Business Environment of Softcat Plc

This report discusses the business environment of Softcat Plc, an IT infrastructure provider. It covers the internal environment, including governance and structure, and the importance of Pestle analysis. The analysis identifies opportunities and threats in the political, economic, social, technological, legal, and environmental factors. Softcat Plc aims to be a leading IT infrastructure provider with a focus on employee engagement, customer satisfaction, and shareholder return.

Business Environment

Executive Summary
Business environment can be defined as aggregation of different factors that surround
business and influence operations of the business. This report has discussed about business
environment of Softcat Plc, a company that provides IT infrastructure. This report has discussed
about internal environment of the company through analysis of its governance and structure. This
report later analysed importance of pestle analysis, this is a framework that is used to identify
and understand impact and influence of different macro environmental factors on business
operations. These environmental factors are political, economical, social, technological, legal
and environmental. Later, this framework was applied on Softcat Plc in order to identify different
opportunities and threats. Analysis outlined that every factors of environment has some positive
as well as negative influences on business. Positive impacts becomes opportunity whereas
negative become threat for the organisation.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Task 1...............................................................................................................................................4
Governance and Structure of Softcat Plc.....................................................................................4
Task 2...............................................................................................................................................6
Importance of carrying out Pestle Analysis for an organisation..................................................6
Task 3...............................................................................................................................................8
Pestle Analysis of Softcat Plc......................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment can be defined as aggregation of all conditions, events and
influences that surrounds and affect it. This means internal and external factors that affect and
influence decisions and activities of the organisation. This report will discuss about business
environment of Softcat Plc. Company was founded in 1993 and is headquartered at Marlow,
Buckinghamshire. Operating in information technology industry Softcat Plc is an IT
infrastructure provider. It has UK offices in Bristol, London, Manchester, Leeds, Marlow,
Southampton, Birmingham, and Glasgow and has its Irish office in Dublin. From 1993 to 2015
Softcat Plc was a limited company and in 2015 it became public limited company. This report
will discuss about internal and external environment of Softcat Plc. Internal environment will
involve discussion about governance and structure of the Softcat Plc. Later, report will also
discuss about importance of carrying out Pestle analysis for an organisation and this framework
will be applied for Softcat Plc.
MAIN BODY
Task 1
Governance and Structure of Softcat Plc
Softcat Plc is an information technology infrastructure provider company. This company
was founded in 1993 by Peter Kelly. The company originally was founded as Wardswift in
Wycombe and Martin Hellawell became managing director of the company who is presently
chairman of the company and in 2006 headquarter of the company was moved to Marlow.
Earlier, Softcat Plc was a limited company which later in 2015 became public limited company
and is traded on LSE. The company started its office in Glasgow, Scotland, it was first office of
Softcat Plc outside UK. This office was opened in 2016 and in 2018 Softcat Plc opened its office
in Dublin, Ireland and it was first office of Softcat Plc outside UK (Raziq and et.al., 2020).
Overall Softcat Plc has 9 offices and to manage all these offices and carry out all operations of
Softcat Plc, it has employed around 1330 employees. Product and services of Softcat Plc involve
Hybrid Infrastructure, Digital Workplace, Cyber Security and IT Intelligence. Goal of the

organisation is To be leading IT infrastructure product and service provider in terms of employee
engagement, customer satisfaction and shareholders return. Values of the company involve
responsible, intelligent, fun and passionate, these are values of Softcat Plc on the basis of which
all activities and functions are governed and directed. Other than this, purpose of Softcat Plc is to
help customers to use technology to succeed, by putting their employees first.
Organisational structure and governance of Softcat Plc
Organisational structure refers to the system that outlines direction of organisational
activities towards attainment of organisational goals and objectives. Organisational structure
consists of different people and positions that are responsible for achieving organisational goals
and objectives. Organisational structure of Softcat Plc involves a management team, who is
responsible for management of Softcat Plc. Other than management team chairman of the
organisation is Martin Hellawell. They are responsible for embodying their core values,
promotion of warm and friendly culture, motivating employees for success and driving
satisfaction of customers. This means that people in management team are mainly responsible for
carrying out organisational functions and achieve organisational objectives. Management team at
Softcat Plc involves 10 members (Stalph, 2020). These members are CEO, CFO, Managing
Director, HR Director, Legal Director, Alliance and Marketing Director, CIO, Finance Director,
Sales Director and Operations Director. This means that different activities and key activities are
managed by their head. Board members are also responsible for leadership of Softcat Plc.
Organisational structure of Softcat Plc is functional organisational structure, this
organisational structure starts with positions of highest level in organisational structure.
Organisational structure of Softcat Plc starts with chairman and followed by this it involves
management team and goes down from there. In this structure employees are according to their
specific skills and their corresponding functions in the company. In this each department is
managed separately. Softcat Plc gets several benefits through this structure such as clarity of
roles, encourage specialisation. Additionally, structure of Softcat Plc also involves different
board committees. In this system board delegates specific responsibilities and authorities to
different teams that are audit, nomination and remuneration committees. Softcat Plc is governed
on the basis of compliance with UK corporate governance code. Board of the company includes

6 directors and they are responsible for the governance of Softcat Plc. Among these 3 directors
are non-executive independent directors.
For governance of organisation roles and responsibility of board involves oversight of
business and ensure long-term success of Softcat Plc. Along with this board also provide
leadership to organisation. Role of board also involve reviewing important aspects of business
with management and monitoring management performance against target. Role of non-
executive directors involve providing constructive challenge to management so that organisation
can have robust assessment of operations of business (Marsden, 2020). Role of board also
involve development of strategic aims and having oversight in terms of having right skills and
resources for the company to meet its objectives. Other than this, in governance there are certain
matters that are reserved for board and these matters are strategy, business objectives and annual
budgets, annual and half-year results and dividend, material acquisition, disposal and contract.
Other than this, changes in internal control, risk management, financial reporting policies and
procedures are also reserved for board. This means that with leadership and oversight of board
members and assistance of management team Softcat Plc is managed and governed. Effective
governance has contributed in continuous success of Softcat Plc.
Task 2
Importance of carrying out Pestle Analysis for an organisation
Pestle analysis is a framework that is used to analyse different environmental factors in
macro environment of the business. Pestle analysis is also known as abbreviation of analysis of
political, economical, social, technological, legal and environmental factors. Importance of
Pestle Analysis is as follows-
Identification of Changes
With help of Pestle analysis organisations can identify potential changes in different
environmental factors. This help in creating changes in internal practices of Softcat Plc. Other
than this, certain changes also are opportunities and threats for organisation. Softcat Plc when in
advance know these opportunities and threats, it can create strategies to utilise opportunities or to
reduce or eliminate impact of threats (Vallati and Grassi, 2019). For example- in relation with

technological factor Softcat Plc can identify in advance what are potential changes in
information technology, it can prepare organisation for potential changes.
Significant contribution in strategic planning
This is concerned with importance of pestle analysis in strategic planning. Strategic
planning is a process in which activities of organisation are directly linked with objectives of
organisation. This involves identifying where organisation is presently working and where
company is going. Strategic planning involves situation analysis and pestle analysis is important
for identifying correct situation of organisation. For example- company when is planning to
expand its operations using pestle analysis for social environment analysis, it can identify
requirements of existing customers and what are requirements of potential future customers. On
the basis of this right decisions can be made.
Enhanced understanding of environment
This means that with help of pestle analysis Softcat Plc can get enhanced understanding
of the environment in which they are operating. This also helps in making right and suitable
decisions in order to gain extra benefits by implementing suitable strategies. With pestle analysis
organisations can identify factors that indirectly are affecting organisation and factors that
remain unnoticed by the organisation (Gheibi and et.al., 2018). For example- enhanced quality of
information technology requires better infrastructure, in this if organisation remain unaware of
particular sector and their specific requirement for IT infrastructure they can need. Considering
this will help in creating product that can fulfil requirement of that particular sector.
Development of alertness
This means that with help of pestle analysis organisations can become aware of possible
threats that can arise anytime. For Softcat Plc it is very important to be alert because technology
is changing at very fast pace and this is why businesses linked with technology and operating in
technology industry need to stay prepared for any upcoming changes. Development of alertness
can also help in utilisation of opportunities and timely and early utilisation can also help in
gaining competitive advantage in the industry.
Help in evaluation of impact of different decision

This is another important reason because of which organisations should undertake pestle
analysis. Softcat Plc when make any kind of important decision in such situation with help of
pestle analysis it can identify what impact will different macro environmental factors will have
on the success of decisions. For example- if Softcat Plc is taking decision regarding employment
regulations within organisation, with help of it will be able to understand what impact legal
environment will have on this decision. Another suitable example of this is that if it is likely to
make changes in its existing manufacturing practice, Softcat Plc needs to identify if it is
according to environmental laws.
Task 3
Pestle Analysis of Softcat Plc
Political Factor
This factor is an important factor that plays role in influencing and affecting different
decisions of the organisation. This mainly involve political conditions and political stability of
the country in which organisation operates. In relation with Softcat Plc it gets affected by Brexit,
it also gets influenced by level of corruption specifically in technology industry and use of
technology for the purpose of corruption (Düerkop and Huth, 2017). Considering this, different
regulations have been implemented by government, it is important for Softcat Plc to consider
different regulations and how they will influence their operations and activities. Softcat Plc also
requires considering this and identifying requirement for changes in internal practices of Softcat
Plc. Other than this, different regulations for safeguarding intellectual property also get
influenced by political factors. Trade regulations and interference of politics in technology is also
an element of this factors that Softcat Plc needs to consider. In terms of this political and its
influence on Softcat Plc is positive because increasing importance of technology has led to
favours for technology industry and its organisations.
Economical Factor
This factor of environment involves identifying demand for the services of Softcat Plc.
Other than this, it involves factors such as economic sector, interest rate, taxation policy and their
impact on successful operations of the organisation. Different organisations and different types

of organisation are subject to different rules and regulations. Other than this, Softcat Plc also
needs to consider that influence decisions of customers and clients of Softcat Plc, this means
growth rate of the economy, this has direct impact on purchasing power and disposable income.
Other than this, inflation, average consumer spending also influence decisions and activities of
the Softcat Plc. Softcat Plc also needs to consider what consumer is spending for technology and
infrastructure of the country. Successful operations of Softcat Plc requires that infrastructure of
the country are complementary for Softcat Plc. Economic stability of UK has an opportunity for
Softcat Plc and other this increasing use of technology in all kind of and specially in small
organisations has an important opportunity for Softcat Plc.
Social Factor
This is concerned with consumers and clients of Softcat Plc. Factors that are involved in
this factor are demographic characteristics of customers, skills level of the population of the
country. Cultural and value factors are also involved in this factor (Shtal and et.al., 2018). This
also involves attitude of population and customers of UK towards technology. In relation with
this factors and their influence on Softcat Plc, people are taking more interest in technology and
increasing interest in technology education has positive influence on Softcat Plc and its success.
Concerned with attitude of clients, major clients of Softcat Plc are businesses, and all businesses
are heading towards adaption of technology to gain different benefits that are being provided by
technology. This provides a very effective opportunity for Softcat Plc. Softcat Plc is also has an
opportunity because of increasing use of big data and data that is being utilised for the
businesses. This is because Softcat Plc provides services for management of different data and its
safeguarding.
Technological Factor
One of the factors that mainly influence Softcat Plc is technological factor. This is
because Softcat Plc is operating in information technology industry. Factors involved in this are
level of technological development in UK, rate of technological diffusion is also an important
element of this factor. Increasing use of technology and technology advancement provides
effective opportunity to Softcat Plc but concerned with this rapidly changing technology is also a
threat for Softcat Plc. This is because when technology gets changed at fast pace in such

situation Softcat Plc has to ensure it is prepared to adapt those changes. Concerned with this, in
order to create opportunity it is also important that Softcat Plc take active participation of
technology improvement and its enhancement (Keller, Daronco and Cortimiglia, 2017). Another
important element to consider in this is development of technology and use of technology by
competitors of Softcat Plc. This influence competitive advantage and capacity of Softcat Plc to
perform compared to its competitors.
Legal Factor
This environment consists of different elements and factors that govern and regulate
functioning of organisation in its business. This involve different laws and regulations that
technology industry and organisations operating in it are subject to. This involve regulations and
laws for cyber security, use of technology, anti-trust law in technology industry. Other than this,
Softcat Plc is also subject different employment laws and regulations and equality and
discrimination laws. Laws and regulations for data protection, that is very important and
significantly influence on operations and functioning of Softcat Plc. Ability of Softcat Plc to
effectively comply with data protection allows opportunity for Softcat Plc because of data
protection law. Another opportunity provided by law is regulations for copyright, patent and
intellectual property rights. Legal factors provide opportunity when regulations become
favourable for the business industry and its organisation. But threat in this is mainly related to
non-adherence to regulations and laws. This situation can create significant threats in several
forms, this is legal problems for the organisation, negative influence on image of the
organisation.
Environmental Factor
This factor involves different environmental impacts of business activities of Softcat Plc.
This involves attitude of customers towards ethical and green products (Pan, Chen and Zhan,
2019). Technology is playing both negative as well as positive roles in environment and its
sustainability. This role involves direct impact, enabling impact and systemic impact. Direct
impact positive and negative impact information technology that come from manufacturing and
service producing firms and related intermediaries. This involve influence of production on
natural environment and other than this, it also involve impact of operating infrastructure,

building functions, vehicles and logistics. Enabling impact of information technology is the one
that is related to application of IT outside IT-production sector and direct IT application and
because of its use in economic and social activities. This mainly involves reducing
environmental impact with help of IT application as application of IT lead to greater efficiency.
Systemic impacts of IT are based in behaviour and behavioural changes. This means that there
are several ways in which IT influences environment. By realising potential positive impacts of
IT Softcat Plc can generate opportunity for growth (Perera, 2017). Other than this, Softcat Plc
also needs to ensure sustainability of environment while carrying out its operational activities
along with its core business activities.
CONCLUSION
On the basis of above discussion, it can be concluded that in order to utilise opportunities
of external environment of the organisation, it is important that internal environment is capable
for that. This means that technology and information technology is providing several
opportunities for organisations operating within IT industry and to effectively utilise these
opportunities Softcat Plc has effectively governed its business and its internal environment.
Pestle analysis of Softcat Plc helped in identifying that overall company is in positive
environment influence and with right strategies can also deal with situations that are not very
positive and situations that create threat for Softcat Plc.

REFERENCES
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enhancement strategies: A case study of three economies. Journal of Management in
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Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
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Online
OUR GOVERNANCE. 2020. [Online]. Available Through: <
https://www.softcat.com/investors/our-governance/ >.
OUR PEOPLE. 2020. [Online]. Available Through: <https://www.softcat.com/who-we-are/our-
people/>.