Comprehensive Analysis of Global Strategic Management for Facebook

This report provides a comprehensive analysis of Facebook's global strategic management. It begins with an executive summary and introduction, followed by an examination of Facebook's business and corporate strategies, including Porter's generic strategies and the BCG Matrix. The report then d...Read More

Global Strategic
Management

Executive Summary
Global business means that kind of organization that has been operating all over the
world with motive to generate profit. Porter's generic model and BCG Matrix are used for
framing strategies that makes contribution done with positive outcomes of business. Then comes
PESTLE analysis that helps upon understanding external factors impacting growth of business
on large scale. Further, Mckinsey 7s model and gap analysis are those models that are applicable
for understanding about performance of an organization with various components of business
and skills within an organization.

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
Describe the strategic tools to enhance the overall organisational performance....................6
TASK D...........................................................................................................................................9
Examine the concept and model to develop and design the strategic planning.....................9
TASK E..........................................................................................................................................11
Evaluate the various contemporary strategic issues in strategy by using concepts and model11
Suggestions and recommendations ...............................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Global business means those aspects which is related to international trade and global
venture that helps in making business operations conducted at global level. The selected
organization for this report is Facebook that is an American social media and networking
services which is being managed and founded by Mark Zuckerberg in February 4, 2004. This is
an global business entity that has been operating business all over world for connecting people
with each other. The respective report has been analysing corporate strategies based upon
making positive contribution within an organization. Also explanation over internal and external
business environment has been explained. Further, strategic tools has been explained with over
all performance within an organization which examines about model and development related to
strategic planning. Then it covers about corporate level strategic plan helping in evaluating about
organizations working for an organization. In then end recommendation has been provided with
suggestions.
MAIN BODY
TASK A
Examine the business and corporate strategies about the positive contribution to the company.
Business strategy
These are based upon actions that which is based over managing organization which is
used for planning in order to achieve goals and objectives more effectively. These are based over
directions which has to be followed by an organization(Scholes, 2015). These are based over
general direction set in order to make organization run effectively. In relation to Facebook
analysis upon strategies related to global business has been conducted as follows:
Porter's generic strategies
These are those models which is used for providing benefits over making identification
done in order to meet competition edge existing within market. There are mainly three kinds of
strategies which has been explained in relation to Facebook.

Figure 1, Porter's Generic Strategies, 2007
 Cost leadership: This strategy is used by customers for looking over prices and making
better services developed by Facebook(Köseoglu and et. al., 2019). It provides different
offers in relation to its subscription over internet.
 Differentiation: The strategy makes organization offer innovation and advance products
to its customers making uniqueness developed over brands that has been operating with
social media and networking business. Facebook launches product like Instagram that has
made success achieved for an organization.
 Focus: This strategy develops focus upon various market segments in relation to cost and
differentiation focus. Facebook should offer over services with low price making
innovation developed within specific group.

The BCG Matrix Model
Boston Consulting group is an growth sharing model that is used for giving graphical
representation over product and services within an organization leading towards directing for
deciding about selling and investment. In relation over Facebook certain category has been
discussed as follows:
 Star: This category is based over products that helps in making high growth and market
share developed. In context to Facebook, Instagram over star products that holds high
market shares(Ghezzi, 2017). As per the category growing SBU has double user which is
based over 700 million active users on monthly basis within 2 years.
 Question Mark: In has been holding market share which makes growth within market
possible and Facebook has Oculus which is virtual reality over hardware and software
products. Huge investment is based over making research and development done which
has lead towards getting success. According to report of NYTimes, Zuckerberg plans
over making investment of $ 3 billion in the coming decade for increasing its user
percentage.
 Cash Cows: These leaders has been generating with more cash and has been consuming
high market share with slow- growing market. WhatsApp is based over category over
investing over demand that is necessary.
 Dogs: As per the category which relates over having low market growth and low market
share. This message makes outcomes achieved over using WhatsApp and the app like
messenger seems useless.
Vertical and Horizontal Integration Model
Vertical Integration is the strategy which helps an organization to operates its operations
by taking the direct ownership of certain stages of production rather than relying on the suppliers
or the contractors. Facebook can use such integration by which they can ensures the business
operations is being held within the company itself. It can be done by doing backward integration
in which the ownership controls the products in the early stage of supply chain. Whereas the
forward integration expands by accessing the control of the distribution process for their finished
goods. This strategy will help the Facebook to overlook its supply chain in an appropriate
manner.

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 mentioned below: This means those framework which is based upon
analysing of external factors impacting overall functioning of business. In context of Facebook it
has been explained as follows:
Figure 2, Scanning the Environment: PESTEL Analysis, 2016
 Political factors: Facebook is leading communication which has been used by politicians
over developing ideas and vote for them. This makes targeted audience promote
messages over Facebook and political leaders requires to be focus on Facebook.
 Economic factors: This increases business participation helping over advertising
customers with references and contribution over brand value of Facebook which is worth
47.3 billion.

 Social factors: Facebook has been helping individual to stay in touch with friends,
relatives across the glob with the help of internet. This becomes socializing and making
small business promote over product as well.
 Technological factors: Facebook has been using variety of service programs language
and tools making infrastructure develop unique technology. They are using LAMP
(Linux, APache, MySQL, PHP).
 Legal factors: There are different kinds of laws which has been used for controlling
overall working of social media platforms(Drnevich and Croson, 2019). Facebook is
following communication and criminal justice which helps upon controlling smart phones
of an individual.
 Environmental factors: Facebook has helped upon changing people lives which makes
opportunity gained over opportunities which makes socialization with other people
making doubt calling them over knowing the news.
VRIO framework
The framework is based over abbreviate value, rarity, immutability within an
organization. It is used within an organization for analysing internal capabilities that is related to
resources of themselves. In relation to Facebook various factors has been discussed as follows:
Figure 3, VRIO: From Firm Resources to Competitive Advantage, 2016

 Valuable: Facebook is based over global market which is valuable over various kinds of
perspectives within an organization making revenue and profit achieved with
competitive advantage over rivals in market. The benefit of top leading brand within the
world is hold by Facebook.
 Rareness: Facebook has been operating on large scale which make large audience and
financial strength observed over resources within an organization. This makes operations
of business done on large segment and more revenue generated. It leads upon making
profit ratio increased more effectively.
 Imitable: Facebook is having resources that is based over technological innovation that
helps more revenue generated. The brand awareness of Facebook is more which cannot
be copied by any other phone till now. This makes Facebook more successful in nature.
 Organization: This is an important organization which is based over organizing of
resources in effective way. The organizational culture and human resource management
of Facebook has been organizing proper hierarchy over recruiting person and provide
them better working conditions.
TASK C
Describe the strategic tools to enhance the overall organisational performance.
Gap Analysis Model
This model is used for helping in comparing of actual performance which makes desired
results achieved(Hoejmose, Brammer and Millington, 2020). The method has helped over
identifying strategies, structure, capabilities, technologies, skills helping in meeting out
strategies, structure, capabilities, technologies , skills helping them over meeting goals and
objectives of an organization. In relation to Facebook, McKenzie’s 7S model and Ansoff matrix
are applied over gap analysis making making desired performance achieved which has been
discussed as follows:
McKinsey's 7S model
This framework over helping and understanding about organizational design by
identifying with seven internal elements of Facebook that has been discussed as follows:

Figure 4, McKinsey 7S Framework, 2018
 Strategy: The plan has been formulating within an organization that makes competitive
advantage achieved(Maté, Trujillo and Mylopoulos, 2018). Facebook does not have
appropriate strategy making issues solved with customer dissatisfaction with revenue.
 Structure: This is based over explaining about hierarchy making business unit and
department operating. Facebook does not have proper structure leading towards reducing
efficiency within an organization.
 Systems: This is based over process making aim to complete making operations
performed more effectively. It helps upon ensuring better system manage by
implementing any organizational change making Facebook sustain market more
effectively.
 Skills: This is based upon abilities of employees that has been working for Facebook and
allowing employees capabilities improved with complex situation.

 Style: In this style it has been followed by leaders of Facebook, Mark Zuckerberg has
been following transformational leadership style which makes them aggressive and
assertive over change.
 Staff: These factors is based over making number of employees working with Facebook.
This is based upon training and reward management for them.
 Shared values: This is the core of this model which includes the norms and standards
That must be followed by the Facebook to understand the behavior of employees.
Porter's five forces
This is strategic framework which helps in making strategic decisions formed over
analyzing future outcomes. In context of Facebook various aspects has been discussed as
follows:
 Threat of new entrants: As per this high threat over new firms as over Facebook leads
upon making organizations operate at global level which is not possible for new investors
making investment done over operations on global scale which is not possible for new
investors.
 Bargaining power of suppliers: There are various firms that has been operating within
social media and networking making organization like Facebook leading organization
within world that has been operating over different products included with Instagram,
Messenger, WhatsApp. Thus bargaining power of suppliers tends to develop CEO for
making competitive pricing with services achieved more effectively (Köseoglu and et. al.,
2019). Thus, the bargaining power of supplier is tend to know because the CEO is giving
competitive pricing toward services by which they retain with them in long run.
 Bargaining power of buyers: As of now individuals are connected with Instagram,
Facebook and WhatsApp it become very difficult for an individual to get out form things
like making reels and exploring Instagram all day which makes bargaining power of
supplier high within market.
 Threat of substitutes: There are substitute which is related with social media platforms
and social networking as people makes direct contact possible over threat and substitute
for Facebook changing habits of people.

 Rivalry among existing competitors: There are many competitors who are operating in
social media platforms that includes Twitter, Snapchat, Pinterest and so on. Thus, the
threat from competitive companies is high as the rivals can change their services and
operations as for the current trends of the market
TASK D
Examine the concept and model to develop and design the strategic planning.
SWOT Analysis
Strengths Weaknesses
 Facebook holds segregation with
different applications and online sites
 The organization with the apps has
been providing best experience to
users which makes it top brand all
over world(Scholes, 2015).
 The biggest weakness posses by
Facebook is its CTR advertisement.
 The organization lack customized
websites that has made them weak
within market.
Opportunities Threats
 As people has been increasing the use
of Facebook has increased over
mobile phones.
 The are having diversity over sources
of revenue and makes Facebook open
to marketplace.
 Increase in number of mobiles over
internet users which become threat
regarding Facebook.
 They are creating weak business
model helping in sustaining within
market.
Ansoff's matrix
The model is strategic tool helping in planning regarding manager is applied and right
strategy over growth is developed. In relation to Facebook various strategies has been discussed
as follows:

Figure 5, Strategic Growth with the Ansoff Matrix
 Product development: This strategy is based upon introducing of new product within
market in order to attract customers of existing market(Oldman and Tomkins, 2018). This
makes Facebook uplifts revenue
 Market development: This strategy has been introducing over existing product within
market over uplifting customer based of Facebook. This helps upon increasing customer
base for Facebook. It increases profitability for an organization.
 Market penetration: The strategy within an organization used for enhancing shares
over existing products within market. An organization over reducing prices over offering
complimentary services for increasing shares within market.
 Diversification: This based over risk strategy within which new product is launched in
new market. Facebook has come with new product and leads upon upon huge loss for an
organization. It helps in making product diversified as per market and its trends
From the above of discussion, it's far being stated that The CEO of Facebook need to use product
improvement method withinside the worldwide marketplace as humans are getting extra
appealing with the social media which assist them to generate extra revenue. Performance
Indicator and key danger indicator: It is vital for the corporation to investigate its overall
performance so that it will make the specified alternate in the organization(Moseley III, 2017).

Risk is the thing that's related to the enterprise so it's far vital to investigate the important thing
indicator which assist them to keep its enterprise in huge marketplace segment(Lehmann, 2016).
In context to Facebook, there are signs which assist in studying the overall performance and the
danger related are given below:
 KPI- It is the overall performance indicator device which assist in studying the real and
the preference overall performance of the business enterprise in order that deviation may
be recognized via way of means of the supervisor and they could in addition rectify them.
This allows the Facebook to function its characteristic to reap the preferred outcome.
 Bench marking- It is refers back to the requirements and the nouns that's being
formulated via way of means of the business enterprise and those are the inspiration of
any companies Which assist them to carry out its enterprise in the proper way and acquire
a better profitability with inside the moral direction.
TASK E
Evaluate the various contemporary strategic issues in strategy by using concepts and model
Resource based view strategy
It refers back to the managerial framework this is being accessed with the aid of using the
enterprise with a view to apprehend the strategic sources of the organization with a view to get
the Competitive gain and huge with inside the market. Basically, there are two sorts of sources
which are tangible and intangible. Tangible sources consist of the constructing land machinery,
system and so on. Whereas the intangible sources consist of the exchange mark and goodwill of
the organization. In context to Facebook, those sources are controlled with the aid of using them
that will guarantees the better commercial enterprise operations and sales to them.

Figure 6, Resource Based View, 2013
Corporate level strategies
These are the techniques that's utilized by the chief of the organization to define, define and
gain the general intention of the organization (Langabeer and Champagne, 2016). In context to
Facebook, there are positive techniques with the aid of using which, they could extend its
commercial enterprise with inside the worldwide marketplace which can be defined as follows:
 Joint Venture: It is the commercial enterprise association wherein the 2 or greater-
commercial enterprise come collectively to apply its assets for the only intention of
accommodating the unique task. In context to Facebook, they could get greater
advantages to extend its commercial enterprise with inside the global marketplace.
 Strategic Alliance: It is the association among two or greater groups a good way to
adopt a collectively useful challenge which keep its independence it is and it's miles
much less complicated and much less binding than the joint venture. Acquisition: When
the organization buy the percentage of any other organization to benefit the manipulate

over it then it's miles known as acquisition of firm. This allows the small commercial
enterprise to get extend with inside the big marketplace and generate revenue.
Suggestions and recommendations
It is suggested to the agency to apply the Product improvement method on the way to
boom their sales and similarly it additionally advised to get the get entry to have custom
designed internet site and robust enterprise version on the way to maintain with inside the
marketplace for lengthy duration of time(Lehmann, 2016). Moreover, it's miles advised to the
agency to have smooth accessibility and the recommendations and the recommendations to apply
their software on the way to boom the patron base and persevering with to be the main agency in
social networking.
CONCLUSION
It is concluded from the occasion document that with out adopting a specific approach a
commercial enterprise can't make bigger its commercial enterprise with inside the worldwide
market. With the evaluation of porter's familiar and BCG matrix, an organization helped
themselves to border the strategic to have the high-quality results. Pestle evaluation and VRIO
version is getting used to investigate the effect of outside surroundings on the general capability
of the commercial enterprise. Moreover, McKenzie 7S and hole evaluation version is being
utilized by the business enterprise with a view to examine the assets and the skills of the business
enterprise. SWOT evaluation and Porter's five forces is getting used to border the approach
making plans for the commercial enterprise. Key overall performance indicator and bench
marking are the signs to investigate the overall performance and chance for the business
enterprise.

REFERENCES
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