Introduction to Business Environment - Report
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Added on 2020-06-04
Introduction to Business Environment - Report
Added on 2020-06-04
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INTRODUCTION TO BUSINESSENVIRONMENT
CONTENTSINTRODUCTION.........................................................................................................................1TASK – 1 (MACRO-ENVIRONEMNTAL ANALYSIS)...................................................................2PESTEL analysis.....................................................................................................................2Recommendations from PESTEL Analysis..............................................................................5TASK – 2 (MICRO-ENVIRONMENTAL ANALYSIS)....................................................................5Porter’s five force analysis.......................................................................................................5Recommendations from Porter’s five force Analysis................................................................8TASK – 3 (INTERNAL ANALYSIS)..............................................................................................9Resources................................................................................................................................9Capabilities..............................................................................................................................9Core competencies................................................................................................................10TASK – 4 (APPLICATION OF THE SWOT FRAMEWORK)......................................................10SWOT analysis of Facebook Inc............................................................................................10CONCLUSION...........................................................................................................................12REFERENCES..........................................................................................................................13
INTRODUCTION Talking in relation with the business, it involves activities related to procurementand acquiring wealth. In other words, it encompasses all the economic activities relatedto production as well as exchange of products and services. Each and every concern isengaging in some or the other business to earn economic returns (Gillespie, 2007).However, earning returns is not just easy. Many factors are ready to influence thebusiness in both positive as well as negative ways. The companies operate theirbusiness in the market which is affected by various macro as well as micro factors.Thus, to overcome such factors and influence, it is important to assess the businessenvironment. It is includes the surroundings factors that supports or hampers thedevelopment of business. Further, it requires natural resources, human beings andplaces to exist. When all these factors are summed up, it takes the shape of businessenvironment (Heussner, 2012). In addition this, there are macro and microenvironmental factors that influences the operations of the business. Macro factors areexternal to the business and generally include economic, legal, technology,environmental, social and political aspects. These factors potentially influence theperformance of the firm. On the other hand, micro factors are internal aspects thatinclude internal strength, weakness, resources, core competencies, capabilities,strategies and core skills of the organization. Thus, it becomes vital to analyze theenvironment in which the firms operate to have more success and glory. In the present research, the organization taken under consideration is Facebook.The company is the top player in the field of social media. The main reason behind theestablishment of the concern was to make people aware about the things happening intheir near world and enable them to share ideas, photos, day to day activities,viewpoints, videos of awareness and happenings. The products of the firm encompassMessenger, Facebook, Instragram, WhatsApp and Oculus. The challenges being facedby the Facebook Inc. comes under the category of micro environment i.e. competitivesocial media market and macro environment i.e. beyond the developing media industry(Vernon, 2015). All these challenges are impacting the performance level of the firm.Pertaining to this, the current research will undertake complete analysis of Facebook1
Inc. including its internal as well as external environmental analysis. Further, variousfactors will be analyzed that influences the performance of Facebook Inc. the mainpurpose of carrying out the present study is to carry out an analysis of the firm beingperforming at the social media industry of the world as well as to support them inmaking decisions regarding the strategic positions. TASK – 1 (MACRO-ENVIRONEMNTAL ANALYSIS) PESTEL analysis Seeking help through the PESTLE framework, Facebook Inc. will be able toevaluate the most significant factors involved in the company’s macro environment. Thefirm will address the issues and changes being identified in its PESTLE framework.Since, the company ranks top among the social media market, they have thecapabilities to sustain their market position by popularity, thorough research anddevelopment and brand development investments (Murphey and Gause, 1974).However, through this analysis, Facebook Inc. will determine the requirement ofadjusting its strategies so as to make sure that its social networking websites, displayadvertising services and mobile apps sustain its position in the market by curtailing allthe competitors. Thus, this analysis will determine various macro-environmental factorsthat influence the conditions of the firm. The description is as follows: Political factors influencing the Company The business of the Facebook Inc. is related with the political landscape. Withthis element of analysis, the impact of government on the company’s conditions andoperation of business will be identified. There are various political factors that influencethe organization such as stable political environment in the developed economies,political barriers in the markets of China and popularity of government backing forglobalization. Because of the political stability in the developed economies, FacebookInc. has the opportunities to diversify their business in such markets (Gillespie, 2007). Inaddition to this, the company can also avail the prospects regarding expansion of itssocial media as well as services related to display advertising all across the globe2
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