STRATEGIC MANAGEMENT (SM28)

Introduction:

Strategic management refers to the process of analyzing and monitoring the plans for an organisation that helps them in achieving its goals and objectives. It provides direction to the organisation through which a firm's objectives can be monitored by developing new policies. It also incorporated by formulation and implementation of goals, this type of application is taken by the top management based on resources and environment on which the enterprises compete. 

In this assignment, the points that are going to be explained under strategic management are strategic purpose of corporate social responsibility (CSR) issues and the factors which are related to competitive standings.  On the other hand network effect and the users, preferences on other network are also mentioned. Apart from this, strategic resources and capabilities of social media are also mentioned in this assignment. The whole assignment is done on the bases of the comparison on Face book and LinkedIn.  

  A. Strategic Purpose:

Corporate social responsibility (CSR) is referred to business activities which are involved with society’s benefits. As stated by Jin, Liu and Austin (2014, p 90) it encloses variety of approach from giving a position of an organisation to charity, to carry out greener business operation. The use of social media helps the organization to shares its facilities and knowledge across the business market as well as in the corporate world. As result, the firm realized the value of social media into a traditional business. As such marketing, sales and customers are involving in this traditional process. Therefore, this type marketing opportunity faces many challenges. According to Aral, Dellarocas and Godes (2013, p 10) management communication is that where all the managers are not aware of the role played in communication and mistreating the CSR. They do not have the clear vision regarding CSR and the role of communicators. Issues related to marketing communication where trust, transparency which is generally related to consumers is also a big challenge for the business. Organization where failed to fulfill the gap between the stakeholder and employees. As stated by Pinedo and Walter (2013, p63) CSR enables the organisation to impose ineffective market-related solutions and crises on an environment which cause the problem for the business firm.  There are many challenges for the customer's attitude on the effect of corporate commitment on social problems.

The approaches regarding CSR by Facebook, the company denoted the page as “Green Facebook” which usually advertises its charitable plans and CSR activities. Facebook performs the different type of programs in CSR such as supporting the local community, empowerment to the workers and educating children. Galliers and Leider (2014, p56) stated, human rights and labors are often played an important in the organization, therefore, facebook employees are often placed in the role to strengths and encourage their managers. Gender inequality, a health of employee and safety are also some categories of CSR activities performed by facebook. According to Ross (2013, p45) they run various activities related to environment programs like water diversion program, where an amount of water is used for energy purpose. Lastly, some other initiatives and charitable donation are also performed by them. They offer transport system for their workers as well as resources for their work. They have launched an Open Compute Project (OCP) which will create an open source act in the hardware and in the industry of data center.     

On the other hand, LinkedIn is a job portal where business related pages are available. This page is for the candidates or recruiters which help them for their business related issues. This is becoming network friendly as the company as a huge professional network. Therefore, CSR activities related to this company is quite less as its portal which is related to business only. Their approach towards CSR activities is adopting by the firm different stress factors that are generated by ecology of its areas of operation and construction. This can be analyzed by an environment where sourcing stock like mining, water resources for manufacturing. According to Campbell and Reyes (2015, p23) disposal of waste products in the water bodies are to controlled. These activities are performed to maintain the environment and make it eco-friendly. Charity and donation for the poor farmers to establish and make them educated. Roadway and transport facilities are also some of the activities performed by them.

Facebook at work permits their users to keep professional connection as well personal also whereas LinkedIn has recently expanded their business around the world. Basically, LinkedIn is a networking which includes business blogs other facts related to business content. Therefore facebook is quite unsafe for the users who share information related to business but different privacy and security developed to make it safe. Still, it is a big challenge for them to maintain such security. Apart from this LinkedIn is not at all good for social media. This portal is important for office or business purpose. Whereas on facebook is a place to communicate and get update with the social. Regarding CSR activities many projects are organized by them. The approaches are basically maintained by Facebook than LinkedIn. According to Colleni (2013, p45) education, healthy, employee’s safeties are well developed and maintained by them. LinkedIn approaches regarding education are maintained but regarding the environment is less as compare to Facebook. LinkedIn is now going faster in this competitive field as compare to facebook. 

Hence both companies in this social media are renowned but their strategic management is quite poor. Their planning towards CSR is the needed to be established so that it can make the activities more and more efficient for the environment.

B. Environment:

As stated by Bergh et al. (2016, p.477), the social media industry is comparatively a stand-alone sector in respect to the political, social and economic factors. Here, porter’s five forces model regarding social media is explained below.

The concept reveals the strategical planning of any business. Different strategies are needed for ensuring the success. The five forces model provides a framework for strategic business planning. According to porter social media service industry can be classified into two categories i.e. ‘Business to Business' and ‘Business to Consumers'. In the case of both the models, social media is having very little entry level constraints.

Five Factors:

Threats of New Entrants: Due to new entrance into the market, competition is increased and service can be diversified. For ‘Business to Business’ model, loyalty level of a purchaser is very low. The primary benefit of this concept is the initial investment is very low and having the price performance decision power. Lack of proper knowledge and lack of experience are two main factors which are considered as the standard for success of B2B concept. Lower the entry constraint under this model refers to the lower exit limitation. 

Substitutes: The model shows that substitutes are self-explanatory. They can be taken into the consideration for the purpose of competition only. For competing in the market new strategy adoption is essential for every business. A client firm is always trying to reach the success in the competition, increase profitability by diversifying the service.

Price-Performance Activity:  Agencies in the social media industry can be classified into three levels. These levels are 1) Lower level 2) Middle Level and 3) Top Level. Lower level agencies will render service in cheaper price; middle level will provide comparatively a superior quality service and highest quality work will be done by top level. As per performance of different levels, price differs. 

Purchaser and Suppliers: Social media industry is having a pivot role the purchasers. They are the end users of the product. Buyers of the company must be motivated in such a way, so that they will take the service willingly, not forcefully. The advantage of the industry will definitely come when it will fully develop and agencies spread across the price-performance margins. ‘Supply' is a term that can be interpreted in respect to proper knowledge and experience. A person who has right knowledge can provide better service to the management.

Existing Competitors: Competition is the vital area of any industry whether it is small or large. In the social media industry, there are several agencies and they provide service of different quality. So, competition is an important issue for social media industry In case of business to consumer model different brands wants to promote their service in the competitive market adopting unique strategy.

The attractiveness of Social Media Industry:

 According to Hill, Jones, and Schilling, (2014, p.31), the main focus of the social media industry is the power of connection. Different networking sites like Facebook, LinkedIn become essential part of daily life of human beings. A person can attach to another person in every moment. No physical movement is required. ‘Face to Face' interactions can be made through social sites. Both formal and informal communication by different tools makes the life faster and easier.

Critical Success Factors of the Industry:

·         Motivation is the key element of the media industry. If the business cannot be served properly then challenges will come. So, positive motivation is important.

·         Organisation culture is also an essential area of this industry. If company does not value the team participation and if there is no reward process then it is having a negative impact on the enterprise.

·         Influencers are also an essential part of this industry. A person who is contributing to the community can come from any level in the organisation.

·         Community development is the important factor for media service. It includes ability to develop business, increase connection etc.

The network effect of Social Media Industry:

In media industry network effect is dominated by communication strategy. By efficient and effective management and reducing cost related to the marketing, media industry can flourish their image. For better communication process, correct technology must be adopted.  

Reason of choosing Few Social Networks by Users and maintaining Rigidity in use:

As per Eden and Ackermann, (2013, p.27), social site users mainly accept a specific networking site considering its features, privacy and user friendliness. If they are habituated with specific site then they do not want to move themselves thinking that the new site may not fulfill their requirements.

C. Strategic Resources and Ability:

Application of Resource and Ability to LinkedIn:

As stated by Morschet, Schramm and Zentes, (2015, p.51), ‘LinkedIn’ is very popular networking site regarding online resume service.. From this site better job opportunity can be obtained. There are main five resources of LinkedIn. The ability of these factors is explained below.

Headline: Headline in this site is having similar function like the headline of advertisement. The main objective is to get the required target people. Some persons seem that headline means the title of job. If headline is blank then the site considers the present title of job as default. If someone wants to be highlighted then he has to pack the headline with keywords. The headline in ‘LinkedIn’ sometimes serves as online magnet.

Team: In maximum cases, it is seen that the members in this site utilise their time by sending request to others or accepting another person etc. The actual value of this site is hidden in the group. It is very powerful resource. It serves the three advantages.

·         Increase the volume of message for very large group.

·         It helps to build the own network

·         Enhance the job to do in an effective manner.

Multimedia Option:

This social networking site helps to make integration of videos and photos into the own profile. Maximum profiles do not contain any multimedia option. It is the success of the technology. This option enhances the service of ‘LinkedIn' site.

Endorsements:

It is a feature of judging a person on the basis of skills for which they are endorsed. People must act to get primary skills endorsed so that top ten are highlighted as per significance to the success of the career. Always be positive to eliminate endorsements for skills that just make dirty the water.

Assessment of Resources and Abilities:

According to Simon et al. (2014, p.5), ‘LinkedIn’ is very important networking site, acts as job portal. The site is having great importance all over the world. It most sophisticated and diversified site having lots of features. People can access different people very easily and mainly they can act as team or group which is the very strong resource of this site. People can easily upload their images and can spend time by sharing common views with others. It is undoubtedly an extraordinary opportunity of ‘LinkedIn'. In case of searching job or providing job notification, the site very effective. The users of this networking site are gradually increasing due to its high-level service. The privacy service is also very good of this site. This portal is used by maximum persons in the world. People are evaluated as per profile. So profile must be created properly to get the right opportunity from the ‘LinkedIn'. The personal brand is also considered here. For this one must ensure that the profile is professional-looking. If professionalism is not reflected in terms of information, photo etc then it is not highlighted on this site. In case of uploading resume, headlines must be considered properly. 

Recommendation of Strategies:

The social e-networking site ‘LinkedIn’ is definitely rendered the high level service. In order to improving the service some recommendations are explained below.

·         Upgrading the headline service, so that it becomes more attractive than the past.

·         Service of group sharing must be maintained properly. Because if there is no consistency in the workflow, then it is difficult to run a operation in efficient and effective manner.

·         Multimedia option is undoubtedly a great option in this site. The uploading features of photo, video etc. can be upgraded to increase the level. In dynamic competitive business world change is made frequently.

Overall Positioning and Differentiation of LinkedIn:

As stated by Boyd, (2014, p.21), ‘LinkedIn’ site always tries to help its members to be more effective and successful.  The site provides different tools to upgrade the quality of resume. It provides suggestion to its members to help them for getting the better service from ‘LinkedIn’. It gives some solutions for different problems. In order to meet the requirements of their members, they always try to improve their standards. This is continuous process in the market of competition. There are several sites of uploading resume but ‘LinkedIn’ is having some special advantages. This site provides some differentiated service to the members. They select the right candidate for right job. Profile mismatch is completely avoided here which is essential part of job seeking persons. They always help to reach to the customers with unique service. They focus on the professionalism very strictly comparing to other job portals.

D.Business and Corporate Strategies:

1. Differentiation in Social Media Industry:

According to Nagi, Tao and Moon, (2015, p.33), differentiation means Unique or different from other. In business world differentiation refers to providing unique service to the customers. Social networking sites provide their service in different way. Each site is having separate features. The ultimate motive of differentiation is creating a unique value to customers regarding same product. This is an important strategy for making competition. Making differentiation in operating activities, a company wants to be very close to the customers. If customers are satisfied with the product or service then new customers will come. In such a way the business in the social media industry can be developed. As per Madden et al. (2013, p.2), there are several sites which are used by the users. Facebook, Orkut these two are same level networking site. But Facebook is most popular networking site due to its right business strategy and providing better customer satisfaction level. Every people are having Facebook accounts in modern life which can be used for different purposes. Sharing photos, common views etc. Not only service, consistency in performance is also an important part for success. There are several applications which are developed after Facebook. In order to run a corporation effectively and to compete in social media industry accurately, differentiation is always required. New potential customers can be achieved easily by providing service with differentiation. As stated by Fan and Gordon, (2014, p.74), the social media industry is most competitive industry due to giving innovative service to the customers. For more creativity, differentiation is mandatory. So, strategies must be formulated in such a way, so that it is very easy to reach to the consumers with differentiated products. The main area which is to be focused on the differentiation is skill settings and identifying strength and weak points from business environment analysis. If strengths are framed correctly, then unique strategy can be formed very quickly. Scott, (2015, p.15), opines that strategical planning is very important part of any organisation. If it is not considered properly, success cannot be achieved. Service should be reached to the users in such a way so that it can create extraordinary value to the consumers.

2. Evaluating Facebook in terms of Creating Value for its Component Business:

Facebook should create values for its component business in the following ways.

• Making proper engagement. Here, engagement means sharing, commenting and liking posts. The crucial aspect of driving purchase decision of customers is what their friends think.
• Gather Facebook likes by existing marketing means and social media. Quality service to the customers, Innovative products, Better corporate citizenship, correct advertisement etc. are essential for making positive image.
• Making charitable donation for each like. This will be helpful for increasing standards and encourages the sharing.

·         As per Grajales et al. (2014, p.13), Visual content is always better than the written content. It provides better understandings than the written content.

·         According to Treem and Leonardi, (2013, p.143), value proposition is also an essential fact which says that why should click on the advertisement in order to gather more knowledge regarding any product. If Facebook says that they are providing best social networking service in the world, it cannot convince people properly. Hardly 30% people will believe this. When they will say over one million people are joining Facebook in every year, it will be believed by maximum people in the world.

·         As stated by Moorhead et al. (2013, p.85), there are several ways of evaluating the request of advertisement. The quality of advertisement and relevance must be given priority. In such a way Facebook can develop their business in social media industry. When an advertisement is considered to be shown to a human being, an auction is happening. In every auction, advertisements which are having the highest values, can win.

·         Facebook offers different games for playing. For gaming it has become most popular site in modern world. Different types of games are available in the Facebook. The users can freely access the games and can spend their time.

From the above discussion, it can be said that Facebook is not suitable for all the business. Mainly online advertisement, gaming industry Facebook provides a platform. Gaming industry is having main profit in Facebook. There are lots of games which are played in Facebook. Demand of gaming business is always higher than any other business. It is having great demand all over the world. Different products advertisement is very much popular. For advertising business, Facebook provides good assistance.

Conclusion:

From the above assignment, this is concluded that without social media today's life is impossible. Social media have its positive side as well as drawbacks. As it has good and bad both impacts, therefore, it is the choice of the user to accept the positive or negative impact. It is not only beneficial for the social also in professional life also. Apart from this securities need to be updated more for maintaining the privacy of the users. Different types of cyber crime need to be looked by the authority so that it would be controlled. The ability to identify the correct information is quiet difficult for the user.