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

Meta Case Pt. 2 (CPM)

Strategy and Performance Management

Andy Weeger

Neu-Ulm University of Applied Sciences

May 1, 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 we look at three major Meta strategic moves and use different CPM tools to measure and evaluate their performance.

Your tasks:

  • 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 = monetizable 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 (e.g., 10 years from the acquisition).
    Assume a growth rate (g) and a discount rate (r).
    Calculate NPV of cash flows and compare with acquisition price.

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

5 min recap individual research + 20 min group analysis & consolidation + 10 min presentations

25:00

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.

5 min recap individual research + 15 min group analysis & consolidation + 10 min presentations

20:00

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.

5 min recap individual research + 15 min group analysis & consolidation + 10 min presentations

20:00

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.

5 min recap individual research + 20 min group analysis & consolidation + 10 min presentations

25:00

Footnotes

  1. MAU = Monthly Active Users

  2. ARPU = Average Revenue per User