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Andy Weeger / Neu-Ulm University of Applied Sciences Neu-Ulm / Strategy & Performance Management

The Meta Case Study (CPM)

Strategy and Performance Management

Andy Weeger

Neu-Ulm University of Applied Sciences

August 12, 2025

Learning objectives

After today’s session, you will be able to:

  • translate strategic moves into measurable performance indicators using CPM tools;
  • select and apply the right CPM tool for different types of strategic decisions;
  • perform simple ROI, trend, and break-even analyses using public data;
  • and integrate financial and non-financial measures into a coherent performance view.

Roadmap for today

  1. Introduction
  2. Acquisitions & ROI analysis
  3. AI/AGI investment & KPI trends
  4. Break
  5. Reality Labs & break-even analysis
  6. CPM Reflection (Balanced Scorecard)
  7. Wrap-up

Introduction

Strategic moves are only as good as their measurable results.

Today’s goal: Take three major Meta strategic moves and use different CPM tools to measure and evaluate their performance.

  • Identify the strategic move (given).
  • Choose & justify the right performance measurement tool.
  • Collect & use public data (given links).
  • Perform the analysis (basic calculations, trend observations, break-even estimates).
  • Interpret the results in light of Meta’s strategy.

Acquisition & ROI analysis

Did Meta’s big acquisitions pay off?

Choose either Instagram (acquired 2012, ~$1B) or WhatsApp (acquired 2014, ~$19B).
Perform two analyses:

  1. Strategic future value (simple method):
    Estimate annual revenue in a chosen “mature” year = monetisable MAUs1 × ARPU2.
    Compare this to the acquisition price to get a ballpark ROI.
  2. NPV calculation (finance method):
    Forecast annual cash flows over a given time horizon.
    Assume a growth rate (g) and a discount rate (r) — use Meta’s WACC ≈ 8% if not given.
    Calculate NPV of cash flows and compare with acquisition price.

Conclude whether the ROI appears positive, negative, or unclear — and why.

Sources to use:

Time:
5 min recap individual research • 15 min group analysis • 5 min consolidation • 10 min presentations

AI & AGI investments

Do Meta’s AI bets show measurable momentum?

  • Identify at least 3 KPIs that could indicate progress from AI/AGI investments.
  • Use the sources to observe trends over the last 2–3 years.
  • Discuss whether the trends suggest these investments are paying off now, or positioning Meta for future advantage.

Sources to use:

Time:
5 min recap individual research • 15 min group analysis • 5 min consolidation • 10 min presentations

Break

Reality Labs & break-even analysis

When might Reality Labs stop losing billions?

  • Identify Reality Labs revenue and operating losses from latest reports.
  • Estimate the scale or efficiency gains needed to reach break-even (e.g., “sales must double”).
  • Consider whether such a break-even is realistic in the medium term.

Sources to use:

Time:
5 min recap individual research • 15 min group analysis • 5 min consolidation • 10 min presentations

CPM reflection

Pulling it all together.

  • As a group, create a single Balanced Scorecard that is capable to reflect the performance of all three strategic moves.
  • For each perspective (Financial, Customer, Internal Process, Learning & Growth), note 1–2 KPIs you would track going forward.
  • Look at Meta’s current earnings and assess its performance based on your Balanced Scorecard.

Sources to use:

Time:
5 min recap individual research • 15 min group analysis • 5 min consolidation • 10 min presentations

Footnotes

  1. MAU = Monthly Active Users

  2. ARPU = Average Revenue per User