Business Environment

Business
Environment

INTRODUCTION
Business environment is created with internal as well as external environment that affect
the functions of the organisation. It involves workforce, government activities, management,
market,technological innovation, social trend, demand, economic trend, supply and regulations
of business. The factors that are prevail in the business environment are dynamic in nature and to
survive in market changes must be adapt as soon as possible (Beatty, 2018). It provides both
opportunities as well as threat for business. It enables to identify business opportunities, helpful
in tapping useful resource, coping with changes, assist to plan , Help to improve performance are
some of the importance of Business environment. There are two type of environment like micro
and macro in the business. Micro environment include operating business environment that
continuously influence the organisation(Begg, 2018). On the other hand macro environment is
the situation that exist in the economy as a whole rather than in specific region. The company
that is selected in this report is Hilton Food group plc. as it provide beef as well as lamb meat
packaging facility in UK. It was established in 1994. In London stock exchange it is listed. It has
around six factories and they supply their items in supermarkets of fourteen different countries.
The Governed and structure of Talk Talk is also examine in this report, importance of PESTLE
analysis of Talk Talk is also evaluate in the assignment. To analyse external environment of
company pestle framework is used in this report.
TASK 1
How the chosen is governed and structured.
The organisation that is select in this report is Hilton food group plc. It is a public limited
company. It deals in international packaging of food services in United Kingdom. It is a famous
supplier of meat packaging service. In 2013 it joint ventures with Woolworths in Australia to run
their factory of meat processing in western Australia and to introduce new factory in Victoria to
process meat (Beynon-Davies, 2020).The business model of Hilton is to source its primal meat
from local as well as global base of suppliers as it process and package in modern, large scale,
central meat packaging plant for distribution by hauliers of third party. As the brand deals in
large level that becomes necessary to generate competitive cost of packaging and achieve the
food safety assurance, hygiene and quality of product by groups discerning base of customer. As

geographical expansion and high range of product expansion helps in rapid growth and
development of business. Now Hilton is become the largest red meat packers in Europe and
generate huge amount of revenue. On 17 May 2017 It floated on the London stock exchange.
The speciality of the brand is to serve roasting joints, chops, mines, steaks, and prepare as well as
package service as per requirement of customer. They employ around 1001 to 5000 employees.
In Portugal it has its joint venture with Sonae Modelo continent are their other business that
prevail in retail industry as Hotel food corp supply large packets of meat product in their stores.
Australia, western Europe, central Europe are the three segments in which the organisational
deal. For development and introduction of new variety of items it adopts the strategy of
innovation.
Divisional structure is adopted by Hotel food corp as to ensure that the task that is
perform by the company it add some value. Hilton food group plc, Hilton food UK limited and
Hilton food ltd are bifurcate on global location basis in this structure (Boone, 2019). On the basis
of hierarchy it is to be governed it involves various departments under instruction of designated
leader. In this as according to speciality the company was divided in to different parts like
finance, It , operations, marketing etc. High calibre persons are general;ly appointed by the
company in different locations of the business. The top management of the organisation like
CFO, CEO Directors perform various important functions of the business so that business can
run effectively.
The Board is create good level of standard at corporate governance. On regular basis the
corporate governance must be review. The board includes chairman, executive and non executive
s in their corporate governance. The chairman is the person who lead the team of Board and they
set agenda and do regular interaction with executives of the company. The board are also
responsible to delegate authority and responsibility to different audit committees. To run
business in correct manner three directors are appoint in the company(Brown, 2018). The
executive director of the company is responsible for all the business of Hilton with its major
customer base. Some of the non executive directors of the company are Christine cross, Angus
porter, Rebecca, John Worby . Robert Watson is the chairperson of the company. The chief
financial officer of the company is Nagel Majewski he is also play a role of executive director in
the organisation. And Philip Heffer plays a role of chief executive director of the company. The
net income vary from 32.53m to 33.07 m every year. The contributing factor increase in

administrative, selling, general cost and on sales percentage from 8.84 % to 9.49% . It also
generate sound operating cash flow (Charter, 2017).
TASK 2
Evaluate the importance of doing PESTLE analysis for company.
To analyse and to control the macro environment a tool PESTLE is used by smart
marketers to analyse the business environment. PESTLE analysis is the initial steps that every
organisation has to perform before starting up of any business. If existing business is there it
indicates strong dependence on the industry. In Business expansion PESTLE plays a significant
role. IN every condition whether it is growth of product line or incorporate new organisation in
various different locations it is use (Cherunilam, 2020).
In below paragraphs Importance of PESTLE analysis are describe in detail.
Cost effectiveness: Time is the actual cost of PESTLE analysis. It is forward looking
activity as any person can do analysis of PESTLE as it is to be done to get better results.
PESTLE analysis help Hilton to consider all factors that affects positively or negatively on the
business as it support to reduce wastage. There is reduction in the unnecessary expenses that
make positive impact on cost (Dana, 2018).
Thorough understanding:In direct or indirect manner manner PESTLE analysis can be
understand. Pestle analysis help to overview many different factors that make impact on success
of product launches. It motivate the development of strategic thinking to understand plan deeply.
With deep study of factors related to political, social, legal, technology, economic,
environmental it can easily handle the difficult situation easily.
Develop Alertness: Pestle analysis is become helpful to raise awareness regarding
potential threat. With the help of this deep study uis to be perform to create a plan to increase
profit or minimise damage. PESTLE analysis help marketers of Hilton food group plc to become
attemntive about the situation that exist anytime in the company. Due to smart strategies and
awareness of market team it is easy to handle the situation that exist in the environment.
Exploit opportunities: By using PESTLE analysis it becomes easy to understand the
external business environment. And it becomes easy to grasp opportunities to strengthen and
grow firms business. By using Social or technological trend it can easily be analyse like an
today's environment that target market is going towards different channels of social media.
Marketing campaign can also be develop in front of competitor with the help of this. As it give

support to marketers of Hilton food group to take the opportunities to expand and grow business.
It can also expand business in new countries where there is less competition so that there is great
chance become successful is present (Evans, 2017).
Help to perform business plan: After considering all the political factor business
planning can be done. It help to handle the different situation that care present in the
environment. After doing deep analysation and finding the impact of these factors Hilton food
group Plc make their business plan. As the smart marketers make focus on different factors to
that they can easily formulate the business plan to achieve objectives in efficient manner.
Easy control of working of different department: To run business effectively and
make easy flow of working Hilton food group plc involve various department related to
accounts, sales, HR, marketing, customer service. As the working are interlinked and
interdependent on each other. By controlling the activities on these areas, large number of
audience are attract by Hilton that tends to increase sales and generate income as well as profit.
The external factor like social, political, economic, environmental, technology, legal are present
in the environment that makes impact on business of the company. It is necessary for Hilton food
group plc to perform PESTLE analysis when they serve in different country to expand business
so by using this situation that exist in the business can easily judge by company that affects the
business. It is to be done to deep study of market condition that create hurdles to marketers in
future (Gilliland, 2016).
3 PESTLE framework in order to analyse external environment in context of selected firm.
PESTLE analysis is a smart tool that becomes useful for an organisation to make strategy
to identify the macro factors that make impact on the function as well as operation of the
business. The word Pestle indicates political, economic, social, technology, legal and
environment. PESTLE analysis analyse all political factor and opportunities that becomes
beneficial for the firm. On the other hand it also analyse the threat as well as weakness that
makes impact on the business performance. In the context of Hilton food group PESTLE is to be
analysed (Skripak, 2016).

PESTEL analyses
For the accomplishment goals of the businesses and company it is important to analyse
the eternal as well as external environment factors effecting the growth of organization.
PESTEL analyses is use to identify the external environment factors effecting the growth of
administration, outside elements of corporation. These are the elements which can not be control,
organization have to plain according to it. So every organisation have to do PESTEL analyses for
better marketing strategies, for evolution of all functions of management, This techniques of
external environment analysis involves multiple elements and the Hilton food group plc cover all
these elements on their businesses plain, given below.
Political factors:
First element of PESTEL framework is political issues, it involve the investigation of
political laws and policies, which can effect the economy, changes in economy diffidently
effects the businesses, so it is necessary to study the impact of all policy's that is foreign trade
policy, tax policy, labour law, political stability, on work association and then adjustment of
managerial functions, marketing process according to it. for example in UK it is necessary (law)s
to label all the non-veg material, beef, meat according to freshness of it, freeze, fresh etc. Hilton
food group plc concerning all political issues, rules related to plastic use, laws related to quality
maintains such as packaging material stander, preservative use stander act etc.
Economical factors:
Second element of analyses is economical issues and changes, which directly effect the
work as well as profit level of organisation, these factors are economical growth of country,
exchange rates, interest rates, GST, etc. economical elements are further divided into macro and
micro economical factors, macro involves the higher level of factors that is government interest
rate, and government expenditure. Micro involve B2C income money of customer invested on
product, need of the product, population etc. Hilton food group plc is managing their economical
factors very, efficiently, .
Social factors:
Social factor is can be belief, reaction, feed bake of customers and population towards
the services, it can a ethical values, health consciousness, income, age distribution, prioritise of

customers . That is impotent to focus on these factors for the correct plaining of organisation as
Hilton food group plc is focused about the prioritise of customers, and requirement of customers
as well as the beliefs of consumer. At the starting of businesses it is essential to analyses all these
elements so that it can be helpful for the selection of ( product and services) by helping in
analyses of target customer, helps in designing businesses plain .
Technological factors:
This factor involves different variables related to the technology, these factors are new
developed techniques of product processing through different machinery, new techniques of
marketing, new techniques of product distribution, because new technology helps in reduction of
time consumption during product production, helps in utilisation of all material without any
waste, reduce the labour cost, helps in distribution of product in lass time due to the development
of new transportation technology, it important to analyses the new developing technology so
that it helps in the better outcome of goals. Hilton food group plc is using all new technology's
for their product processing, distribution and marketing.
Legal: It include different factors that depends on law and provisions that was formulate
and control by the government. It include employment law, consumer law, health& safety law,
and Labour law. On the basis of these law the Hilton Food group plc works in United Kingdom.
To avoid unfair behaviour and discrimination the business run as per the law as it become
beneficial to protect the interest of audience. It make negative impact if the organisation fails to
work according to the prevailing law because it attract fine, penalties, punishments that reduce
profitability because part of revenue is spent as a penalty or fines.
Environmental:Various factors like weather, population size, natural disaster, climate
change makes impact on the sales as well as on the revenue of organisation so to overcome from
these problems or challenges various smart strategies are prepare by company to make control
on unpredictable situation. Due to increase in size of population, sale of the organisation can
easily increase because so many people buy products that raise their margin of profit as well as it
affects in positive manner also (Stacey, 2016).
CONCLUSION
After doing thorough study it is to be conclude that is compulsory for the comp[any to
analyse different factors so that it become easy to marketers to take correct or appropriate

decision so that business survive in competitive world easily. In the report conclusion is to be
made that by using divisional structure Hilton food group plc easily perform their task. The
structure involve Hilton food group plc, Hilton food UK limited, Hilton food Ltd as it divide on
global location basis. By using Hierarchical method of governance in different department units
company works effectively with proper coordination and corporation. It become compulsory for
very company to consider PESTLE before taking entry into the market as it help in survival and
growth.

REFERENCES
Books and Journals
Beatty, J. F., Samuelson, S. S. and Abril, P., 2018. Business law and the legal environment.
Cengage Learning.
Begg, K., Van der Woerd, F. and Levy, D. eds., 2018. The business of climate change:
Corporate responses to Kyoto. Routledge.
Beynon-Davies, P., 2020. Business information systems. Red Globe Press.
Boone, L. E., Kurtz, D. L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Brown, R. A. ed., 2018. Chinese business enterprise in Asia (Vol. 7). Routledge.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Dana, L. P., 2018. African EntrepreneurshipChallenges and Opportunities for Doing Business.
Palgrave Macmillan.
Evans, J. R., 2017. Business analytics. Pearson.
Gilliland, M., Tashman, L. and Sglavo, U., 2016. Business forecasting: Practical problems and
solutions. John Wiley & Sons.
Skripak, S. J., 2016 Fundamentals of business. Virginia Tech.
Stacey, R. D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.