Importance of PESTLE Analysis for Business Organizations

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1- Governance and structure of Pearson PLC.....................................................................3
Task 2- Importance of PESTLE analysis for business organizations..........................................4
Task 3- PESTLE framework in order to analyse the external environment of Pearson PLC......5
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment suggests external factors, forces and establishments that are on the
far side the control of the business, and they affect the operation of the business enterprise. It
includes competitors, suppliers, customers, government and the factors related to social, political,
environmental, technological, etc. Generally the business environment has been classified into
two categories i.e. internal and external (Belas, 2019). With the help of analysis of effective
business environment internally as well as externally, organization is able to identify its
opportunities and threats, helpful in assembling resources, assist in planning and policy making,
etc.
Pearson PLC is a multinational education and publishing company having their
headquarter in London. It is the largest education company and book publisher as well. Company
owns the GCSE examination board for the UK (Hamilton, 2018).
This report will consist of the governance and structure of Pearson PLC company along
with the importance of PESTLE analysis in context of company. Apart from this, the study will
also highlight the factors influencing the external factors which affect the Pearson PLC
organization effectively.
MAIN BODY
Task 1- Governance and structure of Pearson PLC
Pearson PLC is a British company handles the education and publishing work since 1920.
The company is the largest book publisher and education company in the world. The company
was founded by Mr Samuel Pearson in Yorkshire. The company has its monopoly within the
market place. The company provides content in diversified channels like online books and
services. Organization has its presence over 70 countries all over the world and having more than
22,500 employees as of now. Pearson PLC announces adoption of new structural changes along
with the appointment of new leadership team. Under the new structure- company would organize
around three global lines i.e. professional, higher education and school. Divide their structure
according to three geographic market categories i.e. core, North America and growth. The board
of directors of Pearson PLC includes Sidney Taurel as chairman appointed on 1 January 2016,
Andy Bird is the CEO of the company appointed on 1 May 2020, Dame Elizabeth Corley
appointed on 1 May 2014, Sherry Coutu appointed on 1 May 2019, Linda Lorimer appointed

on 1 July 2013, Michael Lynton appointed on 1 February 2018, Graeme Pitkethly appointed
on 1 May 2019, Tim Score appointed on 1 January 2015 and Lincoln Wallen appointed on 1
January 2016 as non-executive directors. Organization describes that board of directors and
executive leadership bring effective, strong and diverse leadership to various aspect of the
business (Kotaskova, 2019). The leaders are highly committed towards creating long-term
sustainable value for all shareholders, stakeholders which also gives advantages to the society
and world as well. With the effective direction of board of leaders, the company employees is
full of ideas and innovative ways to help millions of person by providing effective learning
content to them.
Task 2- Importance of PESTLE analysis for business organizations
Pestle is an administration model that is used to analyse the external environmental
factors which affects the working of project within the organization, the brand image or value
and the overall functioning of the business externally. Although such kind of factors which affect
the company is not in the control of the organization that is the reason they are known as external
factors. Pestle stands for political, legal, social, economical, environmental and technological
factors. It is basically a tool in order to evaluate the market surroundings or simply just for
following the geographical area situations effectively (Dvoroková, 2017). Though these factors
are not in control but does influence decision-making behaviour of the organization. The external
threats that any establishment potentially faces has been analysed with the usage of this tool.
Pestle analysis plays a significant role in the growth of the businesses. It is helpful in
various ways whether it is an expansion of existing business activities or product line or opening
a new company at new location. It is the key in marketing strategies and planning. With the help
of following points the importance of Pestle analysis has been illustrated:
1. PESTLE analysis can help every business owner in order to identify momentous changes
in terms of political, economical, social, environmental, etc. at the time of start up or
establishing new organization.
2. It helps the companies in order to make effective strategies which helps while planning to
expand their business nationally as well as globally (Oliver, 2018).
3. Internal environment can be handled by the leaders and managers of the company
efficiently but the external factors are not at all in control of company so in order to