EPGDM

1. Executive PostGraduate Diploma in Management
Samrin Khan
Registration No - 2022EPGD05ASB007
Section A
Selection of Multinational Company (MNC) and detailing the MNC Choose a MNC
company - name it and briefly justify your selection ● Broadly classify the chosen
company under - any 3 (three) of these parameters and briefly explain ○ Staffing
Frameworks ○ Outsourcing policy ○ Global Marketing Strategy ○ The type of
organization structure - briefly describe the structure and its advantages ○
Company culture ● Briefly state the difference between horizontal and vertical
integration / alliance ● State the various investment / entry / strategies available
to a MNC and explain any one in detail ● OLI parameters - describe any one ●
State the companies investment strategy in the country through its resource and
institutional based view

2. Answer :
MNC - Meta Platforms, Inc., doing business as Meta and formerly named
Facebook, Inc., and TheFacebook, Inc.,
GLOBAL MARKETING STRATEGY
Mark Zuckerberg and his colleagues developed Facebook in 2004 with the goal of
interacting, connecting, and sharing people's life moments. It made it easier for
individuals to stay current on events throughout the globe. More than 1 billion
people use Facebook every day (DAU).
Over time, it has bought additional well-known social networking sites like
Instagram, WhatsApp, and Oculus to increase its footprint across a variety of
platforms and market niches.
Segmentation, targeting, positioning in the Marketing strategy of Facebook
Facebook combines demographic, regional, and psychographic segmentation
factors to analyse user preferences and engage users in ways that will increase
income.
Due to the size of Facebook's target market, the company uses a distinct targeting
technique to ensure that each specific person receives algorithmically
personalised adverts depending on how they manage their accounts.
It has a value-based positioning strategy and prioritises engaging audiences so
that people can connect with one another and share more.
Mission- “To make the world more open & connected and give power to the
people to stay connected”
Tagline-“Facebook helps you connect and share with the people in your life.”
Competitive edge in Facebook's marketing approach

3. The biggest competitive advantage that Facebook has is its global reach and the
way it has worked with many communities to increase transparency, openness,
and communication amongst people.
A wide range of products and services are offered by Facebook, which has a
number of platforms designed for various client groups and with a variety of uses.
An application like Facebook allows users to communicate with their favourite
companies, people, and icons, publish updates, images, and other activities, etc.
On the Instagram platform, users can post modified images and videos for their
friends and followers to see.
However, the most widely used messaging software, Whatsapp, makes it easy for
everyone to communicate one another and is the quickest method of
communication.
BCG Matrix in Facebook's Marketing Plan
Due to the evident popularity that each product and service has generated since
its beginning, Facebook offers all of them as Stars in the BCG matrix. Facebook
dominates the social network business, but it also faces competition from Twitter
and LinkedIn. The market is still growing at a very good rate, but the global reach
of the Internet is now limiting that expansion. Snapchat is an opponent of
Instagram. But due to its widespread global adoption, Whatsapp is a definite
market leader in the conversation space.
The Facebook marketing strategy's distribution plan
Facebook delivers its services through online channels. In order to effectively
engage users and enhance their overall experience each time they use one of the
many services provided by Facebook, it continuously reorients and adjusts the
platform.
Brand equity in Facebook's marketing approach
Facebook has a much higher following and reputation than the rival businesses
that it competes with. Compared to the products offered by competitors,
Facebook has a high TOMA (top of mind awareness) and positive word of mouth.
In 2016, Facebook's brand is worth $52.6 billion. Unsurprisingly, its valuation has

4. increased by 44% from Facebook's 2015 estimate. This demonstrates how quickly
the Facebook brand is expanding.
Analysis of Facebook's marketing strategy's competitors
Whether a competitor is a company that shares information or a company that
collects information, in either case it will have an impact on the marketers who
make up the majority of Facebook's revenue. Facebook faces competition in each
of the business segments it is present in.
Community ideologies are Facebook's biggest obstacles in some regions due to a
variety of circumstances, including geographic location and workplace culture.
Facebook's marketing strategy includes market research.
Facebook works in a highly competitive market where innovation is the only
strategy that keeps businesses alive. Numerous networking firms, including Skype,
Zomato, SnapChat, and others, are still competing fiercely for market share and
technological innovation.
Customer research is used in Facebook's marketing strategy.
Customers of Facebook are people from various communities and places as well
as businesses that wish to connect with one another and engage in more open
communication. These are the individuals and organisations that share who they
are and what they stand for on Facebook, Instagram, and WhatsApp.
Facebook’s organizational structure
The corporate vision and mission statement of the company, which are translated
to the characteristics of the structure itself, have a significant impact on
Facebook's organisational structure.
Facebook has a matrix organisational structure, unlike the majority of big
businesses. The essential traits of the matrix structure—creativity, innovation,
and the ability to grow and diversify—help to meet the needs of tech-focused
businesses like Facebook.
Facebook's organisational structure may be divided into three categories:
corporate divisions and teams depending on functions

5. Regional divisions
Product groups
Corporate divisions and teams depending on functions
Throughout the organisational structure, Facebook maintains a variety of
corporate departments and teams that oversee crucial business operations. This
is based on the demands of the company as stated in its purpose and corporate
vision statement.
However, because of Facebook's matrix organisational structure, numerous
corporate function-based teams cross over with the business's geographic and
product divisions. For instance, the product divisions' own product marketing
professionals will collaborate closely with the corporate marketing team.
Geographic divisions
Another important component of Facebook's organisational structure is
geographic divisions. To account for the variances in culture and attitudes
towards social media in various regions of the world, the corporation uses four
unique geographic divisions.
Facebook is able to address the disparities in attitudes and actions of its varied
audience as a result. For instance, advertisers in Latin America typically use the
Facebook platform in a different way than those in Europe and North America.
Other operations, like human resources and accounting, are also strategically
managed at a local or regional level as opposed to on a worldwide scale.
Many of Facebook's geographical divisions share management and resources with
function-based teams as a result of the company's usage of a matrix
organisational structure (e.g., marketing, human resources). Four geographic
divisions are included in the Facebook org structure:

6. The Americas
South America
Asia, Europe, and Africa
South Pacific and Asia
A regional management team, which answers to the corporate operations and
executive teams, is in charge of each geographic division.
Product divisions
Facebook's organisational structure includes product divisions even though the
majority of its operations are concentrated on its main social networking service.
This entails corporate and international teams working on operations related to
brands like Instagram or WhatsApp, for example.
Facebook has three product divisions:
Family of Apps (Instagram, WhatsApp, Messenger, etc.)
New Platforms and Infrastructure (AI, virtual/augmented reality, blockchain)
Central Product Services (ads, security, growth)
Why Facebook's organisational structure works
The matrix organisational structure of Facebook enables it to maintain flexibility
and offer multinational operations in a variety of areas.
This is a significant benefit that allows the business the ability to react quickly to
changes and trends in the market. The degree of control the corporate function-
based teams can exert over all global operations while simultaneously upholding

7. a positive culture and allowing the product divisions the freedom to be inventive
and creative is another benefit of Facebook's matrix organisational structure.
However, the matrix structure is not without flaws.
As we previously noted, there are numerous overlaps between various divisions
and teams, and regional management differences might make it challenging to
put company-wide directives into action. But Facebook must be able to make sure
that it can function in a variety of socioeconomic, sociocultural, and political
situations, therefore this is a necessary evil.
Facebook Inc.’s Organizational Culture
The corporate culture of hackers is taken into consideration when Facebook Inc.
develops its human resources. The company's corporate culture helps it remain
competitive in part. Corporate culture, often known as organisational culture,
refers to the beliefs, norms, and traditions that shape employee behaviour. The
corporate culture at Facebook Inc. is evident in how employees approach
difficulties as the company's social networking website, apps, and social media
services develop.
The business also fosters creativity and innovation within its workplace culture to
compete with companies like Google LLC, Twitter Inc., and Snap Inc. (Snapchat).
Facebook Inc., a multinational provider of internet technology, uses its corporate
culture to create a competitive edge and highly skilled human resources. To
continue being effective in handling cultural difficulties related to online market
dynamics, the organisation must continually change its cultural traits.
The corporate culture of Facebook places a strong emphasis on innovation. As the
company diversifies outside its social networking website and apps, this corporate
culture encourages innovation, which is crucial in the social media industry. The
development of Facebook Inc.'s general strategy and focused strategies takes
cultural support for strategic management and implementation into account.
Horizontal Integration vs. Vertical Integration: What's the Difference?
Companies utilise the competitive strategies of horizontal and vertical integration
to strengthen their positions and differentiate themselves from rivals. Both entail
the purchase of other companies as a means of achieving company expansion.

8. These two approaches have significant distinctions, although both can aid in
business expansion. When a company expands by acquiring adjacent businesses,
specifically its rivals, this process is known as horizontal integration. On the other
hand, vertical integration happens when a company takes charge of one or more
stages of production or distribution, owning all the components of the industrial
process.
The main objective of horizontal integration is to expand by acquiring one or
more competitors who operate in the same sector.
Integrating vertically
Vertical integration is a business approach that promotes expansion through the
simplification of processes. When one business buys a manufacturer, vendor,
supplier, distributor, or other associated business in the same sector, this
happens. Companies adopt vertical integration to improve their supply chains,
lower production costs, profit upstream or downstream, or gain access to new
distribution channels.
Selling directly to customers not only boosts the newly acquired operations'
revenues, but vertical integration also ensures production process efficiency and
reduces delivery and transportation delays.
WHAT IS AN INVESTMENT STRATEGY?
Different approaches, or "investment strategies," are used by investment
managers to achieve the goals of their portfolios. They are essential in figuring
out the portfolio's potential risks and rewards in the future.
A portfolio manager may mix and match different styles and strategies depending
on the state of the market.
TYPES OF INVESTMENT STRATEGY
At a high level, the most common strategies for investing are:
Growth investing
Growth investing focuses on selecting companies which are expected to grow at
an above-average rate in the long term, even if the share price appears high.

9. Types of growth investments can include smaller companies, emerging markets,
recovery shares, internet and technology stock.
Value investing
This tactic depends on the market responding to both good and bad news, leading
to significant stock price swings that may not be consistent with a company's
long-term prospects. When a stock's price is low, investors buy it, and when it
rises, they sell it.
Quality investing
The focus of quality investment is on businesses that exhibit exceptional qualities
like the credibility of the management or the stability of the balance sheet.
Growth and value characteristics can both be found in a high-quality portfolio.
Index investing
Index investing, commonly referred to as passive investing, focuses on assembling
a portfolio of securities that is intended to replicate the performance of a market
index. The elements of the chosen index will serve as the sole determinant of the
assets owned by the portfolio.
Buy and hold investing
In order to generate profits, buy and hold investing focuses on buying securities
and holding them for a long time (often many years).
Oli Parameters
Ownership- The competitive advantage that comes with FDI can also be perceived
as the ownership advantage. In this case, ownership might be characterised as the
possession of a special and valuable resource that is difficult to duplicate, giving
the owner a competitive edge over possible foreign rivals.
Due to the fact that the potential investor is not a citizen of the nation in which
the FDI will be made, there are inherent disadvantages or difficulties associated
with FDIs in terms of ownership. The difficulties could arise from, but are not
limited to, potential language hurdles or a lack of understanding of the demand
patterns that are typical of the regional consumer markets.

10. In order to balance out the aforementioned liabilities, businesses and their
management teams typically need to think about the potential for transferring
the competitive advantage to other international markets. A desirable investment
should have significant economies of scale, a solid track record, a well-known
brand name, cutting-edge technology, etc.
Facebook investment strategy in the country through its resource and
institutional based view
The resource-based view (RBV), once a minor theory in strategic management,
has developed into a major one. Since there is a great deal of overlap between
the primary research questions pursued by scholars of international business (IB)
and strategy, it is commonly used by IB scholars. However, compared to other
important viewpoints like the eclectic paradigm, the Uppsala model, and
institutional theory, the usage of RBV in research on multinational enterprise
(MNE) behaviour is still sparse.
This is understandable considering that the RBV was created to explain
performance differences between country-centric corporations with dominating
product businesses rather than huge MNEs with a broad product-geographic
reach. We explain how these restrictions result from a greater range of outcomes
and explanatory factors, several levels of analysis, and the institutional,
institutional, and physical obstacles that are pertinent to MNEs. We go over the
first author's and other IB researchers' use of RBV in MNE research. Next, we offer
recommendations for future research that could make better use of RBV to
analyse MNE performance and sources of competitive advantage across a number
of domains.
A key viewpoint in strategic management today is the institution-based concept
of investment strategy. When providing pertinent responses to the core strategy-
related questions, it takes the institutional dimension into account. The
development of more effective institutional measures is one of the challenges
presented by this perspective.
This essay aims to make a contribution in this regard by providing a thorough
study of the primary institutional measures that earlier works on strategic
management have employed. Our goal is to provide a roadmap that researchers

11. may use to decide how to include the institutional dimension in their empirical
work.
SECTION B:
Selection of the Host Country and detailing its position with respect to Global
business Having chosen the company / MNC and described its characteristics,
now choose the country for the MNC to conduct business. ● Select three
countries which ideally fit the expansion plans. Name the countries and briefly
explain reasons for selection ● Select one of the three countries, name it and
position the chosen under these parameters: ○ Mention types of economy and
state which is ideal for international companies to conduct business ○ Mention
the three types of exchange rate arrangements - briefly explain one. State the
kind of exchange rate the country has and why. ○ Name at least two regional
integration or economic agreements. State the alignment this country belongs or
is associated with ● State the types of protectionism methods a country can have
in its trade practices - explain any one
Answer :
Three countries which ideally fit the expansion plans are India, China and Brazil as
they constitute 34% of the world population.
Expansion in India
Five pillars form the foundation of Facebook's India strategy. One, encourage
users to use Facebook, WhatsApp, and Instagram as the best platforms for
connecting and exploring. Facebook has 328 million users in 2019 and WhatsApp
had 400 million, and those numbers are growing.
In order to improve connectivity in underserved areas, Facebook has engaged in
an initiative called Express Wi-Fi where the corporation collaborates with telecom
providers, internet service providers, and local business owners. In accordance
with this scheme, people in off-the-grid regions of the nation can use the internet
for as low as 10 per day.

12. Hotspots in Gujarat, Uttar Pradesh, Rajasthan, Mumbai, Mizoram, and Meghalaya
offer the service on a commercial basis. "In the past four years, something
incredible has occurred, as a result of high-quality and reasonably priced internet,
nearly 500 million individuals have gone online. You now have the chance to
significantly contribute to the evolution of the economy.
Facebook has invested Rs 43,574 crore in Jio Platforms, a wholly-owned
subsidiary of Reliance Industries Ltd (RIL), betting on India's digital growth
narrative. "An investment of this magnitude demonstrates a remarkable
commitment to India. There is yet time to connect the following 500–600 million
people to the internet.
Expansion in Brazil
It is important to examine how Brazilian users interact with social networks like
Facebook. Relevant data on Facebook involvement is available from a September
2014 study on social networks in Brazil by market researcher ComScore.
Total Daily Users
Brazil is far ahead of nations like Argentina and Mexico, which have an average of
7 million daily users, with over 30 million social network users daily, or about half
of the audience in Latin America. Age ranges 15–24 and 25–34 make up the
majority of this audience.
Spending Time on Social Networks
The number on how much time Brazilians spend on social networks may be the
most intriguing one. Brazil had the highest average of all the markets analysed in
the research, 18.5, for the average number of minutes spent on social networks
per visit. In terms of the total amount of time spent on social networks
worldwide, this propels the nation to second place. In fact, according to the same
study, Brazil accounts for 10% of all global social media usage.
Social Media Relevance
According to research by ComScore, Facebook accounts for 96.7% of all social
media time in Brazil. When combined with the country's overall engagement with
social media, this statistic demonstrates Facebook's incredible relevance for the
Brazilian audience. As the rates of Facebook actions reflect the highest increase of

13. any country in Latin America, the research also emphasises the substantial
engagement of the nation's users in the network.
Expansion in China
According to the China Internet Network Information Center, 632 million people
(more than twice the size of the US population) were reportedly online.
The greatest social network in the world would benefit greatly from being able to
get into that sizable market, but there are significant barriers in the way. Other
tech behemoths have been expelled from China during the past five years, while
others have been made to comply with the country's strict Internet laws.
Let's take a look at three ways Facebook could approach the Chinese market, and
the challenges that each strategy could face.
Releasing a Chinese version with censorship
The simplest method for Facebook to reach China is to introduce a localised
version of the social media platform in Chinese that only allows connections
between Chinese users.
Potential collaborations
A more cautious strategy would be to launch a joint venture with an established
social network in China, such as Weibo, Tencent Weibo, Renren (RENN), a
Facebook clone, or Baidu (BIDU -6.13%).
Using independent apps
This leads to our third suggestion, which is to join the Chinese market through a
standalone mobile app like WhatsApp, Facebook Messenger, or Instagram.
A significant aspect of our lives is the economics. Since the dawn of time, the
economy has played a significant role in our society. Over the course of decades,
we have experienced numerous different economic structure types, each with its
own planning and accommodation framework. It is crucial for us to understand
the many types of economies that serve as the essential building blocks for our
development. In this context, we'll look at the fundamentals of the economic
system and the different sorts of economies that have and still have power.
Types of Economy

14. There are four types of economic systems –
Traditional Economic System
There is very little specialisation or labour division, which is one of the main
characteristics of this economic system. The likelihood of discovering a traditional
economic system is highest in rural areas or in such undeveloped countries where
farming is the main industry. Typically, these environments have extremely
limited resources to share.
Command Economic System
Government is the major source of centralised authority in the command or
socialist economic system. In such a nation, the government has complete control
over the economy. It has the only authority to make decisions regarding
allocation and production. The ideal command structure takes into account the
interests of its people.
Market Economic System
A market economic system, sometimes known as a capitalist economy, combines
free market ideas and involves very little government intervention. Control over
resources is seldom ever used. Demand and supply are regulated by market
forces. However, there is some government interference in the form of laws that
discourage monopolies and support fair trade.
Mixed Economic System
Both socialism and free-market elements are included in a mixed economic
system. Another name for it is a dual system. Today, the majority of nations have
a mixed economic structure that includes both public and private sectors.
Mixed economy is ideal for international companies to conduct business.
Characteristics of a Mixed Economy

15. The characteristics of a market-based economy are often combined with a robust
public sector in a mixed economy. Although supply and demand determine most
prices, the government can nonetheless influence the market by imposing price
floors or ceilings on specific items or by allocating public subsidies to favoured
industries at the expense of others.
Common examples of mixed-economy policies include the following:
Social Welfare Programs
The majority of mixed economies, especially those that are strongly market-
oriented, assist people who are in or close to poverty. Low-income people in the
United States have access to Medicaid, public housing, and SNAP benefits thanks
to the federal government, which also funds many state governments' own
programmes.
Many Western European nations have exceptionally substantial social welfare
systems, as well as free public health care and robust labour laws.
Price Controls / Subsidies
While the market often determines prices in a mixed economy, the government
occasionally steps in to stop specific commodities' prices from exceeding or falling
below a predetermined threshold. Most mixed economies, for instance, have
minimum wage rules to avoid worker exploitation, and they might employ
subsidies to promote farmers or other important industries.
Strong Business Regulations
Governments may utilise rules to shield the public from hazardous products,
pollution, or monopolistic company activities, even when the free market governs
the majority of commercial activity. Antitrust regulations are common in mixed
economies to maintain market competition.

16. Types of Exchange Rate Regimes
There are actually only two conceivable exchange rate regime types: the fixed
regime and the floating regime. These two systems do, however, have a number
of internal variances. Each of these systems is frequently linked to how far the
underlying economy has been liberalised. Let's examine each of these systems in
more detail one at a time. This will make it easier for us to comprehend why
particular economies favour particular exchange rate regimes.
1. Fixed Exchange Rate
A system with a fixed exchange rate means that the market does not control the
value of a currency. Instead, the central bank makes the decision. There are
several ways to set this currency's exchange rate. A fixed exchange rate,
however, is a conservative arrangement that is typically employed by
conservative nations like China.
For instance, the value of one currency, the Chinese Yuan, with reference to
another currency, such the US dollar, may be fixed.
An alternative would be to set the value of one currency in respect to a basket of
other currencies, such as the dollar, the euro, the yen, etc.
Finally, the value of a precious metal like gold might be used to determine how
much one currency is worth.
The central bank's responsibility after the exchange rate is set is to make sure that
price changes in the underlying currency closely match price changes in the target
currency with a negligible margin of error (often +/- 1%).
2.Floating Exchange Rate
A government with a floating exchange rate is more liberal. Most first-world
nations, including the United States, the United Kingdom, and nearly all of the
European Union's member states, adhere to it because of this. The free market
controls the exchange rate in a floating rate system. This means that private
transactions including the purchase and sale of foreign currency are permitted,

17. and the exchange rate is determined by supply and demand. The floating rate
system has some variations, just like the fixed rate system.
There are several nations in the world that don't meddle in currency exchanges or
affect the value of their currencies. These nations are referred regarded as being
on a clean or free drift.
On the other hand, some other nations control the value of their own currencies.
This indicates that they have a floating rate regime in theory. Implicitly, they do
have a range, though. The central bank engages in proprietary trading to stabilise
the value of the currency if the value of the currency starts to go outside of the
predetermined range. A managed float or dirty float is what this is.
3. Managed Floating Rate System
The framework of either a Fixed or a Flexible exchange rate system has
historically drawn the attention of international monetary
economists. With the demise of the Bretton Woods system, managed floating
exchange rates have become popular in many nations.
It describes a system in which the central bank manipulates the foreign currency
market in order to influence the exchange rate, which is ultimately set by market
forces.
Currently India has adopted the managed exchange rate system.
A managed floating exchange rate, to put it simply, is a system where currencies
fluctuate daily but the Reserve Bank of India and other regulatory bodies may
intervene to control and stabilise the value of the currency.
What Is Protectionism?
Government measures that impede international trade in order to support home
sectors are referred to as protectionism. However, they can also be implemented
due to safety or quality concerns. Protectionist policies are typically implemented
to increase economic activity within a domestic economy.

18. Tariffs
One of the most effective instruments a government has when attempting to
implement protectionist policies is import tariffs. There are three primary
theories for protective measures involving import tariffs. Generally speaking, all
import duties are levied against the importing nation and recorded at government
customs. A country's import costs increase as a result of import tariffs.
Import Quotas
Nontariff barriers called import quotas are used to restrict the number of goods
that can be imported over a specific time period. Quotas are used to restrict an
exporter's ability to provide an importer with a certain quantity of a specific
product. This is often a less extreme course of action that has a small impact on
prices and raises demand for domestic companies to fill the gap. Nontariff
barriers called import quotas are used to restrict the number of goods that can be
imported over a specific time period. Quotas are used to restrict an exporter's
ability to provide an importer with a certain quantity of a specific product.
Product Standards
When establishing product standards, the two main concerns are often product
safety and cheap goods or materials. Protectionism
of product standards may act as a roadblock to imports by limiting their
compliance with domestic regulations.
In the domains of food preparation, intellectual property enforcement, or
material production, some nations may have lower regulatory standards. This
may result in the need for a product standard or the regulatory enforcement of
import regulations blocking some imports. In general, increasing domestic
production might result from limiting imports through the application of product
standards.
Government Subsidies

19. Government assistance might take many different forms. They can generally be
either direct or indirect. Business recipients of direct subsidies receive payments
in cash. Indirect subsidies take the form of unique
savings, like tax cuts and interest-free loans.
Government authorities may decide to offer direct or indirect subsidies in the
areas of production, employment, tax, property, and other things when
considering subsidies.