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Business Environment Assignment - Facebook Organisation

   

Added on  2020-10-05

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INTRODUCTION TOBUSINESSENVIRONMENT1

Table of ContentsINTRODUCTION..............................................................................................................................31. PESTLE Analysis for Facebook................................................................................................32 .Porter's Five Forces on Facebook..............................................................................................53.Facebook's Resources, Capabilities and Competencies:.............................................................74. SWOT analysis of Facebook......................................................................................................8CONCLUSION:...............................................................................................................................10REFERENCES:................................................................................................................................112

INTRODUCTIONFacebook that was founded by Mark Zukerberg can be assessed by large number of devicesand is facing many challenges including micro and macro environment. People on facebook sharetheir views, ideas, pics and provide ads to expose their companies and products. Nowdays,Facebook Messenger, Whatsapp and Instagram have become popular means to connect with eachother. Daily activities of many companies are updated on websites and advertised on Facebook. Ithas become a major source of conversation in between individuals (Bischoff, 2016). Online mediaplays a major role in marketing and grabbing new customers with showcasing innovative productsand services of organizations. It is a kind of station where companies and general people all aroundthe world meet and share their ideas, emotions and feelings. But it is facing various external andinternal challenges currently. In EU, it is facing the problem of General Data Protection andregulation due to some policies. There is also saturation in ads of news feed in recent years. Thus,it cannot depend on increasing the demand for longer period. There are other competitors likeWhatsapp and Instagram due to which it is facing problems in generating revenue through ads.This report shows the way stakeholders, policies and other factors affect Facebook internally andexternally.1. PESTLE Analysis for FacebookFacebook conducted PESTLE analysis to identify macro factors affecting its performance.It is one of the finest players in international social media market and has ability to maintain itsreputation through brand development, popularity, research and development as well as investment(Chataway and Lichten, 2016). Through this, it has been ensured that its strategies are needed to beimproved and adjusted in an effective manner. It is facing prime competition to other competitivefirms like Snap chat, Twitter, etc. Therefore Porter's Five Forces Model is analysed to strengthenits competitive benefits and support growth and development. Political Factors Influencing Facebook's BusinessPolitical landscape is attached to Facebook's business. Business shape due to politicalmovements and PESTLE analysis influence company's operations. Some political factors areconsidered as opportunities while some are threats. In developed countries, it is stable and due toglobalization, government support is required which are benefits for Facebook. In Chinese market,political barriers exist and sometimes, political actions are taken through online data. These3

opportunities help Facebook Inc. to diversify and expand its business. Its potential growth is not sohigh and is restricted due to Chinese censorship. It shows advertising services throughgovernmental support. Data privacy and security have been increased by displaying advertisingmarket in different countries.Economic Factors Important to Facebook Inc.Some economic factors include rising stability in developed countries and rapid economicgrowth of well-flourished nations which are some opportunities for Facebook and lead toimprovement in infrastructure and telecommunication (Culp III and et.al., 2016). In developingcountries, increase in disposable incomes improves capacity of users to purchase and access itsservices. Thus, through market penetration, multinational operations are conducted which generateopportunities for Facebook Inc. Social or Socio-cultural Factors affecting Facebook's EnvironmentGlobal reach and Facebook's popularity are also influenced by social conditions.Company's trends and other changes impact its environment which are determined by PESTLEanalysis. High quality services are highly preferred and online purchasing is also considered byusers. They get different varieties of products and services. Many users share their ideas, viewsand make payments online which is a secured way of buying products. Support for corporate socialresponsibility is increasing and public is focussing on good quality of services (Dey, 2016). Thus,clients are satisfied and it retains them by displaying advertising services. Various otheropportunities are available to bring companies sales at optimum level. It offers a bettermarketplace for generating social networking sites and other relevant apps.Technological Factors for Facebook's BusinessIt is clear that Facebook Inc. was founded on online technological terms. It indicatescompany's macro environment and affects in various ways. There is much increase in mobiledevices by individuals at home, companies, corporate places, etc. This is an opportunity for thefirm. While, online retail firms are diversified and there is significant increase in number of onlinesocial media firms (Lichten and et.al., 2015. These factors have adverse effect on Facebook Inc.Through mobile apps, user experience can be improved. Moreover, PESTLE forces faceschallenge on the basis of increasing competition as more users are attracted from company's social4

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