Corporate Strategy MBA Fall-2021

PESTLE ANALYSIS INSTAGRAM Part2

Submitted to: Dr. Adil Paracha

Submitted by: Group-A
Department: MBA
Date: November 8th, 2021

1
Corporate Strategy MBA Fall-2021

Contents
Sociological, Environmental and Legal Factors ............................................................................................. 3

2
Corporate Strategy MBA Fall-2021

Sociological, Environmental and Legal Factors

FACTOR IMPACT IMPACT ON CHANGE IN ORGANIZATIONAL MOVES

FACTOR

Demographic Demographic factors Positive Impact: Instagram is a social media

Factors. such as Age, Gender, platform used by different
In Instagram the younger
Income, education, age groups, gender and
people Adults are the first
experiences have a different income class
consumers to purchase
strong impact on people. Instagram and
products like smartphones,
business performance. Businesses should think
books, video games, clothes
These factors are used about the promotional ads
and many other products.
to determine product that they are advertising
Businesses can easily target
preferences or buying on. Everyone can’t afford
them through Promotions
behaviour of customers. it, and people will take
ads on Instagram. There is no
People between the age negative effects of those
such gender difference in
of 18-34 are more things which will harm
them Male and female both
usually active on their mental health.
are actively using instagram.
Instagram and they are
Businesses use different
the active consumers of
promotions strategies to
that products.
attract the youth and old age
people globally, because
Instagram is used worldwide.
Businesses can advertise
their product for different
age groups, different income
classes like clothing lines, fast
foods, electronic accessories
and many others things.

Negative Impact:

3
Corporate Strategy MBA Fall-2021

In Instagram every one does

not lie in the same income
group. Most of the time
people will be attracted to
those things which are more
expensive and they can’t
afford them like high quality
clothing range will appeal to
every person but only those
people who have high
income can afford that
product.

Lifestyle Lifestyle depends on Positive Impact: Instagram should take

Trend. the demand for notice of those products
Continously changing in
products and services. that are new in the market
customer lifestyle can
People usually demand and updated, so that they
influence the businesses or
or focus on such things can attract more
Social media sites like
that are mostly updated customers. Young
Instagram. Sometimes it will
or new to Instagram. customer like to buy those
be benefit form them
Everyday lifestyle of products which are in
because young customer are
consumers are trending.
more brand aware and they
changing, their taste or
know which product are in
preferences will change
trend.
with time.
Negative Impact:

Lifestyle of customer will

leave a negative impact on
others life because people
post their pictures on
Instagram with luxurious
products that can't afford by

4
Corporate Strategy MBA Fall-2021

those people who belong to

lower income class.

Factor Impact Impact on change in Organizational moves

Factor
Attitudes Work perspectives are the Due to more reach, Instagram must
towards work sentiments we have toward content creators take continuously promote
various parts of the interest in showing their the content of the
workplace. Occupation work to others. creators so they can
fulfillment and hierarchical Content creators must have some rest too.
responsibility are two key work continuously to
mentalities that are the promote their work which
most pertinent to in the end leads to health
meaningful results issues.

5
Corporate Strategy MBA Fall-2021

Consumerism Consumerism is the idea Instagram has an Instagram needs to

that increasing the appealing well-organized make a version for Linux
consumption of goods and interface. or BlackBerry operating
services purchased in the You cannot bypass security systems.
market is always a settings in Instagram
desirable goal and that a making it easy to support
person's wellbeing and your profile private
happiness depend between your followers.
fundamentally on obtaining The Instagram app is
consumer goods and available for iOS, Android
material possessions. and Windows operating
system only. The app
cannot run in devices using
Linux or Blackberry
operating system.
Level of This means how 33% from High school
education knowledgeable the client is. 37% from College
What is the level of his 43% Above college
knowledge, How much
information is he having
about the things.

FACTOR IMPACT IMPACT ON CHANGE IN ORGANIZATIONAL

FACTOR MOVES

6
Corporate Strategy MBA Fall-2021

Govt. Spending Research and Development Recent few decades US Instagram should be
on R&D plays a critical role in the Govt. didn’t spend much highly focused and
innovation process. It’s on research and spending on research
essentially an investment in development. Funding to and development
technology and future the universities for programs whether Govt.
capabilities which is research proposals is spending on R&D or
transformed into new remained limited and not.
products, processes, and many are being cut off.
services. When government Many businesses are
play its role in promoting taking interest in funding
the research and different research and
development programs by development programs to
funding and feeding grab the latest knowledge.
research proposals, Latest knowledge will not
outcomes are always in the be public because
shape of innovation and businesses will use this to
advance technology. strengthen their position
Business like Instagram is in new era. Information is
highly dependable on highly public when govt
research and development spend on research and
with this it can find new development programs by
way to lead in the market. funding individuals.
Lack of knowledge and
latest information of
market, technology and
other sectors will create
hard environment for
Instagram.
Govt. Industry Focus of Government on If US government put less Instagram should be
Focus certain industry can flourish focus on Information highly focused and
it. It depends on the nature Technology, then industry spending on research
of industry and its may face some serios and development
contribution to the issues. Taxes, duties and programs whether Govt.
economy. tariffs may increase then is spending on R&D or
before because of new not.
governmental policies.
Funding for Research and
development programs
may be lesser than before.

7
Corporate Strategy MBA Fall-2021

New New discoveries always The faster the speed of • Should keep strong
discoveries/Spe open the new doors for transferring the eye on its
ed of many businesses. New technology, the rate of competitors.
technology markets are developed in obsoleting the current • Should develop
transfer the result of innovation and technology will be higher. strong and effective
/ Rate of obsolescence of In current era, technology R&D department.
obsolescence technology. Technology is changing its form very • Should go for advance
and mechanism of frequently. If Instagram research to find new
operating business fails to adopt new ways before rivals.
obsolete due to the technology with time, it • Should new
innovation and new may run out of business. technological trends
discoveries in technology. before time. Like
Disruptive technology Metaverse
creating challenging Technology.
environment for Instagram.

Factor Impact Impact on Instagram Organizational

Moves
Competition These laws are regulations Positive Impact : To enhance user
Law in the field of protection, • Such laws keep a capacity within the folds
promotion and of precedent of a fair of competitive laws
maintaining competence. play between the without any deception
They allows the free flow of competitors. or error. Instagram
a market. In any case of believes that such laws
uncertainties, it is possible • Standards are kept are duly followed by
for the government to that are monitored rivals as well and that is
intervene in order to and balanced so the responsibility of
restore the free market there is no chance governments to keep an
economy. This means of deviation from eye. Keeping this surety
government intervention rivalries like intent, Instagram tends
must be necessary. This youtube and to attract the global
allows businesses to twitter. masses and integrate
maintain and develop as a them on their platform.
strong competitor in their
field, fairly as per laws. • Fair play often
leads to more
focus on
organizational
moves rather than
spying on
competitors.

8
Corporate Strategy MBA Fall-2021

• Gives directions
and limits to
Instagram.

Negative impacts :

• Policies keep on
changing effecting
normal course of
business

• Sometimes
policies can
contradict the
goals of actual
business that is
tantamount to
impediments to
the business itself.

• Reduces the
probability of
taking risks for
expecting great
rewards.

• Frequent
government
involvement may
hinder the ease of
doing business.

Employment Employment Law is Positive Impact : Instagram tends to

Law designed to protect the • Forces Instagram address the following
rights of employees whilst to realize aspects :
ensuring that employers employee rights • Discipline,
act fairly. Employment Law grievances and
affects every single • If rights are dismissal
employee’s experience in realized and given procedures.
the workplace but crucially that would • Bullying and
sets the standards that HR eventually harassment
and leadership teams must improve the • Equal pay
follow when it comes to working capacity • Maternity and
managing matters that of employees and parental rights
impact employees in the that would

9
Corporate Strategy MBA Fall-2021

areas that include increases the • Discrimination

discipline, harassment, efficiency of the on basis of age,
equality, wages, health etc. business. sex, marital
status, race,
• Sets standards for gender, religion
a business working etc.
environment. Now • Health and
that’s mandatory safety
to be achieved. If regulations
achieved it would • Data protection
eventually again • Holidays,
increase efficiency. working hours
and pay
Negative Impact : • Terms and
For this law to be conditions of
implemented and achieved employment
the HR polices need to be
regularly updated and
properly communicated to
the employees. This is an
extensive and time
consuming process and
may never end because
human behavior is not
rigid.
Health and Under the law employers Positive Impact : • Instagram tends
Safety Law are responsible for health • Instagram has its to create a
and safety management. own employee monitoring team
Under the law employers health facility laws to observe the
are responsible for health that maintain a health and
and safety management. standard for their safety of it’s
Accidents may occur that employees so that employee’s at
may impact the brand the organization workplace.
image of the organizations. delivers Furthermore
For this point it is satisfaction and first aid trainings
mandatory on expects efficiency. and equipment’s
organizations to make sure This is brilliant. are given to all
the health and safety of the employees and
employee’s as set by the • Can advertise such instructions are
organization itself or the as efforts to attract given on how to
per government labor employees and stay connected
policies. users as well. with the
monitoring team
• Increase in brand facility in case of
image and brand emergency.
value
• Medical
allowance also

10
Corporate Strategy MBA Fall-2021

Negative Impact: given as

If neglected, it may impact benefits.
the brand image of the
organization and reduce its
user capacity.

Product Not applicable Not applicable Not applicable

Safety

11