Analyzing PESTLE Analysis and Its Applications

The assignment involves analyzing the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) framework as a tool for business analysis. It also requires applying this knowledge to identify relevant articles from a given list of research papers on topics such as growth planning, urban development, and sustainable settlement planning. The student is expected to understand the significance of PESTLE analysis in strategic planning and provide specific details about each article, including its title, authors, year of publication, and a brief summary.

Planning For Growth

Table of Contents
INTRODUCTIONS.........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities....................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............1
TASK 2............................................................................................................................................2
P3 Assess the potential sources of funding available to businesses......................................2
TASK 3............................................................................................................................................4
P4 A business plan for growth................................................................................................4
TASK 4............................................................................................................................................7
P5 Assess exit or succession options for a small business.....................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................7
.........................................................................................................................................................8

INTRODUCTION
Every business is required to analyse internal as well as external market to identify the
availability of several options of business growth. In relation to small businesses, this works as
the guidelines for the business organisation which can enhance sustainability. This report is
based on B.R Marketing Ltd, which is small marketing firm. This organisation offers its services
to technological sectors within the UK. This firm is entering into a contract whose bid is
£100,000 named as Alcohol Social Marketing Campaign (Albert, 2017). Present report is going
to discuss about the various option which can be used to evaluate the growth option for the
business enterprise. In addition to this, potential sources of funding which are available for the
small business with their advantages and disadvantage are going to be evaluated. At last, this
assignment will discuss about the exit and succession option which can be opted by the chosen
firm.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
There are various kinds of considerations which are necessary to be evaluated by
organisations to analyse about several growth opportunities to grab more market share
successfully. In case of B.R Marketing Ltd, they have to observe strategies of competitors to
make better practices and enhance profitability of business properly. It also includes to make
optimum utilisation of available resources to gain desired goals or objectives.
PESTEL Analysis
The PESTEL analysis can be described as to make an appropriate to observe with
analysing several factors such as political, economic, social, technological, environmental and
legal. It is necessary to evaluate all these element because they impacts in both negative as well
as positive manner on business which effects the regular productivity (Ward, 2016). In case of
B.R Marketing Ltd, they have put efforts to analyse impacts of these components to conduct
operations properly.
Political factor : This can be described as to gain knowledge about several political
norms or rules which are mandatory to be followed for carrying out business in proper manner. It
is important to make an effective as well as efficient strategies or policies in company as per
political regulations of particular area. Thus, B.R Marketing Ltd have to analysed the political
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stability of specific nation while running business because it will facilitates to achieve targets
successfully.
Economic factor : The economic factor includes various components such as taxation,
interest rates, currency exchange, unemployment level, inflation and so on. Thus, these factors
are flexible and changed in different situations which impacts on business by creating several
issues. In case of B.R Marketing Ltd, they are required to thoroughly analyse overall economic
elements to rub business successfully along with generating better profitability.
Social factor : This can be explained about various kinds of cultural or religious value
and beliefs of people which is also impacts on business (Wey, 2015). It includes the different
ideas, concepts, values and thoughts of citizens which plays an important role to make decision
about purchasing particular service. The B.R Marketing Ltd have to focus of several
differentiated values or cultural norms of people while conducting any advertisement and ensure
that not to harm religion of any group of population because it may impacts negatively on image
of company.
Technological factor : There are various kinds of technologies that are used by
organisations because it provide help to carrying out different operational activities or procedures
properly. It will also facilitates to complete particular targets in less period of time along with
generating better productivity on regular basis. In case of B.R Marketing Ltd, they have to utilise
several effective as well as efficient technological software or other technique to conduct more
appropriate
Environmental factor : This can be described as to analyse various kinds of
environmental issues such as pollution, global warming, ozone depletion, extinction of species
and many more. It is necessary for companies to analyse several natural problems which are
caused due to operational activities or equipments. Thus, it is required to implement ozone
friendly equipments, pollution free vehicles for transportation, releasing toxic chemicals to
surroundings after proper treatment and so on (Zhang and et. al., 2013). The B.R Marketing Ltd,
have to focus upon such issues and take appropriate steps while conducting their operational
activities which facilitates to increase goodwill of company.
Legal factor : There are various kinds of legal rules or regulations which are mandatory
to be followed by every organisation to conduct their business properly. It is mandatory to get
updated information about legislations that are made by government authorities and build certain
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changes in policies of company as per legal norms properly. In case of B.R Marketing Ltd, they
have to follow several legislations while organising any advertisements or promotional
campaigns because it helps to reduce legal issues which may impact negatively on goodwill of
an enterprise.
Porter's Generic strategy
Cost leadership : This can be explained about criteria of producing desired goods at
affordable price along with providing better features to customers (ZHANG, ZHAO and CHEN,
2013). It includes to put effective efforts towards operational activities for reducing overall cost
of manufacturing so that services can be provided to people ta reasonable price with required
quality. The B.R Marketing Ltd have to make their marketing services affordable with better
characteristics for every person so that they can grab more number of clients.
Differentiation leadership : The identification market of product or brand should be
unique and different form others along with remaining its effectiveness among customers. B.R
Marketing Ltd also focus on their logo and other signs and put efforts to improve for making
more appropriate than other competitors.
Cost focus : This includes criteria of analyse every step of operations and try save cots in
each activity which facilitates to reduce overall cost organising services in B.R Marketing Ltd.
Differentiation focus : The differentiation refers to make product more attractive and
unique than other competitors by making strategies more effective to provide better quality (Ziari
And et. al., 2012).
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
Ansoff Matrix is considered as the strategic tool which suggests the management of
organisation in identifying various options available for growth. This concept was given by
Russian American Igor Ansoff in 1957. In relation to this, strategies of this matrix is based on
four different strategies which involves market penetration, product development, market
development and diversification. In context to B.R Marketing Ltd, its manager have used Ansoff
matrix to analyse growth options for this enterprise. According to this matrix four different
strategies which are available for its growth are described as below:
Market Penetration: This strategy refers to increase the market share of the organisation
with existing product in the existing marketplace. In this, enterprise emphasize on improving its
sales of existing offering by capturing the new customers in the same market place. In relation to
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B.R Marketing Ltd, its manager can choose growth opportunity by targeting schools, colleges
and healthcare sector to provide its marketing services. This will lead to increase in its number of
customers at same marketplace (Allmendinger and Haughton, 2012). As a result it will enhance
the profitability of the firm.
Product Development: This strategy of Ansoff matrix states that organisation can grow
by introducing new product in the existing market. This helps the firm in increasing its variety of
products which will grab attention of many customers of that particular area. In context to B.R
Marketing Ltd, its manager can increase number of services by serving new promotional
activities like social media, attractive campaigns and events at same market place. This will
increase the customers attraction towards firm and enhance its brand image.
Market Development: This strategy emphasize on expanding new business by
introducing existing product in new marketplace. In context to B.R Marketing Ltd, its manager
majorly focuses on finding new market for the existing product. For example: this organisation
should start offering its services in new market or region like periphery cities and countries. This
can be considered as growth option as business of B.R Marketing Ltd is expanding other areas
too.
Diversification: In this strategy, new products are introduced at new market place.
Diversification is considered as most riskier strategy for growth for the small businesses as it
involves lots of investment. In this, strategy owner of B.R Marketing Ltd have to invest on
research and development departments in order to introduce new product according to the
requirement of the customers (Barbour and Deakin, 2012).
From the above mentioned strategies for growth, manager of B.R Marketing Ltd should
opt market penetration as its growth opportunity. As this strategy emphasize on finding out new
customers in the same market with the existing offering. In context to B.R Marketing Ltd, it
manager should target education and healthcare sector in order to grab the attention of customer
from this sector. It will directly increase sales of firm and expand its business in future for long
term.
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TASK 2
P3 Assess the potential sources of funding available to businesses
Every business requires financial sources for its growth. It is essential for the business to
choose appropriate financial option which are available for the business. In context to B.R
Marketing Ltd, this enterprise is small in size and requires financial support in order to
accomplish its goals and objectives. According to contract, owner of firm owns £20,000 and
have to arrange remaining £80,000 from others sources of funding. And some of them are
evaluated as below:
Personal savings: This financial source is the own amount of businessman which can be
used in the business operation in order to achieve business goals and objective. B.R Marketing
Ltd can opt personal saving as it does not involve any documentation which saves time of
business. Pros: Personal saving is effective sources of raising financial funds of the organisation as
it does not require any security to avail the fund. In this owner is not required to pay
interest to any one. Cons: It is considered as quite riskier source of raising fund as if the business will not
survive in future then whole invested amount will be wasted. Personal saving also avoids
the valuable advise of other investors which can be beneficial for the business in its
growth.
Bank loans: Bank provides loans to its customers at nominal interest rate in exchange of
security deposit by the customers. In context to B.R Marketing Ltd, its owner can take loan from
the bank as amount is turned in various instalments which considered as easier mode of returning
the amount. Pros: Bank does not involve in decision making process of the business. Along with this,
government of UK is providing various benefits to the small businesses which helps them
to grow there business (Beatley, 2014). Cons: Bank loan requires lots of documentation which consumes time of the business. If
the instalment are not paid on the given time period then property which is given to bank
security will be authorised by the bank.
Angel investors: These investors are the one who invests in business in exchange of
equity share. Angel investors are experienced and own developed skills which is beneficial for
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business growth. B.R Marketing Ltd can use this source for funding as it helps in business
growth. Pros: Angel investors participate in decision making process which provides valuable
advices to the enterprise. They shares the responsibility of the business owner which
improves the proficiency in business growth. Cons: Sometimes interference of angel investor in decision making process may affect
the efficiency of business which might result in huge losses.
Family and friends: In this, money is borrowed from the close friends and family
members. It is the most effective way of raising the fund small business. B.R Marketing Ltd, can
use this option as it will not require any security to raise the fund. Rate of interest are nominal in
this funding option. Pros: It is the fastest funding option with various flexible methods of payments.
 Cons: If the amount are not returned on given period of time it may ruin personal
relationship with friends and family members.
Among the above mentioned sources of funding, B.R Marketing Ltd have chosen Bank
Loan to to increasing £80,000 according to the requirement of the business. As bank provides
loan at nominal interest rate with several payment options. This is beneficial for the small
businesses as they can return the amount in easy monthly/annually instalments.
TASK 3
P4 A business plan for growth
Business plan refers to the formal idea of business goals and objectives. It works as the
guidelines for the top management in their future decision making process. An appropriate
business plans includes overview of firm, its products and services, objective, financial
information, several resources and its execution method. It also helps the organisation in
achieving its goals and objectives in future. Business plan of B.R Marketing Ltd is described
below with all the essential information.
Overview of the company: B.R Marketing Ltd is a small enterprise which is based in UK.
This firm belongs to service industry. This organisation offers its services within the UK only.
Company helps other corporate sectors with delivering appropriate data and aid them in
improvising profit margins with the help of promoting their products and services. On the other
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hand, they also believe in working with quality so that to sustain at marketplace of United
Kingdom for a longer period of time.
Products and services of the company: This firm offers various types of marketing
services to its customers in UK. Its services includes several methods of advertisement like
leaflets, TV ads, radio jingles, magazines, newspaper, etc. In addition to this, it also offers
services of promotional events, campaigns, social media to its customers.
Mission and vision: Mission and vision statement of B.R Marketing Ltd emphasize on
providing effective and innovative brand marketing to the clients which will help them to grow
their business (Eddleston and et. al., 2013).
Situational market analysis: In this, top management of the B.R Marketing Ltd evaluates
the external and internal factors in order to identify the opportunities and options available at
marketplace. This helps the understanding their weakness and guides them to modify existing
products and services according to the need of the customers. According to the situational
analysis of B.R Marketing Ltd, strengths and opportunity of the firm are described below:
Strengths Opportunity
 B.R Marketing Ltd are using quality
marketing tools to promote the products
and services of its clients. This
increases satisfaction level of the client.
 This enterprise is builds positive
relationship with its client which retains
the existing customers for long term
and also attract new clients towards the
company.
 This firm can expand its business by
providing its services in the periphery
city and countries of UK which help
them to increase its number of
customers.
 Apart from this, B.R Marketing Ltd
can expand its business by grabbing the
customers of others sectors like
Healthcare and educational sectors. It
will contribute in business growth.
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Formulation of budget: In this stage of business plan, budget for the organisational
activities is prepared by the manager. This budget is formulated on the basis of business
operations and requirement of every sector of business. Budget of B.R Marketing Ltd is
described as below which includes its financial information of profit and losses.
From the above illustrated cash flow of B.R Marketing Ltd, it has been analysed that this
enterprise have appropriate funds which are enough to pay off all the debts and liabilities. Taxes
of the firm are paid on yearly basis. Cash in hand of 2015, 2016, 2017 are $102203, $200354,
$238503 respectively and its approximate earning of past three year is $72001.
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Identification of targeted market: Targeted market is considered as the area where B.R
Marketing Ltd can expand its business at its best and grab maximum number of customers. The
target market for this organisation constitutes of other business which are looking to outsource
their marketing activities. Along this, they even help firms to have establish appropriate position
and image in market. Top management of this firm have decided to target healthcare and
educational sector for its future growth and opportunity. It can be said that this healthcare sector
will provide good range of business to BR marketing with which they can enhance their
profitability ratio in effective manner.
Allocation of resources: Top management of B.R Marketing Ltd is considered
manpower of the firm as its essential resources as they are the only one who are contributing
towards the success of the business. Apart from this, it is required by the management to use is
financial and technological resources in appropriate manner for the motive of achieving business
goals and objectives (Glock, Jaber and Zolfaghari, 2012).
Implementation of plan: At last, it is required by enterprise to execute all the above
mentioned plan for the better result. Top management of B.R Marketing Ltd. can discuss this
business plan with its employees which will help them in modifying before its accomplishment.
TASK 4
P5 Assess exit or succession options for a small business
There are various kinds of methods for exit and succession which can be used by companies as
per B.R Marketing Ltd and these are explained further –
Exit routes for successful business
Selling or floating of business: It includes the criteria of selling overall shares of
business to exit from the same.
Benefit Drawback
The floating charge can be created without
having any fixed asset.
Need large reserves to defend the fixed
exchange rate.
Valuing the company: The term valuing company includes to first to know about actual
value of business for selling it more profitable and appropriate price.
Benefit Drawback
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It is helpful for valuing non- controlling
interest and property investment firms.
This method assumes that growth is constant
but it is not actually happen.
Growth and succession planning strategies
Areas of potential conflict: This involves to determine possible sections of generating
issues and solve them to attain growth successfully.
Benefit Drawback
It helps to facilitate better coordination
between employee that facilitates to achieve
targets successfully.
It is kind of time consuming process which is
carried out on regular basis.
Succession planning: It includes the criteria of making an appropriate technique or
policy which provide support to gain desired target successfully which facilitates to achieve
success.
Benefit Drawback
It helps to reduce future uncertainty and meets
career development requirements of
employees.
It creates rivalry amongst staff members and
change the organisational structure.
CONCLUSION
From the above mentioned report it has been concluded that every business organisation
have to find out various options which are availability for its growth. It is required by business
manager to analyse internal and external environment to identify the growth opportunities. In this
report, PESTLE analysis have been elaborated in order to understand the growth options for
small enterprises. In addition to this, various potential sources which are available according to
the need of business have been described. Among them bank loan is considered as the most
convenient option for the business which avails amount at nominal interest rate and easy
payment options. An appropriate business plans includes overview of firm, its products and
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services, objective, financial information, several resources and its execution method which are
also mentioned.
REFERENCES
Books and Journals
Albert, V., 2017. From child abuse to permanency planning: Child welfare services pathways
and placements. Routledge.
Allmendinger, P. and Haughton, G., 2012. Post‐political spatial planning in England: a crisis of
consensus?. Transactions of the Institute of British Geographers. 37(1). pp.89-103.
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Eddleston, K. A., and et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Glock, C. H., Jaber, M. Y. and Zolfaghari, S., 2012. Production planning for a ramp-up process
with learning in production and growth in demand. International Journal of Production
Research. 50(20). pp.5707-5718.
Goodfellow, T., 2013. Planning and development regulation amid rapid urban growth:
Explaining divergent trajectories in Africa. Geoforum. 48. pp.83-93.
Grover, B. E., Bokalo, M. and Greenway, K. J., 2014. White spruce understory protection: from
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Lewis, W. A., 2013. Theory of economic growth. Routledge.
MacLeod, G., 2013. New urbanism/smart growth in the Scottish Highlands: Mobile policies and
post-politics in local development planning. Urban Studies. 50(11). pp.2196-2221.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M. J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Osiyevskyy, O. and et. al., 2013. Planning to grow? Exploring the effect of business planning on
the growth of small and medium enterprises (SMEs).
Schetke, S., Haase, D. and Kötter, T., 2012. Towards sustainable settlement growth: A new
multi-criteria assessment for implementing environmental targets into strategic urban
planning. Environmental Impact Assessment Review. 32(1). pp.195-210.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wey, W. M., 2015. Smart growth and transit-oriented development planning in site selection for
a new metro transit station in Taipei, Taiwan. Habitat International. 47. pp.158-168.
Zhang, J. and et. al., 2013. Planning for distributed wind generation under active management
mode. International Journal of Electrical Power & Energy Systems. 47. pp.140-146.
ZHANG, J., ZHAO, D. and CHEN, H., 2013. TERMINATION OF GROWTH
SUPREMACISM AND TRANSFORMATION OF CHINA'S URBAN PLANNING [J].
City Planning Review. 1. pp.45-50.
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