MBA501: Stakeholder Strategy for Facebook and Portfolio Analysis

This presentation provides a comprehensive analysis of Facebook's stakeholder strategy and portfolio. It begins by identifying key stakeholders (users, advertisers, employees, government, and community) and recommending specific strategic programs for each, aligning with generic strategy a...Read More

INTRODUCTION
Facebook. Inc. is a social networking platform
and is the world’s largest platform today. The
corporate was based by Mark Zuckerberg and
its headquarters area unit is in Menlo Park,
California, USA. The distinctive commercialism
proposition of the corporate is to provide its
users a standard platform wherever they'll
move and share their opinion through matter,
pictorial and video based medium. Nowadays
it's user base of 2.41 billion users that has
helped the corporate to draw in various firms
to promote their merchandise and services.

Continued..
Today it has the worlds largest user base providing
the platform a fertile area for marketing various
products and services to grab the attention of the .
+

Facebook
Advertisers
Users
Employees
Government
Communities
Stakeholders of Facebook

Stakeholders of Facebook
The stakeholders of the company are as follows:
1. Users: The users of Facebook are the foremost necessary
stakeholders of the corporate. They are the units of
individual entities that helps the corporate to keep a balance
among the other stakeholders. The massive frequency of the
user base acts as a leverage that helps the corporate to live
through external shocks of the business and to experiment in
new areas like AI, machine learning and crypto currency.

Continued..
On the opposite side, the distinction in perception of the
large user base has helped the corporate to promote
product and services in keeping with the preferences.
Supported by the varied nature of the user base, the
product and services are square measured consistently
aligned supported status, behavior, culture, gender and
numerous different factors clubbed together and
segregated according to the personality of the users.

Stakeholders
2. Advertisers: Secondly, advertisement is the next important
stakeholder for the company. They're the monetary part of the
corporate and supply money from time to time for which we
users enjoy the services for free. The high frequency of publicity
is entirely because of the large frequency of users whuch is a
positive opportunity for the corporates. The services provided
to the advertisers becomes distinctive and targets the users
effectively. They supply static and dynamic choices through
basic scrolling advertisements, between the videos and paid
pages advertisements. The information analyzing capability of
the platform helps the advertisers to focus on the proper
customers through segmentation and personality identification.

Stakeholders
3. Employees: Thirdly, the employees form an integral
part of the company as they're the human resource
behind maintaining the platform’s position at the highest,
no matter the enlarged competition from different similar
platforms. They are to be credited for the creation,
management and improvement of the services provided
by the corporate. The shape Associate concerned
revolves around this stakeholders. As a result of their
presence and daily functioning, it helps to maintain the
uniformity of the services on a commonplace such as
Facebook.

Stakeholders
4. Government: The external resistant or law provider for
the corporate is the government. The government of the
concerned country in which Facebook operates is
accountable for the imposition of laws and rules for the
operation within the market. The foundations and rules
facilitate the corporate to follow a legitimate direction
and limit them from performing practices resulting in any
unlawful activity. The company’s social responsibility is
additional associate and an integral part of the corporate
and its business atmosphere.

Stakeholders
5. Community: The communities within Facebook are the
accumulation of users centered towards a specific cause
or initiative, These teams have the ability to influence
heaps of different users and has the power to drive the
individuals for or against a social, political, environmental
or personal problem. As, the quantity of individuals
among the community is large and growing on a
commonplace, the influencing power of every community
has multiplied over time. Some samples of these
communities square measure Political Communities,
Stray Animals, Protection for the Orphanage and so on.

Strategies for Stakeholders
1. Users: Offensive strategy is the most suitable strategy
for this particular stakeholder. The offensive strategy is
essentially to get rid off or eliminate competitors from
the market . The users are the most important
stakeholders for the corporate and may have an extreme
influence on the business in an exceedingly negative or
as positive manner. The offensive strategy projected,
dead fits the users thanks to their mixed characteristics.
Therefore to take care of the market leadership position
of the corporate, offensive strategy should be used for
the users.

Stakeholders Strategy
2. Community: Communities are the units forming
clusters who possess an enormous level of influence on
the behavior and perception of the people present in the
platform. They have the power to regain the high
frequency of users. These communities give a motive to
them to come to the platform frequently. So, the neutral
strategy applicable to thiese virtual communities is the
hold strategy. This strategy is ideal for the community. As
a result of hold strategy, it provides maximum freedom
to their viewpoint and opinion. This helps the
stakeholders to extend their positive influence and scale
back the negative influence on the community.

Stakeholders Strategy
3. Employees: The employees are the entities that are
accountable for regular functionality of the business.
Facebook focuses on cross cultural diversity among the
workers. Staffs of Facebook belongs to numerous nations
possessing totally different talents and skills. Therefore,
to alter their negativity, the Swing Strategy should be
used in order that minimum intervention is provided to
them which can result in enhancement of their potency.
Swing strategy can facilitate the workers to keep up
grade of interest within the company and can balance
the cross cultural diversity among the corporate to
produce a positive direction within the business.

Stakeholders Strategy
4. Government: The government is the fourth pillar of
the stakeholder and answerable for guiding the corporate
by the foundations and rules of the state. As, Facebook is
essentially a social networking platform, the users have
maximum freedom to precise their feelings and form an
opinion on a selected scenario, the political interest of
the users have attracted plenty of political parties and
have persuaded individuals to create a political
inclination. So, the laws and rules are getting rigorous
and strong each day. To keep them content a defensive
strategy has to be attained in order that the government
shall not hamper the daily functioning of the business.

Recommendation of a Strategic
Program
The strategic management program helps the
company to maintain the interest level of the
stakeholders which helps them for long run
sustainability in the industry. The strategies are as
follows:
a) Strategy for the Users: The main strategy used for
the users is the offensive strategy. The strategies
and tactics used to increase the frequency of users
as well as retention of the old users are :

Continue…
i) Usage of additional features such as sports based quiz
contests and virtual event conduction. This will allow
the customers for long term engagement with the
platform.
ii) Reduce Irrelevant advertisements: It has been
observed that the advertisement information is being
directed to the wrong personalities. For instance:
Beard Oil advertisement being shown to the women.
Therefore, personality analysis must be more detailed
so that the users do not get dissatisfied with the
platform.

Recommendation of a Strategic
Program
2. Employee: Employees are an integral part of the organization who
dedicate long hours for the growth and sustainability of the company.
Social networking platform requires high levels of analysis for proper
functioning which may be frustrating. Therefore, as stated earlier
swing strategy has to be used. The strategic program that can be
recommended are:
a) Providing an Organic Structure to the company: Organic Structure
is a type of employee framework where there exists no departments
and task is aligned in such a way that employees engage among
themselves and form an integral bonding. This helps the organization
at the time of employee retention and they face emotional
hindrances when offered more packages from other companies.

Recommendation of a Strategic
Program
ii) Efficient and Systematic Pay Structure: Today the main
element that drives the employees to work hard and to
give their best. So remuneration must be based on the
efficiency and output of the workers. A robust incentive
based structure must be attained to extract maximum
from the employees, On the other hand, fair
remuneration will ensure satisfaction of the employees.

Recommendation of a Strategic
Program
3. Community: Facebook communities are groups of
people who engage among themselves for a common
objective. The strategy recommended earlier is hold
strategy. The detailed recommendations to ensure
maximum engagement are:
i) Indirect Partnership: The top trending communities on
Facebook has the authority to influence people.
Therefore, this gives an opportunity for the company to
involve them in advertising products and services among
the members of the community.

Recommendation of a strategic
Program
ii) Other monetary and non-monetary benefits: Based on
the footfalls of the followers the company must provide
monetary benefits to the communities to engage them in
depth with the company. On the other hand, Facebook
must organize physical events to maintain the hype of
the platform.

D & H
D&H is a fast moving consumer goods company founded
50 years ago. The products of the company are:
1. Pure Juice.
2. Burgers RU’s.
3. Home Fresh.
4. Funville Chocolates.
5. Munchy Biscuits.

Boston Consulting Group Matrix
(BCG)
Question Mark
Burger RU’s & Pure
Juice
Star
Home Fresh
Dog
Funville Chocolate
Cash Cow
Munchy Biscuits
BCG MATRIX
M
a
r
k
e
t
G
r
o
w
t
h
Market Share

Product fit explanation
Question Mark: Burger RU’s and Pure Juice falls in this
category due to its low market share and high market
growth.
Star: Home Fresh products falls in the category of Star
because it has a high market share and high market
growth rate.
Dog: Funville Chocolates falls in this category. This is
because it has a low market share and low market growth
rate.
Cash Cow: Munchy Biscuits falls in this quadrant. This is

Business Unit Strength
Market Attractiveness
GE – McKinsey Matrix
High Medium Low
Low Medium High Munchy
Biscuits
Home
Fresh
Pure Juice &
Burger RU’s

GE MATRIX: Product Explanations
• The product placed in the 1st quadrant is Home Fresh.
The rationale behind placing the brand in this quadrant
id due to its high market attractiveness and high
business unit strength.
• The product placed in the 2nd quadrant is Munchy
Biscuits. This is because of its high market
attractiveness and medium business unit strength.
• In the 5th quadrant, both pure juice and Burger RU’s is
placed due to its medium market attractiveness and

Synergy Matrix
Munchy
Biscuits
Pure Juice and
Home Fresh
Funville
Chocolates
Burger RU’s

Synergy Matrix Explanation
In the FITS category, specifically in the top right corner,
Munchy Bicuit is palced. This is because the incoming
benefits and outgoing benefits are high for this brand.
Pure Juice and Home Fresh both the products are
categorized under Misfit section because both the
incoming and the outgoing benefits are negative.

Synergy matrix Explanation
• In the Parasite category the brand Burger RU’s is
placed. This is because of positive incoming benefits
and negative outgoing benefits.
• In the TAKERS category, Funville Chocolates is placed as
the incoming benefits of the brand are positive but the
outgoing benefits are negative.

Recommendations
Munchy Biscuits: This was a flagship product for the
company but due to increased competition in the market.
In the BCG matrix it falls in the Cash Cow category. In the
GE matrix it falls in the 2nd Block and in the Synergy
portfolio matrix it falls in the FITS category.
This means that it is in the maturity stage of the
product life cycle and thus has huge present sales in the
market but after few years the product will be perished
from the market.

Recommendations for Products
Pure Juice and Burger RU’s : The product is in the
Question Mark section in the BCG Matrix. In the GE
matrix is placed in the 5th quadrant and in the synergy
matrix it is placed as MISFIT.
This means that it is in the Introductory Stage and
has a long way to go in the market. The current sales are
low but the future sales will be very high.

Recommendations for Products
Home Fresh: The flagship product of the company at the
moment. In the BCG matrix it is placed in the Star
category. In the GE Matrix it is paced in the 1st block.
Therefore, it is in the later part of the growth stage
in the product life cycle which is the most profit making
product at the moment and has a long run sustainability.

References
• Hassan, M. and Casaló Ariño, L.V., 2016. Consumer devotion to a different height:
How consumers are defending the brand within Facebook brand
communities. Internet Research, 26(4), pp.963-981.
• Mitchell, R.K., Van Buren III, H.J., Greenwood, M. and Freeman, R.E., 2015.
Stakeholder inclusion and accounting for stakeholders. Journal of Management
Studies, 52(7), pp.851-877.
• Saxton, G.D. and Waters, R.D., 2014. What do stakeholders like on Facebook?
Examining public reactions to nonprofit organizations’ informational, promotional,
and community-building messages. Journal of Public Relations Research, 26(3),
pp.280-299.
• Sobczak, A. and Havard, C., 2015. Stakeholders’ influence on french unions’ CSR
strategies. Journal of Business Ethics, 129(2), pp.311-324.
• Yang, R.J., Wang, Y. and Jin, X.H., 2014. Stakeholders' attributes, behaviors, and
decision-making strategies in construction projects: importance and correlations in
practice. Project Management Journal, 45(3), pp.74-90.

References
• Fai Pun, K., 2004. A conceptual synergy model of strategy formulation for
manufacturing. International Journal of Operations & Production Management, 24(9),
pp.903-928.
• Hambrick, D.C., MacMillan, I.C. and Day, D.L., 1982. Strategic attributes and
performance in the BCG matrix—A PIMS-based analysis of industrial product
businesses. Academy of Management Journal, 25(3), pp.510-531.
• Hambrick, D.C., MacMillan, I.C. and Day, D.L., 1982. Strategic attributes and
performance in the BCG matrix—A PIMS-based analysis of industrial product
businesses. Academy of Management Journal, 25(3), pp.510-531.
• Udo-Imeh, P.T., Edet, W.E. and Anani, R.B., 2012. Portfolio analysis models: a review.
European Journal of Business and Management, 4(18), pp.101-117.
• Fleisher, C.S. and Bensoussan, B.E., 2003. Strategic and competitive analysis:
methods and techniques for analyzing business competition (p. 457). Upper Saddle
River, NJ: Prentice Hall.