Kaplan Business School: MBA501 - Facebook Stakeholder Analysis Report

This report provides a stakeholder analysis of Facebook, examining its vision, mission, and recent developments. It explores the influence of various stakeholders, including government, competitors, customers, and advertisers, using a stakeholder view model. The analysis delves into the competitive threats, potential for cooperation, and actual behaviors of these groups, highlighting their interests and power dynamics. The report discusses the challenges Facebook faces, such as government regulations and privacy concerns, and analyzes industry trends affecting its promotional activities. It also identifies specific stakeholders within each group and assesses their impact on Facebook's operations and strategies. The conclusion summarizes the key findings and emphasizes the importance of managing stakeholder relationships for Facebook's success.

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DYNAMIC STRATEGY AND
DISRUPTIVE INNOVATION

Executive summary
This overview will consists of vision, mission and the company`s recent development through
the development of stakeholders. This report also brings and highlights few challenges and its
related industry trends and its effect on the promotional activities of the companies, who uses
this platform. The stakeholder analysis is based on competitive threat, potential cooperative, and
actual behavior. The level of competitiveness depends on the power that they impose and the
level of interest, stakeholder has in the operation of the business. A stakeholder is a person or
group of people that affect the business either directly or indirectly. The identified stakeholders
while viewing the operational interruption are government, competitors, customers, and
advertisers are continued for the analysis concern too. Social media marketing has been
forwarding towards a phase where it earns its maximum revenues through advertisements
because it has maintained a sense of trust between brand and the customer.

Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Stakeholder View.........................................................................................................................................4
Stakeholder Analysis for four prior stakeholder group................................................................................6
Government association..........................................................................................................................8
Customers and users on Facebook..........................................................................................................8
Conclusion...................................................................................................................................................8
References.................................................................................................................................................10

Introduction
This report discuses regarding the stakeholders view for the Facebook and also their analysis on
the basis of their priority. Facebook is renowned social networking website introduced by Mark
Zuckerberg. While determining the stakeholder of Facebook on the basis of ownership, it is seen
that as of January 2013, different stakeholders are as per their holding in their ownership such as
Facebook employees for 25 percent, Accel partners for 11.4 percent, Dustin Moskovitz for 7.6
percent, Sean Parker for 4 percent, Peter Thiel for 2.5 percent, Digital technologies for 5.5
percent, and Elevation Partners for 1.5 percent (Forsythe et al., 2016). More than 1.52 billion
daily users, Facebook has always remained networking site, which is one of the rewarding
technological sector stocks for shareholders after generating a return of 373.9 percent from its
IPO. The company is the fastest to reach a near market capitalization valued at $250 billion
while achieving the marking with three of IPO and boosts till $472.79 billion (Forsythe et al.,
2016).
While undertaking the e-commerce link, Facebook can be accessed on both web interface and
the mobile application and web interface permitting them to connect it worldwide (Forsythe et
al., 2016). Recent trends include genuine engagement, sales enablement, customer service, and
AI (García, Grima, and Benau, 2015).
The main vision of Facebook is to settle connection between family, friends and other people. It
is used to explore the related events and news going in the world. While sharing, it is essential to
update them. The organization`s mission is to delegate people, which can empower to create the
world and make it more connected (García, Grima, and Benau, 2015). It is seen that
organization`s vision and mission acts as an motivation to employees while representing the
culture. With the recent development, the organization has been focusing in the direction of

augmented reality, video metric updates, value optimization, and video creational tools. When
seeing at the challenges faced by the Facebook, it is seen that government creates trouble and
decline trust in the technological concerns. The related challenges as faced by Facebook is
related to security and the privacy of personal information (Herremans, Nazari, and
Mahmoudian, 2016).
Stakeholder View
Every industry has different stakeholders and it depends on the industry working and its related
operations. However, Facebook has group of people and organizations, which are taking
sustainable influential for the business achievements and its strategies (Barrett, Oborn, and
Orlikowski, 2016). Stakeholders have been defined group and individual, which can deliberately
keep its area of interest for one enterprise, which will impact the company`s action either directly
or indirectly. As per the company`s operation, roles and the responsibilities of the stakeholder
depends on the services, he has been offering to company (Barrett, Oborn, and Orlikowski,
2016).
Owner
Owners are important stakeholders of the company, which include mutual funds, institutional
shareholders. The founder “Mark Zuckerberg” who is the face of the page. It includes shares of
two people and their relative stake, this shows till what extent, their decision making can affect
the operations of Facebook (Herremans, Nazari, and Mahmoudian, 2016).
Employees
Facebook has an employee base of 30,000 employees where it is seen that for many of them,
their career enhancement and high compensation lies in CSR interest. As stated in 2013, the

Facebook employee’s has 25 percent stake in ownership. For example- Michael Schroepfer who
is an technological officer and he emerge as a Sixth largest shareholder of the company. The
corporate citizenship have been playing an significant role in the evolution of the company`s
CSR. Company`s CSR activities include responsibility programs under the direct interest of
competitive policies related to human resources. These efforts shows that the organization
satisfies CSR while considering the employee`s preferences. It is seen that corporate citizen
strives to improve the social networking and their relative online resource, which is more
accessible in the growing companies. Even with the help of CSR strategies, it satisfies the core
interest of the members and the stakeholders.
Customers/users
These stakeholders are maximum in number as the company serves special media services to
nearly billions of active users. Users of the social networking among the stakeholder group has
the maximum CSR and citizenship priorities. Customers are important for CSR because with the
help of social platform, Stakeholder prioritizes corporate citizenship with the accomplishment of
their mission and vision. For example- it is seen that most of the customers determine the
attractiveness of corporate`s displaying services of the advertisement. Advertisers make huge
payment for the purpose of sharing their content on Facebook and using it as a platform with an
am to increase sales. This led to continuous growth especially the base users and its members.
This help to align with the strategies of competitiveness and intense growth strategies. It is seen
that users have themselves started their business by forming their personal groups on the site.
Government

The government has significant stakeholders as it impose several rules and regulation on the
operation of social media. The political stability plays an important role in the development of
policies and interests that require government policies and their related interests. CSR strategies
include negotiation and partnering with government association in order to gain support from the
government programs (Torelli, Balluchi, and Furlotti, 2019).
Stakeholder Analysis for four prior stakeholder group
This enforcement of stakeholder analysis defines the motives, competitiveness, and behavior of
the stakeholders in a way to share negative and positive reviews. The cunning nature, necessity
and attitude can either destroy the goodwill or direct it in negative way. The four important
stakeholders included in the matrix includes competitors, promoters (advertisers), customers, and
the government (Tseng, Wu, Ma, Kuo, and Sai, 2017).
(Source: Projectizing, 2014)

The involvement of stakeholder depends on the involvement in the operation. Among the four
selected stakeholders, each one of them can be placed in the square in each quarter. Stakeholder
who has Low power a high interest are advertisers. Stakeholder who has low power and low
interest are near to competitors. Stakeholder who has high interest and low interest which means
meeting their needs and keeping them satisfied and these stakeholders are Facebook users. A
stakeholder who has high power and higher interest who is competitor, executive manager and
relative government (Quattrociocchi, Scala, and Sunstein, 2016). The analysis is on the basis of
cooperative potential, competitive threat, and actual behavior.
Competitors
While determining the behavior, motive, and their engagement in collaboration, it is seen that
Facebook has several competitors who provide same level of competiveness as availed by
Facebook. The main aim and motive of every social platform and site is to gain maximum traffic
of users on the site (Marino, Gini, Vieno, and Spada, 2018). Facebook avails variety of services
through its platform of operating where every site wants to gain competitive advantage. The
behavior of any company is to attract maximum users from untapped market so that they can
become first mover advantage. With the association of coalition, competitors can conduct Joint
venture and collaboration with each other in order to combine related resources for creativity and
innovation (Marino, Gini, Vieno, and Spada, 2018).
Promotional activators
As Facebook has been diversifying and enhancing its services and facilitates and this is because
maximum revenue of Facebook has been generated from advertisers and online businesses. The
site provides several options to the advertisers while helping them to serve their target market
and build enough user base (Beltrán, Melón, and Valera, 2017). The behavior of the advertisers
is examined on the basis of using the platform as a method and way to encroach maximum

people and customers. The main motive of advertisers is to generate maximum income with the
attraction of users while creating the multiple pages and groups through its means. The
collaboration of advertisers is examined in its engagement with the users and the customers
based on Facebook with a purpose of purchasing and selling the products and services while
creating making sustainable relationship with the related prospective users (Vogel, Shanahan,
and Signorelli, 2018).
Government association
The motive of the government is to put a check on whether they are performing as per laid rules
and relations act whenever needed (Stelzenmüller et al., 2015). The organization`s CSR
regulations enforce negotiation with government while supporting the programs and their
relative laws. The government ensures that the company accomplish security and privacy
concerns. They stakeholder group undertakes Facebook for obedience with new rules and
regulations (Stelzenmüller et al., 2015). It is seen that the government behavior can be either
seen or perceived as important rules and regulations. The organization associating with the
collaboration ensures to keep the customers updates and safe data under the server by availing
access to the Facebook with usage of data to safeguard the user`s privacy (Stelzenmüller et al.,
2015).
Customers and users on Facebook
With the association of coalition, the users of Facebook uses the platform provided by the
customers to purchase several products and services in the future and also it provides an
opportunity to open self-business on Facebook. Facebook`s motive is to grow its customer base
and its potential behavior of the stakeholder has been communicating and interacting to the other
users of Facebook and also look after platform as cost-effective means (Powers et al., 2016).
Apart from this, it seek while bringing new friends in their lives with the help of Facebook and

see after several marketers in order to compare products and services available with the e-
commerce market (Powers et al., 2016). The main motive of Facebook users is to share the
feelings and messages on Facebook and communicate with the friends and relatives and post
their stories on their timeline with an objective to update the life status. The company has
brought several media options a d also the gaming facilities to the users to spend the time
(Powers et al., 2016).
Conclusion
From the above discussion, it can be seen that Facebook users, competitors, government and the
advertisers plays a crucial role in affecting the operations as well as success of the Facebook.
The groups are nearly associated with the each other and also their behavior. Further it is very
important to Facebook to maximize the potential of the stakeholders while generating huge
revenues over long period of time.

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