Understanding External Business Environmental Factors

RUNNING HEAD: BUSINESS ENVIRONMENT
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Business Environment

Business Environment
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Executive Summary
The aim of this report is to understand the external environment factors that impact on the
business. In order to understand this concept, an organization has been selected that is
Beazley Plc. This is a European company that operates in the insurance industry. The below
section provides the external analysis of the company using the PESTLE framework. That
includes analyzing political factors, social factors, economic factors, technological factors,
legal factors, and environmental factors. From the report, it is concluded that the company
operates in a versatile environment in which external forces have a direct impact on the
business operations as the company gets to take advantage of opportunities that are available
because of changes in political and technological factors and face problems because of
changing social, legal environment.

Business Environment
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Table of Contents
Introduction................................................................................................................................3
Beazley PLC...............................................................................................................................3
Organization Structure and Governance................................................................................3
Importance of PESTLE Analysis...............................................................................................4
PESTLE Analysis.......................................................................................................................5
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................11

Business Environment
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Introduction
The business environment is defined as the forces that directly impact on the operations of
business and forces that are outside control of organizations. But on the other side,
sustainability, growth and overall performance of any business depend on these forces. Due
to that, it becomes important for organizations to analyze the business environment before
making strategies (Hamilton and Webster,2018). The business environment consists of the
external environment and in that microenvironment and macro environment are analyzed.
Macro environment forces are political, legal, economic, technological and environmental.
Microenvironment forces are suppliers, customers, market intermediaries, employees, and
competitors. It is important for companies to analyze these forces in order to assess the
change and its impact on their business operations.
This report is based on the analysis of Beazley Plc.; it is a European company that operates in
the insurance industry. The report gives a brief idea about the organization structure and
governance of Beazley. Further, external analysis of the company is done using the PESTLE
analysis tool in order to identify forces in the insurance industry in the UK that can impact on
the operations of the company.
Beazley PLC
Beazley Plc is a European company that offers insurance services such as life, health, marine
insurance, and professional liability, management liability and environmental liability. The
company operates in the US, Europe, the Middle East, and Asia. Beazley Plc was founded in
1986 in Jersey and tax resident in Ireland. Further, it is listed on London Stock Exchange as
the company is divided into six segments that are Marine and Aviation, Cyber and Executive
risk, reinsurance and specialty lines, accident and contingency, property, and political. In
2019, the company earned a net premium of $2,503 million and net investment income was
$263.7 million and the company had profits before tax of $267.7 million.
Organization Structure and Governance
In 2019, the insurance industry went through major changes and this impacted on Beazley.
Due to that the company changed its organization structure, top-level executives and updated
its specialty lines division for growth of a business. Beazley changes its management that