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(Doc) Analysis of Business Environment

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Added on  2020-12-24

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This report is on "environmental factors of business". In this present report, Facebook Incorporation has been chosen for assessment. This present assessment will focus on the wider macro-environment of Facebook that affects the company by using PESTLE analysis. In addition to this, Porter's Five Forces framework of Facebook will be discussed in detail to assess the attractiveness of the industry where the company operates its business. Furthermore, the SWOT analysis of Facebook will be described in brief.

(Doc) Analysis of Business Environment

   Added on 2020-12-24

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Analysis of Business Environment
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Analysis of Wider macro environment using PESTLE analysis within which Facebook Inc.operates...................................................................................................................................12. Analysis of Micro environment within which Facebook Inc. operates..............................33. An analysis of the internal environment of Facebook Inc..................................................64. Identify the strengths, weaknesses, opportunities and threats faced by Facebook Inc.; statinghow these factors can be used to inform decision making.....................................................8CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONBusiness environment is all about the internal and external factors that affect the businessand its functioning in some or the other way. It covers all the customers, employees,management etc. Every organisation gets affected by the different factor and is required toanalyse the same for running their business operations smoothly. In this present report FacebookIncorporation has been chosen for assessment. It is an American online social media networkingcompany which has its headquarters in California, United State. Company has more than 25,000employees working for it and it is ranked among top four in technology companies. FacebookInc. is serving in all over the world except the nations where it is banned to run the Facebooksite. This present assessment will focus on wider macro environment that affects company byusing PESTLE analysis. In addition to this, Porters Five Forces framework will be discussed indetail to assess the attractiveness of industry where the company operates its business.Furthermore, SWOT analysis of firm will be described in brief. MAIN BODY1. Analysis of Wider macro environment using PESTLE analysis within which Facebook Inc.operatesPESTLE analysis will help in knowing about all the external factors that affects in someor the other way to Facebook Inc. These all factors are discussed in detail to make understand thesame. Political factors :In order to run the business in different nations, Facebook Inc. has to accept all the rulesand regulations of the nations. As the organisation offers a platform to express views it isimportant to comply with the same. It operates in various countries and every nation has differentrules and regulations (Alexander, 2018). Like it affects Facebook Inc. due to the political barriersin Chinese market the company has a big threat of the same. In addition to this, political stabilityin different nations will be a huge opportunity for Facebook to grow its business in socialmarket. Sometimes due to the unstable government rules, the business of Facebook has gotaffected to a great extent. But on the other hand, due to the political stability in countries it hasalso got the opportunity to expand the business. Thus, the political factors such as Taxation, traderegulations of technology and benefits of the internet providers in the internet information1
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providers sector in the country's economy will be analysed. These are required to be determinedbefore entering in to the market so that all decisions can be taken accordingly. Economic factors :This factor of every country where the business is being operated by Facebook Inc. isrequired to be determined. It will help the organisation in knowing more regarding the incomelevel of people and economy of the nation. Like GDP of country affects the business ofFacebook Inc., if the purchasing power and income of customers is low then it will be tough forpeople to adopt technology. Thus, business will not be expanded to a great extent so such factorsare required to be taken into consideration before starting the business in any country. As thecompany has always achieved success and it has more than a billion active users on daily basis.Various people like to invest due to its growth and safety in the future. Thus, all people whoinvest their money in the company are its resources and they are managed properly for its sakeand development (Al Abri, McGillandDixon,2011). In addition to this, Facebook Inc. hasprovided various job opportunities in different nation and raised the income level of peoplewhich is an advantage. In developing nations the improvements of telecommunication andinfrastructure has allowed the Facebook Inc. to grow its business as every developing country ismore likely to adopt higher innovation and technology for their growth and business. Socio- cultural factors : These are the factors which have high impact on the business of Facebook Inc. as peopleand their culture towards the social media acceptance affects the business of Facebook in higherway. Like if in any nation people have thinking on not sharing their personal information toothers than they are less likely to accept and use Facebook. Hence, it will affect the revenue ofthe organisation (Barr, 2014). Other than this, social Sites such as Facebook, Instagram are usedmajorly by young generation people so there is huge population of the country that will use theapplication. So this is also a factor which is required to be considered by company beforeexpanding business in any nation. In addition to this, online buying behaviour and its advertisingthrough social media also has affected the business of Facebook Inc. in positive way to a greatextent. Technological factors: The cited company is all about technology and it keeps on adopting higher version oftechnology to grow the business to another level. This has grown the business and increased its2
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