Facebook, Inc.

BSBA-3A

Group 3:

Deleon, Jena

Labitad, Jhea Fel

Paras, Princess

Samson, Reysell

Santos, Vanessa

Venturina, Leila
 May 2021

I. Company Background

A. Current Performance

Mark Zuckerberg founded the world's largest and most well-known social network in

early 2004 while still a Harvard University student. The Facebook, as it was then called, was

created to act as a digital version of Harvard's various colleges' 'face books,' which were paper

directories containing photographs and personal information about students. This feature has

evolved over time to include multimedia content as well as ‘sharing,' which is the re-posting of

content originally shared by someone on Facebook or elsewhere. All of this now seems

primitive, but at the time, Facebook and other participants of the first post My Space wave of

social networks were groundbreaking inventions.

People use Facebook on a daily basis to share their lives, connect with friends and

family, and form communities. They are a service that allows more than two billion individuals

to freely express themselves in dozens of languages across countries and cultures. There are

2.80 billion monthly active users on Facebook (Facebook, 2021). If that figure doesn't impress

you, consider that 1.84 billion people use social networking sites on a regular basis. This

indicates that users were using at least one of Facebook's main items, such as Facebook,

WhatsApp, Instagram, or Messenger. With Facebook's vast reach and popularity among

advertisers, it's no surprise that advertising accounts for the majority of the company's

revenue.
 According to Google, in the fourth quarter of 2020, the company brought in $27.2 billion

in ad revenue (Facebook, 2021). That puts its average revenue per user at $10.14. Not only

does its ad revenue make up nearly all (96.8 percent) of its $28.1 billion revenue for the entire

quarter, it’s also a 31 percent year-over-year increase. In fact, Facebook earned significantly

more in ad revenues in 2020 than it did the previous year. Totaling $84.2 billion for the year,

that’s 21 percent more than in 2019. This is even more impressive considering Facebook

experienced a “significant” fall in ad demands at end of the first quarter of 2020 as a result of

the coronavirus pandemic. This was evident in the higher seasonal fall in ad revenue from the

final quarter of the previous year to the first quarter of the following year. For instance,

Facebook’s 2020 first-quarter ad revenues fell 15.9 percent from the $20.7 billion generated in

2019’s fourth quarter. In comparison, 2019’s first-quarter ad revenues fell just 10.4 percent

from the previous quarter.

B. Strategic Posture

Facebook's current mission

Facebook’s mission is to give people the power to share and make the world more open

and connected.” It simply means that Facebook wants to bring the world closer together. To

empower individuals to develop community and bring the globe closer together. This shows

that they can't do it alone, and that the only way to achieve it is to empower people to form

communities and bring people together.

Facebook's vision
  Give People a Voice - Facebook thinks that everyone deserves to be heard and have a

voice, even if it means standing up for the rights of those with whom they disagree.

 Serve Everyone - Facebook strives to make technology available to all people, and its

business model relies on advertisements to keep its services free.

 Promote Economic Opportunity - Facebook's products help businesses grow, generate

jobs, and build the economy by leveling the playing field.

 Build Connection and Community - When their services are at their best, they assist

people in connecting with one another and bringing them closer together.

 Keep People Safe and Protect Privacy - They must encourage the best of what

individuals can achieve when they collaborate by keeping people safe and preventing

harm.

Facebook’s Policies

Facebook developed a set of Community Standards that outline what is and is not

allowed in Facebook. The community's feedback and the opinion of professionals in disciplines

such as technology, public safety, and human rights inform their decisions. Facebook always

makes sure that everyone's voice is valued and takes great care of craft policies that are

inclusive of different beliefs and views. One of their goals in this Community Standard is to

create a place for expression and give people a voice.

Here are some of their Community Standards

 Violence and Criminal Behavior - Facebook wants to avoid any offline damage that could

be caused by Facebook content. They recognize that people often demonstrate disdain
 or disagreement by threatening or calling for violence in non-serious ways, but they

exclude language that incites or encourages serious violence.

 Safety - Facebook is extremely concerned about the safety of those who use their apps.

They meet with experts in suicide and self-injury on a daily basis to help educate their

policies and enforcement, and they collaborate with groups all over the world to help

people in crisis.

 Privacy Violations and Image Privacy Rights - For Facebook, privacy and the security of

personal information are core principles. They work hard to protect your personal

details and reputation, and they do not encourage people to post personal or sensitive

information about themselves or others.

II. External Environment

Poster’s five (5) Forces.

The Porter five forces model is common among investors and analysts because of its

simple yet effective methodology. Michael E. Porter created it as a tool for measuring and

analyzing a business organization's competitive strength and role.

The following are the components of this Porter’s five (5) Forces:

 Supplier Power

o Facebook Inc.'s social network and display advertisement services are influenced

by a variety of factors, including suppliers. This component of the Five Forces

analysis demonstrates how suppliers influence businesses and the industry

climate.
 o Servers and associated storage and network technology/equipment, as well as

office supplies, are examples of Facebook's supply needs. Some suppliers are

large corporations with a moderate impact on the company.

o The following external factors lead to the weak bargaining power of suppliers on

Facebook Inc.:

 Moderate size of individual suppliers (moderate force) - Servers and

associated storage and network technology/equipment, as well as office

supplies, are examples of Facebook's supply needs. Some suppliers are

large corporations with a moderate impact on the company. These

supplies, on the other hand, are available from a variety of suppliers.

 Large population of suppliers (weak force) - The large supplier population

is an external force on Facebook Inc. that exerts a weak force.

 High overall supply (weak force) - reduces the impact of individual

suppliers on the business.

 Buyer Power

o Many people have several social media accounts and use them. A user's time on

Facebook and its other pages decreases as his time on Facebook decreases.

Customers of Facebook have a lot of economic power as a result of this. After all,

Facebook is free to use, so switching networks isn't expensive – and social media

sites aren't mutually exclusive.

 o Customers put pressure on Facebook Inc. by telling the company what they

want. This part of Porter's Five Forces Analysis model examines the effect of

customers or buyers on the online display advertising industry landscape.

o The following external factors lead to the strong force of customers’ bargaining

power on the company’s social network and related services:

 High substitute availability (strong force) - Facebook's members/users

have access to social media services. Advertisers, on the other hand, are

the company's main source of sales. These marketers have the option of

using readily available substitutes.

 Low switching costs (strong force) - Customers can easily turn away from

the company's social networking website, mobile applications, and

advertisement services because of low switching costs. This aspect has a

significant negative impact on the business.

 High demand from buyers (weak force) - The high demand for online ads

dampens marketers' future shifts and weakens consumers' purchasing

power marginally.

 Competitive Rivalry

o Despite its dominant position in the social media industry, Facebook Inc. faces

considerable competition. The impact of competitors on the company's industry

environment is determined by this component of Porter's Five Forces Analysis

model.
 o The following external factors lead to the moderate force of competitive rivalry

against the company:

 Small number of firms (weak force) - Just a few companies provide online

display advertising services similar to those provided by Facebook Inc. For

example, YouTube LLC (a subsidiary of Google LLC) has a social media

website that offers targeted online advertising service.

 Moderate variety of firms (moderate force) - The diversity of these

businesses attracts advertisers, resulting in a moderate force in the

industry.

 Low switching costs (strong force) - Low switching costs (the ease at

which marketers can migrate from one supplier to another) make it

easier for them to switch away from the business and toward rivals.

 Threat of substitution

o Substitutes may have a negative impact on Facebook's market success and pose

challenges in the social networking company's industry. This factor of the Five

Forces analysis considers the impact of substitution.

o The most notable external factors that create the strong threat of substitutes

against Facebook Inc. are as follows:

 Low switching costs (strong force) - Instead of paying for Facebook's

social media ads, advertisers can easily pay for alternatives such as

television, radio, and print advertising.

  High substitute availability (strong force) - The abundance of such

substitutes has a significant impact on the industry's climate.

 Moderate cost of substitutes (moderate force) - Many of these

alternatives are more expensive than Facebook's advertising services,

especially television advertising. Such a cost situation has a moderate

impact on the company.

 Threats of new entrants

o New players in the industry are having a negative impact on the social media

behemoth. The effect of new firms on the market is covered in this section of the

Five Forces review.

o In this external analysis case of Facebook Inc. and its social network and related

products, the following external factors lead to the weak threat of new entry:

 Low switching costs (strong force) - Due to the low switching costs (low

difficulty) of advertisers switching from one service provider to another,

new entrants exert a powerful force against Facebook.

 High cost of brand development (weak force) - It's difficult to build a

successful and trustworthy social media brand like Facebook's.

 High cost of customer loyalty (weak force) - It's also difficult to earn

marketers' and users'/members' loyalty. This external factor reduces the

possibility of new competitors entering the market.

III. Internal Environment

 Resources, Capabilities, and Core Competencies

The success of Facebook is attributed to its capabilities and resources. These resources

have been utilized to support new ideas, goals, and company objectives. For the business to

achieve the latter goal, it has considered the following internal competitive environment. The

company's skills include the capacity to create improved models as well as the capacity to select

the best corporations or organizations to acquire. These capabilities explain how Facebook has

been able to buy startups like WhatsApp, Face.com and Instagram. These businesses appear to

believe in Facebook's original business model and mission statement. The first unique

competency is the company’s decision to say something and pursue a totally different

obligation. For instance, Facebook promises people that its agenda is to connect and build

global communities. The company's second skill is its capacity to build a network that connects

a large number of people through platforms like Messenger, Instagram, and WhatsApp. Such

skills have made it easier for the company to fulfill its objectives.

MARKETING
Resources Capabilities Competences

Facebook marketing refers to Blueprint offers training on

creating and actively using a everything from campaign
Facebook page as a optimization and how to use
communications channel to video on Facebook to
maintain contact with and effective ad measurement
attract customers. It is a new solutions. Facebook
1. Blue Print: Training
education program that marketers uses a powerful
for agencies and big trains agencies, partners and mix to attract more
branch marketers on how to use customers and meet the
Facebook, so they can create needs of diverse users.
better campaigns that drive Combining online courses, in-
business results. person training and
 certification. Because
blueprint eLearning center is
available in English on
desktop and mobile to
anyone with a Facebook
account.
Facebook also did a strategic Zynga is expected to not
partnership or alliance with launch their games on any
Zynga. Zynga is a well-known other media social except for
web-based game developer Facebook. Also with this
2. Zynga especially on social media. By agreement, both Zynga and
doing this Strategic Alliance, Facebook agreed to have a
Facebook expected to help sharing profits that
Zynga to get users to play generated from the
Zynga games and reached advertising when the games
their monthly target. is played by the users.
Facebook have been doing Yahoo! manage to have a
strategic Alliance with Yahoo! new feature called “social
On 2012. Both companies bar” and through this
have made an agreement strategic alliance they have
that they will work together 90 million users that using
to provide new this new features and
advertisement, broaden their become the most leading
3. Yahoo! distribution arrangement social news application.
system and also clear up the
patents issue they have been
encountered before. By
doing this Strategic Alliance,
the advantages that both
companies received is users
of Facebook and Yahoo! are
 capable to discover new
information and share those
information among their
friends on Facebook.
It is used to promote the Helps the website to
website and social encourage more people to
advertisements are highly sign up. Words of mouth or
4. Sponsorship recommended. There is also emails are two great
the use of viral marketing, examples of the viral
which is a marketing process marketing of Facebook.
that persuades people to
pass on a message.

FINANCE
Resources Capabilities Competencies
They have the best people in The human resources bring
the industry in their office Facebook to a strong
reflected by their aggressive intellectual capital with many
acquisition as quoted by their patent they make and from
owner “We have not once acquisition they get even
1. Human, Intellectual bought a company for a more technology. Meanwhile
and Finance company, we buy the Facebook has the biggest
companies to get excellent asset in social network
people”. industry to date with total
asset more than 15 billion
dollar in 2012.
Facebook always recruiting Facebook focus on excellence
good quality of human in recruiting, In 2013
resources because Facebook was listed as the
employees are high value No. 1 by
2. Human corporate asset. They never Glassdoor for having the
deplore to invest for their most satisfied employees.
employees for example a
single engineer is worth up to
$1 Million.
Facebook source of financial Facebook source of financial
was from social advertising was from social advertising
3. Social Advertising $3.1 Billion. The advertiser is $3.1 Billion.
their customer, also the one The advertiser is their
who paying Facebook to use customer, also the one who
the platform. paying Facebook to use the
platform.

OPERATIONS
Resources Capabilities Competencies
Facebook does not oblige its This means the intellectual of
workers to have college employees are not limited by
degree because Mark focus academic theory only but
1. Intellectual on soft skill of their employee they must be creative,
such as build awesome stuff innovative, and out of the
which is can give big impact box.
for company.
As Facebook have an Facebook provides a platform
advantage of being a social that enables them to monitor
media and having this their current employee or
2. Searching for the platform enables them to even the new employee
right employee collect and analyze the data they’re going to hire.
of its users. Facebook also often
screening for the most
appropriate employee for
 them. This platform gave
Facebook another way to
reach innovations.
Facebook Inc. maintains This is a matrix organizational
corporate teams based on structure, some function-
their business functions in based teams have blurred
3. Corporate Function- managing the operational boundaries with geographic
Based Teams. activities throughout the or product-based divisions in
organizational structure. This the company. A Facebook
structural characteristic is senior manager or executive
based on the various needs heads each team.
of the online social media
business, such as Research
and Development (R&D).
This structural feature Most of the company’s
involves corporate or global operational activities are
teams that manage the focused on its social
operational activities networking website,
pertaining to specific potential expansion and
products of the organization. diversification are also
4. Product-Based Such global or corporate considered. Facebook is
Divisions scope is a consequence of headed toward adding more
the digital and online nature product-based divisions into
of Facebook’s social media its organizational structure,
business. as new products or ventures
are added to the business.
Facebook aim to improve our To make significant
existing products investments in product and
continuously and to develop feature development, data
new products for our users, management and
 developers, and marketers. personalization technologies,
Their product development large-scale systems and
5. Information philosophy is centered on scalable infrastructure,
Technology continuous innovation in mobile technologies, and
creating products that are advertising technologies.
social by design, which
means that Facebook
products are designed to
place people and their social
interactions at the core of
the product experience.

IV. Corporate Level Strategies

The goal of Facebook's growth plan was to increase user engagement across all its social

media platforms while also expanding its international market penetration. Aside from

competition from other social media networks, like YouTube, the corporation confronts other

problems, particularly in terms of user privacy and data security. Facebook use growth

strategies and under of this strategy is the horizontal growth where the diversification is a key

component of Facebook Inc.'s growth strategy. The major goal of this aggressive expansion

strategy is to start new enterprises. For example, the company bought Oculus VR to provide

virtual reality technology that works in conjunction with social networking services. The

strategic goal of Facebook Inc.'s intense growth strategy is to enhance revenues and market

reach by purchasing or establishing new subsidiaries or businesses.

Facebook horizontal growth strategy

 Facebook exists in an entirely different context from others. More than 1.5 billion people

use Facebook already. However, the world's population is 7 billion people (5.5 billion of whom

do not live in China). That is a lot of room for expansion. As a result, the path to horizontal

expansion for Facebook is less about gaining market share from competitors and more about

bringing more people online. As a result, the Internet.org initiative was created with the goal of

providing Internet access to everyone (particularly in poorer nations).

Facebook vertical growth strategy

Facebook is much more focused than others. There a few areas in which Facebook is

heavily investing like with the acquisition of WhatsApp, the effort to purchase Snap Chat, and

the acquisition of Instagram, there has been a lot of messaging. Some aspects of Facebook's

vertical growth include a greater integration of corporate activities within the platform. In this

regard, Facebook is emulating like WeChat by attempting to turn its chat program into a

platform for customers to communicate with businesses (with the introduction of new

"Facebook for Business" capabilities).

V. Analysis of Strategic Factors

Facebook’s Strengths

1) Strong Brand

Facebook Have a strong brand and it is vital both for stability and long-term

sustainability. In 2019, Facebook was ranked #5 most valuable brand by Forbes. With $88.9

billion in brand value, Facebook is the strongest brand in the social media industry globally that

is surely helps people in communicating.

 2) Loyal Customer Base

Nothing communicates a company’s strength, stability, and success more than a large

and ever-growing number of extremely loyal customers. About 40% of the world population

uses Facebook and its family products (Instagram, WhatsApp, Messenger), putting Facebook in

an irreplaceable position.

3) Visionary Leadership

The impeccable and visionary leadership of Mark Zuckerberg is a strength that most

companies in the world can only dream of. The fruits of Zuckerberg’s strong visionary

leadership include company culture, stability, increased profitability, innovation, and

sustainability with minimum internal wrangles within its ranks and management, unlike most

other companies.

4) Strong Advertising Business

Even though Facebook is synonymous with social media networks, the major source of

its revenue is from the advertisement. In 2019, $69.66 billion (98.5% of its $70.70 billion

annual revenue) came from advertising.

5) Effective Marketing Strategy

Facebook’s marketing is simple. The fact that over 2 billion people use their applications

every day makes it a very powerful and effective marketing tool.

Facebook’s Weaknesses

1) User’s Privacy Concerns

In this Facebook is facing backlash over its negligence in the protection of user’s privacy,

with the company experiencing a decline in popularity in some regions across the word, if the
company does not address users’ privacy concerns promptly and effectively, it risks losing its

popularity. According to Edison Research data, Facebook has lost about 15 million users since

2017.

2) Overdependence on Advertising

Facebook business model relies heavily on advertising for its revenues. About 98.5 % of

its annual revenue comes from advertising. In 2019, Out of $70.70 billion annual revenue,

$69.66 billion was its advertising revenue.

3) Spreading Fake News

Facebook has been under a lot of criticism for spreading fake and misleading

information. Facebook’s inability to control misleading information can be very detrimental to

society at large.

4) Friction in Management

Consecutive scandals have been disintegrating the harmony that existed between top-

level management since the company was founded. The need for accountability is turning into

a weakness as top executives point fingers and seek to distance themselves from major

scandals such as the Russia meddling scandal

Facebook’s Opportunities

1) Diversify Portfolio

Even though Facebook Inc. owns WhatsApp, Instagram, Messenger, and other

platforms, the majority of its business revenue is dependent on social media and advertising.

Facebook has the opportunity to extend its portfolio beyond the social media industry.
 2) Expansion of Existing Platforms

With billions of users, Facebook can expand its existing services such as marketplace,

online video streaming, online dating, business tools, e-wallet, etc. to compete with giants

such as Amazon, eBay, YouTube, Netflix, Apple, Tinder, PayPal, etc.

3) Increasing Integration to other Applications

As technology advances, more and more applications and websites are integrated,

allowing users to connect via other platforms. Facebook can open its platform to integrate

with a variety of other applications such as e-commerce, surveys, blogs, podcasts, videos,

contests, reviews, games, etc.

4) Target Different Audience

Although Facebook is popular, the drivers of its popularity is mainly tech-savvy and

younger demographic. By introducing new features, Facebook can attract other target

segments such as older generations or high-end business platforms such as LinkedIn.

5) Expansion through New Acquisitions

Facebook has financial resources to expand its portfolio by acquiring established entity.

Also, it can acquire promising technology start-ups with the potential to revolutionize the

world, just like Facebook did.

Facebook’s Threats

1) Competition

Competition from both old and new platforms is threatening to reduce Facebook users.

As new entrants to the field, such as Tiktok provide customized platforms targeting younger
generations, Facebook’s future becomes dimmer and dimmer. In an attempt to compete with

Tiktok, Facebook has launched its own version of short, fun videos platform “Lasso.”

2) Increased Regulations

The number of unfavorable regulations to Facebook is being passed and adopted at an

alarming rate, fueled by recent scandals such as Cambridge Analytic. In addition, issues with

data safety, insensitive content, and infringement of intellectual property rights have

prompted several regulatory bodies in the department of commerce to enact regulations that

will force Facebook to adhere to new transparency and accountability requirements. These

laws threaten to reduce the number of Facebook users, as some of its customers can migrate

to other platforms.

3) Bans in Several Countries

In democratic countries, regulations are being adopted to curb fake news used to

undermine democracy, while autocratic governments are restricting access to Facebook to

curb freedom of speech.

4) Data Breach

Facebook has experienced many instances where its data was breached, affecting

millions of its users. For example, in December 2019, during a major data breach, over 267

million Facebook users’ personal information (names, user ID, phone numbers) was exposed to

the dark web.

5) Duplicate & False Accounts

Facebook estimates that out of its 2.5 billion (Dec 2019) Monthly Active Users (MAU)

worldwide, 11 % may represent duplicate accounts and 5% false accounts. The majority of the
 duplicate and false accounts originate in developing countries such as the Philippines,

Vietnam, and Indonesia.

VI. Strategic Alternatives and Recommended Strategy

A. For further analysis, the company directional strategies are divided into 3 strategies

which are:

1) Growth strategy which is used to enlarge the market share and company’s

activities.

2) Stability strategy where the firm make no changes in current condition.

3) Retrenchment strategy where the firm is reducing their activities.

In Growth strategy, Facebook suggested to expand their activity to other geographic

location by adjusting their system and regulation with country’s regulation which will allow

Facebook to operate in certain country. This horizontal growth strategy will ease Facebook to

expand their market share and their company size. Under the diversification strategies in

horizontal growth have concentric diversification. Facebook have to explore another

technology-based product that can be integrated directly with their current features. This step

will be useful to attract people who are interested with technology-based product. This is also

will help Facebook to keep going in the sector. Besides that, Facebook have to focus in this

sector only since they also have some features that are less developed. It is a lesson for

Facebook to handle a thing at a time to maximize their performance. That is why concentric

diversification is suitable for Facebook, as Facebook have to explore more products that can be

integrated with Facebook current features. The advantages of Growth Strategy is, the company

has focused on improving the user experience on mobile devices to engage mobile users and
grow its conversion rates, included achieving higher user engagement across its social media

platforms and growing its international markets' penetration. While the disadvantages of it, is

the competitors may be able to take market share by adopting their own rapid growth strategy.

It is generally easier to expand into a young market with few or no players than it is to steal

market share from a competitor that has already established itself. `

In Stability strategy, we choose Facebook is no-change strategy. Based on Facebook

market share in 2012, Facebook is the leading company in the industry. Facebook also

generated a lot of revenue. It shows that Facebook can do no change strategy by not

developing their products or expanding their market, Facebook can just keep maintaining their

current services and do nothing in that year. The advantages of Stability strategy, is adopting

this strategy does not disrupt the routine of people on how they are accustomed to use it in

daily Facebook visit, also it allows the Facebook company to rethink its long-term strategies,

this strategy is less-risky unless it faces terrible conditions. While the disadvantages of it, a

strategy is not effective in the long-run. In the long-run, it could make the Facebook irrelevant

or outdated.

In Retrenchment strategy, we choose Facebook is Turnaround Strategy, Retrenchment

strategy is the most appropriate strategy when a firm’s condition is in a weak position in their

products which could lead to the weak performance and the reduction of some profits. The

retrenchment strategy that is most feasible for Facebook in order to solve the issue of

increasing the user’s value by using Turnaround Strategy. This strategy emphasizes on repairing

some operational efficiency which is suitable when there is an issue that is spreading, but not

yet critical. The first phase of the turnaround strategy is contraction, which will happen after
Facebook eliminate unprofitable division. The second phase of the turnaround strategy is

happened when Facebook develop new plan to eliminate unimportant overhead. This is the

most unsuitable strategy for Facebook since from the first time, Facebook management have

been generated to be the most effective and efficient structure so that it will be a little bit

difficult to find the unprofitable division or unimportant overhead. The advantage of

Retrenchment strategy in Facebook is reduced costs, improved efficiency, improved

competitiveness and reduced reliance on the markets. Retrenchment increases profits for

shareholders and creates a strategy to survive economic downturn. While the disadvantages is

include growth decline, reduced profits, smaller workforce, reduced productivity and inability

to meet customer people demand.

Facebook Inc. benefits from its market position in the social media business. It is

recommended that Facebook diversify its business to minimize market risk exposure while

exploiting possible additional sources of revenues to keep the organization for growing.

Another recommendation is that the company must continue its research and development

(R&D) investments to increase its capabilities in counteracting cybercrime that victimizes users

of social media services. The business must also continue its efforts in negotiating with

governments to open up markets where it currently has minimal or no presence. Also, make a

new innovation in term of giving user what they want today in using social media, Strengthen

the security account from user point of view since Facebook always continuously improving its

system security. Our two main ideas can be interpreted into 3 program which are Facebook

Filter, Facebook Trend and Facebook Security.

 B. Among the presented alternatives the best strategic option for the firm is Directional

Strategy, as mentioned before, directional strategy determines the scope of a firm. Facebook,

as a social media platform company, Facebook applies vertical integration scope that operates

the acquiring company in the production process. Applying the vertical scope is the way

Facebook strengthen its supply chain and reduce its production costs. For example, Facebook

acquires Parakey Company on July 2007 which is running offline applications and web desktop

business, used as sub-business unit Facebook Mobile. Facebook also acquires Divvyshot

Company to be integrated for Facebook Photos feature since Divvyshot is the photo

management company. This kind of acquisitions is meant to get a better supply chain that can

reduce production cost in terms of effectiveness and efficiency. As it is mentioned on vertical

scope above, Facebook acquires more than 35 companies to be a part of business process of

Facebook Company. This companies have specialization that is different each other. For

example, Acrylic Software Company is acquired on July 2012 for Facebook’s design team, Karma

Company for Facebook Gifts, Lightbox.com for photo sharing, and Strobe Company for mobile

engineering team. It shows that Facebook has several specialized firms as the firm scope.

VII. Management Lessons Learned

We learned from the Facebook group is Management. Managing a Facebook that consists

of over 250 members on social media is difficult. The topic must be attractive so that it is able

to attract members dessert lovers aim to attract other members with a common aim of

interest. Rules and regulation states things that are available and not available to do the group.

The rules and regulation policy, there are some penalty imposed when somebody is against the

rules and regulations such as receiving a warning and directly removed from the Facebook
group. The objective can show the purpose of the group which is sharing and interact with

other members about dessert. An objective is important as it determine the activities running in

the Facebook Group.

And also Communication and Interaction. We have learned how to use social media tools

in order to interact with other people. Social computing is interaction through computing such

as using desktop, laptop, smartphone and tablets. We communicate and interact with others by

posting and sharing content about dessert in the Facebook group. We also interact by using

Facebook applications as our social media tool.

And also the management lessons via mark Zuckerberg No success has ever been

achieved without trials and tribulations. No leader has every grown without making mistakes.

And no team has ever created something amazing without a healthy confrontation. No matter

what you do, there will always be something that goes wrong, decisions will have to be made

without the full set of data, and, whether we like it or not, mistakes will be made.
VIII. Bibliography

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https://techcrunch.com/2013/03/06/facebook-adds-ucsfchancellor-dr-susan-desmond-
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LinkedIn. Mike Schroepfer. Retrieved online by September 3, 2016

https://www.linkedin.com/in/schrep

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http://panmore.com/facebook-inc-five-forces-analysis-recommendations-porters-model