Facebook Stakeholder Analysis for MBA501 Dynamic Strategy

This report provides a comprehensive stakeholder analysis of Facebook, a leading social media platform founded in 2004. It begins with an introduction to Facebook, outlining its mission, vision, recent developments, and industry trends. The report identifies and maps Facebook's key stakeholders, categorizing them into internal (employees, CEO) and external (users, advertisers) groups. A detailed analysis is then conducted on four selected stakeholder groups: advertisers (defensive), CEO (hold), users (swing), and employees (offensive), evaluating their influence and impact on Facebook's operations and strategic goals. The analysis considers the Cambridge Analytica scandal and its effects on user trust, highlighting Facebook's efforts to restore confidence. The report concludes by emphasizing the importance of stakeholder engagement in achieving Facebook's vision and maintaining its competitive advantage.

Running head: STAKEHOLDER ANALYSIS OF FACEBOOK
STAKEHOLDER ANALYSIS OF FACEBOOK
Name of the Student
Name of the University
Author Note

1STAKEHOLDER ANALYSIS OF FACEBOOK
EXECUTIVE SUMMARY
Founded in the year 2004 by Mark Zuckerberg along with other roommates and students who
had then been studying at the esteemed Harvard College, Facebook is one of the most popular
social media forums. The company is known to have been operational in almost all the countries
of the world except for those wherein the social media platform is banned from operations. The
following report attempted an analysis of the stakeholders of one of the extremely popular social
media platforms of the world, Facebook. The report initially discussed the various stakeholders
of the organization. The report further proceeded to analyze four major stakeholders of
Facebook.

2STAKEHOLDER ANALYSIS OF FACEBOOK
Table of Contents
A. Introduction................................................................................................................3
B. Stakeholder View.......................................................................................................5
C. Stakeholder Analysis.................................................................................................7
Defensive.........................................................................................................................8
Hold.................................................................................................................................8
Swing...............................................................................................................................8
Offensive..........................................................................................................................9
References..........................................................................................................................10

3STAKEHOLDER ANALYSIS OF FACEBOOK
A. Introduction
Facebook is one of the most popular social media forums in the modern days. The
company is one of the major online social media and networking organizations in the world. The
company had been founded in the year 2004 by Mark Zuckerberg along with other roommates
and students who had then been studying at the esteemed Harvard College (Facebook.com
2019). The company is known to have been operational in almost all the countries of the world
except for those wherein the social media platform is banned from operations. The mission of the
company is to assist the users in the creation of an efficient community that involves an
improved condition of the communicability among users. The vision of the company discusses
the empowerment of the increased communication of the users as well as encourage them to get
engaged in the daily affairs that have been taking place all over the world.
The company has been facing a huge number of developmental changes within the
operations of the organization. The majority of the developments have been observed in the
technological factors that are utilized by the company in discussion, Facebook. The company
achieved a competitive advantage within the given market through the implementation of the
various technological factors which have proven to be beneficial for Facebook (Bonsón, Royo
and Ratkai 2015). There has been observed a continuous development of the market chare of
Facebook. This in turn has led to the varied changes within the operations of the company
alongside meeting the various demands as well as the expectations of the clients of the
organization. The market share of the company is observed to be at 72.12% in the month of July
2019 (StatCounter Global Stats. 2019). The company has been observed to gain a proper
improvement in the organizational operations by following the mission and the vision that have
been implemented by the organizational management at Facebook.

4STAKEHOLDER ANALYSIS OF FACEBOOK
Figure 2: Market share of Facebook on July 2019
Source: (StatCounter Global Stats 2019)
The company is observed to have implemented the various changes within the operations
of the company in order to deal with the various demands and the expectations of the users of the
concerned social media platform. The organizational management at Facebook has been
observed to take on the various aspects that would help in the development of the marketing
strategies and activities that are undertaken by the social media platform. The improvements
helped in the increase in the social connectivity of the users who have been active on the social
media tool. Besides the companies of Apple, Amazon and Google, Facebook also holds the
position of one of the big four companies in the world (Ji et al. 2017). However, the company
has been facing issues that have been highlighted through the cases as have been highlighted

5STAKEHOLDER ANALYSIS OF FACEBOOK
through Cambridge Analytica. This has affected the interests of a huge number of users who
have been based in the United States thereby affecting the brand image of Facebook.
The following report attempts an analysis of the stakeholders of one of the extremely
popular social media platforms of the world, Facebook. The report initially discusses the various
stakeholders of the organization. The report further proceeds to analyze four major stakeholders
of the company in discussion Facebook.
B. Stakeholder View
The stakeholder view of an organization is highly dependent on the conjoint functionality
of the various stakeholders of the organization. The proper functionality of the various
departments of the organization finds a proper basis in the proper functionality of the various
stakeholders of the organization. This in turn helps the organization to adhere to as well as fulfil
the various commands of the concerned clientele of the organization. The involvement of the
various stakeholders within the given organization helps in the improvement of the various
performances that are undertaken by the organizational departments. (Cho, Furey and Mohr
2017) The company in discussion, Facebook, is observed to have benefitted at a very high level
with the great amount of involvement that is demonstrated by the various stakeholders of the
organization. The conjoint performance of the various stakeholders of the organization has
helped the concerned organization to deal in the proper changes and reforms within the
operations of the company as is required for the proper achievement of the vision of the
company. The company is noted to have implemented the various internal and external
stakeholders who have been functional in the overall development of the organization as well
(Johannessen, Sæbø and Flak 2016). The internal stakeholders of the organization include the
employees of the organization as well as the chief executive officer of the organization. On the

6STAKEHOLDER ANALYSIS OF FACEBOOK
other hand, the external stakeholders of the organization include the users of the social media
platform and the various advertisers of the company. The internal stakeholders of the
organization work towards the proper understanding of the demands of the various external
stakeholders of the organization thereby helping in the overall development of the performance
of the company in the international markets (Manetti, Bellucci and Bagnoli 2017). The following
figure highlights the major stakeholders of Facebook.
Figure 2: Stakeholder map of Facebook
Source: Created by Author
The internal stakeholders of the organization help in the development of the various
services that are to be provided to the concerned clientele of the organization as well as the other
external stakeholders of the organization. The collaborative activities that are undertaken by the
various external stakeholders of the company helps in the development of the factors that prove
to be helpful in the retention of the clients as well as resolve the issues that are highlighted by the

7STAKEHOLDER ANALYSIS OF FACEBOOK
external stakeholders (Ruehl and Ingenhoff 2015). The company in discussion is highly centered
around the users and thus benefits immensely from various reviews that are provided by the end
users of the social media platform.
The external stakeholders of the organization include the users as well as the advertisers
of the company. The users of the organization are known to be one of the major stakeholders of
the organization. The major source of revenue within the given organization is derived from the
clientele of the organization (Johannessen, Sæbø and Flak 2016). The advertisers of the company
include the various business organization who utilize the social media platform to reach out to
their existent as well as potential clientele.
C. Stakeholder Analysis
The various stakeholders of the organization as discussed above might be classified
according to the stakeholder framework as is demonstrated below.
Figure 3: Stakeholder framework for Facebook

8STAKEHOLDER ANALYSIS OF FACEBOOK
Source: Created by Author
Defensive
Advertisers
One of the major sources of revenue earning of Facebook are the advertisers of
Facebook. The efficiency of these services helps in the improvement of the various issues that
are faced by the clients of the organization. The advertisers are always on the receiving end of
the proper information regarding the services that are highlighted by the end users or the clients
of the organization (Haigh and Wigley 2015). This helps the company to maintain a proper
contact with the clientele of the organization. This helps in the development of the various issues
that are related to the overall development of the company and thereby attain a better competitive
advantage within the given markets.
Hold
CEO
The CEO or the chief executive officer is one of the major internal stakeholders of the
organization. Mark Zuckerberg, the CEO and the co-founder of the social media platform, is
observed to paly a huge role in maintaining the overall improvements that are faced by the
company. The chief executive officer of the organization is observed to have a penchant towards
the improvement of the revenue that is earned by the concerned organization (Bonsón, Royo and
Ratkai 2017). He is further observed to motivate the employees of the organization into
delivering their best towards the overall development of the organizational performance in the
international markets. This in turn helped in achieving a better profitability within the industry as
well.

9STAKEHOLDER ANALYSIS OF FACEBOOK
Swing
Users
The users of the social media platform are one of the major external stakeholders of the
organization. The users of the organization tend to help in the overall development of the
organization by highlighting the issues that are faced by them. The users also assist in the
development of the corporate social responsibility as is maintained within the organization. The
company is known to have maintained the privacy of the data that is shared by the users on
various instances and a rare instance of leakage of the information had taken place during the
Cambridge Analytica scandal (Peruta and Shields 2017). However, in order to restore the faith of
the clientele in the organizational policies, the concerned organization made attempts at ensuring
the maintenance of the privacy of the user data.
Offensive
Employees
The employees of the organization form one of the major internal stakeholders of the
organization. The organizational management is observed to be implementing the various
processes and policies in order to boost the morale of the employees of the organization. The
majority of the employees of the organization maintain the various activities that are required for
the overall development of the organizational performance (Valentini 2015). This in turn helps
the organization to attain the goals that are highlighted by the concerned organizational
management through the mission and the vision statements of Facebook.

10STAKEHOLDER ANALYSIS OF FACEBOOK
References
Bonsón, E., Royo, S. and Ratkai, M., 2015. Citizens' engagement on local governments'
Facebook sites. An empirical analysis: The impact of different media and content types in
Western Europe. Government Information Quarterly, 32(1), pp.52-62.
Bonsón, E., Royo, S. and Ratkai, M., 2017. Facebook practices in Western European
municipalities: An empirical analysis of activity and citizens’ engagement. Administration &
Society, 49(3), pp.320-347.
Cho, M., Furey, L.D. and Mohr, T., 2017. Communicating corporate social responsibility on
social media: Strategies, stakeholders, and public engagement on corporate Facebook. Business
and Professional Communication Quarterly, 80(1), pp.52-69.
Facebook.com 2019. Facebook. [online] Facebook.com. Available at:
https://www.facebook.com/pg/facebook/about/ [Accessed 10 Aug. 2019]
Haigh, M.M. and Wigley, S., 2015. Examining the impact of negative, user-generated content on
stakeholders. Corporate Communications: An International Journal, 20(1), pp.63-75.
Ji, Y.G., Li, C., North, M. and Liu, J., 2017. Staking reputation on stakeholders: How does
stakeholders’ Facebook engagement help or ruin a company’s reputation?. Public Relations
Review, 43(1), pp.201-210.
Johannessen, M.R., Sæbø, Ø. and Flak, L.S., 2016. Social media as public sphere: a stakeholder
perspective. Transforming Government: People, Process and Policy, 10(2), pp.212-238.

11STAKEHOLDER ANALYSIS OF FACEBOOK
Manetti, G., Bellucci, M. and Bagnoli, L., 2017. Stakeholder engagement and public information
through social media: a study of Canadian and American public transportation agencies. The
American Review of Public Administration, 47(8), pp.991-1009.
Peruta, A. and Shields, A.B., 2017. Social media in higher education: understanding how
colleges and universities use Facebook. Journal of Marketing for Higher Education, 27(1),
pp.131-143.
Ruehl, C.H. and Ingenhoff, D., 2015. Communication management on social networking sites:
Stakeholder motives and usage types of corporate Facebook, Twitter and YouTube
pages. Journal of Communication Management, 19(3), pp.288-302.
StatCounter Global Stats., 2019. Social Media Stats Worldwide | StatCounter Global Stats.
[online] StatCounter Global Stats. Available at: https://gs.statcounter.com/social-media-stats
[Accessed 10 Aug. 2019]
Valentini, C., 2015. Is using social media “good” for the public relations profession? A critical
reflection. Public Relations Review, 41(2), pp.170-177.