Brief History

The original website was initially limited to Harvard students only, but quickly expanded to
additional colleges in the Boston area, other Ivy League schools, then eventually just about
every University in North America, up till now where 1 out of every 7 people on earth is on
Facebook. It was founded by Mark Zuckerberg and some of fellow college roommates at
Harvard University including Eduardo Saverin, Dustin Moskovitz, Andrew McCollum and Chris
Hughes.

Facemash

Facebook however, actually started out in theory on October 23, 2003 when Zuckerberg
launched Facemash.com. Facemash allowed visitors (basically his Harvard classmates) to
compare two student pictures side-by-side to let them decide who was "hot" and who was
"not". Mark was able to populate the site with student pictures by hacking into Harvard's
database. However, days later outraged students demanded Zuckerberg shut down the site.
But one thing was clear, people like to go on the Internet and check out pictures of their
friends. What's not clear was Zuckerberg was also working on another site called
HarvardConnection.com for Cameron Winklevoss, Tyler Winklevoss and Divya Narendra who
later sued Mark for allegedly stealing their idea with the creation of Facebook. But we've all
seen the social network movie by now, if they invented Facebook why didn't they invent
Facebook? The two parties would eventually settle the lawsuit on undisclosed terms.

The Social Network Movie

thefacebook.com

On January 11, 2004 Zuckerberg registered thefacebook.com domain. He mentioned in an

article in The Harvard Crimson that he was inspired by the Facemash incident to create
Facebook, "It is clear that the technology needed to create a centralized Website is readily
available ... the benefits are many." Mark also stated that he wanted to create a website that
can connect people around the University. He figured it would take Harvard years to implement
the system that he and his buddies could put together in a week or so. According to his
roommate, Dustin Moskovitz, "When Mark finished the site, he told a couple of friends ... then
one of them suggested putting it on the Kirkland House online mailing list, which was ... three
hundred people." Moskovitz continued to say that, By the end of the night, we were ... actively
watching the registration process. Within twenty-four hours, we had somewhere between
twelve hundred and fifteen hundred registrants."
Facebook

Shortly after their launch the buzz about Facebook grew and eventually they got discovered by
Sean Parker (the former co-founder of Napster) who began to advise informally. By June 2004,
Facebook received it's first private investment from Peter Theil, the founder of PayPal, for
$500,000 in exchange for 10.2% of the company. Sean Parker also became president then of
the newly incorporated Facebook. They continually rolled Facebook out across college
campuses and by December 30, 2004 over one million members were registered!

Acquisitions

Facebook's domination continued to grow until it became the 2nd most visited web property
online. In August 2009, Facebook acquired the real-time news aggregator site FriendFeed. And
then in April of 2012, Facebook made a huge splash in the market by acquiring Instagram for
approximately $1 billion dollars.

IPO

Facebook officially filed for an intitial public offering (IPO) on Februaury 1, 2012. The
preliminary prospectus declared that Facebook was seeking to raise $5 billion in investment
capital. At the time, the company announced having 845 million active users and its website
had over 2.7 billion daily likes and comments. After the IPO, Zuckerberg would retain a 22%
ownership stake in Facebook with 57% of the voting shares. The underwriters of the IPO valued
the shares at $38 each, pricing the company at $104 billion, the largest valuation ever to date
for a new company going public.

Facebook Graph Search

In January of 2013, Facebook introduced Graph Search to help users find out more about what
they're looking for based on their friends and connections. This feature lets you search through
data shared by friends to discover new people and interests, restaurants, music and much
more. This is the first major step Facebook has taken towards competing with Google in search,
and they have a wealth of our social data that can be explored.
Internal Issues
Vision
"To stay connected with friends and family, to discover whats going on in the world, and to
share and express what matters to them."

Mission
"To give people the power to share and make the world more open and connected."

Organizational Structure
 Board of Directors

Mark Zuckerberg Founder, Chairman and CEO, Facebook

Marc Andreessen Co-founder and General Partner, Andreessen Horowitz
Susan Desmond-Hellmann CEO, Bill and Melinda Gates Foundation
Reed Hastings Chairman and CEO, Netflix
Erskine Bowles President Emeritus, the University of North Carolina
Peter Thiel Partner, Founders Fund
Sheryl Sandberg COO, Facebook
Jan Koum Founder and CEO, WhatsApp

Key Result Area

Goal (KRA) Category Definition and Measures

Improve Learning & to ensure that all sales executives meet/exceed

Performance of Growth the sales targets provided to them. Also, to
Sales Executives track the performance of the sales team and
guide them.
Target: US$ 500,000 per quarter for the whole
team

Development of Sales Customer to conduct market research, develop sales

Action Plans plans; and update periodically based on
changing market scenarios and insights from
the previous quarters. Also, sales plan must be
reported every quarter to the management
team for analysis and approval.
Target: Review, update, management approvals
on a quarterly basis.

Management Reporting Internal Business Create and send accurate monthly reports. The
on Sales Performance Process reports should indicate the following:

Plan vs. achieved

Reasons for any shortfalls
SWOT analysis
Target for the next few month

Customer Engagement
Create and Submit Proposals
and Responses to RFQs
Adherence to
Company Policy
Target: Reports to be submitted by 7th of every
month for the previous month
Customer To ensure that customers are happy with our
services and their needs are being met. Also, to
meet customers, get their feedback on a
customer feedback form and discuss the
insights at quarterly management meetings.
Target: 3 customer meetings and feedback
insights every month
Customer Reply to request for proposals, tender notices,
and price quotations; in a timely manner. Also,
submit documents on competitive analysis,
budgeting, expected closure price and customer
details in a separate customer profile document
Target: All Proposals to be submitted for
management review at least 3 days prior to due
date
Internal Business To ensure that the company policies are
Process followed by all your team members. Also, that
the following activities are carried out as per
the assigned SLA:
Application for leave and its approval within
3 days
Filling in the travel sheets with approvals
from you
Submission of expense reimbursements
within 5 days of completion of travel
Nominations for rewards on quarterly basis
Nominations for training half yearly basis
Target: As per SLA in the company policy
document
 Facebook SWOT analysis
Strengths

1. Facebook is an undisputed market leader in the global scale in online social networking
segment. Facebook has more than 1.13 billion daily active users and 1.03 billion mobile daily
active users and about 84.5 per cent of daily active users are outside the US and Canada.[1] As
it is illustrated in Figure 2 below, the numbers of active users of the social networking sites has
been consistently increasing during the past three years to reach more than 1.59 billion by the
end of 2015. The current market leadership of the company is a considerable strength from
multiple points of view.

Facebook monthly active users (in millions)[2]

2. Despite his much younger age compared to many other CEOs, Mark Zuckerberg is a proven
and effective business leader who exercises visionary leadership style in an efficient manner.
Mr. Zuckerberg has been able to exercises exceptional decisiveness and beat pessimistic views
about Facebook in multiple occasions. For example, the purchase of Instagram for a massive
USD 1 billion initiated by Mr. Zuckerberg in 2012 was seen by many analysts and investors as
unjustifiably risky at the time. However, less than four years later Instagram was valued at USD
35 billion and Facebook stock nearly tripled[3], as a proof of Zuckerbergs business acumen and
decisive leadership. This is one of the major strengths associated with Facebook.

3. Efficient capitalization on mobile advertising taking into account the growing shift from PCs
and laptops into mobile devices is a strength that is set to benefit Facebook for long-term
perspective. During the second quarter of 2016 the companys sales amounted to USD 6.44
billion, an increase of 59 per cent compared to same period of the last year. Importantly,
mobile advertisement constituted approximately 84 per cent of the above revenue. Moreover,
the company has identified video as the next popular medium for users to express themselves
in social networking sites and it is exploring the ways of increasing the efficiency of
monetization on videos.

4. Facebook is becoming a source of news for increasing numbers of users in the global scale.
According to findings of a study by Reuters Institute for the Study of Journalism, that involved
26 countries, people are increasingly heading to social media such asFacebookfor news, making
it more difficult for publishers to attract and make money from readers. Moreover, the same
study found that Facebook is by far the dominant social media news source with 44% of those
surveyed using it to find, read, watch, share or comment on news each week.[4] Increasing
popularity of Facebook as the main source of news among the population has immense positive
implications on its long-term growth prospects.
Weaknesses

1. Advertising remains to be almost the only source of Facebook revenues. Specifically, For
2015, 2014, and 2013, advertising accounted for 95%, 92% and 89%, respectively, of the
companys revenues.[5] Such an extensive dependence on advertising makes the business
vulnerable to changes in advertising practices and trends, reduction of marketing budget of
companies and others. The absence of its own products, physical or digital as a source of
revenues is one of Facebooks major weaknesses.

2. Difficulties in sustaining impressive growth rate of our revenue is another noteworthy

weakness associated with Facebook. The revenue growth rate declined from 58% from 2013 to
2014 and to 44% from 2014 to 2015[6] and it is not difficult to see why. As discussed above,
advertising is almost the only source of the companys revenues and advertising in text,
banners and other formats can be integrated into the site only to a certain extent. Therefore, it
can be argued that despite the growing numbers of its users, unless Facebook diversifies the
sources of its revenues, the decline of revenue growth rate is expected to persist in the future

Facebook business strategy integrates the following four principles:

1. Extensive and continuous focus on user experience. Facebook did not have a first mover
advantage in online social networking segment, as it was launched after Friendster and
MySpace. Nevertheless, an uncompromised approach on user experience and an adequate
balance between standardization and customization of the website resulted Facebook
becoming the most popular social networking site within a matter of a couple of years.

2. Growth via acquisitions. Facebook business strategy focuses on establishing presence in

various branches of e-commerce via acquiring relevant businesses. In 2014, the company
purchased Oculus VR, Inc. (Oculus), a company developing virtual reality technology and
WhatsApp Inc. (WhatsApp) messenger application for mobile devices. Earlier in 2012, Facebook
bought Instagram a popular photo-sharing application for USD 1 billion cash and stock.[1]

In 2015 the company generated revenues of USD17.93 billion, which is an increase of 44% year-
over-year and ad revenue was of USD17.08 billion, which is an increase of 49% compared to the
previous year.[2] Solid financial position that can enable more strategic acquisitions in the
future is one of the key sources of Facebook competitive advantage.

3. New product development. Development of new products and services is placed at the core
of Facebook business strategy with positive implications on the numbers of its user base.
Currently, Facebook product portfolio includes Profile, News Feed, Messenger, Groups, Events,
Video, Photos, Search, Pages, Instagram and others. The ability to develop new products and
services according to its mission statement to give people the power to share and make the
world more open and connected[3] is one of the key competitive advantages of Facebook.

4. Continuously exploring new ways of monetization. Facebook constantly experiments with

different strategies finding and utilizing news ways of monetization in a regular manner.
Recently, mobile user monetization proved to be an effective move in terms of revenue
maximization, increasing Facebook advertising revenues by 63 per cent (year-over-year) to USD
6.2 billion in the second quarter of 2016
http://www.socialmediatoday.com/content/ultimate-history-facebook-infographic
http://research-methodology.net/facebook-organizational-structure-hybrid-of-hierarchical-
and-divisional-organizational-structures/