MBA501: Dynamic Strategy - Facebook Stakeholder Analysis and Strategy

This presentation provides a comprehensive analysis of Facebook's stakeholder strategy, focusing on the identification and management of various stakeholder groups. The analysis categorizes stakeholders into swing, defensive, offensive, and hold categories, followed by the formulation of strategic options and recommendations for each group. For swing stakeholders (users), the presentation suggests improving the interface and customizing content. For defensive stakeholders (competitors), it recommends offering better deals to advertisers. The offensive stakeholders (employees) benefit from an improved pay system. Hold stakeholders (government) are addressed through job creation initiatives. Furthermore, the presentation includes a portfolio analysis of D&H Food Group, utilizing BCG and GE-McKinsey matrices, and a synergy matrix to evaluate the performance of its business units (Munchy Biscuits, Pure Juice, Funville, Burgers R Us, and Home Fresh). The analysis provides strategic recommendations for each unit, emphasizing investment in high-performing units and divestment from underperforming ones. The presentation concludes with a summary of the key findings and recommendations for both Facebook's stakeholder management and D&H Food Group's portfolio strategy.

Stakeholder Strategy Development and Implementation
Facebook
[Student Name] – [Student Number]

Introduction
• Stakeholder management is crucial for the organization
• Any firm which wants to ensure success needs to look after the
different stakeholders.
• The aim of the presentation is to highlight the manner in which the
chosen organization looks after the different stakeholders (Ji et al.,
2015).
• The firm chosen for the purpose of analysis is the Facebook.
• Facebook is one of the largest firms present around the globe.

Stakeholder Analysis (summary)
• Facebook has a large number of stakeholders (Facebook 2019)
• The stakeholders which adhere to Facebook can be understood to be
as follows: Users
Advertisers
Shareholders
Employees
Government
Communities

Stakeholder Analysis (summary)
• The chosen stakeholders have been categorized as follows:
• Offensive• Hold
• Defensiv
e
• Swing
Facebook
Users Competitors
EmployeesGovernment

Swing Stakeholder: strategic options
• The Swing stakeholder has been selected as the Users
• The Users hold an account on the website of the firm.
• The strategic options available for them are as follows:
• Better privacy
• Better interface (She & Michelon 2019)
• Customised content

Swing Stakeholder:
recommendations
• For the strategy implementation, the following strategy has been
selected :
• Improving the interface
• In this case, Facebook would be essentially required to improve its
overall interface so as to ensure that it is successfully able to attain a
larger target audience (Haigh & Wigley ,2015) .

Defensive Stakeholder: strategic
options
• The defensive stakeholders have been taken as the Competitors
• These stakeholders have a low cooperation capacity but high
competitive strength
• The strategic options available for the stakeholder group is as follows:
• Coming up with better deals for the advertisers
• Improving the interface (Shin, Pang & Kim,2015)
• Providing better user facility

Defensive Stakeholder:
recommendations
• For the implementation, the following strategy has been chosen to be
appropriate:
• Coming up with better options for the advertisers
• With this strategy, Facebook would be able to compete with the
different competitors in the right manner and hence, would be able to
ensure success in the long run.

Offensive Stakeholder: strategic
options
• The offensive stakeholders have been chosen as the Employees.
• The employees form an integral part of the organization and hence,
the firm must take initiatives to keep them happy.
• The different strategic options which are available for this stakeholder
group can be stated to be as follows:
• Making employees socially responsible
• Engaging in better involvement (She & Michelon, 2019)
• Paying incentives

Offensive Stakeholder:
recommendations
• Out of the different strategies which were analysed, the strategy
which is better recommended for the firm can be understood to be as
follows:
• Implementation of a better pay system
In this way, the firm would be successfully able to engage in better
pay and incentive system for the employees which would assist it in
ensuring long term success.

Hold Stakeholder: strategic options
• The hold stakeholders have been chosen to be the government.
• The different strategic options which have been chosen for the firm
can be stated to be as follows:
• Better law re-enforcement
• Better employment opportunities
• Better CSR (Smithson ,2019)

Hold Stakeholder: recommendations
• Out of the various strategic options which were analysed, the one
which can be best chosen for the firm can be understood to be as
follows:
• Engaging in creation of employment
This strategy would allow the firm to ensure that it is being able to
create sufficient employment which would be beneficial for the society
in the long run (Shin, Pang & Kim,,2015).

Strategy implementation
• Therefore, it needs to be understood that just forming the strategies
is not adequate and instead, initiatives need to be undertaken in
order to ensure that the firm is able to deal with these issues in the
right manner.
• The following structure will be followed by the firm
Resource Allocation Commitment Interaction Evaluation

Swing stakeholder; strategy
implementation
• For the users, the following manner can be adopted so as to
implement the strategy:
Stakeholder Users
Resource Allocation Task view and employee effort
commitment Participation
Interaction Interacted with the help of a public
communication
Evaluation Long term monitoring programs

Offensive stakeholder; strategy
implementation
• For the employees, the following manner can be adopted so as to
implement the strategy:
Stakeholder Employees
Resource Allocation HRM and Finance department
commitment Through shared values
Interaction Explicit communication
Evaluation Long term evaluation programs

Defensive stakeholder; strategy
implementation
• For the competitors, the following manner can be adopted so as to
implement the strategy:
Stakeholder Competitors
Resource Allocation New task force
commitment Shared values and participation
Interaction Zero communication
Evaluation Long term monitoring programs

Hold stakeholder; strategy
implementation
• For the government, the following manner can be adopted so as to
implement the strategy:
Stakeholder Government
Resource Allocation Financial allocation
commitment Shared Participation
Interaction Public communication
Evaluation Long term monitoring programs

Conclusion
• Therefore, from the analysis it can be largely understood that,
Facebook has a large number of stakeholders and that, the firm would
be required to undertake a considerable number of initiatives to
manage each stakeholder group
• The presentation highlight the different stakeholder groups present
and the strategies adopted for each of them. Additionally,
implementation programs for each group were provided.

Portfolio Analysis
D&H Food Group

Introduction
• D&H Business Portfolio
• The D and H Business portfolio is a fifty year old portfolio with an
adequate number of units
• Each of the units have been performing differently
• The units are as follows:
Munchy
Biscuits
Pure Juice
Fun vile
chocolates
Burgers R Us
Home
Fresh

BCG Matrix
?
Relative Market Share
Market Growth Rate
1= Munchy Biscuits
2=Pure Juice
3=Funville chocolates
4=Burgers R Us
5=Home Fresh 2 and 4
3
5
1

GE-McKinsey Matrix
Growth
Competitive strength of
business unit
High Med Low
Industry
attractivenessHigh
Med
Low
Growth
Harvest
Selective Harvest
HarvestSelective
SelectiveGrowth
5
3
2 and 4
1

Synergy Matrix
Threshold of acceptance
Misfits
Incoming:
Benefits from belonging
to portfolio
+-
Fits
+
-
Outgoing:
Benefit to portfolio
Altruists
Givers
Parasites
Takers
2 and 5
1
3
4

Business categorisation
BCG
Matrix
GE-McKinsey
Matrix
Synergy
Matrix
Munchy Biscuits Question Mark Growth Fit
Pure Juice Question Mark Selective Misfit
Funville Dog Harvest Parasites
Burgers R Us Cow Selective Takers
Home Fresh Star Growth Misfit

Munchy Biscuits
• Analysis
• From the analysis it could be reflected that the unit has been
performing very well.
• Recommendations
• D and H is recommended to continue its operations in the
particular unit and invest large amount of funds into the unit.

Pure Juice
• Analysis
• The performance of Pure Juice has been questionable. It is
performing poorly in a good sector.
• Recommendations
• It is recommended that the firm engages in research and
development before investing in the unit.

Funville
• Analysis
The Funville chocolates has been performing very poorly and is a
burden to the firm.
• Recommendations
• It is recommended that the firm disinvests in the unit.

Burgers R Us
• Analysis
The condition of Burgers R Us is the same as that of the Pure Juice.
The unit has been performing poorly
• Recommendations
The firm is recommended to look out for better opportunities before
engaging in further investment.

Home Fresh
• Analysis
• The Home Fresh is the best performing unit of the firm and is the
star of the group.
• Recommendations
• It is recommended that the firm continues to invest in the unit so
as to ensure that, it is being able to ensure success.

Conclusion
• D&H Business Portfolio
• Therefore, from the analysis it can be understood that the firm
would be required to undertake considerate strategic decisions in
order to ensure success
• Only the Home fresh and Munchy biscuits are the suitable units of
the firm.
• Recommendations to improve each unit has been provided.

References
• Facebook 2019 Our Mission [Online]. Available from: https://newsroom.fb.com/company-info/
[Accessed on 8th August 2019]
• Haigh, M.M. & 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.
• She, C., & Michelon, G. ,2019. Managing stakeholder perceptions: Organized hypocrisy in CSR
disclosures on Facebook. Critical Perspectives on Accounting, 61, 54-76.
• Shin, W., Pang, A. & Kim, H.J., ,2015. Building relationships through integrated online media: Global
organizations’ use of brand web sites, Facebook, and Twitter. Journal of Business and Technical
Communication, 29(2), pp.184-220.
• Smithson, N. ,2019. Facebook Inc.’s Mission Statement & Vision Statement (An Analysis) [Online].
Available from: http://panmore.com/facebook-inc-vision-statement-mission-statement [Accessed on 8th
August 2019]