repare 1-2 pages of Executive summary of your paper and PP presentation for your paper (10 -15 slides). I attached the paper and also the instructions for the executive summary

FACEBOOK’S STRATEGIC AUDIT

Strategic Audit

Facebook

Student’s Name

University

Date

Strategic Audit Paper – BUAD 455

I. History and Background information about Facebook

Timetable:

1. 2004: Mark Zuckerberg launched Facebook as a social networking site for college students

2. 2006: Facebook was opened to anyone with a valid email address

3. 2012: Facebook went public with a $16 billion IPO

4. 2018: Facebook faced a major data scandal involving Cambridge Analytica and its use of user data

5. 2021: Facebook changed its name to Meta and announced its vision for the Metaverse

II. Current Situation

A. Current Performance

Facebook is well-positioned for continued strong financial results in 2022. Revenue could increase 15-20% to $99 billion-$103 billion. It is driven by advertising growth on Facebook and Instagram. Net income may increase 20-25% to $35 billion-$36 billion.

Facebook's ad platforms have significant room for growth. More businesses advertise on social media making growth likely. Facebook is improving ad targeting and expanding ad offerings. It is focusing on different customer segments (Tien, 2022). New e-commerce features may drive more retail ad spend. Revenue per user and average ad pricing is being targeted to grow.

However, revenue growth may decelerate from prior years. It is due to the economic impacts of COVID-19 and privacy changes. Stricter limits on certain ad targeting techniques could curb the effectiveness of Facebook's ad tools (Tien, 2022). It will also reduce ad pricing and spending. Competition from other platforms is also intensifying.

B. Strategic Posture

Mission: "To give people the power to build community and bring the world closer together." (Facebook, 2022)

Objectives:

1. Corporate Objective: To maintain its position as the leading social media platform.

2. Business Objective: To expand its reach to emerging markets and diversify its revenue streams.

3. Functional Objective: To enhance user experience and engagement on its platform.

Strategies:

Growth Strategy: Expand into emerging markets and diversify revenue streams through acquisitions, such as the acquisition of Instagram and WhatsApp.

User Engagement Strategy: Enhance user experience and engagement through personalized content and features, such as the news feed and groups.

Data Strategy: Collect and analyze user data to improve targeted advertising and user experience.

Policies:

1. Privacy Policy: Facebook collects user data to improve user experience but also has policies to protect user privacy. It gives users control over their data.

2. Content Policy: Facebook has policies to regulate content on its platform. It removes harmful or misleading content.

3. International Operations: Facebook operates globally. It has adapted its policies and strategies to local regulations and cultures.

III. Corporate Governance

Facebook's top executives include:

1. Mark Zuckerberg, CEO and Chairman of the Board

2. Sheryl Sandberg, COO

3. David Wehner, CFO

4. Mike Schroepfer, CTO

5. Chris Cox, Chief Product Officer (previously)

IV. External Environment: Opportunities and Threats (Part of SWOT Analysis)

A. Societal Environment

General Environment Forces

Economic Trends: The rise of e-commerce and online advertising presents opportunities for Facebook to increase revenue. It threatens its advertising business model if users become more privacy conscious.

Technological Trends: The increasing use of mobile devices presents opportunities for Facebook to enhance user experience and engagement. It poses a threat if new technologies disrupt its platform.

Political-Legal Trends: The increasing scrutiny of social media companies by governments and regulators threatens Facebook's business model and reputation. It presents opportunities for Facebook to show its commitment to user safety and privacy (Swathi and Sujatha, 2022).

Socio-Cultural Trends: The increasing awareness of social issues. For example, diversity and mental health, presents opportunities for Facebook to address these issues on its platform. However, it also poses a threat if users perceive Facebook as not doing enough to address these issues.

Regional Differences: Facebook operates globally and faces different societal and environmental forces in different regions (Kraus et al., 2022).

B. Task Environment

Competitive Forces: The social media industry is highly competitive. Competitors like Twitter, Snapchat, and TikTok. The relative power of customers and suppliers also affects Facebook's competitive position.

Key Factors in the Immediate Environment: The key factors that currently affect Facebook include:

1. Customers: The increasing awareness of privacy and security issues among users.

2. Competitors

3. Suppliers: The increasing demand for high-quality content to keep users engaged on the platform.

4. Governments and Regulators (Larson and Vieregger, 2019)

Opportunities and Threats

Opportunities: Facebook can expand its reach to emerging markets. It can also diversify its revenue streams beyond advertising. In the long run it can address social issues on its platform.

Threats: Facebook faces threats from competition, privacy concerns, and regulatory scrutiny that could limit its ability to collect and use user data.

Strategic Group Analysis

Summary of External Factors

1. The increased scrutiny of social media companies by governments and regulators

2. The competition from other social media platforms

3. The privacy concerns of users

In conclusion, Facebook is a dominant player in the social media industry. It has a diversified revenue stream and a strong strategic posture. However, it faces challenges from regulatory scrutiny. Others include competition and privacy concerns (Kraus et al., 2022). To maintain its position as the leading social media platform strategies, need to change. Facebook must continue to adapt to changes in the external environment issues. It should maintain user trust and privacy.

A. Structure and Organizational Characteristics:

One of the major operational pillars upon which Facebook stands is functional organizational structure which drives its day-to-day processes effectively. The firm boasts diverse departments ranging from engineering to marketing with each headed by well-seasoned experts whose cumulative know-how derives growth in their specific fields. By so doing executing this arrangement the effective coordination amongst different units becomes possible hence bolstering proficiency all round. Also worth mentioning is Facebook's embraced concept of dispersed decision-making resulting in encouraging employees' autonomy hence nurturing creativity thereby boosting morale amongst its team members from diverse strata thereof within the organization's hierarchy chain.1

B. Culture

Collaboration, innovation, openness, and speed are cornerstones that define Facebook’s unique corporate identity. The company places great emphasis on innovative thinking among its employees- encouraging them to abandon conventional methods fostering open communication channels where diversity sparks creativity thus enabling collaborative efforts directed at producing results that surpass expectations quickly.2 Facebook attracts top talent because it has managed through its collaborative efforts driven by innovative thinking practices geared towards promoting individuality, while uniting employee strength it has transferred benefits from cross-functional cooperation effectively driving lasting success despite persistently changing tech trends. As with any other organization, challenges are part of Facebook’s culture. Fast-paced environments although exciting may become mentally demanding triggering intense pressure levels for employees- causing exhaustion at work or other life aspects. Additionally, the company has faced ethical concerns related to privacy matters stemming from its disruptive approach which inevitably puts certain groups at risk.3

C. The Four Ps of Facebook

1. Product:4

With Facebook's advertising platform, enterprises can reach their target audience effortlessly. The advertising solution encompasses diverse ad formats like selective carousels, sponsored posts, image, and video ads backed by advanced targeting options harnessing demographic data, interests, and user behavior analysis in real-time.

1. Price32

In providing massive online exposure for businesses Facebook has created a lucrative advertising platform utilizing a cost-effective model of either cost per click (CPC) or cost per impression (CPM). Such attractive deals are auctioned off between advertisers based on various criteria such as audience targeting, ad placement and competitor strength with prices correspondingly fluctuating.

1. Promotion32

To support businesses in enhancing their promotional efforts on its platform, Facebook provides a diverse range of tools and features. This includes call-to-action buttons for advertisements along with other functionalities like scheduled placements or targeted targeting options. Additionally, there exists provision for running an A/B test amongst various ad variations in accordance with business goals aimed at improved engagement levels.

1. Place32

Businesses leverage Facebooks diverse advertising platform to gain an edge in promoting their offerings across an array of strategic placement channels on this social media giant. They can display their content using numerous options like the Facebook News Feed, Instagram feed Stories, Audience Network or Messenger.

A. Financial Resources

Heavyweight players like Facebook, Google, and Twitter cannot be ignored in the technology and social media industries. Even though their primary source of income comes from advertising for both Facebook and Google, Despite being somewhat dependent on advertising, this is not the case with Twitter. When comparing them, revenue earned, profitability figures, and user bases are important metrics. Facebook is in a good position thanks to phenomenal revenue growth, exceptional profit margins due to an ever-expanding user base, and a marketing strategy. Nevertheless, despite its improvement over time, Twitter struggles to consistently achieve profitability, while Facebook and Google appear capable of churning out significant profits from their robust operations.

Table 1: Financial Indicator Analysis for Facebook

Facebook's financial performance over the past few years is depicted in the financial marker assessment table above. The table includes the revenue, net profit margin, return on equity, current ratio, and debt-to-equity ratio. Facebook's pay, net income, and return on esteem have all reliably expanded throughout the course of recent years, as per the examination. The high current ratio shows that the business also has a lot of cash on hand. However, the association has used less commitment financing in recent years, as evidenced by the association's commitments' lower correlation to its value.

Ratio Analysis:

Table 2: Ratio Analysis for Facebook

Additional ratios for Facebook include the debt-to-equity ratio, return on investment, gross profit margin, operating profit margin, asset turnover, inventory turnover, receivables turnover, and return on investment in Table 2. Facebook's high gross profit margin, as shown by the analysis, indicates effective cost management. The organization's working net revenue has additionally been reliably high, showing solid functional productivity. Throughout the course of recent years, the resource turnover proportion has stayed stable, demonstrating that resources have been used to create income. Facebook, then again, is a help-based business, so it doesn't turnover receivables or stock.

Alternative Strategy Matrix:

Table 3: Alternative Strategy Matrix for Facebook

Table of Internal Environment

1. Massive User base (STRENGTH)5: An area where Facebook excels significantly is through having an enormous and widespread user base comprising billions of active subscribers worldwide. By utilizing this potent leverage well, Facebook draws advertisers towards itself which results in generating ample revenue while retaining dominance over social media platforms.

2. Data and targeting capabilities (STRENGTH): Facebook boasts a wealth of user data that allows for the provision of highly targeted advertising services. Advanced algorithms and tools available on the platform enable advertisers to segment demographics cater to varying interests and tap into different consumption patterns. By capitalizing on these features businesses can have a competitive edge over rivals.6

3. Privacy Concerns (WEAKNESS): Facebooks user privacy and data breaches have been the subject of intense scrutiny and criticism. This has resulted in serious legal and regulatory challenges, widespread public skepticism, and the possibility of a diminished user base. All these factors are negatively impacting the company’s reputation and could impede future growth.7

4. Content Moderation Challenges (WEAKNESS): Managing the vast quantities of content on Facebook remains a persistent hurdle for the platform due to issues such as fake news, incendiary speech, and harmful posts. Failure to address these challenges effectively could jeopardize user engagement levels and trigger regulatory measures.8

5. Advertising Growth (OPPORTUNITY): The steady escalation of the digital advertising industry offers promising potentials for Facebook to broaden its advertising revenue. As companies devote more funds towards internet-based marketing, Facebook stands a chance to gain from its robust ad targeting abilities.9

6. Mobile Advertising (OPPORTUNITY): By embracing the rise of smartphones and mobile internet usage worldwide Facebook positions itself favorably to take advantage of opportunities within the mobile advertising space. The company is focused on capitalizing on this phenomenon as it continues to unfold enabling it to grow its foothold within this highly competitive sector.

7. Intense Competition (THREAT): Considering stiff opposition from established companies as well as emerging players Facebook is facing intense competition in the industry. Novel features and differentiated user experiences offered by competitors pose a significant threat to Facebooks platform as they could attract users away affecting its dominion over the market.

8. Regulatory and Legal Landscape (THREAT): Facebook encounters significant opposition owing to heightened regulatory scrutiny driven by shifting privacy regulations. Compliance with evolving law demands prompt adaptation from the corporation; failure to comply poses a significant threat. As costs rise concurrently with limitations on the application of data, this phenomenon possesses a negative implication concerning Facebook's operational basis of profit generation if not adequately addressed.10

The success of Facebook within the social media sector owes much credit to its mission statement that steers its development. “To give people the power to build community and bring the world closer together,” expresses Facebook's dedication towards connecting people fostering community through meaningful interactions. It reiterates values such as inclusiveness connectivity while empowering users that are important in today's digital era. Despite facing challenges along with criticism leveled at it- Facebook remains resolute in answering that call by utilizing its mission statement which acts as both shield-and-sword; by taking concrete steps towards societal issues administration enhancing user experiences towards making positive contributions towards society fostering inclusive communities.

To implement Facebook’s recommended strategy, several programs could be implemented to restructure, redefine roles & responsibilities while aligning their culture with established quality metrics which helps with performance improvements. Of note is Total Quality Management (TQM) programs that can help incorporate diverse perspectives in arriving at common understandings of value-providing areas within the organization. For example, these identified goals could revolve around process improvement areas like customer satisfaction, operational efficiency, or creation of new markets. Collaborative efforts between strategic planners are paramount when developing these programs to secure alignment among all institutional stakeholder groups towards shared objectives - recognizing that these groups may comprise both internal staff plus subject matter experts from relevant fields. Crucially too, cost-benefit analysis must be carried out where appropriate along with a pro forma budget estimate developed early on. Program ownership would involve senior management personnel or thoroughly trained & knowledgeable program managers; ensuring they command necessary resources & authority throughout their implementation timeline. Developing execution plans based on practical timelines and priorities is significant in this regard as it carefully considers organizational capacity for change, project dependencies and potential impact scope assessment.

Evaluating performance after implementing new strategies requires establishing an effective system for planning, executing, and managing processes & finances at Facebook. A useful tool for doing so is a strategic balanced scorecard that evaluates strategy execution & performance management with emphasis on finance-related matters. By employing a strategic balanced scorecard at Facebook to appraise its implemented strategy's impact upon company performance, assessments can be made regarding potential value-additions across both organizational processes & financial outcomes alike. Such evaluations readies companies like Facebook with information critical empowering effectual decision-making ranging from strategies' continuance or evolution.

References

FACEBOOK, INC. FB-12.31.2013-10K. (n.d.). https://www.sec.gov/Archives/edgar/data/1326801/000132680114000007/fb-12312013x10k.htm 

Cadwalladr, C. (2018, March 17). Revealed: 50 million facebook profiles harvested for Cambridge Analytica in major data breach. The Guardian. https://www.theguardian.com/news/2018/mar/17/cambridge-analytica-facebook-influence-us-election 

Kissinger, D. (2018, June 18). Facebook Inc.’s Marketing Mix (4PS) analysis. Panmore Institute. https://panmore.com/facebook-inc-marketing-mix-4ps-analysis#:~:text=Photo%3A%20Public%20Domain)-,Facebook%20Inc.,and%20Price%20(the%204Ps). 

Kraus, S., Kanbach, D. K., Krysta, P. M., Steinhoff, M. M., & Tomini, N. (2022). Facebook and the creation of the metaverse: radical business model innovation or incremental transformation? International Journal of Entrepreneurial Behavior & Research.

Larson, E., & Vieregger, C. (2019). Strategic actions in a platform context: what should Facebook do next? Journal of Information Systems Education, 30(2), 97-105.

META. (n.d.). Misinformation. Transparency Center. https://transparency.fb.com/policies/community-standards/misinformation 

Misha. (2022). 6 things to know about the workplace culture at facebook. Carrus. https://www.carrus.io/blog/6-things-to-know-about-the-workplace-culture-at-facebook 

Murgia, M., & Murphy, H. (2019, August 20). Facebook unveils tool that allows users to curb targeted advertising. Subscribe to read | Financial Times. https://www.ft.com/content/4fa74636-c31f-11e9-a8e9-296ca66511c9 

Muhammad, F. (2023, May 5). Advertising evolution: How personalization has improved over time. Instapage. https://instapage.com/blog/advertising-evolution-how-personalization-has-improved-over-time-4/ 

Organimi. (n.d.). Facebook’s organizational structure [Interactive Chart]. Organimi. https://www.organimi.com/organizational-structures/facebook/ 

Swathi, P. K., & Sujatha, K. S. (2022). Comparative Case study analysis of Social Media Platforms-Instagram, Facebook, and Snapchat.

Tien, N. H. (2022). Analysis of employer branding strategy of Facebook and experiences for Vietnam high-tech corporation.

Vedova, H., & Technology, T. F. O. of. (2022, January 27). FTC imposes $5 billion penalty and sweeping new privacy restrictions on Facebook. Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions-facebook 

1 Organimi. (n.d.)

2 Misha. (2022)

3 Perrigo, B. (2021)

4 Kissinger, D. (2018)

5 FACEBOOK, INC. ( n.d.)

6 Murgia, M., & Murphy, H. (2019)

7 Cadwalladr, C. (2018)

8 META. (n.d.)

9 Muhammad, F. (2023)

10 Vedova, H., & Technology, T. F. O. of. (2022)