mis 301 CH 11 FACEBOOK

FB acquired insta for ______

$1 billion

colossal walled garden

a closed network/service that is controlled by one firm

short-selling

a way to sell a dropping/falling stock in order to make profit.

microtransactions

really small transactions where cash is preferred, like buying candy, bc they are so small that w/ transactions fees they become not viable

switching costs

the money/effort/time a consumer loses from switching to another product/site/etc

2. It can be easier to recruit employees before a firm goes public, since staff granted shares and options may see an upside at IPO.

True Facebook also finds that in a voraciously competitive high-end technical job market, the firm no longer has the promise of a massive IPO pay-day as a recruiting lure.

1. At the time of its IPO, Facebook earned no money from mobile advertising, but today mobile brings in the majority of the firm's ad revenue.

True Mobile was an early concern-the firm made no money on mobile at the time of its IPO. Today, mobile brings in over 90 percent of Facebook advertising revenue.

5. Which of the following is perhaps the most significant contributor to Facebook's ability to strengthen and deliver user value from the social graph? a. messages b. feeds c. profiles

b. feeds While the authenticity and trust offered by Facebook was critical, offering News Feeds concentrated and released value from the social graph.

15. What reason did Mark Zuckerberg give for acquiring Oculus VR?

bc mark thinks VR is the next major computing platform that will come after mobile and he wanted to start building it

deep Web

content on the internet that cant be found through a search engine

5. Facebook's _______________ effort, where users were asked to look at Facebook phrases and offer translation suggestions for their local language, helped the firm rapidly deploy versions in dozens of markets.

crowdsourcing localization

8. What feature of Facebook helps new applications gain visibility among users?

news feeds can spread apps very fast and early movers can then adopt it. not user verification

cloud

data that isnt stored on the computer but rather in a cloud, only available thru the internet

6. In order to expand earned-media reach, organizations should include a request at the end of their Facebook posts that requests that users reshare the information.

false

6. One of the biggest problems facing Internet access for the world's poor is that such a small percentage of the global population living poverty lives near a mobile cellphone tower.

false

8. Highlighting both a challenge and opportunity, Facebook's international users still contribute only a small fraction of the firm's overall ad revenue.

false

1. Facebook is so strong due to a team of domain experts. Genius developers are allowed to stay focused on a single project, perhaps throughout their career, serving as a resource for all new employees that enter that group.

false every eighteen months employees r required to leave their teams and work on something new

7. By default, a post by a "liked" firm or friend will appear in your feed.

false FB constantly refines their algorithm to cut out spammy content and give the user what they are most interested in

acqui-hire

fb acquires new startups/firms so then they can get new talented employees

viral distribution

fb allows anybody to add a fb "like" button to their site w/ coding. advantage to fb bc their stuff is on another site w/ no work from them

free rider problem

firms taking advantage of another firms service like instagram photos that are able to be seen on twitter

API's (application programming interfaces)

guidelines that another firm publishes so other programs can run within that firms system

social graph

how a site keeps all its users connected - FB has the best social graph

IPO

initial public offering known as a firm going public, means that the world can now see their stock and shares

crowdsourcing

inviting broad groups of ppl to take a job rather than an employee take it

2. What was the biggest problem with the rollout of Facebook's Beacon platform?

it was an "opt out" program

12. Why is it potentially easier for services delivered over mobile apps to recreate a social graph than it is for users of a browser-based service?

smartphones can access a user's address book thus rebuilding the social graph for a new mobile service

open source software

software that is free and anyone can access/modify the code

content delivery networks

systems that improve web page delivery and speed usually involving media

CPM (cost per thousand impressions)

the amount charged every time an ad appears 1000 times

content adjacency

the concern that an ad will run offensive material that embarrasses an advertiser and the product/brand

2. Two strategic assets considered vital to Facebook's enduring competitive advantage in social networking are switching costs and network effects.

true

3. By mid-2018, Instagram and WhatsApp Story features were larger than all of Snapchat's daily active user base.

true

6. In a significant "big data" play for more accurate consumer targeting, Facebook now allows advertisers to combine externally collected data with Facebook's insights.

true

7. Critics worry that for billions of low-income users, Facebook will come to represent the only Internet they know and have access to, deepening the roots and entanglement vines of the firm's walled garden.

true

8. To become the Web's leading photo-sharing service, Facebook didn't acquire anyone. The site simply turned on a substandard photo-sharing feature and quickly became the biggest photo-sharing site on the Web.

true FB did not acquire any1, just used a substandard photo-sharing feature

10. Facebook actually cut back on ads in news feeds, resulting in higher profits.

true, even tho ads in the news feed are harder to ignore and show more return

4. Many entrepreneurs accept start-up capital from _____, investor groups that provide funding in exchange for a stake in the firm and often, a degree of managerial control usually in the form of a voting seat, or seats on the firm's board of directors. a. financial institutions b. money lenders c. personal financiers d. credit unions e. venture capital firms

venture capital firms

4. From the privacy and user-content fiascos faced by Facebook, managers can learn that:

violation of public trust can lead to intense public scrutiny and regulatory consequences.

13. Which of the following statements is true about Facebook's acquisition of WhatsApp?

whatsapp has a very large share of the global messaging market that FB did not have. mark saw that as the best way for FB to remain relevant

envelopment

when a firm that has a lot of customers adds a new feature to an existing product so then it eliminates rivals. like apple adding a video option to cameras

network effects

when the value of a product or service increases as its number of users expands