Facebook's Strategic Management: Decisions, Stakeholders, Outcomes

This report examines the effectiveness of Facebook's strategic decisions in achieving market success, focusing on stakeholder relations and service quality. It discusses the implications of functional decisions on employee management, shareholder engagement, customer experience, and market reach. The report analyzes the impact of these decisions on various stakeholders, including shareholders, employees, customers, and the broader community, and assesses whether these choices align with Facebook's mission and vision statements. While Facebook has largely succeeded in empowering communities and connecting people, criticisms regarding user privacy are also addressed. The study concludes that Facebook's strategic decisions have generally supported its objectives, but recommends caution in handling user data and enhancing security measures. Desklib provides a platform for students to access similar solved assignments and study tools.

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Introduction
Facebook is a social media platform that is currently among the big four companies of
technological leaders along with companies such as Apple, Google and Amazon. The
organization has more than 2 billion monthly users making it the largest social media platform in
the world. The success of the organization has been made possible by the strategic decisions of
the organization that helped to improve it’s relation with the stakeholders and the society and
deliver high quality products and services (Mariani et.al. 2016)
The aim of the study is to understand the effectiveness of the strategic decisions taken by
Facebook that have allowed it to achieve success in the market and thereby help to understand
the best approaches of strategic decisions that can be taken by business managers to ensure best
results from their operations.
Discussion
The implications of functional decisions of Facebook’s management
The functional decisions that have been made by the management and leadership of Facebook
have several important impacts on the management of the organization. These impacts are
outlined below:
 More efficient management of the employees : the strategic which decisions and
functional decisions of the management in the selection and retention of employees have
helped Facebook to manage it’s employees more effectively while supporting better job
satisfaction and employee retention. This Furthermore have supported the management to
manage it’s workforce and human resources more efficiently.
 Increased engagement with shareholders: The objectives of the organization to focus on
the shareholder’s needs have allowed Facebook to engage in a better manner with them.
This Furthermore has supported the ability of the business to understand the views,
perspective, needs and expectations of the shareholders and assure better profitability for
them thereby earning their trust.
 Improvement in employees competency: through the training and development program
as well as the various skills development programs, Facebook has been able to develop
the competencies of it’s employees allowing them to develop better services and products
for the customers and identify better solutions for the business. This have also allowed
Facebook to inculcate values of creativity and innovation within the workforce.
 Improvement in customer experience: Facebook have always striven towards the
improvement of user and customer experience as an approach towards retaining the
customers and developing brand loyalty. The interface of the website is designed keeping
in mind the customer’s needs and expectations and promote user Friendliness along with
a robust and failsafe design. This have allowed the organization to achieve significant
growths in the customer base.
 Reaching out to new customer basis: The new developments and designs that have
allowed easier access of the Facebook's platform from various devices and development

of various services have allowed Facebook to reach out to new customers and promote
growth of the business.
(Hitting and Duane 2017)
Impact of the decision on the stakeholders
Within the business process of Facebook various stakeholders can be included. Stakeholders can
be understood as any group or individual that can influence the decisions, actions, practices,
policies, objectives and goals of a business. The concept is similar to that is stockholder who are
the investors and owners of the business. The stakeholders who are involved with Facebook
includes its stockholder or shareholders, employees, customers, community, competitors,
suppliers, special interest groups, media, society and general public ( Michael et.al. 2017).
The company has been able to prove profitability for it’s shareholders through an increase in in
the dividends and share prices. The employees are benefitted by the organizational development
through better remunerations, payments and compensation packages. The community benefits
from Facebook’s growth through the growth of a community strength and bonding and develop
cohesiveness in the community. The organization influences its competitors through the adoption
of disruptive technologies as well as new and innovative ideas to stay ahead of competition. The
company supports it’s key suppliers by supporting their growth along with the organization and
ensuring their profitability. Special interest groups are benefitted by Facebook’s growth and
development by achieving a platform that helps them to reach out to their target audiences
(Meyer et.al. 2017). The media is support by Facebook’s growth by the achievement of greater
publicity and reach to audiences through the Facebook platform. The society benefits from this
platform and it’s growth through the development not a new social platform that supports free
communication and speech and supports social causes and movements towards it. The general
public also benefits from the growth of Facebook through an overall improvement in community,
society, economy and the overall public. These stakeholders represents the important social
stakeholders who benefit from the growth of the company and therefore have vested interest in
the company's growth. Their influence in the organization creates legitimacy for Facebook as to
its information in the market as well as support a focus on the urgency to address stakeholder
needs through the organizational policies thereby further promoting stakeholder engagement
(Planting et.al. 2018).
Whether the choices reflect the decision making that is consistent with the company’s vision and
mission statements
The mission of Facebook is to provide the people the power to develop a community that can
bring everyone in the world closer to together. The vision of the organization is to support the
usage of Facebook among people to allow them to new connected by with each other, their
families and friends and be also be updated on the current happenings of the world, sharing their
experiences, opinions, perspectives and choices. Facebook has been able to achieve the mission
of empowering the people to create communities which can be understood by the millions of
active users of Facebook as well as the millions of Facebook pages and communities that
connects all the Facebook users to an overall community through which they can share their
thoughts. This has allowed the users of Facebook to stay connected with their friends, families,

acquaintances , colleagues and business partners and develop a social network that extends
beyond the daily activities of people. Therefore, Facebook has also been able to adhere to it’s
vision statement (Michael et.al.2017).
The choices and strategic objectives of Facebook to increase it’s user base by facilitating free
user accounts, increasing the security, privacy and interface of the accounts as well as it’s
strategic decisions to acquire other platforms such as Whatsapp and Instagram and Oculus have
allowed it’s users to create larger communities by connecting various platform of communication
through multiple device types. This therefore has ensured better reach to the customers and
creation of bigger communities. However, a recent criticism s also been made on its decision to
be provide access to personal users information such as their purchasing preferences, interests
and choices with their party vendors they compromising user privacy. This adversely affected the
image of the organization and was away groom it's vision and mission to promote better user
experience and interests (Mariani et.al 2016).
Conclusion
From the above study it can be concluded that Facebook has achieved significant success and
growth b in the market by which it has been able to provide positive results for it's shareholders
as well as stakeholders. The engagement not only supports better organizational performance but
also maintained the position of the organization as a leader. it can also be added that the strategic
decisions of Facebook have enabled it to address and achieve the objectives, vision and mission
of the organization in a more or less overall manner. However, the company should have more
caution while deciding how b to use personal user information of the users.
It can further be recommended that the business should focus on taking consent from the users
while sharing their information, letting them decide the terms and conditions of sharing, the b
information that can be shared and prevent discontent I use and access of user data. Furthermore
it can also be recommended that the organization should increase it's research on better security
options to ensure better privacy options for the users (Plantin et.al. 2018).

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Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
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