PESTEL & Porter's Analysis for Entertainment

This assignment examines the influence of PESTEL and PORTER's analysis on the success of an entertainment media business. Students are tasked with identifying key factors within each framework (political, economic, social, technological, environmental, legal; threat of new entrants, bargaining power of buyers/suppliers, threat of substitutes, rivalry) and demonstrating their impact on revenue generation, brand value, subscriber growth, and overall business performance. The report utilizes real-world data and examples to illustrate these concepts.

Business organisation and
environment in global context

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Information on the selected business organisation......................................................................1
TASK 2............................................................................................................................................3
Business environment ................................................................................................................3
TASK 3............................................................................................................................................5
Analytical approaches.................................................................................................................5
TASK 4............................................................................................................................................6
Application of appropriate data ..................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business organisation refers to two term which cannot be used in alternative way as
Business is an legal operation that are made up for union of persons that shares common legal
and natural purpose used much various skills to achieve pre determined objective. Other side of
coin organization is a legal body of multiple individuals that have collective objectives and
connected to external environment ( Baker 2012). Business organisation are come up with may
types such as non profit, corporations, government also partnership and educational organisation.
This report has been concerning with globalization which refer to the interaction of countries and
easy flow of international money, ideas and culture. Global business means that limitless
function of trade across boundaries. The Netflix is the American entertainment company framed
by Reed Hasting and Marc Randolph in august 1997 in Scotts valley, California. This company
has expanded to film and television production also in online distribution sector world wide.
Now a day Netflix dreaming to expanding his business in Sweden area hence this report has
covers the entire out lay of company its affecting factor such as PESTEL and PORTER's 5 along
with this some data with example will be used.
TASK 1
Information on the selected business organisation
The entire report is based on Netflix which is an American entertainment company
coined by Reed Hasting and Marc Randolph on august 1997 in Scott Valley California. This
company has specialization in providing streaming media and video on demand online or DVD
through mail, In phase of 2013 Netflix has expanded their roots in to films and television
production also online distribution its headquarter has located in Los Gatos, California. In very
initial level this business modal involves DVD sales and rental. The company has expanded in
2010 internationally with streaming made available in Canada. In October 2017, Netflix had
around 109.25 million subscribers world wide ( Birkinshaw and Tung, 2011). Netflix is works as
an entertainment and media practices industry which address both the challenges and
opportunities framed by digital transformation. This organisation works with world wide range
of clients and this sector includes television, music, film and business information or gaming.
The entertainment and media firm provides data and narration on focused thing. Media has
designed to help businesses to understand how the conditions and environment are changing in
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which the organisation has acting. Now a days people are spending more money in the
entertainment and media industry that helps in providing information of strategic business
planning and decision.
This company has their own importance as entertainment is a from of activity that grab attention
and interest of audience that gives delights (Caligiuri 2012). It can be said that this type of
industry is a mixture of the digital advanced techniques and business operation through media
many organisation are working it also helps in spreading awareness for some prominent things
and general or specific information that helps society. Media coverage felicitates government in
order to creates or generates some special facts which are favourable for nation. This process of
entertainment are coming from old times when people doesn't have advance techniques to run
business Storytelling. Music dance and different kinds of actions exist in all culture.
Entertainment industry records and sells the products among citizen. In present condition the
Netflix is thinking to expanding their business in Sweden area where they suppose to establish
entertainment industry and producing their films and television serials on them. Expanding
business helps Netflix to grab more customers demand through they will enjoy goods numbers of
subscribers on their channel (Cavusgil 2014). increasing in audience provides Netflix to earn
profits and generate sound revenue. By expanding business in Sweden area they will creates their
brand value. The main objective of expanding business for Netflix is to creates awareness for
their production in Swedish persons and boosting subscribers on its channels on online stage
where audience can listen and see their wanted songs films and many more things. The major
reason behind expansion of business is to rooting industry's branches in others places which
helps organisations grow rich and go long in future. in Every aspect of the media industry has
some advantages as
 people will have latest news in short time through digital media without
distancing hurdle.
 It facilitates education to auditions.
 It offers people to showcase their hidden talents.
 This helps in boosting knowledge of children.
 It is great medium in promoting some news or knowledge in mass consumers.
 This serves good sources of entertainment.
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TASK 2
Business environment
Environment of a country is directly affect on the its objectives, policies and activities.
Business environment is divided into two factors such as internal and external and they both are
affect it in positively and negatively. It is very important of a new organisation to maintain a
relationship with these factors because they can help them to get success in future easily.
Internal factors
Theses factors are directly impact on decision making plan of the organisation as well as
their production and services too (Cohen 2014). Internal factor can be control by perfect
planning and strategy of the organisation. There are some internal factors are-
Customers- Customers are the last buyer of the product and they impact on its
production, manufacturing and supply as well. A organisation is always established to provide
their products and services to customers as well as provide them higher satisfaction.
Employees- A organisation can only get success when employee provide their
contribution and services for its success. They are the key strength of the firm whose efforts and
strategies make a successful business in the market. Organisation recruit new candidate
according to their need and provide them specific training and learning to enhance their
interpersonal skills and capacity of working ( CraneSpence 2013).
Management- management in a organisation is provide them effectiveness by implement
their activities, manage operation activities, provide opportunities to their employees as well as
recruit effective candidate according to organisation need. Management of a firm is like its take
care who provide their services time to time.
Business regulation- This is like rule and legislation which is regulated in the company
to provide effectiveness and positive environment in it. This process is highly improve their
activities and unnecessary activities that can negatively affect its procedures.
External Factor
Theses factors are affected from the external environment of the organisation and they
are beyond to control. For this internal factors of the organisation can only make some plan to
protect their business from its negative effects. To understand them briefly PESTEL analysis
helps effectively
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Political factors- In this process many government policies are affect on business
activities as well as their operations and management. This is very general that political factor
have power to change its results. In this process government regulate new policies which is
related to foreign trade, monitory policy as well national income of the particular country.
Economical factor-In this factor organisation need to understand that their products and
services can not affect negatively on the economy (Geppert 2016). This is includes growth of
economy, Health and safety of people as well as customers demand and product supply process.
Economical factors can be effect in positively and negatively but it is all depend on the
organisation that how can they react in different situations-
 Opportunities- In a economy, customers are provides opportunities to the organisation to
make their own importance and goodwill in the market. This is all about how effectively
they provide their services on customers demand.
 Threats- They are the rivalry of the organisation who effect its products and service
through their own services. In this process price factor highly impact on customers
demand.
Social factor- This is all about customers demand according to new trend and their
culture that they follows. Netflix is provide entertainment service to their customers, so need to
understand what type of products customers wants to purchase from them. Custom,er of the
economy is highly require products according to the culture they follow.
Technological factors- Now a days business needs more effective and innovative ideas
to reach on their targets easily. In this term, technology helps for innovative ideas in
manufacturing and supply of products. For it, Netflix need to stand with those advance ideas and
provide their services through this. For it, they can use networking, social media and these ideas
helps them to expend their business easily in new country (Gunz, Mayrhofer and Tolbert 2011).
Environmental factor- This is all about how customers demands change according to
environment of the country. This factor can not as much affect on their services. In this process
environment of the economy is impact on their policies and their strategies that organisation
make for their future objectives. Their impact is production, manufacturing as well as supply of
them according to customers need which can change on timely bases.
Legal factors- In a businesses organisation, Government of the country is also provide
their services through their rules and law. They also provide some legislation to employee's right
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to management as well as organisation's authority on their employees. Netflix needs to use rule
and regulation in their company because this is the only thing which can improve their goodwill
in new market through their impactful services.
TASK 3
Analytical approaches
In this process organisation understand various policies of the country that can affect on
their business in future. This is use to evaluate their strength and weakness that can be affect
their business in future. In this process, external factor of the organisation can affect their
policies because new organisation don not easily understand their advantages and disadvantage
as well as they take a lots of time to build trust in their customers mind for a long time period.
This process can be easily understand through Porter's five forces
Industry rivalry- They are the competition of the organisation who provide same quality
of product in the market. They are highly impactful on the new organisation when tghe6y newly
established in the market to provide their services as well (Hoon, Jeung and Hyoung 2011). To
protect a organisation from theses threats they management of the organisation need to promote
their business and product through various techniques because if customers understand their
organisation services and products then they can easily show their interest to purchase their
products easily.
Bargaining power of customers- For a organisation, it is very important to make their
costing effective and low that all the customers of the economy purchase their products without
any trouble. Cost factor is easily attract on customers but company need to maintain flexibility
their cost that they can reduce it according to customers demand. But it is very important for
them to get full costing of their products otherwise they will face loss in future.
Bargaining power of suppliers- They are they service and product provider to the
customers. They work according to customers demand and for this they analysis on market and
its demand because this is very important for a organisation to provide services where it is
needed. This will be opportunity for the organisation to provide their services at a place where
number of rivalry are very less and demand of customers are very high for a specific product.
Threats of substitute- This is about the same products which is provided by another
organisation but at lower quality. All the organisation are known as per their quality of product
or their cost factor. In substitute product, other organisation provides same products but which is
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not includes the quality and sell them at lower cost. This type of produce negatively affect on the
organisation goodwill and reduce their market value.
Threats of new entry- In this process when a firm is established in the market, this is
very important for them to build appropriate relation with new customers. For this, they manage
various activities to promote their product and service to their customers. But in this case If new
organisation established their business in same economy and provide same product they can be
their big competitor or threat to manage their activities in same manner for future.
TASK 4
Application of appropriate data
The company is thinking to expand his business in other places like SWEDEN and it is
mandatory for NETFLIX to know about the strength which he can use in expanding business in
effective way. Appropriate data is used to implement in planning by the senior officer in firm.
The application is as follows related to data as:
Effectiveness: The NETFLIX is expanding his business in SWEDEN so it is needed
concept to know that whether the company is effective in their performance or not. Effective
working in company help them in order to attain their goal and objective and thus receiving such
on regular basis make firm to expand in great way. SWEDEN is place where the working criteria
is different so it is required to be effective to work out and to make themselves stable in their
market ( Kankaanranta 2011).
Demand: Demand can be increased through using the better promotional activity in
SWEDEN. The demand of DVD's is possible when NETFLIX is going to advertise himself in
proper manner as what the company sells and what the services they have for customers.
Although the company is already a profound company, so it will not become so hard for them to
have demand for their DVD's and CD's.
Productivity: The productivity of entity is based on the demand and what customer need
and want from the firm exactly. Productivity of firm increases when the employees of
organisations working in effective way, thus it is the responsibility of manager and leader to
motivate them on time to time so that they can bring improvement in their work which will
directly help in increment of productivity.
Strategic: The NETFLIX is serving the society with his products from last so many years
and they come in Film production from 2013. company has a great strategies to serve the million
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of people but when it come to expansion of business the strategy should be of cut throat so that
they can face the competition in SWEDEN. Strategies are related to producing a effective plan
and implementing that in perfect way help in getting the aim of companies.
Coordination among departments: The best thing a NETFLIX is having that there is
coordination can be see in between the departments of company and thus it help directly in
productivity of firm. Coordination among division although reduces the chance of conflicts and
employees work as one and therefore it also increases the performance level of worker as well.
CONCLUSION
From the above report it has been concluded that Netflix is supposing expand their
business in Sweden area where they have seen some opportunity as generating revenue and
earning profit, creating brand value and boosting the numbers of their subscribers. Cause this is
entertainment media industry so it has own importance. This report describes PESTEL and
PORTER's analysis where these element are made affect on their business and gives suitable
data with example along its applications.
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REFERENCES
Books and Journals
Baker, J., 2012. The technology–organization–environment framework. In Information systems
theory (pp. 231-245). Springer New York.
Birkinshaw, J., Brannen, M.Y. and Tung, R.L., 2011. From a distance and generalizable to up
close and grounded: Reclaiming a place for qualitative methods in international
business research. Journal of International Business Studies. 42(5). pp.573-581.
Caligiuri, P. and Tarique, I., 2012. Dynamic cross-cultural competencies and global leadership
effectiveness. Journal of World Business. 47(4). pp.612-622.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.
International business. Pearson Australia.
Cohen, B. and Kietzmann, J., 2014. Ride on! Mobility business models for the sharing economy.
Organization & Environment. 27(3). pp.279-296.
Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global context.
Geppert, M., Matten, D. and Williams, K. eds., 2016. Challenges for European management in a
global context: Experiences from Britain and Germany. Springer.
Gunz, H., Mayrhofer, W. and Tolbert, P., 2011. Career as a social and political phenomenon in
the globalized economy. Organization Studies. 32(12). pp.1613-1620.
Hoon Song, J., Jeung, C.W. and Hyoung Cho, S., 2011. The impact of the learning organization
environment on the organizational learning process in the Korean business context. The
Learning Organization.18(6). pp.468-485.
Louhiala-Salminen, L. and Kankaanranta, A., 2011. Professional communication in a global
business context: The notion of global communicative competence. IEEE Transactions
on professional communication. 54(3). pp.244-262.
Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Trompenaars, F. and Hampden-Turner, C., 2011. Riding the waves of culture: Understanding
diversity in global business. Nicholas Brealey Publishing.
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