Analysis of Global Business Environment for Social Media Companies

This report examines the global business environment, specifically focusing on the challenges faced by social media firms like Facebook and Instagram. It highlights issues such as data privacy breaches, the use of fake identities, and the spread of harmful content, leading to increased government intervention and regulations. The report discusses the impact of scandals like the Cambridge Analytica case and the imposition of taxes like the GAFA tax. It concludes that while social media connects people globally, companies must prioritize user data security, adhere to regulations, and take precautions to ensure sustainable development. The report references various academic sources and online articles to support its analysis of the external factors influencing the growth and profitability of global social media companies.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION..................................................................................................................................................3
MAIN BODY..........................................................................................................................................................3
CONCLUSION.......................................................................................................................................................4
REFRENCES..........................................................................................................................................................5

INTRODUCTION
Global business environment refer to the external environment on which the business operates so it is
essential to identify these factors to mitigated the chances of risk(Salvatore, 2015). In context to global social
media firm such as Instagram and Facebook faces various issues related to loss of private information, usage of
fake identity and posting harmful content. These negatively implications has increased the interference of
government on such platforms (Rottig, 2016).
MAIN BODY
Social media is used to connect the people by providing them common platform where they can share
their views, ideas and information. The use of online platform through electronic devices has reduce the
problem of communication gap among the people (DeNardis and Hackl, 2015). There are various global social
media firm such as Facebook, Instagram, Twitter and so on that has made easier for user to share their content
easily. Thus, due to which such applications have become successful to engage huge number of people living in
various geographical regions.
Although such social media company's earn huge revenue as they are preferred by large audience but
government of various country have raised some regulation on such sites to control their actions (Lewis and
et.al., 2017). As there are several issues related to privacy breach that came forward by using Instagram and
other media. Along with that it has raised crime rate that has caused pressure on government to restrict the
growth of such social media sites. For instance, Facebook has the data of huge number of audience that is
approximately eighty million user and they faced the controversy that company has shared the data of people
with Cambridge Analytica company. Further, this data was used to run political campaigns that was in favour
of US president that is Donald Trump. Thus, existence of such scandal not only lose the trust of various user or
client of Facebook and Cambridge Analytica but instigate the government to supervise the functioning of such
large companies. Moreover, the government of France has imposed GAFA tax on digital companies including
large social media site such as Facebook. Within this 3% tax is imposed on the revenue generated by such
companies that has caused huge burden on them. Therefore, the external factor are not in control of global
social media firms but company need to take significant precaution to enhance their growth and profitability.
Like, the data of customer must be remain safe with company, along with that safety measures should be taken
that will help to maintain the trust of user.

CONCLUSION
From the above report it has been concluded that social media is highly in trend and has created huge
market buzz by connecting people from various geographical area. This has helped to overcome the barrier of
communication or content sharing among the people. Thus, company must consider the preference as well as
safeguard the interest of their audience. Further, company must abide by government rules and regulation if
they want to achieve long term sustainable development.

REFRENCES
Books and Journal
Rottig, D., 2016. Institutions and emerging markets: effects and implications for multinational corporations.
International Journal of Emerging Markets. 11(1). pp.2-17.
DeNardis, L. and Hackl, A. M., 2015. Internet governance by social media platforms. Telecommunications
Policy. 39(9). pp.761-770.
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
Lewis, H. and et.al., 2017. Design+ environment: a global guide to designing greener goods. Routledge.
Online source
The Facebook and Cambridge Analytica scandal. 2018. [Online]. Available
through:<https://www.vox.com/policy-and-politics/2018/3/23/17151916/facebook-cambridge-
analytica-trump-diagram>