Case Study 1

Assignment # 02
Submitted by:

Aqsa Tahir

SP13-MBA-006

Anoosha Nayyar

SP13-MBA-007

Noman Ajmal

SP13-MBA-052

Muhammad Jawad Haider

SP13-MBA-042

Muhammad Raza

SP13-MBA-043

Abdul manan khan

SP13-MBA-0

Submission Date: 24 February 2013

Submitted to: DR. Aneel Salam

Department of Management Sciences

COMSATS Institute of Information Technology
Islamabad

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Questions
1. As an investor in a social network such as Facebook, which
financial and
customer-related metrics would you use to assess and benchmark
the
current business success and future growth potential of the
company?
The purpose of Social Media is for members to find groups, clubs,
companies or individuals that share a common interest and to
communicate and connect with each other around that interest. Most
Social media sites are considered successful; not be everything to
everyone in a mass quantity basis but more of a limited and focused
tribe who interacts often, usually daily, if not multiple times per day.
The benefits of this limited but engaged audience typically results in
conversations with real customers, real potential employees, real industry
authorities and people who share your or your companys ideas and
values. The focused tribes rarely will engage in an area they dont
connect with, they rarely are tire kickers and because of this, your
company wont be wasting time communicating with people who are not
united to your companys mission.
As it is clear from the case study that Facebook earns its profit from the
ads that are advertised on Facebook. The main revenue is from the cost
per click and cost per impression. So as an investor in face book the main
thing that we have to care about that our financial resources should not
get disturbed. If any conflict raises about the face book it should be deled
more precisely. As the revenue will increase the company will be able to
grow faster and provide more reliable services to the customer
Facebook take care of privacy of the customer and do not provide any
information or sell customer data. This policy of Facebook makes the
customer more satisfactory about his
privacy.
This will increase the number of customers. As Facebook will be a source
of sharing information. It is a fact that as the number of customer will
increase the ad space for Facebook to add more income for the company.
For the future growth of the company it is necessary for Facebook to
continue adding entertainment and attractiveness in the Facebook. Some
of the applications are mentioned in the case study.
1 Interface
2 Queries (FQL)
3 Facebook Markups.
Facebook will have to attract more customers by any means necessary. As
for growth the recent steps taken by Facebook are that it buys WHATS
APP to bring more customer in its circle.

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2. Complete a situation analysis for Facebook focusing on an

assessment of
the main business risks which could damage the future growth
potential of
the social network.
Social Media does have its risks, usually a result of not thinking through
completely what the commitments are. As you set up and post
information on these social sites, it does require administration and
maintenance. Remember, most of the communities expect daily, if not
multiple times per day interaction. If you do not maintain your
conversations in these communities in a timely manner, your audience
will find someone else to engage with and may notify others of your lack
of response.
Social Media is not the place for you to plaster every company Press
Release about your new client win, recent hire, or other messaging not
intimate within the community. Social Media is also not about posting
content just for posting content sake, especially in the thought process of
using a Ghost Writer as your Subject Matter expert or as a substitute for
your CEO.
Lastly, a third risk of Social Media comes to companies who simply set up
Social Media sites with the goal of spreading their message to the world.
This is similar to companies that send out mass email to unknown
recipients with no focus on message or need. We all know that as SPAM
and the same is true in the Social Media sites. The companies who do this
will probably receive a negative reputation in the social communities and
what they thought would help them actually hurts them.
Typical risks are:
1. 1 New entrant or alternative company offers superior experience
2. 2 Ad revenue limited because of difficulty of engaging audience in
ads.
3. 3 Major privacy problem as with Beacon.
4. 4 Technical problems with scalability leading to performance
problems and
5. increased technical costs.
6. 5 New entrant or alternative company offers superior experience
7. The rise of mobile and Android
8. Advertiser spending and attention shifting to Google+.
9. Privacy-related regulations.
10.
Monetization Growth Drops Quickly

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3. Suggest Approaches that company should minimize it.

Ad revenue can be increased by changing the graphics or the way of
interaction. Just like the Telenor add appears on the login page of
Facebook. The appearance of ad like that do attract the customers. If the
company will get a reaction on the action. Than it will automatically
attract the more customer.
As the Facebook is hit several times with the problem of privacy of
customer as case study shows about the Beacon technology. Which
shared information of people with one another. But the shared information
was getting shared publically which customer didnt wanted and gave
feedback about problem and Facebook solved it with time.
Technical problem and problems of new competitors can be solved by
remaining ahead of them capture customer that are using the competitors
software.
Post and Enforce Your Usage and Privacy Policies
Help protect users from themselves.
1. State on your Facebook pages your policies on visitors' use and the privacy
they can expect for their posts and clicks.
2. Monitor visitors' activity. Enforce your policies. Include links on your pages to
report spam, scams, and other inappropriate activity.
Strengthen Account Administration
This is the linchpin for protecting social media pages.
3. Assign at least two administrators (admins) for your account. The admins
should continually monitor and promptly respond to new Facebook policy
changes and features, always considering the impact on the business.
4. Use an Internet firewall with web threat protection, such as Cisco ProtectLink
Web, to authenticate admin access by IP address, and to disallow ads with
malware.
5. Enable the Facebook security feature that will alert you whenever an admin
accesses your account.
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6. Select strong admin passwords and update them at least every three to six
months.
7. Require that remote access to your Facebook account by admins be done in a
VPN session. Alternatively, Facebook offers a security setting that allows
connections via HTTPS. Admins may also use Facebook's one-time password
feature to receive a temporary password on their mobile phone, which can be
useful for remotely accessing the account from a nonsecured device.
8. Regularly review the admins' activity, and remove inactive or unnecessary
admins.
Educate and Enlist Employees
Unfortunately, employees dointentionally or inadvertentlyshare
confidential business information.
9. Create, update, communicate, and enforce a company use policy that
specifies Facebook do's and don'ts, including how employees may interact with
visitors and use visitors' information.
10. Encourage employees to report information that has been incorrectly shared,
or when they think that there may be a security issue.

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