MBA501 Stakeholder Strategy development and Portfolio Analysis Assignment Solved

Page 1 Kaplan Business School Assessment Outline
Assessment 2 Information

Subject Code: MBA501
Subject Name: Dynamic Strategy and Disruptive Innovation
Assessment Title: Stakeholder Strategy development and Portfolio Analysis
Assessment Type: Presentation – 30 slides
Weighting: 40 %
Total Marks: 40
Submission: Turnitin
Due Date: Week 9

Assignment Part 1 (20 marks): Stakeholder Strategy Development
Identify the generic strategy programs available for the four stakeholders of Facebook identified
in Assignment 1. You are to provide recommendations on most suitable strategy approach for
each stakeholder type and discuss implementation.
Assignment Part 2 (20 marks): Portfolio Analysis
You are required to review an organisation case study including statistical information on
business unit performance and current market conditions. You are to conduct a Portfolio
analysis based on BCG matrix, GE-McKinsey matrix, and Synergy matrix. The case study to
be shared among students in week 7.
Assessment Description
Part 1: Stakeholder Strategy Development
A. Generic Strategy Programs
Based on week four workshop discussions, analyse the generic strategy programs
available for each stakeholder type in the context of stakeholder analysis conducted
in assignment 1 for Facebook.
B. Recommended Strategy
Recommend a specific strategic program for each of the four identified stakeholders that are
consistent with one of the generic programs identified in Part 1A.

Page 2 Kaplan Business School Assessment Outline
C. Strategy Implementation
Based on workshop five discussion, analyse different elements of strategy
implementation in the context of recommended strategies identified in Part 1B.
Part B: Portfolio Analysis
A. Business Portfolio Analysis
Based on the case study circulated in week 7, plot each business unit on a BCG matrix,
GE-McKinsey matrix, and Synergy matrix.
B. Business Portfolio Recommendations
Provide recommendations to the organisation for the strategic management of each
business unit with explanations for each recommendation.
Assessment Instructions
o Should not go beyond 30 slides.
o Slide/s should be allocated for references – these slides will not be considered in the
slide count (30).
o Incorporate journal articles, prescribed text, other books, etc. into the analysis.
o Need to use the notes pane to explain the points/ analysis indicated in the slides. The
write up in the notes pane should not exceed 200 words per slide. Use the notes
pane only when it is necessary.
o Important to explore MBA 501 workshop 4,5, and 7 content for this assessment
o For Part B, you are not expected to research the different industries mentioned in the
case study. The focus should be on researching, analysing, and applying portfolio
management and dynamic capability related theories, concepts, and scholarly views.
o A sample slide template (structure and key slides) will be shared with the case study.
o Study the attached assessment rubric carefully.
o Watch the assignment briefing webinar conducted by the Subject Coordinator – refer
subject welcome message from the Coordinator for the date and time.

Page 3 Kaplan Business School Assessment Outline
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the
resources on the MyKBS Academic Success Centre page. Click
here for this information.
Page 4 Kaplan Business School Assessment Outline
Assessment Marking Guide

Criteria Fail below 50% Pass 50% – 64% Credit 65%– 74% Distinction 75%-84% High Distinction over 85%
PART A
Generic strategy
programs
(7.0)
Critical analysis and
engagement of generic
strategy programs
The insufficient
justification for
stakeholder
categorisation. Lack of
discussion about generic
strategy programs.
A basic justification for
stakeholder categorisation.
The categorisation is in line
with the analysis to some
extent. A basic indication of
the generic strategy
programs; insufficient
integration with the case
study company.
Provided enough justification for
stakeholder categorisation. The
categorisation is in line with the
analysis. Engaged literature to
some extent to strengthen the
arguments. Discussed and
integrated the generic strategy
programs to the case study
company. Integrated journal
articles, prescribed text, other
books, verified websites, etc. into
the analysis to some extent.
Provided sound justification for
stakeholder categorisation. Good
analysis of generic strategy options in
the context of the case study
company and engaged literature and
scholarly views to strengthen the
arguments. Integrated journal articles,
prescribed text, other books, verified
websites, etc. into the analysis.
Comprehensive analysis of generic
strategy options in the context of the
case study company. Very good
justification for stakeholder
categorisation and supported the
arguments with scholarly views.
Integrated journal articles,
prescribed text, other books, verified
websites, etc. into the analysis very
well.
PART A
Strategy
Recommendatio
ns
(5.0)
Comprehensive, strategic
and in line with the
stakeholder model
Recommendations are
missing or incomplete
Recommendations are very
general in nature – there is a
disconnect between the
analysis, categorisation and
the recommendations. Either
few or long list without
sufficient justification.
The recommendations are broadly
in line with the stakeholder analysis
and categorisation. Sufficient
justification for the
recommendations and integrated
the generic strategy options
sufficiently. Some research
evident.
Recommendations are in line with the
stakeholder analysis and stakeholder
categorisation. The recommendations
flow from the generic strategy option
analysis. Need to justify further.
Engaged literature when justifying the
recommendations.
Comprehensive recommendations
that cover the chosen stakeholders
well. The recommendations are
entirely in line with the analysis and
categorisation. The
recommendations are emerging
from the generic strategy options
and provided a good justification.
Engaged literature well to justify.
PART A
Strategy
Implementation
(5.0)
Analysis of important
elements in strategy
execution
Insufficient discussion
about strategy
implementation.
Some discussion on strategy
implementation. Basic
engagement of elements
discussed during the course
under strategy
implementation.
Engaged different elements that
come under strategy
implementation sufficiently. Linked
to strategy to some extent but
overall, the coverage of
implementation lacks depth
Linked strategy implementation
related aspects with the chosen
strategy and elements discussed
during the course. The
implementation issues and
recommendations are justified well.
A comprehensive coverage of
different elements discussed under
strategy implementation and
provided relevant recommendations
on implementation in the context of
chosen strategies. Provide literature
support to strengthen the
arguments.
PART B
Business
Portfolio
analysis
(10.0)
Understanding of
concepts and appropriate
plotting of companies
Weak understanding of
portfolio management
related concepts and
incorrect plotting of
companies
Basic understanding of
Portfolio management
concepts. Plotted the
companies correctly to some
extent but the analysis is
incomplete or lacks depth.
Demonstrated an adequate
understanding of portfolio concepts
and sufficient application. Plotted
the companies correctly and
justified the analysis with some
literature integration.
Good understanding of portfolio
management related concepts.
Correctly plotted the companies and
provided an extensive analysis by
justifying and integrating journal
articles, prescribed text, other books,
verified websites, etc.
Demonstrated a very good
understanding of Portfolio
management related concepts.
Comprehensive analysis with a
significant number of scholarly views
and literature integrated into the
analysis.
PART B
Business
Portfolio
recommendation
s
(7.0)
Integration of literature
and justification
Insufficient justification of
recommendations.
Basic recommendations and
insufficient justification. Some
evidence of research.
Sufficient indication of
recommendations. Provided
adequate justification and some
literature support.
Recommendations are in line with
the analysis.
Provided sound justification for the
recommendations. Integrated journal
articles, prescribed text, other books,
verified websites, etc. to some extent.
Comprehensive recommendations
are covering multiple aspects.
Provided very good justification.
Evidence of extensive research and
analysis: journals, prescribed text,
other books, verified websites, etc.

Page 5 Kaplan Business School Assessment Outline

OVERALL
Structure
(Part A: 3)
(Part B: 3)
Adherence to KBS
referencing guidelines and
slide construction skills;
amount of text, logical use
of images, colour
schemes, fonts, use of
slide space, notes pane,
and professional feel to
slides.
No structure to the
assessment. The Slides
are text-heavy, busy, and
audience unfriendly
(colour schemes, fonts,
layout, efficient use of
slide space, etc.). Non
adherence to KBS
referencing guidelines.
Followed KBS referencing
guidelines sufficiently. Slides
are reasonably professional;
somewhat text-heavy, busy
but audience-friendly. Utilised
the notes pane adequately.
Followed KBS referencing
conventions sufficiently. Slides are
good; sufficient amount of text,
used slide space efficiently, colour
schemes, fonts, etc. Utilised the
notes pane adequately.
Good slide construction skills. The
right amount of text supported by
notes in the notes pane. The slide
deck is audience-friendly. Followed
KBS referencing conventions well.
Audience friendly slide deck with
very good slide construction skills.
Utilised slide space effectively and
integrated images, fonts, colour
schemes, etc. in a professional
manner. Followed KBS referencing
guidelines well and used the notes
pane well.

SAMPLE ASSIGNMENT COMPLETED

The Stakeholder Management of Facebook

Introduction

Facebook is the world’s most well-known profound social media website that there is. It has completely changed the way how people around the world interact and communicate with each other. With more than 1.2 billion monthly active users, Facebook is a go-to investment for many stakeholders. As will be mentioned later, this lets stakeholders advertise and share their contents efficiently and rapidly to the population. With social media continually growing, social media networks have a tremendous influence on the way companies engage and build relationships with their stakeholders.

Popular social media networks such as Instagram, Twitter, and Facebook have changed a one-way communication between organizations and stakeholders, to a two-way process communication(Kaya, T., & Bicen, H., 2016). Traditional one-way communication tools only allowed companies to talk to their stakeholders. Social media has introduced two-way communication in the sense that companies have less control over what is being said about them, as the relationship between companies and the population has become an interactive process.

In the early 2000s when social media was just starting out, like any new invention, companies were skeptical at first in adopting online platforms as a way to communicate. But it became clear right away that this was going to be the new wave. As I mentioned before, with social media continually growing, companies keep adapting new various strategies to get their message across to a targeted group. Fortune 500 companies are the most successful companies there are in the world and have used their resources to improve their communication process to meet their goals. Several studies on Fortune 500 companies that show that these companies are continuously implementing online communication strategies to enhance stakeholder relationships. These social media platforms positively impact online relationship as it provides opportunities to build strong connections with their stakeholders. Successfully implementing an online presence strategy gives companies an advantage in the market and helps them to stand out.

The Stakeholder Management of Facebook

While Facebook has been able to strengthen or maintain their relationships with their stakeholders, other companies are having trouble finding the right approach to communicating with their stakeholders through social media. One personal example that has happened to me recently displayed this problem. I have a friend named Luis who is a plastic surgeon, and he went to a conference in Idaho with other plastic surgeons. When he came back from the conference, he told me that the biggest problem other plastic surgeons were having was growing their social media platform. Most of the plastic surgeons that were there were in their 40’s and 50’s, and the majority of them knew how to use the basic features of social media, but not enough to be able to continuously update and grow their social media following(Mhamdi, 2018). My friend Luis actually has a young secretary that’s still in college and has her run all his social media accounts. He suggested to the other doctors that they hire a part-time college student so that they can run their social media accounts. Another plus he added was that you don’t really have to train college students on how to use social media because most of them are already very familiar with it through everyday use. But for those companies that aren’t able to expand their online presence, this means that they are missing out on the potential that these social media sites offer for communication. However, this doesn’t mean that these companies don’t have the resources to have an online following, it just means that they have to use different strategies.

Given that some big retailers such as JCPenney and Macy’s have closed down 206 stores in 2017 due to online shopping becoming more popular, it is almost necessary for companies to adapt so that they can effectively communicate on an online platform to their stakeholders and customers. With that, it is also necessary that companies understand which strategies work best for them to reach their goals, and if they don’t, then consider hiring an employee or small team who is dedicated just for that reason.

Currently, Facebook has around 2.4 billion shares outstanding, all of which are distributed to its users/members, advertisers, employees, governments, and communities. The following is a table with the most significant owners in Facebook with what percent they own as well as the top 8 individuals with the most value in the company.

 

Employees Venture Capitalists Former Employees Corporate Investors
Mark Zuckerberg (24%) Accell (10%) Dustin Moskovitz (6%) Digital Sky (5%)
Jeff Rothschild (.8%) Greylock (1.5%) Eduardo Saverin (5%) Microsoft (1.6%)
David Ebersman (.11%) Meritech (1.5%) Sean Parker (4%) Goldman Sachs (1%)
Mike Schroepfer (.11%) Elevation Partners (1.5%) Chris Hughes (1%) Interpublic (.25%)
Sheryl Sandberg (.1%) WTI (.5%) Matt Cohler (.8%) T. Rowe Price (.25%)
Theodore Ullyot (.1%) Marc Andreessen (.25%) Adam D’Angelo (.8%) Fidelity Investments (.18%)
Andreessen Horowitz (.18%) Owen Van Natta (.8%)
General Atlantic (.1%) Justin Rosenstein (.24%)
Kleiner Perkins (.073%) David Choe (.2%)
Ezra Callahan (.08%)

 

Founder and CEO Mark Zuckerberg who owns 533 million shares; worth around $24 billion dollars.

Jim Breyer, a partner at Accel venture capital firm, owns 201.4 million shares; worth around $8.5 billion dollars.

Dustin Moskovitz, Zuckerberg’s college roommate, owns 133.8 million shares; worth $5.1 billion dollars.

Peter Thiel, the PayPal co-founder, owns 44.7 million shares; worth $2.13 billion dollars.

David Choe, graffiti artist, owns 3.77 million shares; worth $142.9 million dollars.

Marc Andreessen, co-found or Netscape and creator or Mosaic, owns 3.6 million shares’ worth $225 million dollars.

Sheryl Sandberg, Google’s ex-vice president, owns 1.9 million shares; worth 86 million dollars.

Bono, rock musician and lead singer on U2, owns 39.5 million shares; worth 1.5 billion dollars.

Amongst the stakeholders, Facebook’s mission implies that their users/members are their top priority. Facebook’s mission statement says, “to give people the power to build community and bring the world closer together.” Being that Facebook has over one billion monthly active users, its users play the biggest role in determining the popularity and attractiveness of Facebook. Because of this, they create a trickledown effect. For example, if advertisers notice that the number of users on Facebook is high, they are likely to pay for more advertisements to be shown(Miron, E., & Ravid, G., 2015). According to panmore.com, stakeholder users are more interested in the ease of using the app and security/privacy of personal information. Facebook is constantly improving its privacy and security services, and even though there will most likely always be flaws, it shows that they care for their users which satisfies the corporate social responsibility for this group.

Advertisers are where the bulk of Facebook’s income comes from. Because of this, they can directly affect the company’s financial status, so you know they are almost of the same importance as the users. To address corporate social responsibility, Facebook uses automated reporting to minimizing human intervention in the advertising process. Just like the users, Facebook also addresses options for its advertisers in their settings so that they can maximize their efforts by being able to target certain audiences in whatever their advertising. Due to popular demand by the users, Facebook’s user-friendly settings allow people to easily customize their profile to receive notifications or updates from certain companies. Moreover, people are able to interact with companies by either liking, sharing, or commenting on the company’s posts. This is a great way for companies to get feedback as well as expand their presence because people are sharing their posts with other people. Because of the user-friendly options that Facebook gives their advertisers, this addresses the interests of this stakeholder group.

Next up are the employees. Just like the previous two stakeholders, Facebook values its employees because of their contribution to the company, and without them, the company wouldn’t be able to function. The employees play a critical role in being a stakeholder because they develop and improve the social media platform, which helps Facebook to continually evolve and grow. Facebook makes sure that its employees have good benefits and high compensation. Facebook addresses its corporate social responsibility towards employees through competitive human resource policies. An example is that Facebook pays its employees some of the best salaries when compared to other big internet companies. Because of this they are able to attract a large diversity of applicants and are able to choose the best of the best(Plantin, 2018). The process that Facebook goes through to get their employees, as well as show appreciation towards them, satisfies the corporate social responsibility for this stakeholder group.

Coming up on the last two types of stakeholders, governments is number four. It’s important that Facebook complies with this stakeholder group because they are the ones who impose laws and requirements on the social media business. To keep on good terms with the governments worldwide as well as address corporate social responsibility, Facebook, of course, abide by their laws, but also partners up with them and shows support to their communities. An example of this was demonstrated in early 2018, where Facebook gave a total of $10 million dollars to community leaders for services that will “bring people closer together.”

The last group of Facebook’s stakeholder group is the communities. Although they are at the bottom of the priority list for Facebook’s stakeholders, they can influence the perception of its advertisers and users which can affect the company. These communities are interested in how Facebook can help them or what Facebook is doing to help preserve the planet. An example of Facebook addressing this interest group is that back in 2013, Facebook started to use green technology so that they can be eco-friendly to the environment. This shows Facebook’s corporate social responsibility towards this group; however, the social responsibility is weak in satisfying this group because you can never please everybody and it’s hard to please a group that doesn’t care so much about the company but more about how the company can help them.

While everything talked about Facebook so far sounds positive, there have been some negative views and legal issues facing the company. Facebook’s corporate mission is “to give people the power to build community and bring the world closer together.” This new mission statement was implemented in the midst of data privacy and security issues involving Cambridge Analytica and other parties. In early 2017, the company’s corporate mission was “to give people the power to share and make the world more open and connected.” In this regard, the new corporate mission shows that the company now focuses on making its social networking web site an important part of community development.

 

I’m pretty sure we’ve all heard people talk about Facebook releasing private data to other companies. Some argue that they didn’t give Facebook permission to make their personal data available for others, and how is Facebook responding to these people? Below is a timeline of some of the most infamous Facebook issues when it comes to privacy issues.

September 2006 – Facebook debuts News Feed. Nowadays we’re used to news feeds on the platforms Facebook and Twitter, but back in 2006 when it was first released, people saw it as a big deal because they didn’t want the public to be able to view their profile. How did Facebook respond? They simply told its users to “relax.” Eventually, people got used to the News Feed and eventually calmed down.

December 2007 – Facebook’s first big problem with advertising privacy issues. A program called Beacon allowed other companies to track online purchases by Facebook users and then notified their Facebook friends on what they bought without their permission. Facebook’s response: They told users that they could disable the Beacon program in their settings.

June 2013 – a glitch in the mobile version allowed others to see that users contact list when they chose to upload their contact lists. The purpose of uploading the contact list was to help them easily connect with the people saved in their phone. Instead, this contact list would sometimes be made public when it shouldn’t have. Facebook’s response: We are constantly finding and fixing bugs and will “notify people whose information may have been exposed.”

July 2014 – Facebook’s data scientists use mood-manipulation on random users. What these scientists did was select random users and alter their news feed to show either more positive or negative posts. Their reasoning was so that they could study the emotion effects spread throughout social media. Facebook’s response: Nothing, all they did was give a simple apology, nothing more. The results were published in the Proceedings of the National Academy of Sciences.

January 2018 – In May 2018, Europe passed a new strict law, the General Data Protection Regulation, which let companies store their user information and if there happened to be a breach of security, they were required to disclose the breach within 72 hours. Being that this wasn’t in the United States, Facebook had to comply with Europe’s new law and had to adjust their privacy settings for the European sector.

February 2018 – The Belgian court ordered Facebook to stop gathering private information about Belgian users and to stop tracking them. They also ordered Facebook to delete all illegally collected data from Belgian users. Belgium threatened Facebook with a fine of 100 million euros in they didn’t comply. Facebook responded saying that they already comply with the new European data privacy law and said that they would appeal to the court if Belgium kept threatening them.

March 2018 – Facebook revealed that they knew about data theft from other apps that used Facebook data and did nothing about it. Facebook’s response: CEO Mark Zuckerberg came out with a statement and vowed to do more to protect people’s privacy and to only allow other apps access to a user’s name, profile picture, and email.

As you can tell, Facebook’s apologies are very plain. They say sorry only because they have to say something and never mention it again. The reason why they’re like this and why they don’t get into some serious trouble is because of us, the users. When we make an account and agree to the terms and conditions, that none of us read, we give permission to Facebook to use our data and privacy in ways that they want to. In the end, we give them permission to our information and if we don’t agree with their terms and conditions then we simply can’t use their social media platform.

Conclusion

As you can tell, Facebook cares about its users, stakeholder, communities, and provides a great opportunity for every single one of its shareholders to communicate effectively with others. Even though they have run into some legal issues, they handle it pretty well; and things of that nature will always arise from a company as big as they are(Plantin, 2018). From the different opportunities to the ways how Facebook adjusts to their shareholders and address their needs, it’s easy to understand why many investors want to be partnered up with this company. As it was discussed earlier, not every company knows how to effectively use this Facebook feature, but it’s starting to become a necessity so I believe it’s only a matter of time until every business is at least proficient just enough to be able to take advantage of the many features that not only Facebook has to offer, but through all the other social media platforms.

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