Global Strategic Management: Facebook's Strategies and Challenges

This report provides a comprehensive analysis of Facebook's global strategic management, examining the business and corporate strategies employed by CEO Mark Zuckerberg. It delves into the external and internal environments using SWOT and PEST analyses, highlighting key strengths, weaknesses, opportunities, and threats. The report explores the strategic tools, such as Porter's Five Forces, used by Facebook to enhance performance and addresses strategic issues like hate speech and fake news. Furthermore, it outlines strategies built by the CEO to foster innovation and productivity within the firm. The report concludes with recommendations for addressing the identified strategic issues and ensuring Facebook's continued growth and success in the global market.

GLOBAL STRATEGIC MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................3
MAIN BODY...................................................................................................................................3
Business and corporate strategies.................................................................................................3
External and internal environment analysis.................................................................................4
Strategies or tools used by CEO of Facebook..............................................................................6
Strategies build by CEO of Facebook..........................................................................................7
Strategic issues faced by firm.......................................................................................................7
Literature Review.........................................................................................................................8
Recommendations........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES...............................................................................................................................11

INTRODUCTION
Global strategic management is carried from the combination of the globalization, it is said as the
strategy that a firm use whenever they want to expand their business globally, in the simple form
it is defined as the strategies that were pursued by the firm when they are thinking of expanding
the business, it is also said as the elaboration of the plan that a firm uses to achieve the targeted
growth beyond the borders. Facebook is a social media networking firm usually addresses in
every country, it is owned by Mark Zuckerberg and is established in the year 2004. This study
report will discuss the strategic styles that were being used by the CEO of Facebook Mr. Mark
Zuckerberg it will show the firm and corporate strategies, analysis of external and internal factor,
strategic models used, strategic planning and level of strategies which were done or planned by
the CEO of the Facebook.
MAIN BODY
Business and corporate strategies
Mainly the Mark Zuckerberg have used the three strategies on Facebook which helped out the
Facebook to grow at the speedy rate, all of these strategies were made by the CEO of the firm,
CEO has used these strategies for the effective functioning of the firm all of these strategies are
as follows:-
Have a belief :- when the Facebook has updated a new change, it has made them difficult to earn
the same amount or higher amount of profit because of the customers doesn't like or not
accepting the change which is when the firm have moved out of news feed and allowed a feature
to watch the activities of the friends it is surely not accepted by huge number of people's with an
open arm but still the company was on belief that it will happen and a day came when it
happened people started the liking the new feature and loved posting their activities there.
“Having belief and getting to know that when they will help the firm in growth may assist the
firm to decide when to listen to the feedbacks and when to went out of critics' said by Mark
Zuckerberg.
Test and Test and Test :- Facebook never adapt a strategy or make any change just by guessing
or forecasting or predicting its result, the Zuckerberg have said that the Facebook never guess
what they do is test the changes takes surveys and try innovations through tests so that the
customer can have the best experience, for example — on a day, Facebook has started 10,000
variety of social media network to get to know whether how many numbers of people's are

connecting and sharing in bulk, along with that how much revenue or the income the site is
earning for that, “Do something from which the firm can receive up the feedback so that the
organization can know whether they are going in right direction or not” said by Mark
Zuckerberg.
Creation of structure for innovations :- Innovation is very necessary to make the change in
users daily interaction with app or site, for this the firm should provide training to its employees
and set the disciplinary rules for pitching up the new ides. When the world of technology
changed from computers to mobile phones Facebook tried to develop the mobile Facebook which
works the same as the web that the firm is familiar with . To build or establish the simple mobile
app of Facebook the CEO has taken a hard decision by saying that there will be no new
innovations till 2 years of building the mobile app (VAVEROVÁ, 2021).
External and internal environment analysis
To get to know about both of the environment the SWOT and PEST analysis is very necessary
SWOT ANALYSIS
STRENGTH
 The Facebook is growing by billions of
active number of users
 Better customer services
 Better experience of the users
 Timely innovations
 Adaptation of technology
 Understanding the needs of the
customer's
 Uniting different applications and
websites
WEAKNESSES
 Weak click through rate of ads on site
or application
 Lacking in some of the latest features
 Looking more on other department
than Facebook
 Advertisement is the only source of
income
 Weak protection policy
 Lacking in customizations
 Attitude towards the privacy of the
users
OPPORTUNITY
 Increase in the users' day by day
 Expansion from us to India to china and
further in more countries
THREAT
 The latest technology adaptation and
updates made by other social media
networks

 Can have a variety of source of revenue
 Made own market place
 Started selling or purchase of goods by
being an intermediary
 User blocking ads through extension
 Slow growth of advertisement
 Lack of people suffering Facebook
 Identifying thefts
PEST ANALYSIS
This analysis of external environment shows the basic need for the adjustment in the rules to
make sure the services of Facebook remain (attractive) than it's competitors like snap, twitter etc.
Political factor :- The business of Facebook is totally linked with the political factors , it has the
major influence by the political factors these factors are - the stability of politics in the developed
countries, government support in the globalization both of these factor can be taken as an
opportunity the political factor doesn't only provide the opportunity it gives threat as a return gift
— political barrier in the Chinese market, action taken on online data (Teoli, , Sanvictores,. and
2019).
Economical factor :- Economic conditions of the country shapes the growth of Facebook in
different ways as the economical factor provides all over opportunity in the world of business
factors that affect Facebook is as follows:- increase in the stability of the countries that are
developing like India, rapid growth in economy of the developing countries, increase in the
disposable income of an individual (Laksham, 2019.).
Social factor :- Social factors include the particular culture of the country, understanding which
will give only the advantages and opportunities to the firm the social factor that will affect
Facebook is as follows:- increase in the need of high quality services, increase market buying
through web, increase in the support for the corporate social responsibilities
(Jamjongdumrongkit, , 2019).
Technological factor :- Facebook can be said as the king of technological market but still some
factors of technological can prove threatening to the firm these are- diversification of the retail
firms online, increase in the number of social media's. And there some technological factor that
may provide opportunity it is increase in the use of mobile devices (Real, 2021.).

Strategies or tools used by CEO of Facebook
Michael porter's theory which is porter's five forces models used on Facebook to enhance the
performance of the firm. Porter's five forces includes five models these are competitive rivalry,
threat of new entrants, threat of substitutes, bargaining power of buyers and bargaining power of
suppliers. The brief discussion of all these are as follows:-
Competitive rivalry : Even the organization is holding a great position in market it still gets
affected by its competitors, this model helps in knowing how competitor affect the business
environment, some factors that lead the competitive rivalry force to become moderate against the
firm are — low cost of switching, moderate range of organizations, low number of firms (Sun,
2020).
Bargaining power of customer's
The users put pressure on the firm in regard with what they want from the firm, there are some
external factors that lead to increase in the force of customer bargaining power of the firm and it's
networks these are as follows — high availability of substitutes, high number of demand from
buyer's side and low cost of switching.
Bargaining power of supplier's
This can be said as the weak force as compared to others as suppliers comes under the factor that
affect firm's social network and services of advertising, this element of porter's shows that how
the suppliers affect the firm and the environment of industry. Some factors that lead to weak
bargaining power of supplier's – large number of suppliers, high supply in overall, size of
individual supplier (Tsai,2018).
Threat of substitute
this is a very strong force the Facebook suffers with as in the market of social media networking
there are huge umber of social media platform that are ready to be the substitute of Facebook also
it is very easy for the advertiser to choose the substitute like radio, tv etc.
Threat of new entrants
There are less number of threat of entrants as compared to another strategy as the mostly used
social media platforms are usually by the Facebook and no one even tries to beat the market
place of Facebook as it is market most leading and oldest media platform used by the 72% of
world's population (Musonera, and Weber 2018).

The main generic growth strategies used by Facebook other than the porter's five forces are —
market penetration, diversification, market development, product development. All of these
strategies are used for the growth of the firm which simultaneously enhances the performance of
the firm.
Strategies build by CEO of Facebook
During a talk the CEO of Facebook have said some strategies that the CEO have created in the
firm to build the firm. These strategies are as follows:-
Not to be attached to desk : CEO of the Facebook planned a strategy to make the employees of
the firm more productive by providing the flexible hours and not to make them spent more than
50-60 hour on work, CEO have said rather than wasting time on desk employees should think
about how to connect the whole world in a small space and serve the best (Muraja, ., 2020).
Staying focused : CEO says that everyone should focus on the target of the firm rather than
thinking of projects or individual needs.
Elimination of small decisions : Zuckerberg have said that rather than making small decisions
to promote unity or motivation everyone should focus on the main task so that it has to be
achieved as soon as possible and make new targets.
Act more than react : Every organization have some issues that they face but the employees
should act more on work than they react to work to make themselves expertise and productive.
Dwell on mistake : Mark have said that instead of dwelling on mistakes made, everyone should
think of what new can be done so that the new environment can be adapted easily.
Calculative risk : Take risk as it is the main essence of life but take it copulatively so that it can
avoid the mostly times whenever something wrong happens (Andrews, 2020).
Strategic issues faced by firm
Strategic issues are the issues faced by firm because of some framework choice that might be
implemented wrongly, the porter force which is being used in the Facebook helps in knowing the
competitive forces that helps in knowing the influence of range of sectors, the theory of Michael
porter used on Facebook suffered with several weaknesses as it can't compare one company with
the another competitive firm, there are some main strategic issues the firm is facing on the social
platform that has been with the firm since it has started it is hate speech and false news , it is
mainly seen as the political party system now as mostly the political falseness is being spread
through Facebook, the usage of fake accounts through Facebook is increasing day per day, to

molest, humiliate or to blackmail for all of these the fake accounts are being used also the
regulatory headache is emerged as the main problem as in these 2 years the rules and regulation
of Facebook has become so tough to manage as for the customer's also it is mandatory to follow
but somehow every one violate some policy of Facebook without even knowing. All of these are
the matters in which the Facebook lacks in it must have to be improved by the Facebook so that
they can capture more of the customers in the market as of lack of privacy is the big factor
affecting the customers to not to be in this network (Ayaburi, and Treku, 2020.).
Literature Review
According to the Wolniak and et.al., (2021) it has been identified that corporate strategy is the
kind of pattern of taking decisions within an organization that illustrates the basic objectives,
purposes, goals and principles in order to adopt certain things which enables the firm to fulfil
their tasks in most effectual manner. In general there are certain ways through which a company
takes various strategic advantages such as evaluation of resources in most appropriate manner.
For instance, Mark and Spencer also follows this strategy in order to achieve success. Resources
here includes people, time and money through which an establishment is able to succeed or
become fail in their functioning (Musonera, and Weber,., 2018).
Szczepańska-Woszczyna, (2018) states that the another way to take competitive
advantages are couple company strategy with the management of the company. Appropriate
corporate strategy required effective leadership and management in order to achieve success. For
example, the Tesco follows this kind of approach through which they appropriately couple their
strategies with continuous oversight and providing them managerial directions which is the
effectual way to implement strategy into consideration. Moreover, another Dagiliene and
Šutiene, (2019) illustrates that creating sustainable goals is also one of the major way to create
and implement good and sustainable objectives within the establishment which provides extreme
benefits to the firm as well as the whole society. By considering this aspect, it has been identified
that Sainsbury is the company which follows this type of approach in order to get and achieve
success within the external environment in which various other competitive firms are also exists.
Furthermore, Mai, Nguyen and Nguyen, (2021) elaborated that some other way as well
such as through effective communication, the companies are able to implement their strategies
into most appropriate manner. The corporate strategy is the one which not only resides among
the mind of the owner but also within the mind of the employees as well. This will happen only

with effective transformation of ideas with appropriate communication channels among the
company and owner. For instance, ASDA is successful because of their appropriate
communication channels within the establishment (Al-Shamaileh, 2018).
Recommendations
Facebook is a well-known company followed by various youngsters or even diversified
age group people. Although they already have a considerable level of brand image but in order to
sustain their brand value, they have to adopt some strategies such as:
 Find and focus over the target audience.
 Creating a unique selling proposition.
 Exposing core values of the business.
 Generating unique personality.
 Consistency across each and every channel.
 Become genuine.
 Addition of endless values.
 Focus over the positive sides of the tasks rather than exercising over the negatives
(Avanesova and et.al., 2021).
 Make promises to the users along with stick to them completely.
 Extend the brand at every opportunity.
 Do not forget to evolve with time.
The above mentioned recommendations assist the Facebook in order to originate the
brand image along with maintain it for long duration of time. All the above steps help in creating
credibility and loyalty among potential corporate strategy and implement it on consumers. If the
firm consistently work for stable brand image then it will definitely able to run the business into
long run (Fuller, 2019).
CONCLUSION
From the above report, it had been concluded that building appropriate corporate
strategies plays a major role in order to achieve success and move the whole business towards the
direction towards which the company exactly wants to move further and achieve success. The
concept had been explained with the help of diversified business and corporate strategies,
internal and external environment analysis along with tools and techniques in order to make

sustainable brand image. Moreover, it further explained about the strategic planning at
diversified stages enable the firm to get advantages and benefits from the same. This study report
has shown the main strategies of the Facebook and how they often implement them (White, and
Boatwright, 2020).

REFERENCES
Books and journal
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and Society Magazine. 37(2). pp.40-45.
Andrews, L., 2020. Facebook regulation: a process not a text.
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concerns: The case of FacebookInternational Journal of Information Management. 50.
pp.171-181.
Fuller, M., 2019. Big data and the Facebook scandal: Issues and responses.Theology.122(1)
pp.14-21.
Jamjongdumrongkit, S., 2019. Factors positively affecting purchase intention of product (s) or
service (s) of Facebook users at Lumpini park in Bangkok.
Laksham, K.B., 2019. Unmanned aerial vehicle (drones) in public health: A SWOT
analysis.Journal of family medicine and primary care,8(2), p.342.
Muraja, V., 2020.Strateški menadžment društvenih mreža na primjeru Facebook (Doctoral
dissertation, University North. University centre Koprivnica. Department of Business
and Management).
Musonera, E. and Weber, J.M., 2018. Analysis of Marketing Strategies in the Social Media:
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Facebook Case Analysis.Journal of Marketing Development & Competitiveness, 12(1).
Real, F.H., 2021. Analyzing the effectiveness of Facebook and Instagram marketing in digital
marketing, scope of conversion and its impact in Bangladesh.
Sun, L., 2020. SWOT Analysis of Facebook Inc.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Tsai, T.A., 2018. A Study of Marketing Strategy on the Social Network Platform, Facebook: the
Case of Fan Page of KetoLifestyle.
VAVEROVÁ, K., 2021.Facebook Marketing(Doctoral dissertation, Masarykova univerzita,
Ekonomicko-správní fakulta).

White, C.L. and Boatwright, B., 2020. Social media ethics in the data economy: Issues of social
responsibility for using Facebook for public relations.Public Relations Review. 46(5).
p.101980.