LSC UoS BA: Strategic Analysis of Facebook's Global Management

This report provides a comprehensive analysis of Facebook's global strategic management, examining the corporate strategies employed by its CEO and their positive contributions to the organization. It delves into the external and internal environment analysis of Facebook, utilizing tools like PESTLE and SWOT to assess the business landscape. The report further explores the strategic tools, guided by theories from Michael Porter, used by the CEO to enhance organizational performance, and examines how strategic planning was created, developed, and designed for Facebook. It critically evaluates current strategic issues, applying logical thinking between different levels of strategy used by the CEO, and provides recommendations for improvement, supported by corporate examples and literature. This analysis offers valuable insights into Facebook's strategic approach and its impact on the company's global success.

Global strategic
management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
(A) Analyse the corporate strategies used by the CEO which provide positive contribution to
the organisation?.....................................................................................................................1
(B) External and internal environment analysis of the business............................................2
(C) Strategic tools that are used by the CEO of Facebook to enhance the organisational
performance which are guided by theories from Michael Porter...........................................4
(D) Examine how the CEO of Facebook created, developed and designed strategic planning
for FACEBOOK ....................................................................................................................5
(E) Critically evaluate the different current strategic issues in strategy, clearly logical thinking
between the different levels of strategy used by the CEO of Facebook ................................6
Use appropriate corporate examples and literature to justify.................................................7
RECOMMENDATION...................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Strategic management is the process for setting goals, procedure and objectives so that
the organisation become more competent to face the competition(Uhlig and Remané,2022).
Global strategic management enable an organisation to operate globally by designing the
strategies so as to increase sale across the world. Global strategy is important so that the business
can succeed in multiple location across the world. The strategies help the firm in generating the
sales by operating its business in the new market. It helps in taking advantage of emerging
markets which assist in getting more revenue fir the business. With the help of strategic
planning, the company can access the new resource which may enable the company reducing
cost and increase the profits. The strategic management help in fostering the global brand
awareness by increasing the consistency of the promotion. A business concern can also take the
benefit lower labour cost in other part of the world by making global strategies. The global
strategy that are created by the company helps in operating business activities and diversify the
risk whether it is operational risk or economical risk and increase operational efficiency.
In this report, Facebook has been taken into consideration which is a multinational
corporation which is based in Menlo park, California. It is website that is made by the Mark
Zuckerberg which allow the users for making profiles to connect with the friends, colleagues and
different people. They can also share pictures, music, video, article and opinion with other
people. The report will cover the business and corporate strategies which are adopted by an
organisation to enhance its performance(Khoa and et. al.,2022). Further, it will explain the
internal and external environment analysis of the business and the strategic tools that are guided
by the theories like Michael porter, blue ocean and so on to enhance the public presentation of an
organisation. In addition to this, it will discussed how the company develop or create the
strategic planning for Facebook. Apart from this, it will state the issues that are faced by an
organisation by making different level of strategies and also various models and theories in
context to the company.
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MAIN BODY
(A) Analyse the corporate strategies used by the CEO which provide positive contribution to the
organisation?
The corporate strategy is the process of planning where the organisations strive to create
value for the business by developing the unique benefit for selling and to increase the market
share. Therefore, this may help an entity in gaining the completive advantage and expansion of
the business. In context to the Facebook, it has adopted the corporate strategies that are adopted
by the Mark Zuckerberg are as under:
 Cost leadership: In the cost leadership, the main objective of the firm is to become the
low cost producer so that it can exploit the economies of scales. The sources of the
company are different according to structure of the industry which can help in getting the
cost advantage(Siddiquee, 2022). The company should be able to utilise the economies
scale and produce the products at lower cost so that the can provide the products at lower
prices to the customers. With reference to Facebook, the company uses technologies to
maximise the efficiency of its social networking website which may let the company to
create value for the company and its shareholder. When the firm achieve and sustain low
cost leadership then it can become the great performer in the industry.
 Differentiation: In this strategy, the company produces the products which are different
from it competitors in quality and price. Therefore, an organisation can increase the
market share by providing high quality and innovative products or services to the
customers. Thus, a firm provide unique products in the industry to get the attention of the
prospects which assist in increasing the market share and gain the competitive advantage.
In relation to the Facebook, it provides the public a unique application or websites which
are used by the every person across the world. Therefore, the strategy that have been
adopted by the Mark Zuckerberg is different from the other organisation which helped it
increasing its market share.
 Focus: In this strategy, a business concern focuses on the narrow target market segment
where the particular group or segment is selected by the company in an industry for
which the strategies are made to serve them that are exclusive for others firms. It includes
the two variants where one is cost focus which seek the cost advantage in the target
market and the second one is differentiation focus where the firm concentrate in
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providing different products to the customers. With reference to Facebook, it has
provided the website or app to the customers which are different from other companies.
(B) External and internal environment analysis of the business.
The external and internal analysis has been done below to analyse the problem which are dealt
by the CEO:
 PESTLE analysis of Facebook
Factors Analysis description
Political This factor refers to the involvement of the government where the tax polices,
trade restriction, political stability can affect business of a company. In
relation to the Facebook, the purpose of the company is to make positive link
with the political parties in order to protect its business from trade restriction.
Economical This factor refers to the economic growth of the the business which may be
affected by the exchange rates, interest rates, tax rates and so on(Maslen,
2022). With reference to Facebook, the company can be impacted
economically because it invest less in advertising and promotion activities
which has decline the revenue of the company.
Social This factor refers to perception of the people and regulate their behaviour
which have high impact on the business of a organisation. In context to
Facebook, it increases the preference for the high quality services for the
people so that it can grab the market opportunities.
Technological This factors refers to the innovation, research and development which can
impact the activities of the business. In relation to Facebook, it as expanded
its business by providing good technology such as Instagram but sometimes it
has to face the protection of the data.
Legal This factors refers to follow all requirements in order to protect their rights of
employees. In relation to Facebook, it has made its policies related to
protection of the data because it forces people to leave the platform when they
face such security issue.
Environmental This factor refers to the environmental impact cause by the changing in the
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climate, pollution and many things. With reference to Facebook, it is striving
to conserve energy and use renewable resources.
The complex problem is technology problem which should be managed effectively by the CEO
because the there is lack of security of data therefore, the protection must be provided to the user
so that the market can be stable.
 SWOT analysis of Facebook
Strength Weaknesses
 Excellent user experience: It has
provided the user good experience
because it is integrated with m,any
websites which help people in
connecting with others(Ahmadi and
Abadi, 2020).
 Integration with websites and
application: Facebook has integrated
itself with various websites which
increase the experience of the
customers.
 Lack of security: the private
information of the user are not safe due
to the hacker which can be misused for
malicious purpose.
Opportunities Threat
 Increase number of users: The people
are using smartphones also operate
Facebook which provide good
experience to them also provide users
such platform where ads can be
displayed to make them aware.
 Identity theft: This is a big threat
which can affect the business of the
Facebook because there is fear of
identity theft by the some other user.
The main issue is theft of identity by the unknown user which can be misused for malicious
purpose therefore, the CEO should bring such innovative strategy which can help in protecting
the data information with identity.
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(C) Strategic tools that are used by the CEO of Facebook to enhance the organisational
performance which are guided by theories from Michael Porter.
The company should various strategic tools to enhancer the performance of a business
concern for which porter's five forces model is used to explain which are described as under:
Porter's five forces model
This is tool which is used to identify the main source of competition in the industry and
identify then critical factor that may affect the profitability of the business. In context to
Facebook, the analysis has been done below:
 Competition in the industry: It refers to the competitor present in the industry with their
number of products and services. When there is less competitors ion the market so the
company have the opportunity to charge higher prices for its products and services and
gain profits. In context to Facebook, there are many competitor of the Facebook such as
twitter, snap chat and so on(Hafezi and et. al., 2020). They provide various different
features which Facebook does not provide. However, it has acquired the bothers player
such as what-sup and Instagram, which could be its highest competitors. But, now there is
medium competition in the industry because of less competitors.
 Potential of new entrant into the industry: The power of the company can be affected
by the new entrant in the market. With reference to Facebook, the technology that have
been provided by the Facebook is very expensive because to set up the website is very
costly. Apart from this, a new entrant can face the difficulty of marketing or promotion,
recognition of brand and attracting the user from the other unique websites like
Facebook. Therefore, there is low intensity of entering new entrant in the industry.
 Power of supplier: It refers to the cost of inputs of goods and services that the supplier
sell to the business concern. In relation to Facebook, it is a bulk buyer of the technologies
and the technologies provider are also limited such as IBM and Ericson. Therefore, the
choice of the supplier is limited so the cost for switching is expensive. Thus, there is
moderate intensity where the technological provider are limited.
 Power of buyer: It refers to the power of negotiation for lower prices and better deal by
the customers. In context to Facebook, there are high intensity of bargaining power of the
buyer because they have many choices to switch for other websites and apps. And also
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there is no switching cost. Therefore, it has to make different strategy to retain the
customers.
 Threat of substitute products: The substitute products provide more importunities to
the buyer on the basis of quality and prices. With reference to Facebook, there is high
intensity of substitute products because the social media platform provide various
products which are similar to the face book such as twitter, snap chat ans so on.
(D) Examine how the CEO of Facebook created, developed and designed strategic planning for
FACEBOOK
Strategic planning helps in developing the strategies for the business so that the goals for
the organisation can be achieved. The CEO of the Facebook can create the strategic plan in such
ways which are discussed as under:
 Develop a true vision: It states where the company want to be in future therefore,
Facebook has vision to provide opportunity to the people to stay connected with their
friends, colleagues and discover what is going in the world so that they can share with
each other. Therefore by developing vision, company can get to know which type of
services or products it has to provide its customers.
 Define competitive advantage: With reference to Facebook, the company always
concentrator on the strategy of providing different or unique products to get more
customers. The company also have many competitors such as twitter, Snapchat, Wechat,
LinkedIn and so on but it still have different technology which can attract or retain the
customers.
 Define target: the target must be clear because it helps the company in increasing the
market to the particular segment(Fan and et. al., 2021). In relation to the Facebook, it
target market is all age group people whereby it can provide technology which influence
the interest of the customers.
 Focus on growth: In relation to Facebook, it strives for growing the market share of its
company which help in bringing new technologies to the people. All this may enhance
the experience of the customers and provide new feature to their websites or application.
 Decision making: With reference to Facebook, it makes various strategies to make its
business successful and some times it has to change strategies according to the changing
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need of the people. Therefore, strategy formation help the company in effective decision
making related to increase its market share and revenue.
 Think long term: In context to Facebook, an organisation should make long term
strategy which can help in achieving the long term objective of an organisation. It also
improve the conversation between the employees and employers.
(E) Critically evaluate the different c in strategy, clearly logical thinking between the different
levels of strategy used by the CEO
There are may current issues which are faced by the Facebook are depicted as under:
 Cambridge analytical scandal: This is a big issue which is recently faced by the
company because the personal data of the millions of the people of the Facebook's profile
was used by the company without their consent for political advertising purpose.
Therefore, it lack of security of the personal data area faced by the user of the Facebook.
 Fake news and hate speeches: The user of the Facebook share the fake news and hate
speeches which may provoke the malicious activities among the people that is very
difficult to detect.
 Artificial intelligence: Facebook has brought the technology to detect the malicious
content but the massive change in ethnology is very difficult for the company because
there are multiple videos, images and text in different languages(Gaikwad and Rao,
2021). Therefore, this is a big challenge for the company to make huge change in the
technology.
Therefore, the Facebook use the differentiation strategy to retain its customers and generating
revenue. Thus, the CEO uses unique strategy by staying focus on its mission and eliminate all
small decision. The company uses different level of strategies with rthe help of blue ocean
strategy which are delineated as under:
Blue ocean strategy is strategy which follow differentiation and low cost strategy in order
to create demand in new market. it creates the uncontested Marketa space whereby their is no
competition(Gheibb and et. al., 2018.). Therefore, the company use this strategy in order to gain
the competitive advantage and sustain itself in the industry. This is used for the innovative
purpose when the company want to expand its business in the new market then this strategy is
used to make brand recognition.
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Use appropriate corporate examples and literature to justify.
Facebook use differentiation strategy in order to make brand recognition and gain the
competitive advantage(Barthel-Bouchier, 2018). Therefore, the blue ocean strategy is considered
for differentiation or low cost purpose by the company because there are no competitors in this
market and provide cost advantages to the leader and also set the price of the products
accordingly. The business can take the advantage of blue ocean strategies because it provides
endless opportunities to the leader(Aleinikov and Smarsh, 2020). Therefore, Facebook provide
different features in their products which provide assistance in retaining the customers and
enhance their experience as well.
In comparison, the amazon has been taken into consideration which has adopted the
functional business strategy in order to gain profit margin and economies of scale. This only
focus on the value added portfolio of the activities which h are important for the company. This
strategy help in achieving the corporate and business unit objective by maximising resource
productivity(Newburry, Deephouse, and Gardberg, 2019). This strategy is concerned with the
development and nurturing the competence to provide a company or business unit with a
competitive advantage. These functional strategies help in coordination and consistency with the
long term objective and strategy and are related to the overall corporate strategy. These
functional strategies followed by Amazon so that it can analyse the external environment in
order to increase the profit margin.
RECOMMENDATION
From the above discussion, it has been recommended that the company must know the
competition in the market and about its competitors as well in order to gain the competitive
advantage. The company should also know the preference and opinion of the customers
regarding the products or services so that a business concern can be able to provide the products
according to the need of the customers. Therefore the company must have information about the
strategies of other companies so that it can can adopt differentiation strategy to overcome the
competition. The differentiation strategy provide assistance to the company in terms of different
products and low cost strategy which enable it to influence the customers towards its products.
The company should set up its target market which enable it to provide products to the particular
market segment which help in enhancing the experience of the prospects. The company can
make its brand recognition by satisfying the needs of the customers therefore, it should analyse
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the market and requirements of the people so that it can provide products according to the needs.
The company should bring innovative products in the new market by keeping in view of the
existing customers.
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REFERENCES
Books and Journals
Newburry, W., Deephouse, D.L. and Gardberg, N.A., 2019. Global aspects of reputation and
strategic management. Emerald Publishing Limited.
Aleinikov, A.G. and Smarsh, D.A., 2020. Viva Di Bartini: Eleven New Laws of Conservation
Expanding Physics for Global Strategic Management and Strategic
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Barthel-Bouchier, D., 2018. “It’sa Mad Mad Mad Mad (Men) World”: National and Corporate
Strategies in the Global Audiovisual Market. In Art and the Challenge of Markets Volume
1 (pp. 305-324). Palgrave Macmillan, Cham.
Gheibb and et. al., 2018. Controlling air pollution in a city: A perspective from SOAR‐PESTLE
analysis. Integrated environmental assessment and management, 14(4), pp.480-488.
Gaikwad, S.R. and Rao, T.S., 2021. Facebook as an Effective Social Media Communication:
SWOT Analysis by Heterogeneous Populace. NOLEGEIN-Journal of Advertising and
Brand Management, 4(1).
Fan and et. al., 2020. Forecasting electricity consumption using a novel hybrid
model. Sustainable Cities and Society, 61, p.102320.
Hafezi and et. al., 2020. Iran in the emerging global natural gas market: A scenario-based
competitive analysis and policy assessment. Resources Policy, 68, p.101790.
Ahmadi, M. and Abadi, M.Q.H., 2020. A review of using object-orientation properties of C++
for designing expert system in strategic planning. Computer Science Review, 37,
p.100282.
Maslen, S., 2022. Affective forces of connection and disconnection on Facebook: a study of
Australian parents beyond toddlerhood. Information, Communication & Society, pp.1-17.
Siddiquee, N.A., 2022. Breaking Down Silos and Fostering Inter-Agency Collaboration:
Malaysia’s National Blue Ocean Strategy in Perspective. In Institutional Reforms,
Governance, and Services Delivery in the Global South (pp. 223-240). Palgrave
Macmillan, Cham.
Khoa and et. al.,2022. A Study on Buying Attitude on Facebook in the Digital Transformation
Era: A Machine Learning Application. In Data Engineering for Smart Systems (pp. 497-
510). Springer, Singapore.
Uhlig, M. and Remané, G., 2022. A Systematic Literature Review on Digital Business Strategy.
Valmohammadi, C. and Shahrashoob, V., 2022. Determinants of the human capital department
development programs toward achieving functional strategic objectives: a fuzzy hybrid
approach. Industrial and Commercial Training.
Bishayee and et. al.,2022. Strategic management of nitrate pollution from contaminated water
using viable adsorbents: An economic assessment-based review with possible policy
suggestions. Journal of environmental management, 303, p.114081.
Marabaeva and et. al.,2022. Features of Strategic Management of Cable Industry Sustainable
Development. In Сooperation and Sustainable Development (pp. 1171-1178). Springer,
Cham.
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