Report 2
Bhagath reddy
facebookstakeholder.docxFacebook Stakeholders Analysis Report
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Institute
EXECUTIVE SUMMARY
Organizations are complex beings that are comprised of different elements. Every element has specific role and duties and in overall when all roles are played, an organization becomes and remains operation. Facebook is one of these companies and since its establishment in 2004; the company has remained operational and successful. The success of the company is awarded to the different stakeholder groups of the company. Facebook stakeholder groups have a direct impact that the company shareholders have tried to ensure it is positive. However, this is only possible with the shareholders understanding every stakeholder’s likely behavior and motives. This analysis report shall focus on identifying and analyzing Facebook Company stakeholders, their behaviors, motives, and suggest possible coalitions among the company stakeholder groups.
TABLE OF CONTENT
Introduction to Facebook----------------------------------------------------------------------------- 4
Stakeholder view --------------------------------------------------------------------------------------- 5
Selected Facebook stakeholders analysis ----------------------------------------------------------- 7
Conclusion ----------------------------------------------------------------------------------------------- 9
References ---------------------------------------------------------------------------------------------- 10
INTRODUCTION TO FACEBOOK
Facebook Inc. is an American online social networking service offering company that was established in 2004 by Mark Zuckerberg and other fellow Harvard University students and rooms. These other partners include; Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. The company’s headquarters is located in Menlo Park, California and It is considered one of the Big Four technology companies along with Amazon, Apple, and Google. The company is in the technology services sector and internet services industry. The idea behind the company’s services was generated from American Universities face book directories. However, the founders modernized the idea where they came up with an idea where technological devices which are internet enabled can be used to connect people across the globe there by creating a social network.
The company’s revenues are generated from adverts made through the social media. It also helps people to communicate more often through their Facebook accounts where they can engage in video calls, chats, and also sending of images (Moreno-Munoz, et al., 2016). The services help the company to achieve its corporate mission and vision statements. For instance the company’s current mission is “to give people the power to build community and bring the world closer together.” Facebook also has a vision statement is to develop and maintain a company whose social media services would keep friends and family connected and express themselves freely as well as informed of what is going on in the world.
The technology services industry precisely the companies offering social media services like Facebook does is faced with a series of challenges. One of the serious challenges is security where customer accounts are hacked by highly skilled people in technology area. The major challenge is that clients are made to feel like the social media networks cannot guarantee them ample security of their data (Moreno-Munoz, et al., 2016). Another major challenge is where crimes have been made public through Facebook social networks something that has placed the company on the limelight especially with law enforcers as they are forced to provide customer information. As a result of these challenges, a recent development has been announced and implementation started which is the F8 initiative where application would be developed that would heighten client’s privacy (Adi Robertson, 2019). The company is also keeping with industry trends like video chats and calls and personalizing images using different features in the social media setup (Puppis, & Just, 2012).
STAKEHOLDER VIEW
Zuckerberg in a You Tube video tagged as “I’m not stepping down as Facebook chairman” available on https://www.youtube.com/watch?v=pq1buvnFGnE; claims that the company has five major important stakeholders. These stakeholders include; users, advertisers, employees, government, and communities. According to the company chairman Zuckerberg, these stakeholders they are the reason behind the company’s survival and success.
Customers/users: at Facebook, the customers are the major company stakeholder group and this group has a direct impact on the company. The more reason is that customers are the stakeholder group that the company targets to sell its services and generate revenues. All marketing tactics that the company uses targets this stakeholder group and this means this is the group that maintains company operations. At Facebook, this group has proven to make use of the company services as they visit the company website and send images and pictures in millions every minute. They are in charge of the billions of revenues that the company generates on a monthly basis.
Advertisers: this group of stakeholders plays a major role when it comes to Facebook’s income levels and abilities. They come up with effective advertising strategies something that helps in creating the right brand publicity and awareness (Ji, Li, North, & Liu, 2017). They also determine the best target audience that every advert should target as well as set goals to be achieved. From their role at Facebook different adverts have helped the company achieve growth and development.
Employees: the Facebook Company has a relatively high number of employees and this is the group plays an important role of carrying out all company operational roles and duties (Haigh, Brubaker, & Whiteside, 2013). At Facebook, the employees are paid as per every country of operation labor laws demands and in return, the company expects quality performance. This is in terms of offering customer service that meets customer expectations and also come up with better innovative and creative ideas (Ji, Li, North, & Liu, 2017). This is the stakeholder group that keeps the company competitive especially in the social media industry.
Government: at Facebook, the government is the fourth most important stakeholder. The government plays an important role of issuing the company with operation licenses and this is the reason why the company has been able to operate freely in different countries across the globe (Haigh, Brubaker, & Whiteside, 2013). The government also sets specific standard that all companies in the industry must comply with and protects all companies from unfair competition. This is to mean that the government directly dictates ethics that the company must apply and this means that failure to comply would lead to revocation of operating licenses.
Communities: the members of the community are the last most important stakeholder. The communities are comprised of people from different backgrounds, beliefs, and cultures. This stakeholder group is important as it is the group that Facebook has been able to market itself and also harbors the consumers group of stakeholders (Daniel, 2017). Through corporate social responsibility Facebook extends its help thereby creating a positive brand image through the communities’ stakeholder group (Ji, Li, North, & Liu, 2017). As a matter of reality, Facebook has been able to realize some goals, mission, and vision by giving back to the society some revenues generated hence making the company make a positive impact in the society and also become a reputable company.
SELECTED FACEBOOK STAKEHOLDERS GROUP ANALYSIS
The four selected Facebook stakeholders include; consumer, advertisers, employees, and the government. These different stakeholders groups are different in the sense that they have different behaviors which is determined by the motive that the group has towards the company. For instance, the consumer behaves well and appears happy when the company services are satisfactorily. This is to mean that the mood and attitude of consumers is determined by the services that the company is offering at any given time. The more reason is that their motive is to access the best possible services from the company.
The employees on their part behave in a manner that supports company operations all the time. This is through contributed efforts towards achieving organizational goals and making the company mission and vision a reality. The more reason is that the motive of the employees is for the company to grow, become reputable so that it can become a better and quality employer. Advertisers on their part behave similarly like employees because they behave positively to promote the well-being of the company shareholders and overall company. The good behavior from advertisers is to enable them achieve their motive which is to reap benefits from advertisements made through Facebook social media platform. The government stakeholder group behavior is determined by corporate environment as well as the actions of the company. If the company complies with all set federal rules and policies, the government behaves positively towards the company. The more reason is that the main motive of the government is to have as many legal entities as possible as these are the main revenue generation sources for the company.
However, to help the Facebook Company achieve its mission and vision easily, different stakeholders groups can form coalitions. This would result to sharing of ideas so that the company operations and services can meet the expectations of all stakeholder groups. For instance, the employees, advertisers, and the consumer can form a coalition. Using the coalition, the employees and advertiser can engage the consumers to get to understand consumer needs (Bosetti, 2015). This would help the employees and advertisers to do things that meet clients’ expectations. Also, a coalition between advertisers and employees can help advertisers learn specific tips from employees on how to effectively market goods and services using Facebook social media platform.
According to Moreno-Munoz, et al., (2016); Facebook has been facing security-related challenges thereby making many to feel that their lives is in danger due to hackers. To address this challenge, the company’s employee’s stakeholder group can form a coalition with the government stakeholder group to heighten security measures. The government would share views and opinions on the best and most effective measures that can be taken to handle cases of insecurity. The more reason is that the government benefits from taxes paid by Facebook and the fact that Facebook is a legal company that complies with government rules and policies. The coalition can hence help the two parties to continue supporting and benefiting from each other. Additionally, the employees can form a coalition with the consumer to identify community needs that the company can sponsor to make a positive and long lasting impact.
Conclusion
