Business Development: Stakeholder Analysis of Facebook

This report provides a comprehensive stakeholder analysis of Facebook, examining various stakeholder groups including owners, employees, customers, local community organizations, the government, and the media. The analysis delves into their motives, beliefs, and the impact of both internal and external factors on their interests. The report categorizes stakeholders based on their influence and provides a detailed behavioral analysis, considering competitive threats, corporate potential, and actual behaviors within the context of Facebook's operations. Recent developments in the social media industry, such as the rise of private groups, conversational commerce, and the importance of transparency, are also discussed, along with the challenges Facebook faces, including data scandals and government scrutiny. The report highlights the importance of understanding stakeholder relationships for the success and sustainability of the company.

Stakeholder Analysis
Report

Table of Contents
Introduction to Facebook ................................................................................................................3
Brief introduction to the company .............................................................................................3
Mission of Facebook ..................................................................................................................3
Vision of Facebook ....................................................................................................................3
Recent developments in industry................................................................................................3
Challenges ..................................................................................................................................4
Identify Stakeholders of Facebook .................................................................................................4
.........................................................................................................................................................4
Stakeholder categorisation and stakeholder analysis ......................................................................6
Behavioural category of stakeholder ..........................................................................................7
REFERENCES ...............................................................................................................................9

Introduction to Facebook
Brief introduction to the company
Facebook is an American online social media and social networking service company
that is based in Menlo Park, California. This organisation was founded by Mark Zuckerberg
with his fellow classmate naming Eduaro Saverin, Dustin Moskovitz, Chris Hughes and Andrew
McCollum. This is considered as one of the big four technology companies among Google,
Apple and Amazon. Facebook has expanded it's business across the world. Facebook is used by
each and every person around the globe (Saxton, and Waters, 2014).
Stakeholders of Facebook
There are many stakeholders of Facebook and it is defined as person or group of persons
involved in business activities and these are impacted by company and it's activities. One group
of stakeholder is employees of the company. These are affected by policies of Facebook and
work environment of Facebook. Other stakeholders include customers, owners, media.
Motives and beliefs of Stakeholders
The business has motive for delivering quality services to customers on time. Owner is
also a stakeholder of the company and it has the motive to increase reputation and image of
company in market. Other stakeholder include customers and their motive is to get quality
services from Facebook. Investors have motive for increasing profit of the company.
Coalition Analysis for Stakeholders
This is an analysis for stakeholder is a process by which views and requirements of
different stakeholders is analysed. A common policy is formed by evaluating demand of different
stakeholders like customers, employees, investors, government, etc. All these have a common
goal or objective. The main objective of stakeholder analysis is to increase involvement of
stakeholders in decision making of Facebook.
Impact on the stakeholders from outside
There are various outside factors which a business has to handle such as business
environment policies, economic policies, industrial laws, etc. All these have to be followed while
running a successful business. The stakeholders of Facebook are affected by these rules, policies
and regulations.

Mission of Facebook
Facebook is a social networking website which was started in the year 2004 and mission
of this company states that it wants to provide people the power for building community and
bringing world closer. Individuals use Facebook for staying connected with their family, friends
and to know about happenings around the world and share information to world.
Vision of Facebook
Vision statement is defined as the statement which reflects about future goals and
ambitions of the the organisation. The vision statement of Facebook depends upon social media
service offerings and it states that People across the world are using Facebook for staying
connected with their relatives and friends around the world. The main components of
Facebook's vision are tool for communication, global market scope, tool for discovery and tool
for self expression.
Recent developments in industry
Social media is defined as the way by which people are connected with their friends and
families across the world (Martincevic, and Kozina, 2019). With growth in technological
advancement, there is development in social media too. There are different developments in
social media industry within recent years. Some of these are listed below - Rise of private groups and accounts - Facebook has invested a new feature into
Facebook groups like people can make business pages, update their stories, post live
videos on groups and creation of social learning units. On the other hand, another famous
social networking site i.e. Instagram has introduced new feature which is close friend can
see stories of profile. Conversational commerce - In the year 2017 and 2018 chatbot was trending and thus
companies are involved in building messaging chatbot (Social media trends, 2019).
Facebook messenger app became installable on Sprout and websites and it created a Bot
Builder which makes it easy for different brands to implement chatbots.
 Transparency wins - Social media has become one of the main way by which
organisations communicate with consumers. This helps in getting instant responses and
providing a personalised communication platform (Tricco, And Et. Al., 2018.). Social
media is a platform which provides information to customers (Park, and Et. Al., 2016).

Thus transparency has developed in social media applications and websites that helps in
attracting more number of people.
Challenges
The biggest challenge faced by Facebook in 14 years of successful business is over
Cambridge Analytical data scandal where Mark Zuckerberg, the owner of company was
questioned about increased scrutiny from users, government and media around the world.
Another major challenge faced by Facebook occurred with Russian Government. Facebook had
to sell a lot of advertisements during the presidential election period from inauthentic accounts
and pages.
Identify Stakeholders of Facebook
Facebook Consumer
Advocates
Media
Owners Government
Local Community
OrganisationEmployees
Suppliers
Customers

There are different stakeholders of every organisation and business and stakeholders are
defined as individuals or groups of person who are having similar interests in business and it
work for success of the company. The different stakeholders of Facebook are listed below - Owners – The owner of Facebook contribute capital and equity that helps in smooth
functioning of business. The owner of Facebook is Mark Zuckerberg and he holds around
11.92 million class A Facebook shares by a series of funds. Facebook owner has vision to
operate business at global level since the day it started (Palmer, 2014). It is seen that
Mark is putting a lot of efforts to build reputation of organisation in market. Employees - Next stakeholder group of Facebook are employees and these are important
stakeholders of Facebook. Employees of Facebook are involved in carrying out
supervisory, managerial and other functions. Facebook's corporation values it's
employees for their contribution in social media business. The corporate citizenship
stakeholders are important in influencing evolution of company and in development and
improvement of products. The CSR activities of Facebook address these interests by
competitive policies of human resources. For instance, Facebook provides highest salary
providing organisation in it's industry. Customers – The main purpose of running a business is to serve customers. The potential
users of Facebook are those individuals who are using Facebook applications and they
are satisfied with latest trends and services provided by organisation. There are billions of
users of Facebook's online social media service. These users are defined as stakeholder
group that receives top prioritization in corporate citizenship which depends upon vision
and mission of Facebook. Local Community organisation - The community within which a business is operating
is considered as set of stakeholders. In context of Facebook, it is involved in various
communities that are involved in welfare programs. Facebook corporate citizenship
approach helps in improving social networking website and mobile applications for
making it convenient for users to protect privacy of accounts. Government - Each and every business posses government agencies and these may be
central, provincial, state or local in nature. Organisations have to comply with all rules
and regulations of government. Facebook is an organisation which follows regulations
abode by government of different countries so that it can have good reputation among

people and stakeholders. Government are significant stakeholders as they impose
demands on social media business. This affects company in compliance with policies and
interests of government.
 Media – It is very necessary for organisations to have communication and interaction
with press, television and media. The main aim of using media is advertising,
announcing, clarifying, or image building. Media and press are used by Facebook to
spread information about their company with other people. This stakeholder group
directly affects financial status of company (Kim, Kim, and Nam, 2014). The CSR
interests of stakeholder consists of efficient and effective advertising services and
accuracy of data from the organisation. The corporate social responsibility strategy of
Facebook addresses interest of this group of stakeholders.
Stakeholder categorisation and stakeholder analysis
The different types of stakeholders of Facebook are those entities or individuals which
are affected by business performance of an organisation. In context of Facebook, it is seen that
stakeholders of this company are satisfied and happy as this company is experiencing growth
since many years. The categorisation of stakeholders according to four different types –
offensive, defensive, hold and swing is given below - Customers – These are stakeholders which are potential users of Facebook services like
mobile applications or website. These come under category of swing category as
customers are that category of stakeholders which uses application and mobile services
provided by Facebook. Government – This group of stakeholder is considered as offensive category of
stakeholder. This group impacts on functioning of Facebook as it ensures that this
organisation is working according to rules and regulations given by law. Facebook has
suffered problem at presidential election of Russia. Employees – These are workers and staff who are working for Facebook and they come
in category of defensive category. Various applications and technologies applied in
functioning of company affects Facebook employees as they have to work by following
trends and demand of market. They are sometimes not able to meet objectives and targets
of company.

 Owner – Mark Zuckerberg is owner of Facebook and he is putting a lot of investment in
improving operations and functions of the company. The main aim of owner is to provide
services to users which are according to their demand (Haro-de-Rosario, Sáez-Martín,
and del Carmen Caba-Pérez, 2018). This group of stakeholder comes under hold
category.
C Stakeholder analysis for four selected stakeholder group
Behavioural category of stakeholder Competitive Threat - This is defined as that behaviour which can be observed in future
and it will prevent organisation in achieving goals and objectives of the company. The
competitive threat represent downside risk which is related with stake holder's dealing. Corporate Potential – Such kind of behaviour is that which is observed in future and
helps in assisting the organisation with desired direction. This reflects change in
behaviour that helps organisations.
 Actual behaviour – This is defined as behaviour which is actually observed by
stakeholder (Bonsón, Royo, and Ratkai, 2015.). This represents current state of
relationship between stakeholder and organisation.
The behavioural category of different type of stakeholder of Facebook are mentioned
below -
Competitive threat Corporate Potential Actual behaviour
Owner
Owner of Facebook
has problem that it has
to earn profit by
performing well in
market otherwise there
is a threat for
investment for
company's projects.
Mark Zuckerberg can
apply new
technologies and
processes for
improving
performance of the
company.
Owner of Facebook is
directly linked with
business activities of
organisation.
If employees of
Facebook are not
satisfied and motivated
This is necessary for
Facebook to provide
attractive salary and
There is good
relationship among
Facebook employees

Employees then they will not
perform effectively
and achieve goals of
the company.
incentives to it's
employees for
motivating them.
and organisation.
Customers Potential users of
Facebook are provided
good services so that
they are satisfied and it
helps in increasing
sales and profits of the
company.
The demands and
requirements of
Facebook users are
estimated through
feedbacks or online
messages.
Facebook uses latest
technology in it's
applications for
improving customer
experience.
Government Government keep
changing it's rules and
regulations for
companies and thus it
is important for
Facebook to obey all
these and operate
smoothly.
Facebook keeps track
of all business
activities and ensures
that they are following
regulations given by
government.
Different countries
follow different rules
and regulations which
have to be followed by
management of
Facebook.
Categorisation of stakeholder and their Motives Customers – Such stakeholders are individuals who are using the Facebook application
on various gadgets like laptops, mobile phones, etc. This stakeholder group comes under
category of swing. Customers have motive to get quality services from Facebook. Government – This stakeholder group falls under category of offensive. This stakeholder
group affects functioning and operations of Facebook. Government is stakeholder
category which has motive to make Facebook work by following rules and regulations
given by country's government. Employees – This stakeholder group falls under defensive category. These work
according to the demand and need of market.

 Owner – This group of stakeholder comes under hold category. Mark Zuckerberg is
investing a lot of money in his organisation. Owner is also a stakeholder of the company
and it has the motive to increase reputation and image of company in market.
Coalition Analysis for Stakeholders
This is a stakeholder analysis which helps in making a collaborative policy that has to be
followed by various stakeholders like like customers, employees, owners, government, etc.
These are given an objective which helps in enhancing performance of Facebook. All
stakeholders agree to involve in effective meetings and make strategic decisions for Facebook.

REFERENCES
Books and Journals
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.
Haro-de-Rosario, A., Sáez-Martín, A. and del Carmen Caba-Pérez, M., 2018. Using social media
to enhance citizen engagement with local government: Twitter or Facebook?. New
Media & Society, 20(1), pp.29-49.
Kim, D., Kim, J. H. and Nam, Y., 2014. How does industry use social networking sites? An
analysis of corporate dialogic uses of Facebook, Twitter, YouTube, and LinkedIn by
industry type. Quality & Quantity, 48(5), pp.2605-2614.
Palmer, S., 2014. Characterizing university library use of social media: a case study of Twitter
and Facebook from Australia. The Journal of Academic Librarianship, 40(6), pp.611-
619.
Park, J. H., Lee, C., Yoo, C. and Nam, Y., 2016. An analysis of the utilization of Facebook by
local Korean governments for tourism development and the network of smart tourism
ecosystem. International Journal of Information Management, 36(6), pp.1320-1327.
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.
Martincevic, I. and Kozina, G., 2019. THE REVIEW OF SOCIAL MEDIA AND ITS
RELEVANCE IN BUSINESS. Economic and Social Development: Book of
Proceedings, pp.194-200.
Tricco, A.C. And Et. Al., 2018. Utility of social media and crowd-intelligence data for
pharmacovigilance: a scoping review. BMC medical informatics and decision
making, 18(1), p.38.
Social media trends, 2019. [Online]. Available through <https://sproutsocial.com/insights/social-
media-trends/>