Business Environment Analysis of British Gas: Industry and Firm Analysis

Strategic Management

EXECUTIVE SUMMARY
This report cover a business environment analysis of British Gas thorough examine of
internal and external analysis to identify every existing or upcoming factor that may or may not
affect companies growth in upcoming future. To analyse external factor the tools such as,
PESTLE, Porter's five forces and resource based value analysis and to analyse internal factor the
tools such as, VRIO, value chain and SWOT analysis.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Environment Analysis Of British Gas..............................................................................1
EXTERNAL ANALYSIS......................................................................................................1
1 PESTEL...............................................................................................................................1
2 Porter's Five Forces.............................................................................................................2
3 Resource Based Value.........................................................................................................3
INTERNAL ANALYSIS.......................................................................................................4
1 VRIO...................................................................................................................................4
2 Value Chain.........................................................................................................................6
3 SWOT..................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Strategic management is a process of procedure, objectives and setting goals in order to
give organisation a competitive advantage. (Siegel and Leih, 2018) British Gas is a home and
energy service provider in the United kingdom,(Telecom and Energy, British Gas’’) it was
founded in 1977 with headquartered in England, UK. In this report there will be a discussion of
business environment analysis of company with the help of external analysis through PESTEL,
Porter's five forces and resource based value, to understand companies competitive position with
its structure and market detail through current trends and future trends with key drives of market.
Lastly a internal analysis through VIRO, value chain and SWOT analysis, to understand the
resources and capabilities of firm that will impact on success of organisation.
MAIN BODY
Business Environment Analysis Of British Gas
Business environment analysis refers to aggregation of organisation, people and other
forces that may impact on industry with their operation and production level.(Betti and Sarens,
2020) It also helps in identifying business opportunities, resources, planning and improvements
made in performance, growth and profitability of organisation.
EXTERNAL ANALYSIS
External analysis helps in examining business environment of organisation that includes
factors as competitive structure, dynamics, history, market trends and competitive position, it
helps in analysing external factors through global, social, demographical, technological and
political analysis of company.(Erbas, 2019) To analysis external factor of British Gas with the
use of analysis tool such as,
1 PESTEL
PESTEL analysis provides a framework that can be used by company to monitor the
external factor of the organisation.
Political Factor-
Political factor has various effect on British Gas which cause risk due to different
government policies that provide a sustainable energy, low carbon and a climate resilient
development,(Alves Ribeiro Rosa, Armellini and Robert, 2021, June) Also due to recent
1