Analyzing Facebook's Global Strategic Management & Contemporary Issues

This report examines Facebook's global strategic management, focusing on the business and corporate strategies employed by CEO Mark Zuckerberg. It delves into the cost leadership strategy, emphasizing testing ideas before implementation to foster a positive organizational culture. The analysis includes internal and external environment assessments using SWOT and PESTLE frameworks, addressing complex issues like privacy and competition. Strategic tools and techniques, such as Michael Porter's model and cost leadership, are explored to highlight their role in enhancing organizational performance. The report further evaluates Facebook's strategic planning and contemporary strategic issues at various levels, providing recommendations and examples to strengthen Facebook's strategic position in the global market. It emphasizes the importance of aligning company goals with strengths to maintain a leading position in the social networking landscape.

Global Strategic Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
A. Business and corporate strategies used by the CEO ..............................................................4
B) Undertaking external and internal environment analysis and analyse how the complex
problems at FACEBOOK were managed by the CEO using business framework.....................6
C) Describing the strategic tools/ techniques / models used by the CEO of FACEBOOK to
enhance the organisational performance .....................................................................................8
D) Examine how the CEO of FACEBOOK created, developed and designed strategic planning
for FACEBOOK .........................................................................................................................9
E) Critically analyse and evaluate the different contemporary issues in strategy at different
levels of strategy used by the CEO of FACEBOOK.................................................................10
Corporate Examples...................................................................................................................11
Recommendations......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Global strategic management is the concept which comprise form combining
globalisation with the business world . The global strategies for the business is being considered
as the strategies also the approaches which is being designed by the company to expand its
business internationally. This business report will specify about Facebook the social media
network which provides various services to world as it allows various users in order to connect
with others, sharing various pictures, videos also articles. This online social networking websites
enables various user create the social profiles and establish various relationship with various
individuals businesses and companies. The main benefit of being of staying connected with this
platform is that it creates real time social site which updates the latest news, and information
about the entire world. The social platform Facebook mainly consist of the timeline option in a,
status updates, likes, comments, shares, notifications, administrators. The main key purpose of
the company is to make entire world open-minded and connected with other this will aids on
creating better understanding between various groups. This report will provide detail about
examining the Facebook business and corporate strategies. Also, undertaking the external and
internal environment analysis. Further, describing the strategic tool being used by CEO of the
company. Also, providing detail regarding the strategic planning and evaluating different
contemporary strategic issues between different levels being used by the CEO of the Facebook
company. Lastly justifying by using appropriate examples and recommending suggestions for
establishing the strategic position of the company Facebook.
MAIN BODY
A. Business and corporate strategies used by the CEO
For the business to be successful it is very essential that proper strategies are being used
by the company in order to attain business objectives. In case company will not be having good
strategies then they will not be in position to earn good amount of profit. Hence, for this, it is the
responsibility of CEO that they must make the strategies in better manner so that it contributes in
the positive manner towards the company. the CEO of Facebook that is Mark Zuckerberg
undertakes the use of cost leadership generic strategy. This is a strategy which focuses on
minimizing the cost of the business and try to improve the profits (Prodius and et.al., 2020). In
case the cost will be high then this will be affecting the business operations of company. hence,

when the cost will be low then this will contribute in creating a better environment. Hence, this
will improve the working efficiency of the business to a great extent and positive working will be
created.
In addition to this there are many different strategies as well which are being used by
CEO of Facebook in order to improve the working of the company and creating positive
environment. This business strategy also involves testing each and every alternate or idea which
they think can be viable. The CEO does not apply the idea directly rather they first test the idea
and then in case it outlines positive result then it is being implemented. This is particularly
because of the reason that Zuckerberg feels that in case the idea will be tested first then this will
provide for better and effective outcome (Mark Zuckerberg Reveals the 5 Strategies That Helped
Facebook Grow at an Insane Rate, 2022). Also, when the idea will be tested in proper manner
then this will result in better and successful implementation of the strategies and attain business
objectives. Also, when the test will be conducted and then strategy will be implemented then this
will result in creating of positive culture. The reason behind this fact is that in case the strategy
will be tested first then it will not be failure. Hence, as a result of this strategy will become
successful and this will create a positive impact over working of employees as well.
Hence, it can be stated that the use of business and corporate strategy will create a
positive and growing impact over the working and business environment. This is because of the
reason that in case the working of the strategies will not take place in the intended manner then
this can create some negative impact over the working of the company and its success (Vormedal
and Skjærseth, 2020). Hence, the use of various business and corporate strategies will improve
the working condition and environment of the business in better and positive manner. Thus, it is
the responsibility of CEO of Facebook that they effectively make and implement the business
strategies in better and effective manner.
Global strategic management is the concept which comprise form combining
globalisation with the business world . The global strategies for the business is being considered
as the strategies also the approaches which is being designed by the company to expand its
business internationally. This business report will specify about Facebook the social media
network which provides various services to world as it allows various users in order to connect
with others, sharing various pictures, videos also articles. This online social networking websites
enables various user create the social profiles and establish various relationship with various

individuals businesses and companies. The main benefit of being of staying connected with this
platform is that it creates real time social site which updates the latest news, and information
about the entire world. The social platform Facebook mainly consist of the timeline option in a,
status updates, likes, comments, shares, notifications, administrators. The main key purpose of
the company is to make entire world open-minded and connected with other this will aids on
creating better understanding between various groups. This report will provide detail about
examining the Facebook business and corporate strategies. Also, undertaking the external and
internal environment analysis. Further, describing the strategic tool being used by CEO of the
company. Also, providing detail regarding the strategic planning and evaluating different
contemporary strategic issues between different levels being used by the CEO of the Facebook
company. Lastly justifying by using appropriate examples and recommending suggestions for
establishing the strategic position of the company Facebook.
B) Undertaking external and internal environment analysis and analyse how the complex
problems at FACEBOOK were managed by the CEO using business framework
The internal and external environment of the business Is mainly concerned with forces
which affect the Facebook business externally and internally and its operations. By using the
swot and pestle framework will help in analysing these two environment of the company
effectively.
Internal analysis by using SWOT
Strengths:
 The company is leading on the social
media platform.
 More than billions of the people are
actively using the Facebook platform
monthly.
 This platform understands the needs
and behaviour of the various user at a
time.
Weakness:
 Privacy issues affects the company.
 Sometimes by negative advertising on
the platform will reduce the reputation
of the company (Choi, 2021).
 This platform also lack the
customization of the website.
 This social platform lack some of
advanced features which are being used

 Providing extreme value added
services to the consumers.
by the other social platforms.
Opportunities:
 Various opportunities includes the
venturing into chattered territory also
with artificial intelligence.
 Further, enhancing advertising
opportunities by using mobile phones
also with other supporting tools in
order to capture more market area.
 Opening market place for Facebook by
diversifying resources
Threat
 Increasing the number of competitors
on the social media platform
 Uncertainty in the loyal customers.
 Data breaches emerges more
government intervention in the internet
privacy
External analysis By using PESTLE
Political factors: the government rules and regulations pertaining in the country will
affect the the company users and its operations as the trade regulations, safety, privacy issues,
barriers in some counties like china (Choi and Park, 2019). For the CEO of the company will
examine various countries regulations and limiting the data processing in order to secure and
give privacy concerns t the users .
Economic factors : These factors including the inflation in economy, interest rates,
policies followed by various business cycles will affect the company as for this CEO of company
will apply various strategies by examining the market by taking attention for boosting the
economy which helps in increasing stability of the company in economy.
Social factors :these factors which affect the compand includes demographics of users,
attitudes towards lifestyle education level and culture will affect the companies operations. For
this CEO of the company made more emphasizes on supporting social corporate responsibility
and providing high quality services of the various demographics.

Technological factors: highly competitive social media markets , security issues and 5 G
technology creates great challenge for the company. For this the company will continue
improving its the social media displaying strategy and advertising services for retaining its
customers on the platform.
legal factors : These include various patent laws, regulations for the online data will
affect the company networking markets. But by analysing the factors helps in expanding the
business operations into wider market reach.
Environmental factors : various issues relating to sustainability, waste disposal and
climatic change will affect the company for this the ceo has adopted approaches for small carbon
footprint and data centre emission for reducing the affect.
C) Describing the strategic tools/ techniques / models used by the CEO of FACEBOOK to
enhance the organisational performance
The strategic tool and technique being used by company CEO mainly enhances the
company operations in order to implement various projects for aligning the companies, mission
vision in order to prevent from various obstacles which will be faced by the company (Lwin and
et.al., 2018). By using Michael Porter model will helps in analysing the competitive position of
the company with the mix of various techniques. Using this model will indicate the company
approach towards growth and direction for achieving success. By using this approach helps in
aligning the companies goals with its strengths and establish the market position as a leading
social networking platform. For enhancing the organisational performance of the company. Cost
leadership competitive strategy is being used by the company as it specifies of minimising the
costing which will further reduce prices. Also, the company will provide various online services
related to social media in order to capture market globally. As for instance Facebook uses
technical computing tools in order to obtain the desired efficient level of website (Capriotti and
Losada-Díaz, 2018). This will enables the company In order to capture the market by reaching to
large audiences globally. Also by using this strategy will benefit in expanding the business,
achieving its financial objectives and creates the competitive advantage for the company.
with the porter five force analysis will helps identifying the strategic planning for the
company

Competitive rivalry for the company : competitive rivalry of the company is at medium level
or at moderate force. As there are many competitors of firm including Instagram, twitter, snap
chat, Facebook. The company is continuously innovating the consumers need in order to adapt
the trends for and potentially establishing the consumer base with the social media networks.
Due to commanding on the loyal consumer base for the company but the desktop usage has been
shifted to the mobile usage will be regarded as the threat for the company with various
competitors .
Bargaining power of Facebook users: the bargaining power of the company Facebook
selectively very high. As the users will shift to another website for advertising its ads also the
low cost at the other sites will shift the consumer on the other platform so for this the company
will ensure for providing good consumer experience for retaining its users.
Bargaining power of suppliers of company : The suppliers have weak bargaining power as it
has high overall suppliers available for the users (Hussain and et.al., 2021). So for this the
company must improve its supply chain and relationships with the suppliers for contributing
towards social responsibility the company.
Threat of substitutes: The threats for substitutes is very high for the company. As new and
innovative apps with new entrants will impact users for growth on Facebook. As various apps
services with low-cost and better services will create the thereat for shifting to other substitute.
Threats of new entrants : this thereat is low for the company as it is difficult for new entrants in
order to competitive the popular Facebook consisting with adequate amount of resources being
used for marketing, and attractive various users also the market share of the Facebook company
is very high.
Thus, by using is has helps in making various strategies for the company with the low costong,
strategy for aligning the mission and vision of the common and making strategy for increasing
the revenue of the firm.
D) Examine how the CEO of FACEBOOK created, developed and designed strategic planning
for FACEBOOK
The strategic planning for the company comprise various strategies. These are created, developed
and designed in order to achieve goals, missions and vision of the company (Komenda and et.al.,
2021). The strategic planning process mainly includes Formulation of strategy this is mainly
done by the upper level management of company. For setting up the plan the company will

firstly determining the implementation of the plans by considering various options. This will
helps company for generating positive results for implementing the planning process in the
company.
Strategy formulation : The formulation of the strategy done by assessing the goals of
the company will be the first step in order to design create and develop strategy for company.
The right goals will helps in making successful strategy which aims at attaining goals. The main
goals of company is to increase its brand awareness, better engagement of the community people
and increasing the sales (George, Walker and Monster, 2019). So by setting the right gas the
company further will assess the goals on the basis of increasing quality, which adds value to the
company, which provides smarter growth. Also, goals will be planned. Moreover, the plan will
be structured plan on the basis of monitoring tools before actually implementation for the
company.
Implementation of the strategy: During the implementation of the strategy the target
audience for the Facebook. For implementing marketing strategy will require estimation of target
audience. By getting familiar with the demographics of the Facebook company also using
various insights tool for identifying the target audience. The company uses sprout tool. As for
instance Facebook is implementing the marketing strategy for ads, this will helps in building
brand exposure which will guide the advertisement strategy by targetting users this will generally
help the company to grow users base and brand loyalty. For creating the brand awareness the
company will mainly focus on the cost effective and relevant content strategy in order to target
audiences and remove the irrelevant content which is being posted on the platform. The custom
based strategy which focuses on the audiences will help in recognizing the brand.
Evaluation of strategy: the company will evaluate strategy which is being implemented
in the company. For evaluating the strategy the company will review its external and internal
environment and measures the steps after implementing the strategy which helps in improving
the consumer base and establishes the CRM. For evaluating the strategy monitoring of daily
tasks of the strategy will be done by the company this will aids in scheduling the concoct and
posting regularly in appropriate manner.

E) Critically analyse and evaluate the different contemporary issues in strategy at different
levels of strategy used by the CEO of FACEBOOK
By applying the VIRO model in the company will help in identifying various issues
which are being faced by the company (Christodoulou and Langley, 2020).
Resource name Value Rare Imitable Organised
Information
technology
Yes Yes No Yes
Human resource Yes No No Yes
Brand image Yes yes No Yes
Strong global
presence
Yes No - Yes
Structure of
company
No No No No
The above table shows Facebook company various resources. As the information
technology of company is valuable and rare and it is not being imitable by any other company.
Also, the human resources of the company are valuable and helps in establishing the desired
goals which is being attained by the company by effectively allocating its resources and utilizing
in order to attain maximum, growth for Facebook (Nurunisa and Dewi, 2021). The main issues
being faced by the company is regarding with the structure of company is not valuable also it is
not rare and organized so the company must plan for developing the strategy in order to
establish proper structure for the company which must be rare, organized and valuable for
workforce. Furthermore, the human resources of the company are not rare, as other social media
platform also have skilled workforce which are competent for attaining goals. Further more
company have various competitors which provide similar services as that of Facebook social
media network. As the Instagram, snap chat also the whatsapp are the main competitors of the
company.

Corporate Examples
The growth of Facebook as a social networking company has been very influential. In
this organization the strategic management has been utilizing the cost leadership generic
competitive strategy which is helpful for involving the ways in which it can minimize the costs
of doing business. The minimization of the cost help the company in enabling it to reduce its
prices competitively.
Tesco as an organization has utilized many strategic options which included sustainably
competitive advantage. Cost leadership strategy is used which allowed the company to focus on
cost reduction for gaining competitive advantages. This company also uses the differentiation
strategy in which it also develops new products and or enters into new markets for increasing its
market share (Awadari and Kanwal, 2019). Focus/niche strategy is also a strategy which helps
the organization in the management of organization focuses on a particular segment or market
for influencing the growth.
The strategic management at Apple targets the broad industry which is characterized by
the broad differentiation. It can be said that the Apple focuses on managing the products through
the innovation which it brings through technological development. It can be said that the main
factor which is essential for the promotion of the company's success is the types of products that
has brought success. The focus of this organization is always to bring the best customer
experiences as the best products on earth.
At Amazon the generic corporate strategy is of the concentric diversification which
impacts the growth of the organizational operations (Alshmrani, 2021). The business strategy of
this organization also focuses on the cost leadership which the company has taken to the next
level. In this organization the range, price and convenience has been the source of enabling the
company competitive advantage.
Recommendations
Facebook which has been so successful in the social media world is not facing great
competition from some of its other competitors. For gaining the competitive advantage it needs
to utilize some strategic development in the organization. It can be said that the following certain
changes would allow the business to grow its competitive advantage (5 Ways to Dramatically
Improve Facebook Engagement, 2020). These changes would include regular improvement on
the website so that the users experiences are improved. It can be said that on the basis of other

competitors it needs to bring new technologies and trends which can help in introducing feed
filtering. One of the best ways in which Facebook will be able to gain competitive advantage
would be through the making strategic alliance with its competitors. This organization has faced
issues of competitive advantage due to the lack of innovation. One of the best ways in which the
organization will be able to enhance its strategic management is through the providing the users
opportunities on the platform. Due to the lack of opportunity which is present on Facebook
websites business has faced face lack of user interface. Partnering with social media influencers
will help Facebook to be the key towards the growth of the business.
CONCLUSION
From this report it can be concluded that global strategic management provides various
strategies for the business in order to establish and operate business globally. This report has
helped in understanding internal and internal environment analysis. Also by Describing the
strategic models used by the CEO of FACEBOOK has helped in enhancing the organizational
performance. also by examining the strategic planning for FACEBOOK has helped in making
plans for company which helps in growing for future. With the VIRO model has helped in
identifying the issues being faced by Facebook company.