Facebook, Strategic Management Analysis

2628 words 11 pages
Business Policy and Strategy

Case Based Component Paper #1

Environmental Scanning


Samantha Stephenson


An environmental scanning refers to the process that systematically uses information about trends, patterns and relationships within an organization’s internal and external environment to determine the future direction of the organization. Through an understanding of the nature and speed of changes in that particular environment, an environmental scan is likely to help identify possible ventures, challenges, and developments that are important to the organization. An organization that could benefit tremendously from strategic planning and especially
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In the United States, the demographic bulge known as the “baby boomers” has affected the demands of the market in many industries. This group of people according to Wheelen et al. is now in their 50s and 60s but is the largest group in all developed countries. Wheelen et al. contended that sociological variables such as customs and conventions, cost, cultural heritage, and movement of labor have severe effects on the business. The nature of goods and services is determined by the demand of the people which in turn affect the way the business operates. In the case of Facebook, several transformations are needed to attract the baby boomers who are the largest users of advertisements on the web. Since senior are normally worried about their privacy and security, it is important that Facebook institute an environmental scan that ensure the preservation of privacy of senior Facebook page, the failure of which would be a severe threat to the stability of the company. The desire for companionship with baby boomers whose children have already grown and have left the nest have increased so Facebook could provide the type of interaction some of these seniors need. However, there is the need to make the sire more attractive and senior-friendly by step-by-step tutorial for setting up a page and navigating the network. In addition, remembering passwords have become a tremendous burden for some members of the baby boom generation. In


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