Barratt Developments plc: Governance, Structure, and PESTLE Analysis

This report provides an overview of the governance and structure of Barratt Developments plc, a residential property development company. It discusses the company's board of directors, their responsibilities towards shareholders, and their efforts towards corporate social responsibility. The report also highlights the importance of PESTLE analysis in analyzing the external business environment and explores the political, economic, social, technological, environmental, and legal factors that can affect the company's operations. Overall, the report showcases the company's financial performance, stakeholder management, and future growth opportunities.

BARRATT DEVELOPMENTS PLC

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................4
TASK 1 .....................................................................................................................................................4
TASK 2......................................................................................................................................................5
TASK 3 .....................................................................................................................................................6
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Barratt Developments plc is considered to be one of the largest company operating in the
residential property development operating in over 30 division. The company was founded by
Greensitt bros in the year 1958, but later it was controlled by Sir Lawrie Barratt. The company
was originally based in Newcastle but it is now located in Coalville. In this report the company
governance and structure is being discussed and how the company board of director are
responsible toward the shareholder of the company.

MAIN BODY
TASK 1
Barratt Developments plc governance and structure
The company is being founded in the year 1958 and te company got listed on the stock
exchange on the London Stock Exchange in the latest net 1968, which is a big deal because this
will help company generate large profits and the finance would be available easily as the
company could raise money through public issue. Barratt Developments plc income of the
company in the year 2018 was $866.74 million, which means that the company is performing
well financially. (Fozer, 2017)
The board is collectively responsible for the long term success of the company. Barratt
Developments plc is well aware about the current environment situation and how they can
contribute to the betterment of the degrading environment. The board has also considered CSR
activities to build a good brand image. In the company the board reviews the employees
composition to make sure that proper balance of skills and knowledge is available in the
organization so that the company can discharge their duties efficiently. The company’s board has
also shown concern about the risky environment in which they are operating, and has devised
there strategies so that they can handle these risk without affecting the organization work. The
board has discloses all the strategies and work they carry out to the shareholder through
communicating to them in the annual general meeting held at least once a year. The board should
maintain equal amount of executive as well as non executive director in the board composition as
stated in the UK corporate governance code. The company should also maintain the committees
required by the code of corporate governance like remuneration committee to decide the salary
of the executive director of Barratt Developments plc, risk committee to assess the risk the

company is facing. These corporate governance is seen to be there in the Barratt Developments
plc and there shareholders and stakeholders both are seem to be happy with there operation.
The structure of the board of Barratt Developments plc is given below:
1. John Allan- chairman
2. David Thomas- group chief executive
3. Jessica White- chief financial officer
4. Richard Akers- senior independent director
5. Nina Bibby- non executive director
6. Sharon White- non executive director
7. Tina Bains- group company secretary
8. Steven Boyes- COO and deputy chief executive
The board has also maintained good relation with all its stakeholders.( Aithal, 2016) The
customers of Barratt Developments plc are seem quite satisfied with the company’s operations.
The company has maintained good communication with their customer and has taken the
feedback of their customer to improve their services. These stakeholders must be kept satisfied,
otherwise they might exert pressure on the company and this might affect the company’s
operation which might affect the company’s growth.
TASK 2
IMPORTANCE OF PESTLE ANALYSIS
PESTLE analysis means the analysis of the political, economic, social, technological,
environmental, and legal factors. PESTLE analysis help both the established as well as new
organization by telling the business the possible and foreseeable future changes and the
opportunities, this help the company like Barratt Developments plc in planning and organizing
their strategies so that in the long term they can stabilize their growth and profits. The following
are the importance of the PESTLE analysis given below
COST EFFECTIVENESS
The only cost for doing PESTLE analysis is time and through this analysis the company can
decide whether they should diverse in a particular market or not. This will save cost as the
company will only invest if the market is feasible for them. Also the cost incurred for PESTLE
analysis is negligible which makes it one of the best methods of analyzing external business
environment.
DEEPER UNDERSTANDING

With the help of the PESTLE analysis the company can notice all the direct and indirect
environmental activities which may otherwise be gone overlooked. The factors like technological
can highly affect the company’s operation this can be analyzed by using the PESTLE analysis.
The analysis help in deeper understanding of such concepts.( Perera, 2017)
ALERTNESS DEVELOPMENT
Through PESTLE analysis there can be a detailed examination of the changes and the company
can devise such plans which will help the to maximize their profits. With the analyze not only
the industry but they can also focus on the particular market in which they want to invest there
funds or expand their business. If the analysis is not done the company can be hit by unexpected
threats.
EXPLOIT OPPORTUNITIES
The various opportunities that comes in the external environment can be accessed only by using
PESTLE analysis and these opportunities can be gained by the company and make the first move
in the industry to gain the first mover advantage. PESTLE can be used if the company want to
flesh out the market or they want to know which audience the company can target.( Rastogi and
Trivedi, 2016)
TASK 3
PESTLE ANALYSIS
POLITICAL FACTORS
These factors can affect the company in its long term profitability so these factors should be
taken seriously. The factors which can affect the operation of Barratt Developments plc are the
political stability of the country, tax regulations, health and safety rules, employment legislation
etc., so these factors must be analyzed before entering into any country.( Dimopoulos and Wagner,
2016) The main factor here is the political stability because if the political situations are not
stable then Barratt Developments plc may have to change the way of working every time the
government changes.
ECONOMIC FACTORS
These factors includes both macro and micro economic factors which will affect the operation of
Barratt Developments plc, these factors include the inflation rates, unemployment rates,
exchange rates, inflation rates etc. These can affect the company directly or indirectly as they
affect the consumer disposable income and that in turn affects the demand and supply of the
company. Also, this may affect the price of the Barratt Developments plc products too. These are
basically the risk assessment of the company.
SOCIAL FACTORS

This factors represents the demographic characteristics like the customs and norms of the
population which can affect the working of Barratt Developments plc. These also includes the
change of trend in the customer and thus how these trend change have changed their preference
about the product. Different industry is affected by different social factors. For example change
in the fashion industry would not affect the operations of Barratt Developments plc in any way.
TECHNOLOGICAL FACTORS
These factors have gained popularity in the last decade since the online markets have emerged.
Everything is available on these online apps and websites the customers just have to click once
and there will be a variety of options available to them. Barratt Developments plc should also
implement these technological changes in their organization so that they can also compete with
their competitors and so that they can maintain their market share or otherwise they will be ruled
out of the market. Barratt Developments plc can still improve their technologies in order to
improve there operations. (R.B. and Tricker, 2015)
LEGAL FACTORS
These are the legal laws and regulations which is there in the country of operation, these rules
and regulation must strictly followed by Barratt Developments plc in order to prevent the
company from incurring any fines. This is because if any law is broken there will be serious
legal implication on the company and there will be unnessacary cost to the company. Also a lot
of time will be wasted on these legal formalities
ENVIRONMENTAL FACTORS
The factor the environment by the operation of the company. This factor has also gained
popularity in recent year when there has been concerns raised about the degradation of the
environment.( Yermack, 2017) These factors include global warming, pollution of all types,
shortage of different resource which are provided by the environment etc. These factors also
include the change of weather conditions which may impact the operations of Barratt
Developments plc.

CONCLUSION
In this report we have come to a conclusion the company Barratt Developments plc is
performing excellently and they are following most of the corporate governance, the company is
maintaining the stakeholders very efficiently. The report has shown the importance of the
PESTLE analysis and why PESTLE is needed for analyzing external environment. The company
can improve there technologies so that this will help them in gaining more market share.
Comprehensively the report shows that the company has very good future growth opportunities.

REFERENCES
Books and journals
Yermack, D., 2017. Corporate governance and blockchains. Review of Finance, 21(1), pp.7-31. Tricker,
R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.
Dimopoulos, T. and Wagner, H.F., 2016. Corporate Governance and CEO Turnover Decisions. Swiss
Finance Institute Research Paper, (12-16).
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external risks in
construction projects. International Research Journal of Engineering and Technology
(IRJET). 3(1). pp.384-388.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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).
Fozer, D and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process
alternatives. Journal of cleaner production. 147. pp.75-85.