Business Environment

Instruction examinate your company is governed and srructured (733)wards Evaluate thw importance of carrying PESTEl analysis for organisation 498(wards) Use the PESTEL frame wark to analyse the external environment of BARRATT company ((978) We must give general overview of BARRATT comoany including its history ,its organisation structore . Evuate the importance of PESTEl analysis for the business organistaion Make a lust of Political,Economic,Sicial?Technological,Environmental and Legsl factors that influence thw environmental of the company I have chosen(BARRATT)and ddiscuss how these factors ipact Barratt compani Exexutive summary Table of contens Instruction Main bodi Conclusion Reference list

Business Environment

Executive Summary
It has summarised about the concept of Business environment that help for analysis the internal
and external factors of Barratt development plc. It always influence to change the business
operations and functions. It may including customer, managers, supply chain demand. It also
defined that sum of collection of factors which are used in the business for improving the quality
of services by implementing innovations. It has been summarised about the Barratt development
that effects on the business activities in global world.

Contents
INTRODUCTION.....................................................................................................................................5
MAIN BODY.............................................................................................................................................5
TASK 1...................................................................................................................................................5
Discuss about the Barratt Development PLC organization that governed and structured........................5
TASK 3...................................................................................................................................................8
Discuss about the use of pestle framework to analyse the external environment of Barratt development
PLC firm..................................................................................................................................................8
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
Business environment is mainly refers to the overall surrounding of organization that
many include both negative and positive factors which impacts on the business functionality. It is
based on the internal and external factors of companies that always influence to change the
business operations and functions. It may including customer, managers, supply chain demand.
On the other hand, it also defined that sum of collection of factors which are used in the business
for improving the quality of services by implementing innovations. In this assignment, it will
discuss about the Barratt development organization and also identifying its significance which
carry out through pestle analysis. Furthermore, it will describe about the external environment of
organization when how they effects on the business activities.
MAIN BODY
TASK 1
Discuss about the Barratt Development PLC organization that governed and structured.
Barratt development PLC is the largest organization which based on the residential
property development firm in UK which operating 30 different divisions in global network. It
was founded in 1958 by Greensitt Bros. he was the great entrepreneur that has developed their
own business in global marketplace (Aithal, 2016). In 1962, Lewis Barratt and Lewis Greensitt
has acquired the overall control of organization and also embarked on expansion plan for five
years. The organization was floated on stock exchange in 1968. He was planned for the purpose
of growth and development. After sometimes, Lewis left shortly after floatation in 1973 and the
name of company was changed. In 1970, it saw making the serious of transforming, acquisitions
from their local house builders which are building around 10000 houses a year. In term of
expansion, it becoming central part of Barratt development in which used the high profile
marketing concept that are added more features in their advertisement. It also provided the
variety of starter homes for buyers and offering different past exchange procedures in trading. In
recent year of 1983, the organization has sold the recorded approximate 16,500 house which
making it by far as the largest company in term of house builders. (Aithal, 2017)In 1984, Barratt
development PLC was hit the success in global market and established their position where it
offers the timber framed construction and also lunching the new item with wide range to increase

productivity as well as profitability. The famous Margaret thatcher purchase a house of Barratt’s
which are the most up market in London. However, in 1991 the organization was badly affected
by recession where lawire barratt going from retirement in 1997 and also remained as life
president until his death in 2012. Afterward, the organisation was soled Barratt American that
has established in 1980 California. The new owner of company will start to restructuring of its
banking covenant package which are considered as a non-profit residential asset management
that provide the services of property management. David Thomas was appointed as chief
executive in 2015.
The Barratt development PLC Firm is basically used the self-created upmarket brand
which operates different type of commercial property in UK. In 2007, it was change their slogan
to “build around you” which emphasises for fifty years and also improve the design of house
buildings. It mainly including the massive TV and other type of advertisement source such as
marketing campaign. In the organization, the board of director is responsible for long term
success where different executive manage the business activities on daily basis (Cadle, Paul and
Turner, 2010). It provide the adequate level of scrutiny and other construction challenges in
which support to all proposal which may including accountability, strategy, responsibility,
performance and sustainability. It also taking into account of various stakeholder interests. In
terms of development, it always consider decision of board as per discussion and ensure that
decision must be implementing in right manner. The entire structure of organization is composed
in the form of board and committee which making effective decision for growth and
development. The regularly review of board operations and also decomposition to ensure it retain
for balancing the experience, skill and knowledge. It enabling it discharge of roles,
responsibilities and duties towards the organization. On the other hand, the board through the
remuneration committee has established the transparent procedures for making policy on
remuneration. Many shareholders approved policy as per act 2017. It is mainly designed to
promote the long term success for expanding business across the world. Barratt development Plc
also concern about the commercial construction which develops commercial houses, building in
UK. It is great project of Wilson Bowden to develop the property in different locations and areas
in cities. As per analysis, it has found that there are total three consumer brands acquire Barratt
development plc for purpose of business expansion. It is golden opportunity owner organization

that target specific group of people, who are investing money in property development in
marketplace.

TASK 2
Describe the significance of carrying the pestle analysis for Barratt development organization.
Pestle analysis is the better method for planning which help to reduce threats of Barratt
development firm. It useful for creating idea of product launching, product development and
marketing strategies that increases success of business (Cadle, Paul and Turner, 2014). It is the
most cost effective which providing the depth analysis of business and also create new
opportunities in order to gain competitive advantages. Pestle analysis is an important approach in
the business evaluation which consider as preliminary stage in business planning. It carried out
to identify the competitive advantage over other organizations. There are different ways to
describe the importance of pestle analysis within Barratt development plc.
 Cost effectiveness: The effective cost of analysis is only time while putting extra efforts
in time that organise input and feedback. It is completely analysis through documentation
because it contain all type of information which required for business expansion. It is
basically straight forward concept which necessary of research and how much time
spend. Sometimes, Barratt development firm is considered as an optional but the cost to
do any level is not fluctuated. It is the great process for generating accurate result and
outcome.
 Alternative Development: Pestle analysis is a board sense that can provide specific
details about the products, customer relationship and other marketing plan. In
particularly, when Barratt development plc try to invent within the firm where pestle
analysis easily raise awareness of potential threats that are affecting overall enterprise
activities (Hyvärinen, 2019). For Example- if 15%population increases within particular
city that develop opportunity for business in term of productivity. In case if increases the
predominately citizen while target market from age between 20-30. It could chance to
reach on new people with launch new item in global world. Pestle analysis has an ability
to easily identify changes and also develop an effective plan to reduce damage and
increase profit rate.
 Exploit opportunities: it is important part of study about the external environment through
pestle analysis because it assumed technological and social trends which help for
identifying need and requirement of consumer. Barratt development plc use innovative
idea according to demand of customer because many peoples have changed their

preferences and moving towards new concept. For example- Barratt development firm is
mainly used the social media channel to share information about household to customer
within distributed channel. It became easy for people to check availability of property in
particular areas. On the other hand, it also creating new opportunity to build an efficient
marketing campaign and target particular group of people. A strong outreach concept
always increase chances of opportunities that convert into the preferences of customers.
In this way, it is main reason of pestle analysis for taking advantage and generate
accurate results.
 Depth Understanding: Pestle analysis is related to the environment in both directly as
well as indirectly which affects on the business. Barratt development firm must follow
the health and safety law which providing facilities of customer (Islam and Mamun,
2017). There are many type of technological barriers in rural areas faced by consumer as
compare to the populated areas. In this way, it has needed for Barratt development plc
which will work on product development to improve current environmental condition.
Pestle analysis always help for organization to determine the affects of success in product
launching and also encourage strategic thinking development.
TASK 3
Discuss about the use of pestle framework to analyse the external environment of Barratt
development PLC firm.
Pestle analysis is based on the strategic tool and platform to analyse the macro
environment of Barratt Development PLC which stands for political, economic, social and
technological and legal factors that impact on the environment (Khan and Suhaib, 2019) . It
applicable for changing the macro environment that are directly impact on organization. This
type of analysis provide the great idea which operating all changes in order to manage the
competitive forces.
Political Factor
This factor play important role for impacts on the Barratt firm of long terms profitability
in global market. It is mainly operating the personal household goods in more than large number
of countries in marketplace. The existence at international stage increase the Barratt firm
sensitivity to change the political environment, sometimes, it also success of business

environment to diversify the risk. High political stability provide the friendly business
environment which help for predictable overall market trends (Rastogi and Trivedi, 2016).
Nowadays, in Barratt development present the political tensions which growing instabilities in
political culture that directly affects the business growth opportunities in marketplace. On the
other hand, frequently changing policies harmful for Barratt development firm in terms of
performance by increasing uncertainty for environmental. The corruption is negatively influence
the business environment while operating the countries with high level of corruption rate and
weak legalisation which increasingly political environment of organization.
Economic Factor
The factor is important for Barratt development firm which understand about the
economic factors such as labour market conditions, saving rates, inflation and exchange rate. It
can be determined the economic environment of organization. It has needed to estimate the
yearly basis growth trajectory of company. The economic development is directly influence on
the business performance which growing economic for offering wide range of opportunities to
Barratt development plc. It is an essential to analyse overall cycle of business economic
situation. The organization is extremely influenced by the extent to which government has a
spent the core infrastructure development while increasing the potential growth in respective
nations (SHTAL and et.al.,2018). The rate of GDP will identify the Barratt development Plc
ability to long term growth and development strategies but increase high unemployment signals.
In this way, it can be determined that interest rate always influence on borrowing ability towards
the investment, sometimes, exchange rate fluctuation occurs due to local currency which causes
for Barratt Development firm.
Social Factor
The culture of Barratt development firm which derives strong influence from different
trends, values and social norms. It has needed to understand about the demographic trends,
structure power and spending patterns of customer which help for Barratt development firm. The
organization is mainly used the information from social culture and community and target the
group of people on basis of their tradition. In society, the power distance can be shown with
acceptance of income inequality and hierarchy which affects on the organization. Within Barratt
development plc. assigned the specific role on basis of gender which increasing conflict among

people and also convert into serious problem in global world. In traditional, it already
distinguished the gender task will be different from other societies with the low stereotypes.

Technological Factor
It is defined the advancement of technological diffusion in global marketplace which
increase significance for understanding during decision making process within organization.
Barratt Development firm is mainly used different technological trends that capture the business
advantages in global market. For Example- It is increasing the profitability, enhancing the
efficiency and performance, boosting innovation etc. The Barratt development firm should
consider the on-going innovative technology that support business in competitive market where
it concern about the 5G techniques for identifying to deliver the positive enterprises results with
the help of speed improvement, user experience (Srdjevic, Bajcetic and Srdjevic, 2012). On the
other hand, in most of cases modern technology has not reached to their extreme level in Barratt
Development plc. So that it can increase the market share through emerging technology
innovations. This organization is also considered the investments which are made by other
competitors where how modern technology influence the value chain of business.
Environmental Factors
The factor is a type of growing environmental consciousness for changing the climate
situation or condition. It is considered the regulations, laws and standards across various market
where it require for presence of Barratt development to avoid unwanted and undesired
circumstances. It has compelled the enterprises to adopt innovative recycling and other waste
management practices. This type of innovative concept applicable in urban area which is highly
crucial part for Barratt Development firm. Many countries are offered the subsidies and also
encouraging towards investment of renewable technology. The organization can provide benefit
from renewable to ensure the long term sustainability. It also increased the satisfaction level of
stakeholders with expansion of brand value and image in marketplace.
Legal Factor
Barratt Development firm cannot enter in the business market without appropriate legal
environment because it is important part of regulatory structure to increase the performance and
efficiency (Zahari and Romli, 2019). The evaluation of legal aspects is required because it help
to avoid serious trouble and eliminate undesired circumstances in Barratt development plc. The
organization follow the health and safety law that provide facilities to the employees. Similarly,
Anti-discrimination law also required to carefully develop the human resource practices as a

discriminatory that applicable against the harmful for organisational image and values. Data
protection is an important issues due to the security and privacy which essential for business
development. Barratt development firm need to investigate about the data protection with
applicable regulation to protect information of customer and employees. In this way, the
organization must consider the factors to ensure regulation and compliances with protection law
of people.
CONCLUSION
As per discussion, it concluded that Business environment is a type of internal and
external factors of companies that always influence to change the business operations and
functions. It may including customer, managers, supply chain demand. It also defined that sum
of collection of factors which are used in the business for improving the quality of services by
implementing innovations. It has been summarised about the Barratt development organization
and also identifying its significance which carry out through pestle analysis. Furthermore, it also
understand describe the external environment of organization when how they effects on the
business activities.

REFERENCES
Book and Journals
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science. 4(1).
Aithal, P.S., 2017. ABCD Analysis as Research Methodology in Company Case
Studies. International Journal of Management, Technology, and Social Sciences
(IJMTS). 2(2). pp.40-54.
Cadle, J., Paul, D. and Turner, P., 2010. Business analysis techniques: 72 essential tools for
success. BCS, The Chartered Institute.
Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. Chartered Institute for IT.
Hyvärinen, H., 2019. Finnish companies entering Singapore: analysis of business environment
and cultural differences: Case: Exove Design.
Islam, F.R. and Mamun, K.A., 2017. Possibilities and challenges of implementing renewable
energy in the lightof PESTLE & SWOT analyses for island countries. In Smart Energy
Grid Design for Island Countries (pp. 1-19). Springer, Cham.
Khan, S.S. and Suhaib, M., 2019. Evaluating an International Human Resource Management
Strategy for New Telecommunication Group in Developing Countries, Concentrating on
Pakistan (A Case Study of Vodafone). Science International-Lahore, 31(3), pp.457-461.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
SHTAL, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T.
and TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of
business activities. Revista ESPACIOS, 39(12).
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a
water intake structure. Water resources management. 26(12). pp.3379-3393.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.