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Business Environment of Facebook Inc : Report

   

Added on  2020-07-23

16 Pages5273 Words87 Views
Introduction to BusinessEnvironment

Table of ContentsINTRODUCTION...........................................................................................................................1TASKS.............................................................................................................................................11. Evaluation of macro environment wherein Facebook Inc. used to operate............................12. An investigation of the micro environment whereby Facebook Inc. operates........................53. Investigation of internal environment of Facebook Inc..........................................................74. Identification of strengths, weaknesses, opportunities and threats of Facebook Inc..............9CONCLUSION..............................................................................................................................11REFERENCES .............................................................................................................................13

INTRODUCTIONBusiness environment simply refers to an area which includes collection of external andinternal factors (Boons and Lüdeke-Freund, 2013). Each and every venture used to operate in aspecific business environment. It has been recognised that this surrounding consist of differentmacro and micro elements which is having impacts on entire functionalities of all companies.Pestle analysis is considered as one of the way of discovering these effects. This is to beconducted prior to making any policies and starting any business at new location. After that,there is necessity of designing proper strategies in order to so that such influences can beminimised in effective manner. So, it can be said that this tool helps in dealing with every type ofconflicts or problems which may emerge during running business actions. Additionally, it is alsovital for corporations to do evaluation of micro factors. For performing the same, they canenforce porter's five forces as this is a good technique for determining about circumstancesrelated with internal industry and for knowing about essential constituents such as keystakeholders. The present report is based on the Facebook Inc. In this project, pestle analysis hasbeen carried for the referred organisation so as to reveal the effects of external factors. Apartfrom this, each aspects associated with business environment is also going to be described. TASKS1. Evaluation of macro environment wherein Facebook Inc. used to operateFacebook is an American online enterprise which is dealing with services inter- linkedwith social networking and are owning different social media applications including Facebook,Oculus, Instagram, Messenger and WhatsApp. These apps are assisting in connecting wholeworld in single chain like with the help of such digital applications people living across entireglobe can connect themselves with their relatives, friends and distant family members. Besidesthis, civilians can share their views, personal messages as well as images with whom they want.Its webpage was designed by Mark Zuckerberg and his colleagues and room mates in the year of2004. The name of these supporters are Andrew McCollum, Eduardo Saverin,Chris Hughes andDustin Moskovitz (Chen, Chiang and Storey, 2012). This company falls under one of the topmost player in the field of societal media marketing. From a survey , it has been found that theycomprises of vast man – power and an estimated quantity is 25, 105 in year of December 2017.In addition to this, their income ratio was reported as US$15.934 billion in same time period. 1

Facebook Inc. requires to understand concepts regrading macro analysis. For this, theyneed to take assistance of an important tool named as PESTLE framework. It refers to political,economical, social, technological, environmental and legal factors. By applying it , FacebookInc. could recognise about affects of those competences on their working and then can actaccordingly. Constructs associated with such factors can be understood effectively by followingpoints :Political factor : Commercial activities of Facebook is completely inter- liked withpolitical circumstances of nation. For referred venture, legal bodies are showing their worries bygiving security to people regarding their personalised data. The main reason of doing this is toreduce the level of stress of all individual who are using social media apps since there is morechances of leaking of information. So, government are trying their best in resolving this kind ofissues and keeping personal messages and pictures of citizens in appropriate as well as securestyle (Cuervo‐Cazurra, 2011). Apart from this, it has been observed that higher authorities inseveral countries are banning unfair actions like creation of fake account, hacking ofpersonalised information, leaking of videos and MMS and so on. For this they also havedesigned certain rules & regulations which must be followed by each and every people ofspecific nation. If violation of these norms is done by any individual then he or she would betreated as guilty in the eyes of law and punishment will be given as per the severity of suchaction. It is to be noted that governing system of China is acting as hindrance for Facebook andare confining it in taking entrance into its market place. This is considered as main concern. Economical factor : It is most vital element of business environs because its impacts areviewed in terms of development and growing of particular firm. Here – in, concept of GrossDomestic Product (i.e. GDP) comes into picture. The main purpose of conniving this ratio is tofind out the total expenditures relating to investment as well as income that is gained afterserving users. Thus, helps in determining about strength of an enterprise and purchasingcapabilities. It has discovered from a survey that Facebook Inc. had added economic value ofaround 15.3 billion dollars to the economical system of Europe and as a result they are offeringjobs to numerous of jobless person. It has provided occupation to near 232,000 individuals(Briscoe, Tarique and Schuler, 2012). Apart from this, a drastic growth in the engagement ofemployees of this organization for the job of advertising & user recommendations is examinedwhich in turn accrued their brand worthiness and bring it close to 7.3 Euro. In addition to this,2

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