External Environment Report for EHS Access: PESTLE Analysis and Porter's 5 Forces Model

This report provides an in-depth external environmental analysis of EHS Access through PESTLE Analysis and Porter's 5 Forces Model. It includes competitor analysis and a perceptual map to understand EHS Access's market position. The report highlights the importance of external environment analysis in designing business strategy in a dynamic business environment.

External Environment Report
Exec Summary (kong weng fai)
EHS Access is often recognised as a very renowned name which works for Environmental, Health
and Safety (EHS) risk management projects and altogether intends to improve the quality of
consulting service for their clients. Though it has been identified as a very well reputed business
organisation pertaining to its field of market segment, there is no doubt that the firm faces strict
competition from varied other emerging business groups. Thus, the project report mainly highlights
on the scope and operations of EHS Access through an in-depth external environmental analysis
using the PESTLE Analysis tool followed by Porter’s 5 forces model. The external environmental
analysis is very important for the firm to realise its own potentials compare it with the existing
demands in the market coupled with the entrance of significant competitors who have a well-defined
impact on the firm’s business. Then the project would highlight on detailed competitor analysis
which would include firms like AMCOSH and Greencap Pty Ltd to understand the strength,
weaknesses, opportunities and threats that would help EHS Access to understand its market position
that can be well depicted with the help of a perceptual map which in turn will take into account the
combination of quality with price to understand how well EHS Access has held its market position
among its competitors. The report primarily highlights on the fact that why the external or macro
environment of the business is so important to determine the operation strategies of the firm and how
the finding can be objectively incorporated in designing the business strategy of the organisation in a
dynamic business environment.

Contents
Exec Summary (kong weng fai) 1
Intro (kong weng fai) 3
Wider Industry Analysis (tash) 3
Near Environment (Will) 3
Competitor Analysis 4
Conclusion - (Shannon) 4
Appendix (unlimited word count) 5
Appendix 1 5
Appendix 2 5
Appendix 3 5
References 6

1 Intro (kong weng fai)
External environmental analysis refers to one of the basic analysis and study of the macro
environment along with industry and competitor analysis. The main objective of such an analysis is
the growth of the organization. This is a part of strategic decision making that helps organizations to
find out the opportunities and threats in comparison to the competitors (Tresna 2017). The macro
environmental factors focus on the future possibilities of events. It helps in focusing on the factors
that affect the profitability, growth and development of the organization. Environmental forces that
play an important part in this analysis are the global market conditions, economic conditions, socio-
cultural, demographic, political, legal and technological factors. The analysis of industries on the
other hand includes threats of new entrants, supplier power, buyer power, availability of substitute
products and the rivalry.
External environment analysis is a broad strategic decision making process that involves
strategies like finding opportunities and threats, performing PESTEL analysis, following Porter’s Five
Forces model and doing supply chain and industrial life cycle analysis (Patnaik 2017). The project
report aims at discussing about industry consulting firm EHS Assess extensively. The project
requirement, response, work management and operational expansion schemes are clearly explained as
the report proceeds. It also contains details about the key activities, value proposition, partners
involved and customer relationship management. The report is being prepared to analyse the growth
and development of EHS Assess with respect to the market competition and how well it is using its
opportunities to grow further down the line.

2 Business Definition and Scope (Leiam)
EHS Assess can been clearly positioned in the industry as a high price yet high quality product
offering efficient and quality consultancy services to clients. Clients are primarily sourced from
the insurance industry. The firm competes with other certified occupational hygienist businesses
who also provide high quality analysis to clients. In occupational hygiene industry EHS assess
work closely with Laboratories to provide a high quality service to clients. There are high levels
of competition in the industry but through word of mouth and repeat customer EHS assess are
able to secure a portion of the market share. In order to successfully compete in the industry
Brian and EHS assess are required to hire and train high skilled high quality consultants which
are also a cultural fit to the autonomous and agile nature of the organization. The business must
also continue to perform and satisfy the needs of clients in an extremely timely manner whilst
adhering to industry standards.
3 Wider Industry Analysis (Tash)
<some connecting words here>
DO NOT EXPLAIN THE TOOL
Are the trends in the macro environment favourable or unfavourable to your proposal?
Is it a good time to be in this industry? Will it get better? Worse?
PEST here
(Can present as table)
Heavy number digging, analysis in Appendix 1
EHS Assess in the wider industry environment fits into a subdivision that “provide a range of
professional, scientific and technical services to a range of businesses in different industries,
along with individual households” (Do 2019). Due to the niche focus of services provided by
the company, EHS Assess is recognised to sit somewhere between both the Professional
Services industry and the Occupational Health and Safety Services industry within Australia.

EHS Assess have an advantage by already being firmly established as well-valued company
by their large clientele due to the fact that Australia is continuing to grow into a service-
based economy, which was reported to be the largest contributor to employment growth
within Australia from 2017 to 2018 (Australian Bureau of Statistics 2019). Within the services
industries, the largest growth with 64,000 people or approx 6.2% was the professional,
scientific and technical services industry (Australian Bureau of Statistics 2019), meaning that
these industries are likely to continue growing and gain new companies to compete with. Not
only is there room for more employment, the revenue is also profitable while both the
Professional Services and OH&S Services industries sit in the mature stage of their industry
life cycles.
Industry Professional Services Occupational Health
and Safety Services
Revenue $165.2 billion $1.3 billion
Profit $28.4 billion $183.3 million
Wages $65.1 billion $931.0 million
Expected
annual
growth
2019-2024
1.9% 1.5%
(Do 2019; Munro-Smith 2019)
Within the professional service industry, wages are recognised as the most substantial cost
component for these companies which would attract new employees to this sector. While
these industries may continue to expand, there will only be a certain number of companies
who will be able to maintain their success which are those who can retain their
knowledgeable and qualified staff members.

It is unlikely that there will be a shortage in demand for these industries at least in the next
10 years, which is a positive for a company like EHS Assess. In fact, the work may become
more demanding with the increased pressure from government and supporting bodies for
businesses to operate in the safest of work conditions. While the majority of companies
within the professional services industry tend to follow the trends in business confidence and
capital expenditure to determine the demand for their services, companies like EHS Assess
also have the unpredictability of weather and environmental conditions to determine the
need for their specialised services.
External Environment Analysis
Political Factors - Large shift in policy decision making over the last 20
years to ensure long-term safe working environments for
employees nationally based on previous health disasters
from poor oversight (safe work australia, 2019). (Eg,
Asbestos)
- Government bodies are offering OHS services to
developing countries for humanitarian and diplomatic
reasons
- Increases in accountability and transparency for
government bodies and their oversight of safe practice
and regulations
Economic Factors - Australia is becoming a more service-based economy
- Wage costs within these industries have continued to
increase in the last five years and are still forecasted to
rise
- With a higher populated workforce, more employers are
needing to secure their work environment
- While the OH&S services industry is still expected to grow
annually over the next ten years, it is still underperforming
compared to the average GDP growth of 2.6% annually
over the next ten years
Social Factors - For OH&S consulting services, Australia’s aging
population will contribute to the drive for demand,
especially in health-based industries where there is a
larger risk for disease (Australian Bureau of Statistics
2019).
Technological Factors - Some companies are able to gain a competitive
advantage through developing their own software for their
clients to use with recording and monitoring their OH&S
requests
- New and advance testing equipment is constantly being
developed, allowing for more remote, transportable and

less-invasive testing methods.
- Antiquated materials similar to the case of asbestos might
be cause for future long term health issues, that will lead
to industry change
Environmental Factors - Annual increases in severe climate activity (flooding,
drought, bushfires) due to global warming (Business and
the Environment 2012, p. 16 likely increasing the need for
COHs around Australia
- As a majority of the population of Australia live in coastal
cities, rising sea levels could become a major industry
concern over the next 10-15 years (Defu et al., 2014).
- Future proofing against predicted weather changes is a
likely possibility, and ensuring these changes are up to a
certain standard would fall within the role of a COH.
Legal Factors - Relevant legislation introduced in January 2019 was The
Modern Slavery Act 2018. This reporting requirement
exists for companies that generate a consolidated
revenue of at least $100 million annually. They must
report the actions of the company to mitigate the risks of
being considered operating under what is classified as
modern slavery.
4 Near Environment (Will)
Porter's 5 Forces
- The threat of new entrants
For the time being, there is a relatively low-level threat of new entrants into the field, where
it is a relatively niche market and it is not booming with competitors. However, considering the
market is for the vast majority, there is a great potential for competitors to enter into the industry of
‘assessing exposure to chemicals, biological hazards and so forth, as there is a great opportunity to
make money within. However, EHS Assess business activities cover a very extensive range of tasks
and areas, thus even when entrants enter the market, they will not run identical business activities
to the business and the business will still own an extensive array of market share.
- The bargaining power of suppliers
Where the market is not overly mainstream and niche as earlier expressed, the bargaining
power of suppliers is great. This is because it is such a small market, and not a great deal of suppliers
deal within industry and with like businesses, so there is not a great deal of suppliers that can be
selected from. Therefore, where contractual disputes arise between EHS Assess and their suppliers,
it would be in the best interests of EHS Assess to end the dispute as quickly and as civilly as possible,
as it will save the business money and result in as little business interruptions as possible. The
suppliers in these situations know there are not many other suppliers that the business can choose
to go to, so they may exploit their power.

- The bargaining power of buyers >
The bargaining power of buyers is almost the direct opposite of suppliers, where it is
less than what they would like it to be, due to the relatively small size of businesses that
operate within the industry, and can cater for these needs of buyers. When situations like
this do arise with the business (EHS Assess) having the bargaining power, the business
knows that they can exploit their power, with examples of this being pricing their goods and
services above market price. However, with EHS Assess looking to take their business
nationally, by entering in the market in new states, it would be in a business sense
irresponsible to do this, as potential clients will then look towards like businesses with a
lesser price for services.
- The threat of substitute products or services
The threat of substitute products or services to that of EHS Assess is quite low,
where the level of competitors within the industry is relatively low, and this is an industry
where work carried out needs to be at the highest standard. The quality of service of EHS
Assess is an underlying factor as to what sets them apart from other businesses within the
industry, only further quantifies that the threat of like products or services to be low. Within
this industry, there is also the possibility of legal ramifications, at the expense of the
business if their product or service is inferior, thus, it is in the best interests of the client to
go with a business like EHS Assess to ensure the best results; also in the best interests of
EHS Assess to supply superior products, to ensure no legal ramifications come to fruition at
their own expense.
- The degree of rivalry among existing competitors
The degree of rivalry amongst existing competitors is one that changes state to state
on a national market, where the industry is further developed in some states in comparison
to others. Victoria, where business operations are currently based, is one of the states
within Australia where competition is high, and therefore rivalry is high, which can affect
business. With a higher level of rivalry, this means that EHS Assess will have to spend more
money on marketing, ensuring that they are giving themselves the best opportunity to
remain not only profitable, but growing as a business also.
Heavy analysis in Appendix 2
5 Competitor Analysis
Competitor Environmental Health Solutions
Strengths - Has own asbestos laboratory where
asbestos identifications and fibre
counting is completed

- Have various consultants that
specialise in each department of
occupational hygiene, asbestos,
environmental and health and safety
sectors
Weaknesses - They are such a large company that
communication throughout the
business chain that there is a higher
chance of communication being lost
and/or delivered at a poor rate
Opportunities - Environmental Health Solutions are
currently working and expanding their
clientele both throughout Australia and
worldwide
Threats - Have a large range of clientele, from
government departments to local
councils that are local and national
- Have international clientele
Competitor AMCOSH
Strengths - Established since 2003
- Deal with physical and chemical
workplace related issues
- Excel in the personal customer
experience (AMCOSH 2019)
Weaknesses - Is not interstate, currently only
operating in Melbourne which limits
their opportunity to expand clientele
Opportunities - Offers training courses for personnel of
interest and employees. This allows for
their workers to always be up to date
with protocol and procedures.
Threats - Have four main consultants that run
their own smaller teams. Having smaller
teams within the team allows for better
communication and workflow
throughout the company.
Greencap Pty Ltd
Strengths: Economies of scale, Greencap has been in operation since 1984 with 300
professional staff (Greencap 2019). Due to this they have the ability to effectively provide

expert services to a large portion of the market. Greencap also has a large amount of cash
flow stemming from its parent company Wesfarmers ( Greencap 2019). This can be used to
fund further expansion and growth.
Opportunities: Further refining and streamlining the service provided to clients, As completion
times of a job from quote through to conclusion are not as efficient as smaller competitors in
the market (Murphy 2019).
Threats: In the professional services industry some major threats for key players are the loss
of clients based on attrition of consultants to competitors, Wlist there are contractual
obligation in place to mitigate this behaviour, it is still a common issue faced by firms who
suffer from loss of personal. (Murphy 2019).
Weaknesses: flexibility offered to employees as in a large scale corporate environment all
employees are required to follow standardised workflows and operating procedures. These
practises can sometimes lead to employee dissatisfaction and attrition leading to increased
competition in the industry as employees underperform or leave.
Perceptual Map

Choose from combos of
● Perceptual map
Amcosh Pty Ltd
Greencap
OHS Assess
Control one
Cority
VA Sciences
ESP Environmental
Hazcon Pty Ltd
Prensa Pty Ltd
Vital Safety Pty Ltd
Environmental Health Solutions
edge group pty ltd
iRisC Pty Ltd

● SWOT – far each competitor
● Pro/Con
● Etc
Heavy stuff in Appendix 3
10:48pm monday - 2100 words
6 Conclusion
As the threat of new entrants and the threat of substitute services is quite low EHS Assess is
relatively secure in its industry position, and due to its unique ‘niche’ area within its industry
they also have a degree of immunity to issues that may affect the wider industrial health
industry due to its workflow being based from insurance claims, however even within this
small industry EHS assess has found itself a place of independence from the main cluster of
competitors as shown in the above perceptual map as the highest quality service in its
industry, but also the highest cost.
With EHS assess being already established within its industry there is little risk of them being
dislodged in the near future as they are one of the primary and best-known firms within the
Victorian market, there is little chance of workload dissipating for EHS assess as
governmental and corporate policies are beginning to require additional OH&S standards so
if anything the workload is becoming even more secure.
Other than competitive factors there is minimal impact on this industry from political,
Economic, Social, Technological, Environment and Legal factors. With the two that do hold
potential being Political/Legal and Technological, as Technological advancements may make
testing and analysis easier and political/legal are often requiring stricter OH&S requirements.
Overall due to their existing foothold in the industry and low chance of competitors taking
over the future of EHS assess is positive from an external factor, Due to EHS Assess low

amount of employees the main threat is that they may lose business to other firms with more
staff as they are able to cover more jobs at a single time.
(2000 words up to here….)
7

8 Appendix (unlimited word count)
8.1 Appendix 1A - 8155.0 - Australian Industry, 2017-2018 - Key Points
8.2 Appendix 1B - Industry at a Glance - Occupational Health and Safety Services in 2018-
2019

8.3 Appendix 1C - Industry at a Glance - Professional Services in 2018-2019

Heavy details for PEST
8.4 Appendix 2
Heavy details for Porters

8.5 Appendix 3
Heavy details for CA

References
3Patnaik, P., 2017. Handbook of environmental analysis: chemical pollutants in air, water, soil, and
solid wastes. Crc Press.
Tresna, P.W., 2017. External and Internal Environment Analysis (A Study in Tasikmalaya City
Embroidery Industry). Review of Integrative Business and Economics Research,6(1), pp.401-11.
Greencap 2019,about, Greencap, viewed 1 September 2019, csfef
ewrewr<https://www.greencap.com.au/about>
Australian Bureau of Statistics 2019, Australia Industry, Australia, 2017-18, cat. no. 8155.0,
Australiam Bureau of Statistics, Canberra.
Do, K 2019, Professional Services in Australia, IBISWorld, M6900, viewed 20 August 2019,
<http://clients1.ibisworld.com.au.ezproxy.lib.swin.edu.au/reports/au/industry/default.aspx?
entid=1750>.
Munro-Smith, H 2019, Occupational Health and Safety Services in Australia, IBISWorld,
OD4162, viewed 20 August 2019,
<http://clients1.ibisworld.com.au.ezproxy.lib.swin.edu.au/reports/au/industry/default.aspx?
entid=4162>.
Defu, L., Guilin, L., Hongda, S., Fengqing, W. and Ziyu, C. (2014). Extreme sea hazards
statistics and engineering applications. OCEANS 2014 - TAIPEI.
Safe Work Australia. (2019). Asbestos. [online] Available at:
https://www.safeworkaustralia.gov.au/asbestos [Accessed 8 Sep. 2019].
"Report links natural disasters, climate change." Business and the Environment, Jan. 2012,
p. 16. Gale Academic Onefile, https://link.gale.com/apps/doc/A282327539/AONE?
u=swinburne1&sid=AONE&xid=13adbb61. Accessed 9 Sept. 2019.