Analyzing Social Media and Facebook

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Facebook

Kaplan and Norton (1993) introduced the balanced scorecard as an implement for management that enables the effective execution of strategies prompted by an organization. The Balanced Scorecard supports the employment and management of all company activities in harmony with their strategic inference. This is done by connecting organizational activities that are non-financial and functioning with fundamental chains to the organization's long-term strategy. The balanced scorecard's four perspectives include: the financial perspective, customer perspective, internal process perspective and learning and growth perspective. The foundation of the different perspectives of the balance scorecard is with regard to the vision, mission and strategic objectives of an organization. In the case of Facebook, the strategic objectives include: brand management, consumer satisfaction, financial prosperity, growth, and innovation.

Facebook, whose main business operation is social media marketing, has to consider the different aspects between financial outcomes and social media growths. By making use of a social media marketing balanced scorecard, it becomes possible to evaluate and assess the diverse short-term benefits and long-term benefits for Facebook Inc. Comparable to the original balanced scorecard by Kaplan and Norton, the social media balanced scorecard as portrayed takes into account metrics from four different perspectives. These include: the financial perspective, the brand perspective, the innovative perspective and consumer perspective.

For the financial perspective, Facebook Inc.'s strategic objective is to capitalize on the organizational assets, enhance the operational productivity and increase the revenue generated in a financial year. Facebook intends to invest in talent and ad-tech investments to generate revenue. In addition, the strategic objective is to attain the 1 billion users landmark for its products, and thereafter, monetize them through advertising and marketing. On the other hand, for consumer perspective, Facebook Inc. believes in coming up with products for consumers that enjoy such products fervently.

The brand perspective of the company takes into account the existence of positive growth and ascendancy for its product offerings and trademark. Strategy objectives of Facebook Inc. encompass the continuous growth of the company and service provision to its prevailing communities as well as businesses, in addition to helping them attains their full-level potential. Lastly, a key aspect of Facebook Inc.'s innovative strategy is incessant pursuit of product development and enhancement. This is by placing emphasis on every diminutive detail that goes along with the product to the consumer market. This is through action plans, such as the provision of free basic internet services to individuals across the world, lacking access to it.

Balance Scorecard

The balanced scorecard is a tool for management that facilitates the efficacious implementation of strategies instigated by an organization. This is an implement that has been measured expansively in study as well as practice (Figge, Schaltegger & Wagner, 2002). By linking organizational activities that are non-financial and functioning with fundamental chains to the organization's long-lasting method, the Balanced Scorecard supports the appointment and administration of all corporate activities in agreement with their strategic implication. In theory, value-based sustainability management makes an endeavor to take into consideration the matter of business offerings and impacts on sustainability in an integrative way (Figge, Schaltegger & Wagner, 2002). It suggests that for companies to improve sustainable development, it is suitable for commercial performance developments in all three extents of sustainability, which include: social, economic and environmental, in a coordinated way.

The Balanced Scorecard is considered to be a proper and efficient component when it comes to alignment. It can facilitate budget synchronization or management purposes by interconnecting strategy to administrators or supervisors, offering them a proper course. Similarly, it can aid executives to be able to supervise strategic advantages and creativities, interconnect and financial activities (Kumari, 2011). The vibrant representation of strategic significances by the Balanced Scorecard facilitates the implementation of strong and effective principles for the planning of a budget. At the time of executing the Balanced Scorecard, it is important to cease on placing emphasis on the significance of intentions linked to the budget to the advantage of intentions that are linked to the Balanced Scorecard, while minimizing the extent of elements contained in the budget. If this is not undertaken, it will only increase the amount of work and also escalate frustrations (Figge, Schaltegger & Wagner, 2002).

The conception of the balanced scorecard is centered on the supposition that the effective use of investment capital is not the determining factor, anymore, for competitive advantages, but rather progressively soft aspects, for instance, knowledge formation, intellectual capital or even exceptional consumer orientation that have come to be more significant. The balanced scorecard's four perspectives include: the financial perspective, customer perspective, internal process perspective and learning and growth perspective.

i. Financial Perspective

Well-timed and correct financials are a main concern at all times for several organizations. In the contemporary age of information, there are more than sufficient resources in organizations to facilitate the processing of financial data and information. Through the ability to obtain a corporate database, several organizations can therefore systematize and integrate their data processing. It might also be essential to integrate extra financial associated data, risk assessment and cost benefit analysis into this financial perspective (Kaplan and Norton, 1993).

ii. Customer Perspective

With regard to contemporary management viewpoint, there has been an increasing awareness of the importance of placing emphasis on satisfying consumer needs for all business organizations. Therefore, such metrics are justification, in that, if consumers are not gratified with the product and services rendered by a particular organization, they will ultimately shift to or search for another provider. More so, it is imperative to point out that poor implementation of this perspective may result in future deterioration of the company (Kaplan and Norton, 1993).

iii. Internal Process Perspective

Measures centered on internal business process perspective enable managers to obtain knowledge with respect to how effective their business is functioning, and whether the organization's products and services are in agreement with consumer prospects. In accordance to Kaplan and Norton (1993), these sorts of measures ought to be prudently considered by those with the paramount knowledge of such practices.

iv. Learning and Growth Perspective

This aspect relays to the enhancements in organizational culture and also growth of the employees through teaching and training. As a result, in a speedily altering technological environment, it is essential for these knowledge-based employees to be incessantly involved in the learning process. Therefore, measures can be introduced so as to direct management in concentrating on capitalizing on teaching and training programmes. Whatever the case may be, growth and innovation encompass the vital success dynamics for any knowledge-based organization (Kaplan and Norton, 1993).

The following analysis will encompass the creation, analysis and discussion of a balanced scorecard for Facebook. It will take into account ascertainment of the strategic objectives of Facebook as a whole, and also develop distinctive objectives within each of the aforementioned perspectives for the unit. To start with, the basis of the different perspectives of the balance scorecard is with respect to the vision, mission and strategic objectives of Facebook as an organization with individual custom metrics and targets.

Facebook Inc.'s Strategic Objectives

STRATEGY

Customer Satisfaction

Continuous Innovation

Increase in Revenue Generated

Facebook Brand Management

VISION "

People use Facebook to stay connected friends and family, discover what's going on in the world, and share an d express what matters to them."

MISSION

Facebook's mission is to give people the power to share and make the world more open and connected

The following chart indicates the balanced scorecard of Facebook Inc., taking into account the four different perspectives.

Strategy Objectives

Measures

Key Performance Indicators (KPIs)

Benchmarks

Facebook Brand Management

Nurture and raise Dialogue about Facebook

Voice Sharing

Engagement of Audience

Conversation Reach

20% of the conversations eliminated per period on the brand / campaign

Improve brand user experience on the mobile platform

Reach about 70% of the Two thirds without Internet

Guarantee Customer Satisfaction

Promote Advocacy

Advocates that are Active

Influential Advocates

Impact-making Advocacy

10% of fans are active brand ambassadors, that is, Report, "like," comment and divide10x per week ( on Wall, Twitter, own blog etc.)

10% of fans are achieved by the brand ambassador

Major 10% of fans are brand ambassadors animated for conversion

Further Innovation

Spur Innovation

Topic Trends

Ratio of Sentiments

Impact of Ideas

Top 10 in the Ranking of the topics discussed per week

Ratio not negative contributions and comments in proportion to the total number of published

Opinions to the mark per period

Ratio of interactions due to the diffusion of new product ideas in proportion to the total number of interactions with the brand %

Financial Perspective

Maximize the Shareholders Equity

ROI

Augmentation in returns and revenue

Increase in consumers of brand advertising

Monetize company products, such as Instagram, Messenger, WhatsApp, Facebook and the like.

Assist brands to measure online to offline sales conversions for brands

Enhance the marketing and advertising user experience for different brands.

Place proper tools for advertisers to increase their marketing on the mobile platform.

Balance Scorecard Discussion

In the contemporary, there has been a sustained increase in the investment of…

Sources Used in Document:

References

Faustino, T. (2014). 5 Objectives Mark Zuckerberg Tracks for Facebook's Domination. Linked In. Retrieved from: http://www.linkedin.com/pulse/20140817211054-31240456-5-objectives-mark-zuckerberg-tracks-for-facebook-s-domination

Fiege, V. R. (2010). Facebook-Marketing Controlling: The Social Media Balanced Scorecard (SMBC). Retrieved: http://facebookmarketing.de/

Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The sustainability balanced scorecard -- linking sustainability management to business strategy. Business strategy and the Environment, 11(5), 269-284.

Kaplan, R.S. and Norton, D.P. (1993). Putting the balanced scorecard to work. Harvard Business Review. Retrieved 9 December 2015 from: http://hbr.org/1993/09/putting-the-balanced-scorecard-to-work

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