Comprehensive Business Environment Analysis of Facebook Inc. (Report)

This report presents a comprehensive analysis of Facebook Inc.'s business environment. It begins with an examination of the macro environment, including political, economic, social, technological, legal, and environmental factors and their impact on Facebook's performance. The report then delves into the micro environment, utilizing Porter's Five Forces model to assess industry competition, the threat of new entrants, and the bargaining power of customers and suppliers. An internal analysis evaluates Facebook's resources, capabilities, and core competencies. Finally, a SWOT analysis synthesizes the findings, identifying Facebook's strengths, weaknesses, opportunities, and threats, providing a strategic overview of the company's position in the market.

ANALYSIS OF BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1 An analysis and commentary of the wider macro environment within which face book Inc
operates that impact on its performance......................................................................................1
2 An analysis and commentary of the micro environment (Industry environment) within
which Facebook Inc operates......................................................................................................4
3 Conduct an analysis of the internal environment of Facebook Inc..........................................6
4 on the basis of macro, micro environment and internal analysis identify the SWOT of
organisations...............................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment means all the of the internal and external factors that affect how
the organisation function including employees. Customers, management. Supply and demand
and business regulations. The report on the basis of Facebook Inc case study in which different
challenges faced by the company even though they are leading in social Media market. Further,
analysis of macro and micro environment of the organisation which operate the effect on their
performance. The internal environment of the Facebook Inc with help of their resource,
capabilities, core skills and core competencies. The SWOT analysis which will help to utilise for
taking certain decision making for improvement in the company.
1 An analysis and commentary of the wider macro environment within which face book Inc
operates that impact on its performance.
There are certain macro environment factors which can be impact on the organization
performance. It can be impact due to Political, Economical, social, Technological, Legal and
Environment. All the factors are impact on overall performance of the Facebook Inc which can
be describing below:
 Political: These are the main macro factors which can be impact on Facebook business
relate within government pressure. The major political factor that influence the
performance of the Facebook Inc. in which the political stability in developed nations,
policies government support for globalisation and political barriers in the market like
china. As the political stability of developed nation current opportunities for Facebook
Inc to consistent decreasing their enterprises in the industry. The organisation has chance
to prosper its social media and showcasing services or advertisement across the globe
which is bases on political assistance for globalization. Thus, the company must suffer
from political issues in the Chinese(Dima, Grabara and Modrak, 2014). Due to the
Chinese censorship the firms' strength is important worldwide development is limited.
The policies which can be adopted by the organisations that must be as per government
rules and regulations. Therefore, the political impact will decrease the performance of the
organisation.
 Economical: These are the another factor which can be influence to the business
environment of the firm. The globalisation brings a situation of downward sloping
economy and all the business are also not able to perform in the market. But due to
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increasing stability of developing nations which is the opportunity for the Facebook and
rapid economic growth and developing nation and enhance disposable incomes. Hence,
Facebook Inc. has to opportunity to enhance its market penetrations efforts in developing
nations with accelerative economic position. In context, the effective growth of economic
in such nations which bring the development and betterment of infrastructure, includes
telecommunication infrastructure. This can be helpful in expanding of access to Facebook
a social networking website and social media services like Messenger, Instagram,
WhatsApp and Oculus. Further, increasing the disposable income in the nation which is
already developed components utilised ability, as well contribution to the organisations'
elaboration. Therefore, with the proper analysis if economical macro factor for the
organisations the major opportunities, its global operation, especially through markets
penetrations.
 Social: Facebook popularity and reach increase across the globe which influence of
social situations. The effect of trend in society and modification on the organisations
macro environment is finding out with the social analysis in which increasing preference
for high-quality services is the opportunity for the firm and enhancement of online
shopping as well increasing support for corporate social responsibility. The financial
capacity is increasing and standout of living situations of society is also developed which
emphasis better quality of services(Ebert and Griffin, 2016). The current situation of the
society is an opportunity fir the organisation to develop the firm showcase with the help
of advertisement services. Moreover, enhancement of online purchaser attitude and
behaviour across the globe bring an opportunity for Facebook for higher growth and
development services to increase profit from generating retail sales with help of the
websites for social networking and mobile app related to it. The organisation as well has
the opportunity to increase their CSR session as a manner of satisfying corresponding
expectations of utilisations. So, if the Facebook will improve their services, it will help
them to gain competitive advantages.
 Technological: These can be another factor which will help to bring the effective
operation in the organisations. Technological variables are the exceptionally developing
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and give positive effects on the business condition. Innovation coordinate impact the
matter of Facebook Inc. Facebook Inc depends on methods, thoughts, development.
Without having or actualizing the imaginative strategies' client won't hold with a similar
brand. With a specific end goal to hold clients or clients, organization needs to receive
imaginative systems and highlights. Advances utilized by the organization to secure the
information or data of clients. With the assistance of data innovation Facebook Inc secure
the information of clients and make them fulfilled and upbeat. Facebook Inc needs to
embrace the inventive and imaginative thoughts for the organization improvement and
opportunity.
 Legal: The legal factor is exceptionally affected the activities of Facebook Inc,
organization ought to legitimately withstand for the embracing all lawful ramifications
forced by the law. It makes the organization condition protected and secure. Law force
gives restriction on the Facebook Inc business, law gives high set of principles keeping in
mind the end goal to secure the negative happened. The advantage of this factor is client
examination and their confidence on the organization(Abbott, 2015). Development and
imaginative patent law give chance to Facebook Inc. Insecure information and absence of
association of legitimate ramifications may emerge the issues in the organization, which
gives negative effect on the organization market share. Facebook Inc needs to receive
high innovation and administrations with a specific end goal to keep the clients'
confidence
 Environment: These can be also one of the factor which can be influence the
organization condition in the business exercises. Facebook Inc is very associated with the
common habitat. They interface with the issues which influence the full-scale condition.
It gives opportunity and development to the organization to develop in the earth. With the
assistance of online networking and locales will enhance and fulfils the worry of the
regular habitat.
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2 An analysis and commentary of the micro environment (Industry environment) within which
Facebook Inc operates.
These are the important factors which are essential aspect to improve the internal
enterprise plan and strategic management. Micro environment includes organisation strength
and weaknesses. Internal factor impact on the business environment directly, internal
environment force are includes clients. Suppliers, government competitor. These micro
environment affect the organisation procedure and impact on market share and revenue. The
Facebook Inc must determine the micro environment factors which affect business environment
directly. Moreover, in order to analyse the internal analysis nation adopt porters five forces
model such as follows:
Porters five force model:
 Rivalry among existing firms: This can be the first force of the internal environment
which impact on the function of organisations. In context of Facebook Inc organisation
they task across the environment which is related to technology. The main competitor of
Facebook is google but they are not able to give high competition to them. But google
had come up with various services which are also provided by Facebook Inc. and
Facebook absence social media platform such as Youtube, Twitter, LinkedIn and Yahoo.
As the development of company is the biggest social networking organisation across
globe. It is major hindrance for firm which may impact on operation division(Othman
and Rahman, 2014). The rivalry among existing firms is not affect the Facebook Inc
which is the biggest social networking organisations. Competitor is ever competing and
challenging. In context ti mitigate the threat Facebook Inc requirement to discover new
services or technologies in terms of retaining the client attractions. In other nations and
their high competition which is increasing network in terms of Renren China, Mixi in
japan, vKontakte in Russia etc. which has been created a situation of rapidly growing
networking in the industry.
 Threat of new entrants: This can be another threat for existing organisations that new
firm or new creative will modification the attention of clients or utilised. This giver
broads opportunity for the firm or hindrance to implement the effective technology for
managing market value as well shares. The social media is the rapidly develop recent in
the market. It gives better chance to utilisation. For that, overall people will earn revenue
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from this platform. It is a difficult task for the firm to manage the same value in the
market. In context of that it the largest threat for new entrant in industry. Social media
platform on the basis on the innovation and new things. As the reduction of number of
people who use ODF Facebook Inc which can be easily shows that other organisation in
the industry has come up with effective services to users.
 Bargaining power of Facebook Inc customers depends on the nature of
customers:Facebook Inc provides their services in two terms advertise and users. In
terms of Facebook Inc bargaining power of the customers are immense in order to heavy
competition in the market. Bargaining power of Facebook Inc advertisements is limited.
This is because in terms of advertisement there are only two measure competitors Google
and Facebook Inc itself. So that, bargaining power is limited in this term (Ingram and
et.al., 2015). Buyers are dominating environment when company facing high competition
in the market. Facebook Inc play a dominant role in terms of set the pricing of
advertisement.
 Bargaining power of suppliers: the supplier of the Facebook Inc which provides
technology services to the Facebook Inc which helps company to develop various
software and applications on Facebook Inc. It gives the higher opportunity which gives
positive impact on the business environment. Facebook Inc is the bulk buyer of the latest
technologies, besides there are only few suppliers which provides technologies to the
companies such s IBM and Ericson. In terms of suppliers choices are limited and costly
for the company. In terms of bargaining power of the Facebook Inc with suppliers is
limited
 Threat of substitutes: Substitutes are the biggest threat for the company. In terms of
social media platform company facing high risk and challenges. It gives negative impact
on the company revenue in terms of getting things(Ramanathan, Bentley and Pang,
2014). There are many substitute social media platform on which customer or user can
easily switch. Such as YouTube, Instagram, twitter. Besides, in terms of advertisement
users have another options such as Newspaper, blogs, TV. Therefore, substitute of
Facebook Inc is very high and large
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3 Conduct an analysis of the internal environment of Facebook Inc.
Facebook Inc is the biggest association and viable work compel organization keeping in
mind the end goal to get the most ideal results. Facebook Inc is the main online networking
webpage which gives different propelled administrations to the Facebook Inc clients. As far as
administrations or quality. Facebook Inc endures a few issues and clashes with the clients. On
alternate sides, so as to overcome from the impacts' organization receive propelled
administrations and new advancements with a specific end goal to pick up the fulfilment level of
the purchasers. There are diverse terms which causes organization to embrace openings and
development. As far as getting new administrations or client fascination. Organization needs to
embrace look into investigation keeping in mind the end goal to decide innovation advancement.
Also, with the assistance of assets and systems organization makes appealing item and
administrations. Through which organization capacities will be appear. Based on which
organization chooses their centre item and administrations through which they get the gaining
limit from the clients. As far as Facebook Inc abilities and centre administrations which is
Facebook Inc social locales. They advance the Facebook Inc mark picture and quality
administration. Moreover, Human asset is the another inside wellspring of the organization
through which they getting the salary source. Representatives or human asset division take mind
the arrangement of inward examination. Representatives of the organization improve the client
benefit and unravel the inquiries and issues. Keeping in mind the end goal to examination the
organization inner exercises there are a few components through which organization
distinguishes the real position of the organization.
 Core skills: Core abilities of the organization is imaginative programming and
application which give ease in correspondence process. This makes the earth more
focused and progressed. Centre abilities of the Facebook Inc through which they get most
extreme salary is online networking promoting and web-based social networking website.
It gives the higher openings and development to the general population. Keeping in mind
the end goal to contend with alternate contenders. Centre abilities of the Facebook Inc is
great hall on system aptitudes in representatives which thinks diverse new thoughts and
advancements.
 Core Competencies: Centre competency is those capabilities which makes organization
unique in relation to different organizations. Organization centre competency makes
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organization further developed and superior worker in the market. Facebook Inc has a
few centre competency which makes consumer loyalty and pull in client alluring sources.
Facebook Inc give chance to deal and promoting. They give online stage to the
organizations to advance their own particular item and administrations. Facebook Inc is
the social stage where organization gives different alternative and highlight to the clients
so as to get the client fascination. Centre abilities is the profound capability that
empowers an organization to convey one of a kind incentive to clients. This is huge open
doors for the organization to receive the most ideal exercises. Another centre competency
of the organization is having a million or a billion clients which evaluate the
administrations of the organization and create benefit income for the organization.
 Resources: Resources are the apparatuses and procedures which finds the things and
assets as indicated by the organization targets. Assets are the most fundamental piece of
the association keeping in mind the end goal to serve the beneficial results' comes about.
Facebook Inc asset are the most recent advancements and web servers(Prajogo, 2016).
The real innovations issue of the organization is to secure the data of customers. Another
fundamental assets of the organization is human asset, budgetary asset, operational asset.
Assets are extremely basic for the association which contribute the greatest endeavours of
the organization. With a specific end goal to address the issues of clients organization
needs to make some successful move by the use of assets. Assets
 Capabilities: Capabilities implies high the capacity to accomplishing something which is
extremely fundamental and compelling. This is the wellspring of the associations which
ensures the organization in compelling way. This is the viable outcomes and upgrades.
As contrast with the contenders' organization confronting high issues and successful
administration aptitudes and administration abilities.
Based on above dialogue, it can be presumed that, inside examination of the inner
investigation based on abilities' asset, centre skills. It demonstrates that, FB centre around the
consumer loyalty. Then again, Facebook Inc centre around the clients' fulfilment and their needs
and needs. Web-based social networking stage is the powerful stage to get the business openings.
Presently Facebook Inc enables clients to give commercial on the Facebook Inc page. Numerous
little business visionaries and individuals so little exchanging with the assistance of Facebook
Inc. Facebook Inc is the another wellspring of changing the data starting with one place then
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onto the next. Facebook Inc associates individuals to individuals even in the far spots. With the
aides of solid inner condition and successful administrations they get the gainful benefit from the
clients. In the year 2014 on fourth February Zuckerberg propelled The Facebook Inc with the
immense mission and vision to give individuals energy to share and make the world more open
and associated. Around then Facebook Inc got their first firm from subside Theil prime supporter
of PayPal. Facebook Inc is the outstanding online networking brand having high open picture.
Facebook Inc having in excess of 1 billion dynamic clients every month. Facebook Inc gives
their administrations in 70 dialects. Facebook Inc dispatch new administrations or thoughts
which gives new administrations to the clients. With the aides of Facebook Inc administrations
numerous associations and business get favourable position of that, this embraces the diverse
focal points and administrations with the assistance of which they take its business
administrations(Atighechian, 2016). This is the higher and awesome open door for the clients.
Facebook Inc approach the clients and attempt to settle the hole between clients or new
advancements. Assistants of worker asset Facebook Inc enlist all around qualified representatives
keeping in mind the end goal to address the issues of clients to improve the administrations to
clients. Representatives of the Facebook Inc embrace propelled strategies and assets with a
specific end goal to make the best systems and highlights for the site. Late developments of the
organization I to present live visit with the general population alongside sharing video messages
and video cuts. Additionally, the primary goal of the organization is to ensure the data or
information of clients. Alongside that, Facebook Inc administration is well profitable and impact
full. Facebook Inc receives client approach of the premise of contenders investigation. As far as
budgetary assets' organization gather their money related assets by getting on the web income.
Facebook Inc prominence comes through solid brand picture. Consumer loyalty is the another
centre competency of the organization. Moreover, organization contribute high sum on Research
and advancement division keeping in mind the end goal to make the innovation improvement.
4 on the basis of macro, micro environment and internal analysis identify the SWOT of
organisations.
The organization also determine the strength and weaknesses of the firm. The SWOT
analysis can be assist to determine internal strength and weaknesses.
Facebook Inc Strength: The organisation strength assistance the firm positions which is the
primary strong point of the firms is its brand value and market position. Facebook Inc is the
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leader of social media situation. There are 1 billion used increase every months. The organisation
earns the high earning from the various sectors. The different strength of the firm that is high
brand value and the highest customer base with outsiders and more revenues. The aim of the firm
is to use their services for connecting with the people the and make more networks. his gives the
higher opportunity and development to the organization. As far as Facebook Inc it is the
expansive client fascination mark. With the assistance of fast forms and new advancements they
keep its development higher and powerful. It is extremely troublesome for alternate contenders
to beat with Facebook Inc. It is the another major worldwide pioneer in the middle of other web-
based social networking organization(Cascio, 2018). Keeping in mind the end goal to examining
outside and inward condition quality of the firm is viable administration abilities or development.
Facebook Inc weaknesses: This can be internal factors which impact on the firm process and
operation work. The Facebook has faced various issue from the people create critical salutation
for the firms. On the other hand utilised concern with Facebook Inc is secure and safe for their
transferring the data. It is the major threat for the firm which brings weakness and hindrance
inside environment. In terms of analysis of the internal factors with SWOT evaluation techniques
there are certain weaknesses of the Facebook Inc is discussed such as follows:
 Adverse effect of digital marketing our Facebook user experiences.
 The business will be set be as the lower diversifications.
 Easily Imitable goods and services.
In context to deficiency of insecure working environment people can not build reliance among
users. Another principle worry of the organization is it is simple for different organizations to
produce another social site and offer rivalry to Facebook Inc. This is the another opposition level
for the organization regarding getting piece of the pie. Due open well-being discussions they
decrease the under fascination. In addition, Facebook Inc needs to receive prominent innovations
all together safe the client information. Plus, Facebook Inc experiencing low expansion which
may emerge chance factor. In online organizations it includes high hazard as far as securing
client data from programmers. Because of low strategies of Facebook Inc programmers can
undoubtedly hack the administrations. This gives the negative impact on the clients minds which
gives unfriendly consequences for business execution. To overcome from the negative effect
organization needs to receive profoundly secure advances and programming to give great
administrations to the clients. So it is important for the organisation to make an effective decision
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towards the main weakness and action must be taken on the basis of these weak areas otherwise
it can be threat to the firm in terms achieving objectives.
Opportunities of Facebook Inc: Facebook has various opportunities to develop their business
in various developing nation where internet user are increasing mostly in the Asia. To find out
the macro, micro and internal environment analysis organisations chance is current updated
technologies and demand of the clients need to fulfil. The firms can be effectively measuring the
requirement predict to determine the clients formulation and enhancement of online purchaser
attitude and behaviour across the globe bring an opportunity for Facebook for higher growth and
development services to increase profit from generating retail sales with help of the websites for
social networking and mobile app related to it(Fleisher and Bensoussan, 2015). This can be also
important for them to safe the people data which can be used for wrong practices if it can be leak
somewhere. Required to get an effective data management team will assist to make a high
development in the firm. Facebook Inc needs to embrace the inventive and imaginative thoughts
for the organization improvement and opportunity. There are certain opportunity which the firm
need to considerer such as follows:
 Expansion of enterprises.
 Goods and services diversification.
 Market Penetration and development.
Facebook had enhanced their opportunity growth with the assisting of various services in
other manner and goods diversity. It can be refer as the effective development and customer
range for increasing higher brand value in front of the other firms which are deal with same
industry. In terms of other opportunities which need to consider the element for implementation
of high safety technology which can be increase the clients trust stage within organisations. So
for the Facebook it is important for them to bring all the changes as per the weakness and
utilised their strong areas for the development in the firm, therefore they have high opportunity
to increase the business with the help of modification in the organisations.
Threat of Facebook Inc: Facebook Inc the greatest danger which organization faces is that
profoundly include hazard factor and negative impacts of society debates looking by the
organization. They include overwhelming misfortune, for example, impersonation, cybercrime,
advertise immersion. These are the dangers of organization. Impersonation is the greatest and
regular hazard factor, in which any organization can receive similar administrations for the
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