Analyzing Facebook's Global Strategy: A Detailed Management Report

This report provides a comprehensive analysis of Facebook's global strategic management, examining key aspects of its business environment and strategic tools. It begins with an overview of Facebook's corporate and business strategies, including Porter's generic strategies and the BCG Matrix, to assess its competitive positioning and product portfolio. The report then delves into internal and external environmental factors using PESTLE and VRIO frameworks, analyzing how Facebook manages complex challenges. Strategic tools like the Gap analysis model, McKinsey's 7S model, and Porter's five forces model are discussed to enhance organizational performance. The report also examines strategic planning concepts and models, such as product development, and evaluates contemporary strategic issues, offering suggestions and recommendations for Facebook's continued growth and success in the international business environment.

Global strategic
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK A...........................................................................................................................................4
1A brief analysis of corporate and business about the positive contribution to the company4
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO........................................................................5
TASK C...........................................................................................................................................7
1Describe the strategic tools to enhance the overall organisational performance..................7
TASK D...........................................................................................................................................8
1Examine the concept and model to develop and design the strategic planning...................8
Product development- In this stage, a company introduce a fresh product at the marketplace.
This helps in bringing innovation in a business and helps in attracting large number of
customers..............................................................................................................................10
TASK E..........................................................................................................................................10
1Evaluate the various contemporary strategic issues in strategy by using concepts and models
..............................................................................................................................................10
2Suggestions and recommendations.....................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The international business is considered as main type of business in which it is important
for an entrepreneur to focus on key operations. Also it is important for the company to focus on
management and leadership in order to develop effective techniques to maintain operations of
international business (Bodrunov, and Plotnikov, 2019). There are various companies in the
international marketplace which focus on development of effective strategy In order to gain
market growth and expansion. In this project example of Facebook company is taken into
consideration which is a multi national social media company. Facebook company focuses on
key considerations which are essential for organisational growth and expansion in international
business environment in the representation of CEO Mark Zuckerberg. Facebook company was
founded in the year 2004 and is based in United States of America. In this report analysis of
international business environment is performed in a precise manner. This project includes key
strategic planning tools used by a company in order to maintain and develop key competitive
aspects to gain competency edge. In this project various models and theories to develop
organisational strategy are also covered.

TASK A
1A brief analysis of corporate and business about the positive contribution to the company
Business strategy
The business strategy can be described as a major planning framework which is
important for growth and development. It is essential for a business to focus on development of
key aspects related to decision making on the basis of business strategy. It is also essential for a
business entity like Facebook to focus on development of focused business strategy in order to
lead marketplace.
Porter's generic strategies
Porter's generic strategies is combination of various elements that are responsible for
overall growth. It is also an important role of a business to focus on key terms and
implementation of porter's generic strategies to lead the competition (Buckley, 2016). It is also
one of the key role of a business to focus on development of strategy in order to lead
marketplace. The application of Porter's generic growth strategies for Facebook company is
mentioned below:
 Cost leadership- The cost leadership is considered as key function of company to focus
on key operations. Cost leadership is a major function of Facebook which helps in overall
development of a business in order to develop key focus on effective products and their
affordable rates.
 Differentiation- The Differentiation is a major approach and focused approach which
makes a business distinct at the marketplace. Also differentiation is considered as a major
approach which is helpful in increasing growth of a business by performing key
operations of a business.
 Focus- Main focus of a business should be on development of a strategy and it is crucial
for a business to focus on strategic actions as well. Facebook company focuses on its
social media operations with software engineering to gain market growth.

The BCG Matrix Model
The BCG matrix is a key model which helps a business entity to gain market growth and
competitive advantage. It is essential role of a company to focus on analysing application and
performing implementation of BCG matrix in order to gain market growth. This is also one of
the key role of Facebook to focus on the products categories which are mentioned below:
 Star products- The star products are key products of a company in order to earn great
profitability at the marketplace. Star products are those which have high expansion in
higher marketplace (D’Cruz, 2018). It is also one of the key role of a business to focus on
star products for gaining competitive edge. Instagram is star product of Facebook which
has a high market share with over 750 users and still growing at a rapid speed.
 Question Mark- Question mark products are considered as major type of products which
are ineffective for a company. These products are having low growth share in
marketplace which puts a question mark on effectiveness of operations of Facebook.
 Cash cows- In the functioning of a business entity, it is essential to focus on cash cow
products. It is major role of a business to put emphasis on Cash cow products in order to
gain competitive advantage. The cash cows are considered as having large market share
like Whatsapp belongs to this category.
 Dogs- The Dog products are products having category of low market growth and low
market share. Messenger of Facebook is considered as dog product which are having a
low market share and growth.
Vertical and Horizontal Integration model
The vertical integration model is considered as a major approach in the development of a
business. All major companies in the international and national marketplace focus on
development of this model for development of key functions and tasks (Giannopoulos, 2017).
The Facebook company can easily develop effective operations with assistance of this model to
gain growth at the marketplace. It is also essential for the business entity to focus on major
operations related to application of vertical and horizontal model to lead the marketplace.
Forward integration is considered as expansion by accessing the control of different major
functions and tasks. Facebook takes help of these models to develop strategic planning at the
marketplace.
TASK B

Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO
PESTLE analysis
The PESTLE analysis is a major framework which helps a company to develop external
and macro environment based analysis in order to lead the marketplace. PESTLE analysis of
Facebook company is mentioned below:
 Political factors- Political factors are considered as key factors which are directly related
to rules and regulations developed by government of a country. Facebook company
should develop and deliver main focus by following corporate laws of government.
 Economic factors- The economic factors are considered as major factors which are
related to focus on GDP and national income. This is major role of a business entity like
Facebook to follow monetary policy developed by government.
 Social factors- In the working of a company, it is essential role of a business to focus on
social factors whicha re related to society and its culture. There are various companies at
the marketplace which focus on social factors to develop internal environment.
 Technology factors- In the era of stiff competition between different companies, it is
essential role of business to follow IT practices for performing key operations in an
accurate manner (Henry, 2021). All major companies in the international and national
marketplace focus on information and technology to lead marketplace.
 Legal factors- It is very much necessary for facebook to develop an approach in order to
follow employment legislation based practices. This helps in development of a legal and
ethical approach in business operations and functions.
 Environmental factors- The environmental factors are considered as major factors
developed according to sustainable operations in order to protect environment. It is
necessary for Facebook to follow environmental policy developed by government in
order to lead the marketplace.

VRIO frame work
The VRIO framework is a key approach which helps in optimum utilisation of resources.
Application of VRIO model helps Facebook to perform all operations in a legal and effective
manner for maximum reach to customers. The application of VRIO framework is mentioned
below:
 Valuable- The valuable resources are considered as key approach in business operations
which are most valuable to the organisation. It is also one of the main role of a company
to focus on development of valuable resources in order to gain competency edge. Human
resources and infrastructure of Facebook are key valuable resources.
 Rareness- Resources which are scarce to company and which are rare in the
contemporary business environment are scarce for a company. Rareness to resources
brings major issues and challenges for a company. Also rare resources should be utilised
by a business entity (Hill, 2017). All major companies in the international and national
marketplace focus on rareness of resources to develop an effective approach.
 Imitable- The imitable resources are considered as key type of resources which are
related to innovation based patents and copyrights. It is also one of the major role of a
company to focus on imitable resources and mark the copy right and patent.
 Organisation- The organisational functions and combination are key strengths of a
business in order to develop systematic operations. It is one of the major role of a
company to focus on organisational aspects and dimensions to formulate key
management practices.
TASK C
1Describe the strategic tools to enhance the overall organisational performance
Gap analysis model
The Gap analysis model is considered as key theory which focuses on current
performance with desired results (Hitt, Ireland, and Hoskisson, 2019). This is major technique
used by a company to develop effective strategies, capabilities, technologies, skills which will
help in company growth. The application of McKinsey's 7S model and Ansoff matrix for
Facebook company is mentioned below:
McKinsey's 7S model

The McKinsey 7s model and its application for Facebook company is mentioned below:
 Strategy- The formulation of strategic planinng is a major tool in McKenzie’s 7s model
to focus on key parameters of business growth. Strategic management of Facebook is
having professional employees who are focused to achieve business development based
goals and objectives to lead the marketplace.
 Structure- Organisational structure of a business should be developed in a precise
manner in order to facilitate decision making. Facebook adopts functional organisational
structure to perform all major functions with responsibility to department.
 Systems: Whole process which is followed by an organisation is included in systems.
The organisation's key responsibility to focus and put emphasis on systematic
development.
 Skills- Skills are considered as key capabilities of Facebook company which are
important for overall growth.
 Style- The management or leadership style used by an organisation to perform its
functions comes under this category (Koseoglu, 2016). It is key role of a company to
focus on style of management in order to develop systematic and key organisational
goals.
Porter's five forces model
The Porter's five forces model is a major and key strategic framework which is important
for Facebook to gain marketplace growth. Elements of Porter's five forces are explained below:
 Threat of new entrants- In this element a company evaluates effect of new entrants
which are new companies in order to gain growth at the marketplace. It is also one of the
key role of Facebook to focus on newly emerged social media based companies to
develop strategy.
 Bargaining power of suppliers- Bargaining power of suppliers is considered as a major
approach in which a business calculates how buyers influence a business (Tonelli, and
Cristoni, 2018). In the case of Facebook company, bargaining power of suppliers is low
as it is the topmost application.
 Bargaining power of buyers- In the functioning of a business entity, bargaining power
of buyers is considered as key approach which is helpful in increasing business strength.
The risk of buyers and their bargaining power is low due to dominant nature of Facebook.

 Competitive rivalry- The companies which are giving tough competition to Facebook
are considered as competitive rivalry which are Snapchat and LinkedIn. These companies
are considered as major challenge for Facebook.
 Threat of substitutes- It is very much essential for a business entity to focus on threat of
substitutes and their handling (Lasserre, 2017). Snapchat is a major substitute product for
Facebook company which can be also a threat for it
TASK D
1Examine the concept and model to develop and design the strategic planning
SWOT Analysis
Strengths Weaknesses
 The Human resource department of a
business which helps it to manage
diversity of employees.
 Marketing management and ICT are
also two major strengths of company.
 Value development is absent in
employees of Facebook
 The another weakness of Facebook is
its strategic planning which is
sometimes ineffective.
Opportunities Threats
 Growth and expansion in the field of
social media operations is major
opportunity for Facebook.
 Key growth rate and its development is
also a major opportunity for Facebook
company.
 Rising cyber security risks are major
threats for Facebook company.
 Also competitors are one of the crucial
threats for the business of Facebook.
Ansoff matrix
This is one of the major tools used by a company to focus on development of competitive
advantage. The Facebook company performs this strategy in a way which is mentioned below:

Illustration 1: Strategic Growth with the Ansoff Matrix, 2022
 Product development- In this stage, a company introduce a fresh product at the
marketplace. This helps in bringing innovation in a business and helps in attracting large
number of customers.
 Market development- The development of market is essential for a business entity with
the help and support of key marketing management operations. It is moral responsibility
of Facebook to focus on market development for analysing key growth.
 Market penetration- In this approach, a business focuses on dominating the current
marketplace with help of strategic actions (Li, and Reuer, 2022). All major companies in
the international marketplace like Facebook focused on market penetration in order to
develop a major approach at the marketplace.

Performance indicator and key risk indicators
The measurement of actual performance of employees is a major tool which is used by a
company to evluate performance and development of functions. Risk is also one of the major
type of performance indicator that includes key role of risk in impacting on overall performance
of the business.
KPI- The key performance indicators are considered as major tools which helps in development
of overall performance of individuals (Mavi, Gheibdoust, and Mavi, 2019). The KPI approach is
considered as key approach which is beneficial in increasing output of an organisation by
measuring main employee performance.
Benchmarking- Benchmarking is considered as major type of norms and standards which are to
be utilised by a business entity. It is major role and focus of a business to set benchmarking
standards that are important for overall growth.
TASK E
1Evaluate the various contemporary strategic issues in strategy by using concepts and models
Resource based view strategy
The resource based view of a company is focused on development of optimum utilisation
of key resources. There are tangible and intangible resources of a company are also important to
be evaluated with major and effective strategies in order to develop their usage. Facebook
company focus on this view of strategy in order to formulate key practices,

Illustration 2: Resource Based View, 2012
Corporate level strategies
The different types of corporate strategies impact on operations of Facebook in order to
develop effective operations.
 Joint venture- Joint venture is related to formation and development of business
operations by merging of two or more companies (Minà, and Dagnino, 2016). In this
approach there is a minimisation of risk associated with a business.
 Strategic alliance- This is result of an agreement between two or more companies in
which mutual profit for company is developed. It is essential role of a business to focus
on development of strategic alliance.
 Acquisition- It is essential for a business entity to focus on acquisition in which an
existing company is aquired by a business (Nagel, and Aviles, 2021). The Facebook
company has aqcuired Instagram in an effective manner which is providing increased
profitability and revenue.

Process and Product innovation Model
 Product- This is the final output produced by a company to meet wants and
demand of different customers. It is essential for a business entity to develop
products with quality and concept of total quality management to increase sales
figures.
 Process- Process is combination of whole steps which are followed by Facebook
to deliver valuable products. Facebook company follow the process developed
together by top level and strategic management to develop precise approach.
 Position- The position is considered as key approach which is helpful for a
company in order to develop a key designation (Newburry, Deephouse, and
Gardberg, 2019). It is essential for a business to focus on finding and taking care
of effective position in the organisation.
 Paradigm- The paradigm is considered as mental methods which supports a
comapny to identifying the way frame what it does.
2Suggestions and recommendations
It is essential role of a company to focus on development of focused and well defined
approach in order to gain competitive edge. It is recommended for Facebook to focus on
implementation of key models and theories in order to develop a major management approach.
The leadership style and implementation should be also selected by a business in order to gain
marketplace growth in a set period of time (Rascão, 2020). Facebook company should also take
assistance of digital technology based tools and techniques in order to gain a competency age.
The company must hire IT professionals to perform all major operations in an accurate and
quick manner.

CONCLUSION
From the above discussion it can be concluded that management of a business depends on
the strategic planning and frameworks which are important for business growth. This project
concludes role played by planning frameworks in order to perform key operations of a company
in a well defined manner. This report concludes that it is the major role of a business entity to
focus on resource based strategy in order to develop key planning framework. There are various
companies in the international marketplace which takes help of professional business
development experts in order to perform organisational task in an effective manner. This project
also concludes application of BCG matrix, Porter's generic growth strategy, PESTLE which
helps a company to focus on business development.

REFERENCES
Books and Journals
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