Dynamic Strategy: Comprehensive Facebook Stakeholder Analysis Report

This report presents a comprehensive stakeholder analysis of Facebook, examining the company's vision, mission, challenges, and industry trends. It begins with an overview of Facebook, including its founding, operational aspects, and recent controversies. The report then introduces a stakeholder view model, identifying key stakeholder groups such as customers, employees, shareholders, and the government. A detailed analysis of four selected stakeholder groups—customers, employees, shareholders, and the government—is provided, including their behaviors, motives, and potential coalitions. The analysis considers the stakeholders' relationships with Facebook and each other. The report concludes by highlighting the potential for Facebook's future growth based on the insights gained from the stakeholder analysis. The report also references key articles and provides an executive summary and table of contents.

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

1STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Executive Summary
The study is focused towards bringing forward an effective stakeholder analysis of Facebook. An
introduction to the Facebook Company and its most important stakeholders are provided. A
diagram consisting of the four major stakeholders of the organization are provided. This is
followed by a thorough stakeholder analysis of the given organization. The implications point
towards the potential for optimal growth of the stakeholder power for the organization.

2STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Table of Contents
Introduction to Facebook.................................................................................................................3
Overview......................................................................................................................................3
Vision and mission......................................................................................................................3
Challenges....................................................................................................................................3
Industry trends.............................................................................................................................4
Stakeholder View.............................................................................................................................5
Stakeholder Analysis.......................................................................................................................6
Stakeholder behavior...................................................................................................................6
Stakeholders.................................................................................................................................7
Stakeholder motives.....................................................................................................................7
Possible Coalitions.......................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

3STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Introduction to Facebook
Overview
Facebook is a social media networking service that is based in the US. The company was
founded and currently owned by Mark Zuckerberg. Zuckerberg is also currently the CEO of the
company. Facebook is currently one of the four biggest technology firms in the world alongside
Apple, Amazon and Google. The company is headquartered in Menlow Park in California. The
industry of operation of Facebook is social media and advertising. The present revenue of the
company is 55.8 billion US Dollars (Business Insider 2019). The company has total assets worth
97.3 billion US dollars. It is one of the world’s major organizations with a fast growth rate. The
company was started in 2004. Facebook has an estimated more than 2 billion active monthly
users. The company has recently comes under certain controversies related to the privacy of the
information of the users. The company allegedly provided various advertisers with user details
leading to a serious breach in customer data protection.
Vision and mission
The mission of Facebook is to contribute towards building communities and bridging the
gaps between different parts of the world. The vision of the company is to create a world more
open and connected. The company is recently focusing on developing more secure and
trustworthy community standards (Hoffmann, Proferes and Zimmer 2018). The company focuses
on the creation of better value for the connectivity of its members.
Challenges
As mentioned above the most important issues that Facebook is facing currently is in
regards to the alleged data breach of its users. The company is faced with significant privacy
issues that have affected its general operational aspects. Moreover, Mark Zuckerberg had to

4STAKEHOLDER ANALYSIS REPORT: FACEBOOK
attend courst sessions in regards to the privacy breaches that had allegedly occurred. The
organization has also been accused of failing to check the growth of violent groups that have
spread hate and terrorism through the use of the social networking platform.
Industry trends
The social networking industry relies on advertisements mostly for revenue. The industry
is highly competitive with large social networking sites such as Twitter, Instagram, Linkedin and
Google Plus. The user number of social media experienced a growth of 9% in the 2018-19 period
(www.statista.com 2019). This means that the industry is one of the highest growing industries
of the world. This brings forward the tremendous market potential of the social networking sites.
Some of the largest growing markets are North America, Western Europe and Southern Europe.
Some of the important developments in the Social Networking Sites (SNS) industry are the
growth of live video, chatbots and brand preference.

5STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Stakeholder View
Figure 1: Facebook Stakeholder view model
(Source- As provided by the Author)
In the above diagram some of the major stakeholder groups of Facebook have been
identified. Within the given stakeholder groups there are further specific stakeholder groups that
need to be identified. In consideration of the same the customer group can be divided into the
Facebook users and the advertisers. In the employee segment consists of the employees of the
organization. The government of the US is the major stakeholder as the organization runs its
most important operations in the US. The top shareholders are Mark Zuckerberg, Eduardo
Saverin, Dustin Moskovitz, Jan Koum, Sheryl Sandberg and Michael Schroepfer. The suppliers
are mainly the internet service providers and the various IT development teams that are
associated with Facebook. Communities are one of the most important stakeholder groups of
Facebook
Customerss
Employees
Government
Shareholders
Suppliers
Communities

6STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Facebook. These are the people of various areas that use Facebook to stay connected with each
other. Communities are important as they use the platform to maintain the social fabric.
Stakeholder Analysis
Four important groups that can be selected for the analysis of stakeholders from the
above identified groups are Customers, Employees, Shareholders and Government.
Stakeholder behavior
The customers are some of the most important stakeholder groups for Facebook. They
consist of the members or users and the advertisers. The customers are focused towards keeping
in touch with the happenings across the globe. At the same time they want to be close to their
friends and families. There are also businesses that use Facebook for promotion. The advertisers
are important as the bigger part of the revenue is gained from them. The Advertisers want to use
Facebook to reach the most number of people possible.
The employees are important people for the organization. They include the research and
development teams, the IT teams, the privacy and security teams and various other departments.
Facebook is one of the top employers and are sought after in the job market.
The next most important stakeholder group are the shareholders. Facebook along with
Mark Zuckerberg has a number of shareholders. The most influential shareholders want to
improve their revenue from their shares in Facebook. They are Eduardo Saverin, Dustin
Moskovitz, Jan Koum and the others. The shareholders recently have focused toward improving
their business prospects with Facebook (Kim and Yang 2017). They want to invest more in their
other ventures from the revenue they gain from Facebook.

7STAKEHOLDER ANALYSIS REPORT: FACEBOOK
The government wants to have friendlier relationships with Facebook as it can help in the
formation of more effective public relations functions for them. The government has been lately
focused towards improving their relationship with facebook and mediate the various issues that
have occurred.
Stakeholders
The stakeholders of the customers are their friends, families and acquaintances. They are
important as they bring value to their activities in regards to the SNS. The stakeholders of the
advertisers are their viewers and the buyers of their products. The advertisers advertise their
products to reach both their existing customer base and create better opportunities for reaching
more customers. This creates a very good developmental prospect for the organization and can
lead to the generation of better value (Cho, Furey and Mohr 2017). The major stakeholders of the
employees are the clients and the organization they are working for. In this case Facebook can be
said to be one of the most important stakeholders of the companies. In case of the shareholders
there are many stakeholders. The major among them are the personal companies that these
shareholders have. Hence, it can be said that the personal companies contribute greatly towards
their own essential growth. The major stakeholders for the government are the various
communities and the community members. The taxpayers are also important stakeholders.
Stakeholder motives
The motives of the customers are to get maximum usage value from facebook. The users
want to get to the most important contents on social media. They want glitch free services and
ensure that they stay connected with their friends, families and likes. The advertisers want to use
a platform like Facebook to reach the maximum number of people through their advertisements.
They want to be among their essential target markets. The employees want to have better

8STAKEHOLDER ANALYSIS REPORT: FACEBOOK
opportunities at Facebook. They want to contribute essentially towards the growth of the
organization. The employees want to have satisfactory job lives that can ensure their long
standing association with the organization. The shareholders want to get higher return on
investment to ensure their long standing partnership with the Facebook organization. Eduardo
Saverin and Dustin Moskovitz likewise would like to get more from the shares of Facebook. It is
important for the government to look after the communities of the country. In this case the
motive of the US government is to collaborate with Facebook to improve their community
interactions and community reach (Bonsón, Royo and Ratkai 2015). The government is
motivated to develop stronger relationships with facebook.
Possible Coalitions
Facebook has possible coalitions with the non-profit enterprises to ensure better reach
with the community. The customers can develop coalition with the various civil society groups
to develop essential value for their services. The advertisers can create coalitions with the
various public services groups to enhance their public reach. In case of the advertisers the
coalition would be mostly focused towards reaching the right amount of people at the right time.
The employees can get into coalition with various employee rights groups. This can be done to
improve on their developmental prospects in the organization. The shareholders can create
coalitions with the various other shareholders groups. In this case they can form a coalition to
ensure that the organizational leadership is being kept intact throughout the process. The
coalition in this case can be focused towards getting the most from the developmental aspects
that can enhance their effective growth prospects. The government can create coalitions with the
governments of various other countries with the help of Facebook. The company can help in
reaching newer milestones in the form of international cooperation.

9STAKEHOLDER ANALYSIS REPORT: FACEBOOK
Conclusion
The conclusions that emerge from the stakeholder analysis of Facebook points toward the
immense potential for the organization to witness further growth in the future. The stakeholders
that were found to influence the organization most were the customers, the employees, the
shareholders and the government. The organization need to grow and develop more to further
incorporate the various stakeholders in optimizing its functions and productivity.

10STAKEHOLDER ANALYSIS REPORT: FACEBOOK
References
Abitbol, A. and Lee, S.Y., 2017. Messages on CSR-dedicated Facebook pages: What works and
what doesn’t. Public Relations Review, 43(4), pp.796-808.
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.
Business Insider. (2019). Scandals and teen dropoff weren't enough to stop Facebook's growth.
[online] Available at: https://www.businessinsider.com/facebook-grew-monthly-average-users-
in-q1-2019-4?IR=T [Accessed 13 Aug. 2019].
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.
Hoffmann, A.L., Proferes, N. and Zimmer, M., 2018. “Making the world more open and
connected”: Mark Zuckerberg and the discursive construction of Facebook and its users. New
Media & Society, 20(1), pp.199-218.
Kim, C. and Yang, S.U., 2017. Like, comment, and share on Facebook: How each behavior
differs from the other. Public Relations Review, 43(2), pp.441-449.
www.statista.com. (2019). Topic: Social media. [online] Available at:
https://www.statista.com/topics/1164/social-networks/ [Accessed 13 Aug. 2019].