How Facebook measures the effectiveness of their programs? Essay
How Facebook measures the effectiveness of their programs?, 491 words essay example
Essay Topic: facebook
money, as compensation to the existing whatsApp employees for staying on board at Facebook, Inc. (Perrini, 2006).
How Facebook measures the effectiveness of their programs
As a global social media business corporation, Facebook is well aware that being appreciated and trusted by its stakeholders and pursuing socially responsible policies can reduce risks that may arise from competition issues. The corporate reputation depends on its stakeholders such as users, community, and employees (Mullerat, 2005). Therefore, in measuring the effectiveness of their programs, Facebook Inc., considers the different factors such as, the popularity usefulness, ease of use, performance, as well as reliability of their products visvis to other products of their competitors. Furthermore, they take into consideration the composition and size of their user base, their engagement with Facebook products, the market acceptance and timing of the product, including enhancements and developments to their competitors products. In addition to that, Facebook Inc., believes in their ability to monetize their products and it is important to note that, the size, frequency, quality and the relative prominence of the ads displayed by the company or by its competitors serve as a source of information that is used in assessing the effectiveness of their programs (Facebook Inc, 2014).
My experience and what other stakeholders say
A companys stakeholder is any person or organization who can put a claim on a companys resources, attention or output. Although some business leaders acknowledge that their companies are socially created and licensed, my experience with Facebook is not a bad one. For instance, I have realized that this acquisition enables me and other users to have the additional reach and frequency. Furthermore, given its scale, whatsApp has also the potential to be highly profitable on both sides. Additionally, its freemium model which makes it free a whole year and then someone pays only 1$ annually is helping users to be connected regardless of our income. Therefore, this acquisition was primarily aimed to provide services that the society wants at the right price, availability and right quality (Mullerat, 2005).
The difference, if any and where it comes from
All the negative opinions are related to the fact that, in the past, WhatsApp had low revenue which may affect Facebook in one way or the other. Additionally, some people think that the easiest way Facebook can appear to make sense of this transaction is to make significant changes to whatsApps business mode. For example, they say so because Facebook needs to generate a huge amount of approximately $2.8 billion in revenue in the internal year to breakeven. Therefore, Facebook can experience a significant loss in the future from this transaction, if no measures are taken in order to generate this amount (Gelles, 2014).
In conclusion, the corporate social responsibility programs are necessary for any corporate investment because they can serve as a key element of risk management for a big corporation such as Facebook (Mullerat, 2005). Therefore, these programs provide companies with principles and framework for stakeholders engagement in addressing corporate social issues.