External and Internal Company Analysis

Running head: EXTERNAL AND INTERNAL COMPANY ANALYSIS
EXTERNAL AND INTERNAL COMPANY ANALYSIS
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1EXTERNAL AND INTERNAL COMPANY ANALYSIS
Introduction
The study is focused towards analyzing the internal and external environments of
Facebook. The global position and the diversification of interest of the company is analyzed and
evaluated subsequently. Facebook is a social-networking website and company that has become
a global name with an overwhelming global presence.The revenue of the company presently is
55.8 USD. The company has total assets worth 97.3 billion USD (Topic: Facebook, 2019). The
company is focused towards expanding to various diverse markets. Facebook is based in the
United States, headquartered at Menlo Park in California. The external and internal analysis of
the organization is done to further analyze its position in the global corporate environment. The
US operations of the company has been considered for the external analysis.
External Analysis
Political
The political environment of the US is effective for running businesses. In this regards
Facebook does not face any significant challenges from the political environment. The USA has
always focused on enhancing the business environment of the country. In this case the company
can take part in various activities without getting affected by the political climate.The
government has a strong framework that supports the IT businesses of the country.
Economic
United States has a growing and well-structured economy. One fourths of the global IT
market which is worth 3.8 trillion USD is based in the US. Hence, this becomes a significant
factor in determining the infrastructural effectiveness of the industry in the country. Facebook

2EXTERNAL AND INTERNAL COMPANY ANALYSIS
can utilize this good economic growth potential towards its benefit. Economically the IT market
is booming and is expected to grow further.
Social
Like all the major countries if the world social media is also a very important aspect of
the daily lives of the people in the United States. The people are increasingly inclined towards
using social-media for various purposes. The social media penetration rate in the USA is 79%
(Social Media Stats Worldwide, 2019). The population of social media users is growing at a fast
rate and Facebook is the predominant choice of social media users.
Technological
United States is one of the leading countries in the world in terms of technology. The
largest technology companies in the world are based in the USA. Hence, there is ample scope for
the development of newer technologies by the organization. The various IT companies can be
utilized for getting access to the latest technology that is required to foster the growth of the
company.
Environmental
Environmental concern is growing in the technology industry. However, the IT industry
has lesser environmental concern. The biggest concern in the industry is the fact that several Wifi
devices are reported to cause environmental issues (Oyedemi, 2019). However, these factors
does not limit the operational factors of Facebook. The company has good environmental
reputation.
Legal