Report: Global Strategic Management of Facebook's Business Operations

This report provides a comprehensive analysis of Facebook's global strategic management. It begins with an introduction to global business and Facebook, highlighting its corporate strategies and positive contributions. The report then delves into business strategies, including Porter's generic strategies, the BCG Matrix Model, and vertical and horizontal integration. A key focus is the internal and external environment analysis using PESTLE and VRIO frameworks, followed by an examination of how Facebook's CEO manages complex problems. Strategic tools such as gap analysis, the McKinsey 7S model, and Porter's five forces are described to enhance organizational performance. The report concludes with an evaluation of contemporary strategic issues and offers suggestions and recommendations for Facebook's continued success. The content covers strategic tools and models, the company's strategies and the management of complex problems.

Global Strategic
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK A...........................................................................................................................................3
Examine the business and corporate strategies about the positive contribution to the company.
.....................................................................................................................................................3
TASK B...........................................................................................................................................5
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO. ..........................................................................5
TASK C...........................................................................................................................................6
Describe the strategic tools to enhance the overall organisational performance........................6
TASK D...........................................................................................................................................8
Examine the concept and model to develop and design the strategic planning..........................8
TASK E............................................................................................................................................9
Evaluate the various contemporary strategic issues in strategy by using concepts and model...9
Suggestions and recommendations ...............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global business is the type of business which perform the international trade and
operating its business across the globe with the exchange of goods and services (Chen and et. al.,
2018). Facebook is the chosen organisation for this respective report, it is the American social
media and the global networking company that is being established by Mark Zuckerberg in 2004.
they are connecting people so that they can increase the overall operations of the business on
global platforms. This particular report mainly analyse the corporate strategies which is related to
the positive contribution of the company. Moreover, they also analyse the external and internal
business environment. Moreover, this also describe the strategic tools that increases the entire
business performance of the company and also defined the certain model to develop the
strategies for improving the overall performance of the company. At last, this will cover the
various corporate level strategies so that they can ensures the overall working of the company
with the recommendation.
TASK A
Examine the business and corporate strategies about the positive contribution to the company.
Business strategy
This is the action plan which is being framed by the actions taken by the manager of the
company for improvising the goals of the company. These are the basic directions which are
being followed by the organisation and its employees. In relation to Facebook, certain
framework and model is being used to analyse the strategies for international business are
explained as follows:
Porter's generic strategies
It is the model that helps in identifying the certain ways by which they can retain the
competitive benefits in the large market. Following are the three strategies in relation to
Facebook which are given below:
 Cost leadership: In this strategy, the buyers who are desiring to by the affordable goods
with the Facebook, they are offering certain benefits on the basis of subscription and the
overall internet use.
 Differentiation: In this, the company is can focuses on the innovation and the better
products so that the unique products can be manufactured in comparison to the other

brand which are operating in the networking and social media sites. In this,, Facebook
can launch products like Instagram that leads to get huge growth as they are offering
unique features.
 Focus: This is the strategy which emphasis on the particular market segment in context to
the cost focus and differentiation focus. Facebook needs to give offer to its services in the
lower prices with the help of innovation features the the particular group of people.
The BCG Matrix Model
Boston consulting group, it is the growth-share model that is being used to give the
graphical presentation of the goods and services of the organisation in the overall direction which
help them to decide what they must be keep, sell and invest more in. In relation to Facebook,
there are following category which are explained as follows:
 Star: This is the category in which the particular products is having huge growth and the
overall market share(Köseoglu and et. al., 2019). In context to Facebook, Instagram
comes under the star goods as they are having the high market share. This is currently
leading growing SBU and they are having the double the overall user base to 700 million
active users on monthly basis of 2 years.
 Question Mark: This basically have the low market share which is leading in the
growing market. Facebook needs to being required in research and development which is
not yet there is no certainty which the Oculus will get the success. According to the
report of NYTimes, Zuckerberg is planning to invest $ 3 billion in next decade to get
more users to the Virtual Reality.
 Cash Cows:There are the leaders who have to generate more cash in comparison to the
consumer as they have high market share in the slow-working market. In this,
WhatsApp is considered in the considered in the category. Thus, the investment is hence
deemed unnecessary.
 Dogs:This is the category in which the given products is having not effective market and
the low market share. In this, messenger is the one who comes in the category as
everyone is using the WhatsApp and the app such as messenger which are no longer in
the use of the people.
Vertical and Horizontal Integration Model

Vertical Integration is the given strategy that helps the company so that they can operate
its operations by getting the ownership of the various stages of production rather than relying on
the suppliers or the contractors. Facebook is using such integration by which they can ensures the
business operations which is being held within the organisation by their own. This can be done
with the help of backward integration as the ownership controls the goods in the early stage of
the given supply chain. On other-hand, the forward integration helps in increasing as it helps in
the controlling the overall distribution process of the goods which are manufactured. It is the
strategy which help the Facebook to overlook the supply chain in a well-defined manner.
TASK B
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO.
PESTLE analysis
This is the method of analysing the external factors that is impacting the entire operations
of the business. In context to Facebook, following are the factors which are given below:
 Political factors: Facebook is the leading company which is being used by various
politicians so that they can get the ideas and then they vote for them. They have further
targeted the large audience by promoting the messages on Facebook and this is why the
political leaders must focuses on company.
 Economic factors: There are the certain aspects which is contributing the business
participations with the help of the advertising customers which is referrals and the better
contribution to the brand value of Facebook.
 Social factors: Facebook is focuses on helping the customers to stay in touch with the
people that are relatives around the world with the help of internet. This is becoming the
hub for the socializing which also help the small business so that they can promote the
goods as well.
 Technological factors: Facebook sing the huge variety of services which is leading to
have programming language and tools to make it infrastructure more unique and
technological for the business.
 Legal factors: Certain laws was being used so that they can make the control in the
overall working of social media platforms. Facebook is using the communication act and

the working in the social media platforms that must be controlled by the criminal justice
that are being control the smart phones of the individual.
 Environmental factors: Facebook is having the people to make the change their lives as
they are gaining the opportunities to socialise with the the people without calling them
doubt and they can know their news.
VRIO framework
 Valuable: As Facebook is working on the global platform as this is the valuable aspects
for the business by which they can have the more profits and revenue(Ghezzi, 2017).
These aspects helps in having the competitive benefits from the competitors. With the
benefit of having major leading brand across the world.
 Rareness: Facebook is majorly working on large platform by which they can have the
large audience and the huge financial strength and it is the rare products for the company
by which they can get the huge business opportunities on larger segment and leads to
have more revenue.
 Imitable: As the technology is increasing day by day which includes the technological
innovation that is helping the Facebook to ensures better profitability within the
company. Facebook is having good brand awareness which can not be copied by other
networking company around the world.
 Organisation: This is important for the organisation to have the organised resources in
an appropriate manner. As the overall organisational culture and the HR manager of
Facebook is using effective hierarchy so that they can recruit a individual and offer them
the effective functionality within the business.
TASK C
Describe the strategic tools to enhance the overall organisational performance.
Gap Analysis Model
This is the model that assist the company to analyse the actual performance and the
desired operations by which the deviation can be known within the organisation. This basically
helped in accessing the capabilities, technology, structure and the skills of the people by which
they can meet the pre-defined goal of the company. In relation to Facebook, Ansoff matrix and

McKenzie's framework is being used which help them to understand the actual and the desired
working of the company ad these are explained as follows:
McKinsey's 7S model
This is the framework that assist in analysing the design of the company by understand its
resources and the components of Facebook which are given below:
 Strategy: It is the plan which is being formulated by the company which can meet the
competitive advantage. Inappropriate technology used by Facebook, tends to face the
issues which is related to the satisfaction of the customer and its revenue.
 Structure: this basically defines the hierarchy of the company and the units in which
certain functions are being operated(Yoffie and Cusumano, 2015). As the Facebook is
not working with the proper structure then it tends to reduce the overall efficiency of the
organisation.
 Systems: It is the process which focuses to accomplish the given task that are given on
the daily basis. This also ensures the better system which help the manager to get the
changes in the operations of the company so that Facebook can sustain in the market.
 Skills: This is basically related to the abilities of the people by which they are related to
the overall capability of the employees so that they can deal with the complex situations.
 Style: As the leader of the Facebook is following the transformational leadership style in
which they are assertive and aggressive.
 Staff: this is the aspect which explains the various number of employees tat are operating
in the Facebook and they are offering training and rewards to the potential employees.
 Shared values:It is the core of this model that cover the standards and norms which is
complying with the employees so that they can understand the employee's behavior.
Porter's five forces
This the framework that analyses the strategic decision by evaluating the overall
performance of the company. There are following points which are explained in context to
Facebook are given below:
 Threat of new entrants: as the top leading company, they are not having so high threat
from the new start-up business. Facebook is top leading company which is operating its
business in the world that are operating with their wide variety of goods which involves
the messenger, Instagram and WhatsApp.

 Bargaining power of suppliers: There are few companies who are operating in social
networking so the bargaining power of supplier are low as they are having low power to
work (Lehmann, 2016). As the supplier is using competitive pricing strategy so that they
can sustain in the market in long run.
 Bargaining power of buyers: As the people who are connected with the WhatsApp,
Facebook. Sometimes, this become tough for the individual to get out from the habits of
exploring Instagram so the bargaining power of buyer is not high.
 Threat of substitutes: Due to the changing habits of the people, there is the threat from
the substitute as people can directly go to watch the things.
 Rivalry among existing competitors: Many competitors who are operating in social
media platform which includes the Pinterest, Snapchat, Twitter and so on. Hence, there
is the threat from the competitive companies is somehow high.
TASK D
Examine the concept and model to develop and design the strategic planning.
Ansoff's matrix
This referred to the strategic tool that helps in planning and the manager can get the
strategy for the overall growth of the business. In consideration to Facebook, certain strategies
are illustrated below:
 Product development: In this, company focuses on offering new products in the same
market segment so that Facebook can increase its profitability.
 Market development: In this strategy, organization focuses on offering the existing
products in the new market segment by which Facebook can increase its customer base.
 Market penetration: It is the strategy in which company sell its existing goods in the
existing market as they can reduce the prices so that they can increase the profits of
Facebook.
 Diversification: It is being considered as the risky process in which a new goods is
being launched in the nee market segment. When the Facebook come up with the new
goods and get fails then it leads to have huge loose to them.

The CEO of Facebook that must use the product development strategy in the global
market so that they can become more attractive with the social media and leads them more
profits.
Performance Indicator and key risk indicator
This is vital for the company to evaluate the performance so that they can have the
appropriate change within the organization. Risk is the given factor that is linked with the
venture so it is vital to understand the key indicators that leads to sustain the business in market.
Facebook is using the various performance indicators which are explained as follows:
KPI- It is the performance indicator that help in analyzing the actual and the desired
performance of the company which leads to analyse the actual deviation is being identified by
the manager(Nagy and et. al., 2018). This can be further rectify them. Facebook is operating its
functions to attains the desired goals.
Bench-marking- It is defined as the standards and the nouns that are being formulated
by the organization. It is the foundation of any company. With the appropriate business
functions, this leads to operate the functions in ethical manner.
TASK E
Evaluate the various contemporary strategic issues in strategy by using concepts and model
Resource based view strategy
This basically the managerial framework which is being analyses by the company so that
they can understand the overall competitive advantage by which they can sustain in the market.
Basically 2 type of resources are being used which are tangible and intangible. Tangible are the
resources that includes the equipment, building , machine and so on. On other hand, the
intangible are the trademark and goodwill of the company so that Facebook resources are being
managed by them so that they can have huge profits and revenue.
Corporate level strategies
 Joint Venture: In this, business make the arrangement in two or more business come
together to allocate its resources with the sole aim of completing the specific task. In
relation to Facebook, they can have more benefits which expands its business in the
global market.

 Strategic Alliance: This is defined as the arrangement among the two or more
companies so that they can undertake the mutually beneficial projects as they can retains
its independence.
 Acquisition: As when the organization purchase the share from the other company so
that they can get the control the same which is known as the acquisition. This also helps
in expanding in the large market.
Process and Product innovation Model
 Product: This is the first aspects which thinks about the innovation and the getting
change in its products and services. Moreover, Facebook can apply this strategy to offer
new products(Navissi and et. al., 2017).
 Process: This is defined as the way in which the certain goods that are being made and
delivered to its potential buyer so that they can generate more revenue and competitive
advantage.
 Position: This is the change in goods and services or can be said that potential customer
can target their offering and understand its positioning in the target market.
 Paradigm: This is the change underlying the certain methods which helps the Facebook
to identifying how they have framed the given goods.
Suggestions and recommendations
This is being recommended to the organization that they must operate its business by
using product development strategy so that they can grab the large customer base and leads to
generate more revenue to them. They can further focuses on website customized and effective
business model so that they can rightly operates its business operates on larger scale.
Furthermore, suggested to the firm that they give the guide to operates its website so it become
easy for the customer to get connected with the application and leads to have large customer base
in the target market.

CONCLUSION
From the above report it is being concluded that when the company is operating right
business strategy so that they can expand its business in the international market. With the use if
effective porter's generic and BCG matrix, they can understand the positive impact of various
task. Moreover, the VRIO and PESTLE analysis is being used which impact the external impact
on business. Furthermore, McKenzie 7S and gap analysis is being sued so that they can
understand the capabilities of the business by which they can sustain in the large market.

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