Report on Environmental Factors Affecting Facebook Performance and Operations
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Added on 2020-06-06
Report on Environmental Factors Affecting Facebook Performance and Operations
Added on 2020-06-06
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Analysis of BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................3Overview of Facebook Inc. .............................................................................................................31. PESTLE Analysis .......................................................................................................................42. Porter Five Force Analysis for Facebook Inc. ............................................................................73. Analysis of the internal environment of Facebook Inc................................................................84. SWOT Analysis ........................................................................................................................11CONCLUSION..............................................................................................................................13REFERENCES .............................................................................................................................14
INTRODUCTIONAnalysing a business and the various factors affecting it is very much important for theentrepreneurs in order to survive or sustain in a market. This report is in context to Facebook, ahighly popular and profitable name currently in the global market of social media. Facebook Inc.was established in the month of February 2004 by Mark Zuckerberg, headquartered at MenloPark, Califorbnia.It is a leading social media platform in the current market, holding millions ofsatisfied online users. The report will identify macro and micro environmental factors affectingFacebook performance and operations. The report will include application of differentapproaches and analysing tools such as PESTLE, SWOT etc. Furthermore, the report willidentify core competencies, resources and capabilities developed by Facebook to lead the socialmedia market. Overview of Facebook Inc. Facebook Inc. was established by Mark Zuckerberg in the year 2004, It became thelargest social networking media in the world. A Market research of 2014 identified that more that2 billion people are using Facebook. Facebook Inc. offers various software developmentprogramming application and tools to the developers in order to achieve better interface for theend user in mobile application and web application. Facebook Inc. has one popular e-commercewebsite – www.facebook.com and application for smartphones such as symbian, IOS, Androidetc. Both the application and website of mobile allows users in connecting them with their familyand friends all around the world. Furthermore, Facebook Inc. website allows its users to shareown photos, thoughts, tag photos to friends, send friendship request etc. For faster process andmessage developers of Facebook Inc. developed Facebook messenger that is available forAndroid, instagram and IOS. Facebook allows users to transfer media such as photos, music,videos more than 20% faster compared to the chat box in mobile application or website ofFacebook. There are numerous elements or components in the full scale condition which greatlyaffects the capacities and exercises performed by an association or business. These variableshave both negative and positive effect on the business tasks inside an association; for example,Facebook Inc.
1. PESTLE Analysis There are various macro factors which have a great impact on the Facebook Inc., in orderto identify these macro factors PESTLE analysis can be used as following- Political factors affecting Facebook Inc. - Facebook's business or functions is relatedwith the political landscape. In this factor of the Pestle analysis the impact of governmentas external factors' in the organisation's remote or macro-environment are described. Thelegislature assumes a vital part on the business tasks inside an association. The politicalfigures, for example, change arrangements because of fluctuating government greatlyaffects the organisations and their capacities(Zalengera and et.al, 2014). It is vital to thinkabout the political variables while arranging the business methodologies and actualizingthem(Major political factors that influence Facebook Inc. are as mentioned below -1.Popular governmental support for globalisation – Opportunity2.Political stability within developed countries or nations – Opportunity 3.Political barriers in the Chinese market – Threat Political stability of developed nations offers opportunities for Facebook Inc. to continueexpanding its business in these markets. The company also has the chance to grow its socialmedia and display advertising service all around the world on the basis of governmental supportrelated to globalisation. However, Facebook may suffer from political barriers in china, itspotential important growth is limited due to the Chinese censorship. Economic factors essential for Facebook Inc. - Economic conditions assist in shapingFacebook Inc.'s business development and growth. Different nations have differentcontrasts in their financial conditions. The financial states of a nation highly affect thebusiness tasks on the associations. For instance – solid economy increment the buyingpower among individuals while a feeble economy lessens it which negatively affects theoffers of organisations (Abbott, 2015). The economics element of the Pestle analysisconsiders the effect of economic changes and conditions on the organisation's remote ormacro-environment. The economic external factors that affect Facebook Inc. are asdescribed below - 1.Rapid economic growth of developing nations – Opportunity2.Increasing stability of developing nations – Opportunity 3.Increment in disposable income – Opportunity
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