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FACEBOOK COMPANY REPORT

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Contents

Abstract ............................................................................................................................... 3

Introduction ......................................................................................................................... 4

Origin and Prominence ....................................................................................................... 5

Operation of Facebook ........................................................................................................ 6

Competition......................................................................................................................... 8

Ethics of the Company ........................................................................................................ 8

Challenges Faced by Facebook ........................................................................................... 9

Conclusion ........................................................................................................................ 10

References ......................................................................................................................... 11

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Abstract

Facebook is the largest social media globally. The founders of the company were college

roommates. This paper will discuss the foundation of this particular site. We will discuss the

origin of the company and the reasons for its establishment. Also, we will look into the various

reasons which made it gain recognition globally. The discussion will also entail how the

company operates and discuss its sources of profit and revenue. We shall take a look at the

competition it offers similar companies and vice versa. Every company has a set code of conduct

that the employees ought to follow. We will take a look at these code of conduct, its strengths,

and weaknesses. Also, we will discuss the various threats the company faces from its competitors

and the environment and attempt to offer solutions.

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Introduction

Ever since the development of technology, several methods of communication have been

invented. These available means of communication enable people who are miles away from each

other to network and share ideas. Through time, the modes of communication have developed

from the simple but cumbersome methods for the technical and easy to use methods. Currently,

the most common means of communication is the use of social media with Facebook leading this

market, followed closely by Whats App which has 500 million users and Twitter with 284

million users (Mallia, 2014). As of December 2016, Facebook recorded a total of 1.86 billion

active monthly users. Out of these, 1.74 billion access the site from their mobile phones (Mallia,

2014). The use of Facebook has accelerated globally due to the increase in the use of

smartphones.

Mark Zuckerberg founded the company in 2004. He is the present Chief Executive

Officer and the Chairman of Facebook. Facebook users increase annually by approximately 17%

from the previous year (Mallia, 2014). Not only is Facebook used for communication, but also

for marketing and selling of various products. The platform provides the users with an ability to

share information with one another. During the foundation of the company, most of the users

were aged between 18 years and 24 years (Mallia, 2014). Currently, everyone can access and use

the site. The majority of the users falls between the ages of 24 and 35 years. Every minute, an

approximate of 300 new profiles are created. Users spend an average of 30 minutes daily on the

site.

Facebook is a user-friendly website which allows people to access preferred items based

on their age, gender and demography. Facebook enables its users to share photos and ideas with

one another. Since May 2013, an average of 16 million businesses has created pages and groups

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on Facebook (Mallia, 2014). These pages and groups enable them to market their products to a

wider audience, thereby increasing their market. The business owners also communicate

efficiently with their clients.

Origin and Prominence

Facebook started as a social site used by Harvard students. The founder of the company,

Mark Zuckerberg established a website whose sole purpose was to share photos and details of

students all over the campus (Kirkpatrick, 2011). At the time, he was not very serious about the

site. In fact, he started it as a prank which was not received well by most members of the

Harvard community. At this time, the name of the site was Face mash. The site was only used on

site and would become inactive as soon as one left the school premises. The administration was

not pleased with the site and ordered Mark to pull it down. A week later, Mark Zuckerberg

invented a new site he named “The Facebook.” The main aim of this site was to allow students to

socialize with one another. The site gained popularity within the campus immediately. At any

given instance, 10% of the students had logged into the site (Kirkpatrick, 2011). Later on,

students from other campuses such as the Massachusetts Institute of Technology requested if

they could access the site. Mark and his friends were able to extend the services of the site to

other campuses to facilitate socialization of students.

Mark Zuckerberg used his skills of psychology and computer science to make the site

better. Using his computer science skills, he was able to create various code which he used to

make the site better and greater (Kirkpatrick, 2011). Also, he attempted his best to make it user-

friendly to encourage most students to use it. He used his psychological skills to ensure that the

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site would facilitate proper socialization. He made sure that the users were comfortable using the

site and sharing information. He guided people on information that could be shared so as to

reduce cases of bullying, identity theft, and similar incidences. Professor Harry Lewis, who was

his professor was perplexed at how Mark managed to combine both skills and come up with

something that is meaningful to the society (Kirkpatrick, 2011). In his years of experience,

Professor Harry had never come across a student who was able to combine two skills and use

them productively to the community.

Facebook gained popularity in 2007 when Mark Zuckerberg decided to open it for use by

anyone worldwide (Kirkpatrick, 2011). As long as one had an email address, they could easily

create an account and connect with the rest of the world. The accounts were free to open and as

such made it gain popularity among people quickly. Since it was opened officially by any user,

an approximate of 50000 users register on the site on a daily basis. To date, the website has

recorded a total of 1.87 billion active users.

Operation of Facebook

When Mark Zuckerberg founded Facebook, his main aim was to enhance culture by

enabling people to share interests and ideas. It also enhances global connections. Over the years,

Facebook has gained a lot of popularity. In fact, it is the most popular followed by Whats App

and Twitter (Treadaway & Smith, 2012). Not only is Facebook a socializing tool, but also a

platform for advertisements. The site allows companies to create pages which they use to attract

customers. The company has employed software developers, venture capitalists, and

entrepreneurs who assist running the company thereby ensuring high profits.

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Mark Zuckerberg has managed to lift the company to a multi-billion company. He began

the company as an amateur in the business. However, he did not rush to make rushed decisions

for money. He sought advice from reliable sources. Among his advisors was Ron Conway, who

was an investor (Treadaway & Smith, 2012). Following Ron’s advice, Mark promoted Facebook

from a campus site to a company. This move made Facebook gain up to five million users.

Following this act, several investors and companies offered Mark Zuckerberg money to

buy the company. Among them was Yahoo which offered him one billion dollars. However,

Mark turned down the offer due to his ambition. He believed that he could make Facebook a

better company rather than sell. In 2007, Microsoft offered Mark $15 billion for the company.

Although the offer was overwhelming, Mark turned it down.

Mark Zuckerberg supervises every activity to ensure Facebook maintains its reputation

while remaining a profitable business. The chief engineer of the company Andrew Bosworth

tests everything before launching and runs them with Mark for approval.

Mark Zuckerberg poached Sheryl Sandberg from Google and made her the company’s

Chief Operating Officer (Treadaway & Smith, 2012). Back at Google, Sheryl was in charge of

advertisements and business in general. With Sheryl in the company, Mark was sure that the

company would grow radically since she had the required knowledge to bring a company from

start-up to grown-up.

Facebook works hand in hand with TBG Company to promote its advertising sector.

TBG have specialized in Facebook advertisements (Treadaway & Smith, 2012). They know they

type of adverts to reach a particular group of people. They ensure that the advertisements are

distributed accordingly to the right audience. TBG has developed Facebook from a website to a

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platform where various business put up their advertisements. These companies pay for the

advertisements, providing Facebook with income. Another method through which Facebook

generates income through games and credits. These sources supply the company with billions

every year.

Competition

Facebook has managed to keep ahead in its competitive environment. It is the most

popular compared to other social sites. It provides its users with several functions which make it

interesting and easy to use. Also, it gives its users a proper security system which encourages the

users to stay loyal to it. So far, the platform does not face a lot of competition from other social

sites. However, the staff needs to ensure that they keep updating their site and providing their

users with the latest and best features.

Ethics of the Company

Facebook was created with the aim of connecting people and enable them to share ideas.

Since its creation, the company has tried to stick to its aim and find better ways of doing so.

Facebook has successfully facilitated people to share both personal and business ideas. The site

provides people with the option of sharing stories and photos with their friends. Friends are able

to see each other’s posts and in turn, give their opinion.

As a company, the workers aim at making the site a social place. Their aim is not to get

people addicted rather give them a reason to keep coming back to the site (Lipschultz, 2014).

Also, they ensure that users feel free posting anything without feeling threatened. The site

provides users with access to reporting any form of abuse they might receive.

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As the chief executive officer, Mark Zuckerberg ensures that he provides a comfortable

and peaceful environment for the staff. He makes sure that the staff is comfortable as they work.

Also, he does not overwork them so as to increase their productivity. Mark believes that once he

has a good team, they will be able to replicate the same treatment to the users of the site. They

make the site friendly and secure for people to use.

Mark Zuckerberg interacts with the members of the staff at a personal level. In fact, the

offices of Facebook are open offices. The desk of the CEO is among other workers’ desks. The

only difference that makes his desk outstanding is a dancing doll on his desk that resembles him

(Lipschultz, 2014). He makes sure that the members of the staff are free and open with one

another. Also, he corrects them in proper methods thus ensuring that they do not feel demeaned.

Mark has ensured high ethical standards in the office so that the staff are able to work with

passion.

Challenges Faced by Facebook

The biggest challenge the platform faces is the privacy issue. On a daily basis, up to

600,000 accounts are hacked with 160000 being pages (Brown, 2016). People complain about

various bugs present on their newsfeed. The company needs to improve its security system to

reduce cases of hacking. They need to keep up with technological advances so that they are at

par with the hackers. As such, they will be able to counter the hacking before it happens.

Another issue is that of fake news. Several pages and groups disburse news on the

platform (Brown, 2016). The site does not have a way of checking the truth value of the news.

People, therefore, post anything they want as there are no consequences of posting fake news.

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The site should come up with a method of filtering false news and prevent other users from

seeing them.

There are several old age users on Facebook. The young generation posts some weird

posts which may make the elderly uncomfortable. Facebook does not have a way of filtering this

news so that only the young people access them. The older adults, therefore, get a negative

image of Facebook. The company should find a way of filtering some information according to

age.

Conclusion

Facebook has managed to stay ahead of the competition for years now. The platforms

make billions in revenue annually. This is mainly because they company has proper management

and the staff is treated properly. The rate of Facebook users increases as the number of people

with smartphones increases.

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References

Brown, D. J. (2016). Access to scientific research: challenges facing communications in

STM (Illustrated ). Berlin: De Gruyter Saur.

Kirkpatrick, D. (2011). The Facebook effect: the inside story of the company that is connecting

the world; (Illustrated ). New York: Simon & Schuster paperbacks.

Lipschultz, J. H. (2014). Social media communication: Concepts, Practices, Data, Law and

Ethics (Revised). London: Routledge.

Mallia, G. C. C. C. C. (2014). The Social Classroom: Integrating Social Network Use in

Education. Hershey, PA: Information Science Referece.

Treadaway, C., & Smith, M. (2012). Facebook marketing: An Hour a day (2nd ed.). Hoboken,

NJ: Wiley.

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