Strategic Management Report: Facebook's Business and Growth

This report provides a detailed analysis of Facebook's strategic management, covering its business and corporate strategies, environmental analysis using PESTEL, and the application of strategic models like Porter's Five Forces. It discusses Facebook's marketing mix, cost strategies, differentiation, and focus strategies, as well as corporate strategies for growth, stability, and renewal. The report also examines internal factors like management and human resources, and external factors including political, social, economic, and technological aspects. Furthermore, it explores the development of strategic planning using strategy maps and outlines the steps involved in creating a strategic plan for Facebook. The report concludes with an evaluation of the strategies and offers recommendations for sustaining Facebook's market position. Desklib provides access to this and other solved assignments for students.

Facebook Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a. Business and corporate strategies used by Facebook...............................................................3
b. Environmental analysis. ..........................................................................................................5
c. Strategic models.......................................................................................................................6
d. Development of strategic planning by Facebook.....................................................................7
e. Evaluation and analysis of strategies.......................................................................................8
Recommendations for sustaining the position of the Facebook ...............................................10
REFERENCES..............................................................................................................................11

Executive summary
Facebook is one of the social media networking side for the promoting and messaging the
subscribers of the Facebook. It has various advantages for the users such as the user of the
Facebook can upload anything for updating the world about their actions. The Facebook provides
information about the various businesses and the users of the company. It is the most common
app that is used by the all age group of the company. It is a unique innovation for the promotion
and attracting the customers for the various businesses that has their own page on the Facebook.
INTRODUCTION
Strategic management refers the process of making company more competitive in the
competitive market while accomplishing the goals and objectives of the organisation. The most
important part of the strategic management is to set goals and make plans in order to achieve the
mission. It is beneficial and important for the growth and long term success of the business. The
strategic management helps in increasing the efficiency of the employees in operating the
functions of the company. It is essential for providing the directions to the individual and guiding
their behaviour in a particular direction.
The current report will be based on the Facebook, it is owned by the meta platform.
Facebook is the social media platform that helps in connecting the people all over the world.
Facebook app can be operated from any electronic device such as mobile and computer. It can be
used for advertising and creating the brand awareness of the products. Facebook is the one of the
largest networking site of the world, that has provided immense benefits to the person all over
the world.
The report discusses the business and corporate strategies used by the management of the
Facebook for making it the large company in the world. For applying the strategies on the
Facebook, it requires to make external and internal analysis of the company. So, that it can
manage the problems and challenges faced by the company effectively and efficiently.
Furthermore, it will provide about the strategic tools and models used by the Facebook for
expanding its business across the world. The strategies and models are very important to analysis
and to survive in the competitive market. For remaining ahead from its competitors the Facebook
has adopted and framed various strategies and has adopted many technological innovations at the
different levels of the stages of the company.

MAIN BODY
a. Business and corporate strategies used by Facebook
Marketing mix: It refers to those set of actions or tactics that is used by organization to promote
the brand or product in the market (Bansal, and et. al , 2022. ). It has four major segments. They
are:
Price: Under this Facebook focuses on the price of the product that is offered to the
customers in the market.
Product: It includes the improvement and development in the existing product of the
company.
Place: Under this Facebook focusses on the location of the organization, from where the
business is operating.
Promotion: In this segment Facebook focuses on the advertisement and promotion of the
products and services in the market.
Business strategies are the set of competitive moves and actions that Facebook uses to
attract the customers and to compete successfully in the industry (Pommier, and et. al 2022.). It
ensures to strengthen the performance of the organization and helps in attaining the
organizational goals effectively and efficiently (Pinsdorf, M., 2022 ). There are three main
business strategies that is used by Facebook are:
Cost strategies: Facebook focuses on the cost strategies in its business, it includes that the cost
the goods and services the organization is serving should have low costs sop that they can make
high profits (Miroshnikova, and Wickström, 2022). Facebook focuses on to reduce the cost of its
products and services, this results in making higher profits to the organization (Batut, and et. al .,
2022.).
Differentiated products and service strategies: The second most basic strategy that is used by
Facebook is differentiated product and services (Klein, and et. al 2022.). Under this strategy
Facebook focuses to differentiate its products and services with competitors in the market
(Gritsch, Batchelor. and Gonzalez Castro,2022.) It includes sell of very unusual product or
services, these different products works as a competitive advantage for Facebook.

Focus strategies: This is the combination strategy, that includes hybrid of cost and differentiate
strategies (Santri, and et. al 2022. ). Under this Facebook can understand the particular audience
of niche customers or category products. Facebook can serve better products and services than
anybody else in the market, with the help of focus strategy.
The corporate strategy defines as the destination towards which Facebook can move, it
shapes all the strategies and activities in each and every another part of the business (Simpson,
and den Hond, 2022 ). It include three basic strategies that are (Lapointe, Rochman, and
Tufenkji, 2022).
Growth: Under this approach Facebook should focus on expansion and growth of the business.
It refer to expand the business and to increase the profits of the business (Costas, and Company,
2022 ).
Stability: According to this strategy Facebook must focus on maintaining the current business
operations. It is a very useful strategy for Facebook to employ following a period of expansion,
Facebook can assess the b business and determine a way forward or future strategy.
Renewal: The basic goal of this strategy is to get Facebook back in shape and ready to proceed
to either a stability or growth phase. These above mentioned strategies helps in contributing
positive aspects to the Facebook, and also helps in achieving the organizational goals effectively
and efficiently.
b. Environmental analysis.
It is known as the process that identifies the relevant factors that directly on indirectly
impacts on the effective and efficient functioning of business. It a strategic tool that helps in
finding the impacts of internal and external factors on the business.
Internal factors: The internal factors are the anything within the Facebook, and they are
under control of the organization, no matter they are tangible and intangible. Below mentioned
are types of internal factors of Facebook that impacts on the business (Palmeter, and et. al 2022).
Management: It is the most basic and important factor in the internal factors that impacts
directly on the business of the organization. An effective management is the pillar of any
business, because it includes all the correct workings and manages all the functional units of
Facebook.

Human resources: Quality of employees of organization is the most important factor of internal
factor in business environment. The success of Facebook depends on the great extent on the
skills, capabilities, attitudes and commitment of its employees.
PESTEL analysis:
External factors: The external factors includes those factors that directly impacts from
externally on the business of the organization. Factors are:
Political: The rules and regulations made by the government, it includes the taxes and policies
that directly impacts positively (if favourable) on the business of Facebook.
Social: The change in taste, preferences in people and new trends in market directly impacts on
the business of the organization.
Economical : It includes the rates and inflation rates that affects on the business of Facebook,
are known as the economic factors.
Technical: Facebook is a social media platform, therefore, the technical factors impacts highly
on the business, because it includes the delivery of online services by Facebook.
Legal: It concerns with the legislation and acts that are made by the government for the
development of the industry, it positively impacts on the business of the organization. Like,
Information Technology Act.
Environmental: An organization mus consider the factor, that includes the environmental
development (Pinheiro, and et.al 2022). The temperature, climate, noise and pollution density
these factors are counted under the environmental factors, and these directly impacts on the
growth and development of the business (Zhao, and et. al, 2022.).
Facebook is social networking site, therefore it has to focus more on its security aspect
that includes the data leak and fake news issue. After identifying this serious issue on Facebook,
they can make new security strategies that helps them in dealing with this serious problem by
Facebook. This issue can also be resolved by communicating and implementing some new
decisions that considers more awareness in the security factor of Facebook.
c. Strategic models
Strategy models are also known as tools, that helps a company to develop a action plan.
These are the blue prints of the business's growth. Below mentioned are some models that are
useful in forming strategies for Facebook.

Porters Five Forces Model: It is a model that helps in identifying and analysing the competitive
forces in the industry (Hoogsteen, and Borgman, 2022). It also helps in identifying the strengths
and weaknesses of the organization. Five Forces model is consists of:
Competition in the industry: The first among the five forces is concerns with number of
present competitors and their ability to undercut the Facebook. The more number of competitors,
along with the number of same products and services they offer to customer, the lesser power of
the company (Lapointe, Rochman, and Tufenkji, 2022).
Potential of new entrants: The Facebook's power is also impacted by the force of new entrant
into the market. An industry with strong barriers to entry is a role model for existing companies
in that industry (Kertes, and et. al 2022.). Since Facebook would be able to charge higher costs
and negotiate on better terms and conditions.
Power of suppliers: The next factor in five forces explains, that how easily suppliers can drive
up the costs of inputs. This is impacted by the number of suppliers of a goods and services. The
in industry, the more Facebook depends on supplier.
Power of customers: Under this factor, the customers have the ability to drive the prices lower.
It affects Facebook by how many buyers or customers it has and how signifiant each customer is
in the market (Mattu, and Hill, 2022. )_.
Threat of substitutes: Facebook has the threat with the substitutes of its i9n the market. There
are many other social networking sites also that provides as such services like Facebook.
Therefore, they have the threat of shifting of their customers of switching to substitute products.
d. Development of strategic planning by Facebook
Strategy Map: It is a visual tool that is designed to clearly communicate a strategic plan and
attain high level business goals and objectives. It is a part of balanced scorecard,that is generally
categorized in four major segments. They are: financial perspective, customer perspective,
internal perspective and learning and growth perspective. It provides simple and clean visual
representation that easily refereed back to (Giuliano, and et. al 2022.) It also unifies all goals into
a single strategy, and helps in identifying the key goals of Facebook.
Strategic planning is a process in which the managers of the company determine the
vision for future and also identifies the goals and objectives of the organization. Developing the
strategic plan helps the management also to make effective decisions for the business. The

process that is used by Facebook to develop the strategic plan is consists of major seven different
steps. They are as follows:
Identify the need of strategic plan: The first and foremost step in development the strategic
plan is to identify the need and want of plan in the organization. Facebook has to identify the
issue that require the need of plan in the business development (Blind, and Fenton, 2022).
Set goals: Setting of goals is the second step in the process of strategic planning. Facebook has
to set goals of profit maximization and expansion of the business.
Strategy formulation: Under this step the organization develops a strategy, that is suitable for
the current situation of Facebook. The basic purpose of this is to identify the opportunities of the
organization. Formulation of strategy helps in long term effects of business success, formulating
suitable strategy also helps the management in future planning of the business (Belaid, and et. al
2022 ). For example Face book use the strategy of joint venturing to maximize the profits in its
business. This strategy is also useful in the growth and development of business of Facebook.
Strategy implementation: After formulating the strategies, now Facebook needs to establish
particular target or goals that is related to implementing the strategy into action. It also includes
the allocation of resources for strategy execution (Walles, and et. al 2022). In reference to
Facebook, they can now implement the joint venture approach to achieve the organizational
goals effectively and efficiently (Domínguez Sánchez, and et.al2022).
Evaluation of strategy: Under this strategy, the management evaluates the results that comes
from implementation of the strategy in organization (Collu, and Mlodzik, 2022). After
implementing the strategy to improve customer services, Facebook may discover that they need
to adopt customer relationship management program in order to achieve improvements in
customer relation (O’Kelly, and et. al 2022. ). This results in attaining the organization goals
effectively and efficiently (Gilbertson, and et. al 2022.). Evaluation also helps in comparing the
previous and current situation or position of Facebook in the market (Deckard, and Auyero,
2022).
e. Evaluation and analysis of strategies.
Blue ocean strategy tool.
It is a strategic tool that analysis the market, under this the organization has less
competition or sometimes no competition in the market (Tang, and et. al 2022.). In this strategy
the product has fewer competitors that helps in maximizing the profits of Facebook.

Strategies are the general plan that helps an organization in attaining the goals and
objectives of the business effectively and efficiently (Kumoji, and et. al 2022.). Facebook has
used business and corporate strategies in order to increase the performance of the organization.
Therefore, there are some strategic issue in these strategies that has to be evaluated and analysed
by the organization (Macioszek, and Kurek, 2022. ).
The positive impacts
The business strategies include three major factors, that are: cost, differentiated product
and services and the last is focus (Kessler, and et. al 2022.). Using cost as a business strategy
helps Facebook in attracting the customers (Safaeian, and et. al 2022.). Low costs gives the
advantage to retain more customer in the market. The differentiated product and services is a
competitive advantage for Facebook, because serving different product in market is the plus
point to the organization. Customer accepts new and unusual products in the market (Callaway,
and et. al 2022. ). The focus factor in business strategy concerns with the focus of attaining the
organizational goals.
The corporate strategies are mainly concerns with the growth, stability and renewal of the
business. The growth factor focuses on the development and expansion of Facebook, this helps
the organization in achieving the vision of the company. Stability relates to maintaining the
significant position in the industry, it helps in making the business sustainable for the future
(Johnson, and Hastings, 2022). Renewal helps in reshaping the organization if any drop fall
occurs in the business of Facebook.
The negative impacts.
Decreasing the cost factor in the business strategy can impact negative also on the
business of Facebook. It is because lower the price of products and services may not give
expected profits to Facebook. Serving different products and services is sometimes a challenge
also, because the most of the times customers don't like to try new products. Therefore,
delivering different product and service to customer is a challenge also for Facebook.
Sometimes growth may build over confidence into the organization, which can create a
negative impact on the business of Facebook.
Under Blue ocean strategy the organization has less or sometimes no competition in the
market. This strategy revolves around the searching for a business in which there will be no
competition or less competition in the market. But in case of Facebook it will result as a negative

strategy because, Facebook has high competitors in the market. Therefore, application of this
strategy is a struggle to the business of organization. Facebook has intense competition in the
market, such as: Snatch and Telegram. There are the some issues that will be faced by Facebook
in applying the strategies into the organization (Khin, and Kee, 2022).
According to the knowledge of Swarbrick, and Partridge, (2022.) , the strategies are
useful in the development and growth of the business. The above mentioned strategies helps a
business in making more durable and also sets up a sense of direction to Facebook. The
strategies are beneficial in increasing the operational efficiency of the organization (Chen, and et.
al 2022). For example using these strategies by Netflix can increase the profit margin of its
business. It also helps in gaining new customers from the market (Zhang, and et. al 2022).
Effective strategies also enhances the productivity in the employees of the organization. A
productive employee is beneficial in the development and growth of the business. Strategies are
also very useful in making future decisions for the organization.
As per the Mariath, and Martins, (2022) strategies are useful in measuring the success of
the organization, without making business strategy it can be difficult to measure success because
an organization wont be able to know what they are trying to achieve. A business strategy sets
targets that will allow Facebook to measure its success by comparing itself with competition
(Mostofa, and Brasted, 2022 ).
Recommendations for sustaining the position of the Facebook
For sustaining the marketing position of the Facebook, the company has adopted various
strategies and improvement in the functioning of the company. There are some other
recommendations that Facebook can adopt for surviving and sustaining its leading position in the
market.
1. The main purpose of operating Facebook app is to do private messaging and forming
groups on the app. So, it should provide affirm privacy and security to the users for
gaining the support and increasing its subscribers within a short duration. It is
recommended that company should engage themselves with such infomation techniques.
That helps in securing the data of the clients so, that data remains safe and secure.
2. There are various competitors of the Facebook. For overcoming this and leading the
market the company should use aggressive marketing strategies. It is recommended that

Facebook should use Email marketing as the strategical tool for expanding its business a
for the growth in the global market.
3. For sustaining its position in the market, it is recommended that Facebook should
introduce new and upgraded features to the users so, they can gain higher competitive
advantages in the market. For this company can provide payment system through its app.
So, that it will become easy for the individual in using Facebook. This feature will add
value in the brand image of the company.
4. For protecting the users of the company from the cyber crimes, it is recommended that
the company should use such tools and practices that protects the data of the company as
well as the data of users. As it is open to all and can be accessed by anyone the threat of
cyber crime is high in the company.
5. Facebook is facing the problem of generation of the fake news that has lead to the
downfall in the image of the company. So, for mitigating with this problem, it is
recommended that company should promote and clear its image by providing details
about the negative and fake news of the company. And by providing clarification for the
wrong news spread by the competitors.
Fake accounts created by the users has the negative impact on the brand image of the company.
It is recommended that automated artificial intelligence system should be used for prohibiting the
fake accounts from spreading negative information about the company.

REFERENCES
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