(Solved) - Assignment on Business Environment

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .........................................................................................................................................1
Examine how your chosen company is governed and structured. .............................................1
Task 2 ............................................................................................................................................3
Evaluate the importance of carrying out PESTEL analysis for an organization.........................3
TASK 3 ...........................................................................................................................................4
PESTEL framework to analyse the external environment of Plus500: ......................................4
CONCLUSION .......................................................................................................................7
REFRENCES ..................................................................................................................................8

INTRODUCTION
The term business environment may be defined as the all the internal and external factors
of the environment which affect the business organization directly or in directly are known as the
business environment, business environment is the part of the business management or a
marketing term. the business environment helps to identify or analysis the business opportunity,
tapping useful resources, coping with changes etc. this report is completely related to the Pluss
500 company, Pluss500 take as company in report, it is the online trading industry of the UK.
Company was founded in 2008 by the Alon Gonen, Mal Haber, the pluss500 company revenue
was around US$ 720.4 million, and its operating income was US$ 505.3 million or net income
was US$ 379.0 million in the last year 2018. this report of will cover the main topic and provide
information related to the business environment in the plus500 company how it is governed and
structured, importance of the PESTEL analysis of plus500 and used PESTEL framework to
analysis the external environment of the company.
TASK 1
Examine how your chosen company is governed and structured.
Plus500 is an international financial company deals with the online trading services. It is
a public limited company. It is one of online trading industry of the UK. Pluss500 company was
founded in 2008, Android based trading platform was introduced in 2012 by Pluss500 company
for the android gadgets, its headquarter are based in Israel. Pluss500 company subsidiaries are in
UK, Cyprus, Australia, Bulgaria and Singapore. Pluss500 introduced web-based version in 2010,
In 2011 pluss500 introduced their first app for the apple users, pluss500 introduced their
windows app in 2014, including German, Greek, Italian and many more pluss500 apps are
supported in 32 language, it is analysis that approx. 40% transaction are done with the smart
phones or tablets,
Alon Gonen, Gal Haber, Elad Ben -Izhak, Shimon Sofer are the founder of the Pluss500. The
company has the functional and hierarchical organizational structure, the company is regulated
and authorized by the financial conduct authority, the Australian Securities and Investment
Commission, the Cyprus securities and exchange commission, monetary authority of Singapore,
and the Israel securities authority. The company is governed by the board of directors Penelope
Judd, Charles Fairbairn, Daniel king, Steven Baldwin are the director of the pluss500, these all
are the independent non-executive director of company, Charles Fairbairn is the senior
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independent non-executive director and external director of the company. Gal Haber is the
managing director of the pluss500(Komljenovic., Loiselle and Kumral., 2017). Penelope Judd is
the chairman of the company (Saleem., 2015). Mr. Asaf Elimelech is the chief executive of the
Pluss500 company, under his previous role or designation as the company chief subsidiaries
officer he was responsible for the managing the company subsidiaries (Virglerová., Dobeš and
Vojtovič., 2016). In 2016 February Mr. Asaf Elimelech was appointed to the chief executive
officer in the board. Mr. Asaf Elimelech was graduate from the Haifa university and he is
certified accountant in Israel.
Relationship between board of director and shareholders of the Plus500:
The Pluss500 inspire the participation of institutional and as well as the private investors.
the chief executive officer and the financial officer of the plus500 company contact regularly
with the shareholders generally in the terms related to the problems and issue related to full and
half year result, exchange of information or having words with private individual is arranged
through the annual general meeting of the Plus500 company, the chairman of the pluss500
company audit , answers to question in the annual general meeting of the pluss500 company
make available through nomination and r enumeration committees of the company. Information
is provided to board on meetings with the shareholder of the pluss500 company and analysts of
the company (Prajogo., 2016). The non-executive directors of the pluss500 company are always
presence to interact to major shareholder of the company if its needed.
Relationship between board of directors and employees of the Plus500:
The relationship between board of directors and employees plays an important role in the
Plus500 company poor relationship between them hinder the company's growth and falls the
morale of the employees on the other hand good relationship between board directors and
employees creates the positive work environment in the Plus500 company and leads to better
future growth of the company. Under the Plus500 company presence of clear and open
communication or exchange of ideas or facts and transparency of the information between the
board of directors and the employees of the company (Erasmus., Strydom and Rudansky-
Kloppers., 2016).
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Task 2
Evaluate the importance of carrying out PESTEL analysis for an organization.
PESTEL analysis plays a vital role in the growth of the plus500 company, even it is
development of the product line or opening new company in the new location, PESTEL is the
important tool in making strategies or the planning of the plus500 company. Some of the basic
importance of the PESTEL analysis in plus500 company are discuss below:
 PESTEL analysis of the plus500 company helps owner of the company in determining
important change in the political, economic, social, technological and legal factors
(Jaakkola and et.al.,., 2016).
 PESTEL analysis of the plus500 company helps the company for doing or make effective
plans for the increasing growth of the plus500.
 Other department of the plus500 company like accounts, sales and marketing are control
from inside, plus500 put more employees of the company in the sales department of the
plus500 to generate the revenue.
 PESTEL analysis of the plus500 is the effective element it helps the plus500 to determine
the steps company can take in starting up or conducting business and the bases for
plus500 SWOT analysis.
 PESTEL analysis helps plus500 to allow what company's customer needs and wants
leaning being business solution for their customers.
 PESTEL analysis of the plus500 helps in exploiting opportunity of the company from
time to time due to external factors such as lower interest rate in the real estate industry
which create increase in demand for housing.
 PESTEL analysis helps the plus500 to get ready for possible threats which come due to
external factors.
 The good thing of the PESTEL analysis it makes simple and easy to learn or understand
the factors which affect the plus500 company business environment.
 PESTEL analysis allows plus500 company to determine conclusion of entering new
market nationally as well as global, arrange mechanism that allows plus500 to identify
and exploit new opportunity. Boots the development of strategic thinking within plus500.
 PESTEL analysis of the plus500 include cross functional ability and expertise.
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REFRENCES
Books and journal
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Belás, J and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Deasy, S and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Jaakkola, M and et.al.,., 2016. Is more capability always beneficial for firm performance? Market
orientation, core business process capabilities and business environment. Journal of
Marketing Management, 32(13-14). pp.1359-1385.
Kljucnikov, A and et.al.,., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
Komljenovic, D., Loiselle, G. and Kumral, M., 2017. Organization: A new focus on mine safety
improvement in a complex operational and business environment. International Journal
of Mining Science and Technology. 27(4). pp.617-625.
Kozubíková, L., Homolka, L. and Kristalas, D., 2017. The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of
Competitiveness.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Virglerová, Z., Dobeš, K. and Vojtovič, S., 2016. The perception of the state’s influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public.
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