Facebook Swot Analysis Paper

Weighted Average Cost of Capital (WACC) is the combined rate at which a company repays borrowed capital and comes from debit financing and equity capital. WACC can be reduced by cutting debt financing costs, lowering equity costs, and capital restructuring. In order to minimize WACC, companies can issue bonds by lowering the interest rate they offer to investors as well as, cutting down

Facebook is a very greedy company. The initial public offering or IPO for Facebook was a joke to them because they use it to gain money their personal use, pocketing it. The greed shown is a whole new way of running a company. They made the

So in order for the company to make a smart decision, they would have to use the WACC (weighted average cost of capital) in order to determine which way they would go about raising that additional capital, whether it be equity (shares of stocks) or debt (a bond issue).

Melissa does a good job digging deeper in regard to the verbiage in the email.

Sigma Kappa is one of the 26 National Panhellenic Conference sororities. Sigma Kappa’s values include personal growth, friendship, service and loyalty. Our commitment as a sorority is to live with heart which encouraged me to form a purposeful life rooted in a strong sense of character and our values. Through participation in this sorority I also have learned interpersonal skills from people of diverse backgrounds and the teamwork necessary to have a successful organization. I have seen the philanthropic needs in our society and understand the value of community involvement. As a member of Sigma Kappa, our main philanthropy is gerontology with an emphasis on funding Alzheimer’s

Facebook is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOT analysis will be completed, and the strategic objectives will be identified with discussion of specific strategies and contingency plans that will need to be in place to recognize those goals. Lastly, the strategy will be critiqued, with suggested changes presented, if any.

As it is showed in Exhibit 3, Facebook’s estimated value/share is $32.44 using Discounted Cash Flow analysis. The price from the price talk is $38, which was raised from around $28 to $35 to $34 to $38 per share because of the overwhelming demand from investors. And the price talk is 17% higher than the intrinsic value.

Initially, Mark Zuckersburg , Dustin , Chris and Eduardo launched Facebook in Harvard in 2004 started with Facebook Wall. Facebook started with 1 million users from the Harvard , Yale , Stanford and Columbia university campus and then they concentrated to more university campus to growth for the company. The company then over the years have evolved design layout of Facebook and making more and more easy to use by concentrating overseas and local users and now they have 86% of total users are outside the USA and Canada. The company have launched Facebook video , Platform launches , Video calling , Facebook Search, Messenger , acquisition of Instagram and atlas and Whatsapp and Oculus and Facebook paper , trending in Facebook and many more. The key strategy of Facebook in past was to expand the social network and innovate new technology to make it more effective so that users can share and connect with people through Facebook. Also Facebook is concentrating in innovation starting with oculus - the virtual Reality. The increasing amount of data created by users and to maintain the data and finding the data patterns from the data is among the biggest challenges the company is facing. To provide the security to each account and help users to maintain their privacy is also a big challenges in today's world. Currently Facebook is on the top list of Social network services and they

According to Marketline.com, Facebook Incorporated is one of the social networking which enables users to share their pictures, videos, activities and opinions. The company’s reach is a non-replicable competitive advantage that can be explored to the advertisers’ curiousness. However, significant competition may impact its user base and level of user engagement, making it less attractive to developers and marketers, so the bad thing will affect its revenue and results of operations. From there we can tell the strengths, weaknesses, opportunities and threats of Facebook’s company.

Second, by going public, Facebook can raise funds from a broader base of investors. With much money, the company can have enough resources to develop new products and invest in their business, which make the company become more competitive. Meanwhile, it’s a good opportunity for the shareholders to gain the best possible value for their own stakes in a long term.

This strong organization structure has allowed Facebook to grow and continue to be strong in a competitive marketplace where the product is your personal life.

Facebook has a high valuation of $75-100 billion which is difficult to justify. After the first quarter, the company failed to produce financials which caused stock prices to plummet. This is not good in terms of attracting new investors. In addition, customers often complain of bugs and problems when interacting online

What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not?

This lawsuit almost caused the company to shutdown but after Zuckerberg denied any claim, the lawsuit was dropped. It also went through privacy issues in 2009 when they changed their policies, which caused a huge controversy with users. Zuckerberg eventually reverted back to the old privacy policy and is still in the works of changing it. Even with all these controversies, Facebook is still widely used for social networking such as keeping in contact with friends by writing on each others’ walls, posting photos, updating statuses, writing notes, joining groups and attending events.

Facebook is the most powerful social media Network which connects people in no time no matter where they are be in the world. It’s accessible from any place at any time without any cost.