whether Facebook is successful

 whether Facebook is successful

The organization are established with the primary objective of generating profits. The realization of higher profits margins requires the company to have stringent internal controls. The tools that will be used to gauge whether Facebook is successful they include its liquidity positions, profitability margins and the level of customer satisfaction. The company reported revenue worth $16.9billion during one quarter of 2019. This indicated that the company had sufficient finances to finance its operations and honour its obligation when they fall due. The management of Facebook had embraced efficient mechanisms of management to aid in yielding of these results in the competitive environment (Al-Hussami & Hammad, 2018). Facebook is currently focusing on improving its customer’s experience by ensuring that customers’ accounts are secure. The company ensures that the customer’s information is secure from any form of breach. The common breach of information usually emanate from malware invasion and hacking by the cybercriminal. These malicious activities they usually pose threats to customers information, and hence it has the potential of reducing customers usage of Facebook and their other products such as WhatsApp and Instagram’s. The other factors that determine Facebook to be a successful company are its innovativeness (Al-Hussami & Hammad, 2018). Innovative organization are classified to be prosperous in a competitive environment. This is because of innovativeness results in broadening of the company market share in the competitive environment. Innovativeness results in serving the customers’ needs and wants in an efficient manner.

Facebook company has been innovative since it has introduced, offline messaging’s, it has integrated Facebook with other application such as WhatsApp whereby your share status both in WhatsApp and in Facebooks. The company has also included ads in the applications that have enabled to serve the customers’ needs effectively (Gunasekera & Chong, 2018). Facebook has involved in corporate social responsibility initiatives such as the green movement. These activities are vital since they contribute towards conserving of the environment and curbing environmental degradations. This, therefore, indicates that the company is responsible and accountable to its actions, i.e. it abides by ethical stipulated standards. The ethical standards require the company to do the right things and avoid engaging in wrong dealings (Gunasekera & Chong, 2018). This has resulted in the improvement of the company productivity and performance in the competitive environment, thus resulting in company gaining competitive advantage and benefiting from economies of scales.

Economies of scale arise when the company embrace efficient methods of delivering its products and services to the target customers. Facebook is the leading company in terms of digital marketing. Digital marketing focuses on creating awareness of the organization via the use of social media such as Facebooks (Gunasekera & Chong, 2018). This has resulted in the company gaining higher revenues related to digital marketing, thus indicating the company is successful. The table indicates the performance of Facebook for the year ended in December 2017 and 2018.

Particulars

Million $ (2018)

Million $ (2017)

Revenues

$55013

$39942

$$$ income from operations

$24913

$20203

Net income

$22112

$15934

Q2

Ethical companies refer to those companies that embrace ethical standards and code of conducts. The organization are required to abide by principles of honesty and integrity during their operations. The organization should refrain any wrongdoings and do what is right. This is important since it contributes towards the building of the organization image in the competitive environment. The companies that embrace ethical standards and principles are usually rewarded with satisfied customers as well as employees. This is imperative since it contributes towards the attainment of higher performance for the organization (Kang & Stewart, 2011). The tools that are used to gauge whether the company is ethical; they include leaderships, the company that embraces best leadership are deemed to be ethical. Effective leadership is vital in curbing the challenge of conflict of interest within the company. Abiding to the laws of states, the company that is compliant to the law of state are deemed ethical. The companies are required to abide by following laws, health and safety laws, competitions laws and tax laws.

Compliance to the law is vital since it contributes towards minimization litigations issues which are costly to the company, and they result in draining of the company profit margins. Example of noncompliance to the law they include tax evasion or fraudulent transactions among others. These activities usually result in tainting of the organization image in the competitive environment. Noncompliance to the law can result in a certificate of operation revocation and the company being fined heavily by the legal enforcing entities (Singh & Wood, 2018). The other mechanisms that are utilized to gauge whether the organization is ethical are its engagement in corporate social responsibility initiatives. Compliance to CSR initiative means that the organization is in a position to serve the needs of all its stakeholders in the right manners. The stakeholders are categorized into two major categories. The external and internal stakeholders. The company should ensure that the needs of these stakeholders are served effectively. This is important since it contributes towards the building of the organization images as well as attainment of its strategic goals (Singh & Wood, 2018). Strategic goals are imperative since they offer the right directions to the organization towards the attainment of its set targets.

Q5

Facebook is deemed to be among the ethical company. This is because the company embraces the ethical code of conducts, and it refrains from any form of wrongdoings. Abiding by ethical principles has enabled the company to succeed in the competitive environment, thus resulting in the company commanding a higher market share. The company ensure its embraces integrity, justice and accountability principle in all its operations. The company is highly committed to excelling in all ethical standards (Arnaudov & Koseska, 2012). The company has been involved in the green movement, which focuses on taking care of the ecosystem. This is vital since it contributed to resolving the challenge of global warming, which causes the depletion of the ozone layers. The active participation of the company towards environmental conservation has contributed to the minimization of environmental degradation.

The company complies with the governing laws of the states has resulted in the company being deemed ethical. The company ensure publication of its financial statement, which comprises of the balance sheets, cash flow projection, income statement and statement of equity. The publication is as per the stipulated legal framework that governs the operations of the companies. The income statement is vital since it shows whether the company is operating in a profitable manner, while balance sheet indicates the financial positions of the company in the competitive environment while cash flows indicate the inflows and outflow of cash within the company (Arnaudov & Koseska, 2012). A financial statement is essential since they assist the investors in making of investment decision. The company also ensure it remits the relevant taxes to the states while refraining from an engagement of tax evasions. Compliance to the legal framework has resulted in the improvement of the company financial health and stability in the competitive environment. This has enabled the company to continue with its operations as a going concern. Going stipulates that the business will continue with its operations in the foreseeable future. This is essential since it enables the management of the company to be strategic enough and formulate viable strategies. The strategies are critical since they will guide the company towards the realization of the primary objectives. The primary objective they include profit maximization goals and meeting of stakeholder expectation (Burford & Hoover, 2016). Facebook Company has been achieving these objectives, which have indicated that the company is ethical. Compliance to ethical principles by Facebook has resulted in the improvement of their customer experience in the competitive environment.