Comprehensive Analysis of Facebook's Business Environment Report

This report provides a comprehensive analysis of Facebook's business environment. It begins with an introduction to the concept of the business environment and then delves into Facebook's organizational structure, highlighting its evolution from a sole proprietorship to a corporation. The report examines the purpose of Facebook, its stakeholders (Mark Zuckerberg, employees, users, government, and media), and their respective objectives. It then proceeds with a VRIO analysis to assess the value, rareness, imitability, and organization of Facebook's resources. A PESTLE analysis is conducted to evaluate the political, economic, social, technological, legal, and environmental factors affecting the company. The report concludes with a summary of key findings and references.

INTRODUCTION TO
BUSINESS ENVIRONMENT
Facebook

TABLE OF CONTENT
• INTRODUCTION
• business organisation that the Facebook has adopted since its inception and the key differences among these
forms
• knowledge and understanding about the purpose of the Facebook
• Facebook’s stakeholders and their objectives
• VRIO Analysis
• PESTLE Analysis
• CONCLUSION
• References

INTRODUCTION
Business Environment is an in depth analysis
and examination of all the forces that effect an
organisation's external as well as internal
environment. Facebook is a US based
organisation and can be termed as social
networking medium that provides a platform to
its users for global interaction. Effective
examination of Facebook's business
environment is very essential in order to keep
an eye on the competitors moves and actions
and respond to the same.

BUSINESS ORGANISATION THAT THE FACEBOOK HAS
ADOPTED SINCE ITS INCEPTION AND THE KEY
DIFFERENCES AMONG THESE FORMS
This is identified for the given case study that Facebook is using
appropriate system and perform its function under mixed structure.
Organization is performing its function in this where there are number
of functioning structure which can be followed and business objectives
can be achieved in appropriate way. some of these are discussed below:

CONTINUE
• Sole Proprietorships: This is first structure which was used by Facebook in order to perform its
function and chive business objectives. Under this, Mark Zuckerberg acted as a sole trader of
organization. The mania feather of this structure is that it helps the owner in taking all profits and
risk on their own.
• Corporations: In context of Facebook organization is using corporation as their core structure in
business environment. Under this, Facebook become a corporate organization which is
performing business function and achieving business objectives. This is used to perform at better
level and manage function according to needs and requirements according to structure of
business firm.

KNOWLEDGE AND UNDERSTANDING ABOUT
THE PURPOSE OF THE FACEBOOK
• The initial purpose of Facebook was to allow
the students of Harvard University to interact
and connect with each other and share the
experiences with the same. It was created in
order to provide a medium for student
engagement and to promote academic
exposure. With the passing time, the company
redesigned and redefined the purpose of
Facebook. Today, the company is known to
provide potential opportunities to its users in
terms of global interaction, PR and
advertising, current news and trends etc.

CONTINUE
• In the recent times, Facebook has become multi- purposed as it not only helping the individuals
to build a profile for themselves and connect with the people around the world but also provides
them with a platform to capitalise on various opportunities such as business collaborations, Event
management, Client management etc. It also helps its users to keep up with the latest news and
trends in the market. It can be said that Facebook is emerging as one of the most popular and
influential social media site and is catering to individual as well as business needs of various
individuals across the globe.

FACEBOOK’S STAKEHOLDERS AND THEIR
OBJECTIVES
• The five most necessary and prominent stakeholders of the company can be termed as :-
• Mark Zuckerberg
• Employees
• Users
• Government
• Media

CONTINUE
• Objectives of the Stakeholders:-
• Mark Zuckerberg: The objective of the owner is to maximise the profit of the organisation and to
increase the market share of the same which in turn will help the company grow, develop and
succeed.
• Employees: The main aim of the employees is to fulfil the organisational goals effectively and
efficiently and enhance their overall performance in the organisation.
• Users: The main aim of users is to receive good and effective services from the organisation they
are investing their time and money in. They aim for great and phenomenal services from the
company's end.

CONTINUE
• Government: The objective of the Government is to ensure that the company is abiding by the rules and regulations
set by the government and is not engaging in any violations of the same.
• Media: The main aim of media is to create the right image of the company in the eyes of the public and to provide
necessary information about the company to its audience.
• Yes, Facebook has been successful in achieving the objectives of the company as it has been able to make a big
name for itself in the global market and is one of the most popular organisation and Mark Zuckerberg is recognized
as one of the most hard working successful businessmen in the world. The employees are happy to be a part of such
renowned organisation. Users are satisfied with the services provided by the company. Facebook incorporates all the
government led guidelines in its operations and government has no objection with the company. Media has been
effective in creating a good image of Facebook in the public and results can be seen in the figures of the company as
well.

VRIO ANALYSIS
Valuable
• In case of Facebook, the most essential and valuable resources can termed as Financial investors, Technological
advancements, Large audience and employees. Investors are valuable to the organisation as they provide
financial assistance to the same.
• Technological advancements is one of major elements of Facebook as it helps the organisation to innovate and
add creativity to its existing services.
• Facebook's audience reach is very high in and the company benefits from the same. Hence, the audience is one
of the prominent resources of the company.
• In order to increase the productivity of the organisation, Facebook focuses on enhancing the growth and
development of employees as it is one of the most valuable resources of the organisation.

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Rare
• Rare resources can be termed as those resources which are not easily available in the market environment.
• Investors cannot be considered as rare as the company can raise funds from other financial intermediaries as well.
• Technology is a rare resource for Facebook as it has contributed a lot in the company growth and development in the
long run.
• Large user base is one of the rarest resources of the company as it contributes in revenue generation of the company.
• The success of the company depends on its effective and efficient workforce. In case of Facebook, the company
leverages the benefit associated with diverse and talented workforce. Hence, the employees working for the company
can be considered as one of rarest resources of the company.

CONTINUE
Imitative
• Technology can be termed as imitative as the technological
advancements of Facebook are out in the public's eye.
Hence, the competitors can copy or adopt the same kind of
technology in order to give tough competition in the market.
• Large user base of Facebook cannot be imitated by any other
company as no other organisation as as giant and huge as
Facebook in the current market scenario.
• Employees working in Facebook cannot be imitated by
others as they have different personalities and skill sets and
other companies cannot hire same workforce in their
respective organisation.

CONTINUE
Organisation
• Employees working in the
company can be considered as the
most organised component of
Facebook as the company has
hired right individuals with right
skill sets at the right position in
order to increase the efficiency ,
effectiveness and productivity of
the same.

PESTLE ANALYSIS
• Political
• Stable political environment is very
prominent and vital for the smooth
functioning of the business.
• Facebook is a company that can be
affected by any sudden change in the
government policies and framework as it
can affect the current ongoing operations
and the business of the company.

CONTINUE
• Economic
• This factor stimulates the growth rate of a business
venture. It is very essential for the company to be
aware about the economic changes in the environment
as the market is extremely dynamic in nature and one
should have some strategies planned in advance to
cope up with the same.
• In case of Facebook, the company needs to be aware
about the current economy of the country, inflation
rates, deflation rates etc. in order to adjust to the same.

CONTINUE
Social
• Society plays a vital role in
the success of a business
organisation. Facebook
needs to serve to the society
by bringing the changes in
its existing services and
providing premium services
in order to satisfy the wants
and needs of its users.

CONTINUE
Technological
• Facebook is tech based company and in order
to prosper for a long run it is very essential
that the company incorporates various new
technological innovations and advancements
which will in turn help the company to
enhance its existing line of services and
expand its current operations in the target
market.
•

CONTINUE
Legal
• Implementation of new laws and
regulation in the country or the sector in
which the company operates can literally
change the overall game of a company.
• In order to carry out smooth flow of its
business operations, Facebook should
follow the laws levied by the government
and should not indulge in any activity
that can lead to violation of law.

CONTINUE
Environmental
• It is the moral duty of established organisations to
provide its to promote healthy environment and
influence its clients to do the same in order to bring
a positive change in the environment. Facebook
has provided its helping hands to various non profit
organisations which are working for the
conservation of natural environment.
• It has also started various initiatives which has
helped in reduction and elimination of wastage in
the environment.

CONCLUSION
Finally, it can be concluded that company is growing day by day at a good pace. Facebook has
been sufficient in providing best services to its users. The company is leveraging on its user loyalty
and is generating higher revenues due to the same. The company has been able to effectively
analysis its internal as well as external environment and this has helped the company to gain a
competitive advantage in the target market.

REFERENCES