Facebook Inc. is a social media company which was developed by Mark Zuckerberg, whom till to date is the chief executive officer. The history of this company can be traced back in 2003, when Zuckerberg was at Harvard University (Rothaermel & Taylor, 2014). However, Facebook was officially opened on February 2004, and at time it was referred as The Facebook (but later the ‘The” was dropped). Apparently, after it was launched, this company continued to gain clients not only in the United States, but also in other developing and developed countries. Since its inception, this website has been widely developed especially with the incorporation of additional services such as video calling, group chat, notification icon in such a way that in case of friend happens to chat, like or comment on one`s photo, he or she is notified immediately. The business model for this company entails three pillars, which are not limited to graph search, timeline, and news feed. In addition, the Facebook Inc. has been generating huge revenues from the commercial adverts from various individuals and organizations, making it to be among the best performing companies across the globe. However, this company is facing stiff competition from a number of social platforms such as twitter, skype, WhatsApp and Google. this paper entail an analysis of the case facts and root causes of problems within Facebook, decision making, action planning, and measures of evaluating its better performance.
One of the major challenges that is facing Facebook entails poor management practices. Precisely, Zuckerberg, is young and unexperienced especially when it comes to managing a global company, and this is making Facebook to face stiff competition from the immediate competitors such as Google. Though Zuckerberg has been hailed as one of the most innovative person especially in the technological world, he does not have adequate experience in the management field, and considering that he is the chief executive officer of Facebook, it means that management issues can be part of this company.
For example, following Facebook`s Initial Public Offering (Facebook IPO) which was made on 18th May, 2012, the management of this website changed the value of the IPO price severally b