Meta Platforms’ (formerly Facebook Inc.’s) organizational structure is a variation of the traditional organizational structure of businesses. The company’s structure is adapted to suit the needs of operations involving information technology and the Internet. Meta’s organizational design and corporate structure define the composition of the organization to meet its needs. Firms have different business structures based on the nature and goals of their businesses. In this business analysis case of Facebook, the corporate structure is a response to the dynamics of the global online social media market. The nature and characteristics of the social network, advertising services, and the business goals based on Facebook’s (Meta’s) corporate vision and mission statements partly dictate the company’s needs. These needs are translated to the features of the organizational structure that Facebook uses to support its business. The appropriateness of its company structure facilitates Meta’s growth and development.
Meta Platforms has an organizational structure that enables its social media, marketplace, and advertising business to expand and diversify. This corporate structure also yields competitive advantages to make the company’s online social network resilient against competition. Even though the Five Forces analysis of Facebook (Meta Platforms) shows that the force of competition is moderate, measures are needed to address the aggressiveness of competitors in the international market. Facebook’s competitors include the social media and advertising services of Google (Alphabet), Snap (Snapchat), Microsoft’s LinkedIn, and X (Twitter), and the marketplace services of Walmart Marketplace, Amazon, and eBay. Facebook must continue enhancing its company structure to counteract the negative effects of competition.
Facebook’s (Meta’s) Organizational Structure & Its Features
Meta (Facebook) has a matrix organizational structure. The key characteristics of this structure address Facebook’s organizational needs, especially the need for creativity and innovation. The following main features of Meta’s corporate structure are notable:
- Corporate Function-Based Departments
- Geographic Divisions
- Product-Based Divisions
Corporate Function-Based Departments. Meta Platforms maintains corporate departments that correspond to teams based on their business functions in managing operational activities throughout the organizational structure. This structural characteristic is based on the various needs of the online social media business. For example, Facebook needs technological research and development. Because of the matrix corporate structure, some function-based departments have blurred boundaries with geographic and product-based divisions in the company. A senior manager or executive heads each department. Strategic decisions from Meta’s headquarters are implemented through the hierarchy of these function-based departments, affecting Facebook and other business operations and subsidiaries. The following are the main corporate function-based departments in Meta’s organizational structure:
- Office of the CEO
- Finance
- Operations
- Product
- Technology
- Legal
- Strategy
- Diversity
- Privacy Policy
- Product Privacy
- Marketing
Geographic Divisions. Regional divisions are another major feature of Meta’s corporate structure. Geographic location is a determinant of this structural characteristic. Facebook uses these divisions in light of the regional differences in social networking and online advertising market dynamics. This organizational structural characteristic addresses differences among the behaviors of people and advertisers in using Facebook’s social networking websites and apps. For example, Latin American advertisers tend to use Meta’s social media services differently, compared to European advertisers. Human resources are also managed regionally. Geographic factors are included in strategic management to address the external factors in the remote or macro-environment of the business, as shown in the PESTEL/PESTLE analysis of Facebook (Meta Platforms). Because of the company’s matrix structure, some of these geographic divisions share resources and managers with function-based teams. The intersections between geographic divisions and function-based teams determine many aspects of Facebook’s (Meta’s) operations management strategy and productivity measures. Even with these geographic divisions in its corporate structure, not every region has a senior corporate executive team. Instead, regional management teams are used. Meta’s organizational structure includes the following geographic divisions:
- United States and Canada
- Europe
- Asia-Pacific
- Rest of World
Product-Based Divisions. Facebook employs product-based divisions in its organizational structure. This structural feature involves corporate or global teams that manage Meta’s operations pertaining to specific products. The global or corporate scope is a consequence of the digital and online nature of Facebook’s social media business. While most of the company’s operations are focused on its social networking services, potential expansion and diversification are also considered. For example, the business is headed toward changing or adding more product-based divisions in its corporate structure, as new products or ventures are made. Such changes influence Facebook’s (Meta’s) marketing mix or 4Ps. Marketing strategies and tactics are based on products and their management. Meta’s organizational structure includes the following product-based divisions:
- Family of Apps
- Reality Labs
Meta’s Family of Apps includes Facebook and other social media services, as well as instant messaging and advertising products. On the other hand, Reality Labs includes consumer electronics, software, and related products.
Advantages & Disadvantages of Facebook’s (Meta’s) Company Structure
The matrix organizational structure provides flexibility to Meta and its multinational operations in the social media and online advertising market. This flexibility is a structural advantage that enables the company to easily respond to market changes and trends, reinforcing the competitive advantages enumerated in the SWOT analysis of Facebook (Meta Platforms). Another advantage of this corporate structure is significant corporate control. For example, corporate function-based departments are a characteristic that allows Facebook to maintain control and direction of its operations worldwide. Moreover, the product-based divisions support creativity and innovation in Meta’s product development.
Despite its advantages, Meta Platforms’ organizational structure has the disadvantage of difficulty in implementing directives throughout the corporate structure. This difficulty is due to variations in regional management initiatives, based on the company’s geographical divisions. Still, these divisions are necessary to ensure that Facebook’s business satisfies sociocultural and political variations among countries and regions.
References
- Junge, S., Luger, J., & Mammen, J. (2023). The role of organizational structure in senior managers’ selective information processing. Journal of Management Studies, 60(5), 1178-1204.
- Meta Careers – Locations.
- Meta Platforms, Inc. – Executives.
- Meta Platforms, Inc. – Form 10-K.
- Meta Platforms, Inc. – Leadership & Governance.