Reports on

Facebook-It’s about money

Submitted to:
Shahidul Islam Fakir

Submitted by:
▪ Md. Rashed Khan Babu -- M18150202735
▪ Ashikur Rahman -- M18150202749
▪ Md. Al-Amin -- M18150202789
▪ Uzzal Kumar -- M18150202708
▪ Arif Hossain -- M18150202735
Acknowledgment
It is a great pleasure for me to acknowledge the assistance and contributions of many individuals in
making this dissertation a success.

First and foremost, I would like to thank our Honurable faculty, Ms. Caterina Presi, for her assistance,
ideas, and feedbacks during the process in doing this dissertation. Without her guidance and support,
this dissertation can not be completed on time.

Secondly, it is a pleasure to express my thanks to all respondents from other members sparing their time
to participate in this study. I deeply appreciate their helpfulness and willingness in providing the useful
information for this study.

Lastly, I wish to express my sincere gratitude to my group members for their encouragement and moral
support.
Introduction
Facebook is one of the online based social networking services in the world. Facebook was
founded on February 4, 2004, by Mark Zuckerberg with his college roommates and fellow
Harvard University. Our today’s case is facebook-it about the money and in this case we were
show ethical analysis of facebook and also ethical dilemma presented by this case. Facebook
serve the connection between all people around the world and facebook wants more money and
have many users. In this case we also are showing some relationship of privacy to facebook
business model. The relation between users privacy and facebook business model is important
because advertising is the mainly revenue of facebook. In this case we were seeing some
weakness of facebook privacy policies and features and there was management, organization and
technology factors have contributed to those weakness.
Facebook Business Overview
Facebook, is an American online social media and social networking service company based in Menlo
Park, California. It was founded by Mark Zuckerberg, along with fellow Harvard College students and
roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. It is considered
one of the Big Four technology companies along with Amazon, Apple, and Google.

Since 2006, anyone who claims to be at least 13 years old has been allowed to become a registered user
of Facebook, though this may vary depending on local laws. The name comes from the facebook
directories often given to American university students. Facebook held its initial public offering in
February 2012, valuing the company at $104 billion, the largest valuation to date for a newly listed
public company. Facebook makes most of its revenue from advertisements that appear onscreen and in
users' News Feeds.

The Facebook service can be accessed from devices with Internet connectivity, such as personal
computers, tablets and smartphones. After registering, users can create customized profile revealing
information about themselves. Facebook claimed that had more than 2.3 billion monthly active users as
of December 2018. The company announced 500 million users in July 2010. Half of the site's
membership used Facebook daily, for an average of 34 minutes, while 150 million users accessed the
site from mobile devices. A company representative called the milestone a "quiet revolution. In
November 2010, based on SecondMarket (an exchange for privately held companies' shares),
Facebook's value was $41 billion. The company had slightly surpassed eBay to become the third largest
American web company after Google and Amazon.com.
Case Description
Facebook made more than $40 billion in revenue in 2017, approximately 89 percent of which
came from digital advertisements. The company announced second-quarter earnings on July 25,
2018, reporting $13.2 billion in revenue. Alongside Alphabet Inc. Facebook has emerged as
one-half of a dominant duo in the digital advertising game. But unlike its rival, which allows
advertisers to connect with consumers through keyword searches, Facebook generates revenue
primarily from targeted advertising and user data.

Advertisers can use the wealth of personal data about users from Facebook's product ecosystem
for ads. For its part, the Menlo Park, California-based company claims that it makes the data
anonymous and serves the information to advertisers in custom demographic buckets. It's hard to
be sure how much money Facebook makes from user data because targeted advertisements, by
definition, show users relevant ads by using their data. On March 17, 2018, the Guardian and
The New York Times reported that the data of approximately 87 million Facebook users had
been exposed to hackers. The data breach is expected to have far-reaching consequences on
Facebook’s revenues and the cost of doing business. Revenues from Facebook’s two largest
markets – North America and Europe - are expected to be affected as a result of the fallout from
the Cambridge Analytica scandal. Both are extremely lucrative markets for Facebook. In 2017,
Facebook earned an average of $84.41 from each North American user and $27.26 from each
user in Europe. In contrast, each user in Asia was worth $7.61.

But the scandal is expected to have an adverse impact on Facebook’s revenue in its two biggest
markets in two ways. First, advertiser concerns might lead them to pull out ads from Facebook’s
plan and result in an overall decline in revenue per user. Second, the social media network’s
revenues could take a hit in Europe due to new regulation. The General Data Production
Regulation (GDPR), which requires that Facebook obtain user consent for their data, in Europe
will result in a 7 percent decline in its revenue, according to Goldman Sachs.
Case Analysis
➢ Ethical and dilemma of Facebook.
Facebook Serve the connection between all people around the world and facebook wants
more money and has many users. Facebook have more users privacy data and more
facebook knows about you it make facebook serve more relevant advertisement that they
are giving users data to the company as their research for the advertisement because the
main revenue for facebook its from advertisement and facebook servers would keep user
information permanently whenever the user has deleted their account.
➢ Relationship of privacy to facebook business model.
The relation between users privacy and facebook business model is important because
advertising is the mainly revenue of facebook. 70% of its five million users log in every
day and they all between 18 and 24 that advertisers want to collaborate with facebook to
make profits for both.
➢ Weakness of subtitles and management factorys.
The weakness behind Facebook's privacy issues was a lack of communication between
Facebook and its users. The facebook.com has tried to protect their users privacy
information a lot, but there still have some weaknesses which didn’t solve. People are
worry about the handling and usage which the facebook doing with “the extensive
information it collects from its users. But the situation is, the facebook should try them
best to use their users privacy information to increase the revenues, but they can’t violate
the privacy of their users. So in my opinion, the facebook are make profit from their
user’s information, but lots of users think their information are privacy and they don’t
believe the facebook’s privacy policies. So the facebook should pay lots of money to
“truly capitalize on the massive audience and immersive environment of the site. That’s
all the weaknesses of Facebook’s privacy policies. The company’s Beacon advertising
service was the management to help the facebook to develop their privacy policies, this
service can help the users to protect their account and protect their information also. But
this assumption was often making mistakes; so many people are protest the Beacon. A
organization which called the civic action group MoveOn.org created a facebook group
to against the Beacon. So finally the Facebook.com change this service and gave their
users the ability to disable it completely.

➢ Measures to solve the ethical problem of facebook.

Facebook as a social networking website provides people with many kinds of advantages to
communicate with others. Facebook target market based on their demographic information,
hobbies, regions, and specified criteria in a comfortable and engaging environment. People can
find their friends, see the updates of friends’ profiles, communicated with each other, and use
different applications on it. Business model intends to generate revenue and profits. As more and
more people register the site, the brand image is increasing. Based on the network effect, users do
businesses on the site. Facebook was widespread fast among high schools, colleges and
universities that provide an easy way to find friends. This made students want to join in it also
because of narrow potential network with details in school activities. Facebook’s value and
growth potential is determined by how effectively it can leverage the personal data is aggregated
about its users to attract advertisers. Advertising is the mainly revenue of Facebook. Therefore, in
my opinion, I don’t think Facebook will be able to have a successful model without invading
privacy.
Conclusion
Facebook is the major online based social networking company. In this case facebook
advertisers have long understood the value of facebook unprecedented trove of personal
information. In this case we see that they can serve ads using highly specific details, like
relationship status etc. A facebook is considered one of the big four technology
companies along with Amazon, Apple, and google. In this case we were shows about
ethical and dilemma of facebook they serve the connection between all people around the
world and facebook wants more money and have many users. We were also shows
relationship of privacy to facebook business model. The weakness behind facebook
privacy issues was a lack of communication between facebook and its users. Facebook
value and growth potential is determined by how effectively it can leverage the personal
data is aggregated about its user to attractive advertiser.
References
https://www.reuters.com/finance/stocks/company-profile/FB.O

https://www.investopedia.com/ask/answers/120114/how-does-facebook-fb-make-money.asp

https://www.scribd.com/doc/225621216/Perform-an-Ethical-Analysis-of-Facebook