Analysis of Business Environment
Added on 2020-07-22
16 Pages5291 Words31 Views
Analysis of BusinessEnvironment
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................31. Evaluation of macro environment wherein Facebook Inc. operates.......................................32. An investigation of the micro environment whereby Facebook Inc. operates........................63. Investigation of internal environment of Facebook Inc........................................................104. Identification of strengths, weaknesses, opportunities and threats of Facebook Inc............11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
INTRODUCTIONBusiness environment is dynamic in nature and in this, all companies of every sector areincluded. It is of two types i.e. micro and macro environment and these both give a major impacton company when they change. Thus, micro includes close factors that affect the ability ofenterprise to provide services to its customers like company themselves, suppliers, marketingintermediaries, customer marketplace and the public. On the other hand, macro environmentconsiders these as external and uncontrollable factors which influence the decision making,performance and strategies for example competitors, modification in interest rate, cultural tasteor government rules. For identifying these factors, PESTLE and SWOT analysis are the bestways (Boons and Lüdeke-Freund, 2013). Furthermore, this assignment is based on the case studyof Facebook Inc. In this report, pestle analysis is conducted by organisation to minimise theimpact of external factors. Apart from this, porter's five forces model is implemented forinvestigating the micro environment of given company. As well it through light on SWOTanalysis which is conducted for identifying internal factor. TASK1. Evaluation of macro environment wherein Facebook Inc. used to operateFacebook is a type of social networking site founded in 2004 on 4th February (Belás andet. al., 2015). Founder of same company is Mark Zuckerberg, Eduardo Saverin, AndrewMcCollum, Dustin Moskovitz and Chris Hughes. As well social media includes WhatsApp,Messenger, Instagram, Oculus and Facebook. Now a days, people are more found of such appsbecause it helps in connecting people across the world. Besides this, it assists in sharingimportant information and data because no other person can see what is sharing on. For usingsuch social media App, there is the requirement of registration on this with respective mobilenumber through which individuals have to contact others (Chen, Chiang and Storey, 2012).Facebook is one of the top social media marketing companies. From a survey, it has beenrecovered that they comprises of vast man – power and a computation quantity is 25, 105 inDecember 2017. Moreover, their income ratio was reported as US$15.934 billion in December2017.Macro analysis concept should be understood by Facebook Inc. For analysing all thesefactors, PESTLE is the best tool which includes political, economic, social, technological,1
environmental and legal factors. Through this, given firm can recognise several external factorsand after that work according to that. So they can minimise negative impact and grab positiveelements as well apply in their day to day business activities. Description of PESTEL is givenbelow:-Illustration 1: PESTEL Analysis(Source: Pestle analysis, 2017)Political Factor: In developed countries, political factors are stable which bringopportunities for Facebook Inc. to continuously modify its business in these markets. As wellevery nation having their own political circumstances so as per these rules and regulation givenenterprise have to provide their services (Cuervo‐Cazurra, 2011). For mention undertaking,legal bodies are displaying their concern by providing security to users related to theirpersonalised data which they are sharing with the use of social media. Main motive of doingsuch thing is to reduce the stress level of individuals and providing them security that data2
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