Foundations of Business Communication

Foundations of
Business
Communication

Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
How the external environment influences the operations of the company...............................................3
The main issues faced by the Pearson plc...............................................................................................6
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7
Reflection....................................................................................................................................................9

Introduction
Business is an entity which is engaged in commercial, industrial or professional activities. These
are the activities where individuals are engaged in introducing and selling the goods and
services to generate revenue from it (AbuJbara and Worley, 2018). Business communication
means the process of communicating for the purpose of business transactions for ensuring
mutual understanding and for the benefits of business. It is the kind of a communication to
maintain the relation between the sender and receiver with and enhance the common
understanding in business. The chosen an organisation in this report is Pearson plc. Pearson
Education is a British and education publishing and assessment services to schools and
Corporation. It is founded in 1844 and headquarter is located in London, England. The report is
being discussed about the impact on the company by the external environment with the help of
different models. The report is also discussed about the competitive position of the organisation
through porter's five forces model.
Main body
How the external environment influences the operations of the company
SWOT analysis of Pearson plc Company
SWOT analysis is a model which helps the company to plan the internal and external
factors which are faced in the business environment at present. SWOT stands for Strength,
Weakness, Opportunities and Threats (Jones and et. al., 2017).
Strength the company has numerous strength which helps them to thrive in the
Marketplace (Goryushkina and et. al., 2019). It is among the best leading Organisation in
industry as they protect the market share in the existing market and penetrating new market
(Aichhorn and Puck, 2017). It has a strong brand portfolio. The company has great
brand portfolio where they can easily expand their business into a new product categories.
Weaknesses the company has to improve their strategies of choosing the market (Leung,
Sun and Bai, 2017). They have a limited success outside core business it is the leading company
in the retail sector industry but has to face challenges in moving to the other segments of
products and services in the present culture of market.
Opportunities: Company has new environmental policies where they can enhance their
Technology and gain more market share with the new innovative product categories (Bowden,
2020). New customers from online channel the company used to attract new customers buy
satisfying their needs and wants in an effective manner.

Threats: The Company has faced new to regulations of the environment under Paris
agreement could be threat to the certain existing product categories. The enterprise has a thread
of their competitors and there attractive strategies. Increasing trend towards invasion in the
American economy leads to similar reaction from the other government which has a negative
impact on the international sale of the company.
PESTEL analysis
It isn't tool which used by the companies to analyses the Macro environment of the
organisation. It stands for political, economic, social, technological, environmental and legal
factors that impact the external environment of Pearson PLC.
Political factor: It is the factor which helps in determining the external factor which has
an impact on the performance of company (Tölkes, 2018). They have any antitrust laws which
have an effect on publishing the books.
Economic factors: Pearson has to face the external factors such as inflation rate saving
rate interest rate foreign exchange rate and economic cycle which helps in determining the
aggregate demand and investment in an economy (Locatelli and et. al., 2020). It has an impact on
the competitive advantage of the firm.
Social factor: the culture of the society and the ways of doing things has an impact on the
culture of an organisation. The standard of education and the level of education in the Pearson
Company an impact on the organisation.
Technological factors: The trends in the technology have disrupting various Industries
across the board. Publishing the books has an impact on the structure of the cost. Rate of
technological diffusion is also high.
Environmental factor: every market has different rules and Standards of the environment which
has an impact on the profitability of the firm. It also depends on the place where company is
offering their products and services (Tung, 2017). These factors include weather climate change
changes in the laws and regulations with regards to the pollution of the environment. The
company used to produce their products with the process of recycling it which helps them in
attracting the customers those who love their environment.
Legal factors: the company used to determine legal factors which include anti-trust laws,
discrimination laws, copyright, Trademark, patents and other intellectual property laws health
and safety laws and data protection laws.