Management: Governance, Structure, PESTEL Analysis

This document explores the concept of management within the business sector, focusing on governance and structure. It also discusses the importance of PESTEL Analysis in analyzing the external environment and applies PESTEL Analysis to analyze the external environment of a chosen company.

Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
Examine how firm is governed & structured ................................................................................3
TASK 2.................................................................................................................................................5
Examine importance of PESTEL Analysis .....................................................................................5
TASK 3.................................................................................................................................................7
Apply PESTEL to analyse external environment............................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10

INTRODUCTION
Management is defined as monitoring, controlling group of people or individual with aim
to get work done. It is essential to have a appropriate control over business so that objectives are
achieved. In organisational context, management play important role in business through which
they are able to achieve goals (Arafat, 2018). Management is a wider approach which require deep
level of skills & knowledge. Main aim of this report is to understand the concept of management
within business sector. Hilton Food Group PLC, a food packaging company headquartered in
United Kingdom. The entity has six factories & sell its products in Europe. This report comprises of
governed & structured of a firm, importance of PESTEL Analysis & PESTEL Framework to
analyse external environment.
TASK 1
Examine how firm is governed & structured
An enterpriser is a wider and broader which comprises of wide number of functions &
operations. It is essential to assure that everything in entity is carried out in effective manner.
Governance & structure play important role in carrying it all the functions s well as operations in
well organised way. In relevance with Hilton Food Group PLC, management of firm have a
governance & organisational structure through it is easy for them to carry out their workflow. It is
duty of manager to assures that these structures are properly followed & maintained within business
sector. The procedure of governance & structured is time consuming is necessary to be adopted.
Governance- It is defined as set of rules & regulation, polices, legislations defining
behaviour of every individual in corporate world. Shareholders or investors are to be considered as
important one who impacts upon governance of a firm. It is essential to have a appropriate
governance as it depicts the integrity of business at larger scale. Moreover, with presence of good
governance leads to developing a goodwill of firm in market and attracting of more investors.
There are various types of governance structures of Hilton Food Group PLC which are discussed as
follows-
 Policy Governance Board- It is also being considered pat of governance in which it is
described a formal structure reflecting the every activity of entity. In this, boards operate
their role & responsibilities as a whole. In relation with chosen firm, executive director has
clear set of roles & are well aware about their limits & power. Moreover, directors uses
their limits in positive way (Ararat, 2017).
 Working Board- In this type of board, administrative functions as well as directors work

hands on role which depicts their involvement within a business. For example- in context
with selected firm they work within public relations, financial management, etc. It is crucial
for them to have a proper knowledge of management which help them in achieving of set
target in properly.
 Collective board- This is another type of board in governance in which administrative
functions are being carried out by both staff & directors together. This depicts mutual
coordination & cooperation within business that leads to effective working of management
& achieving of assigned task on time period. This has been analysed that it is important for
company to be aware about these boards so that firm is governed properly at all aspects.
Structure-
A structure refers to process & procedure through which how activities & tasks are carried
out within firm to achieve goals or objectives. It is important to have appropriate form of structure
so that decision making within business become easier. In relevance with chosen company, they
have hybrid structure within enterprise & decisions are made on basis of hierarchical structure.
There are various types of organisational structure which are mentioned as follows-
Functional structure-
It is type of structure in which enterprise is divide into smaller groups & accordingly work
is allotted with specific roles or position. In reference with selected entity, through opting this
structure it become easy for them to reduce complexity of work into smaller units. Focusing on this
structure leads to making of decisions related to work in appropriate way. On basis of this, it is easy
to complete work on given time period (Bao, 2019).
Divisional structure-
It refers to type of structure in which business are divided into different divisions such as
transportation, logistics, management, etc. It is most effectively used structure by larger enterprise
as in this different types of departments operate in their own way such as marketing, finance,
department etc. In relation with selected organisation, they too has different types of departments
such as human resource management, marketing & sales, according to which work is divided.
(Çitilci, 2020).
Hybrid structure-
In this type of structure, both functional as well as divisional structure are adopted by
enterprise. It is adopted by Hilton Food Group PLC, with aim of carrying out work in effective
manner. It is effective but difficult to operate because number of people, bosses involved in this

structure. Main benefit of this structure is that it help in gaining extensible knowledge at larger
scale. Further, it too helps in developing of multitasking environment at workplace.
After examining of above matter, it has been stated that chosen entity is governed &
structure in such a way that all goals are accomplished properly. The HR manager of corporation
ensure that both are adopted in effective way. These both help in development of business
productivity at wider scale.
TASK 2
Examine importance of PESTEL Analysis
In corporate world, business environment has deep impact on workflow of firm at wider
scale. Bushiness environment refers to process which comprises of internal & external environment
affecting overall business functional units. Managers uses different tools techniques, strategies to
examine such impacts within business. In reference with selected cooperation, they uses PESTEL
Analysis for determining effects of such external factors at work place.
PESTEL Analysis-
It is framework which is used by entity to access to external elements affecting business
activities. It is time consuming process because it requires deep level of market research analysis to
gain reliable credentials. In context with chosen firm, with use of this framework it is for them to
make changes within business & make decisions accordingly. So, importance of carrying out
PESTEL Analysis if further explained below-
 Explore business environment- It is effective framework which assists in understanding
business environment at wider level through which it become easy for businesses examine
& analyse changes within same field affecting workflow. Exploring business environment
leads to achieving competitive edge in market. Moreover it leads to improvement of
functioning, operations at larger level (Kabo, 2017).
 Develop strategy thinking- It is another importance of framework in which it specifies
that adopting of PESTEL leads to development in strategy thinking. Through improving
strategies incorporate sector results in using of resources in most efficient manner. Also,
external thinking get developed at larger level. External & strategy thinking both are crucial
for survival in competitive market effectively (Lamas, 2017).
 Anticipate or forecast future events- It is another reason why it is used by Hilton Food
Group PLC. It also help in anticipating or forecasting future threat or opportunities. It is
beneficial for business as planning is done prior top occur of such events in future period.

Through forecasting of events, decisions making process become more easier. It leads to
implementation of effective strategies at bot external internal level.
 Reduces risk or problems- By carrying out this analysis, leads to elimination risk at large
extent. For example- through examining of environment element, risk associated with each
factors can be reduced which is beneficial at workplace.
Advantages of PESTEL Analysis
 Alternative development- Main benefit of this using of framework is that it helps in
achieving of alternatives development at larger scale. For example- it help in improving
changes of plan while accessing to threat or opportunities. It leads to alternative
development which is beneficial for growth of expansion (Micucci, 2017).
 Cost effectiveness- It is cost effective tool which is used by entity because cost related
within this is low. Further, companies can use it at any time period depending upon their
need or requirements. It is easily used by chosen entity in cost effective way.
 Provide knowledge market- This tools help in providing of detailed knowledge about
market which can be used by entities as strategy. Through gaining broader knowledge , it is
easy to use skilled employees & their capabilities for future development of business.
Disadvantages-
 Overload of data- While carrying out this framework, large amount of information is
obtained by enterprises. Collecting of too much data leads to paralysis by analysis. Thus, it
is important to gather sufficient amount of data.
 Consistent changes- In this tool, changes are made at consistent level which disrupts
environment of workplace & ,makes it difficult for employees to work properly. In relevance
with chosen entity, they have to change their food packaging processes according to external
situations (Oung, 2016).
 External factors- It is one of the most biggest drawbacks of PESTEL as because it is only
based upon analysis of external environment. It does not provide knowledge of internal
elements. In context with chosen entity, they have to use SWOT for determining of internal
factors within business which again leads to planning, employees allocations etc.
Therefore, it is examined that it is important to use this tool so that business goals are
achieved in appropriate way. Moreover, it is also seen that it is duty of superiors to use it in proper
manner which results scanning of business environment in most effective manner. Thus, evaluation
has been also done of framework which reflects whether to use it or not.

TASK 3
Apply PESTEL to analyse external environment
In an organisation, it is important to be aware about business environment so that decisions
are taken with proper considerations. External environment are those which occur externally outside
the corporation. These factors of which occurs outside entity are not controllable. Thus, in relevance
with in viewpoint of selected corporation, they use PESTEL framework for analysing external
environment. It comprise of several components which are further explained below-
Political factors-
It is factor in which it depicts the involvement of government within economy. These
political factors are non- controllable & affects business at wider scale. It includes trade policies,
governmental laws, political stability or instability etc. These political element have deep impact
upon entity's overall work functions. In relation with chosen firm, they also get affected by these
elements because they are located at global level & every country has different types of political
rules or regulations (Peršič, 2019). Due to this political instability, it is difficult for company to
access to growth or opportunities. For example- impact of Brexit has made it difficult for business
to operate globally in effective manner.
Economic factors-
It is another component of PESTEL in which it includes elements such as inflation &
deflation rate, tariff & non-tariff etc. It is also important to focus on such variables so that
everything is carried out properly. In context of undertaken company, due to rise of economies
growth opportunities of business cycle stage is developing at wider level. Furthermore, host country
of chosen entity has developed infrastructure which affects the organisational structure because it
facilitates business environment to carry out activities properly (Pillai, 2018).
Social factor-
It is important component in which it focuses on religion, culture, beliefs, disposable
income of individual, perception of customers, etc. It is essential for entity to focus on these
variables so that decisions are taken accordingly. By focusing on these social factors, it is easy to
target consumer. In relevance with selected firm, marketing department of firm targets their
audience after considering these factors which makes it easier for them to make decisions regarding
business. While focusing on such elements assist business to deliver product or service according to
need or requirement of customers.
Technological factors-

With changing period of time, use of internet has become important & become widen. It is
necessary for every businesses to adopt technology so that they are able to access customers at
larger level. It incudes use of advanced software, tools, software and artificial intelligence. IN this
digital era, people are mostly dependable upon technology. In reference with chosen entity, they
have been also getting affected by these factors as because adaption of social media has shift focus
of customers towards technology. Thus, chosen company focuses on social media & digital
platforms through which they are able to target & understand consumer behaviour. Moreover, it too
helps in accessing to customer insights. Using of technology in business also leads to innovation &
development (Sarmiento, 2016).
Environmental
In this element of PESTEL, it too impacts upon business at larger level. This is because, it
includes pollution, waste management, etc. It is necessary that there need to be proper focuses on
these factors so that business decisions are taken properly. Further, in context of selected entity they
need to adopt environmental practices which will leads to improve goodwill in market & in minds
of customers. The chosen corporations has hired environmental practitioners which help them to
carry out all business activities under consideration environmental laws or legalisations.
Legal factors-
In this element, it depicts legal laws, government polices, agreements, contracts, etc. under
which business activities are required to carried out. In viewpoint of Hilton Food Group PLC, it is
not possible for them to enter into a new market or expand business in foreign countries. The legal
department of corporation make assures that everything is being carried out in appropriate way.
They properly focuses on various types of laws such as consumer protection law, intellectual
property laws etc. Furthermore, it is examined that manager ensures that knowledge or campaign
are being provided to expand information related to such laws (Arafat, 2018).
Thus, it has been stated that PESTEL is an essential tool which is required to be adopted
after carrying out proper market analysis. So, detailed knowledge about framework has explained in
paragraph which shows how chosen firm uses tool.

CONCLUSION
From analysis of above report, it is stated that management is being considered as base of
firm without which it is not possible for enterprises to carry out their activities effectively. It is
essential to make assures that decisions making within business is done in proper manner. This
report gives a brief knowledge about concept of management with organisation. It has been
evaluated that it is necessary to use appropriate form of structure, frameworks, so that both long &
short term objectives are achieved within period of time. Furthermore, it also examined that
business environment impacts upon organisational structure at deeper scale. So, it is responsibility
of manager to ensure management importance in firm at al aspects.

REFERENCES
Books & Journal:
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Analysis.Jurnal Pariwisata Pesona,3(2), pp.145-157.
Ararat, 2017. The effect of corporate governance on firm value and profitability: Time-series
evidence from Turkey. Emerging Markets Review,30, pp.113-132.
Bao, 2019, September. Construction waste cross jurisdictional trade under PESTEL context. In
Sustainable Buildings and Structures: Building a Sustainable Tomorrow: Proceedings of the
2nd International Conference in Sutainable Buildings and Structures (ICSBS 2019), October
25-27, 2019, Suzhou, China (p. 283). CRC Press.
Çitilci, 2020. The Importance of PESTEL Analysis for Environmental Scanning Process. In
Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 336-
357). IGI Global.
Kabo, 2017. A model of potential encounters in the workplace: the relationships of homophily,
spatial distance, organizational structure, and perceived networks. Environment and
Behavior,49(6), pp.638-662.
Lamas, 2017. Using Analytic Hierarchy Process to Optimize PESTEL Scenario Analysis Tool in
Huge Construction Projects. In Applied Mechanics and Materials (Vol. 865, pp. 707-712).
Trans Tech Publications Ltd.
Micucci, 2017. Debt restructuring and the role of banks’ organizational structure and lending
technologies.Journal of Financial Services Research,51(3), pp.339-361.
Oung, 2016.Energy Management in Business: The Manager's Guide to Maximising and Sustaining
Energy Reduction. Routledge.
Peršič, 2019. Public governance, corporate governance, and firm innovation: An examination of
state-owned enterprises.Academy of Management Journal,62(1), pp.220-247.kič, M. and
Peršič, M., 2018. The impact of socially responsible management standards on the business
success of an organisation.Total Quality Management & Business Excellence,29(1-2),
pp.225-237.
Pillai, 2018. On the relationship between corporate governance and firm performance: Evidence
from GCC countries.Research in International Business and Finance,44, pp.394-410.
Sarmiento, 2016. Disaster risk management and business education: The case of small and medium
enterprises. AD-minister, (28), pp.73-90.