Social Media and the effects of Business Growth
Limor Elazar
Columbia Southern University

Introduction “Simply put, social media is an “open media for interactive communication led by normal people”” (Dong-Hun, 2010, p. 112). Social media represents new opportunities for businesses to expand their customer base and brand. Implementing social media outlets such as Facebook, Twitter and Tumblr is the innovative way to mobilize immediate marketing. Social media can be a critical factor for business image, many sites allow for customer reviews. Not all of the company’s reviews will be positive but the way the company responds will have numerous consequences for the company’s image.
Problem Statement “One of the biggest threats of social media inaction is to risk having a big, dark cloud cast over the brand” (Overhulse-king, 2010, p 42). Many companies are not aware of the information on social media and do not engage in the use. This can be very harmful for the organization brand. Lack of participation in social media handicaps the organizations by not building positive relations with customers and minimizing negative ones.
Current Situation
All businesses have inherent threats, competition, branding, company image and cost. In order for an organization to continue to grow economically they must integrate social media strategies.
“If corporations were to analyze their opportunities for social responsibility using the same frameworks that guide their core business choices, they would discover, as Whole Foods Market, Toyota, and Volvo have, that CSR (corporate social responsibility) can be much more than a cost, constraint, or a charitable deed – it can be a potent source of innovation and competitive advantage” (Porter M. E., 2006). Social media use in corporation is a tribute to the consumers and surrounding communities. Corporations should view social media as an outlet/inlet to reach numerous consumers, use it as a medium to brand corporation and increase sales volume.
Problem
Organizations associate social media strategy as cost consuming, time producing and ineffective.
The problem continues when corporations refuse to incorporate technology and social media as a pertinent part of the company’s structure. The long term risks are enormous and can include negative company image, reduced revenues and eventually corporate demise.
Decision Statement
Organizations must implement a social media strategy to help rebrand organizational image, draw new customers, increase customer service, and help minimize negative reviews. Social media is changing the way businesses advertise and communicate with other businesses and/or customers. Organizations must keep up with technology to be able to sustain and grow in today’s market, utilizing social media as a communication channel can assist with the growth. “Related research demonstrates that consumers are spending 25% of their Internet time on social networking sites, up from 15% in 2009 (Nielsen 2010)”
Research Objective and Research Questions
Through implementing a social media strategy; such as a website, Google ad words, Twitter or Facebook, corporations can increase company revenue, image and overall growth.
By surveying customers if they are kept informed through social media and engage in social media as a source of product and customer reviews. Corporations can use this format to post positive reviews and draw new and old consumers. Social media can track the number of hits on a website and look at overall sales performance during that time frame vs. prior to engaging in social media.
Hypothesis
Social media can influence business growth if social media strategies are implanted effectively and consistently; organizations will see an increase in sales revenue and customer volume. For organizations who do not implement any social media strategies they are not conscious of the negative feedback and are non-responsive. The lack of knowledge and non-response to the feedback limits the ability to rebuttal. When organizations are non-responsive they take the risk of hurting company image and within time the overall companies revenues.

REFERENCES
Porter, M.E., & Kramer, M.R. (2006). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84(12), 78-92.
Overhulse-King, J. (2010). Ignoring Social Media Growth Can Be Dangerous. National Underwriter/ P&C, 114(14), 42-41.
A, BeiteRapplspacher, L., Grewal, D., & Hughes, D. (2013). Understanding social media effects across seller, retailer, and consumer interactions. Journal Of The Academy Of Marketing Science, 41(5), 547-566. Doi.10.1007/s11747-013-0326-9
Nielsen traffic claims are inaccurate says Facebook. (2008). Media Week, (1151), 14.