The Importance of Facebook for Businesses

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During all these periods from Socrates to George Soro, the notion of the business sphere evolved from trades of goods, exchanges of products like merchandises to revolutionising industrial developed corporation and organisations including modern created enterprise and associations. Nowadays a business environment is defined as a result of interaction of inside actors like owners, employees, financial specialists, representatives or investors and by outside features like media, government and society.

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Pestle theory has proven us that our environment can have a huge effect on the future of a multinational administration despite it’s desire to seek its future targets, profits or even success. Swot analyses also tries to figure our weakness and strength relating to our environment and it can be applied to all the scenarios.

We are going to focus on Facebook, which is a social site institution, and analyse how world events made an impact on this organisation.

Which situations happened inside Facebook headquarters since it’s creation and their impacts to the financial environment?

The idea behind Facebook was to spread communication between friends who live in the same common area in terms of their education, background and lifestyle. The scale of its growth is outstanding over the years as well as its value as a company. Unfortunately, Facebook had run into a big scandal in the last U.S presidential election campaign because some hackers infiltrated the website, changed the outcomes of the election and influenced voters decision which is a major outrage when voter’s choice are affected by programmers. This scenario that happens was that millions of Americans has remained targeted over social media by hackers from Russia, China and other countries. This was an attempt to undermine Facebook power and American policy because fake profiles had been created in the platform as well as fake information was spread on the website. Furthermore, false data was spread on the Internet too. Overall, users were influenced by decisions makes on public and unethical behaviour of the association because we gave our social life including our preferences to Facebook. We couldn’t protect our data and other internal factors as well information that were crucially important because there is a massive amount of user’s information that were targeted or become vulnerable in terms of security of privacy. Those people were recognised as a pressure group because they were targeting voters and releasing damaging evidence plus discharging harming data during specific time of the election. The used of virtual attack and digital assault played an essential part on making decisions because unprecedently this had never happened in Facebook association. Nevertheless, ideas and opinions were mixed and the release of damaging report increased throughout the votes targeting states, workers and employees. Ultimately, the scandal causes a major impact on Facebook organisation because it undermines it’s security and it’s loyalty as a multinational platform towards it’s million of consumers. The business environment changed the company because Facebook lost thousands of users after this event and the fact that people started to write petitions in order to delete their Facebook profiles.

Additionally, people’s privacy were violated and they were concerned about their security and their life. This likewise had an impact on Facebook shares and value because the organisation lost a significant amount of income and it’s founder Mark Zuckerberg was reprimanded as well as other managers. The media and the society were also involved because they criticised Facebook integrity and its role during the votes. The internal agreement in Facebook headquarters became problematic for the organisation survival because the environment that they were used to also has changed. Although Facebook managed to deal with it overtime because they update their security, delete thousands of fake profiles and ensure to protect peoples policy so that users would be extremely happy and don’t feel violated about their privacy. Facebook used swot examination to think around how they could improve their current situation by creating the idea of the need, knowing the risk involved and the way they responded to the business nature is considered positive because dynamics were different. Another way they deal with the scandal is that Facebook tried to develop more science itself by understanding people choice and ideas process as well as pursuing more effectively. Facebook was also aware that a lot of people suffer from social isolation and had vulnerable password so that’s why they developed updating security digits for password. They also made big investment, time and even dedicate people to research or develop social products for customers. Indeed it’s more increasing the level of self-awareness in users’ profile. Facebook also encountered internal conflict in terms of business owners and creators in its early days. Indeed this scenario was even more complicated because it leaded the people in charge to lawsuits and conspiracy. Additionally this event could cause the end of the company. The scenario that happened was that Zuckerberg had to face the winkleboss brothers who had pursued him in laws because he stole their idea and a similar lawsuit happened with Google. As a young entrepreneur and a genius in computer science, he was the main face of the company and was in charge of the business organisation.

Facebook and Google had always been adversaries on an oligopoly market because both of them are targeting a massive amount of Internet users and have a unique selling point that would put the company in a map by giving an advantage over competitiveness. The scenario that happens is that Facebook and Google have many court cases over a certain period of years because Facebook is trying to accuse Google of being monopolistic on the market for example most of the functions of Google were actually created by engineers. Although, tech leaders of Google allowed turning these ideas into there own product. This rivalry has a great impact on their technological product in terms of competition because if there were no competition, users won’t get diversified and good quality. In result, product becomes the mean of bringing rivalries in the environment business because one of the reason customers still use Facebook app is that they got design, then lot of functions and users like the visibility. If there were some functions that didn’t get pictures or videos most people won’t use Google products and searching web but the argument is that Facebook app is quicker, has more functionalities and simpler. Facebook is able to hide aspects that Google can’t so looking it to a geopolitical situation they just make customers use their products because we can have family discussion, software integration, moving data from one device to another. The reason is that it’s easy to connect with friends and share business ideas that are brand new and innovative. In this business situation, Pestle can be understood for the situation of analysis which is the psychology of business because it creates a shortcut and focus on what Facebook want to achieve through this rivalry competition.

In term of product prices and threats, the level of rivalry between Google and Facebook is high but again it’s down to loyalty because there are subdivisions from the crowd in relation to them. For example, Facebook is increasing user products and is diversifying options. In fact using Facebook app on a daily basis becomes almost an addiction because we can follow the news all around the world, we can chat with friends, we can choose our preferences, we can launch a business, we can watch movies and many other beneficial aspects so knowing that, it’s a big strategy from Facebook to diversify the range of its social website so that users won’t delete their profile or even though wouldn’t be able to resist the temptation of Facebook in their life.

To conclude the main points was to highlights Facebook attitude and response towards the effect of the business environment or either it was positive or negative. The scandal of the presidential election was and has still remained the biggest problem that Facebook has to deal with because Zuckerberg had to prove again his loyalty or even dedication to his millions of users around the globe.

The question that was rising was that is the company has become too powerful in the society or either Mark Zuckerberg had to step down as the role of CEO so this was a significant pressure that brings in the intervention of the business international committee and other major government not only in USA, his home country but also in Europe.

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The Importance of Facebook For Businesses. (2020, Apr 22). Retrieved December 3, 2022 , from
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