Analyzing Facebook's Strategies: A Global Strategic Management Report

This report provides a comprehensive analysis of Facebook's global strategic management, examining its business and corporate strategies through models like Porter's generic strategies and the BCG Matrix. It assesses the internal and external environments using PESTLE and VRIO frameworks, detailing how Facebook manages complex challenges. The report also explores strategic tools such as the Gap Analysis model and McKinsey's 7s model to enhance organizational performance. Furthermore, it evaluates contemporary strategic issues and offers suggestions and recommendations for Facebook to improve its overall performance and maintain a competitive edge in the global market. This document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Global Strategic
Management

Executive Summary
Global business is the type of company which is operating its business across the world
and generating more revenue. Porter's generic model and BCG Matrix is being used to frame the
strategies which contribute to the positive outcome of the business. Pestel analysis and drive and
various model is being used in order to analyze the impact of external environment and the
resources of the company. Moreover, Mckinsey 7s model and gap analysis model is being used
in order to understand the actual end desire performance of the company by assessing the various
components of the business that includes structured style skills of the company.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK A...........................................................................................................................................1
Examine the business and corporate strategies about the positive contribution to the company.
......................................................................................................................................................1
TASK B...........................................................................................................................................4
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO. ...........................................................................4
TASK C...........................................................................................................................................6
The explanation of major strategic tools which could be applied by the organization to
increase overall performance.......................................................................................................6
Examine the major concepts and models 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 ...............................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global business means international trade aspects which is used for developing global
venture which makes operating of business across the globe. This exchange of goods and
services is based upon long time. The selected organization for this report is Facebook which is
an American social media and networking services that has been set-up on 4th February, 2004.
The organization is managed by Mark Zuckerberg. It is known for making people connected
with each other through global platform. The report relates upon analysing corporate strategies
based to make positive contribution within an organization an access the internal and external
business environment. Further, the report explains about strategic tools which enhances
performance of an organization by making examination of models that is used for developing
strategic planning. Then it covers corporate level strategy that makes evaluation of strategic
planning possible. In the end the report deals with corporate level strategy for evaluating
working of an organization necessary with suggestions and recommendations.
MAIN BODY
TASK A
Examine the business and corporate strategies about the positive contribution to the company.
Business strategy
This is based over actions that is required to be taken by manager of an organization in
order to implement plan which leads over making goals and objectives set by an organization
achieved(Abdulmuslimov and et. al., 2021). In relation to Facebook, certain concept and model
used for analysing strategies has for global business has been explained as follows:
Porter's generic strategies
The model is based upon identifying ways for meeting competitive advantage within
large market. There are basically three kinds of strategies that has been explained regarding
Facebook as follows:
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Figure 1, Porter's Generic Strategies, 2007
 Cost leadership: This strategy is used by customer for looking the price which makes
better services with Facebook that makes offers upon subscription developed by usage of
Internet.
 Differentiation: The strategy of an organization makes innovation and advancement
developed within product to its customers(Abdulmuslimov and et. al., 2021). This makes
uniqueness developed with other brands making social media and networking of business
possible. Facebook make product launch possible of Instagram that lead upon success
with unique features achieved.
 Focus: This strategy makes focus upon specific market segment which makes cost focus
and differentiation focus done. Facebook is based over offering services with lower price
and innovative features with different group of people.
The BCG Matrix Model
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Boston Consulting Group is the growth share model which is used for making graphical
representation done about product and services of an organization (Abdulmuslimov and et. al.,
2021). The organization with direction to help upon deciding should be kept for selling and
investing. In relation to Facebook, these category has been discussed as follows:
 Star: In this category the given product makes high growth with market share possible.
In relation to Facebook, Instagram is the star product that holds high share within market.
As per, the current SBU the user base has reached to 700 million active users on monthly
basis in 2 years which is double.
 Question Mark: It is based over products and services which has low market share.
Since the leading growing market Facebook has Oculus that is virtual reality of hardware
and software products. Huge investment is required within research and development of
this product yet no certainty is their for its success. As per the report of NYTimes,
Zuckerberg plans to invest $ 3 billion over the next decade to bring more users to the VR.
 Cash Cows: They are leaders generating more cash than consumption as they attain high
market share within slow-growing market. WhatsApp comes in this category due to
unnecessary investment deemed within it.
 Dogs: It is the category in which the products is having low market growth and low
market share. For this, messenger is the one who comes in this category, since everyone
is using WhatsApp and the app like messenger seems useless.
Vertical and Horizontal Integration Model
Vertical Integration means strategy which helps an organization for operating direct
ownership at certain stages of production instead of showing trust over suppliers and contractors.
Facebook uses intergradation that makes business operations held within organization. As per
forward integration expansion is done by accessing control over distribution process of finished
goods. This makes Facebook overlook supply chain in effective manner.
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TASK B
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO.
PESTLE analysis
PESTLE analysis is an important framework which is used for analysing external factors
effecting functions of business. PESTLE analysis has been conducted regarding Facebook as
follows:
Figure 2, Scanning the Environment: PESTEL Analysis, 2016
 Political factors: These are factors that is based over policies formed by
government(Godina and et. al., 2018). Since Facebook of an leading communication
which has been used by politicians in order to attain political leadership within country.
 Economic factors: These factors relates with economic stability that helps in developing
profit and venue for an organization. Facebook is able to makes its brand value worth
47.3 billion$.
 Social factors: The factors relates with culture and trends existing within customers of an
organization. Facebook has been helping individuals connect with friends and relatives
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all over the world. Thus the organization is able to understand its customers needs
making its capture large base of customer.
 Legal factors: There are various legal regulations which has been developed by
government of a country in order to make organization run as per its legal
framework(Holubcik and et. al., 2020). Facebook being an social media organization
must follow communication and internet norms for avoiding any kind of legal trouble.
 Environmental factors: Facebook has been helping people to change their lives which
makes opportunities developed for creating environmental rawness within society. This
leads upon attracting social workers with Facebook helping in enhancing its value within
market.
VRIO framework
This framework relates with valuable, rarity, immutability and organization. This is used
by an organization to analyze about capabilities of available resources. In relation to Facebook
these factors are explained as follows:
Figure 3, VRIO: From Firm Resources to Competitive Advantage, 2016
 Valuable: Facebook has been making global market cover valuable aspect of an
organization that makes revenue generated with profit and competitive advantage from its
rivals. This helps in making brand value increased all over the world.
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 Rareness: Facebook has been operating on large platforms that makes large audiences
captured with financial strength that is rare resource of an organization. This makes
operations of business conducted on large segment making revenue generated effectively.
 Imitable: Facebook is having resources that is based upon technological innovation
helping in generating more revenue. The brand awareness of Facebook is high that cannot
be copied by any other device.
 Organisation: This is important for an organization to use resources in optimum manner.
The organizational culture and human resource management on Facebook makes
hierarchy within recruiting person with better working conditions.
TASK C
The explanation of major strategic tools which could be applied by the organization to increase
overall performance
Gaps Analysis model
This is one of the most appropriate model which helps in increasing the performance of
company. The Gap analysis model is used and applied by Facebook in order to achieve
competitive advantage in a set period of time(Kumar, Pandey and Mukherjee, 2021). The
application of McKinsey's model and Ansoff matrix are two major approaches which can be used
by Facebook to enhance quality working and management. The analysis of major models is
mentioned below:
McKinsey's 7s model:
The McKinsey's model is helpful in development of organization's design which helps in
desired success. The application of McKinsey's 7s framework is mentioned below:
 Strategy- Strategy is considered as key approach which helps the organisation to plan for
future. With the support of strategies, Facebook can minimise risk associated with the
operations in a precise and systematic manner. The strategic management of a company
is the major body which is responsible for making professional strategies.
 Structure- In the functioning of a business, structure is considered as the main element
which defines working hierarchy of the organisation. Facebook has adopted functional
business structure in order to perform its key operations in a well defined manner.
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 System- It is essential role of higher level authorities of Facebook to develop effective
system in order to increase chances of development. The system is the whole process
which is followed by company to develop effective approach at the marketplace.
 Skills- These are the most precious elements in the working of a company and it is major
role of management to develop skills in employees. Skills are the strengths and
capabilities of employees which makes them more performance oriented.
 Style- This refers to the management style which is adopted by authorities of Facebook to
control employees(Meral, 2019). Facebook follows administrative approach in
controlling key operations of the company for developing a more effective approach in
dealing with different challenges and consequences.
 Staff- Staff are referred to employees and they are also useful resource for the
organisation in performing any task or function. In the recent times, importance of skilled
staff has increased significantly. Shared values- These are the shared attributes amongst employees in order to perform
key operations in a more developed way. The shared values should be positive in an
organisation to develop key actions and goals.
Porter's five forces model
 Bargaining power of buyers- The bargaining power of buyers is related to the capacity
of customers through which they can negotiate. In the case of Facebook the bargaining
power of customers is high as there are many social media platform based companies
present in the marketplace.
 Bargaining power of suppliers- The bargaining power of suppliers in the case of
Facebook is low. The outsourcing companies which provides essential services to
Facebook are low in number all over the world.
 Competitive rivalry- Key competitors of Facebook are Twitter, Instagram and LinkedIn
and these companies are giving tough competition to Facebook. It is essential for
Facebook to develop effective planning and strategies to face the competitors.
 Threat from substitutes- It is most crucial for a business entity to analyse threat from
substitutes in order to lead the competition. The Facebook company is facing less threat
from substitutes in order to develop more focused approach.
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 Threat of new entries- New companies can also enter in the field of social media and
give tough competition to Facebook. It is most crucial for the companies to analyse the
threat from new entries in order to gain more effectiveness in its functions and prepare
for the same.
TASK D
Examine the major concepts and models to develop and design the strategic planning
SWOT analysis
The SWOT analysis is one of the major tools which could be used by companies to gain
chances of more success. Facebook company and its SWOT analysis is mentioned below:
 Strengths- The strengths are major capabilities and competencies of a business firm
which makes it unique at the marketplace. Major strengths of Facebook company are its
human resource management and marketing department. These strengths helps in
employee performance development and sales turnover increase.
 Weaknesses- In the working of Facebook, weaknesses are key issues and challenges that
could be faced by different companies in order to develop systematic approach
(Stamevska and Stankovska, 2018). The major weaknesses of Facebook company are its
strategic management and planning department.
 Opportunities- The opportunities are golden chances of a business firm which creates
more chances of dominating the marketplace. Growth and expansion at the marketplace
are major opportunities available to Facebook company.
 Threats- Threats are the major hurdles and obstacles faced by Facebook which could
negatively impact on the functions. It is major role of Facebook to eliminate threats by
using a professional approach. In order to sell the products by eliminating threats there is
a need of experts in the business departments.
Ansoff matrix
Ansoff matrix is a major organisational model which can be applied by company to gain
market development. The explanation of Ansoff matrix in context of Facebook is mentioned
below in order to gain competency edge at the marketplace:
 Product development- The product development approach includes, development of new
products in existing marketplace. It is major role of marketing management to focus on
product development in order to gain effectiveness in key operations.
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