University of Luzon

College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021

Case Analysis:

Facebook, Inc.
Submitted by:

Alo, Ireshe V.

Basuel, Alyssa Mae

Jose, Winz Valerie M.

Jose, Vanix Ann Laurice M.

Joven, Al Vincent

Macaranas, Carla M.

Ocbo II, Ricardo G.

Tiu, Neekcole P.

Submitted to:

Prof. Dante P. Narciso

 University of Luzon
College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021

TABLE OF CONTENTS

Background of the Study

Introduction

Statement of the Problem

Objectives of the Problem

Alternative Courses of Action

Analysis

Findings or Conclusion

Recommendation

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 University of Luzon
College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021

Background of the Study

Facebook is undeniably the world’s largest, successful and well-known

social media networking site out in the public now with its humble beginning

way back 2004 who would have thought that it will grow big like this with 1.3

billion active users and counting. Facebook was co-founded by Mr. Mark

Zuckerburg and his roommates in their dorm during their stay in Harvard

University. Initially, Facebook was created for the use only of the Harvard

University students but eventually Mark Zuckerburg and his roommates gave

access to the Ivy League Universities and Stanford University, and later on as it

grows more popular in their community they also gave access to other

universities, as well as Boston Area High. Today, Facebook has grown into a

phenomenon and anyone over the age of 13 can have access to Facebook, a

social media loved by millions of people.

Facebook Inc. is located in Menlo Park, California, it is considered the

largest social media network in the world. In the year 2014 Facebook ended

with the record of total 890 million users, 745 million of which are logging in

daily in their mobiles, and $3.851 million in revenue. The company spends

29% of its revenue that is equivalent to $1,831 billion in investing to new

property and equipment, and research and development for the continuous
 University of Luzon
College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021
excellent service of the networking site and continuous progress of the

company.

As time goes by, Facebook is becoming bigger and wider in scope, its

popularity became an avenue to obtain free marketing and advertising for

businesses all around the world by simply posting on their ”wall” to their mass

audience. With this opportunity the company launched its audience network in

2014, which allowed advertisers to run their Facebook ads on third party

mobile application. Individuals who wishes to gain exposure based on free

advertising and marketing will no longer obtain the high-traffic distribution to

their page fans. The only way entrepreneurs and small business owners can

receive high volumes of distribution of their material is to pay Facebook for

their product service exposure. The more money paid by the individual or

business, the more reach their message will be distributed. Facebook also

initiated product ads, which shows users pictures of products and prices, once

the user has visited a specific product website, and also based on the user’s

interest and location. Then in 2015, Facebook unveiled its own mobile

advertising distributor, similar to its rival Twitter’s MoPub to gain and attract

more business. With these, it is not questionable that the company garnered a

total of $3.6 billion revenues from advertising and $257 million in collected

payments and other fees.

 University of Luzon
College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021
Facebook grew bigger and bigger and now has 14 subsidiaries namely

Facebook Benelux, Facebook Brazil, Facebook Canada, Facebook France,

Facebook Germany, Facebook India, Facebook Italy, Facebook Korea, Facebook

Norway, Facebook Portugal, Facebook Spain, Instagram, Oculus VR,

and WhatsApp. The company also has a hybrid company structure divided by

regions and product. One of the subsidiaries of the company is Instagram, it is

also one of the social networking site which is recently acquired by the

company which caters mostly teenagers to young adults. This is the leading

photo-sharing and video-sharing social media service in the web now.

Social Networking plays an important role within our global society now.

It allows individuals to connect with each other, keep in touch with old friends,

and gives society the ability to explore your interests and hobbies. Facebook is

living with its mission which is “to give people the power to share and make the

world more open and connected” and to Zuckerburg’s desire for the company to

“Stay connected with friends and family, Discover what is going on in the

world, and Share and express what matters to the individual”. Considering the

emergence of the technology and use social networking sites globally, human

resource managers of different companies usually search their potential

employee online to review this certain person’s social media influence thus

users now create their own personal brand or image wherein people are
 University of Luzon
College of Accountancy
Perez Blvd., Dagupan City, Pangasinan
2020-2021
combining their social media applications for future references and

employment.

It is undeniable that social media is expanding and many concerns are

floating concerning these matter. There are hundreds of competing online

social media platform in the internet world now. The researchers now want to

discover

what are the advantages and edge of the Facebook, Inc. among the other

companies. In addition, Facebook requires us personal information to make, to

access and for continuously usage of their platform thus what is the level of

assurance that Facebook, Inc. can give to us as the users in terms of the

security of our personal information, and our privacy.