Social Media Role in Strategic Management

Shukor Embong
Universiti Teknologi Malaysia

Abstract: Strategic management can be defined as the organization activities and processes to
coordinate all the resources and actions with the organizations mission, vision and strategy. The
organizations resources aim to achieve its goals and objectives. Social media become one important
resource for the organization in order to communicate with the customer and the worker. Social
media act an important marketing role in the organization, but it can do more than that. Social media
can bring in new customer or clients and help organization better serve the current organization
base. On the other hand, there is a lot of social media tool available online which contribute to the
organization benefits. However, not all the organization well known about how to fully utilize its
usage within organization environment. This work involves exploratory study. Strategic management
has a strong relationship with the social media usage. This paper also identified social media usage
in both environments that complement the employees and brand strategy.
Keywords: strategic management, social media, social brand

1.0

INTRODUCTION
Strategic management can be derived as a system that combined all: corporate values,

planning capabilities and organizational responsibilities, that produce strategic thinking with
operational decision making at all levels and include all functional lines of authority in a
corporation (Zafar et al., 2013). Strategic management is about identification and description
of the strategies that upper management carry in order to achieve management goals, better
performance, and a competitive advantage for the organization (Msg, 2013). In addition,
strategic management also is a collective of decision and acts by upper management
undertakes to result of the organization performance. The upper management must compete
with good knowledge and analysis to take the right decision.
The swot analysis is one of the tools that can assist the organisation to address issue
relate to the strength, weakness, opportunity and threats (Kiptoo and Mwirigi, 2014). Swot
analysis must be conducted throughout the decision making process in order to ensure that
the best possibilities for the organization. Moreover, it helps the upper management identified
1

how the organization going to use its strengths to grab the advantage of the opportunity and
to overcome the threat. In addition, it can be used by the organization to minimize all the
flaws and weaknesses over the threats.
Other than that, the organization must commit with good resources to ensure that the
organization achieve its company goals and objectives (Iamratanakul, S., 2014). Generally,
strategic management involves with four important processes: setting organization objectives,
analysing the competitive environment, analysing the internal organization and evaluate the
strategies.
Figure 1.1 illustrates the strategic management process involves in the organization.
The first phase in the organization, the process of collecting, gathering, and providing the
information are occurred in the environmental scanning that is for strategic purposes (Zafar
et. al., 2013., Jamali, G. et. al., 2011). The objectives to help the organization identify the
external and internal factors that might influence the organization. After that, upper
management of the organization involves in process of deciding the best action to be taken in
order to align with the organizational purposes.

Strategic
Management
Process

Environment
scanning

Implementation
phase

Formulation
phase
Figure 1.1

Strategy
evaluation

The Strategic Management Process

Moreover, in the implementation phase, the organizations team executes the

strategies as chosen in the previous step. Strategy implementation includes some activities
such as design the organizations structure, distribute the resources, develop the decision
making process and also manage human resources. After some period of time, throughout all
the process, the strategies have to be measured and evaluate. It is to ensure that the strategies
taken and the implementation process meets the organizations objectives. In this phase, the
evaluation must cover the internal and external factors, the performance as well as corrective
action taken.
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Treem and Leonardi (2012), and Bochenek et al. (2013), believed that one factor to
improve organizational process by using new social media technologies. Social media can be
defined as the online application and technological foundation of Web technologies which
people used to share knowledge, experience and exchange of user-generated content
(Laroche. M., et. a., 2012). It can be categorized into social networking sites, wikis, social
tag, blogs and microblogging. However, in their research, the scholars have failed to explain
how to fully utilize the social media in organization differ with the use of computer-mediated
communication such as email, teleconferencing, intranets, decision support system and
instant messaging.

2.0

SOCIAL MEDIA IN ORGANIZATION

Over the last decades, social media become one of the most influenced by web-based

technology and had impact to our lives; it has become widely accessible (Sedej and Justinek,
2013). Some organization is aware and already acknowledge the value of social media and
benefited from its positive outcomes. The most popular social media tools are social
networking sites (SNS), microblogs, podcasts, wikis and blogs (Tream and Leonardi, 2012,
Justinek, 2014., Weller, 2016).
In fact, social media represent the great way to establish two-way communication
between people in a particular organization. It is becoming the most popular method of
communication not only for the employees, but also to simplify the dissemination process of
information within the organization structure. The technologies also help to improve
organizational process whereby they fully utilize the uses of social media (Tream and
Leonardi, 2012) and also computer-mediated communication (CMC) such as email,
teleconferencing, intranets, decision-support system, and instant messaging.
Social media also has gone beyond individual interest to the business scope
(Stockdale, et. al., 2012). There is also an evidence that the smaller business can gain
business value from the use of social media for internal and external purposes (Olivas-Lujan
et al., 2013). Generally, social media in strategic management are used in two major factors
which are: for internal and also external communication. Internal communication involves the
communication between internal audience of companies. Moreover, external communication
involves product and brand strategy.

2.1

Social Media: Internal Communication

Internal communication is a vital part of every upper management activity in order to

ensure company productivity and avoid obstacle among organizational members (Justinek,
2014). Over the past years, web based technology has impact our daily lives: widely
accessible. Effective internal communication aligns within organization goals. Moreover,
traditional communication in internal communication is failing to deliver the positive
outcomes. Most of the organizations are already known that social media can provide them
the benefits of communication and also organization itself. However, the key issue for all
communicators is to consider the social media platform will complement and enhance their
traditional communication (Madia, 2011). They should add the social media to their system,
but by no means serve as their replacement.
Social media tools are more democratic which it is used not only for communicating,
but to disseminate information within the organization. It is also web-based and easy to use.
The organization also must complement the social media because of it attracts young
generation and mobile employees whom use it as their part of the business and support
private lives (Coursaris et al., 2016). Social media has a positive impact on internal
communication such as: providing the organization with new opportunities, information
sharing, building relationship, and facilitating collaboration between employees. With its
benefit, knowledge and ideas can be easily captured and employees are more connected. In
addition, the organizations reputation positively influenced the organization perception, and
also can benefit employees social media activity.
However, there are some risk employees on social media usage. Dreher (2013),
mentioned that social media cannot be fully regulated and controlled. The significant risks
that lead to the organization are less of employees productivity, message and brand voice
inconsistency, social media crises and public relation, loss of confidential data, mismanaged
and misplaces business records, exposure of company secrets and security breaches (Dreher,
2013., Agresta and Bonin, 2011). The key that highlighted of the usage of social media
among employees is they use the platform to express their feeling which it will force
organization to make decisions quickly without taking action on the precise information.
In order to cope such of risks, there are a few steps for organization or management to
approach on social media issues (Sedej et al., 2013 and Dreher, 2014). Figure 2 illustrates the
steps taken when considering the use of social media in internal communication among
4

employees to avoid social media risk. First step is to do the research. Research is the process
to gain thoughts of employees attitude about social media, in terms of why, what for, how
they use, their knowledge gaps, interest and concerns. In addition, it includes how employees
and upper management see the organizations corporate culture. Secondly, is in term of access
to the social media network. Many organizations believe that blocking and restricting
networking sites can help them to protect their reputation, but it is only shifts the problem and
does not provide a solution to the risk. In addition, strong commitment from upper
management is one of the essential requirement to embrace social media at the workplace.
The upper management credibility, trustworthiness and authorities will help to gain support
for the changes of social media usage.

Research
Goal setting
and
management

Integration
Maximize the
efficiency and
effectiveness

Employees
perception

Access
Restricted or
freedom

Steps for Social

Media usage in
Internal Usage

Training and
education
Educate user
social media
usage

Commitment
Upper
management
support

Guidelines
and policies
Social media
team

Legal and
lawful

Guidance and
support

Figure 2

Steps for The Social Media usage (Dreher, 2014)

Moreover, the importance of social media team is must be a guidance and support for
employees and upper management where they must fully equip with experiences, social
media skills as well as understand organizational culture. In addition, social media guidelines
are focuses to communicate, legal, to provide a clear understanding of appropriate and lawful
of social media usage at the workplace. It is also to help them demonstrate to the courts,
regulator and stakeholder that they really committed to civil, compliant and correct business
environment (Altimeter, 2011., Flynn, 2012).
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Training and education are focus to educate employees about their social media usage
at work, its risks, rules, policies and procedures (Flynn, 2012). It is to ensure that the
employees understand and embrace their organization values, belief and mission. Last but not
least is goal setting and management. Strategic goals help an organization to identify the
remarkable tactics that lead to the desired result. It is important to determine the outcome and
success of the implemented tactics.
2.2

Social Media: Brand Recognition

Coursaris et. al. (2016) and Tsimonis and Dimitriadis, (2013) share their thoughts that

social media become the of more powerful tools for marketing platform. The attraction of
social media usage among employees has been used as a part in marketing and brand building
strategies. Social media have been used to connect and relate the customer with the
organizational product or brand.
The interactive part of the social media is they allow companies to share and
exchange information with the customer, and also allows customers to share and exchange
with the company (Tsimonis and Dimitriadis, 2013). Even though the social media have big
potential in relationship building, there is a lack of understanding on how the organization
may benefited from them. Some researcher believes that social media comply the unique
opportunity for brands to foster their relationship with the customer. It is also become the
most efficient communication and distribution channel to influence customer.
Laroche et. al., (2013) mentioned that most of the business organizations using the
social media to support the creation and development of brand communities. Brand
communities can be defined as a group of connection and relationship among people who
admire a certain brand (Tsimonis and Dimitriadis, 2013). The benefits of brand communities
are customer perception of new product, maximizing the opportunities to attract and
collaborate with the loyal consumer, influencing members on evaluation and action,
disseminating brand information and most importantly to gain their loyal customer. In
addition, brand communities will provide the opportunities for being in touch with highly
devoted customer who has a valuable information.
With the rapid growth of the social networking such as Facebook, the platform can
boast more than a billion monthly active users. The benefits of social media for brand are
these channels are inexpensive, user friendly, scalable internet, and mobile-based
technologies (Parry et al., 2013). It is reported that Twitter is the most popular social network
6

platform with 82 percent of the companies having Twitter account. YouTube comes second
with 79 percent of the companies having company channel. While Facebook is in third
position with 74 percent of companies having a brand page, counting 152,146 average users
per company page and about 6100 people talking about the brand (Tsimonis and Dimitriadis,
2013). There are some reasons outlined by Dimitriadis (2014) regarding the shift towards the
use of social media.
i.

Decline response rates consumers increasingly ignore the conventional

ii.

marketing such as banner and email advertisement due to disinterest and spam
The development of technology it infrastructure, new tools, huge online

iii.

population
Demographic people (young individual) prefer online methods rather than

iv.

use traditional media

Customer trust is most important that user online trust their friends more

v.

than companies
Low cost viral campaign can produce more engage customers that television
campaign at a much lower cost

These trends of the social media offered have high potential for marketing use of
social media. The employees and upper management can derive the strategies on how to take
full advantage that contribute to the marketing objectives and support marketing strategies. It
is also become remarkable tools to provide new opportunities for consumer interaction.
Table 1.1 shows the benefits of the social media usage in the organization. Social
media can effectively develop brand awareness as well as enhance relationship with the
customer. Social media allows the organization to access millions of people. They also agreed
that social media able to increase sales, increasing the ability of the organization in terms of
communication with customer. By having user in visiting the brands page in the social media,
it is likely to create a traffic for the web site and able to produce more online sales. In
addition, social media also able to distribute content to a more diverse range of people and
user.
Table 1
Benefits/ authors
Increase brand awareness
Legitimize a brand
Increase sales
Improve customer service

Benefits of Social Media Usage Towards Brand

Roesler, P.

Lozano, D.

Agrawal, H.

(2014).

(2016).

(2015)

Distribute content
Learn about audience

Other than that, social media will allow to learn and understand about the audience.
Based on the behaviour and action of audiences in social media, the organization can learn
new dimension about business, target the audience effectively and generate more customer
relationship through social media. The information gather from the audience can be used to
tailor with company interest and adjust the marketing tactics.

3.0

CONCLUSION
Social media have been found its big role in organizational process. As there are many

types of social media platforms, each of them provides different characteristics and target
audiences. Social media does indeed represent a vital role in management and upper
management must aware of this. In addition, its tools are used more often in internal
communication. The success of social media implementation in internal organization is very
much tied to the strong support of upper management and their readiness to implement these
changes. Moreover, there are still a lot of social media tools that can be exposed its usage in
order expand the brand strategies.
Generally, social media is able to boost company identification, stay connected with
the customer and drive sales. Social media used to strengthen the company operation even
though there are many types of companies, operation and also the size. For further research,
the social learning in an organization also must to take into account as social learning can
contribute to the better collaboration and participation in an organization. Moreover, social
learning also used social media as a platform, but in learning perspective. It is not only for the
communication among employees, but it is support for their learning process in the
organization.

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