Global Strategic Management: Strategic Analysis of Facebook (BA)

This report provides a comprehensive analysis of Facebook's global strategic management, examining its business and corporate strategies, internal and external environment, and strategic tools for enhancing organizational performance. It uses models like Porter's Generic Strategies, BCG Matrix, PESTLE, VRIO, McKinsey 7S, and Gap Analysis to assess Facebook's competitive advantage, market position, environmental impact, resource utilization, and strategic alignment. The report also explores how Facebook's CEO managed complex problems and offers suggestions and recommendations for contemporary strategic issues. Desklib is a platform where you can find similar solved assignments and study resources.

Global Strategic
Management

Executive Summary
Global business is the type of company which is operating its business across the world
and generating more revenue. Porter's generic model and BCG Matrix is being used to frame the
strategies which contribute to the positive outcome of the business. Pestel analysis and drive and
various model is being used in order to analyze the impact of external environment and the
resources of the company. Moreover, Mckinsey 7s model and gap analysis model is being used
in order to understand the actual end desire performance of the company by assessing the various
components of the business that includes structured style skills of the company.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
Examine the business and corporate strategies about the positive contribution to the company.
................................................................................................................................................1
TASK B...........................................................................................................................................4
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO........................................................................4
TASK C...........................................................................................................................................6
Describe the strategic tools to enhance the overall organisational performance....................6
TASK D...........................................................................................................................................9
Examine the concept and model to develop and design the strategic planning.....................9
TASK E..........................................................................................................................................11
Evaluate the various contemporary strategic issues in strategy by using concepts and model11
Suggestions and recommendations................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Global business defined as the international trade in which the global venture is operating its
business across the globe. This exchange of goods and services goes back a very long
time(Tsatsoula, 2018). For this respective report, Facebook is the chosen business, It is the
American social media and networking services which is being managed and founded by Mark
Zuckerberg in February 4, 2004. It is the global business which is operating its business in the
world which connect the people together. This respective report will analyse the corporate
strategies related to the positive contribution to the organsiation and also access the internal and
external business environment. Furthermore, this also describe the strategic tools which enhance
the overall performance of the company and also examine the model to develop the strategic
planning. Lastly it will cover the corporate level strategic to evaluate the overall working of the
company with the necessary suggestions and recommendations
TASK A
Examine the business and corporate strategies about the positive contribution to the company.
Business strategy
It refers to the actions that is being taken the manager of the company for implementing
the plan for attaining the goal of the company. These are the general directions that are being
followed by the company and its employees. In context to Facebook, concepts and model is
being use analysed the strategies for global business are given below:
Porter's generic strategies
This is the model which benefit in identifying the ways in order to meet the competitive
advantage the vantage in the large market. There are basically 3 types of strategies that are
further explained in consideration to Facebook.
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Figure 1, Porter's Generic Strategies, 2007
 Cost leadership: By using this strategy, the customer who always look for the prices can
get a better services with the Facebook by giving them various offers on subscription and
the usage of Internet.
 Differentiation: With this strategy, an organization can offer the innovative and
advanced products to their customers by which they can be unique from the other brands
that are operating in the social media and networking business(Suoniemi and et. al.,
2020). Facebook can launch their products like Instagram which can leads to get huge
success due to its accessibility and unique features.
 Focus: It is the strategy that focuses on the specific market segment in consideration to
cost focus and differentiation focus. Facebook require 2 require to offer it services at
lower prices and with innovative feature to the specific group of people.
The BCG Matrix Model
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Boston Consulting Group is the growth-share model which is use to given the graphical
representation of the products and services of the company in the direction to help them to decide
what must be keep, sell or invest more in. In context to Facebook, following category are
explained as follows:
 Star: It is the category in which the given products is having high growth and market
share. In relation to Facebook, Instagram is star products as it has the high market share.
It is currently leading growing SBU and has double the userbase to 700 million active
users on monthly basis in 2 years.
 Question Mark: It hold the low market share in leading growing market and Facebook
has the Oculus in virtual reality as hardware and software products. Huge investment is
being required in research and development yet there is no certainty that Oculus will get
success. As per the report of NYTimes, Zuckerberg plans to invest $ 3 billion over the
next decade to bring more users to the VR.
 Cash Cows: These are the leaders who generate more cash than they consume as they
have high market share in slow-growing market. WhatsApp is the considered in this
category as investment is hence deemed unnecessary.
 Dogs: It is the category in which the products is having low market growth and low
market share. For this, messenger is the one who comes in this category, since everyone
is using WhatsApp and the app like messenger seems useless.
Vertical and Horizontal Integration Model
Vertical Integration is the strategy which helps an organsiation to operates its operations
by taking the direct ownership of certain stages of production rather than relying on the suppliers
or the contractors. Facebook can use such integration by which they can ensures the business
operations is being held within the company itself. It can be done by doing backward integration
in which the ownership controls the products in the early stage of supply chain. Whereas the
forward integration expands by accessing the control of the distribution process for their finished
goods. This strategy will help the Facebook to overlook its supply chain in an appropriate
manner.
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TASK B
Illustrate the internal and external environment analysis and understand how the complex
problem at Facebook were managed by CEO.
PESTLE analysis
PESTLE analysis is mentioned below: It is the framework of analysing the external
factors which is impacting the overall functionality of business. In relation to Facebook, these are
given below:
Figure 2, Scanning the Environment: PESTEL Analysis, 2016
 Political factors: Facebook is one of the leading communications that are being used by
the politicians to get the ideas and vote for them. They have targeted the audience by
promoting the messages on Facebook and that is why the political leaders focuses on
Facebook.
 Economic factors: They have increased the business participation with the help of
advertising customer referrals and contribute the brand value of Facebook with worth of
around 47.3 billion.
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 Social factors: Facebook continuously helping the people to stay in touch with the
friends, relatives across the world with the help of Internet. It is becoming the hub for
socializing, also helped the small business to promote their products as well.
 Technological factors: Facebook uses a huge variety of services programming language
and tools to make it infrastructure more unique and technological (Navissi and et. al.,
2017). They are using LAMP (Linux, APache, MySQL, PHP).
 Legal factors: There are various laws which are being made to control the overall
working of social media platforms and Facebook is following the communication act and
the criminal Justice by which are being written to control the smart phones of the people.
 Environmental factors: Facebook is helping the people to change their lives because
they gained the opportunity to socialize with the other people without calling them doubt
calling them and they can know their news.
VRIO framework
It is the framework which is abbreviated as valuable, rarity, immutability and the
organization. This is being used by the company to analyze the internal capabilities and the
available resources of themselves. In contexts to Facebook, following factors are given below:
Figure 3, VRIO: From Firm Resources to Competitive Advantage, 2016
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 Valuable: Facebook is having a global market, which is the valuable aspect for the
company so that they can generate more revenue and profitability and take competitive
advantage from their rivals, With the benefit of having top leading brand in the world.
 Rareness: Facebook is operating in a large platform due to which they are having large
are having large audience and also the financial strength which is the rare resources to the
company. This helps them to operate its business on larger segment and generate more
revenue.
 Imitable: Facebook is having a imitable resources that includes technological innovation
which is helping them to generate more revenue(Leischnig and et. al., 2017). The brand
awareness of Facebook is extremely high that cannot be copied by any other phone till
now.
 Organisation: It is vital for the company to have organized resources in an optimum
manner. The organizational culture and the human resource management of Facebook is
organized as they are having a proper hierarchy to recruit a person and giving them a
better working conditions.
TASK C
Describe the strategic tools to enhance the overall organisational performance.
Gap Analysis Model
It is the model which help in comparing the actual performance with the desired result. This
method helped in identifying the strategies, structure, capabilities, technologies, skills that helps
them to meet out the goal of the company. In contexts to Facebook, McKenzie’s 7S model and
Ansoff matrix is being used is being used in order to analyze the gap between the actual and the
desired performance of the company and these are given below:
McKinsey's 7S model
It is the framework which helps in understanding the organizational design by identifying
the seven internal components of the Facebook that are given below:
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Figure 4, McKinsey 7S Framework, 2018
 Strategy: This is the plan that is being formulated by an organization so that they can
have the competitive advantage. When the Facebook do not have the appropriate strategy
then they tend to face the issues related to customer dissatisfaction and revenues(Kong
and et. al., 2020).
 Structure: It explains the hierarchy in which the business unit and the departments are
operated. When the Facebook do not have the proper structure, it leads to reduce the
overall efficiency of the company.
 Systems: This refers to the process which aim to complete the operations which is being
conducted on daily basis. Ensuring better system that benefits the manager in
implementing any organizational change which will help the Facebook to sustain in the
market.
 Skills: It is related to the abilities of the employees that are working in Facebook and
allow capable employees to dealing with complex situation.
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 Style: It is the style which is being followed by the leader of Facebook, Mark Zuckerberg
is following transformational leadership style in which they are aggressive and assertive
to change.
 Staff: It is the factor which is related to the number of employees who are working in
Facebook. This also includes training and reward management of them.
 Shared values: This is the core of this model which includes the norms and standards
That must be followed by the Facebook to understand the behavior of employees.
Porter's five forces
It is the strategic framework work which help in taking a better strategic decision by analyzing
the future outcome. In relation to Facebook, following aspect are given below:
 Threat of new entrants: There is not so high threat from the new coming firms as
Facebook is the leading company which is operating at global level and this is not
possible for the new investors to invest in their operations and comparison to the
Facebook(Karyani and R Rossieta, 2018).
 Bargaining power of suppliers: There are not so many firms who are operating in the
social media and networking companies can companies and Facebook is the leading
company in the world which is operating with their wide variety of product that includes
Instagram, Messenger WhatsApp. Thus, the bargaining power of supplier is tend to know
because the CEO is giving competitive pricing toward services by which they retain with
them in long run.
 Bargaining power of buyers: As of now people are connected with the Instagram
Facebook and WhatsApp, it is very tough for the people to get out from their habits of
making reels, exploring Instagram for hours so the bargaining power of supplier also not
so high in the market.
 Threat of substitutes: There is substitute for social media platform and social
networking as the people can you can go with the direct contact so there is a threat from
the substitute for Facebook due to the changing habits of the people.
 Rivalry among existing competitors: There are many competitors who are operating in
social media platforms that includes Twitter, Snapchat, Pinterest and so on. Thus, the
threat from competitive companies is high as the rivals can change their services and
operations as for the current trends of the market
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TASK D
Examine the concept and model to develop and design the strategic planning.
SWOT Analysis
Strengths Weaknesses
 Facebook have the integration with
the various applications and the
website(Cleberg, 2019).
 They are offering excellent user
experience it is which is making them
leading brand in the world.
 They are having weak CTR of
advertisement.
 They are having a lack of enough
website customization Which make
them weak in the market.
Opportunities Threats
 As people are increasing with the use
of Facebook with the help of their
mobile phone.
 They can diversify their source of
revenue and also leads to have open
Facebook marketplace.
 Rise in number of mobiles with the
Internet users that users become a threat
for the Facebook.
 They are having weak business model
to sustain in the market.
Ansoff's matrix
It is defined as the strategic tool which help in planning, the manager can implement the
right strategy for the growth. In contexts to Facebook such strategies are given below:
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