MGT502 Business Communication: Annotated Bibliography Task A

This annotated bibliography, prepared for a MGT502 Business Communication assignment, explores various aspects of Facebook's business challenges. The bibliography includes ten articles that delve into topics such as the differences in content across social media platforms, Facebook's financial struggles after announcing its digital money plans, and the impact of data privacy issues on the company's image. The articles also discuss the importance of electronic word-of-mouth (eWOM), the factors that influence user behavior on social media, and the decline in user engagement. Furthermore, the bibliography examines the financial losses Facebook has experienced, including stock drops and market capitalization declines, due to various factors like changes in news feeds, data scandals, and privacy breaches. These articles collectively provide a comprehensive overview of the challenges Facebook faces, including financial difficulties, user engagement, and data privacy concerns, offering valuable insights into the company's communication strategies and overall business performance.

MGT502 Business Communication – Task A 0
Title: MGT502 Business Communication – Task A – Annotated Bibliography
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MGT502 Business Communication – Task A 1
Article 1
Smith, A., Fischer, E., & Yongjian, C. (2012). How Does Brand-related User-generated Content
Differ across YouTube, Facebook, and Twitter?. Journal Of Interactive Marketing, 26(2),
102-113. doi: 10.1016/j.intmar.2012.01.002
The article highlights the difference between the content that is presented on different social
media platforms. The article showcases the difference in the content of social media platforms,
which include Facebook, YouTube, and Twitter. The article compares the content of all these
different platforms, by using six dimensions of user-generated content. From this, it can be
highlighted that all these different platforms attract different customers. The article helps in
understanding the nature, behavior, needs, and demands of each social media platform, which
also highlights the changes that the organization Facebook needs to make.
With this, it has been identified that for the organization Facebook, it is paramount to
utilize strategies that help in attracting diverse customers, by implementing strategies and content
that successfully attract customers. With the growing competition amongst different social media
platforms and the financial issues at Facebook, the organization needs to resolve the problem of
reduction in the users of Facebook and appropriate user-generated content is paramount.
Article 2
Katsomitros, A. (2020). Facebook’s foray into financial services is struggling to gain momentum
– here’s why. Retrieved 18 March 2020, from https://www.worldfinance.com/special-
reports/facebooks-foray-into-financial-services-is-struggling-to-gain-momentum-heres-why
The article exhibits the different financial issues, which the organization Facebook is
undergoing, after announcing its plan to launch digital money. The main cause of the financial

MGT502 Business Communication – Task A 2
issue is the withdrawal of the key partners from the project. In addition to this, at the
commencement of the project more than 1500 organizations, exhibited an interest in the project,
but only 10 percent of them could fulfill the criteria needed for participation. This has left the
organization with a huge financial gap, which has increased the financial problems of the
organization. On the other hand, the other issues, which have increased the financial problems of
the organization are that cryptocurrency has a negative image in the market, as they have a
fluctuating rate and the people lack the basic information about it too. The most popular
cryptocurrency is Bitcoin, which is also surrounded by humongous controversies.
It is due to all these different aspects that the organization Facebook is facing financial
issues, as they are not able to attain appropriate funds for its latest project of digital money. In
addition to this, with the different data issues in the year 2018, the organization's credibility has
enhanced the problems of the organization.
Article 3
Sherman, E. (2018). Facebook's Getting Slammed for Data Practices, and Now It's Asking Banks
for Your Financial Information. Retrieved 18 March 2020, from https://www.inc.com/erik-
sherman/as-facebook-gets-slammed-for-data-practices-it-wants-your-financial-info-from-
banks.html
The article exhibits the different problems or issues, which have impacted the image of the
organization Facebook amongst the customers. With the sloppy data protection practices that are
utilized at Facebook, the organization has lost massive users, along with some of its most
prominent human resources too. With the loss of human resources and the organization's latest
approach of acquiring bank information about its customers, the organization has received a huge

MGT502 Business Communication – Task A 3
backlash from the users and the employees who have left the organization. The image of the
organization was further impacted when the employees who have left the organization, pursued
users to uninstall and delete the Facebook application. All these different aspects reduced the
credibility of the organization, along with the users, which increased the financial problems of
the organization.
Article 4
King, R., Racherla, P., & Bush, V. (2014). What We Know and Don't Know About Online
Word-of-Mouth: A Review and Synthesis of the Literature. Journal Of Interactive
Marketing, 28(3), 167-183. doi: 10.1016/j.intmar.2014.02.001
The article highlights the importance of electronic word of mouth (eWOM), which is one of
the most effective forms of marketing, also the oldest one too. With the approach of eWOM
communication and the rapid growth of social media platforms, there are several advantages and
disadvantages that both the users and the social media platforms have experienced. It is through
the approach of eWOM that users are being informed about the various aspects of social media
platforms, through the experiences of the people. The consumers are seeking more information
be it about the online retailing or the social media platform, this has educated the users
immensely, forcing them to make informed decisions.
For the organization Facebook, this has attributed to being advantageous and
disadvantageous as the organization has more than 2 billion users. At the same time, the
organization's image has been damaged extensively by through eWOM communication, as the
negative experience has been circulated massively.

MGT502 Business Communication – Task A 4
Article 5
Trusov, M., Bodapati, A., & Bucklin, R. (2010). Determining Influential Users in Internet Social
Networks. Journal Of Marketing Research, 47(4), 643-658. doi: 10.1509/jmkr.47.4.643
The article highlights the success of social media platforms, which is determined by the
number of active users that they have on their platform. The user's connection is also determined
by the number of friends they have on the social media platforms, for which, determining the
activities of the friends also becomes paramount. Furthermore, the article also exhibits the fact
that only a small fraction of these friends have the potential to influence the members of a social
site. With this, it can be stated that the social media platform does not have loyal customers and
thus, customer shift can happen very easily.
Firstly, with the reduction in the users of Facebook, the organization's success and
position in the market is being affected, which will also impact the finances of the organization.
In addition to this, it has been found that there has been a humongous reduction in the browsing
level of the users too.
Article 6
Kuchler, H. (2018). Facebook says users are spending less time browsing. Retrieved 18 March
2020, from https://www.ft.com/content/b0121ad6-06b6-11e8-9650-9c0ad2d7c5b5
The article exhibits different facts associated with the social media platform Facebook. It
informs about the decline in the users on the social media platform, which is increasing with
each passing day. The article showcases that the users do not spend much time in meaningless
browsing, which has impacted the level of active users of the organization. Furthermore, due to
this reduction, there has been a decrease in the stock rate of the organization too, which has

MGT502 Business Communication – Task A 5
decreased by 5 percent. The main cause of this reduction is less engagement, which the users
have experienced with the organization Facebook. In addition to this, there has been a reduction
of 50m hours per day by the users on the social platform.
With this, it can be concluded that the main financial issues, which are erupting at
Facebook are due to the reduction in its users. The main cause of this reduction is the lack of
meaningful engagement, which the organization needs to focus on.
Article 7
Cherney, M. (2018). Facebook stock drops roughly 20%, loses $120 billion in value after
warning that revenue growth will take a hit. Retrieved 18 March 2020, from
https://www.marketwatch.com/story/facebook-stock-crushed-after-revenue-user-growth-
miss-2018-07-25
The article informs about the financial loss that the social media platform Facebook has
experienced due to market capitalization. According to the article, the organization Facebook lost
around $120 billion. In addition to this, it has also been identified that the growth of the users has
also been very slow. Furthermore, due to the weak guidance, the investors are also rattles, which
further impacted the finances of the organization. In addition to this, this reduction and decline in
the finances of the organization have been recorded as the ugliest day, especially since the
organization went public in the year 2012. The article informs that after the release and
announcement of the earnings report of the organization the value of the stock declined by 7%.
This is a humongous loss to the organization.
From this, it can be stated that there are issues that have been prevailing in the organization
for quite long and that needs to be addressed immediately for controlling the damage.

MGT502 Business Communication – Task A 6
Article 8
Graham, J. (2020). Facebook Stock Falls After Q4 Earnings Beat; Is This FANG Stock A Good
Buy?. Retrieved 18 March 2020, from https://www.investors.com/research/fb-stock-buy-
now-facebook-stock/
The article highlights the other decline which has happened in the stocks of Facebook. The
article informs about the decline of 44 percent, which has impacted the growth of the
organization adversely. In addition to this, it is due to this decline that the organization has to
undergo a brutal experience for five months for recovering the financial loss it has experienced
lately. In addition to this, the earnings of the organization have been hit too massively, which
increased the problems of the organization immensely. All this has happened due to the FANG
stocks, which have suffered massively due to various government regulations and guidelines.
It is due to these aspects that the organization Facebook has been struggling a lot, especially
with its finances. In addition to this, the image of the organization has been scrutinized too,
which has further made the circumstances worse for the organization.
Article 9
Rodriguez, S. (2018). Here are the scandals and other incidents that have sent Facebook's share
price tanking in 2018. Retrieved 18 March 2020, from
https://www.cnbc.com/2018/11/20/facebooks-scandals-in-2018-effect-on-stock.html
The article informs about the different reasons, behind the decline of Facebook share in the
year 2018, which has been a turbulent year for the social networking site. The organization has
experienced a decline of 40 percent, due to various reasons. This includes the changes in the
news feed, which prioritized the feeds of the friend and family, above the brands that the

MGT502 Business Communication – Task A 7
organization follows. In addition to this, the major hit was brought by the Cambridge Analytica,
which informed about the data policy of the organization Facebook, which collected personal
information of 50 million users without their consent. This impacted the image of the
organization immensely, hence, affecting the shares of the organization. In addition to this, it
also recorded to be the lowest closing that the organization has received in the last 22 months.
Furthermore, there were additional scandals too, which contributed to this decline. Hence,
increasing the financial problems of the organization.
Article 10
Pound, J. (2015). Facebook falls following a report that Zuckerberg emails link him to
controversial privacy practices. Retrieved 18 March 2020, from
https://www.cnbc.com/2019/06/12/facebook-falls-on-report-of-zuckerberg-emails.html
The article highlights the different issues that have been identified in the organization
Facebook, due to the linkage of different mails, which are prohibiting the privacy rules that have
to be followed by the organization. The article exhibits the fact that due to this failure the
organization can be scrutinized by the Federal Trade Commission, which will impact the position
of the organization in the market. It is due to this scandal that the organization immediately
experienced a loss of 2 percent in its shares, which was instant and affected the finances of the
organization. In addition to this, due to this scandal, the organization has lost a huge number of
users and shareholders, as the organization's credibility has been questioned.
All these different aspects increased the financial struggle of the organization. Furthermore,
with the founder Mark Zuckerberg being questioned for this privacy breach, the position of the
organization has further degraded, affecting its finances even more.

MGT502 Business Communication – Task A 8