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Final Communication Plan 


February 27, 2019 
BCOM 314 
 
 
 
 
 
 
 
 
 
 
 
Blake Jaciow 
Daniel Jimenez 
Steve Tamayo 
Haoxu Wang 
Ryder Worden 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Executive Summary 
 
Introduction 
Following the turmoil our company has experienced over the last 12 months due to the 
Cambridge Analytica breach, it is imperative that we get to the root of why stakeholders are 
being affected so greatly. 
 
Bottom Line 
To get back to our company mission of connecting friends and family around the world, we have 
to realize that our users are the sole reason our company exists, today. They are our most 
important stakeholder meaning we need to cater towards their wants in order to maintain their 
use of our platform. 
 
Stakeholders 
As aforementioned, users are our definitive stakeholder. Investors as well as competitors are 
also stakeholders of Facebook, however these stakeholders actions and views of our company 
are derived from overall user sentiment. While our stock price has experienced a bear market in 
the past year, overall investor sentiment is average except in one key area. Investors social 
analysis of our company show that they are concerned with our commitment to social 
standards, echoing the sentiment among our users. Additionally, competitors have noticed our 
users disengagement, allowing them to grow their market share, with a majority of our users not 
interacting with our platform in ways that they previously did. 
 
Key Stakeholder 
Our definitive stakeholder is without a doubt, our users. Our users are the backbone of our 
company, demonstrated by our mission statement about connecting people in the world in a 
way that has not been done before. Users are proven to be the key stakeholder because of the 
impact that they have on two of our other stakeholders; competitors and investors. It is 
worrisome that 33% of the most integral part of our company do not trust us.   
 
Solutions 
To fix our company’s issue, we need to regain our users trust by ensuring them that they have 
more privacy and safety on our platform that they ever have had before. Our solution to solving 
the issue of user trust is outlined in three steps. Our users need a new algorithm making up 
their timeline, to ensure that users are interacting with content they want to see, and not 
experiencing ads. Additionally, we have to show our users the measures we are taking, by 
clearly showing changes we have made that is designed to increase user privacy, thus 
increasing user’s trust in us. Last but not least, will build on our CEO’s previously outlined 3 
step-plan, and focus on outside developers being banned from user data when they have 
misused it or have not had direct engagement with that user in over 3 months.  
 
Conclusion 
Even though we have experienced a rough 12 months and have been publicly criticized for our 
lack of social ethics, it is intriguing that with the right steps implemented, we can win back our 
stakeholders. With our proposed solutions increasing revenues considerably, investors will 
realize that we can maintain social ethics while still being a highly profitable company. With us 
putting an emphasis back on user trust, we are bound to experience increasing sentiment on our 
company across all three stakeholders. 
Introduction 
In the past year and especially the recent months, we have faced scrutiny over a multitude of 
concerns regarding the security of our users privacy. Issues have ranged from data breaches to 
selling customer information to advertisers and political studies. We have been diligent in 
finding a solution to these issues and gaining our users trust back so that Facebook can once 
again be the company it was created to be.  
 
Our Honest Mission 
Our goal at Facebook is to bring the world together in a safe, respectful, and open online 
community through our apps and services. We want the world to network on an individual level 
and on a business level, where small businesses can advertise and thrive more than they ever 
would without Facebook.  
 
Concerned Stakeholders 
Due to recent concerns with the data breaches in our systems, this goal has been tarnished in 
the court of public opinion, as many people have listened to media sources over our own 
company’s statements regarding these issues. In this report, we will be addressing who are 
stakeholders are, their concerns, and conduct future research into finding 3 possible solutions 
for our stakeholders in the following paragraphs. 
 
Bottom Line 
In this report, we first analyzed who affects our company and who is affected by our company 
to discover our key stakeholders, which we found to be our consumers/users, stockholders, and 
our competitors. Within our analysis we discover their areas of concern and what has been a 
key factor in the issues with our communications. Finally, we will address each of the 
stakeholders concerns regarding our controversies of the past, and we will develop a plan to fix 
our communication and security. Our main area of focus is on the users themselves, as they are 
what drives the decisions of our other stakeholders as well as the performance of the company. 
 
CONSUMERS 
Overview 
The first stakeholder that we will discuss is our consumers, which are our users. We provide 
social media services for our users and it is important to us that we satisfy their needs. Up until 
the Cambridge Analytica incident, Facebook had done a phenomenal job of satisfying their 
needs, however this incident was the biggest hit in our company’s history. With the breach of 
over 87 million users data, Facebook influenced potentially helped influence political outcomes, 
which deteriorated our user trust. (Kang, 2018).  
 
Trusting Rate 
Figure 1-1​ shows the change in our users’ trusting rate for our company throughout the our 
history. Before the Cambridge Analytica Scandal, we had a stable trusting rate since 2011. 
Markus Weisbaum, CEO of Times Magazine, stated Facebook experienced a sudden drop from 
79% to 27% once the incident became relevant to the public. We expected to lose customer 
trust, however we did not anticipate a 66% drop in the overall trusting rate. The biggest reason 
for the decline is that some users think we sell their personal information intentionally, as “it is 
all about economics.” (​Weisbaum, 2018).​It is undeniable that we bare the responsibility of the 
user data breach. One thing that we are sure of, is that we never sold any users’ data to any 
companies or organizations. 
Privacy Concerns 
Furthermore, we found out our users have increased concerns regarding personal information 
and privacy. Refer to Figure 1-2, this chart lists the top two concerns among our users following 
the Cambridge Analytica scandal. 55% users worried about their personal information with 
users concern about the invasion of privacy increasing 13% since last year (McCarthy, 2018). 
From this poll, we understand our users’ concerns because all they want is a greater protection 
of their personal data. 
 
New Flames Burning Out 
As discussed above, the Cambridge Analytica scandal was one of the biggest scandals in our 
company. During the time this was issue was circulating the internet and social media, our CEO 
and the company decided to introduce a new app that will put Facebook into the matchmaking 
dating sector. Many people were very concerned about this due to the fact it was announced 
right after the data scandal had surfaced.  
 
A major reason as to why our users are concerned about using the matchmaking dating app on 
our platform is because of the additional amount of personal data it requires. Clearly this will 
raise concern for our users because our company has been under major scrutiny from the 
recent breaches of data. In Figure 1-3 , the director of Consumer Privacy at Stanford Law even 
warned our users of the risk they are taking should they decide to partake. Although a beta 
version of the dating app has been released in Canada, Colombia, and Thailand, there has been 
minimal fanfare to the service. 
 
Public Distrust of Social Media 
But, social media in general has seen a widespread of concern regarding the safety of users’ 
data. In Figure 1-4, about 50 percent of adult Americans do not have confidence that their data 
is being safely secured in social media websites and the federal government. Even though these 
are completely two different areas in which data is stored, there is still the similarity in how 
people lack confidence is the security of their data in these institutions. With our users being 
very important stakeholders at Facebook, our investors and stockholders are incredibly 
important as well.  
 
INVESTORS 
Overview 
The keystone stakeholder of our company is our investors and stockholders, without them we 
would not be able to function to our best ability in providing what our mission is as a company. 
Stockholders are one of the most important aspects of Facebook Inc., and that is why it is 
critical that we communicate to them accurately yet positively. To address our stockholders’ 
concerns, we must look at how our stock has been performing in the previous year.  
 
“The Conference Call” 
Looking at Figure 2-1 below, you can see exactly how our stockholders have responded to our 
recent turmoil in the company. While the Cambridge Analytica scandal and Mark Zuckerberg’s 
testimony showed a ripple in stock prices, our biggest drop that has created a six month bear 
market is known infamously as “The Conference Call.” On July 26th, 2018, we experienced the 
largest selloff of our stock to date, it totaled 168,000,000 trades in a single day with a 19% 
overall decrease in our stock price, wiping out over $120 billion in shareholder wealth.  
 
Investor Backlash 
This single day sent us spiraling from being on the cusp of a bull market to a 6 month long bear 
market. The cause for this was our quarterly conference call, in which our executive team had 
shown a less than optimal earnings report, with bad news relating to our sales growth leveling 
off and our profit decreasing from reinvestment into cybersecurity. Our shareholders has 
responded very angrily to our issues with cyber-security that was affecting our bottom line 
profitability, and this negatively affected our long-term investors in the company.  
 
Communication Error 
A major communication disconnect that we faced on that day was that we failed to properly 
communicate to our stockholders our reasons for loss in profit margin. We were starting 
reinvestment into cybersecurity and hiring more people to help discover key issues with our 
company’s security breaches and therefore our bottom line profit has suffered. A possible way 
of preventing a massive sell-off like that, or even thinking retrospectively, we could have 
communicated that this temporary loss in profit margin would have a good chance of the 
leveling trend in our consumers logging into Facebook due to increased security of their data. 
 
Back in the Black 
Half a year after this historical sell-off sent us into a bear market, we have started to rebound 
from bettering our image as a company, although we have much to improve. From an investing 
standpoint, we can see from the Recognia Analysis in Figure 2-2 that our stock is a strong buy 
from short to long term sentiments. Also in this figure, we can see from an S&P Capital IQ 
analysis that our stock is currently undervalued, with quality of earnings being above average, 
growth stability being extremely high, and our financial health being relatively healthy compared 
to last years decreases in profit. 
 
Opportunity to Improve 
When stockholders look at the health of the company, they don’t only look at our financials, but 
they also look into our ESG analysis or Environment, Social and Governance Analysis. In Figure 
2-3, MCSI Industry Research has performed an analysis on our company, and our social rating 
can be alarming to stockholders that want us to be socially responsible. Overall, our company is 
seen as average on an ESG analysis, which can turn off investors who want to be a part of a 
truly outstanding company and this is a major force that we can alter in the future with better 
communication and planning. 
 
COMPETITORS 
Overview 
Following the Cambridge Analytica scandal the German Anti-Trust office investigated how we 
use our data. This recently led to German regulators placing restrictions on how we can use 
data to create profiles of people, in their country (Wagner, 2019). With sentiment decreasing 
abroad, we need to make sure we do not lose market share among competitors. Additionally, 
competitors such as Google, and even companies like Amazon who have access to user data 
have not had breaches, and many of them are confident that a breach the size of Facebook’s 
can not happen (Lim, 2018). 
 
Revamped Security 
Furthermore, Google has set a precedent among the importance of protecting user data. 
Following the breach, we have decided to follow suit by adding 10,000 people to our safety staff 
(​Balakrishnan, 2018). ​While there are many similarities among Google and Facebook’s data 
practices, we are hopeful that we can win back stakeholders by beginning to put user data first. 
 
Gen-Z Effect 
Lastly, Gen-Zs are known to be tech-savvy and individualistic, leading to a decline in Facebook 
popularity among their generational cohort. Making up nearly 25% of the United States 
population, this tech-savvy cohort is by far the biggest generational presence, online. With 45% 
of teens surveyed answering that they ‘remain online constantly,’ 44% saying they are online 
‘several times a day, and the last 11% say they are on social media once a day or several times a 
week, we find it upsetting that only 10% of teens say they use Facebook most often. (​Figure 3-1) 
Instead, teens are turning towards Snapchat and Facebook subsidiary, Instagram, due to less 
advertisements and more anonymity (​Anderson-Jiang, 2018). 
 
FINDING SOLUTIONS/ RECOMMENDATIONS 
 
Analyzing Importance of Singular Stakeholder 
Of all of our stakeholders, we have found that our users are the key to our company. Without 
users, we would not generate revenue, have competitors, or even have stockholders. Simply 
put, users are the key to what drives our company. Also, our stockholders and competitors are 
directly affected by our users when they either trust us or have a negative opinion, because this 
affects our stock price along with the public opinion on all social media sites as a whole. This 
reasoning is why we will be addressing the concerns of our users when finding solutions to the 
issues that have plagued our company over the last year.  
 
Many Solutions for Many Problems 
Through our research on the matters of data security, privacy, annoyance with ads, and the 
inevitable public distrust we have attained in the past year, we have developed three solutions 
that can be efficient in curbing these issues and creating a platform that brings us back to what 
we intended Facebook to be. Our three solutions are different in approach, however, they all 
have the ability to better our company and regain our users trust, helping our bottom line and 
improving our relations with our stockholders and competitors through helping our users. The 
three options that will be discussed are changing our algorithms to boost posting, a 3 step plan 
to address security concerns, and a communication plan to relay the efforts we’ve put into 
cybersecurity over the past year and beyond.  
 
The Algorithm Method 
“People can see what they care about first, and don't miss important stuff from their 
friends”-Adam Mosseri, VP of News Feed product management 
 
Reduced Posting is Bad News 
Since the Cambridge Analytica Scandal and the increasing prominence of ads on Facebook, we 
have noticed a 21% reduction in sharing by our users. This has correlated to a 5.5% drop in our 
revenues due to people logging off or being inactive, therefore making ad and service revenue 
decrease.  
 
 
 
Rank System for Posting 
In order to increase posting, we want our users to log on and see what they really care about: 
their friends and family. Our new algorithm plan allows for users to have priority on their own 
posts and viewing their friends and family’s posts rather than ads, news, and entertainment by 
use of a rank system. 
 
The rank system goes as follows:  
1. Friends & Family  
2. News & Events 
3. Entertainment.  
4. Ads 
 
Benefits 
Through changing our algorithms to focus on our users posts, we predict that posts by our 
users will increase significantly. With this increase in posting, we can see an increase of 
revenues as more people will be reading their feed and keep their interest on the service while 
only a few ads are seen throughout their experience. This will also change how ad companies 
reach out to our users by preventing them from permanently forcing people to interact with their 
posts and view them, which will decrease data mining from accounts that interact with their 
posts. Users will notice a change in what they are viewing and believe our mission statement of 
bringing the world together on a platform meant for communicating. 
 
Negatives 
While this method will provide an increase in posting and give users an increased sense of our 
benevolence as a company, it does few things to address cybersecurity. Public opinion of who 
we are as a company will change, however users will still notice issues with data breaches if 
this method is used without investment into better cybersecurity. 
 
Cost-Benefit Analysis 
There is negligible cost for programmers to create the new algorithm with this method and the 
Residual Income (assuming 5.5% growth predicted) added to our estimated revenue gain on 
Implementation in the first year would be $2,904,000,000, with a 3 year revenue growth 
prediction of $8,712,000,000. 
 
The 3-Step Plan 
Our 3 Step plan was outlined recently by Mark Zuckerberg, he stated our steps were: 
1) Investigate all apps with “access to large amounts of information” with a plan to ban 
developers that “misused personally identifiable information.” 
 
2) Remove developer access to your data if you don’t use an app for over three months and 
restricting how much of your data developers can access at all. 
 
3) Make sure users understand how apps can access their data and making it clear how to 
revoke that access. 
 
 
Benefits 
The benefits that come with this plan are numerous, firstly this solution will address “data 
mining” concerns, making people feel more secure and less susceptible to marketers harvesting 
their information. Second, this method will prevent another Cambridge Analytica Scandal by 
removing access to your data when you are inactive or change your privacy settings manually. 
Third, this method will educate users on how to protect their data by simplification and 
explanation of privacy settings. These benefits will help customers regain trust in our company 
and log on more frequently. 
 
Negatives 
There is truly only a financial negative of this solution as the cost to implement is significant 
compared to other methods. With this method, our company will have to hire roughly 10,000 
new security programmers to keep up with constant “data mining” issues and prevent them. 
This will cost us a significant amount, however the ROI in the first year alone makes this 
expense feasible, as seen in the Cost-Benefit Analysis below. 
 
Cost-Benefit Analysis 
 

Average Security Salary  $79,502 

Required New Hirings  10,000 Immediate FY 

Total Cost of Implementation  $795,020,000 

Estimated Annual Revenue Growth added  5-13% 


using historical growth data (pre-scandal) 

First FY Return  $2,040,000,000 

Total Gain in 1st Year  $1,244,980,000 


 
 
The Communication Solution 
The largest factor of our communication disconnect, is that users don’t know how we’re 
addressing their concerns. We have designed new algorithms and data security systems, 
however, the majority of users do not notice our privacy changes. What has caused this is that 
we have not explained our efforts clearly to our users. With the Communication Solution, we will 
explain our efforts as simply as possible to our users, focus our restructuring of trust on 
communication and education, and continue providing simplistic privacy settings and simplify 
our Privacy Policy so that people are aware of data usage. 
 
 
 
Benefits 
This solutions major benefits will be improving user trust, stopping privacy breaches by 
informing our users how to adjust settings, and clarifying that our goal at Facebook is to provide 
a social media site for “The People’ rather than large data harvesting firms. All of these benefits 
will not have added cost associated with them as they are already scheduled investments into 
app updates. 
 
Negatives 
One thing that this communication plan does not address, is the reinvestment into actual 
security measures added to the already numerous ones we have done in the past year. Without 
using the 3-step plan outlined above, this will give users a heightened sense of security than 
previously, without actual proof that we’ve continued to invest in our users privacy.  
 
Cost-Benefit Analysis 
 
Total Cost of Implementation  N/A cost negligible 

Estimated Annual Revenue Growth added  10-15% 


using historical growth data (pre-scandal) 

First FY Return  $6,700,560,000 


 
Total Implementation Cost and Benefit of All Solutions 
 
Cost of Total Implementation $795,020,000

Revenue Growth Prediction over 1st year $7,925,540,000

1st year Gain on Investment $7,130,520,000


 
Summary/Conclusion 
Keystone Stakeholder 
Our keystone stakeholder is our users due to the fact that they are what affects our other 
stakeholders directly. This group of stakeholders is most concerned about their privacy and 
data security after the Cambridge Analytica Scandal. 
 
Synopsis of Solutions 
The Algorithm Method uses a ranking system to show users the importance of their posts to our 
company. The ranking system goes as follows: 1 ​ . Friends & Family, 2. News & Events, 3. 
Entertainment, 4. Ads. This new algorithm will help increase user posting which will directly 
increase our revenues. 
 
The 3-Step Method was outlined by Mark Zuckerberg, and this method focuses on security; this 
plan goes as follows: ​1) Investigate all apps with “access to large amounts of information” with 
a plan to ban developers that “misused personally identifiable information.” 2) Remove 
developer access to your data if you don’t use an app for over three months and restricting how 
much of your data developers can access at all. 3) Make sure users understand how apps can 
access their data and making it clear how to revoke that access. 
 
The 3rd method focuses on our communication with our customers, as we have historically 
shown poor efforts to communicate issues and advances we have made, causing the public to 
distrust us and our mission. With the Communication Solution, we will explain our efforts as 
simply as possible to our users, focus our restructuring of trust on communication and 
education, and continue providing simplistic privacy settings and simplify our Privacy Policy so 
that people are aware of data usage. 
 
Benefits/Costs 
Starting with the overall implementation costs and benefits, we can see that overall costs will be  
$795,020,000, stemming mostly from the 3-step plan. This may seem like a very steep cost, 
however, the first year ROI is estimated at ​$7,130,520,000, coming directly from the estimated
10-15% revenue increase under these solutions.
 
Splitting up the value of each plan, we can see that there is negligible cost for programmers to 
create the new algorithm with the Algorithm Method and the Residual Income (assuming 5.5% 
growth predicted) added to our estimated revenue gain on Implementation in the first year 
would be $2,904,000,000, with a 3 year revenue growth prediction of $8,712,000,000. 
 
With the 3-Step Method, we see a large price tag of $795,020,000 but a large return of 
$1,244,980,000, which would double our investment. This method is one of the most important 
as it can be used in conjunction with others to highly benefit our users and Facebook itself. 
 
The Communication Method has no discernible cost, much like the Algorithm Method, but by 
getting across our message to users we can highly increase posting within the first year, and 
estimates show revenue growing by $6,700,560,000. The communication method is best used 
in conjunction with the 3-Step, due to it not actually affecting the security of the site itself, but 
rather making it easier for users to protect their privacy. 
 
Overall 
Data Security and user privacy is a major concern of our users, and that is why we must act on 
these issues. The solutions presented provide quantitative and qualitative information that 
shows it is beneficial for our company to invest in these matters. We have recommended 
through our solutions that these are best implemented in conjunction with each other, as the 
profit benefits and user complacency will benefit greatest. With the implementation of these 
solutions, our users will feel more secure and trust us to be the company we claim to be.  
 
   
Figure 1-1 (Facebook users’ trusting rate)

 
Figure 1-2 (Facebook users’ concerns) Information from Gallup  

 
 
Figure 1-3 (Jen King statement on Facebook Dating app) Quote from article at Cnet 
 
 
 
 
 
 
Figure 1-4 (Percentages of U.S adults and their confidence in the safety of their data) 
Chart from Pewresearch 
 
 
 
 
 
 
 
 
Figure 2-1 (February 2018-February 2019 stock trend) Chart by:Fidelity Investments 
 

 
Figure 2-2 (Stock/ Company strength analysis) 

 
Figure 2-3 (ESG Analysis) 

 
 
 
 
Figure 3-1 (Teen Social Media Graph provided by PewResearch) 

 
   
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