Importance of PESTEL Analysis for Business Environment

This report discusses the importance of PESTEL analysis in analyzing the business environment and making informed decisions. It focuses on the case study of Rightmove Plc, the UK's largest online real estate portal and property website. The report examines the governance and structure of the company, and highlights the significance of PESTEL analysis in understanding the market and identifying opportunities and threats. It also provides a PESTLE analysis of Rightmove Plc, covering political, economic, social, technological, environmental, and legal factors.

Business Environment

EXECUTIVE SUMMARY
For being a successful enterprise the organisation has to adapt itself to the factors in which they
operate their functioning. The business environment is dynamic and always uncertain as it
includes both the internal as well as external factors which impacts the organisation structure and
their activities. The aim of this report is to evaluate organisation structure and to determine how
the organisation control the functioning. The following report tells about the PESTEL analysis
and its importance as this analysis is helpful in determining remarkable changes in social,
economic, technological factors etc. From the report we can conclude that business has to work
in such dynamic environment as it influences the operation of the organisation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Introduction......................................................................................................................................3
Task1................................................................................................................................................3
Examine how your chosen company is governed and structured...........................................3
Task 2...............................................................................................................................................5
Importance of PESTEL analysis............................................................................................5
Task 3...............................................................................................................................................7
PESTLE analysis of Rightmove Plc.......................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Introduction
Business environment refers to all the internal and external factors where the
organisations operates their functioning. These factors are generally uncontrollable and
inaccessible by the organisation which affects the functioning of the organisation directly or
indirectly (Ivanovich, 2020). To understand costumer’s requirement an extremal analysis of
market is important, which is supported by analysing Government, Economy, Social,
Technology, Environment, Legal changes of market. To carry forward this report, Right move
Plc is considered which is a UK based company and the largest online real estate portal and
property website. The company leading on fourth position with 490 employees. The company
was established in year 2000 by a joint venture of four companies. This report is going to focus
on the analysis of the company and its structure, importance of PESTEL analysis for an
organisation and how it is helpful for the analysis of company. The role of PESTEL analysis for
the selected company, provides the summary of the market related to changes.
Task1
Examine how your chosen company is governed and structured
Company overview
Rightmove PLC is the UK's largest public online real estate portal and property website
named “rightmove.co.uk” situated in London. The firm was on the London Stock Exchange on
15 march 2006 (About Rightmove. 2020). Rightmove was founded in year 2000 by four top real
estate agents of UK: Countrywide, Connell's, Halifax and Royal and Sun Alliance. Rightmove
operates a website on which it uploads the properties in the UK and broadcast the house price to
make people aware about the status of property market of the England and Wale. Agents, new
home developers, buyers, sellers and renters are the basic customers of the company. Company's
highest profit is earned from the agents (Dima, Dima and Mahagaonkar, 2018)
Organisational structure
Rightmove is the estate public company with functional organisational structure
diversified in three principle committees, the Audit Committee, the Remuneration Committee
and the Nomination Committee. Each committee is authorized to legal organisational chart to
execute its duties. This legal chart includes: local, state and central governance and among which
Rightmove uses the Central governance. Rightmove's code of conduct works on the corporate

governance. In which it applies all the government policies, procedures led by UK government.
In this company need to ensure that mechanism works in interest of stakeholders, employees,
customers and other members (Rightmove plc Annual Report. 2019).
Board of directors
Rightmove PLC consist of eight directors on the board among which two are the
executive directors which are chief executive officer, chief financial officer and other six are the
non-executive directors. (Sharma, et. al. 2021)
Chairperson and CEO
Andrew Fisher, chairperson (Non-Executive Director)
Andrew Fisher was appointed in January 2020 after the retirement of Scott Forbes in
December 2019 after serving 14 years to the organisation. Andrew is also the non – executive
director of Marks and Spencer plc. Andrew has a strong experience and background in the
expanding digital and media businesses with his unique growth strategies (About Rightmove.
2020). As a chairperson he has role to encourage positive and efficient relationship between
executive directors and non-executive directors. A chairperson also need to ensure the proper
communication between the stakeholders and board members by providing significant time for
communication. As a chairperson Andrew has a responsibility of proper leading and governance
of the board
Peter Brooks- Johnson, Chief Executive Officer (Executive Director)
Peter is working in Rightmove from 2006 before which he used to work in Accenture and
the Berkeley Partnership as a consultant. In 2013 Peter was appointed as Chief Operating Officer
and had role of managing the directors after which Peter was promoted to CEO of Rightmove in
May 2017 (About Rightmove. 2020). With significant experience at various position in
Rightmove Peter has a keen knowledge in property and digital market with handful of skills and
strategies to lead the organisation with ease. Peter as CEO has to look forward at the day to day
management activities of the firm like operational and financial activities and leading executive
directors team.
Jacqueline de Rojas CBE, Senior Independent Director (Non-executive Officer)
Jacqueline was appointed in Rightmove on 30 December 2016. She is known for her tech
skills and is highly experienced and knowledgeable in digital, software, coding, and
technological areas in the form. As a senior independent director she acts as advisory person to

the chairman. The yearly performance feedback of chairperson is also conducted by the senior
independent director.
Alison Dolan, Chief Financial Officer (Executive Officer)
Alison is recently appointed on 7 September 2020 in Rightmove. As chief financial
officer she works with CEO as a part of executive director team. The role is to communicate
effectively with the stakeholders of the firm and to manage the financial issues (About
Rightmove. 2020).
Non-executive Officer
The role of non-executive officers in a Rightmove is to positively oppose the executive
directors and make sure to all the strategies for risk and competition are implemented by the
board. Andrew Findlay, Lorna Tilblian, Rakhi Goss-Custard and Amit Tiwari are the non-
executive directors of the Rightmove plc (About Rightmove. 2020).
Sandra Odell, Company Secretory
Sandra was appointed in Rightmove on 1 November 2016 by the approval of board.
Sandra is student of Chartered Secretaries and Administrators (About Rightmove. 2020). The key
role of Company Secretory is to advice the board regarding the corporate governance issues and
also support the CEO and Chairperson in that all the important and relevant information are
conveyed to the other board members timely. Secretory also organize meetings, inductions and
training programmes on behalf of chairperson (WorldBank, 2019)
Task 2
Importance of PESTEL analysis
The analysis which studies the external market and creates a report to analyse the factors
that affects a company is known as pestel analysis. Pestle analysis as a result provides less threat
for business. External market is analysed by marketers with help of this analysis (Arsić and
Arsić, 2018). The mentioned analysis comes in use of analysing a new market or whenever
entering in a new business. An investigation is based on this as it helps in final decision making
of a company after the market analysis. This analysis plays an important role in every market.
 Eliminates the risk factor: The term risk is refereed to an ability for achieving the
financial goals related to market. Risks are there in every business environment. Threats,
can be minimised with help of analysing the sources that are creating a problem,

Employees suggestions must should be welcomed, a list of risks should be there, by
analysing that if the same risk is happening for some other organisation then it must be
taken care of. Compliance, Finance, Operational and several more risks are there.
Economic crises, Nature cause are there which affects these. Avoid and prevention of the
risk is the solution for this (Somers, 2019). After analysing various factors related to
external environment a business develops into market by analysing the external factors as
it is useful for the marketers and other managers to identify risk factors and eliminate
them accordingly to remain competitive in business environment (Bruijl, 2018).
 Cost effective: Relative cost and different courses of action comparison's result as cost
effectiveness. In moving forward, specific programs are also there which supports in
managing the feedback. Cost effective analysis is different from cost of benefit related to
analysis. Which assigns a monitory value for measuring the effects (Ivanovich, 2020).
With this a deeper market analysation is there which carries understanding of the
business related to threats, and a method of exploit opportunities. Final product for the
market cost includes: Cost of raw material, price, fuel and employee salaries.
 Deep understanding: With deep understanding it is related to identify all the
opportunities related to your organization. Know all the threats that company faces, see in
detail all situations before taking a step ahead. Understanding is essential for a business
as: Identifying important user's section, evaluate consumer's motivation, Do a
competitive analysis. Understanding is alpha as this provides knowledge about products'
requirement by the market as per the analysis. (Tung, Tang, and King, 2018)
 Exploiting opportunities: The opportunities refer the investments which are there to get
a high return from possibilities of full-scale operations based on business systems. This
analysis is there, which examines the conclusion of entrepreneurs and start creating a
business opportunity from an asset's point of view (Halbert and Ingulli, 2020).
Task 3
PESTLE analysis of Rightmove Plc
Business proprietor and managers are always pensive and have a key of PESTEL analysis which
helps in analysis of business environment. The concept of environment is mixed, so a separated
dimension by the analysis of Rightmove Plc is as follow:

 Political: The survival of a company depends on cause of profitability, Tax policy,
foreign Trade control, Employment law, Labour law and many more. A sudden change in
government causes harm for the business as there is doubt at every step. The scenario
change is being known by analysing and the current priorities are known. As the
Rightmove plc is related to property and price of land keeps switching as per
government, that is why political analysis helps the company and as political factors
strength is they can change the budget (Halbert, and Ingulli, 2020). In result of this with
interval by analysis the brand keeps switching their price. Government keeps changing,
and with a change several changes are there, so the Right move plc as it is a public
company keeps a check on the stability of rules passed by government. Regular changes
might create harm for a business so cooperation with environment/'social activist creates
a help in achieving long term cooperate goals for real estate (Rightmove Plc PESTEL
Analysis, 2021). There can be a sudden change in rules too as government is related to
taxes, employment, privacy, advertising with analysis the company keeps a regular check
on them. With change in laws and rates passed by the government there is increase in
price of the property as well, the sales rate starts decreasing for the company. Employee
benefits are there, which provides comfort for and employee and there is an ease at work.
 Economic: The factors related with how a business is been done and what is the outcome
of profit by that is counted under this. Economic growth, exchange rates and many other
finance related things are analysed in this. Rightmove plc makes a use of United
Kingdom's economic factors like costumer spending to analyse the quality and the
growth rate (Hamilton, and Webster, 2018). With help of analysis the labour cost,
economic growth rate, Interest rates and what kind of an economical system is there in
United Kingdom and is it lasting or not. The skilfulness of financial market will find out
the ability of Rightmove plc. To raise the capital at fair price. Unemployment, stock
market rates, growth rates, interest rates are there in economic analysis of the company
for United Kingdom. All employees are having equal legal rights in the considered
company (Rightmove Plc PESTEL Analysis, 2021).
 Social: A culture followed by the society and how the entire process is being done that
accord the taste of an organization in an environment. Business failing in adapting the
social taste will fail in achieving a position in market too. Provided content and response

by the public play a vital role how the market will react at the provided message and
design by Rightmove plc (Rightmove Plc PESTEL Analysis, 2021). An analysis of
statistic and skill of the population, culture (gender, social, etc.), attitudes, class structure
and power structure in the society. The exact cause of migration must be understood by
the company. The company analyse the exact requirement of the costumer as what kind
of property is required and provides help in making a new home at ease. Cultural aspects
and perceptions, age distribution, popular growth rates.
 Technology: This is having a fast interrupt in several industries across the world. With
change in time technology is being advanced. As Rightmove plc. Deals in property over
internet, it is beneficial as low in cost, market awareness is there and acceptance by
United Kingdom as well, and as per the requirement the brand provides the suitable deals
to the customers (Rightmove Plc PESTEL Analysis, 2021). In this analysis cost of
benefits related to upgrade or creating new technology, its life cycle, acceptance by the
market and use of social media is analysed and several factors that may affect the
business. The company to stay ahead need to see the current technological innovations.
Rightmove plc. creates new products quickly, and with regular updates provide suitable
deals for the market. This includes provide best deals rapidly to market and analyse their
requirements (Tóth, Z., Nieroda, M.E. and Koles, 2020). With change in time, as new
technology is coming so this can be analysed what the competitors are acquiring as a new
change. With this an access towards the competitors is there by the company. With new
updates in technology work from home is also possible which provides a great comfort
for an employee.
 Environment: Such factors came in existence on noticing the external and internal
factors that are affecting the business. The analysis provides the factors that affect and
analysis the threat. These are economic, political, socio-cultural forces. The study of
environment is there and monitor the pollutants, atmosphere, river and environment
related study levels is done. The company environmental analysis provides the weakness,
threats, strengths and opportunities. United Kingdom prefers renewable technologies.
Rightmove plc (Rightmove Plc PESTEL Analysis, 2021). May create a great benefit with
this to stay in market for a longer-run investing in sustainable technologies, to guarantee
a longer period stay in market. Green ozone-friendly products are best for environment,

and create a positive image of the business in the market. Being an online property portal
the company is spreading the go green message, keeping the environment healthy. The
referred company studies specific environmental regulations of United Kingdom to
realize that electricity, water, air etc. such resources are there used as particular or which
resource use might cause a trouble for their organisation (Chukhray and Mrykhina, 2018).
In United Kingdom specific environmental groups are worried about construction of
housing development in countryside, so the company with this provides the area on their
sites where the house can be build.
 Legal: One of the most important factor for an analysis to enter a new market is legal.
This analysis includes health and safety, equal opportunities, product safety, labelling and
consumer rights. For several countries rights by government and several institutions are
not sufficient for property rights of specific organisation. Rightmove plc (Rightmove Plc
PESTEL Analysis, 2021). must take care of several points related to government terms
like- Intellectual property law: These are designed to keep safe companies patents and
valuable ideas. Lack in protection of intellect property right, may create a weak position
in market for a real estate company. Employee protection law: Rightmove plc. follows all
health and safety laws and provide best facilities for comfort of their employees
(Rightmove Plc PESTEL Analysis, 2021). Effectual Training is being provided to all the
employees in the company and equal employment opportunities are there as per anti-
discrimination law (legislation designed to prevent discrimination against particular
group of people). This provides the business with best employees and in return
employees to receive their rights.
Conclusion
As per the dynamic of the strategy it has been concluded that, Business environment is
having a great impact on the work of an organisation. Business environment is a frequently
changing environment which is useful in identifying the performance of business and its
opportunities. An external analysis provides a big help in knowing the exact demand of market.
Rightmove plc. A real estate performs PESTEL analysis to know external threats and
opportunities. In addition to this, PESTLE analysis is conducted which is useful in order to
eliminate the risk factor and also analyse the opportunities for it.

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About Rightmove. 2020. [Online] Available through: <
https://plc.rightmove.co.uk/about-us/company-overview.aspx>./
Rightmove plc Annual Report. 2019. [Online] Available through:
<https://plc.rightmove.co.uk/~/media/Files/R/Rightmove/2020/2019%20Annual
%20Report.pdf>./

Rightmove Plc PESTEL Analysis. 2021. [Online] Available through:
<https://www.case48.com/pestel-analysis/9088-Rightmove-Plc>./