Introduction to the Business Environment

Introduction to the Business
Environment

Table of Contents
 Introduction
 Forms of business organization adopted by Facebook
 Purpose of Facebook when it was formed
 Facebook’s stakeholders and their objectives
 VARIO and PESTEL Analysis
 Conclusion
 References

Introduction
Business environment of an organization involves all of the internal as well as
external factors that can affect its functions. This can include the employees,
management, customers supply as well as demand. The business environment
can either be external to the company or external to it. This presentation is
based on the organization Facebook, which is an American company offering
various services related to social networking.

Cont...
The company was founded in the year 2004 by Mark Zuckerberg, Eduardo
Saverin, Dustin Moskovitz, and Chris Hughes. It was founded as Face Mash,
an online service for students so that they could judge the attractiveness of
fellow students. The presentation explains the different forms of business
organizations along with the one that Facebook has adopted since its
inception.

Forms of business organization adopted by Facebook
Sole Proprietorship – A lot of small businesses are started by sole proprietors or owners
wherein they receive all the profits that are earned by them. Also, the owner of the
company makes all important decisions for it and has complete control over the business
operations.
 Partnership – In a partnership, one or two people share the ownership of a
company and collectively make decisions for the same. Also, all the profits that are earned
by the company are shared equally by them. Facebook has adopted partnership form of
business organization since its inception. A partnership business organization is easy to
establish.

Cont...
Corporation – A corporation can be referred to as unique entity, separate from those
who own it. A corporation can be taxed, sued and enter into contractual agreements.
The corporation has a life of its own and does not dissolve when ownership changes.
 Limited Liability Company - A limited liability company or LLC is a hybrid
business structure that provides the limited legal liability of a corporation and the
operational flexibility of a partnership or sole proprietorship. However, the formation
is more complex and formal than that of a general partnership. Forming an LLC
requires the business owner to file legal paperwork.