Importance of PESTLE Analysis in Business Environment

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Determine the structure of Micro Focus International PLC and how it is governed..................1
Analyse the importance of conducting PESTLE analysis...........................................................2
Use PESTLE framework in order to analyse the impact of external environment.....................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is the collection of internal and external factors which impacts the
working conditions of business. These factors include many components such as suppliers,
competitors, technologies, trends and other related market conditions. These are the forces which
influences the businesses form the external side of business boundaries (Prajogo, D.I., 2016).
While running a business, it is required to keep in mind that the external and internal factors
impact each other and also work collectively which impacts the business conditions. In order to
carry forward this report, Micro Focus International PLC is considered which is a British
multinational software and IT company located in Newbury, Berkshire, England and company
offer software services and provide consultancy. In this report, suitable structure of company is
describe and also how it is governed. Moreover, it also describe the importance of conducting
PESTLE analysis for an organisation and lastly, use it to determine the potential factors which
impacts the working conditions of company.
MAIN BODY
Determine the structure of Micro Focus International PLC and how it is governed
Micro Focus International PLC is the public limited company which is owned and
directed by the government and public bodies. Public company is a corporative which is owned
and distributed among the general public shareholders by conducting free trade shares in order to
exchange its stock and products. Public companies are formed with the legal structure and
system and also run by the government of state (Bah, E.H. and Fang, L., 2015).
How public companies governed
Public companies refers to those companies which are undertaken at its initial public
offering by offering its shares of stock to the public and also raise additional capital. For this,
company is subjected to consider the requirements of public and also consider the shares which
are listed on the stock exchange. Just like the private limited company, PLC is an incorporated
business which is owned by Board of Directors from the behalf of shareholders and also has an
AGM which is related to the various key issues of company. Here, there is a main difference
among the PLC and private limited company as they sell their own shares on the stock exchange
in order to become the member of public by which finance can be raise in significant manner.
Legal structure of public company
1