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Unit 1 BTEC HND in Business Research Regent College Level 5

1445Downloads1 I Published: 04 May ,2020


After the evolution of internet technology in the year 1960s, the whole system of communicating with other. Earlier people use to travel a lot for selling their commodities that was traditional style of marketing but now company has optimise new trends which are according to the market situations (Rennie and Morrison, 2013). Companies are using latest tools and technologies for interacting with other people. Social networking is a kind of web application that are used by many people so as to connect with other individuals who share the same personality, activities or background. Therefore, social networking provide its services through internet. As compared to earlier times now connecting with people at different places is much easier. The purpose of conducting this research is to know the advantages of social networking in an organisation for operating their business in an effective manner. Therefore, this process is adopted by most of the organisation so that internal and external communication can be maintained. LinkedIn is the popular sites that is used for interacting with other firms. Henceforth, social networking sites has become the game changer for every organisation. The report will throw on the advantages that can be gained by the organisation for business operations. Apart from this, various tools and technologies adopted by most of the companies in order to accomplish their task in an effective manner. Relationship between social media tools with growth and development of a firm is included in this report. Although there are many limitations that arises in social networking while performing the task in an effective manner.

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Project Objectives

Aim: To determine the advantages and limitations of utilising social networking in enhancing growth and development of organisation – A case study on Billabong


  • To determine the advantages of utilising social network by Billabong in their operations
  • To analyse the importance of social media tools for enhancing overall profitability and market shares.
  • To determine the relationship between social media tools with growth and development of organisation
  • To determine the major limitations of using social media tools.

Project Scope

In today's market social media play vital role in enhancing the overall growth of the company at market place. By this firm invite larger number of customers towards its products and services which may leads in improving the overall performance of the company. Basically the main aim of using social networking is to develop competitive growth and at the same time also capture customers attention towards the company products and services. With the help of this firm improve their brand image and create strong customers base (Durkin, McGowan and McKeown, 2013). Along with this, by using social networking company enhance their brand image in front of customers which may leads in attaining better success at market place. Basically social networking consider as an important tool for every business organization in order to enhance their performance level. It provide better support in which company improve their performance level by delivering quality services to its customers. In this context there are some main advantage and disadvantages of utilising social networking. This can be understood by following points:


  • Brand awareness: By using social networking company easily promote their services which may leads in creating brand awareness in most effective manner. With the help of this company grab customers attention by enhancing their brand image.
  • Brand reputation: It is also an important advantage of using social networking, by this company enhance their brand image in front of market and also provide better services as per customers needs and wants. With the help of this, firm develop their brand reputation at market place which invite number of customers towards its products and services.


  • Ineffective use: Some time social networking can be used in negative manner which negatively affect the overall brand image of the company. By this customers define their negative aspect which may reduce the profitability level of the company (Scott, 2017).
  • Time consuming: Utilisation of social media take lots of time which negatively affect the business performance because some time company fails in providing quality services to its customers as per their needs.

Literature Review

To determine the advantages of utilising social network by Billabong in their operations

According to Crowe, (2011), social networking is a vibrant tool that is used by companies so that they can communicate with others in order to explain people about their commodities. After the evolution of internet technology, many organisation evolve with their innovative ideas through which they can interact with others. Usenet was the first online community that was developed by Duke University graduate students. Social networks has provided maximum benefits to Billabong and they are using these technologies for making their business more appropriate.

Company is using social media for the purpose of marketing so that customers can easily recognise their brand as social media are very good in introducing their product to its customers. Henceforth, for this Billabong is optimising social network for making its customers aware about their recent commodities. According to Hausmann, (2012), it can be evaluated that around 75% of people are saying that the information that they are getting has influenced their shopping behaviour and improved their brand loyalty. Social networking sites is helping Billabong in improving its sales and profitability due to which an increase in revenues can be seen. Hence, these networking sites attract customers towards their organisation. Billabong is using various promoting tools and broadcasting their advertisement in order to pull maximum number of customers. Company is using different mediums of social networking sites i.e. Facebook, twitter, Amazon and many more.

Other than this, social networking sites are assisting the organisation in improving customer services and for this, Billabong has developed a different departments where consumers can share their problems related to their commodities. Real time information sharing is another advantage of social networking as it enable an organisation in sharing their related information to its employees in a proper manner so that they can accomplish the task in an effective manner. Therefore, company can use social networking for the purpose of interacting with customers and employees as well. Leaders and managers are using this tool for achieving all its goals and objectives. Along with this, it is enabling Billabong in connecting with new customers and it is helping them in expanding their business in other places.

With the change in course of time, social networking has changes the perspective and way of communication. It has provided many opportunities to new tenants and existing companies as well. Through this process business personality can easily share their ideas, recommendations and experiences. Billabong is a renowned company social networking site is helping them in knowing the behaviour of customers, getting suggestions from valuable consumers. This is enabling the company in manufacturing products as per the needs and wants of clients so that they can satisfy their demands. Therefore, social networking is assisting Billabong in conducting their business operation in an effective manner.

To analyse the importance of social media tools for enhancing overall profitability and market shares.

Social media is a new trend in market area and it is helping most of the companies in making their business more appropriate. Social networking help an organisation in making better relation with others so that maximum benefits can be gained. Social media tools has given lot of business opportunities to a large number. This has worked as an aid to most of the firms because of which profitability has increased. There are various tools that are used by Billabong in order to upgrade their business like Facebook, Twitter, LinkedIn and many more. Thus, social media is giving platforms so as to have better relationship with people due to which it is enabling the company in providing additional service to its customers. Billabong is using social media for making marketing strategies which they can optimise in order to promote their products and services for better growth. It is very helpful in building connections with other firms for sharing the new and innovative ideas.

Along with this, social networking keep the company updated according to the current market situations and it assist them in providing services as per the preferences and choices of consumers. Most essential characteristics of social networking is that it provides equal participation of employees so that they can share their views and thoughts for effective growth. Openness in conversation is the another factor that helps an organisation in having better understanding of the plans that company wants to implement in their business operations.

Effects of social media depends upon various factors such as types of product, so that it can be explained in a better manner. Further there are large number of internet technologies that are available in the market and by utilising them company can get maximum benefits. But to take advantage of these, a company like Billabong needs to analyse some basic parts like-Identify business goals, Setting marketing objectives, analyse needs of customers, level of competition and more. In context with setting achievable goals of business helps in deciding which platform of social media they needs to contribute in. It helps in increasing brand image of companies at marketplace as well as in retaining customers. Through its websites and applications of social media like Instagram, LinkedIn and more help in marketing the products of associations in large manner. This process helps in increasing sales performance by 50%. Along with this, identifying need and demand of customers help in making products or services as per their choice. Through social media, people can know about content of enterprises like in business they are dealing with, what products or services are manufacture as well as procedure. This would help them in acquiring commodities according to their needs and generate satisfaction. The content post by companies are reliable on basis of form including text, images, links and more. Therefore, it has seen that a company cannot achieve its success without contribution of social media in a desired manner.

To determine the relationship between social media tools with growth and development of organisation

According to Paul, Baker and Cochran, (2012), The term Social media is a combination of two different words that are social and media. In this term, social refers to interaction of people with others on the basis of common interest. While, media reflects medium or platform through which individuals connect. It allows them to exchange contents with each other. In context with organisation such as Billabong, social media helps in adding value in their commodities in a profitable way. The main reason of organisations behind adoption of applications of social media like Facebook, Instagram, Pinterest, LinkedIn etc. is to marketing their products and making good connection with customers. Personal interactions with customers aid enterprises to gain loyalty. It facilitates in building effective relationship with people of different culture as well as in evaluation of basis need and demand of them by online exchanging information, comments and reviews of them towards their products or services.

Social media proves beneficial for marketing department of a company as it helps in generating awareness among people about its services. It support employees of this divisions in building business class for exchanging knowledge. Social media tools like Blogging, Google+, Podcasting and more aid organisations to gain reliable customers as well. These tools give opportunities to companies to make connections with people through unique techniques. Along with this, in order to gain growth and development of business, enterprises has to manage their presence on social media by posting relevant information on contents. Another component in this process for running a social media campaign is audience engagement. Engaging online with targeted audiences help in making friendly relationship which supports in enhancing brand image, sales performance and good will of a company in a profitable manner. Yet procedure of social media in developing relations with customers take time but generate a great result in improving sales performance also. In addition to this, the more time a company invest on social media platform, they will acquire business partnership also.

This process reduced marketing expenses also as well as improves its brands image also. Therefore, in this regard it has been observed that in order to enhance productivity and profitability of business, an association needs to invest more on social sites and spends time on posting information about creativity and unique features of products as well as how their commodities are different from others. Social media supports a firm in evaluating own strengths and weaknesses also as well as provide techniques and opportunities to improve the same also. Through its application, organisations can measure strategies of competitors also like how they marketing goods or services along which how many people are connected with them like Twitter which shows how many followers a firm has. It helps in tracking growth rate of rivals also. In same context, You tube measure number of viewers who tied with promotional videos. This make them able to change their marketing plans accordingly in order to gain growth and development in an appropriate way.

To determine the major limitations of using social media tools

According to Chu and Choi, (2011), social networking provides lots of benefits but it has some of the limitations because of which companies faces some or the other problems. It is important that company utilise this approach with precautions so that issues can be eliminated appropriately. If any firm is using this method than it can build their negative image due to which overall performance can be hampered. According to the current market situation there are various tools and techniques that are available so that they can communicate with their potential customers. Security and data leak is the biggest concern that act as a barrier in business operations because there are many unethical sites through which there is a chance of leakage in authentic information. They can operate this by using fake IP address, privacy beaches and many more.

Negative reviews from customers can affect the business as this can create a false image of the organisation. If the organisation is not having a clear view about their marketing strategies than a decrease in company's benefit can be seen. Therefore, easy access to hackers can affect the firm by committing fraud activities like identity theft, spam and many more. Thus, company should implement additional sources form which they can secure their data and information. Other than this, an increase in online scam is also one of the limitation of social networking sites as a result stealing of data is carried out. Unwanted and inappropriate behaviour of on social networking sites is increasing day by day and this includes bullying and harassment of an individual is the biggest threat in this.

Billabong is using suitable technologies in order to eliminate all the risk that can create problem in future proceedings. Brand image of the company can be used for an illegal activities or any fake website can be made in which the information can used for misguiding its customers. Social networking can also have an impact on employees relation or ant workplace because workers may not concentrate on business operations and due to lack of interest decrease in productivity can be seen. Other limitations of social networking can be extortion problem annoying troll by random user can affect the business operations as the person may ask for all kind of benefits without investing any of the money in their business activities.

As using social media proves much beneficial in increasing sales performance and brand image of a company. But it includes various drawbacks also like posting authenticate informations and strategies of organisation's products, can be copied and misused by other companies. This would cause in loss of productivity and impact on copyrights also. In addition to this, social media open doors to hackers. In big organisations like Billabong much part of its marketing process is done on internet applications. Therefore, for handling this procedure like what to post and how to represent services of company to online audience, an association needs expert employees in information and research department. If this process is not done in proper manner then it will impact on brand image of a company in negative way. Along with this, gain trust of loyal customers takes much time for new outlets. Marketing through online technique includes long term investment which often takes lot of time in getting better outcomes. It delays in getting expected return on investment. In addition to this, three main areas where using of social media proves useless are generation gap, need of always changing frontier and complexity in judging effectiveness of a company's product. As people of age below 40 are much activate on social sites, so these are taken as targeted audience. But if people are of above this age or of 50+ then it will proves useless. Apart from this, as technologies are changing at rapid rate so, it demands from firms to make changes accordingly.

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From the above mentioned report it has been concluded that, social networking is very effective if the organisation wants to run their business effectively. It enable the company in promoting their firm in different places so that maximum number of people can be aware of the products that enterprise wants to launch. As in recent times most of the people are using social networking because of which it is easier for organisation to communicate with its clients in an effective manner. As a result by optimising a social networking company can reduce the marketing cost as compared to services that other organisation are using. Other than this, it help them in increasing their sales and profitability by delivering good quality products to its customers but sometimes it can create problem in website as access traffic in the link can overloaded. Unethical activities is one of the disadvantage that is increasing day by day, and hackers are stealing the data and information and based on that extortions are taking place. Visit to buy assignments


  • Rennie, F. and Morrison, T., 2013.E-learning and social networking handbook: Resources for higher education. Routledge.
  • Durkin, M., McGowan, P. and McKeown, N., 2013. Exploring social media adoption in small to medium-sized enterprises in Ireland.Journal of Small Business and Enterprise Development. 20(4). pp.716-734.
  • Scott, J., 2017.Social network analysis. Sage.
  • Crowe, A., 2011. The social media manifesto: A comprehensive review of the impact of social media on emergency management.Journal of business continuity & emergency planning. 5(1). pp.409-420.
  • Hausmann, A., 2012. Creating ‘buzz’: opportunities and limitations of social media for arts institutions and their viral marketing.International Journal of Nonprofit and Voluntary Sector Marketing. 17(3). pp.173-182.
  • Ayeh, J. K., Leung, D., Au, N. and Law, R., 2012.Perceptions and strategies of hospitality and tourism practitioners on social media: An exploratory study(pp. 1-12). na.
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  • Greene, J. A., Choudhry, N. K., Kilabuk, E. and Shrank, W.H., 2011. Online social networking by patients with diabetes: a qualitative evaluation of communication with Facebook.Journal of general internal medicine. 26(3). pp.287-292.
  • Rennie, F. and Morrison, T., 2013.E-learning and social networking handbook: Resources for higher education. Routledge.
  • Brown, V. R. and Vaughn, E. D., 2011. The writing on the (Facebook) wall: The use of social networking sites in hiring decisions.Journal of Business and psychology. 26(2). p.219.
  • Paul, J. A., Baker, H. M. and Cochran, J. D., 2012. Effect of online social networking on student academic performance.Computers in Human Behavior. 28(6). pp.2117-2127.
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  • Chu, S. C. and Choi, S. M., 2011. Electronic word-of-mouth in social networking sites: A cross-cultural study of the United States and China.Journal of Global Marketing. 24(3). pp.263-281.
  • Stefanone, M. A., Lackaff, D. and Rosen, D., 2011. Contingencies of self-worth and social-networking-site behavior.Cyberpsychology, Behavior, and Social Networking. 14(1-2). pp.41-49.
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