Management at Strategic Level | Facebook

Running Head: MANAGEMENT AT STRATEGIC LEVEL
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STRATEGIC MANAGEMENT

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Table of Contents
Introduction......................................................................................................................................2
External environment of the Facebook............................................................................................2
Crypto-currency strategic intent......................................................................................................4
Crypto-currency barriers to entry....................................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................6

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Introduction
Facebook is known as the American social media and networking organization. Facebook
headquarter is in the Menlo Park, California, United States. In 2004, Mar Zuckerberg has
founded the Facebook. The co-founder is Andrew McCollum, Chris Hughes, and Eduardo
Saverin. Facebook is known as the organization that associated with the social activities and has
the strong brand name. External environment factors are known as the elements that affect the
organization operations and functions (Indris, and Primiana, 2015). External factors affect the
operation of the organization that is known as the rapid expansion of electronic commerce within
business sphere. It will adjust the internal system to keep the update of the changing electronic
commerce and interacts with external settings to achieve the objectives (Adeoye, and Elegunde,
2012). The following discussion will cover the Facebook PESTLE analysis, strategic intent of
the cryptocurrency, and barriers to entry.
External environment of the Facebook
Facebook evolves to address the issues. These are identified in the PESTLE analysis of the social
media business. This analysis model presents the external analysis of important factors in the
organization macro environment. It is known as top player within the international social media
market and has the enough capabilities to maintain the market position by the development of
brand, popularity, research, and investment. This also indicates the requirements to adjust the
strategies and ensure social networking site remains the attractive enough to maintain the
competition from other organizations like Twitter, Instagram (Otache, and Mahmood, 2015).
This is very important for the organization to implement the strategy and strengthen the
organization competitive advantages to regularly grow worldwide.
 Political factors
The business of Facebook is linked to the political landscape. The political environment has the
enough power to shape the business and entire industry progress. The developed nation’s
political stability presents the opportunities for the organization to regularly diversifying the
business in these kinds of markets. It has opportunity to expand the social media services and
display the services of advertising globally which is based on the support of government for the

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globalization. Organization can suffered in China from the political barriers. This organization
has the potential worldwide growth limited due to the Chinese censorship. It can slow down
organization growth. This organization should improve the data security and privacy to regularly
negotiate with the Chinese government and open the display advertising marketing in the nation.
 Economic factors
Conditions of the economy shape the growth of the business. This kind of analysis considered
impact of the economic conditions and trends on the organization remote or the macro
environment. It has the enough opportunity to improve the market penetration efforts within the
developing nations by increasing the economic stability. Economic growth of the nations is lead
to the infrastructure improvement like telecommunications. An external factor helps the
organization to expand the access of social network. Disposable income has increased in the
developing nations and improves the capacity of the users to buy devices and access the
organization services and contribute to the expansion of business. Intensive strategies of growth
and generic competitive strategy brings the more opportunities to expand the multinational
operations by the market penetration (Kim, and Kim, 2016).
 Social
The popularity and worldwide reach is within the influence of the social conditions. The
increasing financial conditions have changed individuals to emphasize the high quality services.
These kinds of social conditions present the opportunity to enhance the standards of quality
services and retain the users that pay to the organization to display advertisement. The online
buying has increased globally that bring opportunity for the Facebook to develop the more
services to profit as retail sales generated by the social networking sites. It has the opportunity to
improve the programs of the corporate social responsibility and satisfy the corresponding user’s
expectations.
 Technological
The organization has the impact of the technologies as consider it was founded in the online
technologies. It has the enough opportunity to improve the experience of the users by involving
the mobile application. This is based on increasing mobile device trend at global level. The trend

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of the social media is helpful for the organization as attract the more users from the organization
social media services.
 Environment factors
The social media business of Facebook is partially linked to the natural environment. This
organization has the enough opportunity to expand the sustainability of the social media business
to satisfy the concern regarding natural environment. This has implemented the effective policies
and standards regarding the waste disposal regarding tis corporate operations. These efforts has
the capabilities to address the improve complexity of the standards of waste disposal (Singh, and
Mahmood, 2014).
 Legal factors
The laws impose the limits and requirements on the business of Facebook. The company has
opportunity to invent and introduce the new products by the expectation of the legal protection
that is based on to improve the patent law around the globe. This organization has the
opportunity to expand its reach in the more area globally. It also has the opportunities to adjust
the services and convey with the government of China to gain the access to the nation’s online
social networking.
Strategic intent
The Facebook has claimed that it will affect the 1.7 billion individuals around the world which
not have the access to the Facebook. It has the huge number of partners like online dealers and
financial organization which focuses to expand its range (Flip, 2019). Facebook has requested to
pitch the account of investment which treasured at the dollar one billion as the functions that
backing for coin and moderate the wild projected swipes and make the cryptocurrency as the
bitcoin. This will propose the dealers to lower payments in place of credit card. Libra will be the
codename for of the Cryptocurrency. This will be the effective period regarding the expenses and
social business networks. It will be also used to offer the low payments to the friends, families,
and others as the service of the money transfer. It will help to deal in the low cost mode
regarding payment to customary ecommerce and simplify the small deals. In Switzerland, the
company has registered the name as the Libra network regarding financial services. This will

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design the constant value to stop the issues and inconsistencies because of the variations in value
and process of cooperation. The company is functioning in many nations for pre-approval
(Catillo,.2019).
Barriers to entry
The company has the plan to launch crypto-currency in 2020. It will face the many barriers to
enter and achieve the success. The main obstacle for the organization will be the confidentiality
as typically relevant to the Libra’s platform and functionality. It will compare to bitcoin which is
world’s biggest cryptocurrency. The company will altered and required the many diverse
regulations. It will not be the organization equity backed asset. Libra block chains should be run
by the payment processors, nonprofits, tech, telecommunications, venture capitalists and many
other businesses known as Libra association. These not manage the Libra but get the payouts
while offered the initial coin and the interest on the equity basket. The legal requirement will be
the most important factor for the organization cryptocurrency. The political issues like Brexit
will diminish organization trendsetting. The emerging nations will be also critical for the
organization as need to follow the strict rules of entry (Casey, 2019).
Conclusion
In the limelight of the discussion it can be concluded that external environment factors are
supportive for the organization to get the success at higher level. It is regularly working to get the
competitive advantage. The company is planning to launch the cryptocurrency as the innovation
and reach to more people and contributing to become more socially and sustainably responsible
for the future.

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Bibliography
Adeoye, A.O. and Elegunde, A.F., 2012. Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria. British Journal of Arts
and Social Sciences, 6(2), pp.194-201.
Casey, M., 2019. A Monumental Fight Over Facebook’s Cryptocurrency Is Coming. [Online]
Available at: https://www.coindesk.com/a-monumental-fight-over-facebooks-cryptocurrency-is-
coming
[Accessed 09 02 2020].
Catillo, M. D., 2019. Forbes. [Online]
Available at: https://www.forbes.com/sites/michaeldelcastillo/2019/06/18/facebook-
cryptocurrency-everything-every-business-leader-needs-to-know/#244f30dc7a31
[Accessed 09 02 2020].
Flip, C., 2019. Facebook wants to create a worldwide digital currency. [Online]
Available at: https://www.economist.com/business/2019/06/20/facebook-wants-to-create-a-
worldwide-digital-currency
[Accessed 09 02 2020].
Indris, S. and Primiana, I., 2015. Internal and external environment analysis on the performance
of small and medium industries (Smes) in Indonesia. International journal of scientific &
technology research, 4(4), pp.188-196.
Kim, H.J. and Kim, B.K., 2016. An entrepreneurial paradox: the moderating effect of the
external environment. Asian Journal of Technology Innovation, 24(2), pp.222-233.
Otache, I. and Mahmood, R., 2015. Corporate entrepreneurship and business performance: The
role of external environment and organizational culture: A proposed framework. Mediterranean
Journal of Social Sciences, 6(4), pp.524-524.

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Singh, H. and Mahmood, R., 2014. Manufacturing strategy and export performance of small and
medium enterprises in Malaysia: moderating role of external environment. International Journal
of Business and Commerce, 3(5), pp.37-52.