Detailed Stakeholder Analysis Report: Facebook's Operations

This report provides a comprehensive stakeholder analysis of Facebook, examining its key stakeholders and their impact on the company's operations. The report begins with an introduction to Facebook, detailing its history, growth, and recent developments. It then identifies the various stakeholders, including shareholders, users, employees, suppliers, financial institutions, and the government. The main body of the report categorizes stakeholders based on their influence and behavior, using categories like swing, offensive, defensive, and hold. It also analyzes stakeholder behaviors, including competitive threats, cooperative potential, and actual behaviors, and discusses stakeholder coalitions. The report concludes by emphasizing the importance of stakeholder analysis for strategic planning and the overall success of the company. References to books, journal articles, and online sources are included to support the analysis.

STAKEHOLDER
ANALYSIS REPORT

Executive Summary
As per the above report summarizes that Facebook is leading company in social media
and analysis their stakeholder on the basis of strategies as well as behaviours basis. These are
categories according to work and there are provide brief introduction of Facebook and define
stakeholders are essential for every company.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to Facebook............................................................................................................1
Identify stakeholders of Facebook..............................................................................................3
Stakeholder categorization & Stakeholder analysis....................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Stakeholder Analysis is a procedure of consistently collecting and determining qualitative
information to analysis whose interests should be taken into account while creating or applying a
policy or program (Shams, 2016). Through the analysis recognised each stakeholder and define
their needs in reference to project and whether they are a primary or secondary stakeholder. After
analysing develop effective strategy which can help to fulfil their requirement. The present report
based on the Facebook, it is an American online social media and social networking services
company based in Menlo Park, California. It was introduced by Mark Zukerberg in February
2012. The report consist of introduction to Facebook, identify stakeholder of Facebook and
categorised on the basis of Swing, Defensive, offensive and hold categories.
MAIN BODY
Introduction to Facebook
Facebook is one of the fastest growing social networks worldwide. It is an American
Online social media and social networking service company based in Melno Park, California. It
is a public type business and founded in February 4, 2004 in Cambridge, Massachusetts. It was
founded by Mark Zukerberg and his room-mate at Harvard. The services of Facebook admittance
from devices with the help of internet connectivity like personal computers, tablets and
smartphones. The products of Facebook like Messenger, Watch, portal and other services. It
acquired Instagram, What's App, Oculus and Grokstyle (Introduction of Facebook. 2019).
Direction means applying new organisational structure and analysis how well the
company is presenting their activities without an understanding of direction of Facebook. The
Facebook is categorised into three levels that will help to understand structure of company. The
executives determine what is nature of Facebook and how changes in direction can be done.
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The vision of Facebook to mostly people utilise Facebook and stay connected with their
beloved ones. They are discovering what is going in the world and share their feelings. The
mission of the Facebook to provide power to develop community and carry out the world closer
together. Facebook focus on the developing values which is set of fundamental, strategically
sound beliefs on a large group of people. Through these values people connected with each other
and focus on the development. From the year 2004 to 2018 company get continuous growth
which is present in a table -
Revenues ( in million US$)
Year Revenues Growth
2004 $0.4 -
2005 $9 2150%
2006 $48 433%
2007 $153 219%
2008 $280 83%
2009 $775 177%
2010 $2000 158%
2011 $3711 86%
2012 $5089 37%
2013 $7872 55%
2014 $12466 58%
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2015 $17928 44%
2016 $27638 54%
2017 $40653 47%
2018 $55013 38%
There is good director who is guiding to employees and time to time apply changes to
provide interesting things to people. There are defined recent developments of Facebook
regarding to growth -
 Recently, Facebook provides news outlets millions of dollars a year to License content –
WSJ
 UK's ICO joins signatories in elevation Libra data covering interest
 Facebook says eliminate legal expenditure connected with FTC settlement & income tax
expenses , Quarterly weak EPS would have been $1.08 higher (Li, Ng and Skitmore,
2018).
Challenges
In the year of 2018, Facebook lost their stock and face various issues, owning to a string
of scandals over Facebook's mishandling of user data and drawn-out outcome to issues such as
foreign election interferences on its platforms. There are discussed about key challenges which is
faced by Facebook -
 More Bad headlines
 Monetization Pressures
 Governances Troubles
 Declining trust in tech
Identify stakeholders of Facebook
Facebook has many stakeholders. A stakeholders define as person and group which
consist of with and effected by an organisation and their activities. One group of stakeholders is
the staff members of the company. These people are influenced by the strategies and policies of
Facebook. There are defined stakeholder of Facebook -
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 Shareholders – Shareholders are defined as a real owner of a business organisation due
to invest money (capital). In return, Facebook provides part of it's capital in the form of
shares equivalent to money invested by these shareholders.. Users – They are the individuals which buy the products and services of Facebook in
return pay some monetary amount to the company. Employees – These are the common people who is working for achieve the specific goals
for an business organization and received salary. Suppliers – These types of stakeholders supply products and raw material regarding to
work. For this company paid set amounts according to products & services. Financial Institutions – They are providing load and other financial services which is
required to operate business in smoothly manner.
 Government – These are preparing rules & regulations and provide licensing for their
work. Facebook has been paid tax on their profitable income.
All the above stakeholder belongs as internal stakeholder which is important for
Facebook because they are providing fund to company to conduct their activities smoothly. They
are preparing strategies and policies to resolve risky issues and aware for market activities that
will influence to business in direct manner (Marttunen, Lienert and Belton, 2017).
Stakeholder categorization & Stakeholder analysis
There are selecting four stakeholders which is categorised into different category - Swing – In the category include owners who have power to changes the rules. Offensive – There are including of suppliers which is exploited things. Defensive – Financial institution are included in this type of strategies because they can
help to Facebook from financial issues.
 Hold – Those stakeholders who can hold the current position of the company such as
users.
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Stakeholder Behaviour – Every stakeholder have own attitude and set of values when
they are disagreement regarding to any topic. These are categorised into three types of behaviour
as per the issues - Competitive threat – According to this behaviour noticed the future that prevent to
Facebook to achieve their goals. It is representing the downside risk which is connected
with dealing with stakeholders. Cooperative Potential – There are stakeholders observing the future that would
assistance the company with the help of desired direction. They are performing the
changes in actual behaviour which would be more helpful for Facebook.
 Actual Behaviour - It is actually focus on the behaviour of stakeholders and defined as
the current position to develop relationship among the organisation as well as
stakeholders on the problems (White and et.al, 2017).
Non reactive approach – Through the range of alternatives a stakeholders has in terms
of focus on possible behaviours. They are focusing to maximise cooperative potential or
minimise competitive threat. The particular approach utilised to deal with stakeholders.
Stakeholders Coalitions – It is defining as final step in producing strategic programs for
stakeholders and find out possible coalitions between different types of stakeholders. They all
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have similar group like cooperative, competitive and actual behaviours basis that may well be
applicants for a coalitions.
Stakeholder Similarity – After analysing the behaviours of different types of
stakeholder it is finding that they have similarity across stakeholders such as
 Objectives – There are defining about the facts together and make rational
recommendations.
 Stakeholders – President, Congress, defence department etc (Varma and Kumar, 2016).
 Beliefs – It is provided continue program which is providing resources already
committed.
Coalitions Types – It is categorised into different types that may be explicit so as a result
they get together and develop plan to live join and take initiative. They may be tacit, whereby
there is an implicit because focus on the various groups which will not illation with other goals
and support to each other regarding to issues.
After analysing of stakeholders it is getting that behaviour and coalitions, better
understand by company to prepare strategic programs which is more likely to be successful. To
prepare effective strategies stakeholder are divided into behaviours after that on the basis of
degree of competitive threat or cooperative potential.
CONCLUSION
As per the discussing it is understand that stakeholders are important part of any company
and play essential role to prepare strategies and development. The rank of Facebook No. 76 in
the 2018 Fortune 500 list of the biggest United states corporations by revenues. On the basis of
revenues it is identified that direction of the company will be gone at good direction and generate
more benefits. On the basis of behaviour they are divided into competitive, cooperative and
actual. These are categorised into swing, offensive, defensive and hold basis and take decision
accordingly.
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REFERENCES
Books and Journal
Shams, S. R., 2016. Branding destination image: a stakeholder causal scope analysis for
internationalisation of destinations. Tourism Planning & Development. 13(2). pp.140-
153.
Li, H., Ng, S. T. and Skitmore, M., 2018. Stakeholder impact analysis during post-occupancy
evaluation of green buildings–A Chinese context. Building and Environment. 128.
pp.89-95.
Marttunen, M., Lienert, J. and Belton, V., 2017. Structuring problems for Multi-Criteria
Decision Analysis in practice: A literature review of method combinations. European
Journal of Operational Research. 263(1). pp.1-17.
Varma, S. and Kumar, G. Y., 2016. Stakeholder analysis for a cross-country pipeline project in
India. South Asian Journal of Management. 23(2). p.131.
White, D. and et.al, 2017. Stakeholder analysis for the food-energy-water nexus in phoenix,
Arizona: Implications for nexus governance. Sustainability. 9(12). p.2204.
Online
Introduction of Facebook. 2019. [Online]. Available through:
<http://www.digitalconnection.bg/en/learning/introduction-to-facebook-65>
Recent developments. 2019. [Online]. Available through:
<https://www.reuters.com/finance/stocks/FB.O/key-developments>
Challenges of Facebook. 2019. [Online]. Available through:
<https://www.thestreet.com/technology/4-key-challenges-facing-facebook-in-2019-
14815098>
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