MBA501: Stakeholder Analysis Report of Facebook's Strategy

This report presents a comprehensive stakeholder analysis of Facebook, examining its mission, vision, and the roles of various stakeholders. It identifies five key stakeholder groups: users, community, government, advertisers, and employees, and analyzes their behaviors, motives, and impact on the company's success. The report discusses Facebook's challenges, including monetization pressures and governance issues, and explores industry trends such as the rise of private groups and synced accounts. By examining the relationships between Facebook and its stakeholders, the report offers insights into the company's strategic direction and the importance of stakeholder engagement. Desklib provides students access to more solved assignments and past papers.

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Stakeholder Analysis Report

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Executive summary
In this report, all the important aspects in relation to Facebook and its stakeholders have been
covered. There is the determination of the mission and vision for which the company is
established. In that, all of the stakeholders which are involved have been determined. There are
mainly five groups which have been identified and they include the users, community,
government, advertisers, and employees. The proper presentation of them is made and with that,
there is the understanding which is gained about all the elements involved. The behavior and
other features of them have been identified and discussed in an adequate manner. It has been
identified that are involved in the processes and affects the success of the company. The role
which is played by them is determined and the manner in which company is benefitted by the
same is also taken into account. With more users there will be more growth and also the
advertisers helps in promoting all the services of the company.

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Table of Contents
A. Introduction to Facebook............................................................................................................4
B. Shareholder’s view......................................................................................................................5
C. Stakeholders analysis..................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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A. Introduction to Facebook
In the developing use of social media, Facebook is one of the largest online social networking
sites. The company has the mission for which it has been established and it states to provide the
people with the power to develop community and bring the complete world closer together. The
main focus is on making people connect via the help of social media. The main components
which are involved in this include the empowerment of people and connecting the whole world
(Facebook, 2019). The vision statement of the company states that people should use Facebook
in order to stay connected with their families and friends and also can discover the happenings of
the world. They can share and express all the aspects which matter to them. It is the main tool
with the help of which communication will be made possible and also people are able to express
themselves. There are various new features which are added from time to time and with the help
of them it is possible to retain all the customers. The live feature has been added by which live
videos can be posted and is liked by all and is highly successful (Landicho, 2019). By the use of
the people can interact at the same time of the event and this feature adds value to the site. It is
gaining the importance and all are in favor of the site and the services which are offered by it.
The numbers of the customers who are using the services of the company are increasing and all
of them are satisfied with the provided services. There is a large community which is created and
the company is maintaining its reputation in the market with the offering of best services.
With the benefits, there are certain challenges also which are faced by the company and they are
required to be dealt in an effective manner. The main challenge is the pressure which is faced
because of the monetization (Gaus, 2018). The pressure is being created on the company to
monetize more of its products. There are certain governance-related issues which are faced.
There is the issue with the management and the tasks are not being managed in an effective
manner. The roles which are to be played by all the authorities are not differentiated and that
creates the situation of confusion. There are several bad headlines which are spread about the
company and by that its image is harmed. The trust of the people was broken as there are various
such statements which harm the image of the users also. The information is sometimes leaked
and that leads to the declining trust of people in the technology of the company.

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The main trends which are involved in the social media industry are in relation to the opening of
the private groups and accounts which is increasing. There are various new networks which are
involved in social media. There are various tools by which all the accounts can be synced and
that is trending in the current period.
B. Shareholder’s view
The company is having various stakeholders groups which are involved and they are represented
in the diagram below.
(Source: Author)
All of the main stakeholders which are involved in Facebook have been identified above and all
play an important role in the management of the company. A description of them is provided
below:
Users: There are billions of users who are using the services of the company every month. They
are on the top priority in the company and receive the best services. They determine the
attractiveness and popularity of the company and the advertising services (Kissinger, 2018). In
Facebook
Users
Advertisers
employeesGovernment
Communities

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order to develop the business, it is required that user development shall be focused on which they
will be provided with the best facilities.
Advertisers: The income of Facebook is earned because of them as they promote the sites and its
services. They are the main stakeholder as they are the income sources and by that financial
status of the company is ascertained. The accurate data is represented by the advertising services
and will be targeting the specific audiences by which the benefit of the company will be
maximized.
Employees: They contribute to the business of the company as all the improvement in terms of
the products and services is undertaken by them. They perform all these services with the aim to
attain higher salaries and incentives from the business. Human resource policies are used by the
company in this respect and payments are also made accordingly.
Government: They will be imposing various requirements which are required to be fulfilled and
the company will be complying with all the laws and regulations which are established (Haigh,
Brubaker and Whiteside, 2013). The support is obtained because of the partnerships which are
maintained with them.
Communities: They are the groups which are given least importance by the company as they
affect all the other stakeholders and that indirectly affects Company. There are various supports
which are expected by them from the company which will help in attaining development.
C. Stakeholders analysis
All the stakeholders who are involved play an important role in the business and by that, they are
benefitted together with the company. There are several aspects which are considered by them
and that help Facebook in various manners. Their behaviors, motive, and coalitions are required
to be analyzed and the same is performed below:
Users: Facebook is one of the biggest social media sites in the world and it has a large number of
users. In them there are students, business corporates and organizations are involved who use it
for their personal as well as professional requirements. By the help of the number of users, the
popularity and success of the company are determined and awareness is spread among all. There

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is the increasing trend of the electronic ways of communication and in that such sites plan
important roles (Saxton and Waters, 2014). It is required by the users that their information is
secured and there shall be complete privacy which is to be provided. Their main motive is to
expand communication in an easy manner and that too by ensuring privacy which is fulfilled by
the company. More people are attracted and for that, the system is made easier and more privacy
is provided for the personal information. The coalitions are involved as there are various users
who coordinate and forms group to communicate at the same time.
Advertisers: They are the ones who act as the main source of income for the company. They
provide the best services with accurate information to all. The benefit is maximized by targeting
the proper audience and by that the media network is developed further (Ji et al., 2017). The cost
which is incurred is reimbursed with the help of the income that is earned by providing the
services to the required users. Various companies provide the ads on Facebook by which the
users are attracted such as Samsung, Amazon, and Nestle. The main aim of them is to provide
such services by which the development will be made possible. In them, there are various
companies who form a group by involving people with different skills so that all the services can
be provided by them.
Employees: The main motive of them is to maintain all the operations in the company and their
behavior is also managed accordingly. The improvements which are to be made by the company
in the social media services will be performed by them by undertaking the required actions. The
main employees of the company are Mark Zuckerberg, Chris Cox, Chris Hughes, Dave Morin,
and Matt choler. The main purpose for which they undertake the activities are the benefit of the
company and with that their career development and compensation is also enhanced (Bonsón,
Royo and Ratkai, 2015). The company will be affected in an adverse manner if the employees
will be performing in the wrong manner and due to that their interest is required to be taken into
account. They can form coalitions for certain tasks which require all to work together for the
attainment of required targets such as administration department and sales department. To
safeguard itself from adverse impacts Facebook will be needed to pay attention to the
requirements of employees.

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Government: There are a various set of regulations which are imposed by the government on the
company and that makes it an important stakeholder of Facebook. They require the company to
follow all the requirements so that they are obedient and perform in the best and required manner
(Kinsky et al., 2014). The laws are prepared by the government of different countries by which
safety can be ensured. It is the social responsibility of the company to partner and negotiate with
the government by which support will be represented on all the programs which are launched by
the government.
Conclusion
The report elucidates all the information about Facebook and its mission and vision. In that, all
the developments which are made and challenges which are faced have been taken into account.
The industry trends which were involved have been considered and on that bass complete
analysis is performed. All the stakeholders of the company are identified and then an elaboration
of the same is made. Four most important among them have been selected and then their roles,
behavior and other aspects have been discussed which provided the required knowledge and
understanding.

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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.
Facebook. (2019) Our Mission. [Online] Available at: https://newsroom.fb.com/company-info/
[Accessed 11 August 2019]
Gaus, A.(2018) 4 Key Challenges Facing Facebook in 2019. [Online] Available at:
https://www.thestreet.com/technology/4-key-challenges-facing-facebook-in-2019-14815098
[Accessed 11 August 2019]
Haigh, M.M., Brubaker, P. and Whiteside, E. (2013) Facebook: examining the information
presented and its impact on stakeholders. Corporate Communications: An International
Journal, 18(1), pp.52-69.
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.
Kinsky, E.S., Gerlich, R.N., Baskin, M.E.B. and Drumheller, K. (2014) Pulling ads, making
apologies: Lowe's use of Facebook to communicate with stakeholders. Public Relations
Review, 40(3), pp.556-558.
Kissinger, D. (2018) Facebook Inc. Corporate Social Responsibility & Stakeholder Analysis.
[Online] Available at: http://panmore.com/facebook-inc-stakeholders-corporate-social-
responsibilities [Accessed 11 August 2019]
Landicho, J. (2019) Facebook marketing trends for 2019. [Online] Available at:
https://keap.com/business-success-blog/marketing/social-media/facebook-trends [Accessed 11
August 2019]

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Saxton, G.D. and Waters, R.D. (2014) What do stakeholders like on Facebook? Examining
public reactions to nonprofit organizations’ informational, promotional, and community-building
messages. Journal of Public Relations Research, 26(3), pp.280-299.