A Research Study on Social Networks in Business: Advantages

This research report investigates the advantages and disadvantages of using social networks in business. It begins with an introduction outlining the increasing trend of social media engagement by companies and its impact on brand visibility and customer relationships. The report details the team charter, research problem, and associated questions. The literature review explores the basic concepts, implementation of social media in business, usage of social networks, and their impact on the global business environment, including both positive and negative effects on consumer behavior and decision-making. The research methodology section covers the research paradigm, philosophy, approach, design, data collection methods (surveys and interviews), data analysis techniques (quantitative and qualitative), and data interpretation. The report concludes by summarizing the key findings and implications for businesses using social networks.

ACADEMIC & BUSINESS RESEARCH
(A RESEARCH STUDY ON ADVANTAGES AND DISADVANTAGES
OF USING SOCIAL NETWORK IN BUSINESS)
Name of the Student:
Student ID:
Submission Date:
Name of the Tutor:
Module Code:
Author’s Note:

ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK
Table of Contents
1. Introduction..................................................................................................................................3
1.1 Team Charter.........................................................................................................................4
1.1.1Topic................................................................................................................................4
1.1.2 Review............................................................................................................................4
1.1.3 Research problem...........................................................................................................4
1.1.4 Research question...........................................................................................................5
2. Literature review..........................................................................................................................7
2.1 Introduction............................................................................................................................7
2.2 The basic concept and overview............................................................................................7
2.3 Implementation of social media in a business environment..................................................8
2.4 Usage of social networks in business....................................................................................9
2.5 Impact of social networks on the global business environment..........................................10
2.6 Positive impact.....................................................................................................................11
2.7 Negative impact...................................................................................................................12
2.8 Consumer segmentation.......................................................................................................12
2.9 Impact of social network on consumer behaviour...............................................................13
2.10 The customer’s decision-making process..........................................................................14
2.11 Literature Gap....................................................................................................................15
2.12 Summary............................................................................................................................15
3. Research report..........................................................................................................................16
3.1 Research paradigm...............................................................................................................16
3.2 Methodology........................................................................................................................18
3.2.1 Research Philosophy.....................................................................................................18
3.2.2 Research Approach.......................................................................................................18
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3.3.3 Research Design...........................................................................................................19
3.3 Data collection.....................................................................................................................20
3.3.1 Survey...........................................................................................................................20
3.3.2 Interview.......................................................................................................................20
3.4 Data analysis........................................................................................................................22
3.4.1 Quantitative data analysis.............................................................................................22
3.4.2 Qualitative data analysis...............................................................................................22
3.5 Data interpretation...............................................................................................................23
4. Conclusion.................................................................................................................................24
References......................................................................................................................................25
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1. Introduction
Business research is the method of acquiring detailed information in different areas of business.
The information that is generated from such research, helps in the maximization of profits and
sales for the business. It enables the business to determine whether any modifications are
required in their operations and functioning or whether the company, which will prove to be in
the interest of the company, may adopt newer avenues. In other words, business research may be
held to be acquiring such knowledge or information which would contribute further in meeting
the commercial objective and take advantage of the opportunities in the greater interest of the
business. There is an increasing trend in the engagement of social media by companies in various
capacities, and the trend is gaining greater traction with every passing day. Businesses are far
more inclined to utilize social media networks, and the platforms provided by it for ensuring
higher visibility of the brand of the business and the development of relationships with
customers, among others. The research report focuses on the multifarious impact that
engagement of social network wields on businesses. The report indicates the team charter
mentioning the research problem and the associated questions. The main body of the report
includes a literature review, the methodology used for research, data collection, data analysis and
interpretation.
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1.1 Team Charter
1.1.1 Topic
The research report deals with the advantages and shortcomings of using social networks in
businesses. While the present trend indicates that organizations and companies are using social
media networks on a much larger scale, the results borne out from such usage has been mixed. It
is evident that, on one hand, social media have provided much-needed accessibility in terms of
customer engagement, but on another instance, such participation is not without certain
problems, which may ultimately have an adverse bearing on the interests of the business. Such
aspects make the research report on the given topic relevant.
1.1.2 Review
The significance of social media, in the context of business, has grown manifold. It has largely
been possible with a greater number of users accessing social media networks on a regular basis,
and industry report indicates that there is no instance of abatement of the same (Chamoso et al.
2018). Presence of businesses over social networks becomes crucial due to the fact that, in all
likelihood, the targeted customer base of the business is active on popular social media networks.
The platform provided by social media network had enabled the customers to connect with their
chosen brands on a much higher level (Wang et al. 2017). In such a scenario, if a business does
not retain any presence in social media network, it is likely that the business may experience
attrition in its customer base (Zhao and Burt 2018). The presence in social media networks also
helps the company in greater generation of business, better connection with its customers, and
also paves the way for digital marketing (Serrat 2017). The brand equity of the business may also
be significantly impacted as approximately, 71% of consumers are most likely to recommend the
brand in the event of having a positive experience with the same over social media (Burckart et
al. 2015).
1.1.3 Research problem
While businesses stand to benefit immensely from maintaining a presence over the social
network, however, the businesses also stand to face particular issues which may have an adverse
bearing on its operations or brand reputation. If the return on investment is not measured over the
presence in a social network, then the underlying objective of the business will not be served.
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Adverse reactions generated by customers will also negatively impact the brand of the business.
Such negative reaction may ultimately attain a greater proportion, with the perception of
customers at large, turning against the brand of the business significantly. It is in this respect that
organisations and businesses will have to assess the benefit of their presence, on social network
beforehand, for reaping the desired advantages. Hence, it is important for businesses to gauge the
shortcomings that are inherent in social networks.
1.1.4 Research question
Main question:
 What is the role played by social networks for businesses?
Sub-questions:
 What is the significance of social networks for businesses?
 What are the major benefits derived by businesses in being present over the social
network?
 What are the adverse impacts that businesses have to suffer on account of presence over
social media?
 How can businesses further leverage the advantages accruing to its due to its presence
over social media?
Student numbers and
names
Roles each will contribute throughout the project
Student A Student A will collect all the relevant information from the
secondary sources like books, journals and online articles
Student B Student B will sort-out the topics that are needed to be
discussed in the literature review
Student C Student C will analyze the data once the data are collected
and secondary sources are listed out
Student D Student D will help each of the other members to carry out
their respective duties and will check the final project before
submission
Table 1: Role of each researcher in this project
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(Source: As created by the author)
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2. Literature review
2.1 Introduction
A brief discussion about the disadvantages and advantages of social media platforms in the
global business has been provided. The use of various scholarly information has increased the
quality and reliability of the section. Moreover, the contrary views and opinions of different
scholars and writer shall provide the readers with a precise understanding about the impact of
social networks on the global business environment. Some examples and case scenarios have
also been included to make the topic more realistic and efficient for practical use. Use of graphs
and charts provides a graphical representation of the various demographics.
2.2 The basic concept and overview
Social media or rather, social networks have become a trend that has made the business culture
and technological aspect within a business more creative and meaningful. It has brought
persuasive changes in the customer-to-customer, customer to business and business-to-business
modes of communication (Agnihotri et al. 2016). Vast changes in the business culture and
customer behaviours can be seen due to the innovation in social networking platforms.
Previously, the modes of communication and advertisement that were even unthinkable are being
used and implemented in every corner of the worlds. Businesses are using social media platform
to showcase and display their abilities, and on the flip side, customers are also showing great
interest in their buying tendency from social media platforms.
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Figure 1: Travel experience process
(Source: Agnihotri et al. 2016)
However, there are several cases where a wrong advertisement or fake promises has brought
business to come down devastatingly. In those cases also, social media were highly responsible.
Cases like trolling and vague comments have brought many companies to face huge losses in
their business culture (Basole et al. 2015). In the following section, the disadvantages and
advantages of social media platforms and the ways in which the companies can mitigate their
issues have been discussed very precisely. The rule that governments of different companies
have launched to minimise the negative impact of social sites platforms and to share rights to the
businesses have also been added.
2.3 Implementation of social media in a business environment
The application and implementation of a social media platform are increasing on a daily basis.
According to Forbes business magazine, until 2017, 67% of the global companies were using
social media platform as their primary source of advertisement. Moreover, the report also
informed that 45% of the companies, which were performing nationally, got the global image
just by implementing social media as their advertisement platform (Bell et al. 2018). In
developed countries like the UK, the tourism sector has shown the biggest impact of social media
platform. UK tourism has shared 58% of the annual revenue to national growth and
development.
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Most people nowadays search their travel destination, rates and reviews by using social media
platform. Another factor that has shown a tremendous positive impact on social media in their
business culture is the clothing industry (Bolander et al. 2015). Previously, only international
brands and companies used to implement social media for marketing and advertisement purpose,
but from late 2014, the small and midsized companies in different countries have started to
launch their advertisement in social media platform. For a company like Adidas, whose sports
garments and shows are highly popular since the last many years have seen a decrease in their
sports garment-selling rate (Borgatti et al. 2018).
Figure 2: Use of social media platform by people of different countries
(Source: Bolander et al. 2015)
Moreover, as per the reports shared by the management and marketing team of the company,
they consider an increase in the local companies with high-quality product and fewer charges is
one of the biggest reason for this. In countries like India and Bangladesh, where the cities are
being urbanized at a high rate, people over there tend to search for quality products in minimum
charges (Brooks 2015). In that factor, the involvement of these small and midsized companies
has shared maximum competition in small towns and cities of the developing nations.
2.4 Usage of social networks in business
The social networking sites work on several means to attract and retain customers for different
industries (Bryman 2016). In contrast to the travel and hospitality industry, the social media
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platform is used by the consumers to determine the diverse range of the destinations and explore
the charges offered by the tourism companies. On the other hand, Buettner (2016) opined that,
the clothing and garment companies use the social media platform to provide exclusive discounts
and offer to the customers with latest trends and standard quality of the clothes. In this regard,
the example of merchandise retailing companies is also very prominent.
Figure 3: The social media assessment
(Source: Bryman 2016)
In case of Walmart and Tesco, the company to analyse the rates and reviews of the customers
and determine the highest range of products that are being purchased by the consumers mainly
heads the use of social media. This strategy of Tesco has helped the company to carry out a list
of products that are mostly being sold by the company, and the company has managed to display
those particular products in the front rows to attract the customers (Burns 2016). On the other
hand, Walmart has used this technique to understand how much time each customer is spending
in the store and how maximum customers pondering to find their desired products. Arranging
such products in a consecutive manner and providing exciting offers and discounts in all
products on two days of the week have increased the sales and customer retention to a large
extent in Walmart.
2.5 Impact of social networks on the global business environment
Since early 2011, the use of social networking platforms introduced the business cultures to
involve a group and attract people for their services. With the increased advancement in the
social media platforms, consumers have involved more towards the online product buying trends.
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According to Cao et al. (2015), this has to lead them to share their personal opinions and views
for a particular firm. An example of Diet Coke can be considered in this case, where the
company claimed it consisted of 100% natural ingredients and no added sugar or preservatives
were used in the product. This brought a revolution in among the youngsters, and a worldwide
campaign in support of diet coke with various artists involved in it.
Figure 4: Facebook remains the most popular social media platforms among adults
(Source: Burns 2016)
However, after the clinical test of the product, 45% added preservative was proclaimed, and the
quality of the water that was used was also reported to be unhealthy for regular consumption. As
opined by Fuchs (2017), in 2013, the market sale of diet coke was seen to decrease largely.
However, the company brought an advanced diet coke by minimizing their faults in the
ingredients, but the involvement of the global customers was seen to get very reduced as
compared to the previous case. Therefore, social media has a wide range of importance in the
company's improvement as well as losses. People tend to get information about the company's
work culture and services. Any minute change or misleading can bring a huge difference in the
company's work culture.
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