LSC UoS BA Business Studies: Global Strategic Management of Facebook

This report provides a comprehensive analysis of Facebook's global strategic management. It begins with an introduction to the subject, followed by an examination of Facebook's business and corporate strategies. The business strategies are analyzed using the marketing mix, while the corporate strategies are evaluated through the Ansoff matrix. The report delves into the problems managed by the business framework, including external (PESTLE) and internal (SWOT) analyses. It then applies strategic tools such as Porter's Five Forces, Porter's generic strategies, and the BCG matrix to assess Facebook's competitive position and strategic choices. Strategic planning is also addressed with the use of the steering wheel and McKenzie Strategy. Finally, the report offers recommendations and a conclusion based on the findings. The report aims to provide a clear understanding of the global strategic management principles and their application to a real-world case study of Facebook, providing valuable insights for students studying business development and strategic management. The report offers suggestions for Facebook's future strategic direction and concludes with a review of the company's overall performance and prospects.

Global Strategic
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Business strategies..................................................................................................................................3
Corporate strategies................................................................................................................................4
Problems that manage by business framework.......................................................................................5
Strategic Tools.........................................................................................................................................7
Strategic Planning....................................................................................................................................9
Level of strategy....................................................................................................................................10
RECOMMENDATIONS................................................................................................................................11
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Business dealings including global strategic management allow companies to capitalise on
international market potential (Peng, He and Xiong, 2017). It entails relevant concepts for
navigating through the frequently conflicting and misleading massive volume of data,
marketplace, and working crew, all of which is done and valued on a global scale. Mr. Mark
Zuckerberg, the Chief Executive Officer of Facebook, is an American worldwide technological
company established in California. The CEO is an American business leader, internet billionaire,
and philanthropist. This research includes commercial and corporate strategies, as well as
internal and external environment analyses such as SWOT and PESTLE. In addition, strategic
tools such as Porter's five forces and Porter's generic strategy should be used. In addition, use the
BCG matrix to make suitable suggestions.
MAIN BODY
Business strategies
Marketing mix
Product: Facebook, of course, is in the service sector, and as a service, it is a brand name in and
of itself. The company's purpose is to "empower individuals to establish communities and bring
the globe closer together." Facebook's convenient connection provides communication with
neighbors, family members, relatives, coworkers, and colleagues at any time. People use it to not
only write, but also to exchange photographs and videos, which improves communication and
connectedness.
Price: The quantity of services sold social media has grown dramatically in the internet age.
Everyone of Facebook's facilities are offered worldwide, and users from everywhere in the globe
may use world wide web technology to perform them.
Place: Because anybody can set up an account and started utilizing Facebook to interact with
each other, be a socially involved, or for advertising and promotion, price is not a hurdle for a
sizable proportion of Facebook users worldwide. Nevertheless, the firm also provides ad spaces
to advertisers who may use Facebook to promote products and services to a wide and size and
the number.

Promotion: Facebook, the world's most popular social networking site, has today introduced new
advertising methods in the hopes of improving that connection. Facebook's "Facebook Adverts"
system allows companies to create their own profiles, whose users may then suggest to friends,
and serves ads using behaviour targeted approaches. Sometimes contrarians regard networking
sites as a passing craze, but with 2.85 billion annual registered users – including 250 million in
South Asia - it's clear to see why most industry specialists say it will be about, in certain shape or
the other and, for a few generations to follow.
Corporate strategies
Ansoff matrix
Product development: The Company's multiple services are also regularly improved to offer
opportunities. Facebook's online and app software engineers leverage user data to create changes
and new products that are suited to users' needs and desires.
Diversification: It purchased WhatsApp and Instagram in order to achieve dominance on
speech, film, and image social media websites. It bought Oculus VR in order to join the market
for online digital gadgets. Most of these diversification activities complement the company's
renowned welfare care.
Market penetration: It also offers a variety of incentives to companies who are using
Facebook's contextual advertisements. Facebook's leadership is also an able to participate in
social functions to enhance the company's positive appearance. All of the other platform provider
strategies are designed to reinforce Facebook's dominance in the networking field.
Market expansion: It offers a wide range of apps, online services, as well as other
characteristics that draw to young viewers. It will have different payment regulations for
enterprise customers to incentivize them to be using Facebook ads for their business model. Such
initiatives help the sales earnings to expand.

Problems that manage by business framework
External analysis: External analysis aids in identifying the opportunities and challenges those
results of a business, advancement, and fluctuation in either sector or region at the operational
level. PEST Study for Facebook is used for environmental analysis to see how the chief
executive officer handled challenging challenges. The following are PEST Analysis variables
that are relevant to Facebook:
Political: Facebook has a large viewership in the United States and other countries. Facebook, on
the other hand, has been heavily used for political purposes from its creation. Many people
believe it is responsible for starting political disputes all over the globe (Lu, Peng and Xu, 2019).
Mr. Mark Zuckerberg of Facebook, on the other hand, has been planning on fixing the
algorithms to limit the quantity of political knowledge in users' daily streams.
Economic: Facebook includes a large number of employments in the United States and other
nations, and also creates significant money for companies all over the world. As a consequence
of substantial economic progress in many countries, more firms may choose Facebook over other
ad networks, and more consumers may purchase new devices to enjoy Facebook's products. In
case of payment purchasers, the firm is expected to develop too far in a lot of countries.
Social: Facebook has attracted people from all around the globe to together make the process
simpler but less costly in the United States and other countries. Several people’s social ties are
heavily dependent upon that. This dependence, though, is not always helpful, as several studies
have shown that investing too many time online can contribute to depression and a decrease in
genuine friendships. Facebook is facing accusations that its activities undermine its own mission
statement since it focuses too much on generating revenue and bombards users with large
adverts.
Technological: The technological environment in the United States is rapidly evolving.
Facebook's performance is dependent on technology. User - generated content, video watching,
video broadcasts, messaging, and writing are just some of its the most common options.
Facebook, on the other hand, must continually be searching for innovative ways to enhance since
users' demands are constantly changing.

Internal analysis
Internal components of a firm, both language and cognitive, including resources,
infrastructure, and processes, are carefully analyzed during internal analysis at the corporate
level. Mr. Mark Zuckerberg conducted a SWOT Analysis to examine how he handled
complicated situations at Facebook. The following is a Facebook SWOT Analysis:
Strengths:
 Facebook has a good brand image,
which is important for the long growth
and survival.
 The corporation has a market
domination way that makes it to
capitalize from fortified positions.
Weaknesses:
 Facebook is facing backlash for failing
to safeguard users' security, which has
resulted in a drop in ratings in several
parts of the world.
 Advertising is a major source of cash
for the organisation (Zeng, Peng and
Piao, 2018).
Opportunities:
 To compete with large e-commerce,
Mark Zuckerberg can extend
Facebook's current products, such as
streaming media, business applications,
and so forth.
 As technology develops, Facebook may
be able to improve its interaction with
other programmes.
Threats:
 Mark Zuckerberg of Facebook is
subjected to a slew of adverse rules
when conducting business.
 Recently, the EU and the United
Kingdom introduced new digital taxes,
requiring Facebook to pay more tax and
jeopardising its dwindling sales and
profits.
Strategic Tools
Porter’s Three Generic strategies: Specialists apply this method to products or services in every
area, including two companies of all sizes. It describes a company's strategy for achieving a
sustainable competitive advantage in its industry. In terms of Facebook, Mark Zuckerberg is
considering the following strategies are typically:

Cost leadership strategy: A firm's objective of becoming the next cheapest producer in its field
is referred to as cost leadership. With for this method, Mark Zuckerberg may gain a competitive
advantage by manipulating production costs and demanding lower rates, leading to increased
customer base and a beneficial boost to Facebook's long-term viability.
Differentiation strategy: This is a company strategy that gives consumers to something
distinctive, distinctive, and unique from what rivals are providing in the industry. When Mark
Zuckerberg implements the idea, it will insulate the company from competing services by cutting
pricing.
Focus strategy: This is focused on a specialized market's decision of narrow competing
companies. When Mark Zuckerberg implements the plan, he will be able to have a good impact
by building productive partnerships with almost all of his target markets, limiting competitors,
and incorporating knowledge into his services.
According to Porter's Three Generic Strategies, Mark Zuckerberg employs the cost
leadership approach to effect positive change at Facebook by reducing costs associated with
company operations. The method allows the national organization to lower pricing in order to
offer internet services to a global market (Hitt, Ireland and Hoskisson, 2019).
Integration strategy: Mark Zuckerberg of Facebook employs a horizontal integration
approach to purchase or combine with companies operating at a comparable scale in the sector.
Mark Zuckerberg makes a good addition to Facebook's company strategy by generating profits
and scale, broadening business solutions, and lowering competition. Mark Zuckerberg, for
instance, expanded customer base, created scale economies, boosted leadership in the social
media business, and gained new consumers for Facebook with the purchase of Instagram.
Porter’s five forces:
The Porter Five Forces model is a conceptual tool for assessing and improving a company's
competitive results and surroundings. In the case of Facebook, Porter's Five Force model was
utilised to assess the entire challenging market and performance of the corporation in the sector.
These five competitive forces of Porter's Five Force Model are examined in relation to Facebook:

Competitive rivalry: In the social media business, a slew of firms have seized a bigger segment
of the economy, like Pinterest, WeChat, Twitter, and so on. Notwithstanding its dominance in
the networking field, Facebook competes directly. Since of low switching costs, a limited
handful of enterprises, and a reasonable variety of companies, this is the case.
Threat of substitution: Whenever a good or brand with findings also showed satisfies similar
client wants in a different way, an industry's profitability falls (Yu and Peng, 2019).
Replacements in the social media business may have a detrimental influence on Facebook's
commercial success and cause problems in the industry. NextDoor, Vero, Niche Networks,
Diaspora, and other replacement or online social competitors pose a significant threat of
Facebook being replaced.
Supplier bargaining power: In the social media sector, suppliers are important aspects that impact
the inclusion of social networks to a firm's direct marketing offerings. Vendors with technical
influence use their leverage to extract increased prices from organizations in the Online
Information Services market. Supplier bargaining power is considerable for Facebook, which has
a negative influence on the company's total revenue.
Buyers' negotiating power: Purchasers may be a demanding lot. Individuals want to acquire the
best bargains for the smallest amount of money possible. Companies in the social media market
must produce new things quickly to meet the wants of its customers. Buyers usually seek
discounts and special deals on that well items, however if Facebook keeps producing innovative
brands, buyers' negotiating strength may be minimal.
New entrant threat: In the social media market, new competitors bring creativity and radical
innovations, putting more pressure on Facebook to decrease pricing, cut costs, and give
improved service offerings to target consumers. Nevertheless, new competitors to the social
media market face increased brand creation costs, expensive technology capital requirements,
and other factors that might reduce the danger of a new entry on Facebook.
Strategic Planning
BCG Matrix:

Cash cows: Firms having a substantial market share but a moderate rate of growth are
considered cash cows. All of them are typically well-established businesses in their respective
fields. Because these industries are matured, the regressors of extra spending or investment
decisions are often modest. As a consequence, Facebook must invest the income from such
businesses in the faster sections.
Stars: These are firms with a development and maintenance tendency and a high market share in
their area. Star enterprises give not just present cash flow but then also generate new
possibilities. Facebook must make significant investments in these firms in effort to not only
sustain but significantly increase sales and profitability.
Question marks: Question marks are companies having a tiny customer base in industries with
high growth. Question Marks usually indicate a firm's lack of the skills or experience required to
flourish in a growing sector. Facebook must assess if Question Marks signal a potential Star or a
potential Dog. Once Facebook has the capacity to switch the corporation around in the purchase
of new technology, the hiring of worthwhile human resources, or the creation of enhanced
processes, company should use the quote mark. Even if a firm's analysis concludes that
participating in a question mark is not feasible with present funding, Facebook should abandon
the industry and concentrate its efforts on star firms.
Dogs: Dogs are low-growth businesses with a large customer base that compete in specialised
industries. Whereas if total revenues is similarly minimal, Facebook should just exit such
businesses. Nevertheless, if earnings are high, a corporation may decide to maintain a good
relationship. Moreover, if the company is critical to Facebook's other activities, it must continue
to exist even though it is making losses.
Level of strategy
The McKinsey 7s model is used by Facebook to take corrective measures and conduct on a
timely manner, implement effective implementation practises. Facebook focuses on the 7
variables listed in the plan to ensure that over performance standards for the offerings are
continuously maintained and improved.
Strategy: The broad business plan and clear plan of Facebook are clearly defined and answered
all questions and consumers. It helps the organisation manage productivity, guide activities, and

establish diverse ways that are consistent with the company strategy. Additionally, the
development and dissemination of the business model increases the visibility of Facebook's
operations and combines the company's obligations and actions.
Structure: Facebook features a flat organization structure that is supported by flexible and
adaptive groups. Consumers feel empowered, and they do have greater availability, with lesser
organizational barriers among them and more visibility to top management and leadership.
Additionally, the flatter, tougher Facebook allows for speedier decision-making and increases
work engagement with the company.
System: Facebook examines its processes on a constant schedule utilising the constraints it has
imposed. Every progress report is ongoing. The bulk of this would be performed through
observation and informal conversation. Employees and overall career bureaucrats obtain casual
feedback in real time as required. Professional annual performance is also conducted 6 months or
yearly, depending on the program and its requirement. It is an organised approach used by senior
manager has to make sure the identification of effectiveness and the development of approaches
to overcome them.
Shared values: Facebook encourages a friendly atmosphere that values diversity. Since FB has a
global presence with production operations in numerous countries, the company guarantees that
its company culture is inclusive of diversity and that business measures to combat bias are in
existence. The business culture at Facebook also encourages innovativeness through empowering
individuals and institutions to thrive freely, permitting individuals to good their vocations and
personalities. Lastly, Facebook's company world is distinguished by supervisory assistance,
which aims to engage employees and improve performance by stressing accessibility and
openness.
Style: Facebook's management style is participative. To use a participative leader behavior, FB
may engage and incorporate its employees in decision-making processes and decisions made. It
also allows the management to connect and work with other administration departments on a
periodically in order to predict and handle any potential conflicts, as well as obtain advice on
strategic actions and actions. For its collaborative practice, Facebook is capable of increasing

worker excitement and foster organizational participation and accountability across stakeholders
and community.
Staff: Facebook employs a large number of people throughout its worldwide markets.
Employees for multiple job kinds and specializations are recruited both domestically and
globally, depending on the level of requirement and expertise required. As a consequence, it is
apparent that Facebook employs people who are skilled in their various work duties and
vocations. Every employee receive on-the-job training to become acquainted with the
organisation and its goals. Either while out of the curriculum is available for skill growth.
Employee skill sets at Facebook are critical to meeting the fund's company's goals since all job
roles and divisions are organized to support the achievement of organizational goals.
Skills: Facebook prioritizes the development of its employees' skills and capacities. It conducts
numerous trainings and seminars for its personnel, both internal and outside run, to provide
opportunities for advancement and development. Facebook prioritizes career advancement for its
employees and works with them just to accomplish it.
RECOMMENDATIONS
Mark Zuckerberg believes that all core business should be strictly monitored. It is
recommended that they achieve a greater understanding of changing market dynamics thus that
they can also alter their company operations appropriately. Mark Zuckerberg must abide by a
slew of government regulations in the countries wherever he handles things. Market competition
should be recognised by the CEO, who must respond with a variety of strategies.
As per the Basic Data Protection of the United Kingdom, it is illegal for firms to use private
information of users to outsourcing outside their consent, thus Mark Zuckerberg should be
worried regarding privacy related infringement. This strategy might lead companies in legal
problems, tarnishing their brand's reputation.
It has been reported by Mark Zuckerberg that they utilise strategies to persuade more
individuals to be using Facebook. Because more individuals use Instagram, Whatsapp, and Snap
Chat, Facebook's credibility is eroding. Facebook, but from the other side, has acquired
Whatsapp and Instagram, but demand in these services is waning. The corporation should take
the opportunity to bring new products and marketing strategies that are specific to different

nations. It is proposed to prevent accessibility to fake stories, which can propagate inaccurate
info across the nation and harm a professional image.
CONCLUSION
As per the above report it has been concluded that Organizations can use global strategic
management initiatives to take advantage of global competition possibilities. To understand their
corporate setting, successful managers build methods and software. Understanding the intricacies
of governmental institutions, relevant stakeholders, and changing needs aids management in
successfully allocating capital to preserve and expand their firms.

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