LSC UoS BA Business: Facebook's Strategic Issues & Analysis

This essay provides a comprehensive analysis of Facebook's strategic management, examining the business and corporate strategies employed by its CEO, focusing on their positive contributions to the organization. It includes an external and internal environment analysis, utilizing strategic tools and techniques to enhance company performance. The essay explores how the CEO created, developed, and designed strategic planning, considering different levels of strategy and resource-based models. Furthermore, it addresses contemporary strategic issues and offers suggestions for Facebook to sustain its market position. This document is available on Desklib, a platform offering past papers and solved assignments for students.

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY ................................................................................................................................3
A) Examining the business and corporate strategies used by the CEO which has brought
positive contribution to the organization.....................................................................................3
B)External and internal environment analysis.............................................................................4
C) Describing the strategic tools/ techniques / models used by the CEO of FACEBOOK for
enhancing the companies performance........................................................................................6
D) Examining how the CEO of FACEBOOK created, developed and designed strategic
planning of company..................................................................................................................7
E) Different levels of strategy .....................................................................................................8
Using appropriate corporate examples and literature to justification..........................................9
Suggestions / recommendations for FACEBOOK to sustain its position.................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Global strategy is being defined as guiding the organisation procedures across the global
world. The strategy is being designed by the company for expanding the business into the
international market. Global strategy is being designed for analysing various competitors if the
company, also the consumers of the company being situated globally the production of the
products being generated globally of the company into the global markets for generating profits
of the business. Facebook company, operating as the social networking site having billions of
users al around the world. The social network enables various user to connect to with world, with
the family friends through various devices being used by the users in the dynamic world.
Facebook enables various people to share, connect and discover all feeds. Developing the global
strategy helps in increasing the sales and generates better profit earning capacity for the business.
Accessing Facebook sites by the users is free of charge and it generates most of the money from
its advertisement by posting various content of users and posting messages, also location, status,
worldwide news. Facebook is privately owned, trading its shares publicly. By generating
competitive global strategy aids in creating the brand awareness globally and in international
markets it also lowers the labour costs for the company. This report will provide details of
examining various corporates strategies used by the company CEO which brings positive
contribution in business. Further, undertaking internal and external analysis of business. Also,
examining the strategic planning creation, development and designing done by CEO of
company. It also provides details of analysing the companies contemporary strategic issues in
strategy and different levels of strategy used by the Facebook using resource based model and
innovating and technical strategies of business.
MAIN BODY
A) Examining the business and corporate strategies used by the CEO which has brought positive
contribution to the organization
Corporates strategies are those which helps in achieving the business goals by setting
goals, plan for increasing sales of the companies services being given to various users all
around the world (Armstrong, Kulczynski and Brennan, 2021). Various strategies is being used
by the company which positively contributing or achieving the business growth which result in
increase the profits margins and revenues with better performance at the optimum level of the
company.

Low cost marketing strategy : The CEO of Facebook company is using low cost
marketing strategy as it emphasize on marketing various business at low cost . As this induces
the small and medium enterprises to choose the marketing medium which choose low cost for
marketing their business products and services as on the social media sites. As adopting the less
cost marketing strategy contributes the business for attracting large number of users for
promoting their business which helps in gaining more profits and loyal consumers for the
company.
New product development strategy: By developing new products is introduced by the
CEO of Facebook in the company as it emphasize on developing and diversifying its products
ranges into not only posting content and messages on the social network site. As currently the
company has introduced new portfolio as of posting news, feeds, videos, photos, searching pages
(Introduction to Porter’s Generic Strategies, 2022). By adopting this strategy by the company
helps in establishing competitive advantage for Facebook and it constitutes positively in
enhancing companies position into market and generates better performance for growing
business and profits.
Focusing on the user experience: Facebook company CEO has adopted the strategy for
focusing on the user experience and this helps in generating growth for business. The company
provide optimum balance between the standardizations and customizing the websites (Binford
and et.al., 2021). By introducing new customization into the website which has helped the
company for establishing the brand image ad popularity among millions of users.
Adopting ways of monetization: CEO of Facebook has adopted the strategy for
continuously monetizing (Faroukhi and et.al ., 2021). The company is utilizing various ways for
regularly monetizing the revenues and maximizing it for continuously adopting different new
strategies for retaining the market position and positively establishing the brand image in the
mind of various user.
B)External and internal environment analysis
External environment means there are various external factors that affects the
organization functions. These factors are not in control of business but company must find ways
to overcome from these outside factors. These factors are as under-

Political- Political factor plays a important role in the success of business. Political
stability of other countries allows Facebook Inc. to operate it's social media business and also
government supports to expand it's business.
Economic- This factor helps Facebook Inc. in the growth of business as economic
stability is increasing in other countries and it leads to better telecommunication services.
Moreover, increasing income of people in developed countries allows users to buy application
and access Facebook and it expands business of company.
Social- With regard to social factors it also impacts as customer are looking for high
quality services. So Facebook must focus on to improve it's service quality to satisfy the
customer and to retain their customer.
Technological- This factor also impacts the Facebook Inc. as there are other social media
companies that are attracting customer. Company added features as per consumer needs like live
streaming and others.
Legal- There are certain laws that restricts the business. Further, there are certain
regulations in the collection of online data that affects the business.
Environment- In this factor company may have to be sustainable and satisfies the
regulations that are set for the environment like waste disposable.
Internal Environment means the factors that impacts directly on the functioning of
business internally within the organisation. They are as under-
Strengths- Number of users of Facebook are increasing and a largest network across
the globe because of technology innovation it leads to success.
Weakness- Company facing issues related to privacy security since last many years and
it results in the loss of information of some clients.
Opportunities- Technological innovation helps the company in growth of their business
as customer are using more social media platforms.
Threats- There are many other social media sites that are attracting customers so there is
a high competition in the industry is a threat to a company.
Business framework means the strategies formed by the organisation that guides the
business to work accordingly. This Framework is used by Facebook CEO to find out the
problems that business is facing and then try to come out with the solutions.

Privacy related issue- Facebook CEO made changes in the privacy related issue as
users were complaining regarding their loss of data. Company made changes in their privacy
protection and included new restrictions in their policies.
Competitive Pressure- The CEO of Facebook handled the competitive pressure by
adding new features in the application like added story, video calls feature similar to Instagram
and other competitors.
Business Framework of Facebook company includes issues related to users privacy
protection and the intense competition organization is facing. Further, the possible solutions
come out from that issues like company offer best services to the customer(Goni and et.al.,
2021). In addition to that company included all those features that other social media platforms
are offering to attract more customers.
C) Describing the strategic tools/ techniques / models used by the CEO of FACEBOOK for
enhancing the companies performance
Various strategies, tools and models is used by companies CEO for enhancing companies
performance. The porter generic model is used by the company for enhancing its position and
retaining the market share of the company as operating in the dynamic environment. By using
this model has helped the company for growing business and establishing competitive advantage
(Lin and Hsieh, 2021). Porter generic model emphasize on the four strategies it includes cost
leadership strategy, differentiation, cost focus and differentiation focus. From all the four
strategies company is using cost leadership strategy.
Cost leadership strategy is being used by the company for minimising cost as by using
the strategy of offering marketing options to various users for their businesses. As for this
company uses computing technical instruments for maximizing its efficiency as for establishing
top social networking websites for the users. The online nature of business has given easy access
to users for reaching the websites, this helps company for adopting this strategy as it gives
satisfying experience as establishing competitive position.
Various techniques is used by company for enhancing its business performance as, the company
is: Expanding its graphical appeal: The company is using these techniques as for those users
who are not interested in reading the long content being posted on the websites. By suing mode
graphical appearance on the social networking site will help the company in retaining loyal users
for using Facebook site (Photiadis and Papa, 2022). By using this technique posting high quality

content, which is authentic and errors free helps in expanding the graphical appeal to all the
users and engaging more and more users by providing better user experience from the company.
Focusing on brand by being consistent : The company is emphasizing on the brand
image by posting exciting stuff, as this helps in complementing the brand by engaging more and
more consumers. By engaging users as by posting interesting content on the websites helps in
fixing the brand mage in the minds of users for using the social site (Lwin and et.al., 2018). Also,
by being consistent as syncing the photos and content, also updating the users by the brand. The
company is focusing on posting ye catchy pictures which helps in raining the users by building
brand.
D) Examining how the CEO of FACEBOOK created, developed and designed strategic planning
of company
The CEO of Facebook will creating, developing and designing the planning as:
setting goals, the plan will be created by knowing the audience of the business. This is the firsts
step taken by the company CEO for designing the strategic by knowing the audience. Further the
goals must be designed as for increasing the sales of the company also helps in achieving profits
for the company (Peljhan and Marc, 2021). After knowing the audience the company will
proactively engage with the audience by gaining interactive content and attracting audience by
providing great place to post and engage their content at the Facebook site. The company must
schedule its content in the proper form as by adopting various marketing techniques and proper
deciding the posting of the content to be posted on site and the pictures portion. While planning
for the strategy deciding the content also adopting the higher marketing strategy for engaging
more and more consumers.
Furthermore the company will be determining its strategic position while planning for
companies strategies. Planning will also involve in determining its priorities, as for why the
strategy is being adopted by the company and for executing the strategy right person must be
executed at the right position (Mosquera and et.al., 2020). As for appointing right people at right
position, or hiring personnels for operating the department will help in increasing the business
performance.
While planning for implementing and various strategies the company is focusing on its mission,
by eliminating small distractions and reacting on the important matters.

The company CEO has implemented the latest plans in the company as by increasing the
security for privacy of content. Also end to end encryption of the data is being proposed with
transacting at low cost (Morgan and et.al., 2019). Also, adopted the detection programs for
detecting the fake news connect in order to post the actual and real content on the site.
E) Different levels of strategy
There are various levels of strategy in which the strategies are formed for the functioning
of business and it includes decisions for the areas of improvement. They are as under-
Resource based strategy- This theory means that how much the resources organization
have to improve its performance than the competitors. It includes VRIO (value, rarity, imitability
and organization) analysis which helps the organization to know about their resources.
Resources Value Rare Organized Inimitable
Audience yes yes yes No
International
Presence
yes yes yes No
Financial worth yes yes yes No
Technology up
gradation
yes yes yes yes
Organization
Culture
yes yes yes no
There are certain issues on which company needs to focus to improve the overall performance of
the company. For example company needs to focus on increasing audience as there are many
other social media apps that are attracting customers. Although Facebook audience is high but
due to increase in competition other platforms promoting their apps and attracting global
audience.
Further, company needs to focus on organisational culture like to improve the employee
satisfaction and that will results in increase the performance of the company. This will improves
the overall growth in the company.
Blue ocean strategy- In this strategy company uses low cost strategy to increase the
demand of the application in the new market. Company uses this strategy while entering into

new market segment so that competition factor doesn't matter because of low price. This will
further leads to growth in the business and increases profits of the company (Luo, 2021). There
are many issues arises when Facebook company implementing this strategies like sometimes
customers doesn't understand the application and it's services.
Besides this too much patience required when this strategy is being implemented as at
initial levels there are risk. Sometimes Facebook company fails to create the demand in the new
market area as customer don't like the offerings of the application. It includes creating the
unnecessary space in an area where the customer are not responding to the application. Further,
Facebook fails to create different costs in the organization and faces difficulty in the alignment
of the activities. In other market company charges different prices so keep record of the different
prices that are set for the new market (Ricci and et.al., 2021). In addition to that company also
faces difficulty in creating the demand in the new market area as the other rivals also follows the
same strategy and hinders in capturing the new customers.
Based on these theories company improves the overall performance of the company by
increasing the large number of audience in case of resource based strategy (Zimmer, 2020).
There are many other social media apps that attracting the customers so Facebook must include
features that are in other apps. It will help organizations in not losing the customers.
Further, in case of blue ocean strategy Facebook should find ways to spread the
knowledge of this application to the people. Besides this also delivers new ideas of new
applications and it's features so that customer gets clear understanding of the application then it
will lead to gaining new audience.
Using appropriate corporate examples and literature to justification
Various examples for justifying literatures are as follows: Walmart company, the store
Asda is operated in UK, is using costs leadership strategy. By using this strategy by the Walmart
helps in attaining competitive advantage. The company Selling its products by maintaining low
cost. This helps the company to attract large numbers of consumers for purchasing vraious
products from the stores of the Walmart. By using this strategy has helped the company by
effective establishing competitive advantage. The company is being effective by using this
strategy for establishing the competitive advantage in the country. By establishing the latest
technical equipments and adopted automated technologies aids in achieving low operational cost

for the company. Also, by adopting this strategy helps the company in reducing the outsourcing
costs.
Nike company is using consistency strategy, for maintaining its brand strategy as of the
sprit sports by celebrating the struggles and efforts of all individuals who are working in the
company. As by using this strategy help in inspiring various individuals for remaining fixed or
staying at consistent position by maintaining the brand image over the years. The company is
building its image by constantly exploring various ways for maintaining the positioning and
actions of company at the desired stage.
Suggestions / recommendations for FACEBOOK to sustain its position
For maintaining the market position of company, various recommendation for sustaining the
position of company are :
 Facebook company must provide privacy concern options for increasing piracy of users
data.
 Facebook company must integrate all its goals, activities, websites , marketing , planning
and other departments in for sustaining its competitive position in dynamic market.
 By limiting various campaigns and the fake contents for ensuring quality content to be
posted on the website for sustaining current position of the business.
 Company must prioritize group of events which needs o be done on the particular date on
the user profiles, also developing presence of various groups by posting interactive
content and graphical posts.
 By adopting privacy checking tool, as by showing the news feed when the privacy is
being interrupted of users. This helps in directing about the privacy issues and why the
privacy of the user is being disrupted will be checked by applying tool.
 Company must adopted the strategy for boosting up the top likes posts by using effective
marketing techniques , this will helps in engaging users in better and efficient way.
 The cony must use and experiment with the new content , as of ever-changing the social
media trend recently the trend is to socialise and connect with all the audience by making
videos. experimenting with posting new videos which is not grasped.
 The company must host giveaways for the users , by gifting valuable gifts to uers wil
helps in retaining the loyal consumers for the company.

 Company must use strategies for asking various opinions for improvement of the
Facebook site. As this opinion will helps in adopting latest trends according to the
consumers preferences and helps in sustaining the position of the company in long run.
CONCLUSION
From the above report it can be concluded that global strategic management aid in
making and planning various strategies for expanding the business at worldwide level. Facebook
company established as the largest social networking sites used by radius users for connecting
and hosting various media and feed regularly. These site is helpful for entering with various
individual globally and aid in providing information with the news. Thus, global strategy is
maintained by the company for sustaining its position and gaining market share for the company.

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