Business Environment

This report discusses the structure and management of Talk Talk PLC, a telecommunication services company in the UK. It also highlights the importance of PESTLE analysis in monitoring the external environment and its impact on the company's performance. The report covers political, economic, social, technological, legal, and environmental factors affecting Talk Talk PLC.

Business Environment

Executive Summary
Business environment comprises ample of elements pertaining to micro as well as macro
environment of business setting. In the current report the impact of macro elements have been
studied in reference of Talk Talk PLC. It is essential to take these variables into consideration
while preparing strategies for future growth and success.

Table of Contents
INTRODUCTION:..........................................................................................................................5
TASK1.............................................................................................................................................5
Discuss the structure of company, its management as well as how it is governed.....................5
TASK2.............................................................................................................................................7
Discuss the importance of PESTLE analysis for business entities.............................................7
TASK 3............................................................................................................................................9
With the help of PESTLE analysis monitor the external environment of selected organization9
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION:
Business environment refers to ample of internal as well as external factors that affect
function of an organization. It comprises elements such as employees, consumers, government,
demand and many more (Arafat, 2018). The current report focuses on Talk Talk PLC that is
connectivity and telecommunication services company based on UK. It comprises the overview
of entity along with its history and organisational structure. In addition the importance of
PESTLE analysis and its influence over business performance of company is also included in
report.
TASK1
Discuss the structure of company, its management as well as how it is governed
Organizational plays a vital role in overall development of country by increasing in
employment opportunities, income, standard of living of people. It is crucial for growth and of
economy. There are ample of small as well as large companies in UK that contribute in evolution
of country (Bao, 2019). There are a predefined organizational structure of every company that
describe the hierarchical arrangements of various positions within organisation. In reference of
Talk Talk PLC, the overview of entity along with its history are discussed below:
Overview of company-
Talk Talk PLC is a prominent company of UK that provides telecommunication, internet
as well mobile network services to the business entities and customers of nation. It was situated
in the year of 2003 has headquarter in Salford United Kingdom. It offers a range of mobile
network, internet, broadband services to customers across the globe. The organisation
concentrates to provide affordable connectively facilities to users in order to get competitive
advantage.
History of Talk Talk PLC
The entity was initiated as a subsidiary of Car phone Warehouse became an independent
company in 2010. Previously it was known from Opal Telecom but in 2011 the entity changed
its name to Talk Talk Plc. It acquired opal telecoms that is growing telephone resellers to expand
business. In 2006, it launches free broadband services to customers with some conditions. It
increased the number of users and gave advantage to company. Organization also faced extreme
cyber attack activity in which personalized information of customers such as bank details have

been hacked by unauthorised users (Bedianashvili, 2016). In 2014 it became the first company
that made Britain first gigabit city through launching 1 GB fire network. The company provided
in 2016 fixed low price plans that was signed up by nearly 2.3 million users. In 2018, it launched
fibre nation to roll-out full fibre broadband to million of users within Britain.
Organisational structure of entity-
It helps to determine the roles and responsibilities, duties of various personnels working
within company. It helps to determine the reporting relationships between superiors and
subordinates. In addition, organizational structure minimizes conflicts and helps in proper flow
of information. There are different types of structures such as functional, divisional, matrix, and
flat which are followed by company to achieve pre denied objectives (Bilal, 2017). It is analysed
that Talk Talk plc is using hybrid organizational structure to circulate in information within
organisation. It is made with functional and divisional structure. The selected organizational
structure provides numerous benefits to entity like it assists work force to perform different task
related to multiple sector that helps in overall development of human resources. It provides more
flexibility to company to assign different job roles to staff members. With this, it emphasis in
complete development of human resources so that they perform assign tasks in an efficient
manner. Further, it also helps company to achieve predefined objectives in stipulated period of
time.
There are 10 directors in board of entity. Four of them are at executive position who do
not engage in operational activities of firm but take part in overall decision making process and
reaming are non- executive members. Directors render effective suggestions to increase in
profitability,m,m,,. of company. CEO of company is Tristia Harrison who has been associated
with Talk Talk for a longer period of time. She was elected by board members of organization to
take business decisions. She was on senior management position in Car phone before joining the
firm. Trisita is non executive director of Next PLC and trustee at Comic Relief. She is on the
superiors position in entity thus responsible for smooth functioning of business by taking
effective decisions to earn potential profits (Chukhray, 2018).
In addition, Charles Dun stone is Chairperson of organisation who founded carphone
warehouse group plc and established Talk Talk PLC in 2002. Primarily, he is the key person of
entity and performed ample of functions to lead it towards higher success and growth. He has
taken numerous initiatives for development of organisation in order to make it a leading

telecommunication provider within UK. At present, Dun stone is also the chairman of Royal
museums Greenwich (Demir, 2017). Kate ferry is the Chief financial officer(CFO) of respective
entity who is qualified charted accountant and handles all financial activities of company. Before
joining talk tall plc she worked as a member of Dixons Carphone PLC. There are non executive
directors as well as executive directors of firm. They all are well qualified and posses a strong
portfolio. It make them able to serve company in an efficient manner. This vast experience helps
them to make appropriate strategies for growth and success of selected entity. All these board of
members undertake various activities to enhance profit margins of entity.
TASK2
Discuss the importance of PESTLE analysis for business entities
PESTEL analyses is most important term which have to be concern before the
preparation of marketing strategies and businesses planning, its a study of outside macro
environment which can effects the growth and the activities of industries, by analysing these
factors company can be able analyse SWOT (strength, weaknesses, opportunity, threats) and
finally helps in the manipulation of the business plains, strategies according to it. PESTEL
analysis stand for Political, Economical, Social, Technological, Legal and environmental
elements. So it involves analysis of all these elements for the framework study of external
factors (Holmgren, 2018).

Political factors: It involves analysis of all political laws and rules which can effect the
particular organisation, by analysing political laws related to the organisation, functions,
products, transportation, market, political acct s related to the product and services quality
stander, company can change, design, and manipulate their plains and strategies for the smooth
run of organisation (Moon, 2020).
Economical factors: Importance of this element is related to the demands of products,
this factor helps to analyse the economical condition of target customer and their demand, ability
to buy the products, so that company can smoothly change the prising strategies and product
variety on the basis of economical conditions, it also involves analysis of economical growth of
that particular market place, so it aid to overall understand and manipulate the plain to prevent
the economical loss of organisation.

Social factors: social factors is important to analyse because it involves, ethical, Morden
thinking, believes of particular society related to the different elements of live, so by analysis the
social factors (Rialp-Criado, 2017).It will be helpful to understand the different trends and
demands of society on the basis of their believes which finally aid to produce product of high
demand.
Technological factors: it is important for the growth of organisation because now a days
technology is developing in exponential rate, and this technology involves new gadgets and
machinery's which helps in the time saving and row material saving, so it important for every
industries and organisation to get up to date related to the technology, and implement new
machinery for the operational functions.
Legal factors: This term is important to maintain because it defines the sustainability of
industries it is crucial to follow all the legal notice related to organisation, functions, component
use in it. This involve consumers rights, health related legal rules, rights of employees
opportunity. It is important to maintain all these factors to prevent any legal crises for company.
It also helps in making the brand image, if organisation follow all these legal rules.
Environmental factors: it involves various factors such as availability of raw material
due to the environmental and seasonal changes, pollution in the environment produce by
different industry and public activities. Analysis of these factors are important because raw
material availability effects the production and other factors like effects of season on product
storage, by identifying all these elements of environment company can change there product and
services in terms of formulation and row material.
TASK 3
With the help of PESTLE analysis monitor the external environment of selected organization
Pestle analysis is a framework that is used to analysed the impact of external factors over
business functions. It significantly affects the overall profit as well as sales of company thus it is

essential to undertake this tool in order to prepare effective strategies. Talk Talk Plc is renowned
company of UK that provides connectivity services to customers worldwide. There are several
elements that have the potential to influence its performance at market place. Here the
responsibility of mangers to analyse theses variables in order to prepare effective strategies. In
context of selected form the major factors that affects its performance are mentioned below:
Political-It comprises elements such as political environment of country, corruption,
current government policies related to taxations, and many more. Talk Talk PLC is working in
telecommunication and connectivity services that is highly affected with political conditions
prevailing in country. Government imposes surcharge, tax and other charges on telecom sectors
that increases cost and reduce down profit margin. Due to Brexit, there are ample of changes
have been witnessed within government of nation (Samusenko,2020). Under this, UK got
separated from EU that affects the operations of company. It increases uncertainties and also put
a significant impact over buying power of customers. Due to this, companies of UK are not able
to hire workforce from European countries that influence overall business functions. Thus, there
is a requirement to monitor the changes in existing policies and make necessary strategies to
cope up with it.
Economical- This element comprises factors such as demand, supply, cost, interest rates,
economic conditions and so on. These variable significantly influences the operations of an
organization. There are ample of macro factors as well as micro factors that need to be analyse
by organisation on timely basis. In context of Talk Talk plc, it need to monitor the growth rate,
consumers spending power within country to make effective strategies. In addition, it is a leading
telecommunication service provides of UK and creates ample of job opportunities for citizens
within nation to improve their standard of living. Due to current pandemic condition purchasing
power of buyers has been reduced down drastically (Shatskaya, 2016). It affects sales as well as
profit margins of selected organisation. The inflations is higher within country that may
influence overall sales and profitability of entity that need to be consider by it to ensure future
growth and success.
Social-This is consider as a significant variable of pestle analysis that comprises factors
such as personality, lifestyle, attitude, buying behaviours of customers. These variables affects
functions of company in an efficient manner. As per the current trend the people of UK spend
significant time over various digital platforms that helps top enhance demand of internet services

being offered by company. In addition, business entities of country also use broadband services
to undertake various operations. This trend increases demand of connectivity services of being
provided by Talk Talk plc within nation. In addition, buying habits as well as power also
influences affect the functions of firm thus it need to monitor existing market conditions to meet
with future uncertainties.
Technological-It is essential for each and every company to be advance in terms of
technology to survive at current market place. For this, entities need to evolve unique as well as
innovative approaches to perform business operations effectively. It will provide them
sustainable competitive advantage (Strzelczyk, 2017). As customers of UK are tech friendly and
prefers innovative as well as advance services. Thus, it is crucial for Talk Talk Plc to adopt
unique practices to render better services to users. For this, the company monitors the techniques
that have adopted by rival firms within telecommunication sector. For instance, now company is
looking forward to provide 5G network services to users in order to get competitive advantage.
This will not only increase the number of customers but also inflate sales as well as profit
margins of entity. Internet of things has also great field to explore for company. Thus, talk talk
plc need to analyse the recent market trend to formulate appropriate strategies.
Legal- It includes ample of variables that are related to legislation, compliances, rules,
regulations formulated to ensure smooth functioning of business. These are made by higher
authorities of country and mandate to applicable by entities. Changes in laws significantly affect
the operations of company. In addition to the common laws such as employment, consumer
protection laws there are ample of other regulations imposed on Talk Talk PLC. License, certain
rules related to telemarketing and privacy need to follow by company. Otherwise it may cause
legal disputes to entity. In addition, there are changes in predefined employment laws within
country such as now company need to pay workers as per hourly basis. Hence, respective entity
need to monitor this factor on timely basis to modified its strategies accordingly.
Environmental- The operations of organisations influence environment in significant
manner. It is the responsibility of company to analyse the impact of its activities over
environment and overall society. There are a lot of ways by which entity can protect its
surroundings through adopting recycling and reuse practices. In addition, it also need to
minimize the emission to protect environment. It is analysed that talk talk plc is taking initiatives
to minimize its e- waste. In addition, it adopts effective approaches to manage carbon intensity

generated by company. Further, entity adopts various practices of recycling and waste
management to ensure environmental protection. This practices provides edge to talk talk plc
over other rival firms. Although it is good for brand value of organization but incurred huge
cost. So company need to formulate effective plans in order to maintain existing brand value
in market.
With above discussion, it is analysed that PESTLE framework is a significant tool that
helps to monitor the impact of external variables upon functions of business entity. Organization
such as Talk Talk PLC need to undertake anticipation in order to prepare effective strategies.

CONCLUSION
With above report, it can be concluded that business environment significant affects the
profitability of a company. PESTLE tool is helpful to monitor the micro environmental factor
and its influence over business settings. Moreover, ample of factor of business environment need
to be analyse in an efficient manner while formulating strategies.

REFRENCES
Books and Journals
Arafat, 2018. Faktor Eksternal Industri Pariwisata di Kota Padang dengan Pendekatan Pestel
Analysis.Jurnal Pariwisata Pesona,3(2), pp.145-157.
Bao, 2019, September. Construction waste cross jurisdictional trade under PESTEL context. In
Sustainable Buildings and Structures: Building a Sustainable Tomorrow: Proceedings of
the 2nd International Conference in Sutainable Buildings and Structures (ICSBS 2019),
October 25-27, 2019, Suzhou, China(p. 283). CRC Press.
Bedianashvili, 2016. The Global Business Environment, European Integration and the Cultural
Potential of Social-economic Development of Georgia.Globalization & Business.
Bilal, 2017. Organizational structure as a determinant of job burnout: an exploratory study on
Pakistani pediatric nurses.Workplace health & safety,65(3), pp.118-128.
Chukhray, 2018. Theoretical and methodological basis for technology transfer from universities
to the business environment.Problems and Perspectives in Management,16(1), p.399.
Demir, 2017. Macro explanatory factors of Turkish tourism companies’ stock returns. Asia
Pacific Journal of Tourism Research,22(4), pp.370-380.
Holmgren, 2018. Assessing the impact of health system organizational structure on hospital
electronic data sharing.Journal of the American Medical Informatics Association, 25(9),
pp.1147-1152.
Moon, 2020. The role of organizational structure and deviant status in employees’ reactions to
and acceptance of workplace deviance.International Journal of Conflict Management.
Rialp-Criado, A. 2017. Innovation strategy and export intensity of Chinese SMEs: The
moderating role of the home-country business environment.Asian Business &
Management,16(3), pp.158-186.
Samusenko,2020. The Analysis of the External Environment to Determine the Practical Focus of
Applied Research and Development in the Framework of Innovation. In Complex
Systems: Innovation and Sustainability in the Digital Age(pp. 245-255). Springer, Cham.
Shatskaya, 2016. PESTEL analysis as a tool of strategic analysis in international markets.
SCOPE ACADEMIC HOUSE B&M PUBLISHING, p.47.
Strzelczyk, 2017. Use of PESTEL Analysis for Assessing the Situation of Polish Transport
Enterprises (Part I).Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie, (27, t.
2), pp.161-168.