Guidance notes The three texts below provide information about the business environment for the Facebook company in May 2012. For this task, imagine you work for Facebook, and you have been tasked with carrying out a SWOT analysis on the company to determine whether this is the right time for the company to grow. Your job is to write a SWOT analysis and a report based on this analysis. You are writing this analysis and report for the senior management team. Your analysis should provide the team with a complete overview of the situation and should end with suggestions for what the company should do based on your analysis. This task requires you to demonstrate your skill in selecting and organising information to produce a company …show more content…
At the time, analysts said the company was expected to be valued at $75 billion to $100 billion. But according to the filing, Facebook made only $3.7 billion in revenue last year, the bulk of that from advertising. Until now, advertisers were largely limited to a variety of ad spaces that were positioned on the right side of the Facebook home page, in addition to creating their own Facebook pages. The company said a new set of 'premium ads' will run at different points in the site, with a special emphasis on ads running throughout a user’s mobile feed. Facebook’s Biggest Stumbling Block: Privacy Practices Facebook’s biggest stumbling block has been its privacy practices. As the world’s largest social network, Facebook has been under intense scrutiny from consumers, courts and regulators worldwide over how it handles the data it collects from its 845 million users. But as a company preparing to go public, it is under pressure to find new ways to turn that data into profit. The company has repeatedly alienated users over privacy — as in the case of the 2007 controversy over Beacon, a tool that automatically posted on Facebook what its users did or bought on other sites. It has also faced lawsuits over the use of its members’ 'like' endorsements in ads and drawn scrutiny for a facial recognition feature. The scrutiny is at its most intense in Europe, where Facebook’s data collection practices have tested the boundaries
So many users of the internet blindly browse and post on these sites without any thought to the online identity they are creating for themselves. Shares, tweets, hashtags, likes, and comments all combine to make up an amalgamation of marketable information. In November of 2016, an average of six thousand tweets were made per second, and ninety-five million Instagram posts were made per day (Sayce; Parker). Facebook “has become the largest database of personal information ever collected,” says Richard, and Facebook takes advantage of this. With almost two billion users, Facebook has no shortage of information to gather (Sparks). They do this mainly for targeted advertising. There is no small profit to be made in this. In 2011 Lori Andrews wrote, “Facebook made $3.2 billion in advertising revenue last year, 85% of it's total revenue.” However, Facebook and other internet corporations also relay data gathered on users to the
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
Facebook is a major social networking site that connects users through text, post, and video all over the world. It was created by Mark Zuckerberg on February 4, 2004 at Cambridge, Massachusetts. It now has about 1 billion users and has grown to become the second most popular site ever. Facebook has enabled many people to communicate and share things online like never before. In can also raise support or awareness for a cause through facebook. This of course shows
The privacy compliance recommends that companies like Facebook should adopt a comprehensive privacy program that is reasonably designed to protect the privacy and security to prevent predictable risks. Another important idea is to abide by the Federal Trade Commission’s rules about keeping their advertising from being misleading and deceptive. Also, an opt-in consent form must be provided to the consumers that their data will be kept private. Overall, any type of changes a company possesses should be disclosed clearly to the
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.
This article focuses on media platforms (Facebook & Google) recent transition from privacy policies to data usage policies. The privacy policies have become obstacles for the economy of social media. The online platforms benefit from encouraging individuals to disclose information publicly by selling clustered profiled information of its users to advertisers and marketers. This source is relevant to the proposed topic because it addresses the excess of information for analysis that are available to multiple
Facebook relies on ad advertisements in their business model. Facebook platform empowers developers to build applications and web sites that integrate with Facebook to reach its global network of users and to build personalized and social products.
Facebook is a well know social networking site that has taken all over the world with over 500 million people using the site. Social networking sites such as Facebook share information about the user over the Internet, where it can be freely accessed by anyone. This is where issues of privacy to the individual arise. As
Some of these people put in hundreds to millions of dollars to prevent such events from occurring. Therefore, as time progresses and more people become aware of the situation, Facebook’s value will begin to fall along with its number of investors. With saying, the breach serves as a business issue because it angered users, politicians, and advertisers who use the platform. Some may react by deactivating their accounts, and that will result in loss in revenue for the company. The breach violates Facebook’s business ethics because one of the most prioritized objectives is to protect the information shared by users. Facebook reportedly knew about the data harvesting in 2015, and asked companies holding the data to delete it – but had no way of making sure that they actually did so. This not only reveals how vulnerable Facebook is to a Facebook security breach, but it also shows how much they’ve failed to take action. Taking 3 years to address this situation is simply
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.
Facebook has an array of information assets that it owns by collecting information on its users.
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
Facebook is involved in a serious controversy in the United States. And last but not least they are being accused of nothing less than ideologically manipulate the news that serves its users , all this is happening on the campaign trail, so the whole thing takes on an even greater dimension that already itself has.
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.
One thing Microsoft, Google and Facebook have in common is that they collect about as much data from each of their visitors as each other, according to an internet marketing research company (Alexa 2012). Users are concerned about the privacy of their personal information, even after the Facebook security expanded its efforts to reduce the risks to the users’ privacy. Facebook Beacon was launched in Nov 2007, a service that was ultimately a failed attempt at advertising specific products to a user’s friends depending on what known purchases that friend had made. As of last month, Facebook has begun to more closely examine the usage of its user data. Facebook accepted that it had deceived users by failing to keep certain promises regarding privacy, and agreed to settle charges laid by the United States Federal Trade Commission.