Business Formal Report - Essay Example

?Letter or Memo of Transmittal The Senior Director ABC Benefits of Using Social Networking Medium in Business October 30, 2012 Here is the report you requested regarding the benefit of social networking for a company on October 10. The study involved significant sources and methods which include industry reports and the use of social networking medium by world renowned business corporations such as Wal-Mart, Amazon and Kohl’s Corporation among others in order to determine that social networking can benefit a company by a considerable level. The information which has been gathered from various business organizations revealed that they are highly benefited by using social media while performing their business functions. In relation to the information gathered from different organizations, it can be stated that we should in future expend considerable effort in improving the use of social media with the intention of achieving significant benefits. The action plans or the recommendations outlined in this report reflect the results of research. I significantly hope that this particular report will provide you with the information needed to assess or determine that the important aspect of social networking can benefit our company by a considerable level. Please inform me if you find any doubts or questions about this report or require any further information. I look forward to discuss the report recommendations or action plans relating to the major benefits that can be derived from the utilization of social media with you. Executive Summary The significant aspect of social media or online social networks is regarded to be one of the most incredible technical phenomena in this contemporary world. It has been viewed that most of the renowned business corporations which include Wal-Mart, Amazon and Kohl’s Corporation and other organizations are using the medium of social networking or social media by a greater extent. The aforesaid business companies believe that they can attain their expected business objectives such as enhancing profitability, increasing market share and mounting business reputation by using social networking medium. These organizations view social media as one of the effective business tools in marketing their valuable products in different regions of the world. The various important advantages of using social networking comprise broadening business contacts, enlarging market research and facilitating open communication with the customers. Additionally, the other major benefits of using a social networking medium comprise enhancing business reputation, growing substantial client-base, improving profitability as well as productivity and most importantly permitting the employees to discuss any sort of important ideas or share links with others. In relation to the findings of this study, certain recommendations have been framed in order to improve social media. In this regard, the different business corporations need to create attractive fan pages in order to post recent updates and share as well as upload attractive videos about their different products. On the basis of the above discussion, it can be stated that the use of a social networking medium can benefit the business organizations by a greater extent. Introduction The perception of social networking involves the execution of online mediums or websites that facilitates the people to communicate or converse with their families and acquaintances. It is regarded as an act of networking as well as interacting with others within a social online setting through the execution of websites. The notion of social networking is also regarded as an imperative practice for the expansion of businesses by establishing social contacts or connections with the individuals through the aid of online websites. It has been apparently observed that a large portion of different business organizations employ this significant conception of social networking while performing their business operational functions throughout the globe. The various business organizations strongly believe that the emergence of innovative technological ideas such as social networking is undoubtedly transforming the behaviors of the consumers by a significant level. Moreover, the organizations also realize that by employing a medium of social networking, they can enhance their profitability and most importantly can attain significant competitive position over their primary business market competitors. Due to increased level of technological advancements and business market competitions, the organizations broadly employ the idea of social networking while conducting their businesses in different regions of the world (O’Neil, “Social Media for Business White Paper”). Purpose of the Study The aspect of social networking is incessantly becoming an imperative part for various organizations in order to develop their respective business markets along with increasing their client-base. According to a report published by the “2012 Social Media Marketing Industry”, it has been pointed out that nearly 94% of the organizations use the concept of social networking with the intention of accomplishing their expected business objectives. Moreover, it has also been marked in the report that the approximately 58% of the businesses that have employed the concept of social media through the aid of online websites reported substantial increase in their sales for previous three years (Forbes, “The Developing Role of Social Media in the Modern Business World”). In this regard, the purpose of this study is to determine as well as to recognize the benefits of social networking for a business organization. Finally, recommendations for the improvement of a social networking medium will be portrayed on the basis of the results of this study. Scope of the Study The facet of social networking can be granted as one of the imperative innovations in this contemporary world. It is fundamentally used in order to deliver such a community in which different people can share a broad assortment of information. Moreover, the idea i.e. social networking is also used by different organizations for disseminating valuable information to the customers in order to sell their various products at large (Forbes, “The Developing Role of Social Media in the Modern Business World”). Thus, it can be stated that there lies much broader scope of this study as the perception of social networking is increasingly used by the organizations in order to attain their desired business objectives. Sources and Methods In order to serve the purpose of this study, the valuable sources and methods such as industry reports and the use of social networking medium by world renowned business corporations such as Wal-Mart, Amazon and Kohl’s Corporation among others will be taken into concern. Discussion of Findings According to various social networking based reports and researches, it has been viewed that the aspect of social networking is increasingly receiving much attention from various organizations in order to remain competitive in this competitive business environment. In this similar context, the renowned organizations which include Wal-Mart, Kohl’s Corporation and Amazon among others are extensively using the concept of social media with the intention of accomplishing their expected business results. Their desired business objectives comprise enhancing profitability as well as productivity, increasing market share and most importantly attaining superior competitive advantage over the major business market contenders. In relation to the execution of a social networking medium, it has been observed that Wal-Mart, which is regarded as one of the largest retailers in the world, uses significant technological advancements in order to maximize its operational efficiency. In this regard, Wal-Mart uses social media by making itself available in different online websites like Flickr, YouTube and Twitter. The American business corporation i.e. Wal-Mart aims to deliver its major business activities as well as significant objectives to its worldwide consumers by making itself available in the aforementioned websites. This multinational corporation strongly believes that by employing social networking medium, it can attain huge earnings along with business reputation and can compete with its major business market participants. The company attained substantial amount of earnings in the year 2012 due to its massive promotion of products through the execution of social media (Wal-Mart Stores, Inc., “Walmart's Social Media Guidelines”). Apart from Wal-Mart, another major online retail company in the world i.e. Amazon extensively uses the medium of social networking. The American company possesses separate retail online websites for various countries where it performs its business operations which include Italy, the United Kingdom, Canada, Germany and China among others. Recently, it has been viewed that several retail companies are employing social media in order to promote their various products to their valuable customers. According to certain social media analysts, Amazon has the most social media influence as compared to other companies. The company uses the significant idea of social media by establishing separate retail online websites where it highlights as well as announces discounts of its several valuable products. By exercising such a magnificent practice i.e. using social media, the business reputation and the client base of the company have enlarged by a significant level (Internet Retailer, “Marketing”). Kohl’s Corporation, an American based departmental store, has realized the importance of using social media in order to attain the benefits of enhancing profitability, increasing market share and attaining significant business reputation. It has been observed that the corporation has succeeded to enlarge its online fan base which exceeded 5.8 million in 2011 through the aid of different online websites such as Facebook and Twitter among others. In this similar context, the business entity i.e. Kohl’s Corporation intends to raise its funding as investments in developing social media as well as to increase its online customer bases by a greater extent. Furthermore, Kohl’s Corporation also intends to leverage the benefits from different online websites by introducing and developing innovative technologies for the motive of making simpler especially for the customers to shop and share their shopping experiences with them (Kohl’s Department Stores, “Press Release”). Thus, on the basis of the above discussion, it can be stated that the use of social networking or social media can bring significant benefits to a particular company. Conclusion and Recommendations After acquiring a brief idea about the perception of social networking, it can be stated that this particular concept plays an imperative part in supporting different business organizations to attain their expected business goals. The organizations invest substantial amount of money in order to develop social networking websites or their own online websites. This is due to the reason that the organizations believe that by employing social media, they can promote their valuable products and can also increase their client base by a considerable level. Additionally, the various important features of social networking which include unlimited access, inexpensive, global reach, flexibility and simplicity ultimately have attracted the organizations to employ social media as an effective marketing tool while performing their operational functions throughout the globe. Social networking websites are considered to be the exact locations for collecting as well as storing valuable information relating to the products and the companies. The customers gain explicit knowledge about the products of different companies either in their own online websites or in various websites related to social networking which include Twitter, Facebook and YouTube among others. The organizations need to develop the use of social media in order to raise effective interrelation with the customers and most significantly to achieve desired business goals. Supported by the findings and conclusions of this study, the following recommendations have been portrayed in the form of an action plan to the midsized company to derive benefits by the use of social media. In this regard, the organization needs to create attractive fan pages in order to post recent updates and contact information about the products and the company respectively. In order to enhance social media outlook, the company requires developing separate online pages especially for the customers by which they can share their shopping experiences with the company and provide valuable ideas for the innovation of the products. Apart from creating fan pages and developing online pages for the customers, the organization would have to share and upload attractive videos about their different products. This particular practice would help the company to educate the customers about showcasing what exactly they are offering to them. Finally, the responsible personnel of the organization would have to frequently monitor the upgrades in relation to products and any other corporate related information into their own online or social networking pages. By performing the aforementioned activities, the midsized company can derive considerable benefits from the features of social media which would ultimately result in raising their profitability and enhancing productivity by a significant level (Scribd Inc., “How Online Travel Agencies Can Leverage Social Media to Grow its Business”). Works Cited Forbes. The Developing Role of Social Media in the Modern Business World, 2012. Web. 29 Oct. 2012. Internet Retailer. Marketing, 2012. Web. 29 Oct. 2012. Kohl’s Department Stores. Press Release, 2011. Web. 29 Oct. 2012. O’Neil, Dennis. Social Media for Business White Paper. Documents, 2009. Web. 29 Oct. 2012. Scribd Inc. How Online Travel Agencies Can Leverage Social Media to Grow its Business, 2012. Web. 29 Oct. 2012. Wal-Mart Stores, Inc. Walmart's Social Media Guidelines, 2012. Web. 29 Oct. 2012. Read More