An Analysis of the Effects of an Environmental Scan on Facebook Performance

The Company’s headquarters is located in Hacker Way, Menlo Park, California 94025 in the United States of America. It reported annual revenues of $ 40. 7 billion for the financial year 2017 (Kent & Zunker, 2017). The company operates internationally. There are constant changes in the business environment in which the company operates hence there is need to conduct an environmental scan to help the firm understand these changes, take advantage of the opportunities presented by them, and establish strategies for overcoming the threats. The socio-cultural factors also present the company with opportunities. The consumer's tastes, preference and the fashion trends of people are favoring the company's products. For instance, the preference for people to make online purchases is an opportunity for the company. The company’s continued participation in the areas of corporate social responsibility enables it to get connected to the members of the society and this is an opportunity as it gives it a positive reputation in the eyes of the members.

For instance, the company works towards ensuring that the privacy of users is protected. It is important for the company to form strong integration with the suppliers to ensure that it remains profitable. Despite big market share the company control, there are threats of substitute goods as a result of the technological changes. This may at some point render the company's platform to be unfashionable making them shift to the substitute products. Companies such as Apple are developing their own platforms for exchanging information rather than opening their Facebook page or group (Singla & Apoory, 2015). This makes members from these companies shift to the substitute provided with their employers making it lose. The Company holds a competitive advantage over the competitors by conducting intensive and extensive advertising of its products to the customers to ensure that they are aware of its offerings (Cuervo-Cazurra, 2017).

It also takes advantage of the mobile trends such as the mobile apps. For instance, the Messenger App that allows it to diversify its products. The Company also ensures continuous engagement of its customers to ensure that it improves the quality of its offerings to them. The Company should consistently take advantage of the technological advancements to ensure that it offers quality products and maintain low production cost. The marketing and sales part shows how the company effectively utilizes the 4p’s in marketing towards its offerings reach the customers (Yang & Lin 2014). The services part shows the customer support provided by the Company. These include the contact details and other supportive services the Company avails to its customers. The secondary activities show other functions carried out in the Company the resources to support its operations.

These include the firm’s infrastructure, human resources, technological development, and procurement. The first group is the external environment that consists of general environmental factors such as the political/legal environment, economic environment, socio-cultural factors, and the technological factors, industry analysis conducted through the help of Porter’s five forces, and competitor analysis to help in identifying opportunities as well as threats to business existence. This second part considers the internal environment that considers factors within the business that shows its strengths as well its weaknesses. This is studied with the help of value chain analysis to show resources, capabilities, and core competencies of the business. It is important for the company to carefully understand these environmental factors so as to provide it with a competitive edge over its rivals.