Business and Environment: Facebook Company Report and Analysis

This report provides a comprehensive analysis of Facebook's business environment, covering various organizational types such as public, private, and voluntary sectors, with a focus on Facebook as a case study. It examines the company's structure, objectives, and stakeholders, comparing its characteristics to other organizational models like BBC and the Wellcome Trust. The report delves into the relationship between different organizational functions, such as marketing, production, human resources, and finance, and how these interlinkages contribute to achieving organizational goals. Furthermore, it applies PESTLE and SWOT analyses to assess the external factors impacting Facebook, including political, economic, social, technological, environmental, and legal aspects, along with the company's strengths, weaknesses, opportunities, and threats. The analysis also explores how internal strengths and weaknesses relate to the external environment, providing a holistic view of Facebook's position in the business landscape.

Business and Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
P2 Size and scope of different types of organisations.................................................................2
LO2..................................................................................................................................................5
P3 Difference between organisations..........................................................................................5
LO3..................................................................................................................................................6
P4 PESTLE analysis of Facebook...............................................................................................6
P5 SWOT analysis of Facebook..................................................................................................7
P6 Relationship between Strength and weakness with external factors of the organisation.......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment means all those factors which affect the working environment of
the business. It consists of different types of organisation such as public, private, voluntary
sectors etc.
Present study will be based on the Facebook company it is an American online social
media and social networking company. It was founded by Mark Zuckerberg in 2004.Its
headquarter is situated in Menlo Park, California, U.S. It is providing the services of connecting
people easily through social networking(Kolk, 2016 ).
Report will include the different types of organisation and its scope. Further more it will
include relationship between different organisational functions and their linkage with
organisational objectives and structure. It also includes the positive and negative impact of macro
environment upon business operations.
LO1
P1 Different types and purposes of organisations
Organisation means people that are doing different types of work for achieving a
common goal for the business. Organisation may be public, private or corporate sector(Hillary
and et.al.,2017)
Types of organisations and their purpose
Public Organisations : It refers to the organisation that is run by the government and has
owned 50% shares in the company. Examples: Reserve Bank of India, Securities and Exchange
board of India, Bharat Sanchar Nigam Limited etc. The aim of the public sector organisation is to
provide services to the people and also earning profit. In public sector organisation there is a job
stability for the employees. Employees get promotions at higher level in public sector
organisation (Chang, 2016). There is a job security for employees in public sector and extra
benefits are given to the employees such as retirement benefit, pension, medical insurance etc.
For example: BBC company is a public sector organisation as it is British public service
broadcaster company and its purpose is to provide the services in the international markets. The
legal structure of public sector consist of board of directors, non-executive directors and different
committee for taking decision for the company(Volberda and et.al.,2017 ).
Private organisation: It refers to the organisation that are not run by the government or
else run by private group or individual for earning profit. Example:sole proprietorship,
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partnership etc. The aim of the private sector organisation is to earn profit. In private sector
organisation there is no job stability. For example: Facebook is a private sector organisation that
provide services through social networking in the domestic as well as international market and its
main purpose is to earn maximum profit in the market and to increase the share in the market.
The legal structure of private organisation is that it has unlimited liability of the company' owner
and have to prepare memorandum of association and article of association(King, 2017).
Voluntary Organisation: It refers to the organisation that are run by the group of
individuals for sake of providing the help to the people without profit earning motive.
Example:Well come trust is a charity based organisation in London whose purpose is to improve
the human and animal health. The main purpose of this company is to provide money for charity
for the sake of helping others those who are in need of money and to maintain their balance in
life. The legal structure of the company is governed by the constitution as it is a trust limited
company that work for different foundations to provide help to the people(Corvello, Javernick-
Will and Ratta, 2017).
P2 Size and scope of different types of organisations
Factors Public organisation
(BBC Company)
Private organisation
(Facebook Company)
Voluntary organisation
(Well come trust
Company)
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Background BBC company was
founded by John Reith
on 18 October,1992.Its
headquarter is situated
at United Kingdom.
The work of BBC is
funded by an annual
television license fee.
Its revenue come from
its commercial arm
BBC Solutions Ltd
(Herman, Grama and
Stupariu, 2016).
Facebook was founded
by Mark Zuckerberg
on 4 February 2004.Its
headquarter is situated
at Menlo Park,
California,U.S. It is
one of the biggest
technology company
along with Amazon,
Google and Apple. It
provided services from
devices that have
internet connectivity.
Well come trust was
founded by Sir Henry
Well come in 1936.Its
headquarter is situated
at United Kingdom.
The aim of the
company is to
improvements in
health with the support
of some bright minds.
(Schultz, Tand
et.al.,2018)
Objective Objective is to provide
best services to the
people and want to
engage more people
with the company
(Hillary, 2017).
Objective of the
company is to provide
place for the students
that can share personal
news, events,
announcements etc. so
that other people also
get involved in it and
take initiative to share
important news with
the people(Herman,
Grama and Stupariu,
2016).
Objective of the
company is to improve
the research and
development for health
so that more people
get involved with this
charity based trust.
Profit BBC company has
20,916 employees
working in the
company. It served its
It has 30,275
employees working in
the company. It served
its services in the
It has 1057 employees
working in the
company. It is located
in Euston Road,
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services to the
worldwide.
United States. London.
Scope BBC company is the
broadcast company
and its scope is to
carry out BBC news
channel online so that
it cover large part of
international market
As Facebook is a
social networking
company and its scope
is to increase the
greater share in the
international market.
Well come trust is a
charity based
organisation and its
scope is to involve
more and more people
with the company so
that they can improve
the health of people.
Legal Structure As BBC is a public
organisation its
decision is taken by
the Board of directors
and government
intervention is also
there in market share
of the company.
The company is run by
the Board of directors
and the owners of the
company. It has to
maintain
memorandum of
association and article
of association (Kaur,
2016).
This is the charity
based organisation that
work for the people
and run by its owner
only there is no
interference of
government.
Organisation Structure BBC company follows
flat organisational
structure in the
company.
Facebook company
follows flat
organisational
structure in the
company.
Well come trust
follows tall
organisational
structure in the
company.
Stakeholders Stakeholders of BBC
company are creditors,
suppliers, owners,
employees etc.
Stakeholders of
Facebook company are
owner, Board of
directors etc(Musonera
and Weber, 2018).
Stakeholders of
Welcome company are
Biotechnology and
biological sciences
research
council(BBSRC),
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Medical Research
council and other
research funding
agencies.
LO2
P3 Difference between organisations
As all the different types of organisation have followed different types of organisation for
example: Facebook company followed the flat organisational structure as all the employees are
interconnected with each other so the objective of the company is fulfilled by it as all the
employees are working together so that the objective of the company can be achieved Facebook
is the private company and also follows the flat organisational structure so that the company
objective is fulfilled by it (King, 2017). The company can earn the profit by following
organisational structure.
There is strong relationship between various functional units:
Marketing and production: Marketing function always conducts market research and inform to
production department what kind of products require by consumers. They inform about needs of
buyers. Production department follow their information and produce products accordingly. This
aids in meeting the organisational objective, as by this way company easily meet the needs of
buyers and make them satisfied towards Facebook. Firm follows flat structure, this type of
organisation structure aids in smooth flow of information that aids in smoothing functioning
between these departments (Kolk, 2016).
Human resource and finance department: There is significant relationship between both these
functional unit, HR department hires people those who can perform well. They always try that
skilled employees retain in the firm for longer duration thus, they offer them healthy working
atmosphere and motivate them. This supports in minimising recruitment cost. Furthermore,
finance department allocate budget so that HR team can spend money in conducting interview
and recruitment. By this way company can get skilled workers. This will help in meeting the
organisation goal successfully. Flat structure supports in passing information smoothly, by this
way both department can know requirements and can work accordingly (Musonera and Weber,
2018).
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Purchase and finance department: Purchase department manage logistic activities, team buy
raw material and mange stock as well. This helps finance department in handling budget and
allocating sufficient funds to logistical department. On other hand financial department allocate
budget that helps the purchase department in spending money in logistic activities. Both are
interrelated and this relationship helps in effective utilisation of funds and managing cost as well.
LO3
P4 PESTLE analysis of Facebook
Pestle analysis refers to the external analysing of the problems of the company. Pestle
stands for political, economic, social, technological, environmental and legal factors which
effects the functioning of the company. Facebook being the very popular social sites have a
brand image of its own but there are some external factors which effects the company in many
ways ,though there are many negative effects but also have positive effects too (Schultz and
et.al.,2018).
Here presents the pestle analysis of Facebook -
POLITICAL -
Political factors are the factors which relates to the country political conditions,demographic
and the leading party-
 The political connection of countries helped Facebook to spread its business across the
world.
 Though there are some countries which have political agendas which prohibit the use of
Facebook in some countries like China and Korea(Chang, 2016)
ECONOMIC-
Economic factors are the external factors effects the company in following ways-
 a sound and developed economy promotes and boosts the company growth and earning
capacity as the people of developed country are skilled and educated thus increasing the
scope of company.
 While on the other hand if the country is facing financial or economic crises there is
lower scope of the company establishment as the resources are scarce and company have
to utilize those resources only (Volberda and et.al.,2017).
SOCIAL-
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 People uses the face book to communicate from within the country to many other
countries.
 Many individuals earn from the company by advertising,showing, selling and finding
large number of buyers from the country and also across the countries.
 As there is a lots of advertising in middle ,while the user operates its account. Also there
is share of personal information of the users which is a social threat to the company(Kaur,
2016).
TECHNOLOGICAL-
 With the technological expansion there is also a remarkable changes in the technology
used in the company,its expands the user by providing easy access on mobile websites.
 There is lack of security system to protect the data communicated by the users through
their respective face book ID's thus the company looses users (Hillary, 2017).
LEGAL-
 Though there is high risk of losing the users data but there is a patent law by which no
body can copy, edit,delete and modify the data of the concerned company by which no
competitors can alter data of the company.
 Data leakage are most common in social media sites by which the hacker hacks the data
and uses it. With this there is lost trust of users and the degradation of the reputation of
the company and hereby can put the company in some legal affairs).
ENVIRONMENT-
 As the face book is the platform to connect various types of people from different
countries so the people conserving the environment when shares their experience about
saving the environment people gets motivated and also starts saving the environment
which increase the use of Facebook (Chang, 2016).
 The company is using the coal power to generate power in data centres thus having the
negative impact on the environment ,there should be proper utilization of the scarce.
resources and there should be more and more use of renewable resources
P5 SWOT analysis of Facebook
SWOT analysis determines the external and internal factors of the company . It evaluates
the strength and weaknesses of the company. Facebook being one of the biggest and successful
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company dealing with the social media platforms. Here is the SWOT analysis of the Facebook
company which determines the strength and weakness of the company. By evaluating the
weaknesses Facebook can came over the difficulties and make changes in its policies and
procedures(Corvello, Javernick-Will and Ratta, 2017).
STRENGTHS-
 Company being the oldest and trusted company enjoys the strong brand image which in
turn supports the organisation in building its future perspective. As it is highly reliable
brand people connects to it easily and it is having largest customer base which promotes
larger quantity of earning (Herman, Grama and Stupariu, 2016).
 Company have many innovative ideas like it is having app of Facebook also the
messenger used for doing conversations.
 Company having a widest and number one social sites connects the people all over the
world enjoying the privilege of being a global company.
WEAKNESSES-
Though Facebook is fast growing and successful company but it have some weakness also ,swot
analysis determines the weaknesses of the company which are as follows-
 Company being a social media marketing uses the advertising means by internet and web
browsing ,it can create nuisance for the user.
 Talking about the weaknesses the Facebook also have a major problem that is there is
low diversification of work in the organisation .
 Along with this the companies major source of income is through the social site ,mobile
apps, networking which in turn puts the company in vulnerable position if anything goes
wrong with the above mentioned(Herman, Grama and Stupariu, 2016).
OPPORTUNITIES-
 SWOT analysis helps the company to be wider its scope in many other products and
services rather than concentrating on only one type of the working.
 Thus the company should wider its business and grab command over another related
products too. The substantial information should be highly protected so that there will not
be any hacking or copying of data through the sources.
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 Cyber crime and its practices can be reduced by knowing the users and identifying the
valid users and eliminating the fake users (Kaur, 2016).
 So to reduce this company should strict the policies and increase the security system in
the social sites so that the user can have the safe experience using it.
THREATS-
 The company have the imitable data that is there data can be copied and used by any of
his competitors,this is the biggest threat for the company.
 As the company deals with the social media there is the increased rate of crime in cyber
which involves data hacking, data copying,threatening and cyber abuse.
 Intervention of the government can be major threat if the company uses its social sites
and networking to distract people .
 As the Facebook is easy access and having a transparent working there are chances of
duplicacy of the company works. And any new social sites could be opened (Volberda
and et.al.,2017 ).
P6 Relationship between Strength and weakness with external factors of the organisation
As Facebook is the oldest company and it has good brand image in the market as it is the
strength for the company and it is related to the political factor of the environment as if the
company is working good and stable then the external factors are related as if the country's
stability is good then the company can work easily in that environment. The company is working
through social networking and if the some technical issues come in between the work then it will
affect the working of the company that relates to the technological factor of the environment. If
the technology is not good then the working of the company get disturbed. If the economic
condition of the Facebook is not good it will impact on the economic factor of the environment.
As if there any increase in the inflation rate it will impact on the economic factor of the
environment (Musonera and Weber, 2018). Corruption also affect the working of the company
and it relates to the economic condition of the company. If the company cannot get license of
using software in the company then it relate to the legal factor the environment. As it is illegal to
use software without license in the company. Environmental factors leads to change in the
weather of the environment as if the weather is not good it will disrupt the internet connectivity
through which company can come into the trouble and the working of the company gets
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disturbed. If the company is using the latest technology then it will benefit for it to work in the
company.
CONCLUSION
From the above study it can concluded that business environment plays an important role in
the working of the organisation. There are different organisations such private organisation,
public organisation and voluntary organisation. Public organisation are run by the government
while private organisation are run by the individual and voluntary organisation are run by the
group of individual. The main objective of public and private sector organisation is to earn profit
while voluntary organisation work for social welfare of the people. As different organisation play
their different role in their sector. From the above it can be observed that external factors affect
the working environment of the company.
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