Understanding the Business Environment of Barratt Development PLC

This document provides an analysis of the business environment of Barratt Development PLC, a residential property development company in the UK. It discusses the company's governance and structure, the importance of PESTLE analysis in decision-making, and provides a detailed PESTLE analysis of the company. The document also highlights the impact of political, economic, social, technological, legal, and environmental factors on the company's operations.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
BARRATT DEVELOPMENT PLC GOVERNED AND STRUCTURED...........................3
TASK 2............................................................................................................................................5
IMPORTANCE OF PESTAL IN A COMPANY..................................................................5
TASK 3............................................................................................................................................7
PESTLE ANALYSIS.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The internal and external factors and forces which affect a company is known as business
environment. The understanding these factors is very important for the company because if they
do not understand these factors then it will lead to the company not being able to run efficiently
and make profit in the market. Analysis of these factors can lead to decision-making in the
company which is really important for the company because the company wants to grow and for
grow a company needs to come up with decisions so that the company will have strategies and
methods to make the company run.
Barratt development PLC is known for developing a property as residential property and
selling them to the owners. This company is located in United Kingdom and is the company is
operating from 30 divisions of network. The company was founded in 1958 and was under the
control of Greensitt Bros and later the company was taken over by Sir Lawrie Barratt. This
company has been listed on the London Stock Exchange since 1968 which is a huge thing for the
company because in today's world this is a very profitable business since it gives the customers
an asset of their own.
MAIN BODY
TASK 1
BARRATT DEVELOPMENT PLC GOVERNED AND STRUCTURED
The company was started by Lewis Greensitt and Lawrie Barratt and in 1968 the
company started floating in the London Stock Exchange. Lewis left the company after the five-
year expansion period and Lawrie changed the companies name to Barratt Development PLC. In
1997 even Barratt took retirement for good and in 2012 during the month of December he
decided to be the president of the company till his death. The year 1990s and early 2000s the
rates of the houses boomed and the company picked up in the market really quickly and rapidly.
In 2016 the company announced its plan for expansion which had 1,400 new construction of
houses in Scotland. Later in 2017 the company achieved a five star rating consecutively for 8
years and had more unveiled plans for expansion (Otache and Mahmood, 2015).
Organizational Structure
The company has corporate governance in the organizational structure of the company.
There is a set of rules and law of the businesses which are operated and controlled or regulated.

Corporate structure focuses on the internal and external factors of the company which will affect
the stakeholders and the stockholders which are included and will get affected are customers,
shareholders, suppliers, management and the government regulations. The board of directors of
the company play an important role because they decide the framework of the company so that
the company can work with the corporate governance which will make the company work with
objectives they need to fulfill of the company (Huang-Horowitz, 2015). There are few principles
that the company needs to follow which are as follows.
 There are part of rights which are given to all the board members of the company, and
they must know how to use those or exercise them in the company. All the shareholders
must be treated fair and equally.
 There must be transparency between all the stakeholders so that they make the decisions
of the company properly.
 The board members have a code of conduct and the new individuals which are added in
these executives and board members must meet those standards so that they all are on the
same level which will make the company work better.
 The board members of the company must have the skills to analysis and review the
practices of the management team of the company.
It is very difficult for the board members to work in this kind of organizational structure
because there are a lot of conflicts which can rise between the members and that will result in no
good for the business. There are a lot of difference between the members think in an organization
and there thinking will differ, but they will have to make the company work as one otherwise the
company will not be able to do good in the present and not even in the future. All the board
members of the company will have a different take on different situation in the company and that
is not good for the board members because they will have to make a common decision and then
will demotivate the other members if their decision is not supported. To have a single decision-
making in the company the board members will have to be on the same level and understanding
of the organization so everyone should be aware of the company's growing and falling in the
market. The strategies which are not making a difference in the company should be removed and
new strategies should be added so that the company can make an advantage in the market
(Otache and Mahmood, 2015). The company is providing with good quality of land and
properties which will make the company grow faster and also there is a high demand in the

market for this kind of organization. The board members of this organization are having
difficulty to make decisions because they are being one while taking decisions for the
organization and that is very important for the company to grow in the market. There are no
promotions which are being lead out by the company in the present because they are focusing on
improving the company more, and they have a lot of assignments which the company is focusing
on in the present.
The board members of Barratt Development PLC are-
 John Allan- Chairman
 David Thomas- Group Chief Executive
 Steven Boyes- Chief Operating Officer & Deputy Chief Executive
 Jessica White- Chief Financial Officer
 Richard Akers- Senior Independent Director
 Nina Bibby- Non- Executive Director
 Jock Lennox- Non-Executive Director
 Sharon White- Non-Executive Director
 Tina Bains- Group Company Secretary
TASK 2
IMPORTANCE OF PESTAL IN A COMPANY
It is very important for all the company's to take out the PESTLE of there company
because that will make the company make a lot of profit overall in the market. PESTLE stands
for political, economic, social, legal, technological and environmental (Groşanu and et.al., 2015).
The understanding of all these factors is very important in the company and the companies who
take this out are going to be very successful. There are a lot of advantages of this approach and
the analysis of this method will lead to effective decision-making. There are a lot of advantages
of this factor which will be discussed in the further report.
Cost effective
The company will come to know by the analysis of this factor that how much they are
supposed to invest in which department so that they can grow faster and the company can do
well. Money flow is free in the company but have a cost effective work done in the company is
always better because they will not have to invest in departments which are unnecessary in the

market. The team will be able to get out better management of the company and efficiency in the
company.
Better understanding
The management, board members and the employees of the organization will have better
understand of the company if the PESTLE analysis is done properly (Saleem, 2017). There are a
lot of factors which are supposed to be kept in mind of the people when it comes to running a
business and that is a very important factor for the business. For example there are laws which go
unnoticed when a innovation is being done in the company and that might not be good for the
consumers and that will affect the business majorly.
Alertness in the development
The company will know better if there are competitions which are coming in the field of
the business and that will make the company work better so that they will not have troubles later
(Levi-Jakšić, Jovanović and Petković, 2015). The marketing plan is a major point for Barratt
Development PLC company because they need to sell there properties to the customers who need
them and a market plan is required for that and a market plan can only be possible when the
company comes up with an analysis of the PESTLE factor.
Accomplishing opportunities
There are a lot of risks and paths which are yet to be explored by the company which can
turn out to be a great opportunity for the company and the risk has not been taken because the
company has not taken out the analysis before which made the company take risks before
(Prajogo, 2016). There are lot of competitors coming up and the company will have to take risks
so that the company can grow more and not let the competitor come over them. Marketing
strategies which are coming out and the company must try them all so that the company can
make profit and if they do not get the changes which is expected from the customers then the
company will not be able to sells there properties to the customers. The company will have to get
flexible to get in the changes and also risk the opportunities which are coming in the way of the
company.

TASK 3
PESTLE ANALYSIS
There are a lot of factors which are influencing the company from working in the
marketing and the analysis of these factors is a must for the company because that will help them
to understand the external and internal factors of the company. The PESTLE stands for political,
social, economic, technological, legal and environmental and these are the major factors which
play a great role in any kind of company (Deasy and et.al., 2016).
Political Factors
The political factors of Barratt developments PLC affects the profitability of the company
very much. The changes in the political factors are because of the change in the political leaders
and that can be positive and negative so the company must be prepared for the worst and the best
and Barratt has made his company very flexible with this concern therefore it is doing very good
in the market. There is a stability in the political level in the country from the past few years
therefore the company is having a stable environment too (Sodeyfi, 2016). There is high taxation
in the country which is not letting the company get it's maximize profit. The wages which are
being paid to the employees of the company are very low which would increase later but right
now the company is making a good profit because of this political factor. The political factors of
the country is total in factor of the company to expand itself but later all this can be at risk
therefore the company is doing everything right now before the political parties change again.
Economic Factors
The rate of the growth of the GDP in the country will decided how fast the company will
grow in the country or is expected to grow in the near future. There is a lot of unemployment in
the country which means that the company will be able to hire people at a low wage and that will
make the company make a profit in the market of selling properties. There is a high internet rate
in the country and there are people who willing want to borrow and invest in properties which is
making the company grow right now and if these rates fall then the company will not be able to
sell their properties and the company will have a loss (Abdullahi and Zainol, 2016). The
company is also having international trades with other countries and the stability of the currency
also plays a very important role. There is an unstable currency in the country then the
international investors will not be investing more. There is an efficiency which can be seen in the

financial market operation but that will also impact the Barratt Developments PLC because it is
on the company how they rise the fair prices of the properties they are selling.
Social Factors
The demographic locations of the social plays a very important role in this company
because they target the community which has a large population of men because it is mostly men
who willing want to invest in the land property and the women are always least interested in this
kind of market (Cepel and et.al., 2018). The difference like this is made only on gender and age
because that will make the company make a profit otherwise the company targets for all the other
aspects like religion, caste, race, etc. Barratt Developments PLC company does a target the class
distribution because the company will not be able to sell there premium properties to the lower
class people.
Technological Factors
There are a lot of technological development in the market which is letting a lot of
competitors in the market. The company will have to promote themselves and make the most
from that otherwise they will not be able to sell there properties to the customers. Promotion
wise technology has played a great role there are a lot of people who have invested in the
technological factor so that they can promote there properties online so that they can have more
customers. The feeding of data will also get easier for the Barratt Developments PLC company
because technology will make there work more efficient and the company will be able to
complete there target on time and will be able to make a lot of profit in the present time (Chekh
and Vinnyk, 2017). There is a lack in investment that the company has made in the company.
Legal Factors
There is a lot of legal work which has to be done when there is a property involved in the
company and the company is only dealing with these aspects therefore the company will have to
make a lot of legal factors right otherwise not just the company will be in trouble but all the other
customers will also be in trouble because of the company (Kolk, 2016). The company will not
have a good brand name in the market if the customers are having a trouble dealing with the
company. Discrimination is not allowed in the company and the company will not be accepted if
they are discriminating there customers in the market because that is a legal offense.
Environmental Factors

The weather also plays an important role in the company's growth because they the
construction has to stop or pause till the weather is not clear if it is raining or snowing. The
global warming which is taking place in the world is not supporting the company at all because
people not preferring to go out to see the properties, and they are ready to invest in these assets in
the present. Company must take steps to reduce impacts on the environment from there company
because that is also leading to a lot of problems in the environment (Moroni, Arruda and Araujo,
2015).
CONCLUSION
The company is doing fantastic in this field and can expand itself in a lot of places and
international customers can also increase if the company invests in the technology department
and makes its promotion strategies even better. Barratt Developments PLC is a very good
company and is stable because of the political factors of the company and the company will be
able to get more customers because people are ready to invest in assets and that will be a great
advantage for the company if they target the right people.

REFERENCES
Books and Journals
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Chekh, N. and Vinnyk, I., 2017. Regulatory environment of business activities in
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pp.124-129.
Deasy, S and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
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and entrepreneurship: A global perspective. Amfiteatru Economic Journal. 17(38).
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Huang-Horowitz, N.C., 2015. Public relations in the small business environment: Creating
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Saleem, M.A., 2017. The impact of socio-economic factors on small business
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