Ivey Publishing
Facebook: A Business Model Under Attack
Product Number:
9B20M106
Publication Date:
06/02/2020
Revised Date:
06/02/2020
Length:
17 pages (8 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey/MacEwan
By 2019, Facebook Inc.’s (Facebook’s), popular social media and social networking service (known as Facebook) that launched in 2004, had emerged as one of the world’s largest market capitalizations. Over its 15 years, the company had experienced public relation incidents that led to controversies regarding its social media business model. Most criticism related to the unethical ways the company had handled its users’ personal data. By 2019, the level of mistrust from users had skyrocketed alarmingly. Many analysts questioned the company's willingness to deal with data privacy concerns, with some alleging that its business model was fundamentally unethical by design. Clearly Facebook's chief executive officer and his team needed to step back and reflect on the company’s next steps.
Learning Objective:
This case is intended for senior-level undergraduate- and graduate-level courses on business ethics, strategic management, or international business. Students will analyze this case through the conceptual lenses of business modelling, ethical decision-making, and crisis management. After working through the case and assignment questions students will be able to
  • understand the social media industry’s business model;
  • describe the role that ethics plays in corporate decision-making and corporate image; and
  • recommend a strategy for recovering the loss of trust from end-users, civil society, and policy-makers.
Issues:
Disciplines:
General Management/Strategy,  International
Industries:
Information, Media & Telecommunications
Setting:
International, Large, 2019
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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