Review the Company Index
Review the Company Index starting on page 517 in your textbook and select one company in which to conduct a strategic case analysis. You will want to select a company which has had recent negative or controversial publicity. Review any available information on your selected company through reliable sources. Then, in a 4 to 6 page, APA formatted response, follow these steps:
Skim the Information
Skim for basic facts. As you read, jot down your notes regarding the following basic questions:
Who are the principal actors?
What are the key events over the last few years?
When and where do these key events happen (in other words, what is the timeline)?
Define the Problem
Which facts are relevant and why? Gather information and then piece the clues together to figure out what is wrong. Like a doctor would, your goal at this stage is to identify the symptoms in order to figure out which tests to run in order to make a definitive diagnosis of the main disease. Only then can you prescribe a treatment with confidence that it will actually help the situation. Rushing too quickly through this stage often results in malpractice (that is, giving a patient with an upset stomach an antacid when she really has the flu), with effects that range from unhelpful to downright dangerous. The best way to ensure that you do no harm is to analyze the facts carefully, fighting the temptation to jump right to proposing a solution.
Determine the Tools
The third step, continuing the medical analogy, is to determine which analytical tools will help you to most accurately diagnose the problem(s). Doctors may choose to run blood tests or take an X-ray. In doing case analysis, follow the steps of the strategic management process. You have any and all of the following models and frameworks at your disposal, which you will use to begin drafting your written response:
Perform an external environmental analysis of the:
Macro-level environment (PESTEL analysis).
Industry environment (e.g., Porter’s five forces).
Competitive environment
Strategic group analysis
Perform an internal analysis of the firm using the resource-based view:
What are the firm’s resources, capabilities, and competencies?
Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources (VRIO analysis)?
What is the firm’s value chain?
Analyze the firm’s current business-level and corporate-level strategies:
Business-level strategy (product market positioning)
Corporate-level strategy (diversification)
International strategy (geographic scope and mode of entry)
How are these strategies being implemented?
Analyze the firm’s performance:
Use both financial and market-based measures.
How does the firm compare to its competitors as well as the industry average?
What trends are evident over the past three to five years?
Consider the perspectives of multiple stakeholders (internal and external). Does the firm possess a competitive advantage? If so, can it be sustained?
Make a Diagnosis
With all of this information in hand, you are finally ready to make a diagnosis, which you will include in your written response. Describe the problem(s) or opportunity(ies) facing the firm at this time and/or in the near future. How are they interrelated? Support your conclusions with data generated from your analyses.
Propose a Solution
You will conclude your paper with a solution. When you have the problem figured out (your diagnosis), the next step is to propose a treatment plan or solution. The purpose of doing case analysis is to look past the
easy answers and to help figure out not just what works but what might be a better answer. In other words, do not just take the first idea that comes to your mind and run with it. Instead, write down that idea for subsequent consideration but then think about what other solutions might achieve the
same (or even better) results. Select the best solution and describe why it is the optimal move.
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15 19:05 Hi, the book name is
Rothaermel, Frank. (2021). Strategic Management (5th ed.). McGraw-Hill Higher education
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PASSword: Jiang138181
Strategic Case Analysis: Facebook
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Strategic Case Analysis: Facebook
Introduction
Facebook, the social media giant, has recently faced scrutiny and backlash about its data management, moderation of content, and ethical practices. It is crucial to evaluate the problems faced by the company and their impact on its strategic direction, particularly in the context of its growth, particularly as Meta (Rothaermel, 2023). This report will evaluate the primary challenges faced by Facebook, analyze its internal and external environment, and propose solutions to ensure its success in a rapidly evolving digital landscape.
Skimming Information
Principal Actors
Mark Zuckerberg, Facebook’s CEO and co-founder, has represented the firm in congressional hearings and media appearances. Former COO Sheryl Sandberg was key to the company’s operations and strategy until her 2022 resignation (Lulandala, 2020). Whistleblowers like Frances Haugen, who published internal documents showing Facebook’s knowledge of its platform’s detrimental impacts, have also affected Facebook’s public image and regulatory scrutiny.
Key Events
In 2018, Facebook was accused of mishandling user data in the Cambridge Analytica incident, sparking criticism and regulatory probes (Atik, 2020). The 2021 whistleblower allegations by Frances Haugen revealed internal studies demonstrating that Facebook knew its services might harm mental health, particularly teens. In 2023, Facebook, now Meta, was criticized for disseminating misinformation and dangerous content, intensifying calls for regulation.
Timeline
Mark Zuckerberg testified before Congress in April 2018 after the Cambridge Analytica incident in March 2018 (Atik, 2020). The next important incident was Frances Haugen’s September 2021 release of internal documents and October 2021 Senate testimony. Meta faced regulatory measures in numerous countries and increased public and governmental scrutiny of its content management and data privacy procedures in 2023.
Problem Definition
Facebook’s main concern is the conflict between pursuing economic interests while maintaining ethical as well as legal standards regarding data privacy, freedom of censorship, and fake news (Fonseca, 2022). An adverse event in 2018 involving Facebook and Cambridge Analytica exposed the deficiencies in the company’s approach to personal data privacy. It led to a loss of user confidence and greater regulatory oversight (Atik, 2020). In 2021, Frances Haugen, a former employee, blew the whistle, stating that Facebook has become aware that its services harm consumers, particularly teenage users. These issues are closely related since Facebook’s goal is to increase user activity and sales of advertising space rather than to protect users’ rights and interests (Rothaermel, 2023). As a result, the organization has weakened its image, increased the regulatory requirements, and endangered its long-term financial and operational problems.
Analytical Tools
External Analysis
PESTEL Analysis
Facebook functions within a complex macroenvironment influenced by an array of external forces. These include:
Political: Political variables include tightening laws and more government oversight, especially in the areas of content moderation and data protection (Lulandala, 2020).
Economic: Economic issues include changes in Facebook's main source of income, advertising revenue, which is impacted by the state of the world economy (Othman et al., 2021).
Social: Social variables reflect the public's growing concern over data privacy and the effects of misinformation on society (Kraus et al., 2022).
Technological: Rapid developments in cybersecurity and artificial intelligence (AI) are technological variables that Facebook needs to embrace to improve user safety (Othman et al., 2021).
Environmental: Environmental considerations include the company's carbon footprint, particularly in light of its large data centers.
Legal Factors: Legal considerations are important because there are continuous legal issues and rules everywhere, especially in the US and the EU (Lulandala, 2020).
Porter's Five Forces
Competition: Major social media competitors, such as Twitter, TikTok, and Snapchat, are fiercely competing for user attention and ad money (Kraus et al., 2022).
Threat of New Entrants: Rothaermel (2023) notes that due to the high entry barriers—such as the requirement for a substantial amount of capital and a sizable user base—the threat of new competitors is moderate.
Threat of Substitutes: There is a moderate risk of alternatives, as there could be competition from other messaging apps and communication and enterta