Growth of Facebook and Management Samples †MyAssignmenthelp.com

Question: Discuss about the Growth of Facebook and Management. Answer: Various risks to Facebook: Facebook has delivered significant return over the period Industry risk- Facebook success can be disrupted due to evolving competing social networks in terms of strength of network of company, user base and monetization. One of the biggest players in industry is MySpace. Increasing competition in industry has the possibility of weakening and displacing the competitive position of Facebook. Market risk- The valuation of company cannot be justified despite of leveraging to their massive users. The advertising model of company is although generating remarkable results, the conversion of sales from mobile ads is low compared to desktop alternatives. There exist risk whether organization will have any considerable improvement over this matter. Currency risk- Business of Facebook is ever growing at international level and it is exposed to risk of fluctuation in level of currency of different operating companies. A total revenue of $ 3.54 billion is recorded in year 2014 and it was said that revenue growth would have been higher by 49% if there would not been any fluctuation in currency level. Therefore, it is inferred that revenue generated by organization is significantly impacted by fluctuation in foreign currency level as the recorded revenue would have been higher due to general strengthening dollars outside United Sates. Performance attributed to management of organization: The bulk of growth of Facebook is lured to ability of management to keep engage more and more visitors to site. Facebook experiences incredible increase in revenue generated and net income year on year. Performance of company is generated from several efforts of management such as making key acquisitions and hiring specialized employees. In order to serve the existing customers in a better way, organization continues to make investment in core services and products. One of the long part of management strategy of Facebook is acquisitions for adding complementary services, products and specialized companies. In year 2016, acquisition of faciometrics by Facebook enhanced video special effects and photo of Facebook. Creative news ways are developed by management for selling their services and products through applications. Advertising business has been spread by companies through development of photo sharing applications and popular messaging (Berk et al. 2012). Therefore, it can be said that efforts of management has contributed to enhanced growth and expansion of business. References: Berk, Jonathan; DeMarzo, Peter Harford, Jarrad. 2012.Fundamentals of corporate finance. Harlow: Pearson. Ezez. 2017. "Facebook log in or sign up".Facebook.https://www.facebook.com.