Business Environment

Harvard Style. Give 6 examples of each PESTEL factors and analysis two of each six please.

BUSINESS
ENVIRONMENT

EXECUTIVE SUMMARY
Business environment is the sum total of then internal and external factors which influences the
business and its operational activities. These factors affects the functions of the company and
how they work for the directly and indirectly for company. This assignment is in the context of
Barratt Developments PLC which is the top leading company in the property developments in
UK and it was founded in 1968. This report is going to reflect the structure of company and how
it is governed which includes the history of company and the structure of company and for this
company reflects the hierarchical structure and describes the interrelationship between the board
of directors and stakeholders. It also evaluates the importance of PESTLE analysis because it
helps in strategic planning, marketing planning and research reports. Moreover, PESTLE
framework is used in order to analyse the factors which put positive and negative impact on it.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Examine how your chosen company is governed and structured....................................................4
Overview of chosen company including its history and the organisational structure. How is
the company managed nationally, and/or internationally..........................................................4
History of Barratt Developments PLC........................................................................................4
Discussions of how the company is governed. When it is operating at international level, then
they have more scope of working and this is effective for conducting operations.....................5
TASK 2............................................................................................................................................7
Importance of PESTLE analysis and why it is important for business to carry it......................7
TASK 3............................................................................................................................................9
PESTEL framework to analyse the external environment...............................................................9
Make a list of the Political, Economic, Social, Technological, Environmental and Legal
(PESTEL) factors that influence the environment of Barratt Developments PLC.....................9
Influence of different external environment factors on operations of Barratt Developments
PLC...........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is a collection of two factors like internal and external which
affects the operational activities of an organisation. Internal factors include employees,
organisational culture, strategy for success and many more whereas external factors include
suppliers, investors, customers, political factors and many more. Hence, every kind of business
organisation need to aware about any changes which takes place in the business environment as
it helps them in achieving success and growth. For this, they need to conduct proper research
which helps in reducing the risk factor (Aithal, 2016). This report is in the context of Barratt
Developments PLC which is one of the largest property development company in the UK and
operating a network of over 30 divisions. Company was founded in 1958 by Greensitt Bros. But
later controlled by Sir Lawrie Barratt. 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.
TASK 1
Examine how your chosen company is governed and structured
Overview of chosen company including its history and the organisational structure. How is the
company managed nationally, and/or internationally
Barratt Developments PLC is the organisation dealing in residential property
development working in UK. This association has network in around 30 divisions. This
organisation was established in 1958 and named as Greenshit Bros. Barratt Developments PLC
have head quarter in Coalville, UK founded by David F. Thomas. This organisation operates in
US as well. Organisational structure of Barratt Developments PLC is hierarchical through which
all the directors are at top level and remaining workers are on subordinate level. This
organisation have presence at international level as well, hence they have wide scope of working
(Bah and Fang, 2015).
History of Barratt Developments PLC
This organisation was established in 1958. In 1968, this association grows with lower rate
and listed in London Stock Exchange. In 1970, this association come with 3000 new houses in
Scotland and England. In 1978, Barratt Developments PLC use television advertisement for the

first time. In 1979, they build 10000 new houses. In 1982, they come with first housing
development in London Docklands. In 1985, they come with new range of luxury houses and
prime minister purchase house in London. In 1995, they come with premier collection of houses
in villages at Northampton. In 2014, 400000th home through which commitment to sustainability
can be managed (HISTORY, 2019).
Discussions of how the company is governed. When it is operating at international level, then
they have more scope of working and this is effective for conducting operations
This association is governed by board of directors which are working under specific
team. There is hierarchical structure, so they are working in appropriate manner. When there is
change in working policies, then it is relevant for people to understand the changes properly and
communicate to workforce (Board of Directors, 2019). There are board of directors, executive
committee, regional managing directors.
Chairman John Allan
David Thomas Group CE
Steven Boyes Chief operating officer and deputy chief
executive
Jessica White Chief Financial officer
Richard Akers Senior independent director
Nina Bibby Non - executive director
Jock Lennox Non - executive director
Sharon White Non - executive director
Tina Bains Croup company secretary
When Barratt Developments PLC is operating at international level, then it is important
and relevant to understand the changes which are taking place in demand of consumers and in
external environment through which better services can be provided. In housing sector, there are

many changes which are taking place such as change in interior or décor, etc. due to which
consumers are not able to determine changes properly. With change in working environment,
there is alteration in operations as well, so it is important and relevant to determine changes.
While working in more than one country, scope of working improves because when consumer
are from different geographical region, then it is essential to evaluate their preferences (Belás
and et. al., 2015).
With stakeholders and shareholders, relations of board of directors are good. It is
important and significant for managers to understand the demand of different stakeholders and
provide them appropriate services accordingly. Shareholders wants proper books of accounts and
timely dividend with the help of which they are satisfied and does not withdraw their stake from
Barratt Developments PLC. While employees proper working environment, so policies have to
be framed with which working environment is specified. If proper training program is organised,
then it will be easy for keeping them satisfied and maintain long term relations with them.
Customers want best home building services which are as per their budget and time bound, so
main focus of managers of Barratt Developments PLC must be punctuality and quality in
services.

TASK 2
Importance of PESTLE analysis and why it is important for business to carry it
PESTLE analysis is a framework which is useful in order to analyse the external factors
which influences the business and its operations. It is important for companies to conduct it
because it helps in analysing and monitoring the various factors of environment who put drastic
impact on it. Therefore, it is used to identify the threats, weaknesses and risk which can become
barrier in the success of business (Deasy and et. al, 2016). This framework is important as it
helps in decision making which is useful in order to implement the changes and understand it.
Moreover, it also influences the marketing and relationships that a company need to develop at a
time of change and these factors also useful in making better decisions. Importance of PESTLE
analysis are as follows:
 Strategic Planning: It is a factor which gets affected by both internal and external analysis
and these factors majorly put impact on it. PESTLE analysis is a framework which helps
in scanning and analysing the external factors. Strategic planning is a tool which helps in
achieving the success and growth for company and smooth running of the operational
activities. This planning helps in reducing the risk factor from the business activities and
this analysis is useful to know the data and facts in order to do effective planning. This
factor is importance for the Barratt Developments PLC as it helps them to plan about
their project strategically and carefully by considering these external factors.
 Marketing Planning: It is the important function of PESTLE analysis as t helps in doing
the marketing planning for business in order to attain success and growth for it. This
element is all about that which market is targeted or the range of customers as it helps in
describing the market conditions to them.
 Business and Product Development: In order to develop and launch the product in the
market, PESTLE analysis is important as it helps in identifying the various factors which
can put positive and negative impact on the company. These factors also describe the
requirements of business in order to make changes or develop them (Evans and et. al.,
2017).
 Research reports: It is the factor which should be consider while developing the product
and before launching it as research reports describe the factors which affects the business

and its functions. This factor also track the performance of company and analyse the
positive and negative impact of it. These factors are useful of the Barratt development
PLC as it is helpful for them in order to achieve success and growth for an organisation.

TASK 3
PESTEL framework to analyse the external environment
Make a list of the Political, Economic, Social, Technological, Environmental and Legal
(PESTEL) factors that influence the environment of Barratt Developments PLC
PESTLE analysis is done to collect information about external market components which
affects business operations. It is important for managers of Barratt Developments PLC, to
determine the ways through which they can deal with it (Barratt Developments Plc PESTEL &
Environment Analysis, 2019). When there is change in policies, then it will be easy to get
positive outcome wile operating in industry. Pestle analysis for Barratt Developments PLC is as
under-
Political factors: These factors plays an important role in order to analyse the factors
which can impact its profitability in a certain market. As change in government impacts the
political stability of the country which influences the laws and regulations. In order to achieve
the success in the dynamic Personal & household goods industry which can increase the
systematic risk in the political environment. Moreover, the pricing regulations also gets fluctuate
by the changes takes place in the political conditions (Wood and Logsdon, 2017).
Economical factors: These factors include the competitive norms and regulations which
impact the competitive advantage of the firm. As in the context of Barratt Developments PLC,
they can use the economic factors of country such as high inflation rates which influences the
host industry and efficiency of financial market which needs to raise the capital in the local
market.
Social factors: Social factor talks about society's culture and social component with
which society is surrounded off. When there is change in change in social component, then it
affects business operations of Barratt Developments PLC as well. This change might due to
demographical changes and increment in skills of workers. People have difference in educational
background as well due to which their demand changes. Housing building occur in leisure
interest and lavish living standard (Hillary, 2017).
Technological factor : In technological changes, there is frequent up- gradations in
technique sector such as updation of machinery, change in painting techniques, etc. due to which
managers of Barratt Developments PLC have to change their working style. This is the sector

which affects operations in negative manner because with new technology, there is improvement
in satisfaction of consumers because services are if fine quality (Saleem, 2017).
Legal factor: In legal factor, there is discussion about laws and regulations such as
copyright, trademark, employment act, etc. with which operations of Barratt Developments PLC
will be completed within specified time. In case of change in legal factors, it is essential for
Barratt Developments PLC to alter working style so there is less interference of legal parties.
Environmental factor: When there is change in climate and weather of some specified
location, then business operations of Barratt Developments PLC also gets affected. In order to
access changes properly, it is essential to scan the external climate and then frame policies for
building houses. There is use of renewable sources of energy which is best for environmental
protection as well (Kljucnikov and et. al., 2016).
Influence of different external environment factors on operations of Barratt Developments PLC
Above mentioned external market factors have impact on operations of Barratt
Developments PLC as well. They does not influence operations but indirectly and if they are not
considered, then organisational growth is not in specified direction.
Political factor- If there is change in political party, then their policies also gets changed,
this affects operations of Barratt Developments PLC as they can not operate with same policies.
If pricing regulation is changed by government, then payment mode have to be changed by
Barratt Developments PLC because they have to operate in specified format. In UK, there is
political stability, so this gives positive impact on organisational growth and development
because government policies doe not get changed frequently.
Economical factor- There is high rate of inflation in UK due to which prices of houses
and building remains uncertain. This might affects profits of Barratt Developments PLC
negatively. Interest rate of bank is also uncertain, so it is not easy to raise money from external
sources as well.
Social factor- There is difference in demand of consumers in context of house or
construction line, hence it is not possible for managers of Barratt Developments PLC to
determine what is demand and this increase cost. Rate of immigration in UK is high so people
does not want to invest money in houses and building. This also affects profits negatively
(Oriesek and Schwarz, 2016).

Technological factors- In UK there are many changes in technology, so it is easy for
managers of Barratt Developments PLC to perform activities in appropriate manner. When there
is proper change in activities, then it is essential for people to determine changes and improves
quality of services (Quinlan and et. al., 2019). When there is use of automated machines, there is
reduction in labour work and operational efficiency can be improved. This improves consumer
satisfaction and assist in completing task within specified time.
Legal factor- There is change in employment laws of UKL due to which managers of
Barratt Developments PLC have to alter their activities. When there is change in law, there are
possibilities of mis communication among workers if it is not communicated in better manner. If
information about organisation is not communicated properly, then it affects stakeholder as well
and organisational growth might get in negative direction.
Environmental factor- In UK, there is no frequent change in climate, hence it is easy to
conduct construction work and projects are completed within specified time, so client
satisfaction can be achieved as services are appropriate and specified. In UK managers of Barratt
Developments PLC can use eco- friendly techniques with the help of which environment
protection is possible. So while working and taking acre of profits and revenue, corporate social
responsibility is also get concern (Prajogo, 2016). Hence this assist in improvement in operations
of Barratt Developments PLC.

CONCLUSION
From the above discussion it is summarised that business environment is a frequently
changing environment which is useful in identifying the performance of business and its
opportunities. For this, it is described the structure of company and how it is managed and
governed which includes the organisational structure and company is governed by the BOD.
Moreover, it also describes the importance of PESTLE analysis which is useful in strategic
planning, business and product development and many more. 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.

REFERENCES
Books and Journals
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and
Social Science. 4(1).
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Deasy, S. and et. al, 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Evans, S. and et. al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment. 26(5). pp.597-608.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kljucnikov, A. and et. al., 2016. The entreprenurial perception of SME business environment
quality in the Czech Republic. Journal of Competitiveness. 8(1).
Oriesek, D. F. and Schwarz, J. O., 2016. Business wargaming: securing corporate value.
Routledge.
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.
Quinlan, C. and et. al., 2019. Business research methods. South Western Cengage.
Saleem, M. A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Wood, D. J. and Logsdon, J. M., 2017. Theorising business citizenship. In Perspectives on
corporate citizenship (pp. 83-103). Routledge.
Online
HISTORY. 2019. [Online]. Available through: <https://www.barrattdevelopments.co.uk/about-
us/history>.
Board of Directors. 2019. [Online]. Available through:
<https://www.barrattdevelopments.co.uk/about-us/leadership/board-of-directors>.
Barratt Developments Plc PESTEL & Environment Analysis. 2019. [Online]. Available through:
<http://fernfortuniversity.com/term-papers/pestel/nyse4/6603-barratt-developments-
plc.php>.