Financial Intermediation & Strategy Analysis

This assignment delves into the works of Mark Gertler and Nobuhiro Kiyotaki on financial intermediation and its impact on business cycles, along with Robert M. Grant's insights on contemporary strategy analysis. Students are required to analyze these theories, apply them to real-world scenarios, and evaluate their practical implications.

ANALYSIS OF BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. An analysis of the wider macro environment within which Facebook Inc. operates that
impact on its performance...........................................................................................................1
TASK 2............................................................................................................................................5
P.2. An analysis of micro environment (Industry environment) within which Facebook Inc.
operates.......................................................................................................................................5
TASK 3............................................................................................................................................7
P.3. Conduct an analysis of the internal environment of Facebook Inc......................................7
TASK 4............................................................................................................................................9
P.4. Application of SWOT framework for Facebook Inc. organisation.....................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
In this documentation, this assignment defines about to some effective external
environment factor of Facebook Inc. organisation which making great impact on its performance
in the social media platform effectively. Moreover, this study also refer to proper analysis of
PESTLE of Facebook Inc. company, these factors assist the business professionals to identify the
business performance in the industry efficiently. Apart from it, this analysis also describe about
conduction of internal environment of Facebook Inc. organisation by which business
professionals can recognise the key resources, capabilities, core skills and core competencies of
the business at global business competitive environment efficiently. Beside from it, this
assignment also reveal about proper assessment of the macro, micro and internal environment by
which business professionals can identify the strengths, weaknesses and threats and opportunities
of Facebook Inc. corporation in social media industry in more effective ways. The top
management of the company require ensuring that, all function of the business is being managed
by its manager in effective manner in respect to sustain in the complex social media competitive
industry in appropriate way.
TASK 1
P.1. An analysis of the wider macro environment within which Facebook Inc. operates that
impact on its performance
Facebook is an American online social media and social networking service company
based in California, its website was launched on February. It mainly assists gradually added for
students at various other universities effectively and high school students as well. Facebook
could be accessed from a large range of devices with internet connectivity, like desktop
computers, laptop and tablet and smartphone etc. this is mainly used by all generation people at
worldwide in order to making their separate profile on it and share status update, share photos,
videos and massages as well (Zsambok and Klein, eds., 2014). This is one of the most popular
social media networking site in the world and it has large number of users around the world
which makes it more popular among various countries effectively. This is one of the biggest
social media platforms and it has several kinds of products and social media services. Its main
products includes Facebook, Messenger, Instagram, WhatsApp and Oculus. Facebook now has
been achieved extreme success at global social media competitive industry effectively. There are
some external factors which affect the business environment at broad range in its global business
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environment effectively and some drives if changes which affect its Macro environment within
the industry efficiently. In case of external environment of each organisation, they have some
areas by which effective development can be gained in more relevant form so that effective
development can be gained in sufficient form (Zott, Amit and Massa, 2011). There some
following external environment factor and drivers of change which make impact in the macro
business environment of Facebook Inc. as following:
ANALYSIS:
Varied of business environment factors are presented here which make great impact that,
these external environment factors involves such as economic, social, environmental, legal,
technological, political etc. however, these are totally external forces of the company which
make impact on its competitiveness in respect to keep the firm ahead in global social media
business environment effectively (Wheelen and Hunger, 2011). These are some elements of
these factors which make influences on the business in more sufficient manner which is,
customers, creditors, competitors, government, social-culture, political parties of the nation etc.
PESTLE analysis of Facebook Inc defines that, they require making adjustment in some of its
strategy to make sure that, its social networking site could get success in the market in more
relevant form effectively.
Political factors: Variety of political factors presented her, the Facebook business is
directly concerned to the political circumstances of the country effectively. The government has
been formulated some effective rules and regulations concerning to the social media networking
site in order to safely uses of these sites in the country effectively. The government of the nation
also furnish effective values to keeping safe each user data at Facebook platform in effective
manner. The issues of privacy of each user data and confidential information is a big factor
which make great impact in increment of operational expenses for the business in effective ways.
Moreover, the social media networking sites has been restricted by the government of the
country in proper manner in order protect each personal data for hacking of particular account on
the website efficiently (Ullah and Lai, 2011). Political stableness of develop countries raise
present opportunities for Facebook Inc. to continue diversifying business in several business in
some markets sufficiently. The political environment of countries, support Facebook firm to
make it popular by supporting globalisation in nation effectively. These political situations
increase the profitability of the business in the market in more relevant form. Thus, it could be
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stated that, business professionals of Facebook company require making changes in several parts
of the corporation's operational level which increase the expensed for the business effectively.
Economic factors: This is also major factor for the business, which make shape of
Facebook Inc. business growth in the market in more relevant form. The business entity has
opportunities to make development in its market penetration by making efforts for developing
nations with its growing economic condition effectively (Trkman, 2010). In case of some of
developing countries, they are playing leading role in increment in telecommunication
infrastructure which is a great opportunity for the firm in case of accomplish their economic
business goals in the industry in effective form. Facebook require assessing its economic
elements in the country effectively. Facebook can raise its business growth by making market
penetration with growing telecommunication sector in more sufficient form in relevant form. The
business professional require to make changes in its telecommunication frequently according to
modern needs and provide attractive feature in them in order to increase economic level of the
firm effectively.
Social factors: Facebook Inc. now has been reached to its global social media market
which has made great influence in social-culture of several countries in the world effectively.
Varied of features presented here, by which each user are utilising its effective features in
context to fulfilment of social needs in communities properly (Teece, 2010). There are several
opportunities presented for Facebook organisation in social media platform for regular changing
its feature and online services as per new customer demand in the market effectively. These
activities might increase the productivity and profitability of the business at macro level in
appropriate way. Moreover, there are several retail companies are furnishing effective
advertising in Facebook app and it website which raise the sales of these companies and give
proper profit share to the company effectively. With the help of utilisation of Facebook app,
mots of the people has been increased in their living standard in more sufficient form.
Technological factors: This is the major factor for Facebook Inc. organisation in order to
making frequent changes in some of its effective telecommunication technology for sustain in
the market in more relevant form. Variety of features are furnishing by the company to its used
in sufficient form and they need to make modification in them time to time as per demand and
needs of each customers in the market effectively. The business entity have opportunity to make
improvement in its app regularly. There are several of its competitors are using the latest
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technology to providing social media services and the firm also need to make use in them
efficiently in order to keep ahead in technological competitive world properly. From the last
decades, it has been seen that, several kinds of technological changes is occurring in social media
industry in respect to provision of effective social networking facilities to their each customer in
the market in more relevant manner (Paul, Yeates and Cadle, eds., 2014). So Facebook Inc.
organisational top administration need to keep up Facebook app with new technology and make
essential modification in it as per customer's needs so that according to increment in social
trends, they need to keep update its app in respect to fulfilment of customer's demand efficiently.
Environment factors: There are some appropriate environment factors presented here by
which make great impact in Facebook Inc. business functions efficiently. The business also
require making improvement in its policies in order to run its operational functions in counties
sufficiently. They business professional require to set up the company's standard which generate
positive impact in environment factors of nations efficiently (Boons and Lüdeke-Freund, 2013).
Facebook company has some threats of regular climate changes in the counties effectively and
many times they face difficulties in terms of furnishing in sufficient services in the business
environment in more effective form.
Legal factors: Some crucial legal factor in several countries which make impact in the
business function and profitability in more sufficient form in order to sustain in the market in
more relevant form. The company need to make use of some of legal consideration while making
major decision towards the company in social media industry. Beside from it, the management
department of the firm need to modify their strategy and company's policies as per the
government rules and regulations in proper formant (Laumer, Eckhardt and Weitzel, 2010). The
business professionals of the corporation need to major focus on all legislation provision which
is necessary for operating business function smoothly and also increasing in customer
satisfaction level efficiently. As per legal norms of several country, Facebook Inc. professional
require to consider all the legislative provisions in their business operations in context of sustain
in the market in more relevant form. According to legal norms, the business operational need to
make decision by considering all legal norms of the social media networking in nations.
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TASK 2
P.2. An analysis of micro environment (Industry environment) within which Facebook Inc.
operates
Variety of internal environmental factors presented here in the company which make
great impact in the profitability and productivity of the business effectively. This is very essential
terms of proper industry environment assessment of Facebook Inc. in order to sustain in the
market in more relevant form efficiently (Johnson, 2016). This provides some effective values to
company's professionals for knowing internal parts performance in effective form and also
identify critical elements of the company which can make great impact in the performance of the
business entity in global social media platform efficiently. With the assistance of Porter's five
forces framework, the business profession will be bale o know about to the key stakeholders of
the company. From this analysis, it could be identified that, the stakeholders of the firm need o
make more informed decision about whether to recommend or invest in the corporation
depended on how it stands relative to its rivals. Facebook inc. Have several types of social media
networks which is Messenger, Instagram, WhatsApp etc. there are some competitors of the
company presented here which is furnishing effective services in the market in order to sustain in
complex competition in more relevant form.
Competitive rivalry and competition with Facebook inc :
There are various competitors of the company presented here which is making more
competition in global business environment of Facebook Inc. Organisation effectively. This five
forces model defines that, how competitors of Facebook company is making great influence in
the company's performance in the industry in more relevant form. There are very fewer
companies working in the industry which furnish online advertising services as Facebook
company provides (Hilton and Platt, 2013). For instance, You Tube LCC which is a part of
Google company has a social media website, that is also offering for giving online advertising
services in the company in more relevant form. However, the lower witching costs of the
company also make impact on transfecting its customer from Facebook to its substitute
companies in the industry in relevant form. Its competitors also major stakeholder of the firm
which make great impact in profitability of the corporation in social media industry efficiently.
Bargaining power of Facebook Inc. customers:
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Customers of the company make impose on Facebook Inc. organisation in order to
provision in which they need to make use of some areas by which effective development can be
explained in more relevant from. Facebook Inc. is leading player in social media industry which
is furnishing effective social media networking services around the world in effective manner.
Various advertising on several companies on Facebook website is also major sources for the firm
for revenue generation from the market efficiently. There are major threats is that, advertising
companies of the companies can use of other modes of advertising of their product and services
in more relevant form (Grant, 2016). Customers of the firm can utilise of television, radio and
print media for advertising which allows them to promote their product and services in the
company in some effective form. This might be negative point for the organisation.
Bargaining power of Facebook Inc. suppliers:
Supplier of online services of Facebook company's is also made impact in the
profitability and productivity of the company in more sufficient form. The firm require to make
utilisation of individual server in order to communicate their advertising services on the website
efficiently (Chavis, Klapper and Love, 2011). In these situations, there are some large firms that
utilise a moderate force on Facebook Inc. there are major suppliers are presented here which
furnish effective services towards production of some equipment and materials which is needed
for the company sufficiently. Suppliers of the company is also major stakeholder of the firm
which make great impact on business performance properly.
Threats of substitutes or substitution:
Substitutes of Facebook Inc. also make negative impact on the business performance in
the social media industry effectively. This might generate effective challenges for the firm at
global business environment appropriately. There are variety of substitutes are presented here
which is negatively affecting the business performance and productivity in the market in more
relevant form (Gertler and Kiyotaki, 2010). There are various Facebook Inc. company's
competitors such as Snapchat, LinkedIn, Google, Twitter which is also furnishing suck kind of
social media services effectively and they have lower cost of furnishing social media services
and also furnishing advertising services on their specific sites effectively. This is also major pact
which must be taken into consideration at the workplace by business professionals in order to
sustain in the market in relevant form.
Threat of new entrance of net entry against Facebook Inc.:
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There are several kinds of companies which is furnishing effective social media services
in the world effective such as Twitter, LinkedIn, Google etc. these are the major player in the
social media networking market. In new technological world. There are always certainty of
changing in the business environment effectively. However, it is difficult to develop such a big
social media platform in the world like Facebook Inc. organisation. Hence, it could be said that,
there are always threats of new entrance in the industry which is the most negative point for the
organisation (David, 2011). As per this circumstance, the business professionals require to
frequently utilisation of industry analysis at global business environment in respect to identify
their key competitors in the market in effective manner. The company need to furnish innovative
technical feature in Facebook app according to modern demand in social media sites.
Competitors of the company is major stakeholder of the business which make influence on the
company's performance and strategy efficiently.
TASK 3
P.3. Conduct an analysis of the internal environment of Facebook Inc.
Internal environment analysis of a company is most important thing for each business
organisation in effective form In context of identify the key performing areas in the business
environment in more sufficient form in order to sustain in the industry in more effective form. In
case of Facebook Inc. company in which, its professionals need to make sure that, they need to
conduct proper internal environment analysis of the firm in respect to determine the key criteria
of the business effectively (Azma and Mostafapour, 2012). Facebook Inc. business professionals
require analysing appropriate internal environment by which they can examine some areas by
which string and weak points of the organisation could be identified in relevant form. There are
following internal environment factor of Facebook Inc. organisation as following:
Strengths and competency: This is the major portion of the company, which must be
identified by its professionals in order to focus on some of its effective criteria in the market in
more relevant form. In case Facebook Inc. organisation, they have major strength which is its
resources within the firm. They have fully dedicated employees and engineers in the company
who is furnishing their best practice in order to achieving organisational goals and objectives in
sufficient form. There are several resources of the company available in the company which is
furnishing effective services in the company in context of accomplishment of their organisational
goals and objectives in relevant form (José Chiappetta Jabbour, 2010). The major resources of
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the company such as social blogs, marketing glossaries, social media marketing tools and social
media analytical tools furnishing effective services towards the company in order to sustain in
the market in more relevant manner so that it could be said that, they have some resources in
effective form which assist them to proper provision of their social media industry services at
global level in more effective form. So that it could be said that, the company need to make
proper development in the industry in more relevant ways. This is also assisted the business
professionals in order to accomplishment of its financial strategic planning in more relevant
manner.
Facebook Inc. capabilities: while Facebook organisation is considered as a leading
player in social media market at global level, so from its internal environment analysis, it could
be said that, it has large number of social media marketing resources by which they are getting
more revenue from the market in effective form. Its resources and organisational capabilities
shows that it require making keep up all efforts in sufficient ways in order to sustain in the
market in more relevant manner in effective form. They have a strong brand image in the social
media market in which furnishes them some effective value by which they are generating more
revenue from the market in relevant manner in order to sustain in the market in effective form.
They have large consumer base with externalities which furnishing them to modify their social
media services in more relevant form in respect to increment in their customer effectiveness in
the business in more sufficient form.
Facebook Inc. competencies: Facebook Inc. Is knows as world largest social media
networking companies in the industry and they have wide range of core competencies in the
industry in more relevant manner. They have some areas by which they can get more success in
the social media market in effective manner (Halbert and Ingulli, 2011). This is most needed for
the organisational professional to identification of core competencies of the company in relevant
form. This can assist them to know about to effectiveness of the organisation in the social media
market at global level in more relevant form. They understand that what their customer is
actually asking form their product and services in the company effectively. It could be stated
that, Facebook is most appropriate option to making use for social media networking and
connecting with peoples efficiently.
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TASK 4
P.4. Application of SWOT framework for Facebook Inc. organisation
SWOT analysis of Facebook Inc. organisation:
SWOT analysis of the organisation is most necessary terms for the company in order to
identify the key criteria factor of the company in more relevant form. Facebook organisation is
one of the biggest social media networking site in the company which furnishing effective social
media services across the world to connecting people from one country to another country in
relevant way. In case of Facebook organisation, its professionals require ensuring that, its
professionals are assessing proper SWOT analysis at the workplace in order to identification of
appropriate strength, weakness, opportunities and threats of the organisation within the industry
efficiently.
Strength of Facebook Inc. company: Internation with website and application: The business professionals of the company is
generating more popularity by making integration in their website and application in
effective form (Boons, Montalvo, Quist and Wagner, 2013). The social media network
has been launching several features in its website and application in order to make engage
with multiple people in sufficient ways. They have some areas by which effective
changes has been made by its website and application developer in the organisation in
effective form. Excellent user experience: Facebook website and application has excellent user
experience which makes it effective brand in the social media market in more relevant
form. In case of the company, there are various people are using Facebook app on their
computer and smartphones' etc. so they have great experience to connect with people via
Facebook using effectively. Understand customer's needs and behaviour: This is also most appropriate strength of
the company in order to make in more popular in the world impressively (Kew and
Stredwick, 2017). Its business professionals effectively understand the each needs of their
user and as per customer requirements and behaviour make modification in their website
and application in more relevant manner. This assist them to make more popular and
successive in the social media industry efficiently.
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Weaknesses of Facebook Inc. company: Weak CTR of advertising: This is most appropriate weaknesses of the organisation about
to click through rate (CTR) which is provides lower response on clicking on some adds
which is showing on the website in effective form. They need to make modification in
some of its adds areas to display each advertising on its website in relevant manner.
These activities could increase the revenue generation potential of Facebook company
from adds on its website effectively. Lacks of some features: There are several kids of features are available on its website but
still some features are missing on its application in effective manner. So that its
professionals need to make improvement in its some of chat and video calling feature in
order to make it more impressively in the business for raising their business profitability
in the market in more relevant manner (Hoffer, 2012). So that it could be said that, they
need to make improvement in some of its essential features effectively. Attitude towards user privacy: The company has numerous privacy features but they also
have some areas by which effective development could be explained in more relevant
form. Their attitude towards users privacy is needed to make more modified in order to
make impressive influences on its users in relevant manner. It can increase the rate of
users on its application and feel safer while using Facebook application effectively.
Opportunities for Facebook Inc. company: Increasing numbers of user through mobile devices: There are numbers of users is
increasing on Facebook app day by day and its professionals have opportunities to offer
more attractive social media networking features on website in order to sustain in the
market in more effective form in order to sustain in the market effectively. They need to
modify effective mobile application time to time in respect to increase its effectiveness
on its users in relevant form.
 Diversify sources of revenue: The major sources of income for Facebook organisation is
from, its organisational adds on its website in proper form (Turban, Sharda and Delen,
2011). They have some areas by which effective development can be executed by
implementing of diversifying strategies on its sources of revenue in context of increasing
its revenue from the market in effective form. Effective advertising features on its
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application can attract more companies towards company's website to give more
attractive advertisement and generate more reveneue form the market.
Threats of Facebook Inc. company:
 Increasing numbers of mobile users: Recently the Facebook has more than 600 million
users and it is increasing day by day in the organisation in effective manner. So it is also
big kinds of threat for the industry which is being cause of reduce its effectiveness in
current market in the industry effectively.
 They have large number of other companies in social media industry which can compete
the Facebook organisation effectively.
CONCLUSION
From the above analysis, it is concluded that, Facebook is one of the biggest social media
networking site in the industry and they are furnishing more attractive services in the company in
more relevant form. They have some areas by which effective development can b explained in
sufficient format. Facebook Inc. organisation need to make use of effective technology at the
workplace on frequent basis in terms of increase its effectiveness on its users in relevant format.
Moreover, this assignment also concludes about there are some effective strength and
opportunities presented here which is must be focused by its professionals in context of keep
ahead in the complex social media competition sufficiently.
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