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Fin 516-Mini Case

In: Business and Management

Submitted By jassad08
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MINI – CASE ASSIGNMENT

Facebook
1. What is the name of the company? What is the industry sector?
Facebook Inc. is a multi-billion dollar company in the Internet informational providers, technology (IT) industry.
Facebook Inc. is one of the leading an online social networking service in the world and is continuing to grow as the front-runner in their industry.
2. What are the operating risks of the company?
No company with no operational risks to consider. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies. The operating risks for Facebook Inc. include:
Facebook's ad revenue growth
While the company's advertising model seems to be delivering great results, there are still reasons for a more cautious assessment. Mobile advertising is booming, and accounts for roughly two-thirds of Facebook's revenue, but sales conversion for traditional products from mobile ads remains low compared to desktop alternatives, and it's unclear whether there will be significant improvement on this front.On the other hand, app install ads have proven to be effective, but the company has chosen not to give a breakdown on how much revenue.(The Motley Fool)
Facebook could be disrupted by competing social networks
Three social media networks competing with Facebook
GOOGLE+

Launched in 2011, the service looked to offer a cleaner, more user-friendly alternative to Facebook. At the time, the latter was drawing torrents of complaints from users frustrated at their news feeds being cluttered with ads and vacuous game notifications.
QQ
While relatively unknown in the United States, QQ, which offers social networking and instant messaging, games, blog platforms and group voice conferencing, is huge in China. As of 2015, China represents the fastest-growing market of Internet users.

Snapchat
Snapchat's…...

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