Business Project

FACEBOOK COMPANY PROFILE 1

FACEBOOK COMPANY PROFILE 8

Facebook Company Profile

Fardeen Ahmed

College of Dupage

Intro to Business

Elliman

Facebook Company Profile

Facebook was developed by Mark Zuckerberg and his roommates while they were still students at Harvard University. It was founded in July 24, 2004, and it focuses on creating products that help its users interact with one another through mobile phones, computers, and other compatible devices. This company also helps its users learn about the world around them. Users are able to share ideas, opinions, photos, videos, and other activities with audiences that range from friends to the public. Facebook became a great tool for the exchange of ideas, thoughts, cultures, and became a hotbed for innovation. Facebook Incorporation products include Facebook, Instagram, WhatsApp, Messenger, and Oculus. The company’s major source of revenue is through advertising on its website opportunities. Company’s and small business were able to curate their ads to their preferred demographics to increase the chances of the potential customer to interact with their products. The different types of target markets can be divided based on age, interests, gender, location or preferences. Facebook allows people to connect, share and communicate with each other through their mobile devices and computers. Instagram allows people to share photos and videos customized with filter effects, followers are able to see and interact with the user’s profile. Messenger enables people and businesses to connect and message across various devices. WhatsApp is another messaging application that allows users to message, phone call, video call, and group text for free. (Himatsinghka, 2015).

According to the statistics portal, the company employed 25,105 full time employees as of December 2017, this is a significant number for a company that began with only seven employees in 2004 when it initially launched. Facebook has been ranked number one by Glassdoor’s “2018 Best Company To Work In” in the United States of America. There are several reasons why Facebook Incorporation is the best place to work for, this is a testament to the company’s unique and desired workplace practices and environment. (The Statistical Porta, 2018). Employees confirmed that they feel trusted and valued. In an interview with Glassdoor, Chief Operating Officer of Facebook said “that the people who work in Facebook are the most important thing” (CITE THIS CITE THIS). Employees are encouraged to be themselves and to come to always come to work with their best ideas and a driven attitude, in addition, they are also encouraged to foster good relationships with members of their teams. Facebook does not place more importance on hierarchy and titles like managers, or Chief Executive Officer, which is contrary to the general practice of other tech companies. Employees in Facebook are encouraged to critique and question their managers, they are placed departments that are best suited for them based off the skills set that they most excel in. This kind of freedom is what drives employee engagement, it also helps no credit is not given based on titles but instead based on skills and the quality of work an employee produces.

Employees in Facebook are driven by the company’s mission which is, “To give people the power to build communities and bring the world closer”. Employees reported in an interview with Glassdoor that they get new challenges every day which in turn helps them learn new things and develop as individuals and employees. They claim that they always look forward to working in the company each day (CITE THIS CITE THIS CITE THIS, use exponents and do a bibliography).

The leadership in Facebook is fairly transparent. To keep in line with the company’s mission statement “to build a community”, Facebook leaders work to remain transparent and connected. Every other week the leaders of Facebook hold Q&A session with the employees to address their questions and concerns about topics that are relevant to the company at that given time. The Facebook users also have an opportunity to give suggestions on how the company can improve its services. During such meetings, Mark Zuckerberg reveals some of the company’s secrets and devlopments to the employees which include the company’s goals and the status of new products that have not yet been released. Such a level of trust is one of the most important values in the company (Dan Zarrella, 2010).

The Facebook company offers competitive compensation for it’s workers. According to research done by the University of Columbia and Michigan State University individuals with higher incomes feel less sad (CITE THIS CITE THIS). In Facebook Incorporation, on average, a software engineer makes about $126,780 every year while the lowest paid software engineer intern is paid $7,080 per month, which is roughly $85,000 a year. There are also other benefits for Facebook employees such as a reliable and comfortable source of transport to and from work, free food, laundry services, a good and vibrant office environment, and on-site dental and health care centers (CITE THIS CITE THIS). Company employees are extremely happy because of "the baby" cash they are given, which comes out to around $4000 and up to seventeen weeks for maternity and paternity leave (CITE THIS CITE THIS CITE THIS). It is also one of the first companies to offer egg-freezing coverage to its employees, an offer that is redeemable up to value of $20,000 (CITE THIS CITE THIS ). There are parental leave policies that even the CEO of the company takes advantage of (Himatsinghka, 2015).

The employees that are union members in Facebook are caterers and security guards. They are not direct employees of Facebook but they work for other firms which have a contract with Facebook. However, Facebook’s direct employees are not members of any unions. The need for union memberships among Facebook employees has never occurred since they have one of the best working conditions and they are treated fairly by their employers.

The top five shareholders of Facebook are, Mark Zuckerberg who is also the founder and the face of the company, he owns 11.92 million class A shares and 392.71 million class B shares of Facebook. Dustin Moskovitz is another founder of Facebook who owns 48.9 million shares of the class B category. Eduardo Savarin who is a founding member of the social network owns 6.1 million shares of the class A category and 47.2 million of the class B categories. Jan Koum owns 14.2 million class A Facebook shares. Sheryl Sandberg is the fifth shareholder who has 1.5 million shares class A which are indirectly held by a trustee and 2 million class B shareholders (Himatsinghka, 2015). (TALK ABOUT FACEBOOK going public and how that positively impacted their revenue, also talk about how their shares fluctuate in response to controversies (privacy controversy), argue that their shares are overall not that volatile, and currently all tech companies are struggling to meet their expectations from Wall Street).

The revenue of Facebook grew from 7.87 billion dollars in 2013 to 40.7 dollars in 2017. In the year 2017, the company’s net income was 15.9 billion dollars which ranked it as number one amongst all social media companies that year in terms of annual revenues. Most of Facebook’s revenue is gotten from advertisement since there has been a shift towards online marketing and e-commerce from the year 2016(CITE THIS CITE THIS) (ADD GRAPHIC OF FACEBOOK REVENUE)!!.

The marketing mix of Facebook considers demographic, geographic, and psychographic segmentation factors to adequately understand the preferences and engage with the target market, and as a result, their revenues increase (CITE THIS CITE THIS). Facebook advertises its products to the users based on the way they operate their accounts. This strategy helps direct marketing agencies and businesses to a tailored and specific audience that is more likely to interact with their advertisement. (Dan Zarrella, 2010).

Facebook has a project called Building 8, its goal is to develop and advance hardware. The hardware being developed aims at artificial intelligence, areas of connectivity and virtual/augmented reality. Building 8 is an investment expected to increase the revenue by a strong digit value and increase earnings growth of over 20% per year (CITE THIS CITE THIS)..

Continual design and innovation of products and services are one of the managerial objectives of Facebook. Social media apps and networks are continuously being developed and improved upon for an optimal user experience. The management ensures that these products are in line with the company’s goals and mission. This approach of continuous innovation is so that the companies will continue to have a competitive advantage. The marketing strategies are also adjusted to accommodate the new products and services so that the target market is reached.

The management of Facebook also ensures that the products and services provided meet the quality requirements of the customers. This is done by small teams that continually improve and innovate products and social network services and ensuring their quality is up to standard. The company also collects information from its users and address issues customers relay related to their products and improve their products based on the feedback. This also helps the company to retain the customers and potentially add new users as well (Thompson, 2018).

The management has also retained productive employees and also scouts for talented and innovative new employees. This help Facebooks Incorporation acquire and maintain a competitive advantage in the tech industry with their talented and versatile workforce. Retaining employees long-term also helps in bringing a sense of stability to the organization.

The strategic location of Facebook Incorporation is a managerial objective to acquire the best talents in the computing technology business. The headquarter is located in the heart of Silicon Valley, which provides access to the best talents the country has to offer. Most of its overseas offices are in urban areas which continues to maintain the image of Facebook being a global phenomenon. Locations for the different bases for Facebook are chosen to ensure there is a nearness to markets and other vital resources (Thompson, 2018).

The company also has adopted open space and strategic layouts in its facilities to encourage brainstorming among team members and interactions that are creative. The office layouts are adapted to enhance communication among members of the organization and ease movement of materials, equipment, and people working in the organization. These interactions are crucial for the development of products in Facebook Incorporation. The facilities that contain web servers have standard industry layouts to optimize productivity, maximize utilization and capacity. Facebook Incorporation compensates workers who enroll in Ph.D. programs in fields that could prove to be an asset to the company. Employees are allowed to work part-time and also study at their respective. This type of program is another way Facebook acquires and retains talents. This program gives the company the opportunity to acquire high-quality talent and hires for the future (Thompson, 2018).

Facebook Incorporation has become one of the leading companies in social media. It has become one of the most popular social media across the globe and is continually innovating to improve its products and retain its competitive advantage.

(WRITE about lawsuits against the company, especially when mark z had to testify in congress for the privacy scandal, and also mention. Russia and elctions scandal).

(TALK ABOUT corporate projections/ plans for the future).

(talk about wi-fi balloons for underprivileged communites and CITE IT. Talk about their philanthropy and how it helps them maintain their status as one of the most global social media platforms in the world.

Works Cited Dan Zarrella, Alison Zarrella. The Facebook Marketing Book. O'Reilly Media, 2010. Himatsinghka, Adarsh. "Management of Facebook." Principles of Management (2015). <https://www.academia.edu/14957205/MANAGEMENT_OF_FACEBOOK?auto=download>. Kirkpatrick, David. The Facebook Effect: the Inside Story of the Company that is Connecting the World. New York: Simon and Schuster Paperbacks, 2011. The Statistical Portal. "Facebook Annual Revenue and Net Income from 2007 to 2017." Statista.com (2018). <https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/>. Thompson, Andrew. "Facebook Incorporation Operations Management." Panmore Institute (2018).