Research Project. Social networks: How they influenced business and employment

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Extended Essay


Social Networks: How they influenced the Business and Employment?

Sharad Pawar International School

Candidate Name: Karan Sonigara

Candidate number:

Session: May 2012


Living in the age in which social networking was born and saw its growth I was really interested in seeing the various fields in which social networking social networking is used. After learning about the vast useful ways in which it can be used for business and employment I was really interested in finding out in what ways social networks have changed the classical approach to things. So I decide to find out the ways in which social networks have helped businesses and professionals in various fields and accordingly my research question is: Social networks: How they influenced business and employment

Social networking has saved businesses money by saving the costs of conducting surveys and reaching out to the consumers and other businesses in the same field. Similarly professionals in various fields use social networks to look for employment opportunities and stay connected with others in the field. This way they can come together and find solutions to the problems that they might face.

In my essay I have looked at various surveys that were published to see if the possible applications of these networks aren’t just a theory. I referred to and analysed the statistics that I gathered from these surveys. The facts that I gathered are quite interesting and show the popularity and widespread applications of these networks.

Based on these statistics and survey I conducted I found out if the applicability of these networks is only in the developed counties. Also I have secondary gathered data to look at the cost aspects of using social networking for business and employment and seen if these are only for the high income communities or even small businesses can benefit from the use of these networks.

Abstract word count: 287



My topic is ‘Impact of Social Networks: How they influenced the business and employment?’ is based on the subject ITGS. The ever developing technology in the world we live in is fascinating and hence I decided to base my extended essay on a topic in this area.

As the lifestyle today is becoming increasingly reliant on the gadgets and other technology they too are becoming increasingly reliable. These gadgets are also becoming increasingly integrated with the virtual world in order to enhance living and provide an easily accessible social life. This new kind of social life has mainly been possible because of the various forms of social networking that we use. A social network is an online platform that facilitates quick and mass scale communication with the people that have been authenticated by the communicator.

As social life is a dogma of utmost importance in our life, most of us use these facilities to stay connected with their friends and family. This is leading to a major change in our lifestyle. The people nowadays are also changing their spending to more social networking friendly gadgets so they can use the free instant messaging provided by social networks. Even the producers are making gadgets that are focused on improving the social experience. The windows 7.5 phone operating system is a good example of this, where the inbuilt operating system integrates all online social networking experience. However, social networking is not used only for leisure purpose; today a similar service is also used by professionals from different fields to stay connected. This formal use has helped many people to get employed and many employers the right kind of employee for their business needs.

Today the reach of these networks has helped many businesses by saving their costs and helping them improve their consumer relations. Through these networks promoting their products has become easier and they can also get quick feedback and customer suggestions. Finding the right person or a business for a job that needs to be done is no more a lengthy process. All these influences on various walks of life encouraged me to write an essay on a topic that many would associate themselves with in some or the other way. As business is an activity that is really social and personal I decided to find out how social networking has influenced the Business and Employment in today’s world.

History of Social Networking

Social Networking is a child of the internet. Internet which was invented so that all the major scientists that worked for CERN from different parts of Europe could stay connected and stay updated with their colleagues’ work. The internet was invented so that communication could become faster and more accessible. This need gave birth to an invention that is increasingly getting integrated with our daily lives- Computer networks.

Functioning /   IT Background of Social Networking

A network is a structure made up of interconnected hardware components which are used to transmit data; usually the components of the network are capable of communicating with the other components. A network comprises of a server and several nodes. In case of a normal computer network the nodes would be computers or other devices connected to the server but in the case of social networking, the nodes are created virtually on the storage of the server and consist of the details entered by the user. The network topology of social network is made of virtual nodes.

 A social network is an interface which facilitates this communication by providing a better user interface to the users. All the links between the nodes on the network are established by the nodes themselves by authenticating the other as a known person, other links are created when the nodes share common personal interests or opinions. The server here acts as the interface and therefore facilitates fast quick communication. Most of these servers enable the nodes to form groups with the others that share either the same interest or recognized by the node as a friend.

All other forms of social networking use the same basic structure of social networks and change the interface or use client software as their interface.

Due to its increasing popularity on computers, innovation and research in various fields related to social networking was rising and lead to invention of Instant Messaging and Video Conferencing; two very important reasons for the popularity of social networking.

The most popular forms of open social networking interfaces are

  • Online websites (Facebook, Orkut etc.)
  • Phone messaging applications. (Blackberry Messenger, Whatsapp etc.)
  • Mass Multiplayer Online Game (World of Warcraft, Ragnarok etc.)

In my essay, I am going to look at the impact and applications of these services on business practices, employees and employers.

Why businesses and people today need social networking?

Market research: - Many companies use social networking forms to get statistical information from their customers. This way they can work on providing the customers with better service and suit themselves and their products to the customers’ requirement. Since it is cheaper than hiring survey companies to get market research done, it has become increasingly popular. Through social networks businesses can gain information about market share amongst people from various demographics, geographical locations and conditions.

Commonplace: - Businesses and employees use these sites so the small businesses can come together and solve their problems. These websites are used as a forum where people can come together and discuss. Businesses also use these websites to find other business selling the good they need or to find buyers for their own goods and services. These services can help achieve the ultimate business aim of growth and increase the companies’ customer base.

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Certain websites also help companies find partners, investors and help entrepreneurs find all the useful resources they might find useful in their new business. These websites also help connect unemployed professionals with people working at their possible employers to find out more about the working conditions. This is also helpful in operating trade unions.

Videoconferencing and Instant Messaging:-Since videoconferencing is cheaper than travel businesses use it to communicate. This way a formal meeting environment attained while still keeping the costs low. Many companies that depend mainly on teamwork and rely on real-time data for their business operations use instant ...

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