Question

In: Operations Management

What are the pros and cons of Mr. Zuckerberg’s actions when he acquired Instagram? Do you...

  1. What are the pros and cons of Mr. Zuckerberg’s actions when he acquired Instagram?
  2. Do you believe executive pay packages are justified? Why or why not?

Solutions

Expert Solution

Pros and cons of mr. Zuckerberg's action when he acquired Instagram.

Pros:

  • When Zuckerberg acquired Instagram, he earned more user/Customer to his company facebook.
  • Chances of more investors to his company.
  • Increased the profit to the organization.
  • Enhances the social media and digital marketing activities.

Cons:

  • More maintainance is needed.
  • More employees are required for the organization.
  • Cost for the organization may increase.
  • Increased work load for the organization.

Yes executive pay packages are justified. Because the executive pay packages such as salary, annual bonus, incentives and other benefits are based on the individual performace of the employees. When the employee is performed well and gets the reasonable benefits such as incentives, salary, bonus and awards/Rewards we can conclude that the executive pay packages are justified.

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