...Today I will talk about Facebook; it’s a very topical subject particularly since Facebook submit paperwork to regulators for an IPO, 1 month ago. But let’s start with a little part of history * Histoire «From Harvard dorm room to all Canadian and US University : Mark Zuckerberg, 28, founded Facebook while studying psychology at Harvard University. Zuckerberg had already developed a number of social-networking websites for fellow students, including Facemash, where you could rate people's attractiveness. In February 2004 Zuckerberg launched "The Facebook” with the help of Eduardo Saverin (business aspects), Dustin Moskovitz (programmer), Andrew McCollum (graphic artist). Within 24 hours, 1,200(one thousand two hundred) Harvard students had signed up, and after one month, over half of the undergraduate population had a profile. In March 2004, Facebook expanded to Stanford, Columbia, and Yale. It soon opened to the other Ivy League schools, Boston University, New York University, MIT, and gradually most universities in Canada and the United States. Facebook was then opened on September, 2006, to everyone of age 13 and older with a valid email address. * Chiffres clé As of February 2012, Facebook has more than 845 million active users and in average Facebook’s user increase by 100(one hundred) million each 120 (one hundred twenty) days. Facebook it’s 1 of every 5 of all page views on Internet. It’s 250 (two hundred fifty) million photos uploaded daily, 78 different languages...
Words: 839 - Pages: 4
...Is Skype worth $8.5 billion? An exercise in valuing young, growth companies Posted by Aswath Damodaran Wednesday, May 18, 2011 Last week, Microsoft announced that it would buy Skype for $8.5 billion. The reaction was fast, furious and very predictable. First, there was the search for reasons for the deal and technology mavens listed a few. Second, there was the reaction from investors and analysts, which was generally not very positive. Third, it was noted that Bill Gates, the face of Microsoft for so long, was strongly in favor of the deal (thus providing cover for Steve Ballmer). Ultimately, though, the discussion of the deal was lacking in one key respect: Is Skype worth $8.5 billion to Microsoft? A few of the analysts noted that the price paid was roughly ten times Skype's revenues in 2010, an undoubtedly rich price, but by itself proving nothing. After all, if you had been able to buy into Google at ten times revenues in 2003, you would be rich now. A great deal of attention was paid to whether Skype was the right company for Microsoft to buy and the strategic/synergistic fit of the two companies. It has always been my contention with acquisitions that it is not the strategic fit or synergistic stories that make the difference between a good deal and a bad one, but whether you buy a company at the right price. Put in more direct terms, buying a company that is a poor strategic fit at a low price is vastly preferable to buying a company that fits like a glove at the wrong...
Words: 1443 - Pages: 6
...Company Background In 2004, a Harvard student, Mark Zuckerberg, launched a new social media platform called “The Facebook”. Zuckerberg had already created a number of social media websites including Coursematch and Facemash, but wanted to create a new social media platform that had a sense of “exclusivity”. Zuckerberg launched the website with exclusivity for Harvard students – The Facebook required you had a Harvard.edu email in order to register. Soon after the launch and its growing popularity, the social network expanded to other Boston and Ivy League Universities. Later in 2005, The Facebook would change its name and website to “Facebook” and allow students with any high school or college email to register, including high schools and colleges in the UK. In the fall of 2006, Facebook would scrap their education-only email registry, and allow anyone over 13 years of age with a registered email address to join Facebook. The company’s reach would include over 2,000 colleges and 25,000 high schools throughout the United States, Canada, Mexico, the United Kingdom, Australia, New Zealand, and Ireland. Moving into 2008, Facebook recognized the need for international headquarters to support the rapid growth of the company. They would soon set up their international headquarters in Dublin, Ireland, and begin testing and hiring several computer and software engineers in order to meet the bandwidth and internet traffics of an international online company. Facebook’s user growth would...
Words: 1062 - Pages: 5
...Twitter was launched by Jack Dorsey, Evan Williams, Biz Stone, and Noah Glass on July 15, 2006. The website handles nearly 1.6 billion searches a day and as of July 2014 it had more than 500 million users for the website. Jack Dorsey is the chairman and Dick Costolo is the CEO of the company. Some of Twitter’s biggest competitors are Facebook (FB), Google (GOOG), and LinkedIn (LNKD). Twitter currently has a market cap of 24.06 Billion while competitors Facebook and Google have market caps of 212.88 billion and 356.32 billion respectively. One article on ektron.com speaks of why Twitter is better than Facebook is that Twitter allows for user to follow complete strangers. While this sounds like something most people would defer from this gives Celebrities, Actors, Athletes, and even different businesses to stay close to their fans and customers. This also gives users to feeling of being close friends with celebrities while also sharing different pictures and other types of media. This differs from Facebook where it is suggested that you only become friends with people you know. Although their often fan pages for different celebrities on Facebook it is often ran by someone else other than the actual celebrity. Twitter has also helped with platforms such as political campaigns. President Barack Obama used social media heavily in both of his presidential campaigns even holding the first presidential Twitter town hall meeting on...
Words: 1156 - Pages: 5
...For the exclusive use of L. Wang, 2016. W12453 FACEBOOK, INC: THE INITIAL PUBLIC OFFERING (A) 1 Ken Mark wrote this case under the supervision of Professors Deborah Compeau, Craig Dunbar and Michael R. King solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2014-03-13 INTRODUCTION “The entire market is waiting for the emergence of Facebook as a publicly traded company,” said Jonathan McNeil, lead analyst at CXTechnology Fund (CXT), as he spoke to the fund’s investment committee on May 16, 2012. The highly anticipated pricing of the Facebook initial public offering (IPO) was underway, and in three hours, McNeil was scheduled to provide the lead underwriter, Morgan Stanley, with CXT’s final indication...
Words: 7400 - Pages: 30
...see people constantly posting on Twitter, Facebook, and Instagram. Some think that these media outlets unite people together, but I’m beginning to think the contrary is closer to the truth. It’s common to see multiple people in a room glued to their phones instead of actually engaging with each other. In this paper, I will investigate why people have developed an obsession with social media, how social media creates a false reality, and how social media can be harmful to our mental health. There are a variety of reasons why people have developed an obsession with social media, making it harder to cut ties with it. According to the article Technology Addiction in Adolescents by Vivek Agarwal and Sujit Kumar Kar, “Companies making mobile phones, made them compatible for other technologies like – games, videos, internet browsing and many other applications which facilitate their wide circulation and making them more addicting objects” (pg. 171). When people have constant internet access through their smart phones, it makes it extremely difficult to avoid social media. Smart phones usually vibrate or make a noise when you get a Facebook or Twitter notification, which can increase your likelihood of checking the application. Along with constant internet access, excessive social media use has been linked with a need for social interaction. According to the study Social Competence and Psychological Vulnerability as Predictors of Facebook Addiction, people who are unhappy with their...
Words: 1717 - Pages: 7
...effect of relatedness on Facebook use and self-esteem Abellera, Nadine Angeli C. Department of Psychology, Xavier University-Ateneo de Cagayan, Cagayan de Oro, Philippines (nacabellera@gmail.com) ISSN: 2243-7781 Online ISSN: 2243-779X Ouano, Jerome A. Department of Psychology, Xavier University-Ateneo de Cagayan, Cagayan de Oro, Philippines (ouano_j@yahoo.com) Conway, Gail D. Department of Psychology, Xavier University-Ateneo de Cagayan, Cagayan de Oro, Philippines (gee.delapaz@yahoo.com) Camilotes, Liza Mae C. Department of Psychology, Xavier University-Ateneo de Cagayan, Cagayan de Oro, Philippines (lizamaec@gmail.com) Doctor, Hannah Mae L. Department of Psychology, Xavier University-Ateneo de Cagayan, Cagayan de Oro, Philippines (misshannahdoctor@yahoo.com) Received: 10 November 2012 Available Online: 30 December 2012 Revised: 15 December 2012 DOI: 10.5861/ijrsp.2012.298 Accepted: 22 December 2012 Abstract Facebook, a popular social networking site, can serve as a venue for the enhancement of self-esteem. Why this happens remains unclear. Drawing from Positive Psychology and Self-Determination Theory, the present study investigated the effect of Facebook use on self-esteem as mediated by relatedness. Employing a cross-sectional non-experimental design, the mediation hypothesis was tested among 467 college students who agreed to answer the questionnaires. From the results of multiple hierarchical regressions, it was found out that Facebook use did not have a direct...
Words: 3008 - Pages: 13
...1. How does Facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies? At the time of the IPO, Facebook possessed two revenue streams: advertising ($3.145B in 2011) and payments ($0.555B in 2011). The advertising business delivered ads to Facebooks users. Users uploaded an incredible wealth of information to Facebook, including their authentic identities, interests, and social connections, allowing advertisers to target their ads to an unprecedented degree. Further, all user uploaded information became the property of Facebook, granting them a monopoly on the data. This hyper-focused approach contrasted with those of other major technology driven advertising firms, like Google, whose value proposition is the ability to reach a significant percentage of all consumers using the internet. Facebook’s other revenue driver, online payments, consisted of in-game purchases of virtual goods for social games. In 2011, all of this revenue was generated via Zynga games. This business relied upon consumers using Facebook as their home for socially-connected online gaming. Given that payments represented a small portion of Facebook’s revenue, and that the advertising business was at the time more developed and predictable, valuing the company as an advertising company rather than a hybrid advertising and payments company seems appropriate. The comparative advantage of Facebook relative to other...
Words: 2160 - Pages: 9
...using it expect to start marketing through social media. (Inc., 2011) We are living in a world where technology is changing the way we live, entertain, communicate, interact and more so than ever before the way we do business. The most effective way that companies are promoting and marketing their business today is by means of social media. Social media is a great way to drive repeated business and to attract new customers. Social networks, like Facebook, Twitter, LinkedIn, and Pinterest are the places where social interactions occur more rapidly. In this article we will examine one of the world’s largest and well known social media that is used worldwide to promote and market their business, Facebook. We will look at the more suitable ADR that can be used to address issues that may arise. We will further analyze how the federal government controls the consumer transactions. This paper will further examine the agency relationship for utilizing Facebook for advertising. In conclusion we will look at the overall use and effect of using Facebook as a marketing medium. As social media continues to change and grow, more and more businesses are realizing how powerful social media marketing can be to their growth and development. Since there are billions of people who use social media, connecting those users to your business offers limitless possibilities. It’s more important than ever to establish social media strategies. (Duermyer, 2013). Since each social...
Words: 2457 - Pages: 10
...Question 1 Katz has identified 3 general skills with relation to management namely conceptual skills, human skills and technical skills (Daft, 2010). Mark Zuckerberg as a Chief Executive Officer(CEO) has conceptual skills because he can plan for the present and the future. Zuckerberg’s decision to partner with Microsoft in an advertising deal in 2006 within the United States and subsequently internationally in 2011 has allowed Facebook to continue to grow as a technological company (Stone, 2007). Zuckerberg has also incorporated the Bing search engine within Facebook as a step to ensure Facebook’s sustainability as users can perceive Facebook as more than just a regular social networking site (Bolm, n.d.). According to Bolm (n.d.), Bing says that a huge portion of society refer to their friends before making the decision to purchase things and this phenomenon is known as the “Friend Effect”. He acknowledges that to achieve success, one must be able to work with people as well as through them. Zuckerberg management style of having a flexible workplace demonstrates his human skills as a manager (Yulianto, 2011). His ability to lead, motivate, increase and realize the potential of his employees is seen as crucial skills for a manager. The Hackathon that Zuckerberg organizes within his company allows critical as well as creative thinking. It promotes co-operation and helps build team spirit and better social connections within employees not only with themselves but as well as with...
Words: 2830 - Pages: 12
...Technology and Communities of Knowledge (Digital essay) Children of today are growing up surrounded by social networking through blogging, instant messaging, and short message services such as Facebook, Tumblr and Twitter enabling children in which they produce, share, and sometimes exchange ideas over the internet and in virtual communities, it has become a virtual aspect of their lives. These sites have a significant impact on the lives of children. Social networking is transforming the manner in which young people interact with their parents, peers, as well as how they make use of technology. Clearly there are positives with the use of social networking involving a great way to communicate and learn, however unfortunately negative effects on the youth also, a major risk associated with social networking is cyberbullying. Without children having a correct understanding of the inherent dangers that are associated with social networking sites children are at more risk every day. The effects of social networking are twofold.It is inevitable to ignore the fact that nowadays social networking plays an essential role in children’s lives with social networking and other related online communication activities comprised 64 per cent of young people’s total internet time (an average of 49 minutes per day on these activities, (AMCA, 2007). One may ask how spending all that time on the social media sites may have a positive impact on them. Well, social media helps the youth keep...
Words: 1462 - Pages: 6
...Activists call for closure of No. 2 nuke power plant TAIPEI--Environmental groups staged a protest yesterday to urge the government to shut down the No. 2 nuclear power plant in northern Taiwan, citing concerns about the safety of the plant. The protesters gathered outside the Legislature, calling for the government to review the operations of the 30-year-old plant in Wanli, New Taipei City. They pointed out that in a routine safety check on March 16, the state-run Taiwan Power Co. (Taipower) found that one of 120 bolts that anchor the plant's No. 1 reactor to its concrete base had broken and six others had cracked. Taipower recently applied to resume operations of the No. 1 reactor after replacing some parts and carrying out other safety checks. But the environmental groups said the cracks in the bolts indicated deterioration of the nuclear power plant's structure, operating systems, parts and components. Allowing continued operation of the aging plant would jeopardize public safety. At a recent public hearing on the matter, Tsuei Su-hsin, secretary-general of Green Citizen Action's Alliance, said the decision to resume operations was not transparent. Forecasts for slow growth in China, worries over Greece bailout take toll on markets HONG KONG--World stock markets sank Tuesday over worries about slower economic growth in China and a possible snag in the deal for Greece to get its bailout money. In early European trading, Germany's DAX was down 0.4 percent at 6,835...
Words: 7711 - Pages: 31
...ELEVENTH EDITION Management LEADING & COLLABORATING IN A COMPETITIVE WORLD Thomas S. Bateman McIntire School of Commerce University of Virginia Scott A. Snell Darden Graduate School of Business University of Virginia MANAGEMENT: LEADING & COLLABORATING IN A COMPETITIVE WORLD, ELEVENTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2011, and 2009. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 ISBN 978-0-07-786254-1 MHID 0-07-786254-6 Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Michael Ablassmeir Executive Director of Development: Ann Torbert Senior Development Editor: Laura Griffin Digital Product Analyst: Kerry Shanahan Marketing Manager: Elizabeth Trepkowski ...
Words: 87010 - Pages: 349
...part of the Molson Coors Brewing Company which holds the fourth largest amount of market share globally (Qureshi, 2008, p.1). In 2007 when firms were just starting to see Facebook and other social networking sites, like Twitter, as valuable places to market to consumers and communicate with them, Molson also decided to create a Facebook account to connect with consumers and increase brand awareness. One of the first promotional activities Molson established using its Facebook account was a contest called “Cold Shot” which was targeted at Canadian college aged students between the ages of 19 and 24. This contest was set up to be a competition between Canadian colleges, awarding the title of “number one party school in Canada” to the college with the most pictures posted by students while also giving a spring break trip to the student from that winning school who submitted the best picture (Qureshi, 2008, p. 5). Molson had to pull the promotion, though, because many administrators and other students from the various colleges were not happy with the contest since they thought that it not only gave their schools a bad image, but they also saw it as Molson encouraging irresponsible behavior and underage drinking. Therefore, Molson’s problem is to determine if it should continue to use social media, like Facebook, when marketing its brand, and if it does choose to continue, how the company will use these sites to promote its brand in the future. Another issue this company is facing...
Words: 3298 - Pages: 14
...Stephanie Miller English 1020 11/26/13 Research essay Your life is busy and you try to keep up with your family and friends. What better way than social media? Most people use things like Facebook, twitter, Myspace, emails, and Skype. When your single and looking to date or a way to meet new people you also use social media, such as eHarmony, match or other dating sites. Social media has made it very easy, and plays a big role in our lives every day, but does it affect your personal relationships? How did the world communicate before cell phones, internet, and e-mail? We used a land line to call people if we wanted to talk. We used the postal services and sent thing though the mail. If something was really important we faxed documents. If you wanted to meet new people you went out and socialized. Many decades of people communicated and had relationships without social media. Before social media if you wanted a job you went out and went job hunting. Now if you want a job you just pick up the computer and look at sites online. You fill out applications on line and wait for the phone calls. The new age of social media has made socializing very easy, but do you really know who is on the other end of the message you just sent? Social media is a new way to get information from people and use it for other things. You have been talking to this guy for six months, and you believe that you are in love. Now this guy is asking you to send him money, so you send him some money just...
Words: 2694 - Pages: 11
