Global Strategic Management: Strategies and Issues at Facebook

This report provides an in-depth analysis of Facebook's global strategic management, examining the business and corporate strategies employed by the company, with a focus on the approaches used by CEO Mark Zuckerberg to enhance business growth and profitability. It includes an analysis of both the external and internal environments using tools like Porter's Five Forces and SWOT analysis, highlighting opportunities and threats. The report also evaluates the strategic tools and techniques utilized by Facebook to improve organizational performance, discusses the strategic planning process designed by the CEO, and critically assesses contemporary strategic issues facing the company. The analysis is supported by relevant literature and corporate examples, culminating in recommendations for Facebook to sustain its market position. Desklib provides this document as part of a collection of study resources for students.

Global Strategic Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business and corporate strategies................................................................................................3
External and internal environment analysis.................................................................................4
Describing strategic tools that will help Facebook to enhance organizational performance.......5
Examining about how the CEO of FACEBOOK created, developed and designed strategic
planning for company..................................................................................................................6
Critically analysing and evaluating different contemporary strategic issues in strategy.............8
Presenting appropriate corporate examples for justification.......................................................9
Recommendations........................................................................................................................9
CONCLUSIONS............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Global strategic management refer to the process of managing different business
activities as for achieving and gaining global competitive opportunities. Global strategies are
designed as for enhancing business growth and profit earning capacity. Managing corporate
strategies are the process of assigning and allocating available resources of company for
achieving goals. Global strategic management in a company is defined as the process of
planning, coordinating and standardising set of actions by managing all related activities for
achieving global competitive advantage. Facebook, the public limited company established
online platform for connecting with various individuals by making profile with using internet.
Facebook is a social networking platform used worldwide. Facebook is online social platform
through which people connect with each other globally.
It’s increasing on a rapid growth due to more use of mobiles and application software’s.
Mr Mark Zuckerberg, the CEO of face book using the strategic management style in a way to
increase its profit worldwide. Strategic management style is used by companies to compete with
other companies in a different ways and styles. Corporate strategies are used by business to
increase its profit and sells in long run. Its aim to increase companies overall performance by
various strategies and plans for attaining organisational goals. This report will include the
corporate strategies which are followed by the CEO of Facebook to enhance the business. The
analysis of internal and external environment is done to know the ways that Facebook to deal
with different problems. Furthermore the tools and techniques that company is using to enhance
the business are discussed. Moreover the strategic planning is also discussed with the issues in
strategies of Facebook. The strategies are also supported with different literatures to justify and
recommendation are also given to make Facebook sustain in the market.
MAIN BODY
Business and corporate strategies
Global strategic management refer to the process of managing different business
activities as for achieving and gaining global competitive opportunities. Global strategies are
designed as for enhancing business growth and profit earning capacity. Manging corporate
strategies is the process of assigning and allocating available resources of company for achieving
goals. Global strategic management in a company is defined as the process of planning,

coordinating and standardizing set of actions by managing all related activities for achieving
global competitive advantage. Facebook, the public limited company established online platform
for connecting with various individuals by making profile with using internet.
Business strategy is a type of strategy a company uses to increase its sells and profits. It
is an action or plan business uses to achieve its organizational goals. A corporate strategy are
similar but also includes developed plans and strategies for long term goals and maximum
productivity.
Types of business and corporate strategies are:
 Cost strategies: These strategies are used to reduce the cost of the product as much as
possible. To increase the savings of the customer (Cardoni, 2020).
 Differentiation strategies: This type of strategies used to create differences in same
products with different prices.
 Focused Differentiation strategies: In this strategies company provides unique products
to a small group with high prices. Their main focus on the target customer only.
 Focused Low-Cost strategy: The main focus is on the small market with low cost to
earn profits.
Business and corporate strategies used by the CEO of Facebook
The CEO of facebook is using various types of strategies to improve its productivity
worldwide. The main two strategies used by Mr Mark Zuckerberg are cost and differentiation
strategies. The services provided by Facebook are low in cost. So that everyone has the
advantage of using the services freely with little low prices (Chofreh, 2021). Facebook is
providing its services worldwide with same amount of charges to be competitive in the present
world. Facebook is creating new products and services one after one so that the customer can
take advantage and can freely socialise their life on facebook. Another strategy used by facebook
is differentiation strategy in which it is providing same products and services that others are
selling but with some different and more advanced features to attract more customers. Customer
will buy those products and services which has more advanced features and have the same
amount. Due to this strategies used by face book the growth has been increasing on a very good
rate with customer satisfaction (Isabelle, 2020).
With this two strategies the facebook is able to create a good place in the market. The
size and the turnover have increased from past few years by using this kind of strategies. Now

facebook is dealing in more advanced and technological services with huge number of users
worldwide. Although other companies are also providing the same services worldwide but due to
its low cost of services and more different and advanced features the customer are more
attracted. The numbers of users are still increasing on rapid rate by its cost strategies and
differentiation strategy.
External and internal environment analysis
External environment
Porter five forces:
 With the help of porter forces facebook can find the number of competitors and their
position in the market.
 Analysing the market the company can find the capability of the new entrant into the
market.
 The next factor of porter is supplier power. The more suppliers are available at cheap cost
the more profit can be earned by the facebook
 Another force is buyer power because fewer buyers and more suppliers lead to reduce
company power. Facebook having large amount of customers have less competition and
have more control.
 The last force is a threat of substitutes Facebook has less amount of substitutes because of
its advanced products and services.
Internal environment
SWOT analysis
 By doing swot analysis facebook has good strengths with strong brand, advanced
technical knowledge etc.
 SWOT analysis brings out all the weaknesses a company is having. Facebook
weaknesses are lack of privacy of customers, and wrong or negative advertisement.
 Facebook is dealing with a lot of opportunities because of its huge target market or new
and creative services and products (Hajizadeh, 2019).
 Through SWOT analysis facebook get to know it threats like lack of privacy, a large
number of negative reviews etc.

Describing strategic tools that will help Facebook to enhance organizational performance
Porter five forces model helps organization to analyse why various industries are able to
sustain different levels of profitability. It consists of various elements that are briefly described
as follows:
Competition in industry: It might be said that for firm like Facebook this is moderate as
there are only few small companies that are delivering services that are similar to the Facebook.
Also, these few other firms are not able to attract the large number of customers through
advertising and hence there is only moderate force of these competitors in the market.
Furthermore, even though new firms enter into the industry there are very fewer chances that
these might be able to attract as many numbers of visitors that are currently present with
Facebook.
Potential of new entrants: It can be said here it is weak force as it is very difficult for
any other brand to develop as reliable and popular social media brand like that of Facebook.
Moreover, it is difficult for the company to build the loyalty among the users and its members
and advertisers (Facebook Inc. Five Forces Analysis (Porter’s Model) & Recommendations,
2022). Furthermore, based on these reasons these elements is weak as it would not allow new
and small firms.
Power of suppliers: It is moderate force of individual suppliers that are able to provide
the supplies to the manufacturers. Also, the current requirements of the quoted firm includes
network technology equipments, office supplies and related computing etc. Furthermore,
company would be able to improve the relationships through applying suitable strategies for the
business.
Power of customers: It can be said that power of customers on Facebook is very high as
the firm need to match the current demands of the customers so that it might be able to operate
successfully over the years (Stewart and Niero, 2018). Also, if the firm fails to meet the required
demand than there are chances that customers might switch to other options that are available in
the market either because of its low cost operation or high substitute availability.
Threat of substitute: This factor has strong force as it is much easy for the advertisers to
pay for all the substitute that is available in the market regarding the print, radio and advertising
so that the additional funds might be saved. Thus, this factor exerts the strong force on the
company and its working.

Examining about how the CEO of FACEBOOK created, developed and designed strategic
planning for company
Strategic planning is the process of setting action and approaches as for creating
appropriate strategies for achieving goals of company. Strategic planning is used for setting
priorities, strengthening operations and working together as for achieving common goals.
Companies strategies are designed for achieving mission and visions and gaining competitive
advantage. Strategic concept helps in achieving goals as for choosing and connecting various
users globally. CEO of Facebook has created, developed and designed the strategic planning are
as follows:
Defining goals of company
For designing strategy firstly defining goals of company is very important. The goals help
in defining about why strategy is designed, planned and adopted for the company. Determining
mission, vision using mapping tool. as Planning strategy for increasing users and consumer base
also targeting loyal consumers and retaining the consumers market is the ultimate goal of the
Facebook.
Familiar with audiences
After determining goals, knowing target audiences and target market is very
important. this helps in applying various methods and approaches which helps in retaining
audiences as mainly reviewing social media demographics and target market.
Determining strategy
After knowing audiences, determining strategic position of company is very important as
of creating and planning strategy. By using cost leadership strategy and growth approaches helps
in attaining competitive advantage. furthermore, determining strategy is appropriate or not is
important as for increasing revenues and profit earnings of company.
Scheduling/ Executing/ developing and implementing the strategy
CEO of Facebook schedules strategy as by arranging all necessary requirements of
implementing strategy in company. Here Facebook manager and various groups practice to
optimise and implement strategy for engaging large audiences in business (Lwin and et.al.,
2018). Also executing and implementing strategy by coordinating various actions and group of
people, analysing major contributors in developing and designing the strategy which further
helps in implementation and monitoring views.

Analysing and tracking results of strategy
This is the last step in creating and designing stagey as, tracking results after
implementing strategy in company. CEO of company reviews results of strategy. as by using
sprout helps in measuring and monitoring results also making reports of the outcomes of strategy
aims in targeting and improving approaches, for further use which results in gaining profit
earning capacity of company (Koc-Michalska and et.al., 2021). Tracking helps in determining
about the strategy that it is designed resulted in fruitful manner or not.
Critically analysing and evaluating different contemporary strategic issues in strategy.
There are various level of strategies that are adopted by firm according to the business
environment and the issues so that certain goals might be accomplished on time. Also, in the
business level strategy it might be said that the quoted firm analyse how sustainable competitive
advantage might be gained. Also, for this purpose the Facebook conducts certain external
analysis such as porter five forces, VRIO model and much more. Moreover, in the functional
level strategy it might be said that organization is concerned with identifying how business level
strategy might be supported within the functional areas such as marketing, HR, operations and
much more (Milanez and dos Santos, 2019). Lastly, corporate level strategy is majorly concern
with identifying major investment decisions that should be taken by the top management of the
company. Also, this type strategy works when business is operating in more than two areas and
thus they need to be assigned properly. Thus, all these strategies are managed and implemented
by the quoted firm in proper manner so that there are no future losses or problems in working.
Moreover, while formulating any task or activity within the workplace Facebook uses
Blue ocean strategy. Also, under this strategy the firm simultaneously adopts low costs and
differentiation at some point of time so that new market space and demand might be created.
Furthermore, to describe the universe this strategy divided into two categories such as red oceans
and blue oceans (Wanjiru and et.al., 2019). Also, red oceans consist of competing companies that
are in existence today so that industries boundaries might be accepted and defined. Furthermore,
through following this strategy the firm need to beat the current competition and exploit the
existing demand in the market so that more customers might be added in the list. Moreover, also
through using this strategy the quoted firm align the whole system of the business activities
either with the low cost or differentiation. On the other hand if the firm uses the blue ocean

strategy than it break value cost trade off and tries to make the competition irrelevant through
describing the need to find out the potential unexplored market space. Also, it consists of the
industries that are currently not into existence so that the quoted firm is able to create demand in
the market that is unexplored.
Thus, it can be said that Facebook is efficient in implement all the new task within the
working through analysing the different levels of strategy and its benefits so that losses might be
minimized and also the working efficiency is not impacted on vast level. Furthermore, if this
happens than there are chances that goodwill of the company might be impacted in long run.
Presenting appropriate corporate examples for justification
It is been known that Coco cola is well-known brand in the world and the success of the
brand is only because of the reason that it very consistent in its marketing operations as part of
the business strategy so that more people are able to attach with the brand (Nwoba, Boso and
Robson, 2021). Also, it can be said that the company has not changed it logo over the years so
that consumers are able to relate with the launch of new products with the brand and ready to buy
because of the brand name, image and loyalty towards it.
Another example is of the apple company that is focused on bringing changes in the lives
of the people through developing the innovative technologies in the market. Furthermore, the
strategy of the firm is to target the high class income people that are able to pay higher prices of
the products. Moreover, it is strategy of the firm to known as the premium luxury brand in the
market so that prices of the products might be kept higher without second thought.
Furthermore, it can be said that Colgate has adopted the Strategy of not only making the
brand success but also focused in educating the customers through telling about various benefits
of using the products. Thus, using this type of strategy had allowed them to develop trust among
the customers through providing the valuable information free of cost and also making people
lives easier (Rezaeian, Salajegheh and Sayadi, 2019). Also, in similar way for the Starbucks
company it can be said that it has adopted the strategy of building the strong social media
presence so that better customer engagement might be made and also this strategy is adopted by
the firm through spending huge amount of revenues on the marketing campaigns and creating
frequent promotional activities.

Recommendations.
 To enhance the business efficiency and to address the future competitive challenges it is
recommended to quoted firm that it should develop strategies according to the substitutes
available in the market so that all user needs are satisfied on one single platform only
(Dionisio and de Vargas, 2020). Thus, it is only possible when the company is involves
in extensive market research that will help in analysing the areas where there are chances
of growth and development for the firm.
 Moreover, it is suggested to Facebook that while undertaking any kind of external agency
help the firm need to identify strategic planning tools that might be applied in various
situations in the future along with that it need to develop a strategy so that website might
be designed in such way that more privacy and security might be provided to its users.
Also, such type of privacy would ensure that things are not complicated and there is
quick response security team that would solve all the queries of the customer
(Schaltegger, Hörisch and Loorbach, 2020). Thus, this strategy would help to retain more
number of customers on the website without moving to other similar options.
 Furthermore, the Facebook should nurture the relationship with its users through
developing the strategy open comments' column where all the users requirements or
suggestions might be put there and most common comments would be highlighted on the
top. Thus, this strategy would allow the firm to bring changes on website according to the
needs so that it is able to maintain competitive advantage in long run.
CONCLUSIONS
From the above report it can be concluded that business corporate strategies helps in
brining positive changes within the firm ans its activities. Also, the report had identified how
complex problems are solved in within firm through conducting various internal and external
analysis. Furthermore, strategic tools such as porter five forces had also been applied so that
organizational performance might be increased. Lastly, the report had critically analysed the
strategic issues through ocean blue strategy along with that had provided certain
recommendations to Facebook for the future.

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Online

Facebook Inc. Five Forces Analysis (Porter’s Model) & Recommendations . 2022. [Online].
Available through:<http://panmore.com/facebook-inc-five-forces-analysis-
recommendations-porters-model>.