Business Environment

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