Austin Fraser Marketing Strategy Analysis

The assignment analyzes the internal and external factors affecting Austin Fraser's business environment, including economic, social, technological, legal, and environmental aspects. Using PESTLE and SWOT analysis, it identifies the company's strengths, weaknesses, opportunities, and threats, providing a comprehensive understanding of its marketing strategy.

Business Environment

INRODUCTION
Business environment plays an important role in every organisation. It is the huge
responsibility of a manger to make different organisational strategies and plans to consider
various environmental factors. No enterprise can survive in competitive market place without
cooperating with its business environment. Basically it consist of some internal and external
factors of company which can influence its performance (Boons and Lüdeke-Freund, 2013). So
before making any organisational policy, business manger should keep in mind all micro and
macro environmental factors. It involves many components such as customers, suppliers,
government policies, technical sectors, social and cultural trends. In simple words, organisation
that makes its decisions according to its internal and external environment can achieve immense
success. This project report is based on ''Austin Fraser'' which is established in United Kingdom
and specialised in providing recruitment/staffing services. In this report, various types of
enterprises and their purposes has been explained along with their, size and scope. Also,
relationship betwixt organisational functions and objectives has been evaluated. Business
environment can have positive as well as negative impact on organisational performance.
Different environmental factors also helps in determining strengths and weaknesses of company
(Chang, Hughes and Hotho, 2011). So huge relevance betwixt organisational
strengths/weaknesses and macro environmental factors has been evaluated.
TASK 1
P1 Types and purposes of different organisation
Organisation refer as a place where many people come together to accomplish common
goals ad objectives. In simple words, company is a group of individuals that is organized and
maintained to achieve some collective goals. All enterprise are managed by their management
system which helps in determining relationship betwixt organisational activities and their staff
members. Medium and large corporations are a type of system which affects and get affected by
its business environment. By engaging in enterprise, managers can accomplish different goals
and objectives of organisation through providing high qualified products and services to their
customers. Basically company is categorised in three parts which are following as under:
Public sector: This kind of organisation plays an important role in national economy. It provides
various government services to citizens. It involves various services such as public
1

transportation, education, heath care, military, police and so on. Company which comes in this
category is owned by government. NHS England is an administrator non departmental Public
authority. With the help of establishing government company development of society can be
increased. The main function of this kind of firm is that protect and promote different interests
of customers. Moreover, it is an essential part of UK economy.
Governmental organisations: This type of organisation is established to make rules and
regulations so that other organisation do not operate any u8nfair or illegal activity. It conducts
various programs to enhance social welfare. Also, it gives core attention to those people who
comes below poverty line.
Public organisations are established for various purposes which are following as under:
 Provides basic requirements to poor people.
 Gives high qualified products and services at affordable prices.
 It apply various legal strategies and polices so that rights of poorer section can be saved.
Hence, these are some main purposes of establishing public sector organisation. Generally these
companies are organised and managed at three levels which are discussed below:
Central government: It is known as most important characteristic of unitary state. Its
functioning is just like federal government which have various powers at different authorised
level. It delegates some of its power at regional and local level of country.
State government: It is also known as provisional government of a nation. It can be refer
as country subdivision which is called as states.
Local government: It is known as part of Public administration. It achieve its powers by
higher level of government.
The legal structure of public organisation is following as under:
 It achieve its working capital by central government because they have the only right to
make national currency.
 Public sector needs to get registered by national government.
 It involves various rules and regulations which are essential for better performance of
public organisation.
Private sector: Companies which comes in this category is known as privately held firm. It is
also called as citizen sector, as it provides high qualified goods and services to customers and
also introduce and innovate new products so that needs of clients can be fulfilled. Austin Fraser
2

is a well known private company. This kind of organisation are established for various purposes
which are following as under:
 For generating higher financial profit.
 Providing high qualified products and services to consumers.
 For giving better customer sanctification.
 The main purpose of this kind of organisation is to identify current and future trends of
market and produce goods and services according to market demand.
Legal structure of Private sector is follows as under:
Sole Trader: In this type of organisation, one have the full control on all business
activities and functions. This type of companies do not requires huge funds. Biggest advantage of
having this type of organisation is that single owner does not have to take permissions form
others to make any important decision regarding his business.
Partnership: In this, two people work in as partners to enhance financial profit of
organisation. The biggest advantage of having this type of organisation is that, in this business
loss is divided equally among all partners. But biggest problem with partnership firm is that one
single partner can not take any important decisions regarding business enterprise, he have to take
permission from others as well.
Private limited liability companies: It involves those private small business companies
which are limited by their share or company which have 50 or less than 50 shareholders. Shares
of this type of organisation can not be traded from public companies.
Public liability companies: It is that legal destination of limited liability enterprise
which offers its shares to normal citizens or general public.
Franchising: In this, company gives some of its power to franchisers so that they can
enhance profit of organisation.
Voluntary sector: It can be called as community sector or non profitable company which is
established to provide products and services to weaker sections, so that they can increase their
standard of living. Elizabeth Finn Care is an voluntary company which is a charitable trust. And
provides financial assistance to needy people.
Charity organisations: It involves those non profitable organisations which collects
charity or funds from big celebrities and entrepreneurs, and then utilise them in those activities
which helps poor and disabled people.
3

Purpose of establishing this kind of company are following as under:
 It provides various services to poor people at free of cost.
 It engages people in different improvement and development programs of training.
Furthermore, these are some important purposes of Voluntary sector which involves charitable
trusts, old age homes for privileged senior citizens and so on.
Hence, these are some different types of organisation and their purposes. By
investigating various kinds of companies Austin Fraser can compete them in competitive market
place.
P2 Size and scope of different organisation
Company can be refer as social unit people which is established to meet some collective
goals. All enterprises have their own size and scope, which makes them different form other
organisation. Different firms have their various rules, regulations, strategies, policies, and plans
which help in accomplishing their organisational goals and objectives. Business organisation
helps in enhancing growth of products, effective utilisation of resources and in technological
improvements. On the basis of many types there are three organisations which are following as
under:
Private sector: This is known as privately held organisation. Which plays an important
role in UK economy. In simple words it helps in development of national economy. As it
provides high qualified goods and services to satisfy particular need and demand customer, along
with this it also increase employment services for people so that they can improve their standard
of living. Private sector can be classified into three parts which are following as under:
 Sole proprietorship: In this, only one person is responsible for all business activities and
practices. Single owner mostly employ employees on fix wages but he have to acquire
finance for operating organisational functions. In simple words, he have the responsibility
to bear all risk of his company.
 Partnership: To solve all problems of sole proprietorship, people form partnership. In this
chances of organisational risk divided in to business partners. Also, total financial profit
is divided into all partners. In simple words, partnership can be define as a association of
two or more individuals.
4

 Franchising: With the help of this organisation can enhance their growth in market place.
Basically, it involves franchisor who sells his business to a franchisee in exchange of
financial profit.
These are main forms of private sector. Austin Fraser is also a privately held
organisation. Its size can be determined by its strengths of employees, which is approx 4000to
6000 and its annual turnover is around 100 to 600$. This is a well growing company as it provide
best services in recruitment and staffing. This organisation wants to expand its business in all
over the world so that it can achieve immense success.
Public sector: This type of organisations is owned by legal authorities. The main of
Public company is to provide better services to develop social welfare. This kind of firm makes
various rules, regulations, strategies and policies so that interest of poor people can be promoted
and protected. It makes various taxation policy to collect funds and then used those funds to
improve lives of citizens. NHS England is an non profitable company which have around 6,500
employees in all over the England. Its annual turnover is between 80 to 200$. It provides various
health care services to poor people so that they can live long. The main purpose of this
organisation is to protect and promote social welfare. In simple words, this company can provide
various benefits to normal individuals through giving them high qualified goods and services at
free of cost.
Voluntary sector: It is also known as community sector which is refer as non-profitable
organisations. This kind of company have responsibility to perform social activities. It is owned
by neither government nor single person. Elizabeth Finn Care is one of the leading voluntary
company which provides financial services to poor people. It have strength of 2000 people and it
helps those individuals who comes under poverty line. In simple words it helps in facing
difficulty of finance. This company does not generate any profit, in fact its gets funds as charity
which it use for social welfare.
Hence, these are the main types of organisation and they all have different sizes and
scope in competitive market place. Generally, Success and failure of company lies upon its size
and scope. With the help of them performance and growth of business enterprise can be
identified.
5

TASK 2
P3 Relationship between organisational functions and their relevance to organisational objectives
Every business organisation is established to accomplish some objectives by operating
some functions. Without performing organisational activities and practices no company can
achieve its desired goals and objectives. Austin Fraser is a multinational firm which provides
recruitment and staffing services in all over the world. It satisfy its customer by giving them high
qualified services. In simple words, it is an well growing company because of its excellent goods
and services (Demil and Lecocq, 2010). This firm is very much expert in attracting potential
customers due to its promotional and advertisement activities. The main objectives of Austin
Fraser are following as under:
 Profitability: The main objective of every organisation is to enhance its financial profit
so that it can exist in market place and also can compete its various competitors. Austin
Fraser can increase its profit through focusing on monitoring production and operation
cost.
 Productivity: Through attracting and providing better customer satisfaction company
can enhance its productivity. Along with this, by giving employee training, maintaining
equipments and purchasing new machineries Austin Fraser can increase its productivity
(Dong, Wu and Hou, 2009).
 Customer service: In recent time, business organisation are becoming customer oriented.
Continuous changes in customer needs also affecting performance of organisation. So to
exist in market it is very much necessary for Austin Fraser to provide better satisfaction
to its clients.
 Employee retention: Without qualified staff members no company can exist in market
place. Austin Fraser is well known organisation because it gives high importance to its
employee retention.
 Core values: It is known as mission of company. Generally, it is total of beliefs which
are mainly related to customer interaction and employee satisfaction. The main core
value of Austin Fraser is to make positive organisational culture.
 Growth: Through using well designed strategies, policies and plans a company can
enhance its growth and development. So it is the core objective of Austin Fraser to make
6

effective and systematic plans so that it can grow its business in competitive market place
(Edquist, 2010).
 Maintain financing: Every company needs appropriate amount of finance so that it can
operate different activities and practices of business. If organisation have enough capital
than it can make long term projects. So it is one of most important objective of Austin
Fraser to acquire enough level of finance.
 Change management: It is the most important part of business organisation. In simple
words, company have to make their decision according to environmental changes,
because no enterprise can survive n market place without cooperating with environmental
factors. Through change management Austin Fraser can enhance its growth and also can
create effective procedures to accomplish organisational goals and objectives (Grimpe
and Kaiser, 2010).
 Marketing: It is not just advertisement and promotion, it helps in identifying buying
trends of customers and product distribution needs. Through this Austin Fraser can attract
and satisfy more customers.
 Competitive analysis: This is the main objective of business organisation. It is very
much important for Austin Fraser to evaluate position of its competitors and also their
strategies, so that it can make better policies and strategies so that it can compete its
contenders in marketplace.
Hence, these are some objectives for Austin Fraser for which its is established. There is a
huge relationship between organisational objectives and function, which is explained below:
Finance: If a company wants to operate its different activities and practices than it needs
appropriate amount of finance, because without this no organisation can accomplish its goals and
objectives. Main function of finance department is to maintain all financial statement of firm so
that managers can estimate current and future cost, which helps in making better business plan.
Effective functioning of finance section can help Austin Fraser to enhance its financial profit.
Sales and marketing: With the help of sales and marketing department company can
promote and advertise its different products and services in an effective and systematic way.
Through making various merchandising strategies Austin Fraser can make good image in market
place and and also can attract more customers (Helms and Nixon, 2010).
7

Research and development: For identifying different trends of market, company needs
to conduct market research. Through this, Austin Fraser can discover needs, demands and
preferences of customer and than can produce most qualified products and services so that it can
gratify its clients.
Management system: A company can run its different function in an effective manner if
it have appropriate management system. This is the main department because it control all
sections of Austin Fraser. Without this, this company can not achieve its desired results (Raza
and Hanif, 2013).
Production: It can be defined as a process of converting inputs into outputs. Through
this organisation produce carious products and services to satisfy customer needs. By providing
effective services Austin Fraser can make higher financial profit.
Hence, these are some important functions of organisation which plays an essential role
in accomplishing business goals and objectives. In simple words, it can be said that there is a
huge relationship between organisational functions and objectives. If Austin Fraser will operate
its various activities practices in an effective way than it can accomplish its desired goals (Hoang
and Rothaermel, 2010).
TASK 3
P4 Positive and negative impacts the macro environment
Working environment of any organisation is affected by several factors. Due to, it is very
important to effectively analyse and evaluate them in appropriate manner with the helps of
suitable methods and tools. Working surrounding of any company is mainly divided into two
parts such as internal and external. Success of business firm is depended upon different
important factors. Therefore, required environmental factors are divided into two parts, it
includes all over causes miner or major. These all will be explained under following:
 Macro environment
 Micro environment
In the business firm, having various factors with the help of effective methods and
techniques in entire organization, so PESTEL can be used by enterprise. Basically, PESTEL is
an appropriate method, it includes major factors such as political, economical, social,
8

technological, environmental and legal. Sometimes, all these causes are impacting on business's
working systems whether negative and positive in nature (Jung, Kim and An, 2011).
 Political: Political is one of the major element of PESTEL method. It includes
governmental rules and regulations. In the context of positive advantage, sometimes this
element provides better opportunities for enchaining organization in appropriate manner.
For managing and controlling all over activities and operations of business firm.
Government of the country enacted some major rules and legislation, these have to be
followed by all over persons in enterprise. Such as, according the legal Acts should be set
minimum wage rate and without discrimination environment. With the help of this,
employees of the firm effectively and confidentially perform their decided task as well as
will be achieve. Along with this, sometimes employers of the firms are developed
discrimination and bias nature in working system among employees as per age, gender,
color, background etc. This type of surrounding negatively influence on motivation and
confidence level of workers.
 Economical: Business firms are affected by national and international economical issues
and conditions. Basically, it includes fiscal policy, exchange rate, currency fluctuation,
market share, market condition etc., these elements are sometimes positively impacting
on organization also negatively impacting on business (Kolios and Read, 2013).
 Social: It includes, culture, social ethics, norms, friends, colleagues etc. all these
elements and things are directly impacting on business firm whether negative and
positive in nature. Because a person's behavior, working system, attitude are depends
upon society. Due to this, it is required to properly evaluate them in significant manner.
 Technological: In the working environment of firm smart and innovative technologies
should be used. With the help of them easily and significantly achieve organizational
goals and objectives. Apart from this, when companies regularly use new techniques in
working systems, by employees not that much easy to understand their features as well as
may be they face some problems during operating them.
 Legal: This element is mainly depends upon external environment of organization, which
affecting on business firm. It involves discrimination law, copyrights, health and safety,
employment law etc. all these things are helps to provide healthy working environment
9

for employees in organization but sometimes these create some restrictions for workers
(Kuratko, Hornsby and Covin, 2014).
TASK 4
P5 SWOT analysis of Austin Fraser
Organisations can accomplish their goals and objectives if it makes its decisions
according to its business environment. It is very much essential for company to work according
to different environmental factors, because they highly influence growth and development of
firm. Austin Fraser is a small multinational organisation which provides recruiting and staffing
services to large corporations. This enterprise have various branches in all over the world. This
company can achieve immense success if it make its strategies to consider its internal and
external organisational factors. It can evaluate its micro environmental elements by taking help
of SWOT analysi s(Lovejoy and Saxton, 2012).
Strengths:
 This is well growing company because it provides high qualified recruitment services to
other large corporations.
 It provides deliver its services at actual time.
 It compete its various competitors by using well planned strategies and policies.
 As it is a recruitment consultancy, so it hires most talented staff members by using its
own services.
Weaknesses:
 As it is a small organisation so that it have less number of employees which affects its
performance in market place because other companies have great strengths of workers.
 It is also face various problems at the time of funding capital for operating its daily
business activities and practices.
 The biggest disadvantage of Austin Fraser is that it have lack of communication at its
work place.
 It also have less number of skilled staff members which is very much essential for
competing its contenders (Miller, Yablonovitch and Kurtz, 2012).
Opportunities:
10

 Austin Fraser can enhance its growth by expanding more in different countries.
 This organisation can enhance its performance by taking technological support.
 Through evaluating competitors strategies, this firm can make more effective strategies
as compare to its contenders by which it can increase its market share.
 By considering various aspects of business environment this organisation can survive in
marketplace for long time.
Threats:
 Continuously changes in business environment affects a lot organisational growth and
performance.
 Emergence of new recruitment agency can also bring substitute services which results in
low profitability of Austin Fraser.
Hence, these are some internal factors of organisation through which organisation can
determine its actual position and also can make effective decisions accordingly. Through using
SWOT matrix Austin Fraser can identify its various hidden problems and obstacles. Along with
this, it can also make effective strategies to overcome those problems (Milner and Tingley,
2011).
P6 Interrelation between internal and external factors
There is a huge relationship internal and external factors of organisation. Company can
determine its micro environmental elements by using Swot analysis and macro environmental
factors can be determine by PESTLE analysis. Interrelation betwixt internal and external
components are following as under:
Political factors: It involves various rules, regulation and policies which impact on
organisational performance (Molly, Laveren and Deloof, 2010). Through considering these
aspects mangers of Austin Fraser can make effective and systematic marketing plan. With the
help of this, organisation can also evaluate its profits and losses in upcoming time.
Economical factors: Modifications in national currency and commodities can affect
organisational growth and performance. It also involves purchasing behaviour of customer which
determines the success of company.
11

Social factors: It involves a huge number of individuals which directly impact on
performance of organisation. All organisational procedures and strategies are make according to
the requirement of society. But if company will provide better products and services to their
customers than people will help it in accomplishing its financial goals and objectives.
Technological factors: In recent time, evolution in technology factor is continuously
affecting organisational growth and performance. Austin Fraser can enhance its profit by using
various online marketing aspects through which this company can get immense success. This
firm can take help of various social sites to attract more customers. In simple words, promoting
and advertising services through internet sites can get help this firm in getting huge attention of
web users (Pestle and Colvard, 2012).
Legal factors: Changes in various governmental policies also force mangers to change
their organisational structure. Because no company can accomplish its goals and objectives
without working according to legal rules and regulations (Pizam, 2010).
Environmental factors: Different companies acquire their raw materials from
environment. In recent time, due to environmental disaster conditions, enterprises are facing
various problem which is decreasing their financial profit and performance in market place.
Hence, these are the main factors of external environment which have great influence on
strengths and weakness of organisation. Through this, Austin Fraser can evaluate its actual
position in its market place, by which it can compete with its different competitors in
marketplace.
CONCLUSION
Through concluding this project report, it can be determined that different internal and
external factors of environment plays an significant role in the functioning of business
organisation. Without considering environmental elements no company can survive in market
and also can not accomplish its desired goals and objectives. There are various components of
business environment such as customers, employees, supplier, legal activities, economic trends,
technological factors and other social aspects. These are the elements which influence
organisational performance and structure. So it is mandatory for business managers to make their
important decision according to environmental factors. Austin Fraser is a small multinational
organisation which is located in United Kingdom, which have investigated various types and
sizes of enterprise from which it have to compete. For that its have evaluated different
12

environmental factors and their impact on its performance. For evaluating elements of business
environment, manager of this organisation have used PESTLE analysis so that they can
determine strengths and weaknesses of their company. Along with this, SWOT matrix have also
been used to identify different strong and weak point of enterprise. At last, interrelationship
between organisational strengths/weaknesses and external macro factors have been explained.
13

REFERENCES
Books and Journals
14

15