SBS – MBA

Management Information System

Assignment 1

STUDENT ID: SBSMBA19092664

UNIT TITLE: Management Information System

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NAME (in Full): Noora Mofeed Skaik

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 Contents
Answer 1......................................................................................................................................................................4
Answer 2......................................................................................................................................................................5
Answer 3......................................................................................................................................................................5
Answer 4......................................................................................................................................................................6
References....................................................................................................................................................................7

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This study©Al Tareeqah

source Management
was downloaded Studies - from CourseHero.com on 07-12-2021 08:30:30 GMT -05:00
by 100000828655086 2
2020

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 Assignment Instructions
You must read thoroughly the compiled article below, then answer ALL the following questions.
Follow the University’s guidelines for assignment referencing, formatting and structure. Mark for
each question is given next to the question. Total mark for this assignment is 30.

Facebook – Data Privacy Dilemma

In 2018, Facebook founder and CEO Mark Zuckerberg came under fire from lawmakers,
testifying before a U.S. congressional hearing, for the Facebook data-privacy dilemma that
angered many users, causing panic in the stock market and intense inquiries from lawmakers and
regulators worldwide. Cambridge Analytica, a U.K.-based political data analytics firm, illicitly
procured the data of 50 million Facebook users, without their knowledge or consent.

In an interview with MSNBC, Apple CEO Tim Cook criticised Facebook’s handling of the
situation and argued that Apple could “make a ton of money” if it chose to monetize its
customers’ data. “This is not something that we just started last week when we saw something
happening. We’ve been doing this for years”.

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In response, Facebook detailed several steps it’s taking to set things right. It said it would
investigate all apps that had access to large amounts of information prior to 2014. Further, it

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announced new plans for restrictions on developers’ data access, adopting tougher policies and
terms for third-party app developers, shutting down certain programs, updating its privacy tools

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that were designed to make them easier to find and use, including an easier to use data
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management tool called ‘Access Your Information’ to provide a simpler way for users to manage,
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delete or download their posts or personal profile info, plus enabling users to easily see info that
the company uses to serve targeted advertising.
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Consequently, Facebook and other technology companies will be obliged and forced to comply
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with stricter European privacy protections. The European Union’s General Data Protection
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Regulation (GDPR), which came into effect May 25 2018, required companies to obtain consent
before collecting data from consumers. It also gave consumers the right to learn what companies
know about them and even ask a company such as Facebook to delete photos or any other data it
may have. While that, GDPR technically applies only to services offered to EU residents, given
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the global nature of many online services and the increased focus on privacy, some of the new
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rules could apply to U.S. users. It’s important to mention here that GDPR, was first drafted in
early 2012, passed despite heavy lobbying against it by big tech companies.
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Facebook tracks both its users and nonusers on other sites and apps. It collects biometric facial
data without users’ explicit “opt-in” consent. Facebook uses artificial intelligence to analyse users’
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behaviour. For example, among many possible target audiences, Facebook may offer advertisers
1.5 million people “whose activity on Facebook suggests that they’re likely to engage
with/distribute liberal political content” and nearly seven million Facebook users whom for
example, prefer certain goods in certain countries. Facebook uses software tools for tracking
activities. For example, when internet users go to other sites, Facebook may still monitor their
activities with software like its ubiquitous “Like” and “Share” buttons, and something called
Facebook Pixel — invisible code that’s dropped onto the other websites that allows that site and
Facebook to track a user’s activities.

Not only, Facebook mine information about users, but in fact many other companies, do similar
activities, such as for examples, news organizations like The New York Times. The reason that
Facebook was singled out for such practices, it was due to being a market leader and its
stockpiling of personal data is at the core of its $40.6 billion annual business. Despite that
Facebook requires
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 outside sites that use tracking technologies to clearly notify Facebook users, and allows them to
opt out of seeing ads based on their use of those apps and websites, that did not stop angry users
from raising their concerns over Facebook’s practices. Facebook stresses that, when users sign up
for an account, they must agree to the company’s data policy. It plainly states that its data
collection “includes information about the websites and apps users visit, users’ use of their
services on those websites and apps, as well as information the developer or publisher of the app
or website provides to them or Facebook.” But in Europe, some regulators contend that Facebook
does not obtain users’ explicit and informed consent to track them on other sites and apps. Their
general concern, was that, many of Facebook’s 2.1 billion users had no idea how much data
Facebook could collect about them and how the company could use it. And there is a growing
unease that tech giants are unfairly manipulating users.

To assure and deal with consumers and regulators’ discomfort and anger over the amount of
personal data that Facebook collects, Facebook announced an extended data privacy feature in the
F8 Conference May 2018 called the “Clear History,” feature for users to view what apps and
websites they interacted with on Facebook, allow them to clear their browsing history on
Facebook (eg. what they clicked on, websites they visited, etc.) as well as allowing them to bar
the social network from collecting it again moving forward.

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Questions: You must answer ALL question- (7.5 Marks Each)

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The mark for each question is given next to the question. The total mark for this assignment is 30.

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Based on the compiled article above, explain the steps Facebook took to overcome its data privacy crisis.
Explore the ‘Data Policy’ section on Facebook.com, and explain how a user can manage or delete his/her own
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information?
Answer 1
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Facebook decided to overcome the data privacy crisis as Mark Zuckerberg, the founder of Facebook also taking
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position as the Chief Executive Officer dealt with the huge argument that went into public which was
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announced that Cambridge Analytica used the users subscribed on Facebook information in its campaign for
Donald Trump without the permission of the own users.

Mark Zuckerberg had to announce his point of view by sharing a Facebook post with all the public. The post
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contained the following sentences that he said in published post "If we cannot then, we do not deserve to server
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you," "We have responsibility for protecting your data. "I tried to learn what had occurred exactly, and how to
ensure it didn't happen again. The good news is that we already did some years ago the most important
measures to prevent this from happening again. But we made errors as well, more has to be done, and we have
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to step up and do it."

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It has been announced that Facebook team planned to make a test for all the applications that they are dealing
with in order to ensure what information is being required by the other parties. It was mentioned that in case an
application does not comply with the standards they are measuring in their audit purposes they will block the
application in order to stop dealing with it and also a report button was provided to all users in order to report
any profile that abuse the terms of privacy on Facebook.

On the other hand, Facebook decided to restrict the information that is accessed by the website users.
Additionally, Facebook team added an important feature which directly shows which application the user is
subscribed to and the information being shared with the application owners.

On the Data Policy details in Facebook, users have the chance to view how their information is being displayed
to other users whether they are added on their friends list or they are only viewing their profile. Also, Facebook
is sending notifications once the user access an application to make the user aware of the privacy terms.

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 1. Search the Web for the GDPR, then answer the following questions: Explain the purpose of
GDPR. Describe at least three the key privacy and data protection requirements of the GDPR.
Answer 2
General Data Protection Regulation (GDPR) is a European Union’s standardized data protection laws. It has
been told that all the participant countries of European Union implement these systematize laws in order to make
sure that better privacy is provided and give data rights for the participant country people.
The GDPR was initially planned in the beginning of the year 2012 but a time was needed to implement it as a reason
of the strong urging against the idea from the big tech companies.

Companies such as Facebook had to obtain permission prior to gathering data from users. It gives users all the right
to gather information about what Facebook and other technology companies are informed about their own details.
On the other hand, it allows users to ask these companies to delete their private information such as photos or any
other data that they might have.

The main objective of GDPR is to regulate data protection laws for the participant countries of European Union in
addition to empowering users and protecting their privacy rights. As well as, providing emergency notifications to

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notify the user from a data breach eventuality.

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The three key privacy and data protection requirements of the GDPR are presented as the following:
Requiring the consent of consumers for data processing.

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 Un-acknowledging i.e. removing identifying and details from collected data in order to protect
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privacy of users.
 Notifying consumers about data breach
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2. Describe Facebook’s e-business model and revenue model. Discuss Facebook’s business benefits
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and challenges.
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Answer 3
Facebook e-business model and revenue model is as the following:
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 Users: Facebook’s is mainly based on the number of users that created their accounts on the website. All users
are using the website to communicate with a variety of people in the world and connect to old friends in addition
to interact with people with the similar interest.
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 Advertisers and Marketers: Companies and advertisers also form a part of Facebook users base that earns
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revenue for the company by placing offers and promotions on the website
 Developers: Facebook has its own application and online games by whuch users can play while the game
developers such as Zynga and Facebook both benefits and generate revenue.

Facebook always got the benefit as it is the most popular social media website. In addition, many
applications are paying Facebook in order to be on their website. Moreover, Facebook is benefiting from
all the companies that are advertising on their website as they are targeting many people world wide. The
challenge remains that Facebook should always consider the data breach and the privacy of users
especially that Facebook is now linked to Messenger and also Instagram which means that one user can
have more than account to access and if the account was hacked the leak of information is high.

3. Evaluate in general terms, the challenges facing social networking websites and identify ways
companies can prepare to face these issues.
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 Answer 4
There are many challenges that are facing the social networking websites. First of all, the data of the users
are always a target for third party companies in order to take the data and use them in their own business.
Secondly, many users create fake accounts in order to be able to access other people’s profile. On the other
hand, hacking of accounts is a real challenge. Nowadays, companies such as Facebook is dealing with the
hacked accounts by putting more restricts to access an account for example asking secret questions and
also identify phone numbers. Also, companies must always know what application are being allowed to be
used on their own platforms.

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 References

2019. Facebook Business Model | How Does Facebook Make Money.[online]. Available from:
https://www.feedough.com/facebook-business-model-makes-money/ [Accessed on 4th September 2020, 10
AM].

Len Sherman. 2018. Why Facebook Will Never Change Its Business Model. [online]. Available from:
https://www.forbes.com/sites/lensherman/2018/04/16/why-facebook-will-never-change-its-business-
model/#551a129864a7 [Accessed on 2nd September 2020, 10:30 AM].

Facebook Business Model | How does Facebook make money?. [online]. Available from:
https://bstrategyhub.com/facebook-business-model-how-does-facebook-make-money/ [Accessed on 2nd
September 2020, 4:45 PM].

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