Facebook, Inc TOW Analysis

Instructions

Facebook, Inc TOW Analysis

TOWS matrix

A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives.

• You should make it OBVIOUS which OPPORTUNITY and STRENGTH you are focusing in each strategy.

Provide concise strategic recommendations for ALL 8 STRATEGIES
Part 5: Analysis of Strategic Factors

1. SWOT Analysis
   • Strengths: Users, Employees: These users or members of the social network are the stakeholder group that receives the company’s top prioritization in corporate citizenship, considering Facebook Inc.’s mission and vision statements. Facebook Inc. values employees in terms of their contributions to the social media business. These corporate citizenship stakeholders are significant in affecting the company’s evolution, especially in developing and improving products.
   • Weaknesses: Investors, Leadership: Facebook’s revenue growth rate will continue

to decline over time as revenue increases to higher levels. As growth rates decline, investors’ perceptions of its business may be adversely affected, and the trading price of our Class A common stock could decline (Form 10K 2020). Mark Zuckerberg’s leadership has come into extreme scrutiny from civil rights groups and the public for his handling of misinformation on the site and failed attempts to police hate speech and disinformation on the platform. This had led to boycotts from major companies.

• Opportunities: Covid-19, AI: Following the recent cases of Covid-19 pandemic most countries have applied lockdown measures to their citizens, hence denying people freedom to attend their favorite entertainment places. As result, many people have opted to social media as their alternative source of entertainment. With a group of about 300 researchers with 8 locations worldwide, Facebook AI Research (FAIR) pursues overly ambitious long-term scientific goals.
• Threats: Cyber-attacks, Tax Laws: Cyber-attack is a possible menace that Facebook has to take care of seriously to avoid loss of its data. Facebook are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws..

1. TOWS Analysis
   • Strengths / Opportunities:

S1 01: Covid-19, Users

S2 02: Employees, AI

• Strengths/Threats:

S1 T1: Users, Cyber-attacks

S2 T2: Employees, Tax Laws

• Weaknesses/Opportunities

W1 01: Leadership, Covid-19

W2 02: Investors, AI

• Weaknesses/Threats:

W1 T1: Leadership, Cyber-attacks

W2 T2: Investors, Tax Laws

1. Review of Mission and Objectives
   • Are the firm’s stated mission/objectives aligned w/ your analysis to date?
   • What changes should be made
   • How will these changes impact the firm? At the time of Facebook’s initial stock offering, Facebook introduced dual-class structure. All current Shareholders were converted into Class B Stock. Class B Stock will lose its voting power over Class A Stock. Zuckerberg would still have plenty of power as the company’s majority vote holder, but the separation of the roles could be a first step in rebuilding trust with the public and shareholders (Rodriguez).

SUMMARY:

Instructions

TOWS matrix

A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives.

• You should make it OBVIOUS which OPPORTUNITY and STRENGTH you are focusing in each strategy.
• Provide concise strategic recommendations for ALL 8 STRATEGIES.