Global Strategic Management: Facebook's Strategies & Analysis

This report provides a comprehensive analysis of Facebook's global strategic management, examining the business strategies employed by CEO Mark Zuckerberg, including development by acquisitions, fostering employee engagement, developing effective teams, and focusing on user experience. It includes a SWOT analysis of Facebook's internal environment and a PESTLE analysis of its external environment, evaluating the company's strengths, weaknesses, opportunities, and threats. The report also assesses the strategic tools, such as Porter's Five Forces, used by Facebook to improve its competitive position, and explores the development and designing process of Facebook's strategic planning, emphasizing knowing the target audience, determining visions and goals, developing strategic plans, and knowing the strategic position. Finally, the report critically evaluates contemporary management issues in strategy, synthesizing dissimilar levels of strategy used by Facebook to maintain its market leadership.

Global strategic
management

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY...................................................................................................................................4
Discussion of business strategy practised of CEO of Facebook company:................................4
Describing the critical analysis of internal as well as external environment of Facebook
company:.....................................................................................................................................5
Evaluation of the strategic tools adopted by Facebook in improving competitive position:......7
Assessing the development as well as designing process of Facebook in developing strategic
planning:......................................................................................................................................8
Critically evaluate and analyse different contemporary issues of management in strategy
which clearly synthesise between dissimilar levels of strategy which has been used by
Facebook company. ....................................................................................................................9
Conclusion:....................................................................................................................................11
References:.....................................................................................................................................12

Introduction:
The concept of strategic management consists of making strategic policies with the
purpose of attaining competitive position in business. This enables the management to
effectively utilise the efforts of workforce in the efficient as well as effective manner. The global
strategic management supports the company to enhance its profitability in market after gaining
insight about the behaviour of consumers as well as suppliers. In relation to this, it also helps in
boosting the employee morale by properly considering the needs as well as wants of employees.
For this report Facebook is taken into consideration. The company provides messaging and video
calling services to customers all over the world. The firm is owned as well as run by Mark
Zuckerberg. The report will cover the business strategies adopted by company as well as will
analyse external and internal environment of company. In relation to this, the report will also
discuss about strategic tools used by company for improving market performance. Moreover, the
report will highlight strategic issues the firm faces in different level of strategy. The report will
also recommend the firm to retain competitive position in market.

MAIN BODY
Discussion of business strategy practised of CEO of Facebook company:
The business strategies supports the business organisation to strategically plan business
actions in order to face challenges of the dynamic as well as competitive external environment.
The following are the business strategies practised by CEO of Facebook company in order to
bring positive changes as well contribution in the organisation are:
Development by acquisitions:
The CEO of Facebook company Mark Zuckerberg lay its focus on building competitive
advantage in market by taking the ownership rights of famous digital media companies. In
addition to this, the main objective behind adopting this strategy is to improve the market share
as well as customer share in effective manner van(Zoonen and et.al., 2018). Moreover, this
strategical step helps the organisation to become world's biggest social media company in the
world. For instance, the company successfully enhanced its market share by acquiring Instagram
and Facebook.
Fostering employee engagement in decision making process:
The other critical strategy practised by CEO of company is to allow employees to make
their suggestions as well as opinions without any problem. In order to do this, the company takes
appropriate measures by developing open communication channels which supports the workers
to effectively convey their opinions in decision-making process. This helps the firm to boost
employee motivation to work in optimal manner as well as also assist the firm to make best
strategy for achieving goals and objectives (Metz, Kruikemeier and Lecheler, 2020).
Developing effective teams:
The Facebook CEO Mark Zuckerberg believes in hiring best talent across the world in
order to build effective as well as efficient teams. The CEO has the opinion that skilful as well as
efficient workforce can support the company in reaching greater heights of success ladder. In
addition to this, the Human resource management constantly search for the most creative as well
as dynamic candidate which can assist the company in achieving goals as well as objectives in
most appropriate manner. Moreover, the making of effective teams with skilful workers can aid
company in generating innovative as well as strategic ideas for attaining competitive position in
market.
Focusing on building positive user experience:

The other important strategy behind the huge success of Facebook company is designing
the user friendly interface. This strategy of Mark Zuckerberg is directed towards boosting the
experience of users while using the application. In relation to this, the company provides to its
customers the highly customized feature of app that supports them in adopting the feature of
their choice and want. This strategy of Facebook company supported it to attract the large
number of customers as well as aided in gaining competitive edge in social media industry (Jang,
Bucy and Cho, 2018).
Describing the critical analysis of internal as well as external environment of Facebook
company:
In order to evaluate the internal environment of company SWOT business tool is taken
into practise as application of this model will support the company in analysing its strengths,
weaknesses, opportunities as well as future threats. The following table shows the SWOT
analysis of Facebook company:
Strengths
 The biggest strength of the company is
its large customer base which covers of
billions of people across the world. In
addition to this, the firm operates in
large scale (Frigato and Santos-
Arteaga, 2020). The company main strength reflects in
their efficient workforce that are
innovative as well as dynamic
professionals.
Weaknesses
 The biggest challenge for the company
is its inability to provide appropriate
protection to the personal information
of the customers globally.
 The revenue of the firm is highly
restricted to their promotional as well
as advertisement campaigns for
promoting products of company.
Opportunities
 The rise in the usage of smartphones by
large number of people especially in
untapped markets has provided an
advantage for company to explore into
untapped markets.
Threats
 The formulation of innovative as well
as creative social media apps in
different country has posed the
significant threat in terms of loosing its
loyal customers.

 The firm can make suitable security
modifications on their site which can
support the firm to run operations in
restricted countries.
 The increase in the power of hackers
pose the threat for the company's
operation as this may leak customer
private information.
PESTLE analysis:
In order to conduct the analysis of external market condition, PESTLE model is practised
which is discussed below:
Political force:
The higher political stability especially in developed country provides an opportunity for
the company in diversifying their operations as well as achieving greater position in market
(Palazon, Delgado-Ballester and Sicilia, 2018).
Economic force:
The rising economic growth of developing countries such as India has also provided the
advantage for company in increasing their operations effectively. In relation to this, the high
growth of disposable income of people is also win-win situation for company.
Social Force:
The increase in the preference of people in order to trade via online platforms or rise in
online buying has provided an acceleration to firm in enhancing market share.
Technological force:
The transformation of online retail firms has posed the threat to the company's operation .
In addition to this, the increase in the development of other social media platforms can also
competitive position of firm (Joo, Choi and Baek, 2018).
Legal force:
The rise in providing fee Wi-Fi system in various countries positively impacts the
operation of company.
Environment force:
The Increase in laws regarding operating business in eco-friendly manner will support
company to gain competitive advantage as it follows proper waste disposable standards.

Evaluation of the strategic tools adopted by Facebook in improving competitive position:
In order to gain insight about the external forces, the CEO Mark Zuckerberg undertakes
use of Porter 5 force model. This strategic model supports the company in assessing the
strategies of competitors as well as supports in making effective strategy with the purpose of
enhancing competitive edge in market. The following information shows the elements of this
model in context to Facebook company are:
Competitive rivalry:
This quadrant reflects the volume of competitors as well as level of competition intensity
in market. In the global market of social media industry, there are number of companies which
provides the same services as compared to Facebook. However, the impact of competition is
considered to be moderate as the company has successfully taken measure in improving the user
interface which supports the organisation in gaining competitive edge (Kaur and et.al., 2019).
Bargaining power of buyers:
The bargaining level of buyers in the market considered to be low as the company
provides competitive advertisement services at the competitive price structure. This may lead the
buyer to bargain less as the cost of switching can be costlier for the customers. In addition to this,
the highly customized features supports the company in retaining customers in the effective
manner.
Bargaining power of suppliers:
The bargaining capacity of supplier is less for the Facebook company as the company
majorly uses their own servers as well as technology in delivering effective features to the
customers. In addition to this, the largest customer base as well as higher market share in global
countries restricts the suppliers to work with them.
Threat of new entrants:
The threat related to entry of new technological start-ups is high as there are large
number of software engineers who are developing new technology as well as innovations for
designing online messaging applications. This can be challenging for the company's long term
objectives and goals as new start-up can negatively put influence on the customer base of the
company as well as its market share (Chugh and Ruhi, 2018).
Threat of substitutes:

The threat of substitute for the Facebook company is higher level as due to technological
advancement the number of IT professionals are finding news ways that can provide the same
service and feature as the Facebook provides to its customers. This can be become the
challenging situation for the organisation in terms of gaining higher market share in future. In
relation to this, it can also negatively influence the growth potential of its future operations.
Assessing the development as well as designing process of Facebook in developing strategic
planning:
The strategic planning referrers to the activity of management for determining the long
term objectives as well as vision of the company. The effective strategic planning supports the
company in reducing the future risks that can pose damaging effects on the operation of
organisation. In relation to this, the strategic planning also helps the firm in doing proper
modifications in their business processes according the changes of external market forces Vieira
and Pelissari, 2018). The following explanation reflects upon the strategic planning process
designed by Facebook company which are:
Knowing target audience:
While designing strategic plans the Facebook CEO puts priority in gaining insights about
the demands as well as needs of target audience. The company tries its best in delivering the
services that can best satisfy the demands of customers in the market. In relation to this, the
evaluation of target audience preference supports the company in determining which kind of new
features can change the lives of customers in terms of communicating online.
Determining visions as well as goals:
The other important measure adopted by Mark Zuckerberg in order to make strategic
plans is designing the mission as well as goals for the company. Building mission supports
employees to focus on their tasks as well as put best efforts for realising the strategic plans into
reality. The development of mission supported the Facebook in increasing the loyalty of
customers and also assisted the firm in drawing attention of large number of customers towards
its services (Jin, 2018).
Developing strategic plan:
After properly analysing the market trends, the CEO of Facebook develops the strategic
plans according the current market changes. This supports the company in implementing its

limited resource in the efficient manner. In relation to this, the development of data driven plan
helps company in achieving competitive position in market.
Knowing strategic position:
The other major step that supports Mark Zuckerberg in formulating correct strategic plans
is by analysing the current position of its business in the global market. In this, the firm conducts
market analysis in order to ascertain their share in the market as well as behaviour of customers
towards their services (Kim and Kim, 2019).
Evaluating and reviewing strategic plan:
This phase is crucial for the Facebook company as it supports it in assessing whether the
plan is implemented according to the set standards of performance or not. The Mark Zuckerberg
adopts certain KPI's as well as automation tools which assist the firm in rectifying their wrong
planning tactics.
Critically evaluate and analyse different contemporary issues of management in strategy which
clearly synthesise between dissimilar levels of strategy which has been used by Facebook
company.
Contemporary strategic management basically consist of both traditional approach to
strategic thinking and current view of new developments in applied management principles and
theory. In context to Facebook company, at the initial level there are not many features provided
by the company for their customers due to which management can't maintain a consistency level
within the organisation(Kalir., 2020).According to latest working of the company, the company
is facing issues regarding content and unreliable sources on new tab. As these issues are
important from perspective of customers so it needs to be solved at the management level on the
fast pace manner. These issues are also important because its about customers privacy of data
and their safety of information as well. Due to its open nature f the company these issues has
been raised so it becomes difficult for customers to trust from the perspective of long run.
In order to solve these issues, Blue ocean strategy can be implemented at the
organisational level. Blue ocean strategy basically refers to the market for a product where there
is no competition or having the lower level of competition as well. This is a strategy which
revolves around this concept that searching for the business where very few firms have been
operated and also there is no pricing pressure as well. When Facebook has been launched on the
initial level, then there is no such kind of large platform who can perform on higher level in such

a consistent manner (Liu and et.al., 2021). Blue ocean strategy can be implemented at the
organisational level through following certain steps which include seeing the leadership reality
and then develop alternative leadership profiles. After that select to be leadership profiles and
then institutionalise the new leadership practices as well.
At the organisational level of Facebook, this strategy can be implemented into positive
manner where Facebook is the only platform which is very famous in this digital world from a
very long period of time into consistent manner. The leadership profiles can be developed for the
Facebook company so that they can resolve their issues into result oriented manner. It is the
company who follows laissez-faire approach along with democracy and autocracy as well. With
this kind of approach it is easier to solve management issues into result oriented manner.
According to changing period of time, Facebook is the company who can adopt new
strategy and leadership style as well due to which they can solve problems into result oriented
manner (Schott and Ritz., 2018). The new leadership style can bring changes at the
organisational level and also makes difference in terms of performance of the company into
result oriented manner. In this manner, Facebook company can implement Blue ocean strategy at
the organisational level in order to solve management issues into context of strategy.
Using appropriate examples in order to justify statement:
The corporate example other than Facebook company is TikTok which is the platform
that is completely based in attention model of business. In relation to this, the company
undertakes usage of innovative strategies by taking use of AI algorithms which supports the
company to improve their level of content as well as optimise the experience level of users.
Furthermore, the twitter company focuses on adopting innovative process which creates as well
as deliver the content according the need as well as personas of audiences. This supports the
company in attracting large number of customers as well as assists in reaching into higher market
base (Ji and et.al., 2019).
Recommendations:
After analysing the above discussion, it has been recommended that the company should
update its current security policies in order to eradicate the chances of leakage of private as well
as financial information of customers. This update in security will support the company in
reducing the power of hackers as well as allow customers to post their content without any fear

of fraudulent access. In addition to this, the strategy can help the firm in regaining its lost market
share back in the most effective manner. It can also motivate the businesses to run their
promotional as well as advertisement campaigns without any fear of loosing their confidential
information. Moreover, it can also lead the Facebook company to create a favourable position in
the minds of government as well as legal bodies. Furthermore, the firm can also gain large
number of profits as well as higher market share when it adopts the strong security policy that
can stop the hackers to enter and gain unauthorised access of customer's private data. It has been
further recommended that the organisation should take measures in stopping the sharing of
unreliable informations by the people. The company should build effective feature which can
stop the posting of fake messages as well as content. In relation to this, the company can also
take support from technological innovations such as Artificial intelligence in order to stop
messages or content that comes from unreliable sources. This measure can support the Facebook
company in achieving competitive position in global market. Along with this, it can also assist
the organisation in enhancing global peace as well as unity by allowing posting only relevant and
important informations (Camarero, Garrido and San Jose, 2018).
Conclusion:
It has been concluded from the above report that strategic planning is critical for the
company in terms of providing strategic direction to workers in order to achieve the goals as well
as objectives of the company in timely manner. In relation to this, the strategic planning assisted
the organisation in gaining competitive position in industry as well as also supported the firm in
drawing attention of large number of customer. This report has clearly explained about the
strategies adopted by the Mark Zuckerberg which aided the company in ensuring smooth
operations. Moreover, the report has also conducted the internal as well as external analysis of
firm' s business environment with the purpose of knowing the internal and external market
trends. Moreover, the report has also examined the external forces that can impact its future
operations by taking use of Porter's 5 forces model. Furthermore, the report has also analysed the
process that company follows while designing strategic planning. Along with this, the report has
also evaluated the strategical issues faced by CEO of company in different levels of strategies.
The report has also recommended the firm in order to sustain its position in the dynamic
environment.

References:
Books and Journal
Camarero, C., Garrido, M.J. and San Jose, R., 2018. What works in facebook content versus
relational communication: a study of their effectiveness in the context of
museums. International Journal of Human–Computer Interaction, 34(12), pp.1119-
1134.
Chugh, R. and Ruhi, U., 2018. Social media in higher education: A literature review of
Facebook. Education and Information Tec