Business Environment: Structure and Governance of Barratt Developments PLC

Business Environment
Company Name : Barratt Developments PLC
STUDENT NAME:
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Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
structure and governance of company.........................................................................................2
TASK 2............................................................................................................................................4
Importance of PESTLE analysis for Company...........................................................................4
TASK 3............................................................................................................................................6
PESTLE analysis of company.....................................................................................................6
Conclusion.......................................................................................................................................9
References........................................................................................................................................1
Books & Journals.............................................................................................................................1

Executive summary
Situation analysis can be defined as a methods that a company utilises in order to analyse both
internal along with the external environment for enhancing the firm's capabilities, customers
base, and so on. This report is referring to how business environment impacts upon a firm's
business strategies to gain competitive advantages. Also, structure along with the governance of
the Barratt Developments PLC is operating all the networks i.e. spread among 30 divisions as
well. Situational analysis is used by companies to examine the external environment of business.
There are many different factors which are part of this macro-environment, and they affect
decision making in the company. There are many alternatives available with every company, and
they have to choose one among them. It is essential that they analyse such options based on their
merits and demerits and then on basis of that a particular option is selected. In case of Barratt
Developments PLC also PESTLE analysis is done, and different aspects are analysed based on
the decision making. According to changing circumstances, the way the PESTLE factors affect
business also varies; for Barratt Developments PLC it is important to consider these factors
before making any decisions in the company. This analysis of macro-environmental factors will
play a significant role in providing the company with a competitive advantage in the market. On
the other side, the limitation of this report is that number of factors like political, legal and more
continuously changes, which impacts upon overall working of the operations of Barratt
Developments PLC and this is what not has been analysed in an appropriate sense, where change
is occurring regularly.

INTRODUCTION
The business environment includes all those factors which are present in external environment of
business, and they affect all internal functions of a business. This is a type of situational analysis
done by companies to form various strategies for company. This report is based on structure &
governance of companies, importance of PESTLE analysis and finally a macro analysis is done
of macro or external factors which can influence company. In this report Barratt Developments
PLC has been taken into consideration (Virglerová, Dobeš, and Vojtovič, 2016). It is one of the
biggest residential companies in UK, and they have an operating network which is spread over
30 divisions. It was established in 1958 by Greensitt Bros.
TASK 1
Structure and Governance of the Company
Structure and governance are the two most important components of every company. In the case
of Barratt developments PLC board of company has a policy that they regularly believe in
reviewing composition of company. Apart from this, annual evaluation is also done to check
effectiveness of committees formed in company and also of different types of directors of
company. If it is talked about the organisational structure of this firm, then it follows hierarchical
structure and consists with three layers and these are : Board of directors, Executive Committee
and Regional managing directors.
Structure of Barratt Developments PLC: Barratt developments plc is a UK based company. This
company is having an operating network which is spread over 30 divisions. There are approx.
Six thousand three hundred thirty employees working here. It is listed on the New York stock
exchange. They manage properties and real estate business. Jeremy Hipkiss is Director in this
company. David Thomas is executive director and John Allan as non- executive chairman of this
company. Sharon Michelle white has been appointed as Independent Non – Executive director of
company. Executive directors of this company manage day to day business (Sodeyfi, 2016).
Non-executive directors help the company in ensuring scrutiny, dealing with challenges, and
providing support to various proposals that are related to performance, accountability, strategy,
performance, and sustainability. All these are related to interest of stakeholders of company.