SWOT, PESTEL and Porter's Five Forces Analysis of M & A Air Conditioning Ltd.

This report provides a detailed analysis of the impact of external environment on the growth of M & A Air conditioning Ltd. It covers SWOT, PESTEL and Porter's Five Forces Analysis of the company. It also discusses the issues faced by the management in operations and the skills used in preparing the report.

Foundations of
Business
Communication

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
SWOT Analysis..........................................................................................................................3
PESTEL Analysis........................................................................................................................4
Porter's Five forces Competitive Analysis..................................................................................5
Issues faced by the management in operations...........................................................................6
PART 2............................................................................................................................................8
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Every business organisation needs to analyse its internal performance as well as external
environment's impact on its business to ensure long term profitability and growth. It is also
required to measure the degree of competition in the industry it is operating in, to increase the
market share by getting competitive advantage in the market (Ribeiro and et. al., 2022). For the
analysis of external environment and competition, companies can use various business
frameworks. The following report will explain the impact of external environment on the growth
of M & A Air conditioning Ltd. It is a small company that was established in 2010 and located in
Milton Keyenes, London , UK. It deals in designing, installation, commissioning and after sale
services for air conditioning, heating & ventilation systems and other machinery equipments for
commercial as well as household customers. This report will cover SWOT
PART 1
SWOT Analysis
SWOT Analysis is a tool to analyse the performance of business by identifying its
strengths, weaknesses, opportunities and threats. It provides a framework to evaluate the internal
operations by taking effective measures to improve them and grab the available opportunities in
the market to expand the business (Rohmahdani, 2022). The following is the SWOT Analysis of
M & A Air Conditioning :
Strengths
 Human Resource : M & A have a
strong workforce that consists of
trained and skilful employees providing
quick services in an efficient and
professional manner. It provides
services to both the domestic and
business customers according to their
suitability and requirement.
 After Sale Services : M & A Ltd.
provides after sales services to its
customers that facilitates customer
Weaknesses
 Limited Employees : Although the
company has strong workforce but it is
very small that consists of only 25
employees, due to which the company
is not able to provide its wide range of
services that it deals in.
 Communication : The company is not
able to develop proper communication
with the customers due to its low
awareness in the market because of its
online absence through social media or

loyalty and increment in customer base
in the market.
other online platforms.
Opportunities
 Increased Demand : The businesses ,
companies or institutions have high
demand for air conditioners,
ventilations because of high number of
individuals working there creating the
opportunity for company to expand its
business in electro-technological sector.
 Technology : Company can use the
online platforms to demonstrate the
quality of its services it will facilitate
the awareness of its services and
equipments it deals in, in the entire UK
market and will attract more
commercial customers therefrom.
Threats
 Fear of Covid19 : As it involves
arriving of the team to provide the
repair or installation services that
include human interactions, it has fear
of lockdown as well as safety of
employees due to physical touch of
clients' equipments (Hashim, 2022).
 Competition : There is a high
competition in electro-technological
industry posing a threat of reduced
market share to M & A.
PESTEL Analysis
This analysis provides a framework to measure the impact of external environment
factors on the business of company. These include Political, Economical, Social, Technological,
Environmental and Legal factors that the business needs to be flexible with to take suitable
measures for the improved performance. The following is the PESTEL Analysis of M & A Ltd. :
 Political Impact : It includes the factors such as policies of government regarding
foreign trade, taxation policies, government grants to small businesses and political
instability etc (Chan and Tai, 2022). For example, M & A Ltd. had to face political
instability due to Brexit in UK that enforced the company to comply with EU regulations
on products purchased from EU.
 Economical Impact : These factors include economic policies such as change in interest
rates, foreign exchange rates, disposable income of people, inflation rates, etc. due to

which price of the products or services of a particular economy fluctuates. M & A Ltd.
needs to consider the changes in inflation rates as it impacts the price of services as well
as the salary to be given to the employees.
 Social Impact : These factors include the customers' preferences and behaviour, trends in
the market, population etc. In context with M & A Ltd., the skilful behaviour of
household customers' in repairing the equipments themselves and being independent
impact its sales revenues. Also, the demand for the services is affected by the health
conscious attitude of customers.
 Technological impact : These are the most influential factors for electro-technological
industry as it is required to adopt advance technology for new electrical and mechanical
equipments. These factors include new innovation, new techniques and methods of
production and use of IT and E-commerce for the promotion of services (Dolnicar,
2022). M & A needs to demonstrate its installation and designing services through online
platforms by its own website to get technological advantage.
 Environmental Impact : These factors include the changes in climate and weather,
sustainability of environment that have impact on the business of company. For example,
the demands for installation and repairs of ACs change according to the changes in
climate and weather. Also, M & A needs to ensure environment sustainability by
reducing the wastage in construction and repairs of equipments.
 Legal Impact : These factors include the impact of rules and regulations of the country
that are applicable on the companies such as companies law, income tax law, consumer
protection and workmen safety laws etc. (Pires, and Barros, 2022). M & A needs to
strictly adhere to the workmen safety laws due to the use of electric and mechanical
equipments in the services provided by its workforce. It has to ensure safety and related
compensation for the employees and avoid any penalty or fine on violation of the
applicable laws to maintain its image and status in the market.
Porter's Five forces Competitive Analysis
This is a competitive analysis developed by Michael E. porter to assist the businesses in
measuring the level of competition in the market to get the competitive advantage. It facilitates
the companies in long term profitability by helping them in corporate strategic planning by

analysing the strategies of competitors (Dakora, 2022). The following is the competitive analysis
of M & A Ltd. by using porter's five forces framework :
 Rivalry among the existing competitors : It means the competition of existing
competitors in the market that the business competes with. There is an intense
competition in HVAC(heating, ventilation and air conditioning equipment) industry with
companies like The Air conditioning company and AAC Group that M & A competes
with in the UK market (Martek, 2022). There are almost 635 HVAC companies in entire
UK market, so M & A needs to add differentiation to its services to provide qualitative
services to be stable in the market.
 Threat of new entrants : It means the competitive pressure from the entry of new
entrants. Businesses must strive to set barriers for the new entrants to reduce this
competitive pressure. As regards M & A, it operates in electro-technological industry that
have a low threat of new entrants because it requires skilful engineers and electricians to
operate in this sector who are not found easily and demand more pay. It reduces the threat
of new entrants.
 Competitive pressures from the bargaining power of Suppliers : Bargaining power of
suppliers is high for small or start up companies that have low access to the supplier
chain in the market. But as there are large number of suppliers of electrical equipment in
the industry, M & A faces low bargaining power of suppliers.
 Competitive pressures from Bargaining power of Buyers : Bargaining power of
customers tends to increase when they have option to buy the same product or service by
another company. As regards to M & A, bargaining power of customers is high as there
are many HVAC companies in UK that provide efficient services to commercials as well
as households.
 Threat of Substitutes : This competitive pressure arises when customers switch to
another industry's product or service to fulfil the same need. As regards M & A, it has
low threat from substitutes as people do not have many substitutes for HVAC industry.
Households as well as businesses need to take the services of particular air conditioning
company.

Issues faced by the management in operations
HVAC companies face issues in operation due to their seasonal based work and
competition. Some of the issues that M & A Ltd face are listed below :
 Seasonality : Because of the season based demands of installation or repairing of air
conditioners, HVAC companies, face losses due to the seasonal change for heating and
air conditioning equipments. On the other hand, in summers, there is heavy load requiring
overtime with employees that creates problems in the management of human resources
(New and et. al., 2022).
 Experienced workforce : In UK, when experienced employees retire, HVAC companies
face difficulties in creating skills programmes for young workforce by investing in new
technologies.
 Competition : There is a strong competition in this industry in UK with around 635
companies. HVAC companies frequently depend on their regular customers as they could
not find new clients. They must ensure to provide high quality services to their client to
face the competition.
 Technology : For HVAV companies, it is very important to keep going with the
technology trends to face competition in the market. Companies need to know the
installation process, its pros and cons to explain to the clients such as sustainable building
design, geothermal HVAC, Solar HVAC and Smart HVAC etc. that they also invest
funds to understand (van der Kleij and et. al., 2022).

CONCLUSION
From the above discussion, it has been concluded that for any business organization, it is
required to analyse the external environment and competition in the market to analyse their
impact on the business and get the competitive advantage. For example, M & A Air conditioning
Ltd. is operating in electro-technological sector that have low threat of substitutes but faces high
bargaining power of buyers. Management of M & A Ltd. needs to adapt effective measures to
solve the operational issues by creating skill programmes for the employees and by offering
exceptional services.

PART 2
This reflective report is about the skills that I have used in preparing the above report and
that help in other areas of my life to ensure further growth. I have learnt communication skills,
problem solving skills and Numeracy skills.
Week 2
In the second week I participated in reflective writing ad learned about importance of
reflection in self-development. In addition to this I learned about skills assessment and self
assessment. I completed a skills assessment and was able to identify numeracy, communication
and problem solving skills as my main skills. By the end of first week I had complete knowledge
of my proficiency of communication and numeracy skills in academic context and how further
development of communication and numeracy skills can support me in my academia and career
development. I am able to improve my Numeracy skills by gaining mathematical and practical
knowledge to be applied in various situations. Numeracy skills refer to the knowledge,
behaviours and capabilities that individuals need to be able to understand the mathematics in
multiple circumstances. It includes identifying the role of mathematics in the world and using
that knowledge and skills in applying to the practical problems in the world (Mannion, 2022). It
is required to be flexible to face the circumstances and uncertainties of the future.
In addition to this I have also learned that I have effective problem solving skills through
skills. In this week I understood about the basics of problem solving skills and how problem
solving skills can be applied in personal, professional and academic context to ensure successful
development in each of these areas. I have learnt the problem solving skills by preparing and
following a proper action plan for improving the skills that I lacked earlier such as
communication skills, numeracy skills etc. Problem Solving skills include identifying the
problem, prioritizing and choosing the best possible solution for the problem and implementing
that. It requires analytical and data handling skills that involves creativity, research and decision
making skills (Dixit, Nirgude, and Yalagi, 2022).
I also completed VARK Questionnaire and have learned that Kinesthetic learning is my
preferred learning style alongside reading and writing learning style. This theory divides leaning
styles into four categories which can be applied for learning various concepts. The four learning
styles in the VARK learning styles are visual learning style, aural learning style, reading and

writing leaning style and kinaesthetic learning style (Mirza and Khurshid 2020). I have identified
my learning style is reading and witting learning style because I am able to utilize theoretical
knowledge such as textual data and notes preparation for learning and memorizing new
information. Kinaesthetic learning style involves usage of multi-sensory learning, touch and
manipulation for learning.
By the end of the second week I have gained knowledge of three employability skills
which are numeracy skills, communication skills and problem solving skills. Problem solving
skills are important for employability as it helps overcome various professional barriers during
daily working. Numeracy skills are important for employability as daily asks in a professional
environment require basic knowledge of numeracy so that calculations need to ensure smooth
professional working can be undertaken. I have learned that communication skills are also
significant for employment as it is basic skills demanded by every employer and is needed to
maintain smooth flow of information in a professional organization.
Week 3
During the third week I learned about communication skills. I learned about the
significance and role of communication skills in daily life. In addition to this I also learned about
ways of improving my communication skills. I am able to improve my communication skills by
interacting with the classmates, team members and leaders. It is necessary to develop
connectivity network in the institution to develop interaction with the individuals. While
executing group projects, I need to communicate with the team members to present my
perspective that is possible through better interaction with them. I have also learned about seven
steps of effective communication which will support in future professional and personal
development.
In the third week I gained knowledge of the Belbin team roles. There are nine different
team roles according to this theory which are needed for creating a successful team. The nine
team roles provided in their theory are divided into three groups of thought oriented, action
oriented and people oriented (DeLong and Vander Schee, 2021). The usage of reading and
writing VARK learning style helped me effectively understand each Belbin team role which
helped me identify my specific Belbin team role. I have understood that the Blebin team role
which applicable in my situation comes from the through oriented category.

Week 4
I learned about SWOT, Porter’s five forces analysis and SWOT analysis in the fourth
week and also applied it on real life company Verdant Leisure. I am able to develop problem
solving skills by solving case studies of companies and giving recommendations and conclusions
in the report such as on competitive analysis and PESTEL Analysis etc. of companies. By the
end of the fourth week I was able to apply SWOT and PESTL analysis on real life organizations
which supported me in completion of this case study assessment. My reading writing learning
style helped me successfully learn ways of applying SWOT and PESTEL analysis to discuss real
organizations. The reading writing learning style is category of VARK learning style which
involve reading and writing theory to understand and apply new concepts (Widharyanto and
Binawan, 2020). I completed thorough reading of SWOT and PESTEL tools which included
understanding example application of various tools. In addition to this I also completed practice
application of SWOT and PESTEL tools to effectively leant and memorize their complete
application.
I applied similar process to the learn Porter's five forces model. This model is used for
understanding competitive environment of an industry (Gautam and et. al., 2019). Now I have
gained deep knowledge about the competitive environment of a company and how to research on
specific company to complete Porter's five forces analysis. This is also because of my reading
and writing VARK style. I prepared notes on Porter's five forces model which helped me
understand how to apply and interpret the results of Porter's give forces analysis so that I am able
to gain accurate results in context of a company or a specific case study. The positive impact of
using my reading and writing style during VARK style during the third week supported me in
completing the case study business analysis. The negative impact of relying on VARK learning
style to understanding theoretical concepts is that it made my understanding of theoretical
concepts very rigid. I am not able to apply creativity to such concepts so that original ideas and
reconsiderations can be developed by applying Porter's five forces analysis model.
Week 5
The last week was practice week to effectively practice the knowledge gained in previous
weeks. In the fifth week I understood my personal strengths and weaknesses by applying SWOT
analysis. My main strengths are my numeracy and communication skills. There is need for
improvement in problem solving skills, ICT and team working skills also need to be developed

significantly. I have prepared a personal development plan for improving my weak areas. A
personal development plan helps individuals take immediate action for improvement of their
weak areas.
Objective Time Period Action Plan Evaluating Parameters
Problem-
Solving skills
4 months The action taken for improving my
problem solving skills is to learn
about various reasoning methods
including deductive and inductive
reasoning. His will help in
improvement in problem solving
skills as external environment
variables can be analysed by using
different reasoning methods.
The primary parameter for
evaluating improvement in
problem solving skills is to
understand improvement in
analytical abilities.
Collaboration
skills
3 months This skill can be developed by
participating in team activities and
leaning about team development
theories such as Tuckman's team
development theory.
This skill can be measured
by understanding change in
performance in team
environment.
ICT skills 4 months This skill can be improved by
taking online classes on ICT
information. In addition to this
attending seminars on ICT skills
can also help stay updated with ICT
skills which are currently in
demand.
This skill can be measured
by understanding ability to
use and apply ICT skills.

REFERENCES
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