Social Media in Business Project

This project investigates the advantages and disadvantages of using social media in business, particularly focusing on the hospitality sector in Australia. It includes a literature review, research methodology, and analysis of the role of social media in customer relationship management and marketing strategies. The findings highlight the significant impact of social media on brand development and customer engagement, while also addressing potential risks and challenges faced by businesses in leveraging these platforms.

Advantages and
disadvantages of using social
network in business

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT SCOPE ..........................................................................................................................1
PROJECT OBJECTIVE..................................................................................................................1
LITERATURE REVIEW ...............................................................................................................1
SUMMARISING LITERATURE REVIEW...................................................................................7
RESEARCH QUESTIONS.............................................................................................................9
RESEARCH DESIGN AND METHODOLOGY...........................................................................9
RESEARCH LIMITATION..........................................................................................................12
TIME SCHEDULE........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Social media technology and customer relationship management has strong level of
capability related to building effective customer relationship management. The technique of
analysis used for reviewing previous literature related to this field is structural equation
modelling method. The first outcome or contribution of the experiment is the formation of
concepts and measurement of social CRM ability. The second result or contribution is the
discovery of the interactive effect of social media technology and social CRM towards the
creation of the firm level of social CR performance. The future research implication can be based
on those elements which are needed by a person regarding his or her emotional management to
become an effective social CRM of a company.
PROJECT SCOPE
Selected topic and research is very important to understand the current role of social media in
development and management of different business activities. The researcher will be able to
understand the role of social media networking n marketing and communicational activities
among modern companies.
PROJECT OBJECTIVE
1. To evaluate the role of social networking activities in the brand development
2. To analyze the risk or threat associated with the use of social networking sites
3. To find a positive impact of social networking sites to develop a strong relationship with
customers
LITERATURE REVIEW
Luo and Zhong (2014) discussed the analysis ofeffects of communication through electronic
word of mouth or eWOM of Travel Company on SNSs or social networking sites users. The
findings of the experiment related to this research have shown that the impacts of eWOM depend
upon the strong, intermediate and weak type of connections of those users with social media
websites. It has also been indicated that the transmitted non-influential information through
electronic word of mouth has a stronger impact as compared to influential decision-making
information. The communication network has also been found to be flat, loosely knitted, centre
based and organized. It can be implied for future researchers that they should focus on various
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barriers and those respective treatments related tithe working of eWOM through SNSs of the
travel agencies (Luo & Zhong, 2015).
Prpić, et al., (2014) discussed the definition of crowdsourcing, its advantages and to persuade
companies to apply a three-step model which can be used to exhibit effective crowdsourcing for
their competitive advantages. As an analysis outcome, the three-point model involves the
constructive considerations for the formulation of a crowd, the capabilities of firms to attain
usable resources from crowds such as knowledge, labor and funds, and the third step is of
addressing from company executives to consider those important areas which can be helpful to
engage crowds for crowdsourcing. The future research can focus on those defects or short
comings and their respective solutions which are still hurdling or restricting managers from
applying crowdsourcing in their companies despite applying that three-step model(Prpić, et al.,
2015).
Hinz, et al., (2014) presented statements about the use of direction in social media websites for
new product adoption. The secondary research method has been used, and the observational
study has been done of more than 300 students in order to know about the influence of advisers
on the purchasing rate of new products. The results have shown that friendship-oriented sites like
Facebook and undirected advice websites like LinkedIn have a low influential power for
promoting a product purchase as compared to directed advice websites like Google+ with a high
power to make an increase in product(s)purchasing. There can be further research studiesfor
finding the probable strategies which can be used for making a product purchase rate up to a
great extent by using the directed advice websites as Google+ (Hinz, et al., 2014).
He, et al., (2015) discussed those sentimental benchmarks which can be used for gaining a
competitive advantage by using a social media competitive analytics model. This model is used
to know customers’ opinions about the products of different companies. They implemented a
tool called VOZIQin their analysis so that businesses can acquire knowledge about areas for
improvement as well as areas with already done excellent teamwork. They have provided
specificsocial media marketing intelligence benchmarks related to business through the usage of
this tool in their experiment. The probable research gap from this article can be about those
possible and undiscovered benchmarks considered important for a rapid progress of any
company (He, et al., 2015).
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Lewandowski (2016) analyzed the importance of circular economy or a shift towards circular
economy from a linear one of various types of businesses in this world. The review of that
existing literature related to the circular economy has been done in order to provide findings of
this research. The findings have suggested that there are two new or redefined components of the
circular business model for the economy which are the take-back system and adoption factors.
The triple fit challenge has also been recognized as a source for making this circular business
economy model applicable. It has also been implied that there are chances of future research in
the literature used for this article(Lewandowski, 2016).
Hollenbeck and Jamieson (2015) conducted an analysis on social networking websites in order to
find out their impacts on human capital and social capital for any organization. From the
experiment, it has been found that there are complex relationships between the human capital
and social capital which are driving organizations according to the human resource management
of that company. This research is counted useful for both researchers and practitioners. It can be
implied from this research that there is a great need of study for inventing new standards and
discovering factors behind the good management of human capital and social capital by an HR
department for the progress of that company (Hollenbeck & Jamieson, 2015).
Hajli (2015) discussed the social commerce constructs and consumer’s intention to buy anything
online. The research has been done by reviewing the already available literature. The findings of
the research have indicated that the presented new model by the researcher when analyzed using
a tool called SEM-PLS has shown Web 2.0 applications attractive for customers to have
interactions and building intentions to buy things online. His model has explained social
commerce constructs and their influence on developing intentions of buying and trust. The future
study can focus on determining those strategies which can be used by e-commerce websites to
increase their market competitive advantage by using social commerce constructs.
Ahlers, et al., (2015) discussed the effectiveness of signals which entrepreneurs apply in order to
induce small investors to allocate funds in the context of crowdfunding by keeping in view social
capital, human capital and intellectual capital. An empirical study has been conducted, and the
results have shown that the maintenance of impartiality among investors and the provision of
detailed information about risks can act as useful signals for gaining success in fundraising. The
social capital and intellectual capital have little or no effect on the success of raising funds
according to the results. The future study can focus on finding out the proactive signals in the
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case of accidental management disturbance by an HR manager while consulting fundraisers
about organizing funds for the well-being of the company (Ahlers, et al., 2015).
Cardon and Marshall (2014) discussed the opinions of business professionals about team
communication and collaboration through using social networking websites. The survey has been
conducted on 227 business professionals. The results have indicated that professionals use more
traditional channels of communication for their team collaboration and communication as
compared to social networking websites and consider these conventional channels more effective
for transmission of information. The results have also indicated that the future generation will do
vice versa for their team communication and collaboration. These researchers have
recommended researchers about defining, advancing and shifting the field of business
communication towards social networking websites (Cardon & Marshall, 2014).
Lin and Lu (2015) discussed those factors which are considered responsible to affect the
customer’s intention for using mobile social networking sites by the examination of social
influence, antecedents of value and mobile value. The findings of this empirical research have
shown that convenience of mobile, suitability of services, risks of security and efforts of
comprehension have a prominent and indirect effect on the user’s acceptance of mobile SNSs
through their relative paths of mobile value or hedonic cost and value of utility. It can be implied
that future researchers should focus on finding the side effects and relevant treatments of anti-
social influence on using mobile SNSs for mobile companies (Cardon & Marshall, 2015).
Beck, et al., (2014) discussed a multilevel model of the enterprise social media or ESM
connected knowledge seekers and contributors of enterprises for the development of employees
and organizations. The empirical research has been based upon 15,505 enterprise members
involved in micro blogging through an activity-oriented language and symbolic action-based
point of view by applying electronic networks of practice(ENoP)which has shown that the
communicative act of question-answer session among pairs affects the quality of knowledge
being exchanged among them. It can also be implied that the future researchers can find out
effective solutions to the problems in ESM working of various organizations (Beck, et al., 2014).
Ainin, et al., (2015) presented their research-based opinions about those factors which influence
the application of Facebook by small and medium enterprises or SMEs and the possible
outcomes obtained by such usage. The survey-oriented questionnaires have been distributed
among 259 SMEs in Malaysia, and the main results other than additional results have shown that
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Facebook has a strong impact on the financial and non-financial aspects (like reduction in the
cost of marketing and customer services and upgraded customer relations etc.) of organizations.
The study has shown future researchers the direction of extending this research topic by doing an
experiment on a greater sample which has not been done in this research.
Nadeem, et al. (2015) discussed the role of social media websites and peer recommendations in
engaging the consumers for online shopping of clothes in Italy. The analytical data has been
assembled from Generation Y customers’ segments who purchase things online. The results have
indicated that the online shopping is done due to the predispositions towards Facebook as an e-
commerce website and relevant website quality services, and these things have direct and
positive effect on building the trust of people which leads towards attitude formation and loyalty
for e-tailers, and women are more influenced by their peer recommendations as compared to men
in e-shopping directly. It can be implied from this article that the future researchers should pay
heed towards finding new ways or strategies which can lead towards maximizinge-tailers’ output
as a result (Nadeem, et al., 2015).
Felix, et al. (2017) put forward his research-based perspectives about the new definition of social
media marketing and its dimensions. The used research methodology is a quantitative-theory-
building approach in order to develop a strategy-oriented structure and to determine four types of
dimensions of social media marketing. The findings have indicated that social media marketing
has a cross-cultural and interdisciplinary framework. The social media marketing dimensions
involve culture, scope, structure and governance which provide a framework for the managers to
organize their companies in these dimensions while maintaining consistency with their company
objectives. The future research implications can be for moving towards solving the possible
hurdles which oppose this social media marketing multi-dimensional scheme of the company
managers(Felix, et al., 2017).
Siamagka, et al., (2015) presented their views by analyzing the topic of determining various
factors which have led towards social media adoption by business to business organizations or
B2B firms. The mixture of qualitative and quantitative research methodology has been used for
the analysis by collecting data from B2B organizations in U.K. The results have indicated that
perceived effectiveness and administrative innovativeness of social media within B2B firms are
main determinants of social media adoption by such companies. The future research implications
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can be about determining those hurdles and their solutions which restrict social media usage by
B2B firms in their process of development (Siamagka, et al., 2015).
Habibi, et al. (2014) discussed its constructed model and the brand trust which is affected by the
consumers’ relationship with the elements of that model which are brand, product, company and
other consumers. The findings have suggested that three out of four relations of these elements
with customers are positive in influencing brand trust, and this engagement of consumers with
the social media play a role in amplifying the strength of relationships which consumers have
with these elements. The future research implications can be those hurdles which are faced by
the firms in an effective consumers’ engagement with their relevant social media websites for a
high-quality output or financial profit (Habibi, et al., 2014).
Hudson, et al. (2016) discussed the effects of customers’ engagement at brand-relevant websites
leading towards consumer-brand relationships. The analytical data were collected from the
participants in the U.S.A., U.K and France, and the consumers of various brands connected
through social media were compared with those who were not attached with those brands on
social media. The results have shown that there is a high-quality consumer-brand relationship
attached to consumers who remain active at relevant social media websites of such firms. The
future research implications can be attached to searching for such reasons or strategies which can
be sources of increasing quality of customer-brand relationship more than at present through
social media (Hudson, et al., 2016).
Khan, et al., (2014) put forward their opinions about the benefits and risks of using social media
in public agencies. The research was conducted empirically by using a sample of 289
government employees from six South Korean government research organizations. The findings
of this research have indicated that benefits like information attainment, social connectivity and
entertainment have been found to exert a stronger effect of satisfaction and intentionof further
using social media as compared to its risks as privacy concerned risks, time-related and
psychological dangers. The future research implications can be about finding such measures
which can eliminate or lessen the intensity of social media risks (Khan, et al., 2014).
On the whole, it can be described that roles of social media play a vital role in marketing
purposes of various organizations. The main results have suggested that there are extensive roles
which are played by social media for the maintenance and development of firms like advertising
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new products and services, announcing prize competitions and handling customer service issues
etc. The limitations of this research have suggested interviews with more sectors as well as social
media users to make the viewpoint of this topic more comprehensible.
SUMMARISING LITERATURE REVIEW
Social media technology and customer relationship management has strong level of capability
related to building effective customer relationship management. The technique of analysis used
for reviewing previous literature related to this field is structural equation modelling method. In
this context, the aim of research study was to ascertain the advantages and disadvantages of
using social network in business by considering hospitality sector of Australia. Research in
literature review able to construct robust arguments by interpreting the reviews of researchers on
subject matter. Researcher in literature review discussed that the analysis of effects of
communication through electronic word of mouth or eWOM of Travel Company on SNSs or
social networking sites users. Authors contends that electronic word of mouth is relied upon the
strong, medium and weak type connections of users who have account on social media websites.
Researchers elaborated that definition of crowdsourcing and process of crowdsourcing that can
be utilised by the business managers to gain competitive advantages. The model of
crowdsourcing has been classified into three point model. Researchers elucidated that the first
step is to establish constructive consideration with crowd, second step is to gain usable resources
from crowd such as knowledge, labour etc. Third step is to address and consider those areas
which are important and essential to engage crowd for crowdsourcing. Furthermore, researcher
have conducted research study in order to acquire information regarding influence of advisers on
purchasing rate of new products in social media websites. It was identified that there is low
influential power for promoting a product purchase as compared to directed advice websites like
Google+ with a high power to make an increase in product(s)purchasing. Researcher in literature
review discussed about the social media analytical model which can be used by the organisations
in order to gain competitive advantages. Researchers used a tool called VOZIQ for their analysis
in order to acquire knowledge about areas of improvements. A concept of cicular economy has
also been discussed in the literature review. The two components of circular economy has been
explained which has been a take back system and adoption factor. Researcher also analysis social
and human capital role in organisation by analysing social networking websites. Furthermore,
researcher in literature review have discussed about SEM-PLS which is a tool used for analysis
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identified that Web 2.0 platform is useful for attracting customers where they can have
interactions and can develop intention to buy things online. Researcher have discussed about the
effects of customer engagement at brand relevant websites in order to build customer
relationship. The numerous factors which can led towards social media adoption by B2B
organisation has also been elaborated in the research study. The constructed model which are
affected by customers' trust has also been explained by the researchers in their research study
explicitly. The new definition of social media marketing and its dimension has been explicitly
and briefly explained by the researchers in their research study. The social media marketing
involves culture, scope, structure and governance which provide a framework for the managers
to organize their companies in these dimensions while maintaining consistency with their
company objectives. Eventually, researcher has also discussed about benefits and limitations of
using social media in public agencies succinctly and briefly.
Literature problems and gaps opportunities
Researcher has selected some excellent articles who have covered every aspect of social
networks used by the business organisations. The problem with literature was that researchers in
their articles have missed one or many concepts which can enhance the effectiveness of their
research papers. For instances researchers have discussed benchmarks which can be used for
gaining competitive advantage but did not include the possible and undiscovered benchmarks
which are equally important for growth and development of organisation (He, et al., 2015). In
similar manner researcher presented statements about the use of direction in social media
websites for new product adoption. There can be further research studies for finding the probable
strategies which can be used for making a product purchase rate up to a great extent by using the
directed advice websites as Google+ (Hinz, et al., 2014). Researcher can enhance their research
by covering certain aspects of social network and can describe more benefits and drawbacks of
using social networks for promulgating organisational productivity and profitability. Researchers
in their research study discussed about the factors which are responsible for influencing
customers intention for utilising mobile social networking site by examining social influence,
antecedents of value and mobile value. They can expand their research by concentrating on the
side effects and relevant treatments of antisocial influence on suing mobile for social networking
sites for mobile company (Cardon and Marshall, 2015). After through analysing the gaps and
opportunities researcher have proposed hypothesis which are described below:
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H1: Social media networks plays significance role in providing competitive advantages to the
business organisation.
H2: Social media networks does not play significance role in providing competitive advantages
to business organisation.
Significance of research
The research will helps in enhancing the level of knowledge and understanding of
researchers regarding assessing benefits and drawbacks of social media networks for business
operations. Researcher has conducted a robust literature review detailing aspects associated with
social network in effective and efficient manner thus helps academicians and researchers
conducting research on this topic. This research will also significance for managers working in
hospitality sector of Australia as the study will specifically made on them.
RESEARCH QUESTIONS
Research questions are fundamental core of research study. It is essential for researcher to
construct research questions in order to give direction to research study. In this context,
researcher will answer following question:
Primary Question
Q1: What is the role of social media networking activities in development of brand?
Secondary Question
Q1: What are the risk and threats associated with the use of social media networking sites?
Q2: What are the positive impact of social networking sites to develop a strong relationship with
customers?
RESEARCH DESIGN AND METHODOLOGY
Research methodology is considered as the framework of the research study. In this context,
researcher will describe the research methodology he or she will going to select in order to
accomplish the aim and objectives of the research. As researcher opts to select qualitative
research, researcher will describe the methods of research he or she will use in order to attain
goals of research study. The steps for conducting qualitative research is listed below:
 Conducting literature review
 Evaluating qualitative research
 Considering ideal sample
 Selecting qualitative research strategy
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 Collecting and analysing data
 Demonstrating findings Conclusion and recommendations
Research Philosophy
Research philosophy deals with source, nature and development of knowledge.
According to Saunders research onion, research philosophy is the first criteria which is to be
covered by researcher (Taylor, Bogdan and DeVault, 2015). Research philosophy has been
classified into four types which are positivism, Interpretivism, realism and pragmatism. Each
philosophy has been selected by researcher in order attain their research set aims and objectives.
In this context, in the present research, researcher will use positivism research philosophy. As a
philosophy, positivism adheres to the view that only “factual” knowledge gained through
observation (the senses), including measurement, is trustworthy.
Research Approach
Discussion of research approach is essential while carrying out business research study.
Research approach is the plan that consists of step describing the broad assumptions formulated
by researcher to explanation of data collection method described by the researcher. Research
approach has been classified into two approaches (Mackey and Gass, 2015). These are deducting
and inductive research approach. Deductive research approach is used by researcher in order to
testify the hypothesis formulated by him or her. Inductive research approach is used to answer
the research questions formulated in the research. In this context, researcher will use inductive
research approach in order to carry out research study.
Research Design
Research design is the plan which is formulated by researcher in order to attain research
questions effectively and efficiently. There are various types of research designs implemented by
researcher while carrying out research study. In present business research researcher will use
exploratory research design. Researcher will be ale to explore research questions in depth and
more effectively so that the aim and project objectives can be attained.
Research Strategy
Research strategies are plans through which researcher able to accomplish the aim and
objectives of research project. There are different types of research study conducted by
researchers such as systematic review, case study analysis, quantitative study, qualitative
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research etc. In present research study, researcher will use qualitative research method (Lewis,
2015). Qualitative research provides detailed information including knowledge, behaviour
attitude and aptitude of the user. Qualitative research aims to provide in-depth understanding of
the subject matter. Most popular research method includes interview, case studies, observation,
group discussion and open ended questions.
Data Collection
Data collection is the process to gather information about the relevant topic of research
which is being done by researcher (Flick, 2015). There are two sources from where data can be
collected which are primary and secondary sources. In this qualitative research the researcher
will collects data by using interview research methods. Researcher will conduct interview with
managers working in different hotels in Sydney in order to assess the impacts of social media
and network. Open ended questions will be asked from them and their participation is merely
voluntary.
Sampling
Sampling is done when the survey population is large. Collecting data from large
populations is pragmatically not possible for researcher and they researcher opts to take sample
to collect data (Silverman, 2016). Sampling is considered as essential process of research as it
helps researcher by minimising his or her efforts, time and cost. In this context, researcher by
using non random sampling method will conduct interview with five managers working in small
and medium scale hotels operating in Australia. In this manner, researcher will be able to
accomplish his or her research set aim and objectives.
Data Analysis
Data analysis is the process of converting raw data into valuable information. For
research perspective data analysis is considered as most important and crucial process. There are
different methods through which researcher can analyse and interprets collected data. For
quantitative study, researchers used statistical tools like SPSS, R, etc. to analyse and interprets
numerical data. For qualitative research, researchers used thematic analysis method of analysing
data. In this context, researcher will use thematic analysis to interprets and analysed collected
data.
Ethical Consideration
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Ethical considerations are norms and conducts which must be followed by researcher in
order to enhance the effectiveness in the research study (Ledford and Gast, 2018). Before
proceeding with data collection and analysis process, researcher first needs to elaborates the
motive of research study to the participants of the research. Researcher needs to ensure that
consent of participants has been taken. Researcher will also ensure that anonymity and
confidentiality of the participants will be maintain. Furthermore, researcher will only ask
questions which are directly related to the motive of research study.
RESEARCH LIMITATION
Every researcher faced one or many limitations from initiation to termination of research study.
In this context, following limitations are estimated by researcher that could affects the quality of
research and increase time and efforts of researcher. In this context, below are the limitations
which are presumed by researcher: Data Collection and analysis: Data collection and analysis is crucial process. Researcher
assumed that the respondents will not respond precisely to the question and makes it
more complex which becomes difficult for analysis. Resistance of participants: It is anticipated by researcher that participants will be
reluctant to participate in the research study. They can depict resistance towards
participating in the research study thus, increasing efforts and time of researcher.
 Time restrictions: There are certain deadlines for finishing any project. Researcher has
also set a deadline for this study. Albeit it is assumed that due to absence of participants
on date of appointment will increase the time of researcher. Thus researcher will fall
beyond deadline.
TIME SCHEDULE
The whole research study will be completed in 16 weeks. The timeline is showing activity and
schedule is formulated below:
Task / Duration in week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Selection of topic
Developing the project
Preparing aims and objectives
Carrying out literature review
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Developing research
methodology
Conducting primary research
Analysis of data
Evaluation of data
Conclusion and
recommendations
Draft Submission
Final submission to tutor
CONCLUSION
From the above research study, it can be understood that social media network sites plays
prominent and effective role in providing competitive advantages to the organisation. In the
above research study, the summary of literature review has been provided. In this context, the
aim of research study was to ascertain the advantages and disadvantages of using social network
in business by considering hospitality sector of Australia. Research in literature review able to
construct robust arguments by interpreting the reviews of researchers on subject matter.
Hypothesis is formulated which is based on the literature review. Researcher has described the
significance of research study. Researcher has also discussed about the research methods which
will be used by researcher in order to attain the aim and objectives of research study.
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