LSC UoS BA Business Studies: Global Strategic Management - Facebook

This report provides a comprehensive analysis of Facebook's global strategic management, examining both business and corporate strategies. It delves into the marketing mix (Product, Price, Place, Promotion) and corporate strategies using the Ansoff matrix (Product Development, Diversification, Market Penetration, Market Expansion). The report also includes an external analysis using PESTLE (Political, Economic, Social, Technological) and an internal analysis using SWOT (Strengths, Weaknesses, Opportunities, Threats). Strategic tools like Porter’s Three Generic Strategies (Cost Leadership, Differentiation, Focus) and Porter's Five Forces are applied to evaluate Facebook's competitive landscape. Finally, the report discusses the applicability of the BCG matrix and provides recommendations for Facebook's future strategic direction. Desklib is a platform where students can find similar solved assignments and study resources.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business strategies......................................................................................................................3
Problems that manage by business framework...........................................................................5
Strategic Tools............................................................................................................................6
Strategic Planning.......................................................................................................................8
Level of strategy..........................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global strategic management enable business organization to capitalise on the potential
of international market. It involve the concepts of often conflicting and misleading massive bulk
of data, market place and team, all of that which is done and valued at a global scale. Facebook
is an American company which is established in California and whose CEO is Mr Mark
Zuckerberg is known for their technology globally. The CEO of the Facebook is an known as the
American business leader, internet billionaire and patron. In this research report its includes the
commercial and corporate strategy, and also it will discussed an analyses of internal and external
environment like SWOT and PESTLE. Further, it also discussed about the applicability of BCG
matrix to make appropriate suggestions.
MAIN BODY
Business strategies
Marketing mix
 Product: Facebook is the company who is in the service sector and as a service provider
they holds strong brand. The aim of the company is to “empowering people to make new
communities and bring the world together”. The convenient connection feature of
Facebook's helps the people to connect with their family members, neighbours, relatives,
colleagues and co-workers. People around the globe not only using the Facebook for
writing but they are also with the help of platform they exchanges videos and photos
which further improve communication and connectedness(Akyuz, and Gursoy,2020).
 Price: In the internet age the quantity of service which has been sold through the social
media has increased. The facilities of Facebook is offered globally and anyone around the
globe may use the provided services worldwide with the web technology.
 Place: Facebook facility can be use by anyone globally by creating their account and they
are ready to interact socially or doing promotion and advertisements and the price is not
the barrier for the Facebook's users globally. However, the organisation also provides
spaces for ad to advertisers who want use the platform for promoting their product and
services to large number of people(hang, 2021).

 Promotion: Facebook is considered as the most popular social networking site globally,
has recently introduced new methods of advertising in the hope of rising their connection.
The Facebook's “Facebook Adverts” system is helps the organizations to make their own
profile, then their users may recommend to their close one's and the advertisements can
be served by targeted approaches. In regard of the networking sites often opponents states
that the it the a passing craze but with the registered user of 2.5 billion annually which
includes 250 million in the South Asia, it can be said that why most of the specialists of
the industry states that it can be changes its shape but it is going to remain for
generalisations(Hole, Snehal and Bhaskar2019).
Corporate strategies
Ansoff matrix
 Product development: The organisation's various services are consistently improving to
offer opportunities. The company's online and application software engineers using the
consumers data to make changes and make new products that is well suited in accordance
with the preferences of users.
 Diversification: The Facebook also acquire Whatsapp and Instagram for achieving the
dominance on the speech, videos and pictures on their social media sites. They also
bought Locus VR in order to joint digital gadgets market in online space. All these
activities related to diversification are complementary to the companies welfare care
(Kay, 2019) (Rugman. and Douglas, 2018) (Shams, and Belyaeva, 2018)
 Market penetration: The companies who are using the Facebook's contextual
advertisement also get the different incentives. For enhancing the positive appearance of
the Facebook's, the top leaders of the organization also take participation in social
functions.
 Market expansion: The companies offers broad range of products, online services etc.,
for drawing the attention of young viewers. They uses various payments regulations for
enterprises and customers to gave the incentives for using Facebook ad's for expanding
their business model. Those incentives help in increasing the earnings of the company.

Problems that manage by business framework
External analysis: The External analysis helps in distinguish the opportunities and challenges
which are related to the business, advancement and fluctuation in divisions or region at the
operable level. PEST study is used in for doing the environmental analysis to see how the CEO
of the organisation is handling with the various challenges(Stamevski, Stamevsk. and
Stankovska, 2018 ).
The below mentioned are the variables of PEST analysis that are relevant to Facebook:
 Political: In the United States and in the other countries Facebook has the larger
viewership compare to others. From its establishment, political parties used the Facebook
heavily for their personal benefit. Large number of people believe that they are the root
cause of creating number of political disputes around the globe. On the other hand, the
CEO of Facebook Mr Mark Zuckerberg is preparing for fixing the algorithms to limiting
the number of content related to political background(Westney, 2021).
 Economic: The Facebook creates large number of employment in the United States and
in the other nations and it also helps in generating money for the companies.
Furthermore, it helps the in the progress of other country economy and more organization
may not choose other companies over Facebook for their advertisements.
 Social: Facebook has created a simpler and less costly process which attracted the huge
number of people around the globe to come together and connect through their platform.
Many people social bond are heavily dependent on their platform. Although this
dependency is not always helpful in a long run, as various studies have shows that
engaging for duration on online can bring depression and may decrease in genuine
relationship. They are also facing various accusation that they are focused on their own
mission since they are aggressively focus on increasing their revenue and they are also
bombarding the users with number of advertisement.
 Technological: In the United States the technological environment is continuously
evolving. The company is heavily dependent on technology. They have the options such
as user - generated content, video watching, video broadcasts, messaging, and writing.

Since the users demand is continuously changing the company has to take continuously
innovative steps to engage them.
Internal analysis
The Internal components of the company, in the both language and cognitive which
includes resources, infrastructure and processes are cautiously analysed during internal analysis
at the firm level. The Facebook CEO Mr. Mark Zuckerberg conducted a SWOT Analysis to
analyse how he is going to handle complex situations at company. The Facebook SWOT
Analysis are mentioned below:
Strengths:
 The company has a great brand image,
which is essential for the long term
growth and survival of the
organization. The firm has a market domination that
makes it to capitalise from fortified
positions.
Weaknesses:
 Facebook is facing repercussion for
failing to protect their users' security,
which has decreased their ratings in
various countries.
 Online advertising is a leading source
of cash for the organization.
Opportunities:
 To competing with large e-commerce,
Mark Zuckerberg can broaden their
Facebook's current products, like
streaming media, business applications,
etc. As technology develops, Facebook may
be able to improve its interaction with
other programmes.
Threats:
 The CEO of Facebook is subjected to a
slew of adverse rules when conducting
their business.
 Lately, both the EU and the United
Kingdom present new digital taxes,
involve company to pay additional tax
and which will impact their sales and
profits.

Strategic Tools
Porter’s Three Generic strategies: The professional implement this particular method to
product and services in every field which includes two organization of all size. It helps in
describing the organisation strategies for accomplish a sustainable competitive advantage in their
respective industry. In the regards of the Facebook, the CEO of the company is considering the
strategies. They are as follows:
Cost leadership strategy: When the company objective is of becoming the next cheapest
manufacturer in their respective field is referred as a cost leadership. Under this method, Mark
Zuckerberg may take competitive advantage by exploiting their production costs and demanding
lower rates, leading to inflated customer base and a advantageous boost to Facebook's long-term
goal.
Differentiation strategy: This is a organization plan of action that gives user to something
distinctive and unique from what's the competitive companies are providing in the industry.
When Mark Zuckerberg implements the plan, it will support the organisation from competitive
services by cutting pricing.
Focus strategy: This is focussed on a specialized market's decision for narrow down the
competitive organisation . When Mark Zuckerberg implements the plan, he will witness the great
impact by creating productive partnership in all their targeted market, it will limit their
competitors and integrated knowledge into there services.
According to Porter's Three General Strategies, Mark Zuckerberg implement the cost
leadership approach to make positive change at Facebook by decreasing costs related with
organization operational activity. The method allows the national companies to reduced pricing
in order to offering their internet services to a international market
Integration strategy: The CEO of Facebook implemented a horizontal integration approach to
leverage or combine with organization operating at a comparable scale in their respective sector.
Mark Zuckerberg has made a good addition to his organisation strategy by generating profits and
scale, widening business solutions, and decreasing competition. Mark Zuckerberg, for instance,
enlarged their customer base, created standard economies, energetic leadership in the social
media business, and increased their new consumers base by the purchase of Instagram.
Porter’s five forces:

The Porter's Five Forces model is a conceptual tool for determining and improving a
organization competitiveness and their surroundings. In the regard of Facebook, Porter's Five
Force model was utilised to check the whole challenging market and the performance of the firm
in the respective sector.
Facebook are examined by the five competitive forces of the Porters Model
Competitive rivalry: In the business of social media, a batch of organizations have captured a
larger portion of the economy, such as Pinterest, WeChat, Twitter etc.. However, they have the
dominance is in the field of networking and they are competing directly. Since there are very
low shifting costs, a limited handful of organization, and a reasonable variety of organization.
Threat of substitution: The industry profitability falls when there is a brand or a company with
a similar products came into the industry. It can impact on Facebook's commercial success if
there is availability of replacement in the industry. NextDoor, Vero, Niche Networks, Diaspora,
and other substitution or online social competitors possess a important threat of Facebook being
replaced.
Supplier bargaining power: In the industry of the social media, the suppliers are essential
factors which will impact the inclusion of the social media networks to a firms direct marketing
offerings. The sellers with help of the technical support use to increase prices in the online
information service marketplace. The company doesn't not have the bargaining power as
comparable to their consumers and this will have the negative impact on their revenue.
Buyers' negotiating power: The purchasers may be hard to please as they want to get the best
possible deal at the lowest amount possible. The organisation who is engage in the social media
marketing must introduced new products because the preferences of the customers changes
quickly. The purchasers usually demand discounts and special deals on the items.
New entrant threat: In the market of the social media, when the new competitors came into the
market they bring creativity and innovation with them and it forces the Facebook to cut-down
their prices and improved their services. However, the new entrants faced the high brand creating
cost, have to invest in capital intensive technology etc.
Strategic Planning
BCG Matrix:
 Cash cows: In this, the firm is having the huge market share but they are growing at
moderate rate so this is considered a s a cash cows. All the products are basically well-

established business in their respective field( Sohl and Folta, 2021). As the specific sector
is fully matured and the manufacture is spending extra investment with the aim of
generating revenue at faster pace. Due two which, Facebook must look in these sectors
with more consideration.
 Stars: These are the firms who have maintained their growth with high market share in
this respective area. They basically maintained the market positioning and also generate
new opportunities for the same. In context to Facebook must have the significant
investment with the aim of increasing profitability and sustainability in the market.
 Question marks: These are the firms who is having few customer base and having high
growth in the market. They basically indicate the loop holes of the company and in
which they need to require major change in the market. Facebook must assess that the
questions mark can be the potential star of Dog. When the company get the capability to
change its corporation around the purchase of the new machine or the technology. For
this, talented employees can fulfil the requirement of the business and make the needful
modification to them so that they can come in the category of star products( Deng,
Delios and Peng, 2020).
 Facebook must focus on the overall growth of the business by sharpening its products
who comes in this category by which they can attract the new customer base.
 Dogs: It is the low-growth products who basically compete in the specialised industry.
On other hand, if the revenue earned by the company is not high then Facebook must
exist such type of products from the market and if the company is earing huge revenue
then the company must decide to maintain a good relationship in the market.
Level of strategy
In order to analyse the strategy level of company, Mckinsey 7s model is being used by
Facebook by which corrective actions can be taken within the given time frame and ensures the
better practices within the company. There are 7 elements of this model which must considered
by company by which they can ensure continuous improvement.
 Strategy: It is the blue print of action plan which is made by the company that how the
whole work is being considered and managed within the organisation. This basically
ensures the development and dissemination of the business model which also enhance the

visibility of Facebook’s functioning and comply with the given obligation and
actions(Lwin and et.al., 2018).
 Structure: In this, Facebook is operating its business by following the flat organisational
structure in which all the employees have the supportive working environment and tey
can directly task to nay of the manager as well. Consumer feel empowered as they do
have the greater availability with the minimum barriers among them with the top level
management. Furthermore, this structure allows the Facebook for speedier their decision-
making process and enhance the entire work engagement with the company.
 System: In this, Facebook basically analyse the continuous scheduling by maintain the
daily report. The bulk of this would be performed through the observation and
information conversation. Employees get the feedback on the basis of their performance
so that they can perform well in the given job role.
 Shared values: Facebook is working for ensuring the positive working environment and
also sharing its value to their employees in numerous ways. The company is operating its
business in diversity culture with the elimination of biasness among the employees.
Facebook is encouraging innovation by giving freedom to the individual who can take
their decisions by own. Lastly, they are getting full support from its supervisors as well.
 Style: In this consideration, Facebook is using participative leadership style in which the
employees can give their valuable feedback and suggestion to the management. This
helps in the effective and innovation working within the company(Brubaker and Wilson,
2018).
 Staff: Facebook is having the large number of employees across the world. Employees
for the multiple job are being recruited from local and global countries. Employees also
get the on-job training for sharpening their skill for the better working.
 Skills: Facebook is emphasising on the development of the employees with their skills
and abilities. They are performing seminars for the personal development for its
personnel both internal and other side run.

RECOMMENDATIONS
Mark Zuckerberg is giving the consideration that all the values of the company must be
monitored properly. This is recommending to understanding the changing market dynamics by
which they can make the required changed within the organisation appropriately.
As per the data protection within UK, it is illegal for company to use the personal
information of the client to outsourcing its consent. Hence Mark Zuckerberg must conscious
about the privacy policy. This strategy may lead the company in legal problem and harm the
brand positioning and its image.
This is being reported by Mark Zuckerberg that they are using strategies to influence more
individual to use Facebook. As move people are indulged to use Instagram, Snap Chat and
WhatsApp. But Facebook has acquired WhatsApp and Instagram. The company must take the
new opportunity to bring new products and effective marketing strategies.
CONCLUSION
In the above report it has been summarised that the companies can use the global
strategic management which will help in to take the advantage of the global competition
possibilities. To get the better understanding of their corporate settings, a successful manager
create methods and software. To understand the complexity of the governmental institutions,
stakeholders, and changing needs helps management in successfully allocating funds to sustain
and expand their firms.

REFERENCES
Books and Journals
Akyuz, G.A. and Gursoy, G., 2020. Strategic management perspectives on supply
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Brubaker, P. J. and Wilson, C., 2018. Let’s give them something to talk about: Global brands’
use of visual content to drive engagement and build relationships. Public relations
review. 44(3). pp.342-352.
Chang, S.J., 2021. CORPORATE STRATEGY: OVERVIEW AND FUTURE
CHALLENGES. Strategic Management: State of the Field and Its Future, p.117.
Deng, P., Delios, A. and Peng, M. W., 2020. A geographic relational perspective on the
internationalization of emerging market firms. Journal of International Business
Studies. 51(1). pp.50-71.
Hole, Y., Snehal, P. and Bhaskar, M., 2019. Porter's five forces model: gives you a competitive
advantage. Journal of Advanced Research in Dynamical and Control System, 11(4),
pp.1436-1448.
Kay, J., 2019. The concept of the corporation. Business History, 61(7), pp.1129-1143.
Lwin, M. O., and et.al., 2018. Strategic uses of Facebook in Zika outbreak communication:
implications for the crisis and emergency risk communication model. International
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Rugman, A.M. and Douglas, S., 2018. The Strategic Management of Multinationals and World
Product Mandating 1 (pp. 90-101). Routledge.
Shams, S.R. and Belyaeva, Z., 2018. Dynamic capabilities, strategic management and
competitive advantage: A debate and research trend. In 11th Annual Conference of the
EuroMed-Academy-of-Business-Research Advancements in National and Global
Business Theory and Practice (pp. 1724-1727). EuroMed Press.
Sohl, T. and Folta, T. B., 2021. Market exit and the potential for resource redeployment:
Evidence from the global retail sector. Strategic Management Journal. 42(12). pp.2273-
2293.
Stamevski, V., Stamevska, E. and Stankovska, A., 2018. Some aspects of strategic
management. Economics and Management, 14(2), pp.129-133.
Westney, D.E., 2021. MNCs and cross‐border strategic management. Strategic management:
State of the field and its future, pp.301-318.