Advantages and Disadvantages of Using Facebook Essay

Advantages and Disadvantages of Using Facebook Essay.

Social networking has been a common use on the Internet in today’s generation. One of these popular social networking sites is Facebook which has over millions of members connecting with friends every day. The popularity of Facebookers in Indonesia has been increasing so much that soon it will reach 43 billion members in 2012 (kompas.com on first February 2012). However, in society there are pro and contra viewpoints concerning using Facebook in the daily life. Based on this issue we would explain more about the advantages and disadvantages that people might get from Facebook so that you could decide whether or not you want to use Facebook.

We have two common advantages that we might get from Facebook such as easy communication and effective advertisement while about the disadvantages we have decreasing the direct communication and wasting your time. First of all, Facebook has two major advantages.

The first advantage of using Facebook is that it eases our communication. For example when people want to communicate with their friends or family abroad, they no longer need to post mails which need a lot of time and money.

A letter to Timor Leste for instance costs us 1 billions rupee. Not only that, the letter takes 10 years to reach the address. Facebook provides several features such as chatting, personal messaging, and photo sharing which enable us to share information with other Facebookers easily. Just by clicking on the ‘post’ button in Facebook, we can send pictures, videos, or simple sweet greetings for the people we love who are miles away from us. With the existence of Facebook, distance no longer becomes obstacle for our communication.

Facebook seems like constricting the globe. Another advantage of using Facebook is that it becomes an efficient place to advertise our products. Efficient here are in the form of money, time and energy. For example, we can use Facebook to advertise our products or events for free, while in the other media like newspaper, radio, or television, we have to pay a certain amount of money. Even, if we want to advertise our product in Jawa Post, we have to pay Rp.200.000 for only a two-line advertisement. Furthermore, we do not need much time to spread out our advertisements.

We just need to sit in the front of the computer, upload the advertisement and share it via Facebook by only clicking “share” button. In a few minutes, our product will spread all over the world and as a consequence, everyone will know and read our advertisement in their Facebook accounts. Moreover, by using Facebook, we should not do the conventional way of spreading the advertisement where we have to stand for a long time on the crowd giving the advertisements to the consumers. Instead of doing that tiring way, we only need to sit, get connected to Facebook and share the advertisements. Therefore, we definitely save a vast amount of energy.

Besides the advantages as described in the previous section, Facebook also has two common disadvantages. The first disadvantage of using Facebook is that it decreases the direct communication between yourselves and other people. Communicating by using Facebook, it means that you do not do face to face communication with your friends and only using computers to do it. Indeed by using Facebook, you can exchange information and make conversation with your friends. However, you will lose one essential aspect of communication which is non-verbal communication. It includes eye contact, gesture, voice tone and touching. Actually, non-verbal communication is so important because it will help to convey the emotion and feelings strongly.

To illustrate, when your friend is sad and crying, you can calm her/him down by patting her/his shoulder. If you use Facebook to communicate, you cannot show your support and sympathy straightforwardly. The second disadvantage of using Facebook is that it wastes our time. Once people connect with their friends on Facebook, they will tend to chat with them for hours and be curious to know what they are doing and feeling by looking at their friends’ constantly updated status. Moreover, Facebook also provides many kinds of online games such as Poker and Cityville. Usually people prefer to play online games on Facebook while waiting for the newest status of friends. When they get new notifications, they will minimize the game, look at the new notification, and then continue the game.

It happens on and on. As the result, people will not realize that they have spent many hours only for connecting to Facebook. Actually, with the amount of time, you can do your duty or other things which are useful such as doing homework or reading books. To sum up, there are two points of view about Facebook: agree and disagree. The people who agree with the using of Facebook find it useful to ease communication and provide effective advertisements. However, people who disagree with the using of Facebook think that it is decreasing direct communication and wasting time activity. Therefore, it is your choice to agree or disagree of the using of Facebook.

Advantages and Disadvantages of Using Facebook

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Advantages and Disadvantages of Using Facebook Essay

Friendship and Facebook Essay

Friendship and Facebook Essay.

Facebook started out as a simple social networking site, and has now grown to be one of the biggest companies in the world. One would typically join the site to be social with others, but it seems like it is almost distancing people from one another. Facebook users tend to have hundreds of friends, but how many of those can actually be considered real friends? The meaning of friendship seems to be forgotten when it comes to Facebook. Facebook is affecting friendship in society today because people use it too much, have too many “friends”, and do not put as much effort in to their “real life” friends.

The idea of Facebook seems like it would be a great way to maintain social relationships, but because people are using it so much it is actually isolating them more than anything. If Facebook was used in moderation, it would probably bring people a lot closer than it does now. Many of the millions of people that have a Facebook tend to check their page multiple times a day.

It has become a new addiction for people, and for some, a very serious addiction. Many people today can spend countless hours accessing the site, even when they are out in public! When out in a social situation, take a look around the room and notice how many people are glued to their phones.

It’s absolutely absurd. Before the use of smartphones and Facebook, people actually socialized with one another when they were together. Now it seems like people are letting it take over their lives, and not looking around to see what’s going on right in front of them in the real world. Friends don’t spend as much time together because they are too busy tagging each other, or looking at the other’s comments or pictures. If people used Facebook less, it would have a more positive effect on friendship.

Most people in the world do not have hundreds or even thousands of friends, but on Facebook that is the norm. It has almost become like a popularity contest to see how many friends one can acquire. The more people one becomes friends with the harder it is to stay in touch with all of them. By having all of these “friends”, it seems like people aren’t focusing on what it means to really be a true friend. Junghyun Kim and Jong-Eun Roselyn Lee did a study on the effects of the number of Facebook friends one has: Having too many Facebook friends, on the other hand, will not necessarily increase social support one can receive, for most of the ‘friendships’ may be superficial at best.

It takes much time and effort to build and maintain mutual companionship with friends. Given the average number of close offline friends is only nine, it is not surprising that Facebook users maintain close connections with less than 3% of their Facebook friends. It is likely that the larger one’s Facebook network becomes, the less time and effort can be invested in each individual (Kim and Lee).

People shouldn’t refer to Facebook friends as “friends”, because most of the time those people aren’t true friends. A friend is someone who is always there, and is an important person in life that is trustworthy. It seems like people today are more focused on commenting on someone’s post, rather than actually taking the time to spend time with them. People need to take the time to realize who their true friends are, and try to make sure they stay close with them. Facebook actually has a maximum number of friends one can have at a time. Amy Dempsey stated “Holding on to old friendships via Facebook may prevent us from forming new connections in the real world” (Dempsey).

Amy later goes on to quote Oxford University professor Robin Dunbar, “According to Facebook, the reason for the 5,000-friend cap is that anything beyond that can make it too difficult to maintain an environment where you can stay engaged with your friends in a meaningful way”(Dunbar). It seems like the quality of friendship is diminishing in this society. People do not have the time to keep in touch with hundreds of people and actually have a close relationship with all of them. It shouldn’t matter how many friends one has, the quality of the friendship is much more important. Since people are using this site so much, their important relationships are suffering.

Facebook may seem like it is bringing friends closer together, but it is actually just doing the opposite of that. Facebook is becoming detrimental to friendships because people are using it too much, are acquiring too many friends, and therefore are letting it affect their meaningful friendships. Life is so short, and people should take the time to appreciate their true friends who are right in front of them, rather than to try to keep in touch with people that they may barely even know. If Facebook keeps on growing and continuing the way that it is, it does not look too good for meaningful friendships. It really is simple, spend more time with friends and less time on Facebook.

Work Cited
Dempsey, Amy. Toronto, Star. “5000: Maximum Number of Friends Allowed on Facebook 1578:
Number of Crystal Kapteyn’s Facebook Friends150: Meaningful Friendships Humans Can
Handle15: Number if Bestfriends5: Intimate Friends.” Toronto Star (Canada) n.d.:
Newspaper Source. Web. 6 December 2012.
Junghyun, Kim, and Lee Jong-Eun Roselyn. “The Facebook Paths To Happiness: Effects of the
Number of Facbook Friends and Self-Presentation on Subjective Well-being.”
Cyberpyschology, Behavior & Social Networking 14.6 (2011): 359-364. Academic Search
Premier. Web. 4 Dec. 2012.

Friendship and Facebook Essay

Facebook: Friend or Foe? Essay

Facebook: Friend or Foe? Essay.

On September 7, 2012, Amanda Todd posted a 9-minute YouTube video entitled “My Story: Struggling, Bullying, Suicide and Self Harm,” which showed her using flash cards to reveal her experiences of being bullied. During the video, Amanda writes that when she was in seventh grade, she once used video chat to meet new people over the Internet and soon began receiving compliments on her looks. A stranger convinced Amanda to flash her breasts on camera. The stranger later blackmailed her with threats to expose the topless photo to her friends unless she gave a “show”.

She refused. She would never make that mistake again. Amanda Todd wrote that during the next Christmas break, police informed her at four am that the photo was circulating the Internet. Amanda wrote that she experienced anxiety, depression, and panic disorder because of this. Her family moved to a new home, where she later stated that she began using drugs and alcohol.

A year later, the stranger had reappeared, creating a Facebook profile which used the topless photograph as the profile image, and contacting classmates at her new school.

Once again she was being bullied, eventually causing her to change schools for the second time. With more bullying and an actual attack, she attempted suicide by drinking bleach, but was rushed to hospital to have her stomach pumped. After returning home, Amanda discovered abusive messages about her failed suicide attempt posted to Facebook.

Once again, her family moved to another city to start fresh, but Todd was unable to escape Facebook and her first unfortunate error. Six months later further messages and abuse were still being posted to social networking sites. She started to get worse, and began cutting herself. Despite taking anti-depressants and receiving counseling, she overdosed and spent two days in the hospital. She was teased by other students at her school for her low grades, and the time she spent in the hospital to treat her severe depression. On October 10, 2012 at about six PM, Amanda Todd hung herself at home. So is Facebook a friend or a foe?

Teens often don’t realize that bullying over the computer is the same as bullying in person. The harmless “joke” can be taken much, much worse because of the huge audience and the unclear tone of Facebook posts. Although Facebook can be a good source for meeting friends, spreading information, and changing peoples opinions, it can also be very harmful. Facebook can encourage cyber-bullying, make people become anti-social, and distract people from finishing other tasks.

On the positive side, Facebook is another way for people to connect with new friends, old friends, and family. According to the pro and cons website on social networking, seventy percent of adult social networking users visit the site to connect with friends and family. Fifty-two percent of teens say that using social media has helped improve their relationships with friends and eighty-eight percent believe that social media have helped them stay connected with friends they can not see regularly. Despite the fact that Facebook and social media sites have many positive sides, it has its bad sides as well.

Facebook users are starting to get more and more addicted each day. According to an article from WebMD, in a 2009 survey of 1,030 parents, Rosen and colleagues found out that children and teens had spent more time engaged in media (online and offline) had more anxiety, more stomachaches, and more sick days from school. In teens, the time spent playing video games also led to poorer health. In another ongoing survey of teens and adults, Rosen found that spending more time than average on Facebook was associated with signs of narcissism, anxiety, and bipolar disorder on a standard psychological test. In another 2011 study, 279 middle school, high school, and university students lost focus for an average of three minutes for every fifteen minutes spent studying or doing another task. Checking Facebook just once during the fifteen minute period was associated with lower grades. Not only does Facebook cause lower grades, it also can ruin someones self-esteem.

Facebook users feel as if they need to know if something important is happening, and by doing their work, they feel like they might miss out on something big. The New York Times released an article in April of 2011 that talked about FOMO, which stands for “the fear of missing out.” This mostly occurs when seeing Facebook statuses and photos posted by friends, questioning the event, wondering “Why wasn’t I there?” or “How come I didn’t know this was happening?” Sometimes it’s not just a specific event that throws us off, but just scrolling through a friends profile and noticing how much “better” his or her life appears. Facebook adds negative social comparisons and FOMO, which puts a sense of regret and a heavy weight on self-esteem.

As social networking sites become more and more popular, its users have expanded from teens to young adults, to even people over fifty. As you can see with Amanda Todd’s story, many people use social networking sites for the wrong reasons. People can be whoever they want to be, but some do use it for the right reasons, as for example connecting with family they haven’t seen in a while, or catching up with long-distance friends. Is Facebook a place where people can connect and have conversations about things that truly matter to them? Is it a place where you can express yourself without fear of judgement? Or is it a place for status updates that aren’t true, photoshopped profile pictures, and cyber-bullying disguised as humor? So what do you think? Is Facebook a friend or a foe?

Facebook: Friend or Foe? Essay

Facebook IPO Essay

Facebook IPO Essay.

Facebook, a social networking site, has grown at an exponential rate that far surpasses market expectation, so much so that its growth rate is referred to as the “ Facebook phenomenal”. In 2004, Facebook had 1million monthly active users, and in comparison, it had reached 845million monthly active users in 2011. This phenomenal led to one of the biggest initial public offerings (IPO) the market had seen in recent years, with total capital raised to be valued at $16B, given the $38 per share offering price.

Facebook was valued at around $96.6B in total. Prior to the IPO, the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However, as it will be examined below, Facebook has been significantly over-valued by the underwriters. In addition, the market changed its opinion of Facebook shortly after the IPO, criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation, and it is recommended that analysts and Facebook should have used real option to valuate its market value.

Over-valuation

There are three main reasons why Facebook is overvalued at $38 per share.

Aggressive Assumptions made by underwriters

The first reason is the $38 per share price is based on overly aggressive assumptions made on Facebook’s future revenue. Facebook generates its revenue in two ways – display advertisements on its website and retain royalties from third-party developers for using Facebook’s online payment platform. Out of the two streams of revenue, advertisement accounts for about 82% of the total revenue, and royalty payment only accounts for 18%.

Lead underwriter Morgan Stanley, has justified its pricing based on the assumptions that Facebook’s revenue will grow moderately considering the increasing popularity of its mobile app. Morgan Stanley estimated Facebook revenue to grow at 28% CAGR from 2013 – 2016, with advertising revenue growing at 31% and payment revenue growing at 17% per year. However, it is arguable that these assumptions are overly aggressive, and they will be extremely hard to realize.

Upon examining the future prospect of revenue generated from advertising, it can be said that the estimated 31% growth rate cannot be achieved. First of all, given the online advertising market size, and current Facebook market share, Facebook will not be able to achieve the projected annual growth. In 2011, Facebook’s share of the online advertising market is 27% of the $25B industry. It is projected that the online advertising sector will grow to $45B in 2015, and given Facebook’s current market share, Facebook should be able to generate $12.15B in advertising revenue in 2015. However, this only accounts for 20% CAGR.

Second, it is uncertain whether Facebook will be able to continue maintain its 27% market share. Facebook disclosed to the public that its current advertisers do not have long-term advertising commitment with Facebook, and many of its advertisers only spend a small proportion of their marketing budget with Facebook. In addition, many companies have started to question the effectiveness Facebook ads. Facebook differentiates its service by emphasizing the premise that ads are more effective if a friend recommends it on Facebook compares to traditional online advertising.

It can be observed that companies, such as GM, are starting to doubt the effectiveness of the so-called social advertising by pulling out their ads on Facebook. This can significantly impact Facebook’s share of online marketing in the future. In addition, Facebook disclosed to the public that it might not be able to retain advertisers if it does not reduce its current ad price. However, considering that Facebook is already pricing its ads lower compares to other websites – Facebook charges $0.58 per click vis-à-vis the industry norm of $1, it is hard to argue that Facebook will maintain its current revenue level even if it retains 27% of market share as it continues to reduce its ad price. Given the factors mentioned, it can be concluded that the estimated 31% growth rate in advertising revenue is overly aggressive.

In addition, Morgan Stanley estimated royalty revenue would grow by 17%; however, by looking at the current royalty revenue, it is unlikely that Facebook will achieve the predicated growth rate. Facebook collects royalty payments from developers that use its payment infrastructure to charge players. Currently, Zynga accounts for a substantial portion of the royalty. Considering the intensified competition that Zynga is facing, and its lack of ability to monetize mobile apps, Zynga will continue to experience sagging growth and will not be able to contribute a substantial amount of royalty to Facebook in the foreseeable future. Thus, it is unlikely that Facebook will achieve 17% growth in its royalty revenue.

Lastly, Morgan Stanley made these aggressive assumptions based on the premise that Facebook will be able to monetize its mobile app. However, Facebook has not been able to monetize its mobile app to-date. In addition, with the growing number of users using the mobile app as a substitute for accessing Facebook, Facebook is starting to see a decrease in its revenue, which led to the decrease in its stock prices after the IPO. Overall, the assumptions made by underwriters to justify the $38 per share IPO price are overly aggressive. Estimated fair value of common shares is much lower than $38

Facebook has estimated its Class B common stock to be at $30.89 per share as of Jan 31, 2012, and even if one continues with the aggressive estimation method that Facebook used, one will not reach the $38 per share valuation. Facebook adopted a mix of Discounted Cash Flow Method (“ DCFM”), Guideline Public Company Method (“GPCM”), and Market Transaction Method (“MTM”) to determine its business enterprise value and fair value of its private share price prior to the IPO. To achieve the price of $30.89, Facebook assigns a 50% weight to the MTM, where it considers the volume of transaction of its private shares, the timing of these transactions, the pricing of private shares in the secondary market, and whether the investors involved in the transaction have access to Facebook’s financial information.

It then assigns 25% weight to GPCM and DCFM each to determine fair value. GPCM uses multiples of financial ratios in comparable companies in the same industry, and DCFM sums up the net present value of future cash flow at a discount rate of 15%. The discount rate is conservative, given the risk free rate is at 2.3%, beta for IT services is at 1.06, and the market risk premium of 7%.

The assigned weight of the method is questionable. Facebook assigns a significant weight to MTM due to the large volume of third-party private stock sales. But considering that the volume transaction and pricing of the private shares were driven by the hype of the Facebook IPO and the positive reactions from the market prior to the IPO, it is hard to justify that the MTM valuation represents the true value of Facebook instead of an inflated hyped-up value. It is arguable that Facebook should have assigned less weight to MTM, and more weight to DCFM and GPCM.

In addition, it is hard to justify the $7.11 increase of fair market value in a span of 4 months considering that Facebook share only increased by $5.35 in estimated fair market value between 2011 and 2012. The methods discussed above and the historical estimates support the conclusion that Facebook IPO price is over-priced.

Comparable Company Valuation

The last reason is based on multiples generated by comparable companies, namely Google and Apple, it can be calculated that Facebook valuation is not close to the $96.6B valuation.

See Appendix A. Market Reactions

The market has perceived the IPO with positive remarks. One analyst even valued Facebook to be at $234B compares to the $96.6B IPO valuation. Most analysts either thought Facebook was valued right on the spot or thought it was undervalued. The hype about the stock was more obvious in the private market. Prior to its IPO, Facebook stocks were trading at a high of $42 compares to its $30 estimated fair market value. In contrast, immediately after the fall, most analysts jumped on the bandwagon of claiming the underwriters have overvalued the company. Some investors even blamed Mark Zuckerberg for failing to signal to the investors that the company has been overvalued.

The difference in market reaction showcased three shortfalls in valuation. They are objective valuation method that fails to account for dynamic business environment, asymmetry of information, and low level of corporate governance.

First, the valuation method that most analysts used to valuate Facebook is based on some types of discounted cash flow method. Analysts will look at future growth prospective of the company, and discount the estimated profit by a discount rate that would be appropriate to capture risks that are foreseeable given the historical financial record. In addition, the traditional discounted cash flow method depends on obtaining information that would allow one to correctly forecast future earnings and free cash flow, and to assess the strength of company management and future earning abilities.

The model ignores that companies could change their business practices to the dynamic business environment that cannot be properly valuated based on historical data. Facebook does not provide adequate information to allow analysts to generate reliable valuations. It has limited record of its profits, its revenue has been highly volatile, and the business environment it operates in changes frequently. One instance that the underwriters may have overlooked is Facebook’s ability to monetize its mobile app as mentioned above. The underwriters may have ignored the importance of substitution of web-accessed Facebook usage by the mobile app accessed usage at the time of the valuation given that this risk was not reflected in historical revenue record.

The second challenge relates to valuation is asymmetry of information, which is arguable that it had drove up investor expectation that a “free lunch” scenario will take place. Morgan Stanley was sued and fined for only disclosing softer revenue and profit forecasts to selective investors prior to the IPO and for failing to disclose the cannibalization of Facebook revenue by the increasing popularity of its mobile app adequately to retail investors through the prospectus. Investors with the additional information were able to make a better-informed decision of whether to purchase Facebook share or not.

The asymmetry of information also led to market hype. Investors, without the softer revenue and profit forecasts, interpreted the market price to be much higher than the private trade price prior to the IPO and the IPO price. This drove the private share price to $42 from $34 on the secondary market. Investors thought by buying shares before IPO, they would be able to rip a bigger profit considering that the market price will be higher than $38. Lastly, the asymmetry of information led investors to believe that it will be extremely hard to buy Facebook stocks at IPO price given the mentality that the demand for the shares will not meet the supply despite the fact that ¾ of Class B shares are locked in to be sold at a later time. The market hype, combined with the surging demand of shares and the lack of investor rationality drove the valuation of the company to be higher than what it really is.

The last challenge is the lack of corporate governance. As investors have pointed out, the CEO of the company and the underwriters should have disclosed the information adequately in the prospectus. The lack of corporate governance could be driven by the lack of serious fine for improper disclosure of information. Morgan Stanley was only fined $5M compares to the $68M underwriting fee it gained from the deal. Also, the lack of governance was driven by hubris and greed. The underwriters stand to gain a bigger underwriting fee for a higher IPO price, and the company stands to gain more capital for higher IPO price. In addition, it is also easier for the underwriter to justify its valuation for a company that cannot be properly valuated based on the traditional discounted cash flow method. The combinations of driver lead to lack of corporate governance in this case.

Suggested Valuation Method

It is suggested that analysts and Facebook should have used real options to valuate the company given the volatility of the business environment Facebook is in, and the ever-changing business practices to meet these volatilities. Real option valuation allows the company to include R&D, brand development, and technology initiatives to be built into its valuation. It is also flexible enough to account for company’s ability to change its business practices in the future. Valuation will change in accordance to the options that management will take to delay, expand, contract, switch uses, outsource or abandon projects.

Real options would allow Facebook to valuate its new platforms, new mobile apps, and new technology initiatives to renovate Facebook’s current operations. In addition, real option does capture the benefits of discounted cash flow model by assigning weights to future cash flow given the past company performance in the market. Given the current Facebook operation model, it is commended that real options should be used to valuate the company.

Conclusion

It is extremely hard to valuate a company properly, especially given a company, such as Facebook, which does not have a long history of stable income nor information that would solidify its future earnings. Market reaction prior to and after the Facebook IPO indicates issues within the current valuation models that companies and analysts are using. It is recommended that companies should start to consider using the real option method to valuate companies with similar business characteristics as Facebook.

Bibliography

Primary source:

Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm.

Secondary source:

Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424127887324407504578185580869680410.html.

Buley, T. (2009). Facing up to facebook’s value. Forbes, Retrieved from http://www.forbes.com/2009/04/06/facebook-advertising-rates-technology-internet-facebook.html.

Damodaran. (2012). Betas by sector. Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html.

Dunand, E. (2012). Morgan stanley fined $5 million over facebook ipo. Reuters, Retrieved from http://www.cnbc.com/id/100322264.

Gustin, S. (2012). Do facebook ads work? . Time Magazine, Retrieved from http://business.time.com/2012/08/07/do-facebook-ads-work/.

Joiner, S. (Interviewee), & Ruggeri, C. (Interviewee) (n.d.). Valuation issues in a down market Mergers and Acquisitions series : Part 1. [Audio podcast]. Retrieved from http://www.deloitte.com/view/en_LB/lb/centers/cfo-center/3e9619288f709210VgnVCM200000bb42f00aRCRD.htm?theme=cfo.

Latimore, D. (2002). Calculating value during uncertainty: Getting real with “real options”. Retrieved from http://www-935.ibm.com/services/hk/igs/pdf/g510-3248-calculating-value.pdf.

Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/.

Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from
http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/.

Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html.

Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html.

US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate.

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[ 1 ]. Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm. [ 2 ]. Ibid. p.1
[ 3 ]. Ibid. p.13
[ 4 ]. Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/. [ 5 ]. Ibid.

[ 6 ]. Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html. [ 7 ]. Ibid.
[ 8 ]. Supra Note 1 at p.13.
[ 9 ]. Gustin, S. (2012). Do facebook ads work? . Time Magazine, Retrieved from http://business.time.com/2012/08/07/do-facebook-ads-work/. [ 10 ].
Buley, T. (2009). Facing up to facebook’s value. Forbes, Retrieved from http://www.forbes.com/2009/04/06/facebook-advertising-rates-technology-internet-facebook.html. [ 11 ]. Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/. [ 12 ]. Supra Note 1 at p.14.

[ 13 ]. Supra Note 1 at p.76.
[ 14 ]. Ibid at p.77.
[ 15 ]. Ibid.
[ 16 ]. Damodaran. (2012). Betas by sector. Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html; US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate. Re = 2.3%+1.06(7%) = 9.72% Facebook does not have any long term debt. [ 17 ]. Supra Note 1 at p.78.

[ 18 ]. Ibid at p.77 and 78. The estimated fair value of Facebook’s shares $25.54 on Mar 31, 2011, and $30.89 on Jan 31, 2012. [ 19 ]. Supra Note 6.
[ 20 ]. Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html. [ 21 ]. Joiner, S. (Interviewee), & Ruggeri, C. (Interviewee) (n.d.). Valuation issues in a down market Mergers and Acquisitions series : Part 1. [Audio podcast]. Retrieved from http://www.deloitte.com/view/en_LB/lb/centers/cfo-center/3e9619288f709210VgnVCM200000bb42f00aRCRD.htm?theme=cfo. [ 22 ]. Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424127887324407504578185580869680410.html. [ 23 ]. Supra Note 20.

Facebook IPO Essay

Mark Zuckerberg Essay

Mark Zuckerberg Essay.

Mark Zuckerberg is the Founder, Chairman, and Chief Executive Officer of Facebook. Zuckerberg started Facebook in 2004 at the age of 19 from the confines of his Harvard dorm room. Facebook has grown from a college students only craze to the leading social networking sight around the globe. Mark later dropped out of Harvard and moved his company to Palo Alto, California to pursue the growth of his business. Zuckerberg’s job as Chief Executive Officer is to set the tone and direction for product strategy for the entire company.

At 27 years old Zuckerberg is one of the youngest Chief Executive Officers in the world. He leads the design of Facebook’s service and development of its core technology and infrastructure (Facebook, 2012). His leadership style is to lead by example, showing passion for his work, he is also about rising to the challenge ever challenging his employees and he expects them to rise to the occasion.

Mark is not one to coddle people or give positive feedback, he has been known to seem uninterested even when listening to a pitch or idea weather one on one or in a boardroom (Carlson, 2012).

In all actuality he is listening and taking everything in and putting the puzzle pieces together he usually does not acknowledge an employee’s good idea until he takes it and puts it into action (Carlson, 2012). Employees that have confidence in their own abilities, are self-motivating, and emotionally sound are most likely to flourish in the presence of Mark Zuckerberg (Carlson, 2012). Mark’s philosophy is to innovate and execute. One of the values as stated on the company website is: “We have a saying “Move fast and break things.” The idea is that if you never break anything, you’re probably not moving fast enough.

At Facebook, we’re less afraid of making mistakes than we are of losing opportunities” (Facebook, 2012). In a technology based industry it pays to be cutting edge and the first to the drawing board with new ideas this is important to the Founder of the company as well as the survival of the company as technology advances into the future. Sometimes this philosophy makes Zuckerberg seem reckless like when the company launched Beacon, an advertising program, which would automatically share what you bought online with all of your Facebook friends (Deneen, 2010). This program was launched around the holidays and reviled what some had bought as gifts or even engagement rings all without the users consent (Deneen, 2010). After being first to launch a program of its kind the company then had to rewind and apologize for all the trouble it caused and alter how it would work in the future(Deneen, 2010).

Even though Zuckerberg is a kid genius of sorts starting a company so young that has been continually successful as it continues to grow even he had a mentor. His mentor was Steve Jobs who was Co-Founder and CEO of Apple and whom recently passed away (Farooq, 2011). It shows that he admired someone in a similar industry and wanted to learn how Steve grew and managed his company(Farooq, 2011). I think it is important to have a mentor that one can confide in and learn from who is a part of the same industry and has had a career or success that you admire. Having a mentor can help one realize and reach his or her own goals and possibly prevent making mistakes first hand. In this research I learned that your leadership philosophy can change and grow. A lot of the change and growth in Mark Zuckerberg’s philosophy may have come from being so young and having to change and grow with his ever growing business.

Being able to adapt to change and rise to the occasion as a CEO of a company is imperative. I hope to apply this in my own industry by thinking outside of the box and being confident enough in myself to share my new ideas. I also learned that you may not always be perceived the way that you hoped while in a leadership position. Mark has been labeled as carless and rash when making decisions to launch new ideas on Facebook. He has launched many concepts that had negative back lash or did not have all the kinks worked out before introducing them to the public. His main goal though is to be innovative and on the cutting edge of his industry and he has stayed true to this regardless of the mistakes made and negativity and scrutiny that comes along with the growth and innovation.

As I move up in the business world I hope to stay focused on my personal and company goals and not let negativity from co-workers, media, or friend derail me from my personal goals. My employees may not always understand my methods but it isn’t there job to understand it is there job to rise to the challenges I set in front of them. He has also been criticized for his choice of clothing as a Chief Executive Officer he wears jeans, t-shirts, hoodie sweat shirts, and tennis shoes on the job.

He even wore this attire when discussing the possibility of his company becoming publicly traded on Wall Street. He is a no non-sense kind of guy who is not afraid to be and come as he is. He is the brain child of his organization so he is able to dress as he likes on the job without anyone telling him otherwise but outsiders do not agree an let him know that his attire is inappropriate. I think that as I move up in my industry I will keep in mind that first impressions are very important even down to the clothes on my back regardless of how successful I am making a great impression and dressing appropriately for my job will help others to take me and my ideas seriously.

References
Carlson, N. (2012, January 25). Confessions of a Facebook Employee: What It’s Really Like Working For Zuckerberg. Retrieved from http://articles.businessinsider.com/2012-01-25/tech/30662019_1_mark-zuckerberg-andrew-bosworth-facebook Deneen, S. (2010). The Facebook Age. Retrieved from http://www.success.com/articles/1287-the-facebook-age Facebook. (2012). Careers at Facebook. Retrieved from http://www.facebook.com/careers/?ref=pf Facebook. (2012). Mangement. Retrieved from http://newsroom.fb.com/content/default.aspx?NewsAreaId=1 Farooq, S. (2011, November 8). Steve Jobs Mentored Me: Mark Zuckerberg. Retrieved from http://www.nbcsandiego.com/blogs/press-here/Steve-Jobs-Mentored-Me-Mark-Zuckerberg-133456048.html Raising, M. (2011, March 8). Mark Zuckerberg: Transformational Leadership In Action. Retrieved from http://ezinearticles.com/?Mark-Zuckerberg:-Transformational-Leadership-in-Action&id=6053695

Mark Zuckerberg Essay

Impact of Facebook Essay

Impact of Facebook Essay.

The purpose of this paper is to introduce, discuss, and analyze the topic of social networking. Specifically it will discuss the impact of the social networking site Facebook on today’s society. Facebook has become a phenomenon for the social networking set, and what makes that so amazing is that Facebook did not even exist until 2004. Three college students created it to allow other students to network and meet each other, and it has caught on with young people around the globe.

What impact does Facebook have on today’s technologically advanced society? It allows people who probably never would have met each other in person to communicate, it creates new relationships and friendships, and it places distance between people who could communicate in person but instead choose to communicate online, instead. It is just another element of society that is interested in sharing information with the intimacy of a close, personal relationship.

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Facebook is nothing more than a medium for communication, and yet, it is so much more than that.

At a glance, a user can learn everything from what gender a Facebook member is, to what religion they believe in, what school they attend, and their likes and dislikes, all with the click of a mouse. One writer notes how popular the site has become in a short time. She writes, “When Facebook launched in February 2004, American college students seized the opportunity to have a new social medium” (Lingg, 2008). Today, millions of new visitors join the site every year, and people find relatives, old friends, new friends, and much more as they surf the entries of neighbors, acquaintances, and classmates. While many believe Facebook is a new, trendy idea, it is actually based on a Victorian university tradition, the “Freshman Facebook,” that introduced the incoming class to students through their photographs. A researcher notes, “Like its relative the yearbook, the Facebook is a photographic document created by a community for the purpose of visually defining community life” (Miller, 2007). Many colleges and universities still utilize the Facebook, and the web site’s creators based their name and idea on that old college tradition, they just updated it for a younger, hipper, techie audience.

However, compared to other social networking sites, like My Space, Facebook is far less chaotic, busy, and difficult to understand. The pages are neat, easy to navigate, and offer the information in an uncluttered, neat site that is pleasant to look at. Facebook’s effect on today’s society is not difficult to distinguish. Of course, Facebook’s success has spawned numerous other sites geared to specific age groups and demographics. Another writer notes, “There are social networking sites for musicians, for mountain climbers, and for particular political persuasions. And with each site, a new community emerges that presumably satisfies the community needs that the members of such a site are looking for” (Fabian, 2008). Facebook has changed the way people communicate, connect with each other, and meet, and all of that is done virtually now, instead of in person.

Users can share photos, buy and sell items, and spend hours online communicating with friends and acquaintances. It has changed the way people connect and communicate, but its affect on society goes far deeper than that, and it says something about our virtual society. Experts estimate that many people now spend at least 50 percent of their waking time online (Fabian, 2008). For many, a large part of this time is spent in social networking sites like Facebook. People give up huge parts of their privacy when they post their feelings, interests, and ideas online, and society seems to be becoming much more open to this lack of privacy, in fact, the users of Facebook seem to relish it, adding very personal items to their profiles that anyone who becomes their friend can view. This seems to say that our society is much more open now, and much more open to posting intimate information online, but it also is rather anonymous in a way, because users never see, meet, or touch the person they communicate with, and so, even though they know intimate details, they do not really know the person at all. Writer Fabian continues, “Facebook and My Space are virtual experiences.

People are free to be someone they aren’t. Peer review doesn’t exist. You don’t literally touch anyone–not even by a smile, to say nothing of a handshake. No one is accountable to anyone else. And so forth” (Fabian, 2008). Thus, Facebook is kind of a “fantasy land” where people can make up anything they want to command attention, they can live an alternative life if they choose, and no one is the wiser. The fact that people accept these profiles at face value, and choose people as friends based on these profiles says a lot about our society. For all our worries about information and identity theft, people are still seemingly naive when it comes to sites like Facebook, where they post intimate details with no thoughts to the consequences. Facebook opens up other questions about today’s society, too. These young people who spend so much time online networking are not networking in person. Will they develop the social and interpersonal skills necessary to compete in their chosen careers when they spend so much time alone, networking? Do they understand the realities of everyday life, and how the “real” world works, so they can function and be a part of it? Many experts believe not so much.

Another writer states, “And yet, as a generation, Rose notes, many may not have much historical perspective, or understand how say, government or economic systems work (outside of those who learn details as part of a specific academic path), or get the fact that success for most people isn’t instant” (Bielski, 2007). Society is becoming increasingly fast paced, today’s young people expect everything to be delivered at the speed of the Internet, and sites like Facebook only enhance that feeling of instant gratification and success. In addition, Facebook poses another interesting aspect of today’s society – marketing. Many companies are realizing they have a captive audience on Facebook that spends a great amount of time there, and so, they market their businesses on Facebook. The Canadian Royal Bank is just one business cultivating college students on the site, so it is changing the way advertisers market their products online, and even changing the age range of ads online, as well. As more companies reach out to college students and others on social networking sites, advertising in print and television media may reduce or disappear, because advertisers want the most bang for their buck, and much of that audience is now spending increasing amounts of time online.

There is also another great implication to today’s society when the membership of My Space and Facebook are compared. A Blogger discusses a white paper a friend of his has written regarding how social status is quite segmented between the two sites. He writes, “Which posits that well-to-do, stable American teens with ‘good prospects’ end up on Facebook, while poor, queer, marginal and non-white teens end up on My Space (even in the military, grunts are on My Space and officers are on Facebook)” (Doctorow, 2009). The implications for this separation in today’s society is staggering. In a time when it seems that the anonymity of the Internet would foster more coming together and breaking down cultural barriers, it seems that is not the case and the implications for society are clear – Facebook is not fostering change and acceptance, it is still fostering class and societal barriers that keep people apart instead of bringing them together.

In conclusion, Facebook on the surface is a socially acceptable networking site for college students and others to connect, share experiences, and meet old friends. It does say some disturbing things about how our society views privacy, personal information, and how our society is adjusting to the age of technology, and it brings into question what a generation of Facebookers will deal with the challenges of the real world in person, like career, family, and success. Facebook is a popular phenomenon that attracts millions of users each year, and allows people to post profiles, communicate with others, and even locate old friends. It is extremely popular with college students, but it is used my any number of people for a variety of reasons. It has some serious implications for our society.

People on Facebook rarely meet or interact in person, so they do not develop good interpersonal skills. They spend so much time online, giving out extremely personal and sensitive information, they may not be aware of some of the important aspects of society, such as the government and economics that they will need to understand to become successful in their careers. We use the Internet so much now that some users may expect all of life to respond as quickly as online sites like Facebook, and they may have trouble dealing with the realities of a career that takes time to establish and gain success. In addition, Facebook and other networking sites are helping to build barriers to commonality in society, something extremely disturbing and with long-term effects.

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Impact of Facebook Essay

Gaps Model of Service Quality Essay

Gaps Model of Service Quality Essay.

Model are knowledge gap, standards gap, delivery gap and communication gap. Knowledge gap is the difference between customers’ expectations and the retailer’s perception of these customer’s expectations. This occurs when a person do not know what the customers expect or want. By applying knowledge gap to H&M retail store, it refers to the salesperson not knowing what their customers expect/want. For example, a customer visiting the H&M store may expect fast checkout at the cashier and shorter queuing time at the fitting rooms.

However, the salesperson may think that the customers do not mind queuing for a longer time but would prefer friendly assistance from them and better quality clothes. Hence, such difference between customers’ expectations and retailer’s perception of their customers’ expectations will lead to knowledge gap. In order to reduce the knowledge gap, surveys, interactions and customer complaints can be done. Firstly, H&M can carry out survey after each individual transaction.

H&M can conduct their surveys or feedback forms by distributing to every customer after they have made their payment.

After they are done filling up the survey on their overall visit at H&M, they can hand up their forms to the salesperson at the counter. Otherwise, H&M can place a feedback box at the side to make things easier for everyone. Secondly, is through interacting with their customers and staffs. H&M can get valuable feedbacks from their store employees on ways to improve on certain areas based on theirs or customer’s suggestions and comments. Apart from that, H&M can actually interact with their customers through social media such as Facebook, Twitter etc.

Since social media are widely used nowadays, customers would post constructive comments or feedbacks on social media such as on their Facebook walls. H&M can effectively interact with their customers through such social platforms and better understand what customers expect or want. Lastly, through customer complaints, H&M will then be able to find out their problem and rectify it to further improve on their services, etc. Standards Gap is the difference between the retailer’s perception of customers’ expectations and the service standards it sets.

For example, the service standards H&M sets for all their salesperson may be to bring the customer to that specific section when he or she asked where it is. However, the retailer’s perception of customers’ expectations may be just to direct and point out to them which level and which part it is located at instead of bringing them all the way to the area they want. Hence, such difference between the retailer’s perception of customers’ expectations and the service standards it sets will lead to standards gap. In order to reduce the standards gap, strong commitment to service quality by the top management should be done.

Top management should give information and training to their service staff so as to provide quality service to their customers. Also, give clear definition of the roles of service providers by setting specific and measurable goals based on customer’s expectations. Lastly, to measure service performance of their service staffs, surveys and mystery shopping could be conducted to see how well their employees fare when they serve a customer. All these would help to set appropriate standards to deliver high quality service to their customers.

Delivery gap is the difference between the retailer’s service standards and the actual service provided to customers. In this case, H&M is not applicable to delivery gap as this service quality is immeasurable as there is no specific time a salesperson is given to assist or “clear” their customers. Communication gap is the difference between the retailer’s actual service and the service that the retailer’s communication programme promises. Likewise, this is also not applicable to H&M as it is a retailer store rather than a transport service that needs to deliver an actual time to the customers.

Gaps Model of Service Quality Essay

Effects of Social Media Essay

Effects of Social Media Essay.

Cattail Hare come 107 Mr.. August Positive and Negative Effects of Social Media Social media is everywhere. Every day, thousands of people are logging on to social networking websites People talk the social media slang without even knowing it these days. Our world revolves around Backbone, Twitter and other social media sites. Like every coin has two sides even this has Its own pro’s and con’s. One thing that users may not realize Is the effect that social media Is having on society There are some positive effects of social networking.

Some social networking sites are used a way to display ones creativity.

Twitter allows users to customize their colors and change the background. Blobbing websites have made it easy for a user to post customizable blobs and choose the things they want shared. The biggest networking site, Backbone. Allows a user to post a picture of their choice to the top of their profile. Besides what users are customizing, the site also serves as a form of self expression.

A user might notice that one person posts quotes, while one always posts funny things, some may cost about everyday life and some post song lyrics that they may like.

Users use their online profile as a way to reflect themselves. Social media has also helped users to connect to people around the world and bring some closer to others then they were before. It helps people become aware of things tat happen all throughout the world, rather than relying on the news later that night to see it. They see pictures and news about events almost Immediately When the earthquake in Halt hit. People were able to the damaging effects right away. One person near the accident could “tweet” about hat Just happened and it would spread worldwide, making everyone aware.

Social networking is connecting users everywhere, and spreading kindness and knowledge worldwide. It allows users to overcome the distance put between them, and lets them unite together. Sites allow people to connect with others that they wouldn’t contact in person, but makes It easier through the site. It gives users a more open attitude about others and really allows them to get to know others, which they wouldn’t have done before. A negative effect of social media is bullying. The number of children Ewing shipbuilder is ‘creasing, as the social networking sites are becoming more and more popular.

Accessibility can be sending threatening messages, positing embarrassing pictures of others, or spreading rumors. Accessibility Is becoming big because networking sites make It easier for someone to start drama, tell lies or say hurtful things, because nobody Is there to tell them to stop. Rather than a confrontation in person, users hide behind their computer screen and cellophane. With Just one click, an embarrassing photo or rumor can be spread to thousands worldwide. Social media has it’s good effects and it’s bad effects.

Whether it causes users harm or brings them together is up to the user to let it hurt them or help them If people are using social media sites Just to stalk people’s profile pictures, make fun of them, post embarrassing stories about each others personal lives, or start networking to get to know each other, celebrate each others differences, and learn from one another, users could really make a positive difference with them. The effect that social media has on society is entirely up to those who use it and how they use it.

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Effects of Social Media Essay

Analysis on the characteristics and features of Facebook Essay

Analysis on the characteristics and features of Facebook Essay.

Although social networking sites open different opportunities for the users to socialize effectively, communicate faster and relatively cheap, and gatherinformation, the medium of communication promotes psychological incapacities, specifically narcissism.

Introduction With 93. 3% of the nation signed up in Facebook in 2011, Philippines was named as the “Social Networking Capital of the World” (Russel, 2011).

Filipinos, as citizens of the country, are proud of this achievement, but everything has consequences. Although Social Networking Sites (SNS), like Facebook, open different opportunities for the users to socialize effectively, gather information, and communicate faster and in relatively cheap venues, the medium of communication promotes psychological incapacities, specifically narcissism. A narcissist view himself/herself in a positive but unrealistic self-concept. It also results in lack of interest in forming relationships, and a commitment in regulating one’s self to ensure a positive view (Campbell & Foster, 2007).

Narcissists tend to live with this style of life which is a result of wanting to be safe by living all by themselves, and to develop high self-esteem.

Every SNS has its unique features that attract users. These features contribute to the increasing number of adolescents and young adult narcissists in the Philippines. Some SNSs have technical and functional features that allow the user to show his list of “friends”. Most SNSs require users to have a profile picture. Other SNSs have a feature that focuses on “about me” of the user, some let the users tag photos, post photos and create status posts and updates.

SNS as web-based service allow individuals to (1) construct a public or semi-public profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system. The nature and nomenclature of these connections may vary from site to site (Boyd & Ellison, 2007). In 1997 the first SNS, SixDegrees. com, was created and introduced to the public. SixDegrees.

History of Facebook Mark Zuckerberg created Facebook in 2004 as a local social networking site for Harvard students; it was first named as “My Facebook” (The Social Network, 2010). Before signing in into the website, students need to have a harvard. edu email address. This requirement was a key to keep Facebook a private community. In 2005, when Mark Zuckerberg and his team started expanding “My Facebook” to nearby universities, high school, corporations, and eventually to everyone, they changed its name to “Facebook” and removed the initial requirement in signing up but changed it to a valid email.

Facebook adapted SixDegrees. com’s unique feature of messaging, and like SixDegrees. com, the feature (messaging) and other new features (e. g. profile picture, microblogging, photo sharing, wall post, applications and etc. ) attracted millions of users. Based on a model created by Ashwini Nadkarni and Stefan G. Hofmann in their research titled “Why do people use Facebook? ”, Nadkarni and Hofmann discovered that people use Facebook for two primary needs: first is to satisfy their need to belong, and second, to satisfy their need for self-presentation.

Baumeister & Leary (1995) said that humans are highly dependent on social support, and exclusion from a social group may have negative effects to one’s self-esteem. Humans also cannot live without social interaction (Sullivan, 1957). These findings explain the first need of an individual why he/she uses Facebook; the need to belong. The second need of an individual for using Facebook, the need for self presentation, is motivated by the “continuous process of impression management” as stated by Nadkarni and Hofmann. Why Facebook and Youth?

The research is focused on Facebook because it has over 1.1 billion users worldwide, almost 16% of the world’s population. With this number of FB users worldwide, Facebook is considered as the most popular SNS in the whole world. In 2011, a research used Facebook usage as a measurement to determine the world’s capital for social networking. Researchers concluded that Philippines has the highest percentage of SNSs users with 93. 6%. Since almost 95% of the Filipinos use Facebook, it is the most effective SNS to use in this research paper. Another thing is that, 83% of Facebook users are young adults.

Youth presents themselves online with different aspects of life, such as their real self, ideal self, and false self. With this modern world, they can present themselves using different medium, especially Facebook since most of its users are young adults. The Needs of a Narcissist and his/her way to compensate for it through Facebook Narcissists regulate their self-presentation to ensure positive self-view, they also tend to lack in interest to form relationship. Unique feature and characteristic on Facebook is perfect to aid these traits of a narcissist.

The unique features of Facebook are mostly technical features (e.g. applications, photo, news feed, friend list, poke, status, video, group, chat, and like), some of these unique technical features satisfy the needs of a narcissist for exhibition/self-presentation (e. g. friend list, status, photo and video). Another feature of Facebook is its unique way of adding friends. Narcissists are afraid of forming strong bonds; they are attracted to Facebook because they can create relationship with loose or “weak ties”. A person with high personal preference for exhibitionism/self-presentation feels free to take the center of the stage and to attract attention (Bulatao, et. al. ).

Exhibitionism is defined as calling an attention to oneself and leaving an impression (Hall. et. al. ). SNSs, like Facebook, allow users to control their self-presentation. This unique characteristic attracts narcissist because they will have more opportunity to alter their appearance and personality in online SNSs than in face-to-face interaction. Given that users of SNSs have almost full control over information disclosure, they can be more strategic in managing self-presentation. Profile picture is the most important aspect or part of self-presentation because they represent the individual in most of his online actions and activity.

To affirm their positive but unrealistic, idealized and inflated self-view, narcissists tend to make their profile pictures more attractive and self-promoting. They choose profile pictures where they look more physically attractive; they also edit and refine their photos to hide their flaws. In a research done by Laura E. Buffardi and W. Keith Campbell, they found out that narcissists post in their “about me” section and status updates are mostly self-promoting. They do this by posting less entertaining but much more intelligent quotes.

In the same research, they also found out that narcissists’ photos are more attractive that those of the nonnarcissist. They also post photos in which they look more attractive and self promoting. Narcissists are also afraid of creating strong bonds. The unique “Friend list” of Facebook creates “weak ties” since the friendship of the two individuals in Facebook is imaginary. It means that some of a narcissist’s friends may be friends in real life, but other, most likely most of the FB friends, relationship or bond is only on the online entity, or simply imaginary. In the same research by Buffardi and Campbell, they found out that narcissist have more Facebook friends than nonnracissistic individuals.

Narcissists seek attention and approval, they do this to gain or maintain their self-esteem. In this world where SNSs dominate the lives of most people, especially the youth, it is not surprising to observe that narcissist fulfill their needs through SNSs, particularly Facebook. Conclusion Social Networking Sites, like Facebook, help people in many ways especially in communicating, but it also have consequences like promoting narcissism.

Facebook promotes narcissism because its unique feature and characteristic stated in the body of this paper (e.g. SNSs’ giving the users almost full control over information disclosure, and Facebook’s unique “Friend list” that create “weak ties” which a narcissist seeks) aid their needs for exhibition/self-presentation and formulating connection of weak ties to boost their self-esteem. This unique characteristic and feature of Facebook promotes narcissism of the Filipino youth. Limitation This paper only focuses on the Filipino youth. The findings in this research paper may not be plausible to other sectors. This may affect by the culture, etnicity, age, gender, and other external and internal factors.

Analysis on the characteristics and features of Facebook Essay