Analyzing the External Environment of Man Group plc

This document provides an analysis of the external environment of Man Group plc using the PESTEL framework. It discusses the political, economic, social, technological, environmental, and legal factors that impact the company. It also highlights the importance of conducting a PESTEL analysis for strategic planning and business expansion.

Business Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examination of Man group plc is governed and structured........................................................3
TASK 2............................................................................................................................................6
Evaluation of the importance of carrying out PESTEL Analysis of Man group plc..................6
TASK 3............................................................................................................................................7
Using the PESTEL Framework to analyse the external environment of Man Group plc...........7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business environment can be defined collection of different external and internal
elements, which impacts in both on a company in both positive and negative manner. It is the
responsibility of a business company to keep on conducting analysis on these elements of
business environment so that needs and expectations of customers could effectively be fulfilled
right on time (Bah and Fang, 2015). It is mandatory for every single business company to keep
on hitting their targets and this can be performed through looking among different aspects.
Through measuring all these areas, it is said that supply and demand process within the sector of
different products and services offered by the business organisation could effectively be
managed. Under this report, Man Group Plc has been taken into consideration where, its
structure and evaluation of the importance of carrying out PESTEL Analysis as well. Also, report
will put light on PESTEL Framework to analyse the external environment of Man Group plc.
TASK 1
Examination of Man group plc is governed and structured
Background of Man Group plc:
Man Group plc is the financial services organisation, which was found in the year of
1783 and performing number of activities within the active management business system. At
initial level, this company was serving as a brokerage and sugar cooperage where James Man
(founder) has effectively taken into consideration. It gives a scope of assets to institutional and
private speculators all inclusive and is the world's biggest traded within an open market support
investments company (Belás and et. al., 2015).
This where, it was revealed that $117.7 billion in assets under administration as of
December 2019. On the other hand, if it is talked about headquartered at Riverbank House in
London and utilizes more than 1,000 individuals in different areas around the world. The
organization was a supporter of expressions of the human experience and beneficent activities,
including the Man Booker Prize.
On the other hand, if it is talked about the strategical business environment, company has
made various objectives into consideration and some of these has given high range of benefits to
the business organisation. In present context, Luke Ellis, who was the CEO of Man Group plc
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has developed strategic objectives in relation to continuation of diversifying the firm through
acquisition, as well as invest in its infrastructure (Breckova, 2016).
Organisational structure:
Specific organisational structure that has been taken into consideration by Man Group plc
is Functional, where transferring of information is done from top management level to medium
and then to lower management level as well. Basically, utilising this organisational structure has
helped Man Group plc in bringing and enhancing the productivity, specialisation, accountability
and clarity as well (Eling and Schaper, 2017).
The new extreme holding organization, Man Group plc which recently fused organization
enlisted in Jersey. It is proposed this new corporate structure will be actualized by methods for a
plan of course of action under Part 26 of the Companies Act 2006, which requires the
endorsement of the Man investors and the assent of the Court (the Scheme) at gatherings to be
hung on 10 May 2019 (Erasmus, Strydom and Rudansky-Kloppers, 2016).
The Man Group Plc is one of the leading organizations in its industry. Man Group Plc
maintains its prominent position in market by critically analysing and reviewing the SWOT
analysis. SWOT analysis an immensely interactive process and requires effective coordination
among various departments within the firm such as – marketing, finance, operations,
management information systems and strategic planning. Man Group plc (Man) declared its
expectation to actualize a corporate rearrangement according to which it is suggested that
another extreme holding organization be presented for the Man Group (the Group).
SWOT ANALYSIS:
Strengths:
 Primal most strongest point of Man
Group plc is that, company is having
various reliable suppliers, which helps
company in boosting productivity in
much effective and in efficient manner.
Also, it is said that proper supply chain
has given number of opportunities in
relation to coming out of various
supply chain related bottlenecks
Weaknesses:
 Man Group Plc consists of different
weak points where primal one that
came in front is inventory is really very
high in nature from its consumers. This
has affected company's performance
level as well as it raised more capital to
invest in the channel. This can impact
the long term growth of this
organisation.
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(Groşanu and et. al., 2015).
 Another strengthening point that came
in front of Man Group Plc is marketing
department of Go To Market strategies
for its products. Also, the third strengthening aspect that
came in front of Man Group Plc is
superb performance among various
new markets. Basically, company has
taken into consideration of various
expertise that has helped firms in
entering new market. Including this, it
is said that this company has expanded
company's revenue stream through
focusing diversify the economic cycle
risk in the markets it operates in.
 Need greater interest while relating to
investment when it comes to enhance
the number of advancements for the
business company. Given the size of
extension and various geologies the
organization is wanting to venture into,
Man Group Plc needs to place more
cash in innovation to coordinate the
procedures no matter how you look at
it. At this moment the interest in
innovations isn't at standard with the
vision of the organization.
Opportunities:
 Te primal opportunity that came in
front for Man Group Plc is to start
performing business among different
sectors. Also, low inflation rate within
market through developing the
sustainability would directly enable
company in enhancing it's creditability
through offering clients with loan and
advices considering lower interest rate
offered to consumers of Man Group
Plc. Another crucial opportunity that came
in front of Man Group Plc is that, new
taxation policy can significantly impact
Threats:
 Primal threat that came in front for Man
Group Plc is rising pay level, which
impacted upon company's productivity
and profitability at the same time. Rise
in competition within the market has
impacted Man Group Plc's business
(Hillary, 2017).
 Additionally, it is said that changing
buyer purchasing conduct is likewise
viewed as a danger for Man Group Plc.
Since, there outlook has moved to
changed online channels where
organization could successfully
decrease the venture done on new
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the way of doing business and can open
new opportunity for established players
such as Man Group Plc to increase its
profitability. Here, it is said that after
Brexit, Britain's economy will be
considered as an open market, where it
will be required by the company to
improve the performance level in much
effective and in efficient manner as
well (Lee, 2017).
physical framework and spotlight on
different production network model.
 Various laws in relation to liability in
various nations are extraordinary and
Man Group Plc might be presented to
different obligation claims given
change in approaches in those business
sectors.
TASK 2
Evaluation of the importance of carrying out PESTEL Analysis of Man group plc
PESTEL is important for an organisation as it help firm in getting know the external
environment and also help firm in analysing the market. It also help firm in achieving its goals
and objectives on target time. PESTEL analysing tool specifically aid the organisation in
studying impact of different organisation which will increase the chance of profitably of
organisation ,it will also reduce the chances of conflicts with the help of establishing effective
communication between employees. The chances of uncertain events will also decrease because
of this analysis. This is because it identify the different treats which can arise in future because of
external environment.
Away with this, it is said that PESTEL examination assumes an extraordinary job in the
development of a business. Regardless of whether it is a development of a product offering or
opening another organization in another area, PESTEL investigation is a key in making systems
and arranging. In present context, Man Group Plc is looking forward to expand it's business
where it will be required by company to examine the external environment. This is where, it is
said that Pestle analysis would lead company to examine all the different factors and it is
important because, this tool consists of different factors, which has already been discussed above
and there are number of modifications within existing operations are required to be made by this
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company (Moroni, Arruda and Araujo, 2015). The accompanying focuses approve its
significance:
 Regardless it is a start-up or a built up association, PESTEL examination can help each
entrepreneur in recognizing noteworthy changes among different elements like
economical, political, technological, social, legal and environmental. Basically, PESTEL
examination is particularly cost effective in nature, through conducting additional
program which may lead an organisation to consider both feedback along with the input.
 It helps organizations doing strategic planning to expand their businesses. In present
context, it is said that this analysis would lead company to gain competitive
advancements where analysis in relation to different factors like political and so on.
 Also, it is said that considering PESTLE analysis done on broad sense, may lead Man
Group Plc in reducing the use in relation to marketing plans, specific products, along with
the customer relationships as well.
 Any office in the efficient records, deals, and showcasing can be controllable from inside;
as you can place more individuals in deals to produce the income. A the end, these
outcomes rely upon the individuals working inside. Be that as it may, outer variables like
technological, economical, political, environmental, social and legal are existed and will
keep on existing without your info. This is the place PESTEL investigation assumes an
incredible job.
TASK 3
Using the PESTEL Framework to analyse the external environment of Man Group plc
PESTLE Analysis:
Political Factors Affecting Man Group plc (Man): Liberal trade policy agreement
between the countries has given the opportunity for Micro Focus to enter into new markets and
increase its sales. Government has also been making policies in support of automation industries.
Although, strategic planning and policy formulation is imperative since the other big firms in its
industry may have the same agenda (Prajogo, 2016).
Economic Factors Affecting Man Group plc (Man): Economic stability in the
developed countries has resulted in stable performance of Micro Focus over the years. Factors
such as low inflation rate and increasing disposable income of the people has given the
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opportunity for Micro Focus to target more and more customer segments and expand its
customer base. Although, increasing pay-levels in China can increase the costing of the company
and hence badly affect the profitability of Man Group plc (Man).
Social Factors Affecting Man Group plc (Man): Changing trends of consumer
behaviour towards leisure and high standard of living provides the opportunity for Man Group
plc (Man) to diversify its product categories and enter into new revenue streams. For example,
increasing investment in innovative computer gaming can increase the revenue and sales.
Strategically planning customer service and quality customer satisfaction is another opportunity
that lies ahead for Man Group plc (Man) (Saleem, 2015).
Technological Factors Affecting Man Group plc (Man): Increasing automation in
businesses has paved way for Man Group plc (Man) to make more products which are helpful in
automation of business' processes. Huge amounts have been invested by the company lately into
the online platform which has opened up a new sales channel. In the coming years, the company
can exploit this opportunity to increase its market share. However, technological advancements
made by the competitors in their products could prove to be a serious threat in the future.
Environmental Factors Affecting Man Group plc (Man): With the increasing demand
for eco-friendly products, Man Group plc (Man) is presented with an opportunity to make
environment friendly products and increase its sustainability standing. Increased availability of
recyclable products makes it possible for the company to use such materials in the packaging of
its products that are recyclable.
Legal Factors Affecting Man Group plc (Man): It is very important for companies like
Man Group plc (Man) that deal with a huge amount of user data to make sure that the privacy of
the users is not jeopardised. It gets very tricky for Man Group plc (Man) to protect itself from
lawsuits since the company operates in many countries and each country has its own set of rules
and regulations with respect to data privacy and product safety. Electronic waste disposal
regulations that have been set by many countries with different terms is also something that the
company needs to take care of. Thus, it is imperative for Man Group plc (Man) to be aware of
what is legal and allowed within the territory in which it operates (Virglerova, Dobes and
Vojtovic, 2016).
Hence, these are said to be some of the crucial elements that are required by Man Group
plc to consider while expanding business within today's dynamic nature. Here, it is said that
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economic and all the other factors has impacted upon this company's performance in different
ways and at distinctive positions. This has helped Man Group plc in attaining different range of
goals and objectives. Also, it is must for this company to hit different targets and considering
Pestle analysis it is said that, it becomes easy for this firm to look into different aspects and take
decisions accordingly. This could be understood with a good example of proper utilisation of
Pestle analysis, where Man Group plc is looking forward to examine the chances of new
developments within the firm. Here, with the help of PESTLE analysis, Man Group plc could
effectively improve the overall awareness of potential threats.
CONCLUSION
With the help of above mentioned report, it is being concluded that performing analysis
of external environment may lead a business organisation to reach to the whole new level. It
helps in enhancing the decision making process of a company, which may lead to enhance the
profit margins of firm in much effective and in efficient manner as well. Also, it is must for a
company to understand the importance of measuring the external environment as it would lead
the company to gain competitive advancements through considering different aspects like
political, social, economical, technological, legal and environmental as well.
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REFERENCES
Books and Journals
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Belás, J.,and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. Economics and Management.
Breckova, P., 2016. Family Business in the Czech Republic.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Groşanu, A., and et. al., 2015. The influence of country-level governance on business
environment and entrepreneurship: A global perspective. Amfiteatru Economic
Journal. 17(38). pp.60-75.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Moroni, I., Arruda, A. and Araujo, K., 2015. The design and technological innovation: how to
understand the growth of startups companies in competitive business
environment. Procedia Manufacturing. 3. pp.2199-2204.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Virglerova, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public . (26). p.78.
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