VC7

Question #11:  List the pros, cons, and unknowns if Facebook were to seek a way for the Chinese government to allow its expansion into China. What are the risks if the firm remains out of the country? What do you think the firm should do?

Determine Facts & State the Problem

Facebook wants to expand its platform to the Chinese territory but it needs to consider the pros, cons, and unknowns of the risks if the firm remains outside of the country. 

Identify Stakeholders

• Facebook & shareholders

• Facebook users

• Chinese government 

Identify Relevant Factors

Pro of expansion into China gives access to a large market due to the high population which gives potential for significant boost of engagement and revenue/market growth. Another pro is the increased global presence of Facebook, allowing for more people to connect across the world and businesses to engage a larger audience. On the other hand, potential con of expansion is the strict government policies  and content restrictions that could compromise free speech and privacy of Facebook. Backlash could also be faced from users that do not agree with policies or changes made to allow operations in China. The unknown of this expansion is how involved the Chinese government would be and weather Facebook will be successful in this new market. 

List Options

• Facebook askes Chinese government to expand, they say yes

• Facebook askes Chinese government to expand, they say no

• Facebook asked Chinese government to expand, they negotiate

• Facebook looks to expand to different market

Tentative Choice

After considering all of the pros, cons, and unknowns of Facebook expanding into Chinese territory, I believe it is a smarter decision to not expand into China. Although negotiations could be made to Facebook so it complies with the Chinese government, overall, this would be a greater loses for the core values and purpose of Facebook.