Arab Academy for Science, Technology

MBA Program
Strategic Management
Group: 3rd (Strategic)(S3)

Submitted To: - Respected Dr. Hanady Ragaii

Prepared By: - Eng. Samir Mohamed El-husseiny
ID No. : - 21225598

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 Table of Contents
Introduction ......................................................................................................... 4
Organization Overview ................................................................................................................ 4
Facebook Inc. Rebrands to ‘Meta’......................................................................................... 6
Social Media Purpose............................................................................................................ 8
Main Competitors .............................................................................................................. 10
Type of audience ................................................................................................................. 10
Company financials ............................................................................................................. 10
Annual revenue....................................................................................................................11
Gender distribution of social media audiences..................................................................... 11
Detailed Meta Statistics in 2023…………………………………………………………………………………………12
Vision & Mission Statements ……………………………………………………………………………………….13
Vision ...................................................................................................................... 13
Current Vision .............................................................................................................................. 13
Criticism of Current Vision .......................................................................................................... 13
Proposed Vision .......................................................................................................................... 13
Mission ................................................................................................................... 14
Current Mission ........................................................................................................................... 14
Criticism of Current Mission ....................................................................................................... 14
Proposed Mission ....................................................................................................................... 15
Core Values ........................................................................................................... 15
SWOT ................................................................................................................. 16
Strengths........................................................................................................................................ 17
Weaknesses.................................................................................................................................... 19
Opportunities.................................................................................................................................. 20
Threats............................................................................................................................................. 21
TOWS ................................................................................................................. 24
SITUATIONAL ANALYSIS……………………………………………………………….…………27
External Environment Analysis .............................................................................. 27
PESTLE Analysis ................................................................................................................. 27
Political Factors..................................................................................................... 27
Economic Factors................................................................................................... 28
Social/Socio-cultural Factors.................................................................................. 29
Technological Factors............................................................................................ 31
Environmental Factors........................................................................................... 32
Legal Factors........................................................................................................... 33
PESTEL Analysis of Meta’s Business......................................................................... 35
Porter’s Five Forces............................................................................................................. 36
Competitive Rivalry..................................................................................................... 36
Bargaining Power of Buyers........................................................................................ 37
Bargaining Power of Suppliers.................................................................................... 38
Threat of Substitutes.................................................................................................. 39
Threat of New Entrants.............................................................................................. 40
EFE External Factor Evaluation.............................................................................................. 42
CPM “Competitive Profile Matrix” ......................................................................................... 43

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 Internal Environment Analysis ............................................................................... 45
IFE External Factor Evaluation..................................................................................................... 45
Value Chain Analysis .................................................................................................................. 46
Primary Activities............................................................................................................. 47
Inbound logistics....................................................................................................... 47
Operations................................................................................................................ 48
Outbound logistics.................................................................................................... 49
Marketing and sales.................................................................................................. 49
Service....................................................................................................................... 49
Support Activities........................................................................................................ 50
Firm Infrastructure..................................................................................................... 50
Human Resources Management: ............................................................................... 51
Technology.................................................................................................................. 52
Mckinsey 7S ............................................................................................................................... 53
VRIO ........................................................................................................................................... 65
9 6Matching Phase .....................................................................................................
IE Matrix ..................................................................................................................................... 69
SFAS ........................................................................................................................................... 71
BCG ............................................................................................................................................ 72
Meta’s organizational structure............................................................................. 77
Decision Phase ...................................................................................................... 79
QSPM ......................................................................................................................................... 79
Space matrix.............................................................................................................................. 84
Strategy Implementation........................................................................................ 86
Innovation Strategy ..........................................................................................................86
Implementation Matrix for Innovation Strategy...........................................................................86
Product/service Development Strategy.............................................................................................90
Implementation Matrix for Product/service Development Strategy.................................................91
Evaluation and control.......................................................................................................... 95
Balanced Score Card for Innovation Strategy................................................................................ 96
Balanced Score Card Product/service Development Strategy....................................................... 97
Executive Summary ................................................................................................................... 98

References ................................................................................................................................. 101

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Introduction

Organization Overview

Facebook is a technology company and social network based in the United

States. The firm was developed in 2004 by Chris Hughes, Dustin Moskovitz,
Eduardo Saverin, and Mark Zuckerberg (Hall, 2021).
The initial idea of starting the company came from Mark
Zuckerberg. Facebook's headquarters are situated in
California, Menlo Park. Initially, the platform was launched
in college, where users were allowed to post updates and
create profiles to connect with friends ("Facebook," 2022).
With time the site become famous for its capability to
share photos and videos, the like button, and the messaging option. Research
indicates that in the past thirteen years, Facebook has developed into a huge
advertising platform ("Facebook," 2022). In addition, the company has taken the
initiative to spearhead the provision of internet access in underdeveloped
nations. Besides, the firm is also venturing into virtual reality and artificial
intelligence. With Zuckerberg as the CEO, Facebook has grown to include over
one billion active clients, whereby most of them access the platform through its
mobile app ("Facebook," 2022). As of 2021, it was the most prominent social
site globally, with around 3 billion users, and almost half of them were utilizing
the platform daily (Hall, 2021). Notably, access to the forum is free; thus, the
company primarily earns its cash from advertisements.
On the 28th of October 2021, Facebook’s annual developer conference took
place which was called Oculus Connect for the past seven years, the pandemic
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caused the event to be in a completely online mode which has no in-person
attendance.
During the conference, Mark Zuckerberg announced that Facebook will be
called Meta from now on. He said that the company’s name Facebook does not
cover everything that they do right now and=d also that they are tightly linked
to one product. He hopes that Facebook will be seen as a Metaverse company
in the future.
Meta the short form of Metaverse which will be an online concept that helps its
users shared software, games, and experiences virtually across multiple devices.
The metaverse is a place for entertainment, work, socializing, education, fitness
and more.
Building of metaverse is like building a Virtual Reality into a computing platform
like a mobile phone or a laptop that we use today.
Meta (previously known as Facebook Inc.) is the global social media giant. It is
one of the Big Five global technology companies among Amazon, Apple, Google,
and Microsoft. Meta is the world’s largest social media company with over 2.91
billion monthly active users as per the last media release for Q3 2021. Besides
its huge social media platforms, Meta owns and operates several other big-
name companies, such as Instagram, WhatsApp, and Oculus, under it as a
parent company.
Meta also has an amazing work environment, known by its strong culture where
game days, weekly Q&A sessions with CEO Mark Zuckerberg, and chocolate
fountains are the norm. Despite the COVID-19 pandemic, in 2020, the company
grew its workforce to more than 50,000 about 25% increase.

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Supporting this workforce is a matrix organizational structure that has been
adapted to suit the needs of the company’s varied information technology and
Internet operations.

Facebook Inc. Rebrands to ‘Meta’

In late October 2021, Facebook Inc., the parent company of the social media
website that shares the same name, announced that it would be rebranding
with immediate effect to ‘Meta’.
According to Mark Zuckerberg, Meta brings together Facebook Inc’s entire
family of apps and technologies under a new brand. Meta will focus on bringing
the so-called “metaverse” to life and help people connect within it.
It’s worth noting that this rebrand is just that–a rebrand. While Facebook Inc.
has changed its name to Meta, everything else is staying the same; the company
has reported that there will be no changes to its operations or organizational
structure except for how its financials are reported. The only change besides the
name is that begainning from the fourth quarter of 2021, the company will
implement a new financial reporting structure with the following segments:

 Family of Apps (FoA), which includes Facebook, Instagram, Messenger,

WhatsApp and other services.

 Facebook Reality Labs (FRL), which includes augmented and virtual reality
related consumer hardware, software and content.

And here are the subsidiaries that Meta has:

 Facebook app
 Messenger
 Instagram
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 WhatsApp
 Oculus: which is a virtual reality and gaming company
 Workplace
 Portal: AI-powered video-calling devices company
 Novi: is a digital wallet.

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Social Media Purpose
With billions of people throughout the world spending more time at home,
socially isolating themselves, and attempting to keep in touch despite
restrictions, all major social platforms appeared to prosper in 2021, reporting
monthly active usage rise compared to 2019.

TikTok, the most popular 2020 trend, saw the largest growth, with a 38 percent
increase in monthly users throughout the examined period. Reddit came in
second, followed by Pinterest. But, older firms such as Facebook and Twitter
experienced significant growth.

The top four Purpose for using social media

• To spend free time

• To find items that are humorous or enjoyable.

• To stay informed about current events and news.

• To maintain contact with a friend

Consumers were detoxing from platforms that turned out to be good for their
mental health, as they helped to battle prevalent sentiments of loneliness
caused by extended periods of isolation and social alienation.

In 2014, users primarily used social media to keep up with what their friends
were up to and to offer their opinions or facts about their personal lives.

All of these purely "social" activities have seen a 40% drop in participation
today. However, in the absence of other forms of social interaction, consumers
have turned to social media to reconnect with their communities.

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In 2020, the COVID-19 pandemic caused significant disruptions to economic life
around the world, owing to both government restrictions and changes in
people's behavior. However, because different regions responded to the
pandemic in different ways, the virus's impact on individual economies varied
greatly. In such a crisis, policymakers benefit from up-to-date economic activity
assessments. However, economic indicators such as GDP take months to be
released. Recognizing that energy demand is frequently a leading indicator of
economic activity, EPIC scholars created a daily electricity demand tracker for
countries, regions, and cities around the world.

This paper consists of 9 sections. The first section, Meta (FB), is the company’s
abstract and introduction. The second section covers mission and vision. The
third section covers the external environments that the company used PESTEL
and Five Porte’s forces methodologies to conclude our external environment.
The fourth section is about the internal environmental analysis that the
company should use BCG's Matrix, VRIO Analysis, and Financial Statement to
evaluate the current internal environment of the Meta Company.

The fifth section is the quadratic analysis, which covers the SWOT analysis and
the TWOS analysis, IFAS, EFAS, SFAS, QSPM which were conducted on the basis
of the SWOT analysis. Afterward, we conducted the IFAS and EFAS Matrix.
Afterwards, the QSPM was conducted, which refers to a suitable strategy for the
Meat (FB) Company that should be conducted.

The SIXTH section covers strategies and strategic objectives implementation

Matrix of the suitable strategy to implement for the current time to match all
the environmental factors that are concentric diversification. It was selected

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based on the current company position. This section is about the strategic
objectives. There are five objectives stated in this section. The seventh section
covers the strategy map, structure and control mechanisms, and the internal
policies for each department inside the company that should be using them, but
first an overview of the company’s organizational structure and the Board of
Director hierarchy, which is about the evaluation and control mechanisms that
can be used in the META (FB) company. The eighth section conclusion about the
company. The Nineth section covers references.

Main Competitors:
Google, Snap, Twitter, LinkedIn, YouTube, WeChat, Amazon, Pinterest,
Microsoft, Apple
The slogan for Meta "The word 'meta' originates from the Greek word [μετά]
meaning 'beyond,'" he added, presenting an animated symbol that looks like an
infinity symbol also at times an infinity sign, symbolizing infinite horizons in the
metaverse. Infinity sign refers to an unlimited or eternal period of time. that are
timeless, unlimited, and unbounded for Meta Company Features and services.

What type of audience does Facebook target to?

The people you wish to target with your Facebook ad are known as your
Facebook audience. Businesses can select demographics, locations, and
interests of Facebook users in order to acquire the most relevant information.
Facebook employs multi-segment positioning and, as a result, combines several
social media channels to target multiple client categories at the same time with
total market share by 72.22%.
Company financials
Although Meta generated an impressive 116.6 billion U.S. dollars in annual
revenue in 2022, the company reported its first ever decrease, down from 117.9
billion U.S. dollars for the fiscal year 2021. This decrease in revenue is still
substantial growth of around 36 percent when compared to 2020’s annual
revenue of 85.9 billion U.S. dollars. Additionally, around 98 percent of Meta’s
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annual revenue is generated by its Family of Apps, with the remaining two
percent being generated by Reality Labs. The vast majority of Meta’s revenue
is produced through advertising.
Annual revenue generated by Meta Platforms from 2009 to
2022, by segment (in million U.S. dollars)

Gender distribution of social media audiences worldwide as of January

2023, by platform

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Detailed Meta Statistics in 2023
Meta Platforms, Inc. Has 3.6 billion Monthly Active Users
Facebook Inc was renamed Meta Platforms Inc during their annual connect
conference in 2021.
The combined monthly active users across Facebook, Instagram, and WhatsApp
have surpassed 3.6 billion users around the globe.

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Vision & Mission Statements

1. Current Vision (Meta, 2021)

“Our company’s vision is to help bring the metaverse to life.”

2. Criticism of Current Vision

The company’s vision is good since it is futuristic and inspiring. we also suggest a
new vision statement

3. Proposed Vision

“We envision a world without barriers, opened and connected”

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1. Current Mission

“To give people the power to build community and bring the world closer
together” (Meta, 2021)

2. Criticism of Current Mission:

The mission statement must include as much as possible of the following

components to be effective:

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The current mission statement includes only three components of the nine
which the ideal corporate mission statement should include. It includes the
customers however it did not mention the businesses. It also mentioned the
intended target market and the service it provides but did not include the rest.

3. Proposed Mission

The suggested mission statement is rephrased to include all the nine

components as following:

“To give people and businesses the power to build community and bring the
world closer together in socially responsible way, believing in everybody’s
right to freely express himself. And to be the world’s most profitable
multinational social service provider, utilizing the latest innovative technology,
research and development, by the help of our highly skilled team members to
make the best use of our unprecedented reach and our huge members’ base.”

Core Values are not available on META website.

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SWOT (strengths, weaknesses, opportunities, and threats)

SWOT analysis is a framework used to evaluate a company's competitive

position and to develop strategic planning. SWOT analysis assesses internal and
external factors, as well as current and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look
at the strengths and weaknesses of an organization, its initiatives, or an
industry. The organization needs to keep the analysis accurate by avoiding pre-
conceived beliefs or gray areas and instead focusing on real-life contexts.
Companies should use it as a guide and not necessarily as a prescription.
Understanding SWOT Analysis

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SWOT analysis is a technique for assessing the performance, competition, risk,
and potential of a business, as well as part of a business such as a product line
or division, an industry, or other entity.
Using internal and external data, a SWOT analysis can tell a company where it
needs to improve internally, as well as help develop strategic plans.
Using internal and external data, the technique can guide businesses toward
strategies more likely to be successful, and away from those in which they have
been, or are likely to be, less successful. An independent SWOT analysis
analysts, investors or competitors can also guide them on whether a company,
product line or industry might be strong or weak and why.

1. Internal Factors

1.1 Strengths:

 S1 Large active users base: Meta has

unprecedented users base with a 3.51 billion
users which increase its appeal to the
businesses and marketers. Meta’s social platforms has an active users
reach of 2.91 billion monthly as of the third quarter of 2021 making it the
biggest social network worldwide ((Statista, 2021)
 S2 Massive database which provides value to the advertising business. This
data is crucial for advertising since it can show user preferences and
behaviors which give Meta a competitive advantage that is hard to
replicate.
 S3 Powerful advertising and marketing approach: Due to the massive data
base it has and its unique ability in customer targeting the company
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 attracts a very large number of advertisers. The major income source for
Meta is advertising, with 28.2 billion dollars of revenue came from
advertising in the third quarter of 2021 which is 56% higher comparing to
the same period last year with gross profit margin if 81% (Statista, 2021)
(WSJ, 2021).
 S4 Strong market position: As of 2020, Meta had 59% of all the social
media users which puts it as the leading social platform (emarketer, 2021),
the large popularity of the social network of Meta with nearly 3.51 billion
people using Facebook, gives it a strong competitive position in the
advertising industry.
 S5 Focus on R&D and technological innovation: The company has a strong
technical research and development team and it focus on technologivcal
innovation and spend most of the revenue on r&d. In 2020,Meat increased
its investment in R&D from $13.6 in 2019 to 18.45 billion (Statstic, 2021)
 S6 High revenues, fast revenue growth and high profit margin: Driven by
the increase in the users base and technological innovation, the company
has a solid growth in revenues in recent years. Meta revenue has more
than trebled increase in the last five years from 27.54 billion dollars in
2016 to $85.97 billion dollars in 2020. With an increase in the revenue in
2020 by 22% comparing to the previous year with a net income of 29.15
million dollars in 2020 comparing to 18.5 billion dollars in the previous
year. (Statista, 2021)
 S7 Imaginative Leadership: Mark Zuckerberg is a visionary leader with an
imaginative mindset, unlimited ambition and great management and
leadership style

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  S8 Innovative workforce and workplace culture: Meta has a globally
appreciated HR polices and workplace environment which help attracting
calipers and best professionals in the industry and contribute to the
innovativeness of the company.
 S9 Expanded advertising portfolio: Meta company diversified its
advertising portfolio where it extended away from Meta platform to own
many popular applications and platforms and companies such as
Instagram, WhatsApp, Messenger, Workplace, Calibra, Portal and Oculus.
Which some of them can be added to the advertising business and some
can be integrated with the social networking to create new innovations.
 S10 Excellent user experience and understanding: due to the integration
between applications and website and the integration between some of
its platforms like Facebook WhatsApp, and Instagram, which enrich the
user experience.

1.2 Weaknesses:

 W1 Weak protection of user’s data: Meta has been

struggling with user privacy related issues for years.
And despite the company’s announcements that
these problems are tackled, data breaches and information leakage
incidents keep happening. Many users stop using the platforms each time
new scandal go public, for example the company lost 15 million users in
2017 due to privacy issues related scandal.
 W2 Low business diversification: Meta company’s revenue is mainly
depending on advertising with 97.9 % of its revenue from advertising
which increase market risk exposure. In 2020, its advertising revenue was
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 84.2 billion dollars out of 86 billion dollars of total revenue (Fortune,
2021).
 W3 Impacted brand image due to the attitude and practices towards
users’ privacy: The Meta is accused of collecting users’ privet information
and storing it and using it for its own purposes or sells it. Such speculations
draw negative attention that damage the brand image and decreases
popularity of Meta’s platforms. The users are much more skeptical as to
which privacy policies they agree with.

2. External Factors

2.1 Opportunities:

 O1 Increasing the advertising revenue

by enhancing mobile based advertising
and marketing: Increasing Meta
platforms’ users through mobile phones represent a great opportunity.
Where 81.8% of the users access the Facebook from mobile phones,
however it accounts only for 16.5% of the company’s total profit
(backlinko, 2021) (Businessofapps, 2019).
 O2 Expansion to China by negotiating with the new elected government.
By negotiating with the new Chinese government to lift the ban on
Meta’s platforms will open a huge promising market
 O3 Governmental support for globalization provides an opportunity for
advertising for global businesses. Increasing regulatory support for free
Wi-Fi, as the regulations is encouraging for more access to internet.
Where the worldwide number of internet users continue to grow. And the

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 internet penetration in the developed countries is above 90 percent (
(Statista, 2021).
 O4 Economic stability increase and rapid economic growth and
disposable incomes increase in developing countries which increase the
ability of users to purchase devices and pay for internet to access the
company’s services.
 O5 Increasing preference and need for higher quality services as the
global financial capacity and living condition is improved, which can be
used to improve the services and charge higher prices.
 O6 Improving patent and product protection laws worldwide, which
protect the company’s innovations and patented services from imitation
with the expectation of legal protection.
 O7 Increasing in the global technological advancement, innovation, and
technological knowledge among people.

2.2 Threats:

 T1 Privacy Violation and Cybercrime: Data breaches,

security failures and fake identities if not treated and
contained will make the users distrust the company’s
security measures and eventually will stop using the
platforms.
 T2 In 2019, about 267 million Facebook user’s data (addresses, names
and mobile numbers) was breached in 2019.
 T3 Strong Competition: Despite the fact that the Meta is a social media
king, but it has very strong competitor in the advertising business from
many sources and alternatives such as the technology giant Google with

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 YouTube. And, TikTok with its increasing popularity, besides other online
streaming companies like Netflix. The gaming business also consider a
strong competitor as an alternative for business advertising.
 T4 Imitation: The company’s platforms and business model are easy to
be imitated by other companies and developers.
 T5 Increasingly saturated market may lead to the plateau of market
growth. So that will affect the company’s revenue if no products are
added or diversifying its portfolio with other businesses.
 T6 Slow growth rate of social media advertising. Despite the relative
increase than the expected rate affected by. The Covid-19 pandemic, it
decreased from 26.9% in 2019 to 18.3% in 2021 till ow and expected to
decrease to 16.6% in 2022 (Businessofapps, 2021)
 T7 Increasing internet regulation and online data, where governments
are increasingly working to limit online data collection, sharing, and
processing. This resulted from the data scandal of the Cambridge
Analytica and related issues in 2018. Meta’s platforms face an
increasingly strict level of regulations in many areas such US, Canda,
Australia and E. This regulatory pressure can hinder the company’s
growth.
 T8 Bans in conservative countries such as China and North Korea and
Iran, these bans are limiting the company’s reach to these areas.
 T9 Increasing digital taxes and tolls: UK and Europe are imposing these
taxes which will affect the company’s profit. And more countries will join
the club, where Canada will apply digital taxes on Facebook starting
from 2022

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 T10 Image and reputation crisis, increasing pressure and rumors around
the unethical usage of the collected data, such directing or promoting
for one political party or movement on the cost of the others and
manipulate people perception. If this issue escalated, it would lead into
millions of users stop using Meta platforms.

Strengths
S1 High revenues, fast revenue
growth and high profit margin
S2 Focus on R&D and
technological innovation
S3 Massive database which
provides value to the advertising
business
S4 Strong market position
S5 Large active users base
Opportunities
O1 Increasing in the global
technological advancement,
innovation, and technological
knowledge among people.
O2 Increasing the advertising
revenue by enhancing mobile
based advertising and marketing
O3 Increasing preference and
need for higher quality
O4 Economic stability increases
and rapid economic growth and
disposable incomes increase in
developing countries
O5 Improving patent and product
protection laws worldwide
Weaknesses
W1 Low business diversification
W2 Weak protection of user’s
data
W3 Impacted brand image due to
the attitude and practices towards
users’ privacy
Threats
T1 Strong Competition
T2 Privacy Violation and
Cybercrime
T3 Imitation of the company’s
platforms and business model
T4 Image and reputation crisis
T5 Increasingly saturated market
may lead to the plateau of market
growth

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TOWS Analysis

TOWS analysis is a strategic planning tool that helps organizations identify their
strengths, weaknesses, opportunities, and threats, and then match them up to
create action plans. TOWS analysis takes the SWOT framework a step further by
examining the relationships between internal and external factors. It’s a great
next step after completing your SWOT and allows for you to take action from
the analysis. The main purpose of TOWS analysis is to:

 Reduce threats
 Take advantage of opportunities
 Exploit strengths
 Remove weaknesses
By analyzing the relationships between these factors, organizations can gain a
deeper understanding of their strategic position and make more informed
decisions.

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 Strengths Weaknesses
S1- High revenues, fast revenue W1- Low business
Internal factors growth and high profit margin diversification
S2- Focus on R&D and W2- Weak protection of
technological innovation user’s data
S3- Massive database which W3- Impacted brand image
provides value to the advertising due to the attitude and
business practices towards users’
S4- Strong market position privacy
External Factors S5- Large active users base

Opportunities SO – Using strengths to WO – mitigate weaknesses,

O1-Increasing in the maximize opportunities to exploit opportunities
global technological (W1, O1, O3, O4, O5)
(S1, S2, S3, S4, S5, O1, Q2, O3)
advancement, Innovation Strategies
innovation, and Product/Service Development
Providing new innovations of
technological knowledge By using the R&D and financial
product/service where the
among people. capabilities to add new features company will take advantage
O2- Increasing the to the platforms to satisfy the of being the first mover and
advertising revenue by increasing need for higher quality place the company within the
enhancing mobile based services and to upgrade the current innovation trends of
advertising and application to increase the the industry. And will help in
marketing mobile-based advertising removing the obstacles that
O3- Increasing revenues. the bad brand image is
preference and need for (S1, S3, S4, S5, O4 O5) putting in the way of
higher quality Market Penetration exploiting the opportunity of
O4- Economic stability By using the financial technological advancement,
increase and rapid capabilities, R&D and database in the increasing preference for
economic growth and promoting to increase our higher quality, improving
disposable incomes market share in the developing patent laws and financial
increase in developing countries. capabilities in developing
countries countries.
O5- Improving patent (W1, W3, O1, O2, O3, O4, O5)
and product protection Related diversifications
laws worldwide Providing new
product/service related to the
main industry to diversify the
business portfolio and reduce
the risk of exposure and also
to enhance the reputation by
the introduction of the new
product/service which will
enable the company to exploit
25

Threats ST – using strengths to minimize
T1- Strong Competition threats
T2- Privacy Violation and (S1, S2, S3, S4, S5, T1, T3, T5)
Cybercrime Related diversifications
T3- Imitation of the By using the financial
company’s platforms capabilities, R&D and database
and business model to introduce new
T4- Image and product/service related to the
reputation crisis main industry which will reduce
T5- Increasingly the imitation risk, give the
saturated market may company chance to avoid the
lead to the plateau of damage of bad reputation, and
market growth will be the first mover in this
area which will avoid the market
saturation threat.
(S1, S2, S3, T1, T2, T3)
Product/ Service Development
To use the R&D and financial
capabilities to add new features
that will give the company a
competitive advantage over the
competitors and make it harder
for newcomers to imitate the
service. And also, to upgrade the
security measures of the
platforms against cyberattacks
which will protect the company
from future reputation damage.
26
all the opportunity.
(W2, W3, O1, O2, O3, O4, O5)
Product/Service
Development
By enhancing the protection
and security features of the
platforms will help in
enhancing the brand image
and these two factors are
negatively affecting the ability
of the company to exploit any
of the available opportunities.
WT – minimize weaknesses
and avoid threats
(W1, W3, T1, T3, T4, T5)
Related diversifications
Providing new
product/service related to
the main industry to diversify
the business portfolio and
reduce the risk of exposure
and also to enhance the
reputation by the
introduction of the new
product/service and
strengthen the company’s
position against threat of
competition, imitation,
future reputation damage
and market saturation.
Situational Analysis

External environment assessment

PESTEL Analysis

Political Factors Affecting Meta’s Business

Facebook’s business is linked to the political landscape. In this element of the

PESTEL Analysis, the effects of governments as external factors in the company’s
remote or macro-environment are determined. Political movements have the
power to shape the progress of businesses and entire industries. The following
are the major political factors influencing Facebook Inc.:

o Political stability in developed countries, which encourage for further

business diversification. (opportunity)

o Governmental support for globalization provides an opportunity for

advertising for global businesses. (opportunity)

 Increasing political pressure action on online data affected by regarding

data privacy and security issues as in Cambridge Analytica scandal. (threat)

 Political bans and restrictions in many markets such China, North Coria
and Iran markets. (threat)

The political stability of developed countries presents opportunities for

Facebook Inc. to continue diversifying its business in these markets. Also, the
company has the opportunity to expand its social media and display advertising
services worldwide, based on governmental support for globalization. However,
27
Facebook could suffer from political barriers in China. The company’s potential
global growth is limited because of Chinese censorship. In addition, regarding
data privacy and security issues involving organizations like Cambridge
Analytica, governments are increasingly working to limit online data collection,
sharing, and processing. This external factor can slow down the company’s
growth. Based on this element of the PESTEL/PESTLE analysis of Facebook Inc.,
the company must enhance data privacy and security, and continue negotiating
with the Chinese government to open up the display advertising market in the
country.

Economic Factors Important to Meta’s Business

Economic conditions shape Facebook Inc.’s business growth. This element of the
PESTEL/PESTLE Analysis considers the impact of economic trends and conditions
on the firm’s remote or macro-environment. The economic external factors that
affect the company are as follows:

o Economic stability increases in the developing countries, where Meta

could increase its market penetration efforts in these countries.
(opportunity)

o Rapid economic growth of developing countries leads into advancement in

all infrastructure which includes telecommunications infrastructure.
(opportunity)

o Disposable incomes increase in developing countries which increase the

ability of users to purchase devices and pay for internet to access the
company’s services. (opportunity)
28
 Facebook Inc. has the opportunity to increase its market penetration efforts
in developing countries with increasing economic stability. In relation, the
rapid economic growth of these countries leads to an improvement of
infrastructure, including telecommunications infrastructure. In this
PESTEL/PESTLE analysis, such an external factor supports an expansion of
access to Facebook’s social network. Moreover, the increasing disposable
incomes in developing countries improve users’ capacity to purchase devices
to access the company’s services, thereby also contributing to business
expansion. Such conditions support Facebook’s generic competitive strategy
and intensive growth strategies. This element of the PESTEL/PESTLE Analysis
indicates that Facebook Inc. has major opportunities to expand its
multinational operations, especially through market penetration.

Social/Socio-cultural Factors Influencing Meta’s Business

Environment

Facebook’s popularity and global reach is under the influence of social

conditions. The impact of sociocultural trends and changes on the company’s
remote or macro-environment is determined in this element of the
PESTEL/PESTLE Analysis. The following sociocultural external factors are most
notable in the case of Facebook Inc.:

o Increasing preference and need for higher quality services as the global
financial capacity and living condition is improved, which can be used to
improve the services and charge higher prices. (opportunity)

29
 o Online buying increasement create an opportunity for Meta to develop
and expand additional services to profit from online sales. (opportunity)

o Increasing support for corporate social responsibility. This could be used to

address the users’ expectations and gain more customer retention.
(opportunity)

 Increasing pressure and rumors around the unethical usage of the

collected data, such directing or promoting for one political party or
movement at the cost of the others. (threat)

 Increasing trends speaking the damaging health and social impact of long
hour usage of the social platforms. (threat)

 Data breaching and fake identities events. If these scandals escalated and
did not fix but increasing the privacy and security measures, will make the
user reduce or decrease their usage of the company’s platforms. (threat)

With increasing financial capacity and improving living conditions, people are
increasingly emphasizing high quality in the services that they use. In the
context of this PESTEL analysis, such a social condition presents an opportunity
for Facebook Inc. to improve its service quality standards to satisfy and retain
clients who pay for the company’s display advertising services. In addition,
increasing online buying worldwide creates opportunities for Facebook to
develop additional services to profit from retail sales generated through its
social networking website and related mobile apps. For example, the company
can offer better marketplaces to address this trend. The company also has the
opportunity to enhance its corporate social responsibility programs as a way of
30
satisfying the corresponding expectations of users. Based on the external factors
in this element of the PESTEL analysis of Facebook Inc., there are major
opportunities to improve the company’s services to optimize competitive
advantage.

Technological Factors in Meta’s Business

Technologies impact Facebook Inc., considering that it is a business founded on

online technologies. This element of the PESTEL/PESTLE Analysis identifies the
main technological influences on the firm’s remote or macro-environment. The
following technological external factors affect Facebook Inc.:

o Increasing use of mobile devices and the number of mobile users.

(opportunity)

o Increasing in the global technological advancement and technological

knowledge among people. (opportunity)

 Increasing number of online social media companies(competition), which

saturate the market and attract possible users away from Meta’s
platforms. (threat)

 Diversity of online retail firms, like Amazon, which can compete with Meta
in the advertising business. (threat)

 Privacy Violation and Cybercrime: Data breaches, security failures and fake
identities if not treated and contained will make the users distrust the
company’s security measures and eventually will stop using the platforms.
(threat)
31
Facebook has the opportunity to improve user experience involving its mobile
apps. This opportunity is based on the trend of increasing mobile device usage
worldwide. However, this PESTEL/PESTLE analysis

points to the threat of increasing competition, as more online social networks

attempt to attract users away from the company’s social media services. This
technological trend also leads to market saturation, which is a threat noted in
the SWOT analysis of Facebook Inc. Furthermore, the diversification of online
retail firms threatens to compete with the company. For example, giants like
Amazon.com is in a position to offer online advertising services through its
network of affiliate websites. This element of the PESTEL/PESTLE Analysis shows
that Facebook Inc. must continue improving its social media and display
advertising services to retain customers.

Environmental Factors

Facebook’s social media business is partly linked to the natural environment.

The effects of ecological issues and trends on the company’s remote or macro-
environment are determined in this element of the PESTEL/PESTLE Analysis. The
following ecological external factors influence the company:

o Increasing emphasis on business sustainability where the company can

enhance the sustainability of the business to gain the support of the
environmental activists. (opportunity)

o The complexity of waste disposal standards is increasing. Especially in the

western countries. Where the company can implement better waste
disposal procedures and gain more support. (opportunity)
32
 o Climate change, however, it is a threat. But if the company adapted low-
carbon emission procedure (switched into renewable energy) that would
improve the company’s public image. (opportunity)

 Climate change, due to the increasing in carbon emission restrictions the

company may be forced to move its servers and headquarter to another
location. (threat)

Facebook Inc. has the opportunity to enhance its social media business
sustainability to satisfy concerns regarding the natural environment. Also, the
company can implement better waste disposal policies and standards for its
corporate operations. Such effort can address the increasing complexity of
waste disposal standards, especially in Western countries. Facebook faces the
threat of climate change, which could prompt the business to transfer its servers
and other equipment to another location in the future. Improving Facebook
Inc.’s corporate social responsibility standing can help address the external
factors shown in this element of the PESTEL/PESTLE analysis.

Legal Factors

Laws impose requirements and limits on Facebook’s business. This element of

the PESTEL/PESTLE Analysis covers the effects of legal systems and regulations
on firms’ remote or macro-environment. The legal external factors notable in
Facebook’s case are as follows:

o Improving patent laws worldwide, which protect the company’s

innovations and patented services from imitation with the expectation of
legal protection. (opportunity)
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 o Increasing regulatory support for free Wi-Fi, as the regulations is
encouraging for more access to internet. Where the worldwide number of
internet users continue to grow. And the internet penetration in the
developed countries is above 90 percent (Statista, 2021). (opportunity)

o Internet regulation in China and North Korea, is consider an opportunity

and threat, where if it resolved by negotiation with these governments will
open a massive market for the company. (opportunity)

o Bans in conservative countries such as China and North Korea and Iran,
these bans are limiting the company’s reach to these areas.
 Increasing internet regulation on online data, where governments are
increasingly working to limit online data collection, sharing, and
processing. This resulted from the data scandal of the Cambridge Analytica
and related issues in 2018. (threat)

Facebook Inc. has the opportunity to innovate and introduce new products, with
the expectation of legal protection based on improving patent laws around the
world. In addition, this PESTEL/PESTLE analysis points to the increasing coverage
of free Wi-Fi as a beneficial trend. For example, based on this external factor, the
company can expand its social media reach in more areas worldwide. However,
Facebook suffers from its ban in China. Nonetheless, the firm has the
opportunity to adjust its services and negotiate with the Chinese government to
gain access to the country’s online social networking market. Online data
collection, sharing and processing regulation markedly increased in the
aftermath of the Cambridge Analytica scandal and related issues in 2018. This
external factor threatens the company and the online display advertising

34
industry. Overall, this element of the PESTEL/PESTLE Analysis shows that legal
external factors mainly provide opportunities that Facebook Inc. could take to
expand its operations and market reach.

PESTEL Analysis of Meta’s Business

This PESTEL/PESTLE analysis of Facebook Inc. stresses the importance of
strategic reforms to address major opportunities in the global social media and
online advertising market. The company needs strategies to protect the business
from the threats identified in this external analysis. For example, management
and strategies need to address the threat of governmental crackdown and
corresponding regulation on online data collection and processing. Such issues
require strategic management measures that recognize the urgency of
governmental and regulatory implementations.

It is recommended that Facebook Inc. address issues with China’s government to

penetrate the country’s social media market, which is among the biggest in the
world. The objective is to have the ban on the social network lifted. Another
recommendation is that the company should develop new products that
support online retailers to create new revenue streams for the corporation.
Moreover, based on this PESTEL/PESTLE analysis, it is recommended that
Facebook diversify its business. Diversification can reduce the firm’s market risk
exposure.

35
Porter’s Five Forces (external micro-environment)

Facebook Inc. Five Forces Analysis (Porter’s Model) &

Recommendations

Competitive Rivalry or Competition with Facebook Inc.

(Moderate Force)

Even with its leading social media market position, Facebook Inc. experiences
the significant impact of competition. This element of Porter’s Five Forces
Analysis model determines how competitors affect the company’s industry
environment. The following external factors lead to the moderate force of
competitive rivalry against the company:
 Small number of firms (weak force)
 Moderate variety of firms (moderate force)

36
  Low switching costs (strong force)

There are only a small number of companies that offer online display advertising
services similar to that of Facebook Inc. For example, YouTube LLC (a subsidiary
of Google LLC) has a social media website that offers targeted online advertising
service. In the context of this Five Forces analysis, the small number of
competing firms exerts a weak force against Facebook. However, the variety of
these firms helps attract advertisers, thereby imposing a moderate force in the
industry environment. In addition, the low switching costs (low difficulty of
transferring from one provider to another) make it easier for advertisers to shift
away from the company toward competitors. These external factors create the
moderate force of competition. Based on this element of the Five Forces
analysis, competitive rivalry is a major consideration in Facebook Inc.’s
management and strategic formulation.

Bargaining Power of Facebook’s Customers/Buyers (Strong

Force)

Customers impose pressure on Facebook Inc. in terms of what they want from
the company. The impact of consumers or buyers on the online display
advertising industry environment is examined in this element of Porter’s Five
Forces Analysis model. The following external factors lead to the strong force of
customers’ bargaining power on the company’s social network and related
services:

 High substitute availability (strong force)

37
  Low switching costs (strong force)

 High demand from buyers (weak force)

Facebook provides social media services to its members/users. However,

advertisers are the company’s primary source of revenues. These advertisers
have the option to use substitutes, which are highly available. For example,
instead of advertising on Facebook, customers could advertise on television,
radio and print media, all of which are widely available and effective in reaching
target audiences. In this Five Forces analysis, such a condition exerts a strong
force against the business, despite the social network’s strong popularity (see
SWOT analysis of Facebook Inc.). In addition, low switching costs are an external
factor that makes it easy for customers to shift away from the company’s social
networking website, mobile apps, and advertising services. This factor exerts a
strong force against the business. The high demand for online advertising
buffers the potential shift of advertisers and slightly weakens the bargaining
power of customers. This element of the Five Forces analysis shows that
Facebook Inc. must prioritize its customers to ensure competitive advantage.

Bargaining Power of Facebook’s Suppliers (Weak Force)

Suppliers are among the factors that influence Facebook Inc.’s social network
and display advertising services. This element of the Five Forces analysis shows
how suppliers affect firms and the industry environment. The following external
factors lead to the weak bargaining power of suppliers on Facebook Inc.:

 Moderate size of individual suppliers (moderate force)

38
  Large population of suppliers (weak force)

 High overall supply (weak force)

Examples of Facebook’s supply needs include servers and related computing

and network technology/equipment, as well as office supplies. Some suppliers
are large firms that exert a moderate force on the company. However, these
supplies are available from many manufacturers. In this Five Forces analysis, the
large supplier population is an external factor that exerts a weak force on
Facebook Inc. In relation, the high overall supply minimizes the influence of
individual suppliers on the company. Based on these external factors in the Five
Forces analysis, suppliers are a minimal issue in the firm’s social media and
online advertising industry environment. However, the company can improve its
management of supplier relationships through suitable strategies for the supply
chain. These strategies can contribute to Facebook’s corporate social
responsibility fulfillment involving suppliers, among other stakeholders.

Threat of Substitutes or Substitution (Strong Force)

Substitutes could potentially reduce Facebook’s business performance and

create challenges in the social media firm’s industry environment. The impact of
substitution is considered in this element of the Five Forces analysis. The most
notable external factors that create the strong threat of substitutes against
Facebook Inc. are as follows:

 Low switching costs (strong force)

 High substitute availability (strong force)

39
  Moderate cost of substitutes (moderate force)

It is easy for advertisers to pay for substitutes, such as television, radio and print
advertising, instead of paying for Facebook’s social media advertising. In the
Porter’s Five Forces Analysis framework, this condition exerts a strong force on
the company. In relation, the high availability of such substitutes strongly affects
the industry environment. Nonetheless, many of these substitutes, especially
television advertising, are more expensive than Facebook’s advertising services.
Such cost condition exerts a moderate force on the company. This element of
the Five Forces analysis shows that the threat of substitution is one of the major
issues facing strategic management at Facebook Inc.

Threat of New Entrants or New Entry against Facebook Inc.

(Weak Force)

The social media giant faces the negative effects of new entrants in the industry
environment. This element of the Five Forces analysis covers the impact of new
firms on the business. In this external analysis case of Facebook Inc. and its
social network and related products, the following external factors lead to the
weak threat of new entry:

 Low switching costs (strong force)

 High cost of brand development (weak force)

 High cost of customer loyalty (weak force)

40
New entrants exert a strong force against Facebook, due to the low switching
costs (low difficulty) of advertisers in moving from one service provider to
another. However, this Five Forces analysis also shows that it is difficult to
develop a popular and reliable social media brand similar to Facebook’s. It is
also difficult to build the loyalty of advertisers and users/members. This external
factor weakens the threat of new entry against the company. Based on this
element of the Five Forces analysis, new entrants are a minimal issue in
Facebook’s strategic formulation processes.

41
EFE External Factor Evaluation

The weight is ranging from 0.0 (low importance) to 1.0 (high importance).
While the rating is ranging from 4 to 1,
where 4 for (superior response),
3 (above average response),
2 (average response) and
1 (poor response).

Weighted
Opportunities Weights Ratings
Score

O1 Increasing the advertising revenue by enhancing mobile based advertising and 0.2 4 0.8
marketing
O2 Expansion to China by negotiating with the new elected government 0.07 2 0.14
O3 Governmental support for globalization 0.04 3 0.12

O4 Economic stability increases and rapid economic growth and disposable 0.08 3 0.24
incomes increase in developing countries
O5 Increasing preference and need for higher quality services 0.1 4 0.4
O6 Improving patent and product protection laws worldwide 0.1 2 0.2

O7 Increasing in the global technological advancement, innovation, and 0.1 4 0.4

technological knowledge among people.

Weighted
Threats Weights Ratings
Score

T1 Strong Competition 0.1 3 0.3

T2 Privacy Violation and Cybercrime 0.08 4 0.32
T3 Imitation of the company’s platforms and business model 0.05 3 0.15
T4 Image and reputation crisis 0.06 2 0.12
T5 Increasingly saturated market may lead to the plateau of market growth 0.02 2 0.04
TOTAL 1 3.23

The company’s total score is 3.23 which is above average indicates that the
company is in good position to catch the opportunities and avoid the threats and
reflect the company’s ability to respond to the external factors.

42
CPM “Competitive Profile Matrix”
Established in the year 2014 by Mark Zuckerberg, Facebook has since grown to
become a popular social networking service and boast of more than1.86 billion
monthly users by the last year 2016. By 2015, the company becomes the world
fastest corporation in the standard and poor’s index to reach a market cap of
$250 billion (Sun, 2015). A competitive profile matrix (CPM) describes a tool
used to compare a business and its competitors, and show their relative
strengths and weaknesses (Bhasin, 2016). The firm has a mission to give people
the power to share and make the world more open and connected. In the case
of competitive strengths, the company boost of around three most right
capabilities that include; the integration with website and applications, it has
over one billion active monthly users, excellent user experiences, and wider
understanding of the user’s needs and behaviors (Sun, 2015). Facebook
weakness includes a weaker click-through-rate (CTR) of advertisement of about
0.05% and close to 4% respectively, lack of website customization, weaker
protection of its user’s information, and poor attitude towards the user’s
privacy. Other weaknesses include its ability to have an advertisement on
Facebook only, and that the social network has limited features.

43
 Meta LinkedIn Google

item Critical Success Factors Weight Rating Score Rating Score Rating Score

1 Brand positioning 0.15 4 0.6 2 0.3 3 0.45

2 Social media Strategies 0.12 4 0.48 3 0.36 3 0.36

3 Geographical expansion 0.18 4 0.72 2 0.36 3 0.54

4 Financial position 0.12 4 0.48 3 0.36 4 0.48

5 Customer Loyalty 0.15 3 0.45 4 0.6 4 0.6

6 Service Quality 0.13 3 0.39 3 0.39 3 0.39

7 Product range 0.15 4 0.6 2 0.3 2 0.3

TOTAL 1 3.72 2.67 3.12

From the CPM table, we can conclude that Facebook Company is more stable
regarding its competitive strengths over that of LinkedIn and Google.

44
Internal Environment Analysis

IFE Internal Factor Evaluation

The weight is ranging from 0.0 (low importance) to 1.0 (high importance).
While the rating is ranging from 4 to 1,
where 4 for (major strength),
3 (minor strength),
2 (minor weakness) and
1 (major weakness).

Weighted
Strengths Weight Rating
Score
S1 Large active users base 0.15 4 0.6
S2 Massive database which provides value to the advertising business 0.1 4 0.4
S3 Powerful advertising and Marketing Approach. 0.06 3 0.18
S4 Strong market position 0.1 4 0.4
S5 Focus on R&D and technological innovation 0.05 4 0.2
S6 High revenues, fast revenue growth and high profit margin 0.1 4 0.4
S7 Imaginative Leadership 0.04 3 0.12
S8 Innovative workforce and workplace culture 0.03 4 0.12
S9 Expanded Advertising Portfolio. 0.02 3 0.06
S10 Excellent user experience and understanding 0.08 3 0.24
Weighted
Weaknesses Weight Rating
Score
W1 Weak protection of user’s data 0.1 1 0.1
W2 Low business diversification 0.1 1 0.1
Impacted brand image due to the attitude and practices towards users’
W3 0.07 2 0.14
privacy
TOTAL 1 3.06

The company’s score is 3.06 which is above the average score of 2.5 meaning
that company is strong against its competitors.

45
Value Chain Analysis

Value chain analysis is a strategic analytical tool that can be applied to analyses
business activities to be able to identify those activities that contribute most the
overall competitive advantage of the business. Facebook value chain analysis
provided below discusses sources of competitive advantage of the social media
company by referring to its primary and support business activities. Figure
below illustrates the essence of value chain analysis.

46
The abovementioned value chain analysis showed that the company can use its
capabilities (human, financial, technological resources) to create value through
different activities. By acquiring WhatsApp and Instagram company’s ability to
provide the “service” and “Marketing and sales” functions has been improved.
Also, its ability to analyze user’s information and preferences to make money
support its outbound logistics and operations. Meta’s assets can also be used to
support its inbound logistics. Its ability to design competitive models and
acquire the right advertisers and marketers can improved to enhance its
marketing and sales operations, improve its services, and eventually increase
profitability.

Primary Activities
Inbound logistics
Inbound logistics refers to how social media platform such as Meta Facebook in
the past collects resources and uses them according to its requirements.

47
Hardware, numerous types of technologies, and office supplies are among the
resources required by the social media business. In general, a value chain
analysis framework examines the processes of receiving, storing, and
transforming raw materials into finished items. Meta Facebook in the past has a
big variety of suppliers dealing with them. They have all the supplies from
different source. However, due to the nature of Meta’s business, tangible
resources such as hardware and technology are only secondary in nature, while
intangible resources are the key resources used to attract customers. Meta, in
particular, provides its users with distinct intangible 'products' of an informative
kind. As a result, inbound content logistics is extremely cost-effective, as the
content is uploaded by users in the form of words, photographs, and videos at
no additional expense to the company.
Operations
Meta Facebook in the past is accessible in more than 90 diverse languages, and
the company has workplaces or information centers in more than 30 nations
around the world. In addition, there are five back workplaces and more than 35
sales workplaces found universally. Around 84.5% of Facebook every day
dynamic clients are exterior the US and Canada. Facebook operations basically
include the change of crude substance into user friendly format. Meta’s
operations primarily entail the transformation of raw content into a user-friendly
manner via profile pages, timelines, real-time updates, news feeds, alerts, friend
location, apps, and other means. Meta is the most popular social networking
site in the world, with over 1.13 billion daily active users and 1.03 billion mobile
daily active users. In order to provide a reliable communication to such a vast
customer base, a large quantity of complex hardware, software, and data
centers, as well as more than 12500 workers, including technical employees, are
required.

48
Outbound logistics
Outbound logistics, in general, refers to the storing and distribution of the
products to customers, Outbound logistics refers to the delivery of packaged
content to users of the social media as Meta platform via its sites and
applications. Because there are no additional expenses associated with the
outbound logistics side of the business, the e-commerce nature of the business
is the primary source of value addition.
Furthermore, in 2016, the business launched a series of measures to lower the
time it takes for links to load by pre-fetching advertisers' websites, which is
expected to reduce mobile site load times by 29 percent, or 8.5 seconds. This
and other such projects give Facebook's overseas logistics division a
competitive advantage.
Marketing and sales
In 2015, the number of Meta platform Facebook in the past workers working in
marketing and sales climbed by 32%. Advertising contributed for 95 percent, 92
percent, and 89 percent of the company's sales in 2015, 2014, and 2013,
respectively. Facebook's use of the 7P's of marketing benefits from the location
and price parts of the marketing mix.

Since its inception in 2004, the social media company has been steadily
extending its target customer segment, and it leverages multi-segment
positioning, targeting numerous consumer categories with different social media
platforms at the same time.

Service
Facebook, Messenger, Facebook Watch, and Facebook Portal are among the
numerous services offered by Meta. It also owns a 9.99 percent share in Jio
Platforms and has acquired Oculus, Giphy, and Mapillary.

49
Support Activities:
Firm Infrastructure:
Quality management, planning, legal services, finance and accounting, and
general management are some of the operations that firm infrastructure
support activities include. Firm infrastructure activities support the whole value
chain, though the range varies due to industry-wide diversification.
Finance and planning, for example, are handled at the corporate level, whilst
quality control, accounting, and legal issues are handled at the business unit
level.
These are some of the roles they have:
1) Analytics & Strategic Planning:
-Leads the global data Centre roadmap's strategic planning, enablement, and
monitoring.
-Throughout the data center life cycle, data science support is provided to
enable strategic decisions and performance optimization.
2) Economic and Community Development:
In locations where we operate data centers, he leads our community
involvement efforts.
Develops and manages policy and risk mitigation initiatives to support
Facebook's global infrastructure expansion.
Wherever we work, Facebook is dedicated to being a force for good by creating
jobs, developing the economy, and supporting programs that benefit the
communities in which we live.

3) Sustainability:

50
The objective of our Sustainability team is to support the Firm’s capacity to
operate and develop effectively and ethically, as well as to empower individuals
to create sustainable communities.
Leads the company's overall strategy for achieving operational excellence in our
firm' concept, development, and operation. We place a premium on efficiency,
water conservation, and supply chain quality, and we're delighted to report that
our facilities are among the world's most water and energy efficient.
Human Resources Management:

The firm can evaluate different parts of human resource management, including
as recruiting, selection, training, rewarding, performance management, and
other personnel management operations. Meta's employees are engaged and
motivated by a good incentive management system, effective leadership
and collaborative tactics, and an effective culture and structure. Its culture has
always guaranteed that its employees are placed in positions where they may
excel. As a result, employees are given the option to choose which field they
wish to work in as soon as they are hired. Offering competitive salary and
other workplace advantages are another strategy for the company to keep its
personnel motivated. It also encourages its employees to work on difficult jobs
that allow them to develop their personal skills.
Based on the motivation, commitment, and abilities of its personnel, good HR
management can allow The Firm to minimize competitive pressure. The
organization can also achieve its cost-cutting goals by comparing the costs of
hiring and training to their respective benefits. The importance of this value
chain support activity will grow as Meta’s demand on employee talent grows.

51
Technology:
The metaverse will resemble a mix of today's online social experiences,
stretched into three dimensions or projected into the real world at times. It will
allow you to enjoy immersive experiences with others even when you are
unable to be physically present with them — and to do things together that you
would not be able to do in the actual world. This new technology will help a lot
to grow business worldwide to make life faster and easier.

52
Mckinsey 7s
The McKinsey 7s model is a strategic tool and framework that helps managers
and businesses assess their performance. The McKinsey 7s model identifies 7
key elements for an organization that need to be focused and aligned for
successful change management processes as well as for regular performance
enhancements.

Facebook focuses on the 7 elements identified in the model to ensure that its
performance levels are consistently maintained, and improved for the offerings.
1. Strategy
1.1. Clearly defined

53
The strategic direction and the overall business strategy for Facebook are clearly
defined and communicated to all the employees and stakeholders. This helps
the organization manage performance, guide actions, and devise different
tactics that are aligned with the business strategy. Moreover, the business
strategy’s definition and communication also make operations for Facebook
more transparent and aligns the responsibilities and actions of the company.

1.2. Guiding behavior for goal attainment

The strategic direction for Facebook is also important in helping the business
guide employee, staff, and stakeholder behavior towards the attainment and
achievement of goals. SMART Goals are set with short- and long-term deadlines
in accordance with the business strategy. The business strategy helps
employees decide tactics and behaviors for attaining the set goals and targets to
help the business grow.

1.3. Competitive pressures

Facebook’s strategy also takes into consideration the competitive pressures and
activities of competitors. The strategy addresses these competitive pressures
through suggestive measures and actions to address competition via strategic
tactics and activities that ensure sustainability to Facebook via adapting to
market changes, and evolving consumer trends and demands.

1.4. Changing consumer demands

An important aspect of the strategy at Facebook is that it takes into constant

consideration the changing consumer trends and demands, as well as the
evolving consumer market patterns and consumption behavior. This is an

54
important part of the strategic direction at Facebook as it allows the company
to remain competitive and relevant to its target consumer groups, as well as
allows the company to identify demand gaps in the consumer market.
The company then strategically addresses these gaps through product offerings
and marketing activities which give the company successful and leading-edge
over other patterns in the market.

1.5. Flexibility and adaptability

The strategy at Facebook is flexible and adaptable. This is an important aspect

of the strategic direction, and strategy setting at Facebook. Rigidity in strategy
leads a company and a business to often become stagnant and obstructs
advancement, and progression with evolving changes in the consumer markets.

With flexibility and adaptability, the Facebook is not only able to benefit from
quickly reacting and responding to changing consumer patterns globally, but is
also able to locally and culturally adapt its products via localization for different
countries and regions. Moreover, the company is often able to proactively
predict consumer market changes, and devise strategic changes accordingly to
meet the market trends.

2. Structure
2.1. Organizational hierarchy
Facebook has a flatter organizational hierarchy that is supported by learning and
progressive organizations. With lesser managerial levels in between and more
access to the senior management and leadership, the employees feel more
secure and confident and also have higher access to information. Moreover, the

55
flatter hierarchy also allows quicker decision-making processes for Facebook
and increases organizational commitment in the employees.

2.2. Inter-Departmental coordination

Facebook has high coordination between different departments. The company’s
departments often form inter-department teams for projects and tasks that
require multiple expertise. All coordination between different departments is
effective and organized. Facebook has a systematic process for initiating and
monitoring coordination between departments to ensure smooth work
operations and processes – and goal attainment.

2.3. Internal team dynamics [department specific]

Facebook encourages teamwork and team-oriented tasks. Where jobs require
individual attention and scope, the company also assigns individual
responsibilities and job tasks. However, all employees at Facebook are expected
to be team players who can work well with and through other members, and
who get along well with other people. The teams at Facebook are supportive of
all embers and work in synch with synergy towards achieving the broader team
objectives and goals under the Facebook designed strategy and values.

2.4. Centralization vs. decentralization

Facebook has a hybrid structure between centralization and decentralization.
Like many progressive organizations, Facebook largely supports decentralized
decision making. Job roles at Facebook are designed to be carried out with
responsibility, and employees often set their goals with mutual coordination
and understanding with the supervisors.

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However, Facebook is also centralized in making sure that supervisors oversee,
and approve of the various efforts, and tactics that employees choose to ensure
that they are aligned with the organizational strategy ad values.

2.5. Communication
Facebook has a developed and intricate system for ensuring communication
between employees, and different managerial levels. The communication
systems at Facebook enhance the overall organizational structure. The
systematic, defined, and organized communication allows an easy flow of
information and ensures that no organizational tasks and goals are
compromised because of a lack of communication, or misunderstandings.

3. Systems
3.1. Organizational systems in place
Facebook has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or
disputes. The systems at Facebook are largely departmental in nature, and
include, for example:

- Human resource management

- Finance
- Marketing
- Operations
- Sales
- Supply chain management
- Public Relation Management
- Strategic leadership
3.2. Defined controls for systems

57
Each of the defined and demarcated systems at Facebook has especially
designed tools and methods as controls for evaluating performance and goal
attainment. These controls and measures are designed specifically in different
departments based on the nature of their tasks and responsibilities. Moreover,
each department also designs specific controls for members for performance
evaluation, as well as for inter-departmental tasks and responsibilities.

3.3. Monitoring and evaluating controls

Facebook continually evaluates its systems through the designed controls. This
monitoring of the performance is continual and ongoing. This is largely done
through observation and informal discussions. Feedback to employees and
overall department heads is informally given regularly as and when is required.
Formal evaluation of performance is also conducted semiannually – or
quarterly, depending on the need and the urgency of the projects and assigned
tasks. This is a formal process that is undertaken by supervisors and managers
to ensure the identification of performance lags, and suggestive means of
improvement.

3.4. Internal processes for organizational alignment

Facebook also has special processes and methods for ensuring that all
departments and systems within the organization are aligned and working in
harmony towards the greater business goals and targets. This is made possible
through ensuring that all systems are designing and working towards goals and
targets specific to their expertise under the broader business vision and
strategy. Moreover, the strategic leadership at Facebook also ensures that all

58
systems are allocated with resources, and set specific targets to achieve similar
business goals in any specific period.

4. Shared values
4.1. Core values
The core values at Facebook are defined and communicated to foster a creative
and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment. The
core values at Facebook include, but are not limited to:

- Creativity
- Honesty
- Transparency
- Accountability
- Trust
- Quality
- Heritage
The Facebook business also ensures that all its activities and operations are
conducted with high ethical and moral standards that redefined and
benchmarked against international criteria.

4.2. Corporate culture

Facebook encourages an inclusive culture that celebrates diversity. The
company has an international presence, and production units that are spread
across different countries, as such, Facebook ensure that its organizational
culture is supportive of diversity, and has internal policies to reduce incidences
of discrimination.

59
The corporate culture at Facebook also encourages innovation and creativity by
allowing independence for growth to individuals and teams –thus helping them
refine their careers as well as personalities. Lastly, the corporate culture at
Facebook also has a supportive leadership which works towards increasing
employee motivation and job satisfaction by giving way to visibility and
accessibility.

4.3. Task alignment with values

Facebook ensures that all its job tasks and roles are aligned with the core values
that the company propagates. This means that all activities, tactics, and
strategic tactics employed by Facebook will reflect its core values, and will not
deviate away from these. This is to ensure a consistent, and reliable brand
image, as well as an honest organizational culture. In the event of organizational
change, the company will continue to ensure that all change management
processes and methods incorporate the core values so that the organizational
culture is consistently maintained, and systematically changed if need be.

5. Style
5.1. Management/leadership style
Facebook has a participative leadership style. Through a participative leadership
style, Facebook is able to engage and involve its employees in decision-making
processes and managerial decisions. This also allows the leadership to regularly
interact with the employees and different managerial groups to identify any
potential conflicts for resolution, as well as for feedback regarding strategic
tactics and operations. Through its participative leadership, Facebook is able to

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enhance employee motivation, and increase organizational commitment and
ownership amongst employees as well as other stakeholders.

5.2. Effectiveness of leadership style

The participative leadership style is highly effective in achieving the business
goals and vision of the organization. Employees feel to be active members of
the organization who are valued for their suggestions, feedback, and input.
Moreover, through participative leadership, leaders and managers are able to
identify current and potential conflicts within the Facebook organization, and
actively work to resolve them as soon as possible.

5.3. Cooperation vs competition – internally

With its supportive and encouraging organizational culture, Facebook gives way
to internal collaboration and cooperation between employees, systems, teams,
and departments. This cooperation and collaboration at Facebook is important
since its operations are spread globally, and also because tasks and
responsibilities within the company often require inter-departmental feedback
and input. Moreover, with increased expansion, and synergy, the business also
regularly forms project teams – which function effectively because of the
cooperative and collaborative culture within the Facebook organization.

5.4. Team vs groups

Facebook has effective and functional teams and works with them internally to
achieve its various business goals and objectives, and complete tasks. The
company’s management is encouraging and supportive, and the leadership
provides a motivating and pragmatic vision toad achieve. The human resource
management system, as well as the organizational training, supports all

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employees in their growth fairly and transparently. This leads to effective team
formation instead of nominal groups within the organization for various
projects, as well as department-specific tasks and roles.

6. Staff
6.1. Employee skill level vs business goals
Facebook has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally
as well as externally – depending on the urgency and the skill levels required.
Based on this, it is seen that Facebook has employees who are skilled as per the
requirements of their job roles and positions. All employees are given in house
training to familiarize themselves with the company and its values. External
training along with in-house training is provided for skill level enhancement.

All job roles and positions are designed to facilitate the achievement of business
goals, and as such, employee skill level at Facebook is sufficient to achieve the
business goals of the company.

6.2. Number of employees

Facebook has employed a large number of employees. The number of
employees varies from country to country as per the requirements and needs of
the business and operations. The global team of Facebook is an inclusive one
that accepts, and encourages diversity, and works in synchronization with
members to ensure attainment of business goals. The team member sand
employees are the most important part of business success for Facebook.

6.3. Gaps in required capabilities and capacities

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Facebook has a well-defined system for identifying potential needs of
capabilities and capacities for the organization. The human resource function of
the business has a systematic process that aligns all other departments to
identify potential vacancies or skill gaps. Based on the nature of the need, the
human resource department arranges for recruitments which may be
permanent or contractual in nature, as well as arranges training sessions, if
need be, for the current workforce.

7. Skills
7.1. Employee skills
Facebook has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. Facebook
prides itself on hiring the best professionals and grooming them further to
facilitate growth and development.

7.2. Employee skills vs task requirements

Facebook has defined tasks and job roles and hires and trains employees for skill
levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform
their respective jobs in accordance with the values and culture as well as the
business goals and strategy of Facebook.

7.3. Skill management

Facebook pays particular attention to enhancing the skills and capacities of its
employees. It arranges regular training and workshops – internally as well as
externally managed- to provide growth and development opportunities for its

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employees. Facebook focuses on personal as well as professional growth for its
employees and works accordingly with them.

7.4. Company’s competitive advantage

The human resource is one of the core competitive advantages of the company.
The skills of employees are developed specifically for job roles and
requirements at Facebook and provide a competitive benefit to the company –
where players cannot imitate employee skills or training. This creates a unique
and non-substitutable competency for Facebook.

64
VRIO Analysis
There are particular sources that provide the business with competitive advantage and it
can be evaluated through the VRIO framework. VRIO focuses mainly on four significant
qualities such as: value, rareness, imitability and non-substitutable. VRIN is an effective tool
used to analyze Dominos in this section:

VRIO Analysis
Capability Competitive
Value Rarity Inimitable Organization
Resources Advantages
Distinctive
R&D √ √ √ √ Competitive
Advantage
Distinctive
Brand Awareness √ √ √ √ Competitive
Advantage
Competitive
Financial Strength √ √ Parity
Distinctive
Technology
Evaluation
√ √ √ √ Competitive
Advantage
Competitive
HR Dept √ √ Parity
Temporary
High Global Brand √ √ √ √ Competitive
Advantage

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High Global Brand:

The global accessibility of Facebook is a major source of competitive advantage.

Marketers are flocking to the platform to sell and promote their goods and
services.
They can use Facebook to market their products to a worldwide audience and
target buyers in any region of the world. In recent years, global popularity and
viewership from new countries have expanded.

R&D

Facebook's research and development is a Competitive Advantage major

promoter of demand, sales, and popularity. Facebook is the industry's largest
spender on research and development. Aside from its online marketplace,
Facebook devotes significant resources to r and d. This concentration has
enabled Facebook company acquire strong capabilities through stronger
algorithms that give product suggestions and make it easier for users to transact
in its online marketplace.

Brand Awareness

The firm has Competitive Advantage continued to invest in user experience in

order to achieve quicker growth and extend its global user base. Increased
brand recognition has also led in increased global sales and a faster rise in
advertising income.
Facebook must invest in CSR and sustainability to maintain a stronger social
image than its competitors. The firm also invests in marketing and sales to

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expand its user base, improve engagement, and attain higher popularity as well
as a stronger reputation.

Financial Strength

Facebook's Strength financial position is also a crucial source of Temporary

advantage for the brand, allowing it to spend more on R&D, marketing, and
sales. The firm priorities research and development in order to continuously
enhance its numerous produce them more interesting. Facebook's revenue
surpassed $70 billion, with ads accounting for More than 97% of It is total
revenue. Facebook is Google's main competitor in this space, and smartphone
platforms already account for a large segment of its digital advertising revenue.
Technology Evaluation

Facebook's income has recently increased significantly, which may be traced in

part to increased user engagement as a result of upgrades to different services
and features. The business of internet competitive Advantage like Facebook is
largely dependent on research and development, and continuous investment is
required to increase the degree of user engagement so it is important to focus
on the technology to meet what customer need. A slew of face Book
competitors have arisen from unexpected corners.
HR Dept

The corporation is well-known for its exceptional emphasis on human resource

management and organizational culture.
Aside from competitive salaries, the corporation employs a variety of non-
financial techniques aimed at increasing employee engagement, increasing

67
retention rates, and attracting exceptional individuals. Facebook’s innovative HR
management has resulted in increased staff happiness and employee
engagement, both of which are excellent for generating improved performance
and higher productivity among employees.

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Matching Phase
The Internal-External (IE) Matrix
The Internal-External (IE) Matrix is a technique for analyzing the internal and
external business environments of a corporation. It identifies strategic options
for a corporation (i.e., growth, stability, or retrenchment). The Internal-External
(IE) Matrix is a technique for analyzing the internal and external business
environments of a corporation. Facebook (Meta) has the ability to create new
goods and services to fulfill the demands of its current customers. It also has the
option to sell or spin off non-performing business divisions or products.

There are three main areas of the (IE) Matrix, each of which has a particular
strategic impact. First (Grow and Build), the divisions that occur in cells I, II, or IV

69
with strategies adopted (Intensive Market Penetration, Market Development,
and Product Development) and/or Integrative (Backward Integration, Forward
Integration, and Horizontal Integration). Second (Hold and Maintain), the
divisions that lie into cells III, V, or VII with strategies adopted (Product
Development and Market Penetration). Third (Harvest or Divest), the divisions
that fill with cells VI, VIII, or IX with strategies adopted (Retrenchment and
Divestiture).

Comment:
The IFE Total weighted score is plotted on X – Axis (3.06) and the EFE Total
weighted score is plotted on Y–Axis (3.32), the point of their intersection grid
lies in the first area (Grow and Build) with division cell (I) which implicates to
adopt Growth Intensive strategies (Intensive Market Penetration, Market
Development, and Product Development).

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SFAS Analysis
Weighted
Opportunities Weights Ratings
Score
Increasing the advertising revenue by enhancing mobile based advertising and
0.04 4 0.16
marketing

Increasing preference and need for higher quality services 0.04 4 0.16

Increasing in the global technological advancement, innovation, and

0.07 4 0.28
technological knowledge among people.
Economic stability increases and rapid economic growth and disposable
0.05 3 0.15
incomes increase in developing countries

Improving patent and product protection laws worldwide 0.05 4 0.2

Weighted
Threats Weights Ratings
Score

Strong Competition 0.06 3 0.18

Privacy Violation and Cybercrime 0.07 4 0.28
Imitation of the company’s platforms and business model 0.05 3 0.15
Image and reputation crisis 0.06 2 0.12
Increasingly saturated market may lead to the plateau of market growth 0.04 2 0.08
Weighted
Strengths Weight Rating
Score
Massive database which provides value to the advertising business 0.06 4 0.24
Focus on R&D and technological innovation 0.07 4 0.28
High revenues, fast revenue growth and high profit margin 0.06 4 0.24
Expanded Advertising Portfolio. 0.05 3 0.15
Excellent user experience and understanding 0.05 3 0.15
Weighted
Weaknesses Weight Rating
Score
Weak protection of user’s data 0.06 1 0.06
Low business diversification 0.06 1 0.06
Impacted brand image due to the attitude and practices towards users’ privacy 0.06 2 0.12
1 3.06

Comment: The SFAS showing a high score which reflects the Robust condition of
the whole analysis of business.

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BCG Growth
The BCG Matrix, also known as the Growth Share Matrix, was created almost
five decades ago by Bruce Henderson, founder of Boston Consulting Group. At
the height of its success, the BCG Matrix was used by more than half of all
Fortune 500 companies. Today, it is central in business strategic planning, and
business school teachings.

“Nearly 50 years after its inception, the BCG Matrix remains a valuable tool for
helping companies understand their potential.” —Reeves Martin, Senior Partner
and MD of the Boston Consulting Group

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The matrix reveals two factors that companies should consider when deciding
where to invest —company competitiveness, and market attractiveness —with
relative market share and growth rate as the underlying drivers of these factors.
These two dimensions make up the axes of the matrix.
Understanding the tool
The relative market share indicates incremental cash generation. Typically, units
with a higher relative market share churns out higher profits and return on
investments due to higher economies of scale.
Meanwhile, Relative Market Growth indicates cash usage. A greater relative
market growth rate means higher earnings (and sometimes profits) but it also
consumes lots of cash, which can be used as investment to stimulate further
growth.

Invest in the ‘Stars’

The business units that make up a sizeable portion of the market and generate
the most cash are considered ‘Stars’. Stars tend to consume large amounts of
cash, as they require high funding to fight competitors and maintain their
growth rate. This generally results in the same amount of money coming in that
is going out. If a Star can remain a market leader, it eventually becomes a Cash
Cow when market growth slows, providing positive cash flows.


• Star for Meta Platform with High Growth and High Market share was
Facebook, Instagram they are currently highest growing owned by high market
share with high investment to maintain leadership statutes.
• Our Market Segmentations analysis consider Facebook as Red Ocean with full
of competitors who will always acquire apps, also acquired to be leader.
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Potential Strategies
Vertical integration, horizontal integration, market penetration, market
development, product development
Facebook’s Star —Instagram
Besides its high market share, Instagram is also currently the highest growing
SBU owned by Facebook, and has doubled its user base to 700 million monthly
active users in two years. This is largely due to Instagram’s features ‘Direct’ and
‘Stories’. By sticking to its roots of visual communication while shrewdly
adapting to new trends by investing in product development, Instagram has
managed to stay on top of the game.
Question Mark —Oculus

Question Marks hold low market share in fast growing markets, consuming large
amounts of cash, and incurring losses. As the name suggests, it’s not known if
they will become a Star or drop into the Dog quadrant. Question Marks have the
potential to gain market share and become Stars, and eventually Cash Cows
when market growth slows. On the flip side, even after large amounts of
investments, question marks may still not succeed in becoming a market leader,
thus eventually turning into Dogs.
Therefore, the units in the Question Mark quadrant require very close
consideration to decide if they are worth investing in or not. Companies are
advised to invest in Question Marks if the product has the potential for growth,
or to sell if it does not.
Potential Strategies
Market penetration, market development, product development, divestiture

74
Oculus specializes in virtual reality (VR) hardware and software products. Large
investments are required in research & development efforts, yet there is no
certainty that Oculus will be successful and if people have a desire for VR.
NYTimes reports Zuckerberg’s plans to invest $3 billion over the next decade to
bring VR to millions of users, signaling Facebook’s intentions to turn Oculus into
a Star.

• Question Mark was oculus, Extend Reality (Metaverse) it is a recently

developed company and it is a very future expansion product through focusing
on the market and investing heavily in the new service
Liquidate, divest or reposition ‘Dogs’
Dogs are units with low market share in a mature, slow-growing industry. These
units typically “break even”, generating barely enough cash to maintain the
business’s market share, and depress a profitable company’s return on assets
ratio. Because of this, Dogs can turn out to be cash traps, tying up company
funds for long periods of time. For this reason, they are prime candidates for
divestiture.

Dogs should be divested once short-time harvesting has been maximized. The
usual marketing advice here is to aim to remove any Dogs from the company’s
product portfolio as they are a drain on resources, due to lower negative cash
returns. Unless a Dog has some other strategic aim, it should be liquidated if
there are fewer prospects for it to gain market share.

Potential Strategies
Retrenchment, divestiture, liquidation

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Facebook’s Dog —Messenger

Since almost everyone uses WhatsApp, an additional app like Messenger seems
unnecessary. Facebook can consider divesting Messenger due to its low growth
rate, and low market share, making it a dog.

• Dog was Messenger according to Growth Rate is low and market share low so
the company need to identify profitability and focus to maximize cash flow and
minimize expenditure for it.
Facebook’s Cash Cow —WhatsApp
WhatsApp’s growth rate has been more or less maximized, with few
competitors. Investments in WhatsApp is hence deemed unnecessary. Their
market share however, is very high, making WhatsApp a money generating Cash
Cow.

• Cash cow was WhatsApp currently has a high market share with low growth
market so the company needs to maintain sales and market position and sustain
our market segment.

76
Meta’s organizational structure

Meat uses a matrix org structure. Which is characterized by its ability to

facilitate a creative, innovative environment and provide the ability for
organizational expansion and diversity.
Meta’s organizational structure consists of three divisions:
1. Corporate Function-Based Teams
2. Geographic Divisions
3. Product-Based Divisions
1- Corporate function-based divisions/teams
Meta has many divisions and teams specialized in main critical functions
through the organization based on the business need.
The matrix structure of Meta makes the function teams to crossover with the
product and geographic teams. So, for example, the finance team will work with
the product divisions and their own finance managers.
Here are Meta’s function-based teams:
 C-level executives
 Finance
 Operations
 Information
 Technology
 Accounting
 Privacy
 Security
 Marketing
 Legal
 Business & Marketing
 Global Public Policy
 Investor Relations

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  Product Management
 Human Resources

2- Geographic divisions
Another major element of Meta’s organizational structure are the geographic
divisions. It’s divided into four divisions to consider the different social media
attitudes and cultures. Which enable it to address the behavioral differences in
its vast and diverse users. Also, it decentralizes some functions to be performed
regionally rather than globally such as human recourses and accounting.
Four geographic divisions are included in Meta’s organizational structure:
 North America
 Latin America
 Europe, Middle East & Africa
 Asia & South Pacific
The geographic divisions are managed by a regional management team
reporting to the corporate operations and executive teams.
3- Product divisions
Despite that Meta’s operations are focused on social networking service in its
core, however the company incorporates product divisions into its
organizational structure.
Meta has three product divisions:
 Family of social platforms and Apps (Instagram, WhatsApp, Messenger,
etc.)
 New Platforms and Infrastructure (AI, virtual/augmented reality,
blockchain)
 Central Product Services (ads, security, growth)

78
 Decision Phase
QSPM
QUANTITATIVE STRATEGIC PLANNING MATRIX
QSPM is a high-level strategic m entitative Strategic Planning Matrix or a QSPM
provides an analytical method for comp ring feasible alternative actions. The
QSPM method falls within so called stage 3 of the strategy formulation
analytical framework.

When company executives think about what to do, and which way to go, they
usually have a prioritized list of strategies. If they like one strategy over another
one, they move it up on the list. This process is very intuitive and subjective. The
QSPM method introduces some numbers into this approach making it a little
more “expert “
Product/Service

Diversifications
Development

Penetration

Innovation
Related
Market
Weight

Key Factors

AS TAS AS TAS AS TAS AS TAS

Strengths
Large active users base 0.1 4 0.4 2 0.2 3 0.3 4 0.4
Massive database which provides value to the
0.1 3 0.3 3 0.3 4 0.4 4 0.4
advertising business
Powerful advertising and Marketing Approach 0.1 3 0.2 3 0.2 3 0.2 4 0.2
Strong market position 0.1 2 0.2 4 0.4 3 0.3 4 0.4
Focus on R&D and technological innovation 0.1 3 0.3 2 0.2 3 0.3 4 0.4
High revenues, fast revenue growth and high
0.1 2 0.2 3 0.3 4 0.4 3 0.3
profit margin
Imaginative Leadership 0 1 0 2 0.1 3 0.1 3 0.1
Innovative workforce and workplace culture 0 3 0.1 2 0.1 2 0.1 4 0.1
Expanded Advertising Portfolio 0 3 0.1 4 0.1 1 0 2 0
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Excellent user experience and understanding 0.1 4 0.3 3 0.2 3 0.2 3 0.2
Weakness
Weak protection of user’s data 0.1 3 0.3 1 0.1 1 0.1 1 0.1
Low business diversification 0.1 1 0.1 1 0.1 4 0.4 3 0.3
Impacted brand image due to the attitude and
0.1 3 0.2 1 0.1 3 0.2 4 0.3
practices towards users’ privacy
Opportunities
Increasing the advertising revenue by
enhancing mobile based advertising and 0.1 4 0.4 3 0.3 1 0.1 1 0.1
marketing
Expansion to China by negotiating with the new
0.1 2 0.1 1 0.1 1 0.1 1 0.1
elected government
Governmental support for globalization 0 2 0.1 2 0.1 1 0 2 0.1
Economic stability increases and rapid
economic growth and disposable incomes 0.1 2 0.2 3 0.2 2 0.2 3 0.2
increase in developing countries
Increasing preference and need for higher
0.1 3 0.3 1 0.1 2 0.2 3 0.3
quality services
Improving patent and product protection laws
0.1 1 0.1 1 0.1 2 0.2 1 0.1
worldwide
Increasing in the global technological
advancement, innovation, and technological 0.1 3 0.3 1 0.1 2 0.2 4 0.4
knowledge among people.
Threats
Privacy Violation and Cybercrime 0.1 3 0.2 1 0.1 1 0.1 1 0.1
Strong Competition 0.1 2 0.1 2 0.1 2 0.1 4 0.3
Imitation of the company’s platforms and
business model 0.1 2 0.1 2 0.1 3 0.2 4 0.2
platforms and business model
Increasingly saturated market may lead to the
0.1 2 0.1 2 0.1 4 0.2 4 0.2
plateau of market growth
Slow growth rate of social media advertising 0 1 0 2 0 4 0.1 2 0
Increasing internet regulation and online data 0 1 0 1 0 2 0.1 1 0
Bans in conservative countries such as China
0 1 0 1 0 1 0 1 0
and North Korea and Iran
Increasing digital taxes and tolls 0 1 0 1 0 3 0.1 1 0
Image and reputation crisis 0.1 2 0.1 1 0.1 2 0.1 4 0.2
Total Attractiveness Score 5.0 3.9 4.9 5.8

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Based on total attractiveness score:
Innovation strategy has the highest score 5.8
followed by Product/service Development with score 5,
Related Diversification with score 4.9,
then Market Penetration with score 3.9.
Our mix strategic will consist of the two strategies with the highest attractiveness
score which is Innovation strategy with score 5.8 as a priority followed by
Product/service Development with score 5
innovation strategy is an intensive strategy to grow market share or profits
through product and service innovation. And for the company to implement this
strategy, it must focus heavily on research and development.
Providing new innovations of product/service the company will take advantage of
being the first mover and place the company within the current innovation trends
of the industry using its R&D capabilities and competencies. And also, will help in
removing the obstacles that the bad brand image is putting in the way of
exploiting the opportunity of technological advancement, the increasing
preference for higher quality, improving patent laws and financial capabilities in
developing countries.
Our second strategy is Product Development Strategy which is an intensive
strategy refers to the methods and actions used to bring new products to a
market or modify existing products to create new value. And the company should
focus on market research and careful product concept planning. By using the R&D
and financial capabilities to add new features to the platforms to satisfy the
increasing need for higher quality services and to upgrade the application to
increase the mobile-based advertising revenues. And, by enhancing the protection

81
and security features of the platforms will help in enhancing the brand image and
these two factors are negatively affecting the ability of the company to exploit any
of the available opportunities. And, to upgrade the security measures of the
platforms against cyberattacks which will protect the company from future
reputation damage.
Based on total attractiveness score: Innovation strategy has the highest score 5.8
followed by Product/service Development 5, Related Diversification 4.9, then
Market Penetration 3.9.
Our strategic mix will consist of the two strategies with the highest attractiveness
score which is Innovation strategy 5.8 as a priority followed by Product/service
Development 5.
Innovation Strategy is an intensive strategy to grow market share or profits
through product and service innovation. And for the company to implement this
strategy, it must focus heavily on research and development.
Providing new innovations of product/service the company will take advantage of
being the first mover and place the company within the current innovation trends
of the industry using its R&D capabilities and competencies. And also, will help in
removing the obstacles that the bad brand image is putting in the way of
exploiting the opportunity of technological advancement, the increasing
preference for higher quality, improving patent laws and financial capabilities in
developing countries.
Our second strategy is Product Development Strategy which is an intensive
strategy refers to the methods and actions used to bring new products to a
market or modify existing products to create new value. And the company should
focus on market research and careful product concept planning. By using the R&D

82
and financial capabilities to add new features to the platforms to satisfy the
increasing need for higher quality services and to upgrade the application to
increase the mobile-based advertising revenues. And, by enhancing the protection
and security features of the platforms will help in enhancing the brand image and
these two factors are negatively affecting the ability of the company to exploit any
of the available opportunities. And, to upgrade the security measures of the
platforms against cyberattacks which will protect the company from future
reputation damage.

83
SPACE Matrix:
The Strategic Position and Action Evaluation (SPACE) Matrix, another important
Stage 2 matching tools. Its four-quadrant framework indicates whether
aggressive, conservative, defensive, or competitive strategies are most
appropriate for a given organization. The axes of SPACE matrix represent two
internal dimensions: financial position (FP) and competitive position (CP) and
two external dimensions: stability position (SP) and industry position (IP).
SPACE Matrix Axes:
Internal Strategic Position:
Financial Position [FP] – return on investment, leverage, liquidity, working
capital, cashflow, inventory turnover, earnings per share, price earnings ratio
Competitive Position [CP] – market share, product quality, product life cycle,
customer loyalty, capacity utilization, technological know-
how, control over suppliers and distributors
External Strategic Position:
Stability Position [SP] – tech changes, rate of inflation, demand variability, price
range of competing products, barriers to entry into market, competitive
pressure, ease of exit from market, price elasticity of demand, risk involved
in business
Industry Position [IP] – growth potential, profit potential, financial stability,
extentleveraged, resource utilization, ease of entry into market, productivity,
capacity utilization. The steps required to develop a SPACE Matrix are as
follows:
1.Select a set of variables to define financial position (FP), competitive position
(CP), stability position (SP), and industry position (IP).
2. Assign a numerical value ranging from +1 (worst) to +6 (best) to each of the
variables that makeup the FP and IP dimensions. Assign a numerical value
ranging from -1 (best) to -6 (worst) teach of the variables that make up the SP
and CP dimensions. On the FP and CP axes, make comparison to competitors.
On the IP and SP axes, make comparison to other industries.
84
3. Compute an average score for FP, CP, IP, and SP by summing the values given
to the variables of each dimension and then by dividing by the number of
variables included in the respective dimension.
4.Plot the average scores for FP, IP, SP, and CP on the appropriate axis in the
SPACE Matrix.
5.Add the two scores on the x-axis and plot the resultant point on X. Add the
two scores on the y-axis and plot the resultant point on Y. Plot the intersection
of the new xy point.
6.Draw a directional vector from the origin of the SPACE Matrix through the
new intersection point. This vector reveals the type of strategies
recommended for the organization: aggressive, competitive, defensive,
or conservative

85
 Implementation
To guarantee a higher possibility of organization’s success and to make sure that
our strategic mix is properly implemented, each strategy should be translated
and deescalated to firstly strategic objective, tactical objective, then operational
objectives and should be clearly communicated among involved stakeholders.

The implementation stage starts with setting a SMART objective and should be
represented in the normal hierarchy of objectives. Our objectives will be divided
into three levels as mentioned before which are strategical objectives, tactical
objectives (annual) and operational objectives. Identifying SMART objectives to
ensure that the objectives are doable and not exceeding the organization’s
capabilities.

1- Innovation Strategy

Our first strategy in our strategical mix is innovation strategy where we use
product and service innovation to grow market share or profits:

Strategic objective: Creating 30% increase in the company’s net profit from new
innovative products/services by 2024.

Tactical (annual) objective: Creating 10% increase in the company’s net profit
from new innovative products/services per year.

2- Implementation Matrix for Innovation Strategy

Strategy 1: Innovation Strategy

Strategic Objective: Creating 30% increase in the company’s net profit from new
innovative products/services by 2024.
Tactical (annual) objective: Creating 10% increase in the company’s net profit from
new innovative products/services per year.
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Department Objective Policies/ Actions
• Setting the right • Conduct high level
workplace environment to meetings annually to discuss
Inspire, cultivate and and emphasize on the
encourage the employers to importance of the creative
think in a creative and environment in achieving the
C-level
innovative way. objective
executives • Increase the resources • Increase the financial
assigned for (information, allocation of the Information
technology (R&D) and Technology (R&D)
departments. departments by 30 % of their
current budget.
• Develop three new • Foster creativity in all idea
(innovative) products to creating processes
satisfy unmet customer’s • Conduct monthly
needs. brainstorming sessions to
share and suggest new
product ideas
• Keep an open
communication channel with
Operations both Marketing and
Technology (R&D)
department and sharing the
monthly report with all
relevant departments.
• Ensuring delivery in time
and following the planned
timelines
• Increase the budget of • Reduce the stakeholders’
Information and dividends and giveaways to
Technology (R&D) reassign it for R&D
departments by 30% • Update a budget proposal
and financial plan for the
Technology (R&D)
department
Finance • Develop the financial
policies and regulations to
ensure budgetary
modification are applied and
tracked.
• Measure and track the
current budget effectiveness
to spot any gap in need for
modification.
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KPIs
• Number of
breakthrough product
ideas has been created
by Technology (R&D)
department?
• How many high-level
meetings out of the
planned three have been
conducted?
• The percentage of
R&D budget increase.
• How many suggested
new ideas for new
products?
• How many
brainstorming sessions
conducted?
• How many
product/services
innovations have been
produced?
• Deliver all the services
in time.
• Customer satisfaction
of the service/ product.
• Percentage of increase
in Information and
Technology (R&D)
departments’ budget.
 • Study and analyze the • Perform two market
customers unmet needs. survey campaigns to
and what segments of constantly follow up the
customers exist with customer needs and find any
different unmet needs. unmet needs and customer
• Accomplish 50% sales preferences
revenues of the total • Conduct five marketing
company’s revenue from campaigns to promote for
the innovative products. the new products and
Business & • Rebrand Meta as an enhance the company’s
Marketing integrated social market position, two of them
networking company will use celebrities.
• Developing short attractive
videos to formalize the users
of the new products and
their advantages
• Performance tracking of
the ongoing campaigns to
ensure that any correction
action is taken properly.
• Reassess the • Providing constant
organizational design of trainings and coaching to
Technology (R&D) employees to raise their
department. awareness and ability to
• Recruit new employees perform the assigned jobs,
and calipers in the R&D three programs for
department operational and R&D
• Asses the employees’ departments
need for training on areas • To support at least 6
of creative thinking and members of R&D
idea creation and provide department to acquire their
training as needed. next degree MSc or PhD
• Attract and calipers to • Conduct four meeting to
Human join different department assess and propose
Resources to assist in innovative modifications in the
strategy implementation Technology department to
• Encourage and reward for adapt with the new strategy
creativity and new • Modify the current
accomplishments organizational chart to
accommodate proposed
changes in R&D department
• Design and plan the chain
of command and span of
command for Technology
R&D department.
• Design a set of reward
programs to encourage
employees to meet their
88
• Effectiveness of market
research to identify
customer segments and
needs
• How many markets
survey campaigns has
been performed?
• How many marketing
campaigns to promote
for the new products?
• The percentage of the
sales revenue caused by
the new products.
• Effectiveness of
developing a good brand
image and reputation
• Customers’ loyalty
• Market position
• How appropriate the
reward system in
motivating employees?
• Recruiting, training,
and promoting process
effectiveness.
• Absenteeism and
turnover rate.
• Active participation by
managers and technical
personnel in professional
organizations
• Employee motivation
and job satisfaction
• Number of training
programs
• Number of employees
supported to acquire the
next degree
 • Increase the effectiveness • Conduct regular • Number and quality of
of information collecting performance tracing meeting the reports to the
and analyzing to provide to discuss current operations and
Information the customer with a precise performance and ways to Technology departments
and more effective add enhance it
targeting mechanism • Buy the latest data analysis
tools in the market
• Develop and create new • Ensure a robust and • Number of research
breakthrough ideas and effective communication and development
products to contribute by with the marketing and activities leads to
10% of the total company’s operations teams product and process
portfolio • Conduct regular innovations
• Develop and improve the brainstorming meeting to • Communication and
current services and suggest new ideas to work on
relationships quality
Technology
products • Develop and support a between R&D personnel
(R&D) creative workplace and and other departments
healthy culture that • Quality of laboratories
encourage cooperation and and other facilities
creativity and innovation • How experienced and
• Implement the latest qualified is the R&D
scientific research techniques
laboratory technicians
and scientists
• Assure on following the • Conduct regular meeting to • Number of complains
privacy policies and discuss the reported issues about privacy or security
procedures agreed on with and propose ways to fix them issues
both users and clients • Review the existing polices • Number of
Privacy & • Develop and update more and security measures for cyberattacks
Security secured and strict measures any possible breaches • Number of fixed issues.
and procedures to protect
users from cybercrime and
attacks

• Ensure that any • Familiarize team members • number of legal issues

innovative product/ service
does not violate any
Legal existing roles
• Design and review all
contractual relation with
company’s stockholders
• Ensure compatibility and
adoption of the company’s
polices to the global trends
Global Public
Policy
with updates and news
regarding any laws by
conducting regular meetings
• Conduct a monthly review
meeting to review the
ongoing contractual relations
• Conducting regular
meetings to review the
global policies change and
dynamics
• Work on any contradictory
between company’s and any
global regulation to facilitate
the company’s operations
there
in the new contracts
• number of found issues
in old contracts and how
many got fixed
• Number of global
policy violation that
company has done
• Relations with global
business communities
and governments.
• Number of
cyberattacks

89
 • Strengthen the investor
relationships and solve any
obstacle that might show
Investor up
• Work on increasing the
Relations investor’s contribution by
discussing the new strategy
and potential revenues
• Keep an open
communication channel with
investors
• Categorize investors into
groups based on their
contribution to pay an
appropriate attention to
each group
• Good, long-term
relationships with
investors
• New investments from
current investors

Product/service Development Strategy

Our second strategy in our strategical mix is Product/survive Development
strategy which is an intensive strategy refers to the methods and actions used to
bring new products to a market or modify existing products to create new value.
And the company should focus on market research and careful product concept
planning.

Strategic objective: 21% increase of the company’s market share by developing

and modifying the current products/services by 2024.

Tactical (annual) objective: 7% annual increase of the company’s market share by

developing and modifying the current products/services.

90
Implementation Matrix for Product/service Development
Strategy

Strategy 2: Product Development Strategy

Strategic Objective: 21% increase of the company’s market share by developing
and modifying the current products/services by 2024.
Tactical (annual) objective: 7% increase of the company’s market share by
developing and modifying the current products/services by 2024.
Department Objective Policies/ Actions KPIs
• Increase the resources • Increase the financial allocation of • The percentage of
assigned for market the Marketing department by 25% Marketing budget
researching of their current budget. increase.
• Increase the resources • Increase the financial allocation of • The percentage of
assigned for technology the Technology (R&D) department R&D budget increase.
(R&D) departments. by 10 % of their current budget. • Number of
C-level • Setting the right • Conduct high level meetings product/service new
executives workplace environment annually to discuss and emphasize editions or updates
to Inspire, cultivate and on the importance of the creative
encourage the environment in achieving the
employers to think in a objective
creative and innovative
way.
• Develop update and • Update and improve three • How many new
modify the current products/services annually features updates added?
products/services to • Foster creativity in all idea • How many
meet the rising customer creating processes brainstorming sessions
expectations and fix any • Conduct monthly brainstorming conducted?
reported issue. sessions to share and suggest new • How many design
ideas to modify and improve the issues have been fixed?
products/services • Deliver all the services
Operations • Keep an open communication in time.
channel with both Marketing and • Customer satisfaction
Technology (R&D) department and of the service/ product.
sharing the monthly report with all • Quality of finished
relevant departments. product/service
• Ensuring delivery in time and
following the planned timelines

91
 • Increase the budget of • Reduce the stakeholders’ • The percentage of
the marketing dividends and giveaways to reassign Marketing budget
department by 35% it for R&D increase.
• Increase the financial • Update a budget proposal and • Percentage of increase
Finance allocation of the financial plan for the Marketing and of Technology (R&D)
Technology (R&D) Technology (R&D) department departments’ budget.
department by 10 % of
their current budget.
• Research the market to • Perform three market research • The percentage
decides which products projects to decided which increase of the market
and services need to be product/service need to be share.
modified developed • Number of market
• Market and promote • Conduct three marketing research projects
for the updated campaigns to promote for the new performed
products/services to products/ services updates to • Number of markets
increase the market increase the company’s reach by survey campaigns has
share by 7%. 15% of the market and enhance the been performed
• Study and analyze the company’s market position will use • Number of marketing
customers unmet needs. celebrities in the promotion campaigns to promote
and what segments of campaigns. for the new features.
customers exist with • Perform two market survey • Customers’ loyalty
Business & different unmet needs. campaigns to constantly follow up • Market position
Marketing the customer feedback and find any • Effectiveness of
unmet needs and customer enhancing a good brand
preferences image and reputation
• Developing short attractive videos • Effectiveness of
to formalize the users of the new market research to
updates and added features and identify customer needs
their advantages.
• Performance tracking of the
ongoing campaigns to ensure that
any correction action is taken
properly.

92
 • Recruit new employees • Recruit 5 new calipers to join • Number of training
and calipers for the marketing team programs
Marketing and • Conduct 2 training programs for the • Number of new
(Technology) R&D marketing department recruited employees
• Conduct four meeting to assess and
departments • How appropriate the
propose modifications in the Marketing
• Train the Marketing reward system in
and Technology (R&D) departments to
team for latest adapt with the new strategy motivating employees?
marketing research tools • Modify the current organizational • Recruiting, training,
and techniques chart to accommodate the proposed and promoting process
• Reassess the changes in Marketing and Technology effectiveness.
Human organizational design of (R&D) departments • Absenteeism and
the Marketing and • Design a set of reward programs to turnover rate.
Resources Technology (R&D) encourage employees to meet their • Employee motivation
departments. targets and job satisfaction
• Attract and calipers to • Asses the employees’ need for
training on areas of creative thinking
join different
and idea creation and provide training
department to assist in
as needed.
innovative strategy
implementation
• Encourage and reward
for creativity and new
accomplishments

• Increase the • Conduct regular performance • Number and quality of

effectiveness of tracing meeting to discuss current the reports to the
information collecting performance and ways to enhance it operations and
and analyzing to provide • Buy the latest data analysis tools Technology departments
Information the customer with a in the market
precise and more
effective add targeting
mechanism

• Update and modify the • Study and analyze the current • Number of research
current product/services and modify and and development
products/services to fix upgrade them activities leads to
any reported problems • Conduct regular brainstorming product and process
• Update and add new meeting to suggest new ideas to modifications or feature
features to the existing work on release
products/services to • Ensure a robust and effective • Communication and
Technology keep the user engaged communication with the marketing relationships quality
• Develop and improve and operations teams between R&D personnel
(R&D) the current services and • Develop and support a creative and other departments
products workplace and healthy culture that • Quality of laboratories
encourage cooperation and and other facilities
creativity and innovation • How experienced and
• Implement the latest scientific qualified is the R&D
research techniques laboratory technicians
and scientists

93
 • Develop and update • Upgrade the security of the • Number of complains
more secured and strict current products/services about privacy or security
measures and • Conduct regular meeting to issues
procedures to protect discuss the reported issues and • Number of fixed
users from cybercrime propose ways to fix them issues.
Privacy & and attacks • Review the existing polices and • Number of
Security • Ensuring on following security measures for any possible cyberattacks
the privacy policies and breaches
procedures agreed on
with both users and
clients
• Ensure that any update • Familiarize team members with • number of legal issues
of product/ service does updates and news regarding any in the new contracts
not violate any existing laws by conducting regular meetings • number of found
roles • Conduct a monthly review issues in old contracts
• Design and review all meeting to review the ongoing and how many got fixed
Legal contractual relation with contractual relations
company’s stockholders

• Ensure compatibility • Conducting regular meetings to • Number of global

and adoption of the review the global policies change
company’s polices to the and dynamics
Global global trends • Work on any contradictory
Public Policy between company’s and any global
regulation to facilitate the
company’s operations there
policy violation that
company has done
• Relations with global
business communities
and governments.

• Strengthen the • Keep an open communication • Good, long-term

investor relationships channel with investors relationships with
and solve any obstacle • Categorize investors into groups investors
that might show up based on their contribution to pay • New investments from
• Work on increasing an appropriate attention to each current investors
Investor the investor’s group
Relations contribution by
discussing the new
strategy and potential
revenues

94
Evaluation and control
Evaluation and control are very critical processes to be performed. To guarantee
that our suggested strategic mix is implemented properly, we should control
and evaluate the implementation process.
And to strategically control the implementation processes we should keep
tracking and comparing or actual performance with the planned objectives to
spot and detected any deviations then assess if it is within the allowed deviation
limit or not. After that, any deviations outside the allowable limit should be
investigated to know the root causes for such deviations and suggest correction
actions to prevent repeating it in the future. While in the evaluation process we
compare our performance with the industry standards, but in our case, we are
the market leader so we will compare our performance with the targets we set.
To control and evaluate the performance, we should keep an eye on the KPIs
mentioned beside each operational objective and compare the actual
performance to the planned objectives in terms of the prementioned KPIs. We
also suggest using the following balance score cards to evaluate the
organization’s performance:

95
1- Balanced Score Card for Innovation Strategy
Objectives
Strategic

Target
Time Time

KPI
Objectives Target KPI

1 2 3 1 2 3

Profit Growth Actual

Creating 30% increase in the company’ s net profit from new innovative products/services by 2024.

Financial
from new Profit /
30% 10% 10% 10%
innovative Target
product/services Profit

To be the go-to Increase the rate Percentage

place for most of launching increase of
Customer

technologically new new

advanced product/services product 15% 15% 15%
Creating 30% increase in the company’ s net profit

product/service projects by 45% launching

To be able to Develop three Number of

Actual profit / Target profit

develop new new new

breakthrough (innovative) products
Process

innovative products to
products satisfy unmet 1 1 1
10%

10%

10%

constantly customer’s
needs.

Increase
operational Number of
and R&D staff 9 programs training 3 3 3
Training program
Learning& Growth

Programs

To have
To support at
extremely Number of
least 6 members
knowledgeable employees
of R&D
and skilled supported
department to 2 2 2
employees and to acquire
acquire their
scientists in the next
next degree
research and degree.
MSc or PhD.
development

96
2- Balanced Score Card Product/service Development Strategy
Objectives
Strategic

Target
Time Time
KPI
Objectives Target KPI
1 2 3 1 2 3

Actual
21% increase of the company’ s market share by developing and modifying the current

Market share
market
increase by 21%
share /
Financial by modifying the 21% 7% 7% 7%
Target
current
market
products/services
share
21% increase of the company’ s market share

Actual market share / Target market share

Satisfy Increase
customers’ the rate of
products/services by 2024.

increasing desire developing %

Customer 10% 10% 10%
for better new Increase
quality features by
7% 7% 7% product/services 30%

Superior Product number

Functionality New
of new
Process and continuous features 3 3 3
features
product/services offered 9
development offered

Increase Number
Learning
Marketing staff 6 of
& 2 2 2
Training programs training
Growth
Programs program

97
Executive summary
This study started by stating and criticizing the old vision and mission of Meta
then suggesting new vision, mission. Then the external macro environment
analysis was performed using PESTEL tool to state the opportunities and threats
regarding each of the following categories: Political, Economic, Societal,
Technological, Environmental and Legal. Then EFAS tool was used to give the
pre stated opportunity and threats rate and weight to give them a relative
importance. Then the external micro environment was analyzed using Porter’s
five forces model. And finally, the internal environment was analyzed by stating
the strengths and weaknesses of Meta and using IFAS tool to give weights and
rating to prioritize and recognize the most important or key strengths and
weaknesses, then the value chain analysis was performed. And to wrap up the
external and internal analysis SFAS was used to highlight the most important
factors of EFAS & IFAS and paving the way for the Strategical analysis. According
to EFAS and IFAS, the most important factors were as follows:
(S) High revenues, fast revenue growth and high profit margin
(S) Focus on R&D and technological innovation
(S) Massive database which provides value to the advertising business
(S) Strong market position
(S) Large active user’s base
(W) Impacted brand image due to the attitude and practices towards users’
privacy
(W) Weak protection of user’s data
(W) Low business diversification

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(O) Increasing in the global technological advancement, innovation, and
technological knowledge among people.
(O) Increasing the advertising revenue by enhancing mobile based advertising
and marketing
(O) Increasing preference and need for higher quality
(O) Economic stability increases and rapid economic growth and disposable
incomes increase in developing countries
(O) Improving patent and product protection laws worldwide
(T) Strong Competition
(T) Privacy Violation and Cybercrime
(T) Imitation of the company’s platforms and business model platforms and
business model
(T) Image and reputation crisis
(T) Increasingly saturated market may lead to the plateau of market growth
Starting with the SWOT matrix compiling the most important external and
internal factors and TOWS analysis by paring SO, WO, ST, WT which resulted in
the initial suggestion of the strategies recommended to be used.
Finally, the QSPM was used to identify and weight the attractiveness of each
suggested strategy. Based on total attractiveness score: Innovation strategy has
the highest score (5.75) followed by Product/service Development with score of
(4.99), then Related Diversification with score of (4.94), and lastly Market
Penetration with score of (3.88). Our suggested strategic mix is to implement
the highest two strategies in attractiveness score which is Innovation Strategy
and Product/service Development strategy. The proper implementation of the
chosen strategy is a success factor of the organization. So, each strategy was

99
translated into strategic objective with a time frame of three years and tactical
(annual) objective, then the implementation matrix was formulated to state the
operational objectives, polices and actions needed from each department. And
to evaluate and control the implementation process we recommended KPIs for
each operational objective and balanced score card for each strategy in our
strategic mix.

100
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