure, telecommunication etc. So it is important to
expand the access of social network.
Social- Chosen organisations are popular in social condition in order to manage social
trends of the company for remoting macro environments. It has the opportunity of increasings
support of CSR as well as online buying. For example,s there are different kinds of campaign are
offered by the company for promoting their services (Jhunjhunwala and Deo, 2018).
Technological- Th technological advancement offered by company is working well and
it helps to attract more and user towards this, also mobile users are increasing day by day and it
helps to increase productivity of the organisation. On the other hand it can be threats which is
related to markets saturation. Th diversification of online retail store are threats for the company.
Legal- Some laws and regulation are followed by company for increasing the security of
legal threats.
Environmental- Some of the climate problems are faces by Facebook in results some of
the crisis are relates to transfer the property and all the equipment used by them (Lam and
Yeung, 2018).
Ins orders to improve the weakness of company Mark Zuckerberg applied GAP business
frameworks which were helped for recognising the difference for goals and operation of the
company. Tos improve the social network CEO has decided to hire new technical team which are
providing better software and it also helps to promote website so that more and more individual
are willing to use Facebook.
Porter's generic strategy model
Facebook uses varies strategic tools and models to determine the profitability and also
competitive advantage in the market. The company uses Porter's generic strategy model that is
applied in order to classify the company behaviour and drive organizational behaviour. The
model is classified into four strategy:

 Cost leadership strategy: The company focuses on reducing the cost to deliver best
services to its customers. The sources of the cost advantage depends upon the overall
composition of the company (Yildiz, 2018.). The company sues this strategy to gain
competitive advantage and also with the motive of increasing the market share by
lowering the prices of the services and providing new services.
 Differentiation strategy: Facebook company used the differentiation strategy and
provided services which was attractive and different from its competitors(Tony-Okeke,
and Onyemachi, 2018). The company focused on more market research and focused on
introducing new services which helped the company to gain advantage and compete.
 Focus strategy: The cost focus strategy is the evolution of Cost leadership strategy. The
company has focused on particular segment while delivering services which helped the
company to identify the latest trends in the market.
 Differentiation focus strategy: It is the differentiation of differentiation strategy and
focused on its target segments and rendered services according to the changing
preferences of the customers. It also focused on providing services that is different from
the competitors.
Blue ocean strategy
Blue ocean strategy is associated with differentiation and low cost to open up with market
space and create new demand for the products and services. The Blue Ocean strategy main
purpose is to create and capture the market share thereby making competition irrelevant.
Through the application of Blue ocean strategy, it has helped the Facebook company to analyse
the market and create a new need of the services that adapted to the demand. The company
focused on developing new services rather than concentrating on competition. After analysing
the current situations, the company created a new market space and created various factors that
influence the market (Gobble, 2018). The main aim of the Blue Ocean Strategy is to create value
innovation and focused on reducing the costs and increase the customers. The company has
focused the current market trends and target audience and aimed at providing the services to its
customers rather than focusing on competition in the market. The company added new features
and services which companies have not added for better customer experience and also to increase
the market share of the company.

Examine how the CEO of FACEBOOK created, developed and designed strategic planning for
FACEBOOK
Strategic planning is defined as the art of creating specific strategies for business,
implementation of the plans and evaluate the plan associated with the goals and objectives of the
company. It is a concept that focuses on integration of all the departments such as finance,
accounting , marketing and human resource in order to meet the objectives of the company. It
enables the manger to plan for long as well as short term goals by analysing the present and
future situations in the market (Caballero-Morales, 2021). It also helps in examining the
resources that are available and utilization of resources in order to meet the requirements of the
customers and provide new and additional services to its customers. Strategic planning helps in
formulating better strategies using various useful approaches and methods. Communication is
considered as the important part in strategic planning process as it enhances the participation of
employees that shows their dedication towards achieving the goals of the company. As a CEO of
Facebook, they look to the future and focus on short term and long term goals and also
analysing the market conditions and competitors prevailing in the industry. They identify the
what the company wants to achieve like services and facilities to be provided to the customers.
They also identify the strengths, weakness, opportunities and threats which can affect the
company and delegate the task to various departments. The CEO of the company analyse the
strengths and weaknesses of the company and compare with the competitors in the market. It
helps in identifying the areas where the company can gain competitive advantage and the areas
of improvement. After analysing these factors will help to create and design strategies
accordingly. The company focusses on making strategies which have long termed effect on the
company and helps to meet the targets of the company. The company can make various
modifications and add features which provide customer to experience better by using the
application (Djordjevic, and et.al, 2020). The marketing strategies adopted by Facebook had
positive effect but on the other hand many a time it happens that the applications don't work
which can have negative impact so in order to eliminate such barriers the company has made
various modifications in its strategies in order to provide customers quality services. By using
various approaches and models, CEO have enabled the company to create, develop and design
effective strategies which enable the company to move towards achieving the objectives of the
company and gain competitive advantage in the market by providing services to its customers.

Different contemporary strategic issue
The Facebook is leading organisation and afford large numbers customers in domestic well as
international marketplace. In context to that the organisation face various strategic issues in the
market as operating large numbers of function. Therefore, the organization utilized various level
of the strategy which are having contemporary strategic issues. In order to build the competitive
advantage in the large market the CEO of the Facebook organisation is referring the VRIO
model to resolve the problems (Lessard, 2021). The VRIO model refers to the strategic model
which give assistance to the organisation in determining the pros as well as the resources that
increase the valuuse in the marketplace. It deliver various measurement to the organisation to
acquire the success and accomplish the goal in effective as well as efficient manner. It consist of
the four element such as value, rarity, imitability and organization. As per the VIRO model the
organisation is having the benefit of leading the market all over the world with large numbers of
population that will increase the scale of the revenue and growth in appropriate way. In short the
organisation is having the highest value in the marketplace. The owner of the organisation Mark
Zuckerberg face the traffic generation issue of the organisation in order to deal with that
challenges the organization utilized the technology and started running the marketing and
advertising campaign. The issues are raises because the teenagers and the people are sifting
toward different application which is delivering the updated and innovative features in the
marketplace. Along with that the people of different having great technical and troubleshoot
issues in using the Facebook which encourage people to shift toward different websites or apps.
Moreover, the people face the issue of the privacy because the individual people using multiple
account (Lynch, 2018). In order to that the organisation use research and development
programme that also resolve the issue which are related to the technology and the innovation.
The issue in technology and innovation strategy is that many other organisation is utilizing the
same technology in the marketplace so the Facebook is unable to deliver the unique plans of
action to enhance the experience on Facebook. In order to deal with that the organisation
innovate the feature and functions of the company and increase the performance for generating
annual gross profit. Another issue is the Facebook have limited product range in the marketplace
but currently the organisation is expending the productivity by increasing the product. For
instance the organization buy Instagram, whatsapp and oculus. It increase the brand awareness

all over the world among different variety of the customer. Along with finding the solution the
organization acquire the great popularity in the marketplace and increase the permanence of the
company.
Justification
According to the Lasserre (2017) the marketing plans of action is the most suitable form of
strategy which is used by the organisation. The marketing is the most appropriate style which
attract large numbers of the customer and increase the awareness among the people along with
that it attract the consumer toward the organization. The biggest competitors of the Facebook is
the Instagram that also user the same strategy in order to generate high traffic on the app and
enhance the performance. Moreover, the organisation develop videos and the questionnaire in
context to promote the application all over the world . The Facebook started collecting feedbacks
customers to analysis the reason of shifting toward different application. the another strategy the
company used that is research and development which is considered as the most suitable form of
the plans of action. Due to research and development programme the organisation innovate the
privacy issue and also develop the competitive advantages in the marketplace. For instance the
organization started providing the profile shield to the people as the consumer do not to share the
information with every people. It give assistance to the organisation in building the competition
in the marketplace. As per the POZINA, (2018) The snap-chat and Instagram also using this
strategy in order to collect the reviews of the customer. Moreover, the organization determine the
techniques through these plans of action which need to adopt for the better features . For
example in order to beat the Instagram the organization innovate the feature of sharing the
memories which were posted on the Facebook before. Along with that the consumers or the
people are allowed to share their views and feeds on Facebook with all the privacy concern.
Along with that the organization adopt the feature of going live on the Facebook that enhance the
experience of the users also people considered as the comfortable and enjoyable on Facebook as
compare to the other brands.
Recommendation
from the analysation of the report the organization need to develop and adopt various plans of
action to increase the availability and performance in the marketplace. The organization should
control the spread of misinformation, conspiracy, propaganda and other noxious content so the
people did not acquire any sort of negativity from the content which is delivered by the people

on the Facebook. Along with that the organization need to modify the guidelines in a unique
way because it is also used by the other competitive application which is creating pressure on the
company by attracting large numbers of the customers. Beside this the company need to
improve the technological quality which enhance the experience of the people in appropriate
way. The organisation should focus on the privacy and security user and do not allow users to
login in the multiple device at the same time that will solve the issue of hacking and menu-
plating issue(Bogers, et.al 2019). Moreover, the organisation need to modify the help centre
services for the welfare of the consumer or the user so the individual person address the issue in
very appropriate and efficient manner to the Facebook and company should work on t addressed
issue in very short period that will result in improving the performance of the company. It is
recommended to the company that in order to maintain its position in the market and to gain
competitive advantage in the market, Facebook should make modifications in its privacy and
security policy in order to win back the support of the customers. The company should leverage
the knowledge of the outline social media users experience and come up with more creative
ways to improve and enhance the value proposition and to attract more numbers of users.
CONCLUSION
It has been concluded that global strategic management are help to enable business for
capitalised on the basis of competitiveness. The report discussed business and corporate
strategies which are used by CEO of Facebook in order tos contributed to the organisation. Also,
explained internals and external environmental analysis for analysed the complex problem.
Further, described strategics tool and techniques by using Porter generic and blue ocean strategy
and examined the CEO of Facebook for developing and creating strategic planning.
Moreover,critically analysed and evaluated for contemporary strategic issues in the strategy and
justifying corporate example and literature for discussed recommendation for sustaining the
position.

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