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Business Analysis Written Report (Fcebook company) - Research Paper Example

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Instructor Date Facebook Inc Facebook Inc is a social networking company, its website enables users to communicate, share, advertise, connect as well as discover with each other worldwide with the use of computers and mobile devices such as mobile phones, Ipads etc…
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Business Analysis Written Report (Fcebook company)
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Download file to see previous pages One of the major issues that Facebook is undergoing is privacy, a survey that was conducted in 2010 listed Facebook among the bottom five when it came to matters of privacy. The issue was first noted in 2006 after Facebook introduced News Feed, which showed every change made by the user’s friends to their pages, it also introduced a service called Beacon that would allow users see products that had been purchased by their friends. After an outcry from the users, privacy controls were implemented which allowed them to control the content they wanted to appear in the News Feed section. In the year 2012, Facebook made losses of over 157 million dollars combined with an IPO that fizzled out due to technical hitches and high expectations, the company’s expenses have nearly tripled due to payroll expenses and stock-based compensation. Economic Factors The state of the economy might be negatively affecting the company’s revenue, as the cost of living appreciates; most people are forced to reduce on their spending and completely cot off unnecessary expenses. If the users are forced to be economical with their earnings, they might decide to reduce the amount of money they use on internet access charges their visits to the sites that they deem useful such as work or school related. In turn, Facebook might see a drop in their income as lesser people visit the site, which will in turn reduce the number of organizations that choose to advertise with the company. Sociocultural Factors One of the main objectives of Facebook was to bring people together as a social platform; it has successfully managed to do so seeing that it holds the largest number of users compared to any other social networking site. As people get busier, the community and families suffer because they no longer have the time to bond as it was in the earlier years but thanks to Facebook, members of a family or any other social group can keep in touch without being able to see each other physically. On the other side, certain sociocultural issues are affecting the company in a negative way, such as cyber bullying, cyber stalking and privacy. There is a rise in cases of people admitting to having been harassed via Facebook and suicide cases reported as a result, the users seem to be losing faith in the protection of privacy that Facebook accords them; this in turn leads to less site visits (Peterson 29). Global Factors Different global factors can influence the impact Facebook has in different regions, thereby determining whether the company is successful or not. Factors such as government regulation on the use of internet and banning of websites, as was the case in Syria, in 2007, when the government blocked Facebook to reduce online activism affect the company (Wilson, Kellerman and Corey 173). Other factors such as health issues come into play and might affect the revenue of the company as masses are being advised to spend less time on the internet, computer and other mobile device because of the health danger they pose. Technological Factors Technology is the medium that has brought forth the use of Facebook; it has made it one of the top 500 companies in the world and due to the increase use in technology, Facebook has become the most popular social networking site. On the other side, the growth in use of technology and devices such as mobile phones is becoming a threat to the financial prosperity of the company. The number of ...Download file to see next pagesRead More
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