MINDSETS - Creative Confidence

Week 7 Task

An argument about whether Facebook overpaid for WhatsApp when it accumulated the company in 2014 for $19 billion raised doubts among the community. At the time, WhatsApp had more active users than Facebook, with over 450 million, making it surpassing Facebook's user base at the time (Edwards, 2014). In my opinion, I think that Facebook does not overpaid for WhatsApp due to a variety of reasons. I think Facebook paid WhatsApp the amount of money is because of WhatsApp's growing popularity, its potential as a Facebook substitution, and its assurance of independence and free of ads usage. 

WhatsApp gained global recognition as a result of its extensive use. Another factor was the potential danger posed by WhatsApp as a Facebook competitor. Facebook acquired WhatsApp in a move to strengthen its position as the market leader in messaging apps and keep WhatsApp from threatening its market dominance (Isaac, 2023). Considering current issues, the acquisition is actually believed to be an important turning point in tech history.


References

Edwards, J. (2014, February 20). Why Facebook Had No Choice But To Pay $19 Billion For WhatsApp. Business Insider. https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

Isaac, M. (2023, November 8). Mark Zuckerberg Taps the Strengths of WhatsApp. The New York Times. https://www.nytimes.com/2023/11/08/technology/mark-zuckerberg-whatsapp.html

                                                                                                                   (ONG CHENG BIN TP070411)

 

An entrepreneurship culture is super important for companies today. It's all about letting employees think and act like entrepreneurs inside the company. This kind of setup encourages people to come up with new ideas, take some risks, and think outside the box. When this happens, companies get a constant flow of fresh and creative ideas that can make them stand out in the market.

One big benefit of having an entrepreneurship culture is that it drives innovation. When employees are free to try new things and be creative, it leads to better products, smarter ways of doing things, and happier customers. This innovation helps companies stay ahead of the game and stay competitive.

Being entrepreneurial also means being quick on your feet. In today's fast-changing world, companies need to be able to adapt fast. Entrepreneurship helps with that because it encourages a flexible and fast approach to solving problems and making decisions. This agility can be a big advantage in staying relevant and seizing new opportunities.

Having an entrepreneurship culture also makes employees feel good about their work. When they have freedom and responsibility, they're more likely to be happy and motivated. This leads to better job satisfaction, higher morale, and less turnover.

In a nutshell, an entrepreneurship culture is a must-have for companies that want to do well in today's competitive world. It brings fresh ideas, helps companies adapt quickly, keeps employees happy, and attracts great talent.


References

Gupta, R. (2020). Intrapreneurship: A Key Driver of Innovation and Competitiveness. Journal of Innovation Management, 15(2), 45-58.

Smith, A. (2019). The Impact of Intrapreneurship Culture on Employee Morale and Engagement: A Case Study of XYZ Company. Harvard Business Review, 76(4), 102-115.

                                                                                                                   (KEU XUN FENG TP070032)






Having culture in a company or for an entrepreneur is important because entrepreneurial culture can be described as an environment where someone is motivated to innovate, create and take risks. In a business, an entrepreneurial culture means that employees are encouraged to brainstorm new ideas or products. These will also bring enjoyment for employees in their work. 

One of the culture is identifying innovation and adaptation. Entrepreneurship required identify new products and services and adapt to modern world that keep changing. This is the progress to learn and practice creativity. By fostering this entrepreneurial culture, people can stay competitive in society.

Besides, financial backing and capital needs is important to an entrepreneur or a company to grow or adopt risk management. A lot of companies while thinking big and aiming high, they often fail due to undercapitalization. Sometimes, entrepreneurial ideas need financial backing to gain traction. For an example, banks play a key role in providing financial to fund innovations and properly structuring that financing.

Culture is also crucial for a startups company. A startups company need a positive work environment. These promotes work-life balance, foster a sense of community, and encourage employees to excel. Positive culture can stave off high turnover rates, boost productivity, and foster innovation, making startups company more successful and competitive.


References

Tolic, E. (2022, June 8). What Makes a Great Company Culture (and Why It Matters). Entrepreneur. https://www.entrepreneur.com/growing-a-business/what-makes-a-great-company-culture-and-why-it-matters/427347

 SBN Staff. (2019, June 24). The importance of an entrepreneurial culture in established companies. - https://sbnonline.com/article/the-importance-of-an-entrepreneurial-culture-in-established-companies/

                                                                                                                     (SHUM HE TING TP070362)


Facebook paid Whatsapp $19.6 billion from the original $16 billion offered by Whatsapp. $4 billion of which are cash and the rest are Facebook shares. As Facebook share prices soared from $68 to $77.56 when the approval process concluded, the agreed upon 184 million shares inflated by $1.7 billion. (Alison L. Deutsch,2022)

 In my opinion, I don't think that Facebook overpaid when buying Whatsapp as more and more users are using Whatsapp which may become a concern for Facebook. At the same time, acquiring Whatsapp will allow Facebook to combine the users of Whatsapp and Facebook which allows for rapid growth in users. Having more users will allow for a better effect when monetization comes into play as the effect will be multiplied by the amount of active users. This can easily allow Facebook to gain back the money invested into buying Whatsapp.

References

1. Alison L. Deutsch. (2022,March 29). Whatsapp: The best meta purchase ever? https://www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp

                                                                                                                    (WONG JUN REN TP070651)


In 2014, a staggering sum of 19 billion had been questioned whether Facebook had overpaid for WhatApp  (Jim Edwards, 2014). WhatsApp had a massive user base and a rapidly growing platform, which was attractive to Facebook for several reasons. In my opinion, i think that Facebook did overpaid for WhatsApp due to a variety of reasons.

 The first reason is because the deal was scrutinized by regulators, who expressed worries about data privacy and antitrust risks. Dealing with these regulatory obstacles may have increased the acquisition's costs and complexity. While the second reason is that at the time of acquisition, WhatsApp's revenue was relatively low compared to the acquisition price. This led some analysts to question the valuation and the potential for WhatsApp to generate significant revenue in the future (eFinancialModels Feb 28 2024).

References 

Edward, J. (2014 February 20). Why Facebook Had No Choice But To Pay $19 Billion For WhatsApp. Business Insider: https://www.businessinsider.com/why-facebook-paid-19-billion-for-whatsapp-2014-2

 eFinancialModels.com. (2024, February 29). Valuing Deals with Precedent Transactions - eFinancialModels.com - Medium. Medium. https://efinancialmodels.medium.com/valuing-deals-with-precedent-transactions-ed45e3be83c6

                                                                                                                 (SIEW SZE ZHONG TP070951)


Comments

Post a Comment

Popular posts from this blog

Grab wow

      Grab started as a taxi business and has grown as a ride-haling service. It expanded its operation not just in the ride-hailing sector but also in new business such as food delivery. (Duong V.,2024)     Grab has many different services provided. One of which is the GrabPay which is a QR-based mobile payment application. This app is used for payment to their services.  Grab also has GrabFood which is a food delivery service that has given a chance for Grab driver partners to make double their income by becoming GrabFood delivery partners. (Duong V.,2024)     Grab is also good because the customers are able to see the service provider. Grab take as much responsibility for problems related to the drivers. It also goes hyper-local which modify their services and collaborate with service providers to provide an enhanced user experience. One of Grabs unique selling point is user safety. They will only partner with professionals to offer the service...
Read more

Risk management (Group)

Image
  Week 4 Task   Risk management is a solution to solve or reduce threats to an organization's capital, earning and operations. For examples there is some of the risk, such as financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters. Apply risk management will be better prepared and have a more cost-effective way to dealing them. As an entrepreneurs, having a risk management strategy is important. It can reduce the risks involved with starting and maintaining a firm. Risk management strategy's purpose also can reduce the risk of harm towards to your organization while increasing its chances of success. Conducting a risk assessment is an important stage in entrepreneurs' risk management processes. It determining the possibility of potential threats to your company. A risk assessment assist you in identifying the parts of your organization that are the most susceptible and prioritizing risk management measure. ...
Read more