Mission Statement: Facebook’s mission statement in the case is to increase information flow between people and to help people learn what’s going on in their world and express themselves. Facebook’s mission statement according to their website is “to give people the power to share and make the world more open and connected (Facebook, 2011)”. Vision Statement: Facebook’s vision statement is to create a vibrant, growing online community of members who are able to leverage the power of their relationships in a way that was never before possible. Business Strategy: Facebook’s business strategy has several elements. The first part of the strategy is to limit the availability of the member’s profile to only their friends and other students at their school. The concept is to promote local networking and to ensure the information on the site is seen by only the people who the member wants to share information with. The second part of the business strategy is to create a larger use base (Facebook accounts) to attract big brands (investors) to advertise on their website to revenue. Facebook look towards generating interest of venture capital firms to invest in the company in order to purchase the much need supplies of servers to operate the website. Lastly, Facebook believes in a lot of experimentation, however the company does provide some top-down strategic direction as the need arises. HR Strategy: Facebook’s HR strategy is to increase their sales force, hire seasonal senior management talent and to hire engineers to work on various projects. Facebook has turn to conducting recruiting events at universities to build their engineering team. Facebook was also interest in recruiting personnel who have raw intelligence and the ability to align themselves with the company’s culture. Fit: Facebook’s HR Strategy fits with their business strategy. By hiring the most effective and efficient staff whether in management, engineering, or sales it would reflect in the growing and expansion of the company. Basically wants to increase their user base and increase revenues to pay for operating costs. Senior management would help with the process of selecting, budgeting and prioritizes projects that would draw additionally user to the website. Hiring engineering to strengthen the infrastructure and develop ways to increase speed of users will maintain current user bases and again attract new users to the website. Lastly, hiring additional sales personnel would help generate much need revenue to keep up the everyday costs of running the company.
One source of revenue for Facebook was announcements that allowed local advertisers to buy text-only advertisements targeted to specific schools in their geography. Facebook set prices by school per day, ranging from $5 to $20 based on the number of impressions. -
Another source of revenue was banner advertisements. Banner advertisements are national advertisers, who could purchase graphical banner advertisements to run across a number of the website’s pages. -
The third source of revenue was sponsored groups. Sponsor groups are companies like Apple and EA who paid to sponsor groups, or promotional areas on the website. On Facebook’s customer support page, it read, “The money from these promotions, like the money from all our ads, goes towards the Facebook’s server and operational costs. Sponsored groups help up keep the service free and fast.” -
Facebook had initially target the market of college students to increase the website’s user based. Then they had adjusted their model slightly to attract high school students to the website. Facebook then had taken it one step further to attract alumni’s to continually increase their user base. -
Cost per click advertising is when the advertiser would be bill by the number of times a visitor clicks on a banner instead of by the number of impressions. Cost per click is often used when the advertisers have a set daily budget. When...
Please join StudyMode to read the full document