University Project: Facebook Analysis (VRIO, PESTLE) & Reflection

This report presents an analysis of Facebook, examining both its internal and external environments. The student team utilized VRIO analysis to assess Facebook's resources, identifying valuable, rare, imitable, and organized assets, including its social network, technological innovations, and well-...Read More

Reflective Log

Table of Contents
Reflection..............................................................................................................................................3

Reflection
I have successfully completed this project learning all the different internal and
external factors that are affecting Facebook. We were working in a team and we make sure
that all the task or equally divided between the team. The team was required to conduct
VRIO and Alices for internal factors as well as PESTLE analysis in order to understand the
external factors that are affecting Facebook and the functions of Facebook. VRIO analysis
was successfully used in order to understand different resources of the organisation that are
beneficial for the organisation. When learning about different resources of Facebook it was
seen that the company has a wide range of resources that are valuable and rare. The team
consisted of six members and the task was divided where three members were supposed to
conduct internal analysis and three members for conducting external analysis. I was included
in the internal analysis conduction. We made sure that we are meeting once a week in order
to discuss our progress with the work. The three of us who were required to conduct internal
analysis kept in mind that we need to take all the resources of Facebook into mind.
The internal resources of organisation were divided into four factors that are valuable,
rare, imitable and organised. When looking at valuable resources for the organisation there
were a number of resources such as the social network and continuously growing software of
Facebook that have successfully helped the organisation to gain valuable resources. All these
are also real resources as the competitors of Facebook cannot copy it easily. The
technological innovations that were continuously brought by Mark Zuckerberg were
considered by us to be the valuable and rare resources. In order to successfully learn about
different resources in imitable and organise category we researched about different resources
of Facebook such as the leaders in Facebook. It was seen that the employees in Facebook are
well trained and the competitors of company cannot copy it easily. This made the resources
important at providing competitive benefits to Facebook. We also load into factor that all the
resources in Facebook were well organised. One of the major exploitation was made by the
organisation to make sure that all the employees are following culture of the organisation. We
came to a conclusion that Mark Zuckerberg have successfully exploited this and the
companies growing and succeeding understanding culture of its customers and providing
them with maximum satisfaction possible.
When conducting external analysis PESTLE was conducted. We have successfully
divided all the six factors and each of the member was required to give their opinion. I

successfully made sure that every team member is working together and team meetings are
conducted from time to time in order to make sure that communication of the progress of
report can be done. We came together in order to discuss different factors we believe that are
influencing Facebook. After all the discussion we came to a conclusion that the political
factor that is majorly affecting the functions of Facebook is political uncertainty of various
nations. When conducting analysis of economic factors we analyse that the reducing
operational cost of company and the unemployment rates of different nation or affecting the
organisation. After this we focused upon social and technological factors. Some of our
members successfully discovered that the technological factors are a great benefit for
organisation as the need to make sure that organisation can gain competitive advantage
increasing their presence on internet. Also the social factor that was mostly affecting the
organisation was the millennial population in different countries who are major customer
base for the company. When we studied about environmental and legal factors of Facebook
we came to a conclusion that sustainability practises of Facebook are well planned in order to
make sure that they are reducing their impact on society. They have also adhered by
environmental protection act 1974 to develop sustainably. Some of our team members also
concluded that Facebook is governed by a number of different laws in different countries.
The organisation is making sure that employees are provided with annual maternity leave,
paternity leave, sick leave, basic pay in order to make sure that employment laws are fulfilled
successfully. These were some of the conclusions which were drawn while our group
activity.
Other than this at various points of time there were some conflicts between the group
members and all of us met affected communication in order to make sure that these conflicts
can be resolved. Due to difference in culture people were unable to understand each other’s
thoughts and values. We had to develop effective communication and also use the skill of
negotiation which enabled us to complete the project successfully. Following all these steps
our team worked together coordinating all the activities and finishing the required task in
stipulated time period.