This report explores the impact of business environment on company performance. It discusses the structure, management, and governance of National Express Plc. It evaluates the importance of Pestle analysis and applies it to analyze the external environment of the company.
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Business Environment
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Executive Summary: In this following report is basically regarding with business environment, as the main study to gathered information about business environment where all factors are affect towards company business. For business organisation it is important about management towards future business perspective.The findings of this report is to scrutinising about overall information where it enhance external and internal factors matters like Pestle analysis as well as Board of Directors are matters to structure their business in effective manner.
Table of Contents Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 TASK 1............................................................................................................................................1 1. Describe about structure of the company and its management and how it governed.............1 2. Describe about organisational structure of choose company..................................................2 3. How many board of directors in National Express Plc?.........................................................2 4. Who is the Chair person and CEO of company?....................................................................3 5. When they have elected and appointed?.................................................................................3 TASK 2............................................................................................................................................4 6. Evaluate the importance of Pestle analysis about business organisation...............................4 Task 3...............................................................................................................................................5 7. Using of Pestle framework to analyse about external environment about your company influence about environment.......................................................................................................5 8. Apply Pestle factor which listed on chosen company. As per relevant practical examples to illustrate effective manner..........................................................................................................7 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Business environment is sum of collection where overall internal and external factors are mattersforsuchasmanpowers,customerneedsandexpectation,supplyanddemand, technological and having social trends through economic changes. These factors affect function about company and it creates work on directly or indirectly. As sum of these factor influences through companies about business organisation environment and situation (Borojo and Yushi, 2020). It helps to investigate about business opportunities, tapping resources which is assists in planning as well as improves overall performance, growth and profitability about business. Inthisreport,organisationisselectedNationalExpressPlcwhichisBritish multinationalpublictransportcompanyishavingheadquarteredinBirmingham,England (Calabrese, Caputo and Sarno., 2018). On the basis of report, topics are covering structure of company and its management which effectively governed. To highlight board of director as well as these executives and non-executives within director and elected and appointed. The objective of making this report is to gathering of information about business related information. MAIN BODY TASK 1. 1. Describe about structure of the company and its management and how it governed. Overview of company: National Express group is multinational public transport company where headquartered in Birmingham, England. The history for acquired national bus company where they decided to bring together as they schedule over coaching within companies in United Kingdom. As on prominent businessman name Sir Fredrick Woods was asked to overseas through creation about its unique business structure as the chairman from 1972 to 1978. The branded on National Express brand was first used in 1974 (Contractor and et. al., 2020). National Express was subject to having management buyout in March 1988. The management team is began to diversify and in 1989 to purchased Crosville Wales. A new management team is undertakes within company within July 1991. In the year of 1991 is purchased Speed link an operator about coach services between Gatwick and Heathrow Airports. 1
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2. Describe about organisational structure of choose company. Organisation Structure is a system that encompasses about some certain situation which directed in order to accomplish goals and objectives (Cyphert and et. al, 2019). These activities can involves rules, roles and responsibilities. It also determine about process of information sharing between level of company. An organisation is having structure on which chain of command, while decentralised structure to give almost employees within high level of personal agency. The structure of National Express Plc is commencing about highlights in hierarchy where different department enhance on working operation. Different departments are entitled for operation,humanresource,marketingandfinancedepartment(Hans.,2018).Allthese department is having their own roles and responsibilities that enhance with having relationship between employees and managers. 3. How many board of directors in National Express Plc? The company is having framework which it provides an overview about roles and responsibilities and reporting lines on Board of Director of National Expre are shown in given below: Shareholder: The owner oforganization and the members with whom Board is ultimately responsible. 2 Illustration1: Organisation structure of National Express Plc, 2021. Source: https://www.nationalexpressgroup.com/investors/understanding- national-express-group/our-business-model/what-we-do/
Chairman:This responsible for overall leadership and governance of the Board through ensuring that it operates effectively on productive challenge. Board Committee: In following committee under about delegated authority about board and within formal terms of references. This are some important key factor responsibilities involved. It hasNominations Committee: To Monitor the overall structure, size and composition about board and its having committee (Hrechyshkina and Samakhavets., 2019). It overseas succession planning about directors and senior management which leadssearchaswellasnominationonappointmentaboutnewdirectors.Audit Committee: To overseas and mapping and having some sort of recommendations within relation for maintaining financial accounting as well as reporting process towards financial statement (Khan, Çera and Nétek., 2019). It is having reviews about work and effectiveness that enhance external audit process. Safety andEnvironment Committee: The reviews and to monitors about strategies, polices and standard, initiatives, risk exposure, target and performance within group of relation to safety on environmental matters. 4. Who is the Chair person and CEO of company? The Chairperson is known asSir John Armittand Chief Executive officerIgancio Garat. 5. When they have elected and appointed? About the two main board of director in National Express Plc are: SirJohnArmitt:HewasappointedbyPhillipHammondandalsotoNational Infrastructure Commission in 2015. It becomes deputy Chairperson in 2017. 3
TASK 2. 6. Evaluate the importance of Pestle analysis about business organisation The term Pestle analysis is encompasses about information of external influences to scrutinize towards organisation. It is stand of Political, Economical, Social, Technological, Environmental and Legal. The dependingupon organisation the Pestle is utilise for mapping overall external factor to attain competitive advantages. As per business perspective there is analysing about understanding the importance of staying ahead towards curve, to understand about external factors in which it creates impact on business strategies development to handle thosechangesaswellscrutinizebusinessenvironmentpolitical,economical,socialand technological. All these six factors makes important role for creating business benefits by provide valuable information in terms of pros and cons are elaborated given below: Cost Effectiveness: This is only cost of Pestle analysis in time. It additional programs about helps to organise inputs and feedback analysis which will competed through simple document or pen and paper. This is refers as straightforward as the amount of research necessary as how much time is intake. Depth Understanding: The Pestle analysis about environment which is having directly to effecting business. For example: to make safety and consumer when it developing about prototype on product specification It is compared about its customer in highly populated areas. Through the product work as well as in current situation for success your product which encourages (Möller, Nenonen and Storbacka., 2020). Pestle analysis having perception different and influential which could affect on success about product introduction. Alertness development: The use of analyse firm board sense about it can also narrated down and used to specific products, marketing plans and having customer relationship. It is used for enhance new development within firm to raise awareness of potential threats. It is an existing competitors through upcoming about own product. It will increase 15% in population growth within in certain region or location. It is excellence about business. It increase about predominately senior citizen while having target market in 20-30 age with having range. Exploit Opportunities: As per opportunities are often way to external where it analysisto moving forward about new social media channel (Newman and et. al., 4
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2020).Thisisnowanopportunitytobuildmarketingcampaignbeforeabout competitor. This is outreach approach which gives to opportunity for user into customer before anyone else. Disadvantages Technology and society are evolving about rapid pace. Such changes have made difficult or management to anticipate through better development which can affect prospects organisation in long run perspective. Many researcher argued that simplicity of the model as it is simple about lists which is notsufficientandcomprehensivewhichsuggestedaboutpositiveoutcomeson organisational growth. The most significant disadvantages about model is that Pestle analysis to based on assessment on external environment. To assess about consider result obtained from this model to accomplish objectives. The competitors action and industry trends which is an organisation operating an important to consider. Task 3. 7. Using of Pestle framework to analyse about external environment about your company influence about environment. External Environment analysis is one of effective strategic tools as it is having process to identify about overall external and internal elements which can affect about organisation performance. The analysis enhance to assessing within level of threats of opportunities factor might present (Radović-Marković., Salamzadeh and Vujičić., 2019). These evaluation are relies on decision making process that helps to analysis business strategies for challenges and benefits. Business are greatly influenced about their environment as per factor which determine day to day circumstances impact firm. So business which is must constantly analyse trade to environment and the market. There are many strategies to analysis tool which firm use to having common objectives for attaining positive outcomes. There are six factors which describe about National Express plc context in United Kingdom Pestle assessment. Political:It is measure about those factor which government regulation factor are political stability appears. This factor can emphasis about business related environment 5
and trade market. It involves factors about political stability, tax guidelines, trade regulations and employment laws. It is an would include political policy and stability as well as trade fiscal and taxation polices too. In perspective of National Express Plc, there is political stability in which it creates more political factor as well as it allows to benefits in foreign exchange polices, change of government regulation in corporate governance. There is high Brexit market implication in which it not allows to presumes trade in European Union. Economic factor: These factor to having impact towards economy and its performance, this is runs directly impact on organisation and its is having profitability. To factors include interest rates, employment or unemployment rates, raw material and having involvement of cost exchange rates. Business analyse about this factor that based on environment that helps to step up strategies within line of changes. It represent about factors such as inflation, recession, credit accessibility and having unemployment rates to foreign exchange rates. Similarly within the context of National Express plc there is high economic benefit in terms of supply and demand in United Kingdom region. Social:According to this factor where every country which is having distinctive mindset where these attitudes there is having impact business. The social factor might ultimately affect on sales about product and services. There is changes of people behaviour and increased the rate of immigration. All these factor allows to enhance to mappingbehaviourand demographicfactor(Syazaliandet.al.,2019). Through constant changes in behaviour National Express plc can imples demographic model to scrutinise information in terms of age, gender, religion and other factor to sustain positive outcomes. Technology:As per these factor consider about rate of technological innovation and having development and could affect on specific market industry. It is often tendency about to focuses on development only on digital technology where it consideration for maintaining automation. In perspective of National Express Plc is having benefit about advanced technology that helps to increase efficiency in business through technology attachment. Environment: In this factor as it relate to influence about surrounding where the environment and having impact of ecological aspect with the rise of importance of 6
CSR . There is uncertainty of climatic changes which creates high deficiency of shortage about safety in specific region. Within the perspective of National Express plc, in United Kingdom there is strict rules against about environment laws. The company needs to focuses on their working development. Legal:An organisation is must understand about legal and allowed about territories in which they operate in effective manner. It is also aware about any changes within legislation as well as impact of business operation. Some factors which involves in employmentlegislation,consumerlaws,healthysafetyaswellasinternational regulation and restriction. As per National Express plc it is creates more influence about enhance legal perspective as well as rules and regulation. Evaluation: As per above Pestle analysis for National Express plc which summarised about overall external factor such as Technological factor allows more advancement in National express plc that creates benchmark. On the basis of technological factor to implies on digital technologies implement on company infrastructure for development aspect. In this overall structure, they positive pestle factor can be consider political, social, technologies and environment. These factor would helps to increase the good will of company within effective manner. Rest other factors are tend to bring more challenges that business can optimise effective manner. 8. Apply Pestle factor which listed on chosen company. As per relevant practical examples to illustrate effective manner. As per above Pestle analysis for National Express plc they mainly use Technological factor because they use Artificial intelligence trait of resources in which it creates about to enhance in transportation vehicles for making electric specification. Other Pestle Analysis is all about to rules and further instruction that relates to National Express Plc. Political factor is generally indicates about rules and regulation relates to business. Economic factor allows recession and inflation aspect For example: National Express plc is based on United Kingdom and their team are well known about influence Brexit Market that there is no scope to trade in European region.Social factor helps to explore about preference to overall society people. For example, National Express plc is generally opted demographic factor to select people for their product and services. 7
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Political factor: This factor is consists about the rules and regulation which related within corporate governance. For example: Brexit Market can creates implication to National Express Plc to not trade in European Union market. Economic factor:To describe about the recession and inflation factor impact on particular economic performance. Other like supply and demand type of aspect increase the company growth in competitive market. For example: National Express plc is having benefits when they procure effective supply and demand practise in retail business. Their profitability provides enough contribution towards United Kingdom Economy. Social Factor: This factor is emphasis about to consider demographic aspect in which company can attain their product to choose potential customer. For example: National Express plc can make strategy to approach customer on the basis of Age, Gender and religion. Technology factor: This factor consists is about advanced level of technologies that helps to increase the efficiency of staff within effective manner. For example: In UK there is high competency of resources factor which uses to increase entire company growth effective manner. Environment factor: As per this factor is consists to contribute in ethical activities that increase the chances of brand value in competitive marketplace. For example: National Express plc is having benefit by contribute to their effort into CSR activities for mapping positive good will in market. Legal:For example: There are many laws in employment legislation which can assort by National express Plc to implement for maintain employment laws for maintain adminstrative work structure in discipline manner. CONCLUSION From above report of business environment it mainly explain about to highlight overall organisation structure which emphasis about Board of Director, executive and non executive level. To evaluate this external environment it creates importance of business organisation as about the importance of Pestle analysis towards organisation is to help for scrutinize outside information as in terms of challenges and opportunities within effective manner. In perspective of pestle further, in National Express plc is emphasis about to define one of factor that can be suitable towards company. By considering technological factor which creates high factor to define resources that benchmark as well as to enhance more competitive advantages. The impact 8
ofexternalenvironmentiscausesbettermentthatprovidevaluableinformationtowards challenges and opportunities which company get to attain positive outcomes. 9
REFERENCES Books and Journals Borojo, D.G. and Yushi, J., 2020. The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries.Economic Research- Ekonomska Istraživanja.33(1). pp.26-45. Calabrese, M., Caputo, F. and Sarno, D., 2018. From mechanical to cognitive view: The changes ofdecisionmakinginbusinessenvironment.InSocialDynamicsinaSystems Perspective(pp. 223-240). Springer, Cham. Contractor and et. al., 2020. How do country regulations and business environment impact foreigndirectinvestment(FDI)inflows?.InternationalBusinessReview.29(2). p.101640. Cyphert and et. al, 2019. Communication activities in the 21st century business environment. Business and Professional Communication Quarterly.82(2). pp.169-201. Hans,V.B.,2018.Businessenvironment–conceptualframeworkandpolices.Internatioal Educational Scientific Reseach Journal.4(3). pp.67-74. Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in Belarus. Journal of Geography, Politics and Society.9(1). pp.1-11. Khan, K.A., Çera, G. and Nétek, V., 2019. Perception of the selected business environment aspects by service firms.Journal of Tourism and Services.10(19). pp.111-127. López-Rodríguez, C.E., Cristancho-Triana, G.J. and Amaya-Téllez, J.L., 2020. Perception and Desired Brand Personality in Organizations that Internationalize Services: The Case of the Colombian Business Environment.European Research Studies.23(3). pp.581-597. Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems? Making sense of the business environment.Industrial Marketing Management.90. pp.380-399. Newman and et. al., 2020. Corporate social responsibility in a competitive business environment. The Journal of Development Studies.56(8). pp.1455-1472. Radović-Marković, M., Salamzadeh, A. and Vujičić, S., 2019. Selection of organization models and creation of competences of the employed people for the sake of competitiveness growth in global business environment.International Review, (1-2), pp.64-71. 10
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Syazali and et. al., 2019. Retracted: Partial correlation analysis using multiple linear regression: Impact on business environment of digital marketing interest in the era of industrial revolution 4.0.Management Science Letters.9(11). pp.1875-1886. 11