PESTLE Analysis Impact on Organisational Responses

The report provides an in-depth analysis of PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis and its impact on organisational responses. It explores how this analysis influences decision-making processes and company policies, as well as the effectiveness of these responses. Recommendations for improvement are suggested to enhance organisational responsiveness.

Contemporary Developments in
Business and Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1. Give a brief overview of the primary external influences to which the organization is subject
and briefly explain the particular importance of each to the organization......................................3
TASK 2.................................................................................................................................................5
1. Analyse its relevance to your chosen organization and how it influences policies and decision-
making within your chosen organization or industry-sector............................................................5
2. Critically evaluate the effectiveness of the organization’s response............................................6
3. (If possible and appropriate) demonstrate some areas for improvement in the response of the
organization......................................................................................................................................8
CONCLUSION....................................................................................................................................8
REFERENCES...................................................................................................................................10

INTRODUCTION
Business is a process which is made by operations of ample number of elements, so that they
can work in appropriate manner and also achieve their goals and objectives along with some
profitability. Where as management is a part of business, which help them in making proper
coordination between different elements, so that they can perform their business and operations in
effective manner and also attain some profitability. The organization which has been chosen for
completing this report is Jaguar Cars, which is a car manufacturing organization and use to provide
their products and services at global level. In this report, a discussion will take place on influence
and affect of external factors on organizational performance and also how much important they are
for organization will get discussed (Alvarez, 2016). Also, for completing second part of the report,
the theme which has been chosen is Customer Relationship Management. Along with this, a study
will take place on relevance of it with Jaguar Cars and how they affect their decision making.
TASK 1
1. Give a brief overview of the primary external influences to which the organization is subject and
briefly explain the particular importance of each to the organization.
Jaguar car is one of the biggest car manufacturing and selling organization of the world,
which have their head quarter at Whitley, Coventry, England. It was founded in 1935 and was
popular as Swallon Sidecar Company till 1945, and after it the name of organization get changed to
Jaguar Cars. In year 2012, Jaguar Car was re owned by Land Rover to form Jaguar Land Rover.
They use to perform their operations in different nations of the world, therefore for them it is very
much important to analyse the external factor of that nation and also their influence on working of
them. Beneath is the explanation of these factors along with their importance for Jaguar Land
Rover :-
1. Political factor : It is associated with government of the nation, as performance of an
organization is very much dependent on stability of ruling party of UK. It is very much
important for Jaguar Land Rover to understand the political conditions of that nation, so that
they can make their strategies and plans according to it only. Government of a nation plays a
vital role in success and failure of an organization, as if the political conditions of a nation is
stable then, it become very much easy for their organizations to perform their business and
attain some profits (Amin, 2014). This all help them in grow and develop their business.
Where as, if the marketing conditions of that nation is not stable then, it poses difficulties for
organizations working in their business environment, and not able them to perform their

operations in effective manner. This all cause to loss to organizations like Jaguar Land
Rover.
2. Economical factor : This is one of the most important factor for an organization like Jaguar
Land Rover. Economic conditions of UK is very good, and also help organizations in
attaining huge amount of revenue along with profitability. As each and every organization at
market place use to perform their business for increasing their revenue and also for
generating some economy for them and for nation also. Therefore, this factor use to
considered as one of the most important for that organization. As if economical conditions a
nation is good and people there are able to earn huge amount of money, then they use to
spend it on themselves. This all help Jaguar Land Rover in attracting ample number of
customers, which will help them in generating revenue from them (Baron, Warnaby and
Hunter‐Jones, 2014). This all also help them in attaining some profitability, so that they can
grow and develop their business in future. Where as, if nation do not have stable economical
conditions, then it leads to decrease in level of revenue generated by them. This all results in
decrease in profitability of organization and nation also.
3. Social factor : For getting success, it is very much important for Jaguar Land Rover to
attract people leaving in society and also provide some benefits to them, so that they start
loving the products offered to them. Therefore, for Jaguar Land Rover, it is very much
important for them to make offers in market place, which will help them in proving benefits
to large number of people. This all lead the organization in attracting ample number of
peoples and also help them in offering products and services which get love from large
amount of people. Where as, if they use to offer products and services which do not use to
pose any type of benefits to society and people living in society, then it become very much
tough for Jaguar Land Rover to sell their products and services to large part of society and
make reduce the profitability of them.
4. Technological factor : In modern era of business, technology is one of the most important
factor, which use to play huge impact on performance and success of organizations which
are performing their operations in business environment. Jaguar Land Rover is auto mobile
organization which use to manufacture and sell their products and service at global level.
Therefore it is very much important for them to study new technologies which they can use
in their cars and also which can help them in increasing number of loyal customers.
Adopting new technologies will lead them in attracting ample number of customers, so that
they can increase their sales and also increase their profitability (Chang, 2016). Where as, if
they are not able to adopt new technologies then it will become very tough for them to even

survive in market and serve their customers.
5. Legal factor : Each and every country have their own set of rules and regulations, which
organizations which are performing their operations in their business environment have to
follow. This help them in making their functioning in a manner, so that they can achieve
huge amount of profitability by it and also increase their market share with clean goodwill.
Jaguar Land Rover use to perform their operations in UK and in other nations, therefore, for
them it is very much important for them to study the legislations of that nation, so that they
can make their strategies according to it (Davidsson, 2016). This all help them in performing
their operations in ethical and legal manner, so that they can achieve their goals and
objectives and also make a healthy goodwill at market place. This all help them in attracting
ample number of customers, so that their profitability can get increased.
6. Environmental factor : Environment is one of the important factor which an organization
have to consider while performing their operations of manufacturing of products and selling
of it. Here, it is very much important for Jaguar Land Rover to understand and read these
legislations, so that they can make appropriate changes in their strategies of manufacturing
and also produce products and services in manner which do not make any type of harm to
environment (Zhao and et. al, 2017). This will help them in increasing their sustainability at
market place and also help them in taking care that they do not get fixed in any type of legal
issues related to environment of the nation. Fixing in such type of issues can harm their
financial conditions along with this, it can cause them ban for life time or for some time.
TASK 2
1. Analyse its relevance to your chosen organization and how it influences policies and decision-
making within your chosen organization or industry-sector.
Jaguar Land Rover is one of the biggest car manufacturing organization of the world, they
use to manufacture luxury cars for their customers, so that they can provide high class products and
services to their customers. Along with providing high class products and services, it is very much
important for Jaguar Land Rover to make proper relationship with their customers, which will help
them in increasing number of loyal customers. For maintaining proper relationship with customers,
they can use Customers Relationship Management, as this is a system which is used by
organizations, for analysing the relationship among the consumers and management of the company
(De Vita and Case, 2016). The software used by Jaguar Land Rover for customer relationship
management is Keytree which is used by joining hands with SV-CRM systems. Customer

relationship management is essential factor for every business organisation which helps to earn
maximum profits by building long term friendly and hostile relations with the customers. The
software of CRM helps in storing vast information of consumers which can be further utilised for
analysing and reporting of data. Also, this helps in getting information of customers, their
performance, goals as this will assist to grab the unexploited opportunities.
The execution of CRM software is cost effective and time- consuming process but this
further gives profits in the near future. This software helps to find solution to the problems of the
consumers. Their is enhanced employee satisfaction as they have proper availability of information
about the consumers of Jaguar land rover which assist them to find out solutions to the problems of
their consumers (Hammer, 2015). Customer relationship management leads to retention of
customers and ensures effective communication without considering the fact that how long ago the
customer has purchased the car. Also, allows the managers of the Jaguar Land rover to access the
consumer information at any point of time and anywhere. Their is increased collaboration between
team members of the company and assist them to view mails, and call details at the accessible
place. Customer relationship management assist the car dealers and managers to gather information
and enhance the efficiency with better customer involvement by certain benefits which involves
maintenance of vehicle and finance related information, efficient workflow to monitor the enquiries,
test drives scheduling, generation of gate pass, registration process by RTO, and management of
delivery process of vehicles (Wilton, 2016). Also, helps in management of IN and OUT of test drive
of vehicles, formulation of quotation process by system and integration of SMS and Email. In
addition to this, CRM of Jaguar Land rover attract customers by providing them attracting offers. It
will be beneficial for the company in order to gain more customers. Also, by solving their issues
related to the products of Jaguar Land rover, manager retain them for a long period of time. As a
result, company can retain their customers for a long period of time. Customer relationship
management provide benefits to the company by satisfying the needs and requirements of
customers. Along with this, their main aim is to retain and maintain their sustainability at the market
position. Also company gain competitive advantages with the help of effective CRM.
2. Critically evaluate the effectiveness of the organization’s response.
Customer Relationship Management is one of the most important aspect for an organisation
which use to provide their products and services to direct end users of it. This help them in getting
knowledge about the review on the products and services offered by them to their customers, and
also help them in gaining information about the issues customers are facing while consuming their
products and services (Jeston, 2014). This will help them in making proper strategies for change
which they can make in their products and services, so that they can improve them and also improve

the experience of their customers. Along with this, it help them in providing solutions to the
problems faced by their customers, individuals and end user regarding products and services offered
to them. Jaguar Land Rover is one of the biggest car manufacturing of the world. They use to
produce luxury vehicles and provide them to different parts of world, as this help them in having
huge number of loyal customers working with them. Also, for them it is very much important for
them to manage proper system of Customer Relationship Management in their organisation, so that
they can communicate with their customers in effective manner and also gain knowledge that what
customers has been expecting from them and form products and services offered by them.
Therefore, for Jaguar Land Rover, it is very much important for them to have positive response over
customer relationship management (Lange, Lenglet and Seyfert, 2016). For understanding it better,
let's chose an example, like Jaguar Land Rover is car manufacturing organisation and for them it is
very much important to analyse the change in technology, which can affect their performance and
also change their products and services. Along with this, they have to analyse that what are the new
trends in technologies which are liked by their customers, so that they can adopt it in very effective
manner. Along with this, in today's world, technology is one of the most important factor in success
and failure of an organisation, and also change in technology is taking place with high speed.
Therefore, for Jaguar Land Rover it is very much important that they have to understand and adopt
technological change in very effective manner (Wachowiak, 2016). Along with this, if they are able
to adopt these changes in appropriate manner they are able manage proper Customer Relationship
and if, they are not able to adopt these changes then it become very much tough for them to manage
proper Customer Relationship.
In this case it has been taken that they have adopted technological changes in very effective
manner and also provide products and service to their customers with latest technologies. But this
all have both positive and negative impact on operations performed by them at market place. The
positive impact of this will be that, Jaguar Land Rover will be able to make good Customer
Relationship management, and also provide products and service which will help them in fulfilling
the needs of their customers (Moutinho and Vargas-Sanchez, 2018). Where as, the negative impact
of this will be on the financial conditions of organisation. As for adopting technological change, and
implementing it in products and services, Jaguar Land Rover have to make huge investments in
their resources, so that appropriate changes can be adopted. This all can cost to financial conditions
of organisation, and also for providing training and development sessions to employees, they also
needs proper funds. Therefore, it can be said that, the negative affect of this will be on financial
conditions of nation.

3. (If possible and appropriate) demonstrate some areas for improvement in the response of the
organization.
Jaguar Land Rover is one of the biggest car manufacturing organisation of the world. Along
with manufacturing they also to provide their products and services to end users. The products and
services manufactured and offered by them are high class and luxury products. Therefore, for them
is is very much important to manage proper customer relationship and also provide solutions for
problems and issues faced by their customers (Nudurupati, Tebboune and Hardman, 2016). For this,
it has been recommended to Jaguar Land Rover, that they can implement new technologies in their
production, and also in their cars, so that they can attract ample number of customers towards the
products and service they use to offer. Also, this will help them in making some innovative changes
in the products and services they use to offer, so that needs and demands of their customers can get
fulfil. Along with this it help customers of them in getting products and services which are very
much unique and also help them in getting experience of luxury. Also, it has been recommended to
them that they can adopt proper Customer Relationship Management system, so that they can make
appropriate communication with their customers. As this will help them in getting information
about the needs of customers along with their expectations from organisation. Also, this will help
Jaguar Land Rover in collecting detail informations about the changes which are attracting ample
number of customers and also help them in getting proper knowledge about the complaints and
problems which they have from the products and services offered by organisation to them. As
maintaining proper customer relationship management in organisation, will help Jaguar Land Rover
in several ways and also lead them in solving problems and issues faced by their customers
(Renwick and et. al, 2016). This all will help them in satisfying their customers, so that number of
loyal customers can get increased for organisation. Along with this, it will help them in increasing
their revenue and also improve their profitability at market place.
CONCLUSION
As per the above mentioned report, it has been concluded that management plays very
essential role for the development or growth of business organisation. In the present report, Jaguar
Land Rover has been taken as the base company where its PESTLE analysis has been examined in
order to analyse the external environment. In addition to this, importance of PESTLE analysis in
context to the organisation has been examined in this report. Along with this, how this analysis have
influenced the decision making process along with the policies and strategies of the company has
been detailed discuss in this report. Along with this effectiveness of organisation's response has
been critically evaluated in this report. As a result, both positive as well as negative impact of

effectiveness of company has been mentioned in this report. It has also been included various
recommendations regarding improvement in the organisational responses.

REFERENCES
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