Business Environment: Governance and PESTLE Analysis of John Wood PLC

This report covers the governance and structure of John Wood PLC, the importance of conducting PESTLE analysis, and a PESTLE analysis of John Wood PLC to understand external environment and its impact. The report also discusses the ethical responsibility of a business organisation and the significance of social, technological, environment, and legal factors.

Business environment

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1...........................................................................................................................................3
Governance and structure of John Wood PLC............................................................................3
TASK 2............................................................................................................................................6
Importance of conducting PESTLE analysis...............................................................................6
TASK 3............................................................................................................................................7
PESTLE analysis of John Wood PLC to understand external environment and its impact........7
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business environment is a combination of various internal and external surrounding
of a business to perform different operations. In the era of stiff competition between different
companies it is essential to analyse business environment to gain competitive advantage in long
and short run (Carey and Tanewski, 2016). This report includes business functioning and
structure of John Wood PLC to understand concept of business environment in a precise manner.
This report covers the significance of business environment for a company and its employees. In
this project a PESTLE analysis is conducted to understand impact of external environment on a
business entity. John Wood PLC was established in 1982 and is considered as major
multinational company in international market. The headquarters of company are based in
Scotland from where it provides services to different companies.
TASK 1
Governance and structure of John Wood PLC
The John Wood PLC company is a major company which provides consultancy and
engineering services to different national and multinational companies. Current CEO of the
company is Robin Watson who is dedicated to provide essential services to different companies
with utmost dedication. Company is dedicated to achieve corporate governance in an ethical
manner and is also dedicated to provide services with full responsibility. The management of
company is dedicated to provide high standard services to different companies. Governance of
company is well known in different parts of Scotland to provide global standard services. John
Wood PLC is also dedicated to provide essential services with best quality on reasonable rates.
John Wood PLC also takes essential care of its stakeholders and believe in increasing satisfaction
of every customer with major priority (Chassé and Courrent, 2018). The company mainly
believes in discovering innovative ways of providing essential services to different firms.
Company has also hired professional human resource management in order to maintain effective
culture in the organisation and also to develop ethical and integrity related values.
Detailed structure and departments of John Wood PLC is mentioned below:
John Wood PLC follow functional organisational structure which means that company
has divide roles and responsibilities to different workers on the basis of functions. The company
majorly believes in developing high standard services for client firms with utmost responsibility.

John Wood PLC believes in delivering effective and efficient services to different customers.
The detailed review of each department of John Wood PLC is mentioned below:
 Marketing department- The marketing department of company is dedicated to provide
optimum marketing solutions to customers. Marketing department majorly perform
different activities and tasks which are helpful in business sales increment. Company
mainly focus on development of different values which are related to development of
sales of its products and services. It is the major responsibility of marketing department
to develop organisational goals on the basis of sales turnover. John Wood PLC takes
assistance from trained and skilled workers in marketing department to formulate
different plans and policies (Ding, Qu and Wu, 2016) . The company majorly formulates
individual and team goals which are effective in achieving several marketing targets in a
short span of time. Marketing department of John Wood PLC also develops different
sales targets and achieves them with the help of different advertisements and publicity
measures.
Illustration 1: John Wood PLC headquarters, 2021

 Quality department- John Wood PLC has appointed a committee which works on
achieving different quality related goals in a specific time. A company has to give stress
upon quality to achieve maximum satisfaction of customers. The quality department of
John Wood PLC is majorly dedicated to provide effective customer solution related to
consultancy and engineering. The quality department of John Wood PLC also takes
assistance of information and technology to achieve global standard services in product
development.
 Information and technology department- It is the major department which takes
assistance of computer systems and crucial software for business development. The
information and technology department mainly focus on development of business with
the help of technology. The IT department of John Wood PLC is strong and dedicated to
perform business operations in a smooth manner. It is major responsibility of a business
to focus on its IT department to develop and achieve organisational goals in a short span
of time.
 Human resource department- The human resource department is a major department
which focus on increasing employee development in a business. The HR department of a
business majorly keeps an eye on different operations that are performed by employees
and motivates them accordingly. Human resource management of John Wood PLC also
focus on development of culture in the internal environment of a business to achieve
different organisational goals in a set period of time.
 Customer relationship management- John Wood PLC since begging believes in
increasing customer satisfaction as a whole. The company has a separate customer
relationship department which is dedicated to provide effective solutions for developing
ethical values in customer relationship management (Dunn and Jensen, 2019) . A
company has to majorly focus on customer relationship management to develop trust and
interest of different customers. John Wood PLC has now hired more staff which is
indulged in providing effective customer services in quick manner. The companies
majorly achieve customer relationship management with the help of human resource
management. It is the major responsibility of top level management to look for customer
relationship management in a precise manner.

 Research and development department- John Wood PLC has arranged a separate research
and development department which is dedicated to provide effective and crucial services
to the company (Erkut, 2016) . The research and development department of the
company is majorly dedicated to provide innovative techniques to the management for
better satisfaction of clients.
TASK 2
Importance of conducting PESTLE analysis
The PESTLE analysis is a major technique to understand deep impact of macro environment
of a business. Major successful companies in global and domestic market conducts PESTLE
analysis for increasing effectiveness and efficiency of the company. The importance of
conducting PESTLE analysis for John Wood PLC is mentioned below:
 Increases revenue- Increasing profitability and revenue of a business is the major aim
of every organisation. The PESTLE analysis helps in developing different factors
which are helpful in increasing profitability of the business (Joo and Shin, 2018). It
increases turnover of the business which is helpful in overall growth of company. At
the starting of financial year, a business mainly develops specific targets. These
targets can be easily achieved by a business if it performs PESTLE analysis. Many
business organisations achieve short and long term related targets with the help of
PESTLE analysis.
 Minimise risk- It is important for a business to minimise risk for performing future
operations in a specific manner. The company has to develop a specific plan which is
helpful in developing an important PESTLE analysis which minimises risk
associated with the business. In recent times strategic management of a company
also performs PESTLE analysis in order to develop various goals while minimising
risk.
 Development of business- PESTLE analysis leads to overall development of the
business which is a major aim of any business entity. The Development is facilitated
by many different strategies that are evaluated and formulated after PESTLE
analysis.

 Increases business capacity- The overall capacity of a business is increased by
performing a systematic PESTLE analysis. A company has to perform PESTLE
analysis to increase capacity of employees and company. The development of
business organisation is mainly facilitated with macro environment of a business in a
crucial manner (Ku, Wu and Chen, 2016) . It is major aim of a business organisation
to compete at the marketplace with maximum efficiency. The business development
is mainly associated with increase in performance of employees. Human resource
management of an organisation is mainly responsible for business development and
increase profitability of the organisation.
 Enhances productivity and quality- PESTLE analysis is mainly helpful in
development of a business and is also mainly responsible for overall growth of a
business. The quality of performance of employees is improved by a company if it is
able to analyse external or micro environment of company. John Wood PLC is a
major company which increases productivity of different employees with the help of
conducting macro environment analysis. Company defines major organisational
goals at the starting of a financial year which is major responsibility of the
management (Liu and Stening, 2016) The ethical responsibility of a business
organisation is to achieve different goals and objectives from time to time. Many
companies at the marketplace also decides several organisational objectives with the
help of development of company.
TASK 3
PESTLE analysis of John Wood PLC to understand external environment and its impact
The macro environment analysis of a company is a major tool which is helpful in
increasing competitive strength of a company. PESTLE analysis a professional tool which is
used by many companies to analyse the external environment which is present outside the
business. John Wood PLC has hired professional strategic management to perform PESTLE
analysis in order to gain edge over different competitors (Liu and Stening, 2016) . The company
has to focus on internal environment as well to focus on growth of business as a whole. John
Wood PLC has also developed a group and team goals which are achieved by a business with the
necessary support of team members. It is the ethical responsibility of management to frame short

and long term objectives which are helpful in overall increasing revenue of a business. PESTLE
analysis of John Wood PLC is given below:
 Political factors- In the functioning of a business at the marketplace there is major role
played by several political factors which are present in macro environment. The internal
environment of a business is affected by many sources which are helpful in crucial
expansion of business goals. Political factors include tax policy of government which
affect revenue of a business in a precise manner. It is the major responsibility of a
business organisation to develop a strategy in order to comply with political forces.
Company has to deliver performance on the basis of effect caused by different political
factors. The stability of government of is a major factor behind running of a successful
business. As John Wood PLC is a consultancy services based in Scotland it is the major
responsibility of management to follow different political factors.
 Economic factors- The economic factors are major factors which include various
economic policies that are formulated by government. A company has to consider all
economic factors if it wants to get successful in international and national market (Naim
and Lenka, 2017). Monetary policy which is formulated by government is also a major
economic factors which helps a company to decide price of products and services. John
Wood PLC also keeps in mind different economic factors which are helpful in
contribution to gross domestic product and national income of the country. It is major
responsibility of government to develop a precise approach which is helpful in
supporting internal and external business environment in the country. The government
also plans to approve various subsidies which are helpful in supporting a business firm in
a major sense.
 Social factors- In a company the social factors are major factors which generally focus
on building social approach in dealing with external and internal environment. Living
standard of the society is a major social factor which is helpful in supporting social
values in the business entity (Panda and Rath, 2018). John Wood PLC considers social
values and ethics in order to perform major operations in a systematic manner. The
company also provides major training to different employees for business growth in
order to understand cultural dimensions. It is ethical responsibility of human resource
management to understand culture of the company and to develop different values in

employees on the basis of culture. A business organisation should take responsibility of
business in a precise manner to gain organisational objectives in a short span of time.
The companies must follow social and ethical values in order to gain trust of target
customers.
 Technological factors- In the era of competition between different companies John
Wood PLC considers different technological factors which are helpful in performing
accurate operations. John Wood PLC deploy advanced computer systems and software
to perform different functions in a quick manner. John Wood PLC has also hired a team
of professional IT staff in order to perform different information and technology related
operations. Information and technology is adopted by many consultancy services in
Scotland to deal with customers in an effective manner. Many companies focus on
development of different objectives that are essential for business growth in a precise
manner.
 Environment factors- It is essential for a business to follow environment related policy
which is formulated by government to develop caring of environment. A business entity
must follow different policies which are set by government in order to perform
sustainable business in the environment (Schaltegger, Hörisch and Freeman, 2019).
John Wood PLC makes it compulsory for the staff members to follow sustainable
business in order to develop a precise business environment. The external environment
of John Wood PLC is facilitated with the help of different policies that are formulated by
top level management. The company has also hired professional staff separately to take
care of external and internal business environment. Many companies at the marketplace
follow policies related to environment which are designed by government officials to
achieve the target of peaceful and sustainable business.
 Legal factors- The legal factors are major factors which directly or indirectly affect
functioning of John Wood PLC in order to reach prosperous business. A business
organisation is mainly affected by several legal which are formulated by local authorities
and national authorities. John Wood PLC makes it compulsory for the company to
follow different organisational rules and policies and laws which are formulated by
government (Sun and Richardson, 2016). The legal factors are considered as major
factors which are important to be considered by a company to perform ethical business at

the marketplace. The legal factors are basically compulsory to be followed with the help
of professional top management to gain competitive advantage. Many different
companies which are related to provide consultancy services in Scotland follow legal
rules and procedures.

CONCLUSION
From the above stated report it can be concluded that a business organisation has to maintain
healthy business environment in order to conduct smooth operations. It is the major
responsibility of top level management to develop a precise business strategy for business
development. This report concludes that it is essential for a business to perform an in depth
PESTLE analysis for business growth and enhancement. This report also concludes that it is
essential for a business entity to train its employees according to dynamic business environment
for better productivity. This project concludes that it is ethical responsibility of a business to
develop a business strategy which is helpful in increasing business growth and increase revenue
of the company.

REFERENCES
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