Report: Leadership and Management Strategies for Facebook's Future

This report examines the leadership and management strategies employed by Facebook, analyzing their impact on the company's sustainable competitive advantage. The report begins with an introduction highlighting the importance of leadership and management in maintaining operational efficiency and market competitiveness, particularly in the context of global economies. It then assesses Facebook's current situation, including its user base, revenue streams, and challenges such as the Facebook-Cambridge Analytica scandal and competition from Google. The report identifies key strategies for improvement, including developments in mobile display advertisements, the introduction of transparent AI, and innovations in the Messenger app with the infusion of mobile payment options. The discussion emphasizes how these strategies can enhance revenue, improve data privacy, and foster user engagement. The conclusion summarizes the findings, reiterating the significance of strategic leadership in achieving sustainable competitive advantage within the dynamic landscape of the social media industry. The report uses the Harvard referencing system and includes relevant academic sources.

Running head: MANAGEMENT AND LEADERSHIP
MANAGEMENT AND LEADERSHIP
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Introduction
Leadership and management in an organization play an important role in continuing with
the efficiency of the operations through assessment of the market conditions. The strategies that
are developed by the leaders are dependent on the analysis of the market position of the business
and the manner in which improvements might be made in the existing processes. Haucap and
Heimeshoff (2014) noted that the development of specific leadership processes supported the
organizations in gaining a sustainable competitive benefit over the existing players in the diverse
global economies. In this context, the current discussion will aim at evaluating the current
situation of Facebook and the strategies that might be considered by Zuckerberg with the
objective of supporting the growth and sustainable competitive advantage of the venture
(Bechmann 2014). The identification of the different strategies will be assisting Zuckerberg in
developing the strategies while adhering to the requirements of the organizational growth.
Current situation of Facebook
The development of Facebook is dependent on the diverse range of offerings that are
made by the same while adhering to the needs of the users. It has been noted that Facebook's
monthly active users (MAUs) maximized to 13% annually amounting to around 1.44 billion
(Carugati 2018). The developments in the offerings have helped the concerned venture in
adhering to the evolving demand of the users. On the other hand, the developments in the online
advertisement fields assisted the concerned venture in continuing with the effectiveness of the
operations. The concerned venture also owns Instagram with 300 million and WhatsApp with
800 million MAUs (Kwon, Lee and Shin 2014). The increasing rate of monthly active users of
the organization assisted the same in gaining a competitive benefit against the other competitors

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like Google. The different modifications in the processes that are undertaken by the organization
assisted the same in developing an appropriate market base for growth and expansion.
However, the revenue from the online advertisements are degrading which has affected
the potentials of the Facebook while holding strong competition against Google. It has been
noted that Google procured a return of $59.6 billion from the ad revenues as compared
to Facebook's $11.5 billion (De Wolf, Willaert and Pierson 2014). It has affected the interests
of the concerned venture in continuing with the efficiency of the sustainable competitive
advantage. The different strategies that are utilized by the concerned venture assisted the same in
upholding the effectiveness of the operations while adhering to the changing demand of the
customers.
However, the concerned venture has taken steps to develop its mobile display advertising
channels with the aim of gaining a competitive benefit against Google. Lillqvist and Louhiala-
Salminen (2014) noted that Facebook earned 73% of its total ad revenues from the developments
in the mobile display advertising by the second quarter of the year 2018. The enhancements in
the revenue stream of the organization assisted the same in developing its resources and the
R&D operations for the technological infusions in the processes. The maximization of the mobile
advertisement channels by Facebook assisted the organization in enhancing the resource flows
while gathering revenue for the R&D operations (Tafesse 2015).
The frequent innovations in the systems have assisted the organization in developing a
suitable market capability of the same while retaining the interests of the users. However, the
Facebook- Analytica scandal affected the potentials of the organization in retaining the goodwill
of the brand in different global markets. Kwon, Lee and Shin (2014) stated that the lack of trust

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and confidence among the users has affected the potentials of Facebook in retaining the brand
image of the same. The degradation of the brand name and the security related issues has
affected the user behavior which minimized the rate of retaining active users by the organization.
The scandal also affected the potentials of the organization in continuing with the efficiency of
the operations.
Strategies for improving the sustainable competitive advantage
Strategies assist an organization in gaining a competitive benefit while operating in
diverse global markets. On the other hand, the implementation of diverse range of strategies
assists an organization in continuing with the efficiency of the operations in adherence with the
common goals of organizational sustainability. The strategies that might be utilized by Facebook
for developing the competitive sustainable advantage over the other competitors in the market
are being discussed in this section of the discussion.
 Developments in the mobile display advertisements- The developments in the mobile
display advertisements will be assisting the concerned venture in developing the sources
of revenue for the venture. IT has been noted that maximum amount of revenue is
collected by the organization through the utilization of the mobile display ads. Tafesse
(2015) stated that the development of the ad based revenue of the organization and
integration with different corporations will support Facebook in enhancing the growth
process in the coming years. The developments in the mobile display ads will support the
concerned venture in adhering to the diverse and evolving needs of the other
organizations in advertising their products in a larger scale. On the other hand, the
developments in the display ads will suggest in continuing with the efficiency of the

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operations in developing suitable processes in adherence to the trends. On the other
hand, Haucap and Heimeshoff (2014) noted that the growing dependence of the users on
the mobile applications will support Facebook’s initiative of developing the mobile
display advertisements. Therefore, further developments in the mobile display ads will
assist the concerned venture in developing its resources while adhering to the needs of
sustenance.
 Introduction of transparent AI- The introduction of transparent AI systems will be
assisting the organization in developing suitable data privacy related measures and
thereby prevent data theft. The transparency in the AI algorithms ensures the
interpretability of the same depending on diverse situations. The diverse modifications
that might be employed by the concerned venture relating to the development of the
transparent AI systems will support in adhering to the interests of the users. On the other
hand, the development of the transparent AI apparatus will assist Facebook in ensuring
appropriate data security mechanisms.
 Innovativeness of the Messenger and infusion of mobile payment options- The
enhanced innovativeness of the Messenger application and the infusion of digital
payment options will assist the concerned venture in adhering to the digital money
transfer trends. The infusion of the digital payment technology with the Messenger
application will assist the concerned venture in adhering to the growing needs of he
customers in making fast purchases. On the other hand, the concerned venture might also
undertake collaborations with e-commerce platforms with the aim of developing a strong
user base. The integration with the e-commerce platforms will assist the concerned
venture in designing multi-channeled revenue streams from digital money transfer

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apparatus. Carugati (2018) stated that the Messenger application of Facebook is being
utilized by over 600 million active users. Therefore, the developments in the application
will assist the conc4erned organization in increasing the number of active visitors while
drawing the attention of the other visitors for gaining a sustainable competitive growth.
Conclusion
Therefore, from the research it might be stated that the different strategies that are
initiated by the organizations are based on the assessment of the organizational potentials and
the market environment. On the other hand, during the discussion it was also noted that the
strategies that might be undertaken by the concerned venture, Facebook, will contribute to the
sustainable competitive benefit. Therefore, the research aimed at identifying the current situation
of Facebook and the strategies that might be considered by the same with the objective of
gaining a sustainable competitive advantage.

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References
Bechmann, A., 2014. Non-informed consent cultures: Privacy policies and app contracts on
Facebook. Journal of Media Business Studies, 11(1), pp.21-38.
Carugati, C., 2018. The 2017 Facebook Saga: A Competition, Consumer and Data Protection
Story. Eur. Competition & Reg. L. Rev., 2, p.4.
De Wolf, R., Willaert, K. and Pierson, J., 2014. Managing privacy boundaries together:
Exploring individual and group privacy management strategies in Facebook. Computers in
Human Behavior, 35, pp.444-454.
Haucap, J. and Heimeshoff, U., 2014. Google, Facebook, Amazon, eBay: Is the Internet driving
competition or market monopolization?. International Economics and Economic Policy, 11(1-2),
pp.49-61.
Kwon, O., Lee, N. and Shin, B., 2014. Data quality management, data usage experience and
acquisition intention of big data analytics. International journal of information
management, 34(3), pp.387-394.
Lillqvist, E. and Louhiala-Salminen, L., 2014. Facing Facebook: Impression management
strategies in company–consumer interactions. Journal of Business and Technical
Communication, 28(1), pp.3-30.
Tafesse, W., 2015. Content strategies and audience response on Facebook brand
pages. Marketing Intelligence & Planning, 33(6), pp.927-943.

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