Examining Organizational Structure and PESTEL Analysis of Pure Tech Health Plc

This report discusses the organizational structure and governance of Pure Tech Health Plc, a leading biotechnology organization in the United States. It also explains the importance of PESTEL analysis and how it can be used to analyze the external environment of the company. The report covers political, economic, social, technological, environmental, and legal factors that may affect the company's operations. Subject: Business Environment

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examining how chosen organization is structured and governed................................................3
TASK 2............................................................................................................................................5
PESTEL Analysis and its importance..........................................................................................5
TASK 3............................................................................................................................................6
Using PESTEL model to analyse external environment of Pure tech health Plc........................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment term connoted external factors or forces that are beyond control of
any company or venture, and they affect current organizational functioning. Each factor that
encompass in this term put direct impact on existing practices and decision-making process of
companies whether it is small or large. The current assignment will be based on Pure-Tech health
Plc, which falls under the category of leading biotechnology organizations in the United States.
The study will explain how chosen company is governed and formed and will also define
significance of carrying out PESTLE analysis for a firm. Furthermore, lastly the report will
justify use of this framework to determine external environment of chosen firm.
TASK 1
Examining how chosen organization is structured and governed
Pure-tech Health Plc is the best biotechnology firm in the US, where it effort to develops
medicines in a bulk to prevent people and combat major diseases (Ripp and Shanafelt, 2020). It
known as clinical stage bio-therapeutics firm that highly dedicated to create, discover, and
commercialize differentiate medicines for devastating serious diseases, such as fibrotic,
inflammatory, immunological conditions, lymphatic, intractable cancers, etc. It was founded in
2005, by Daphne Zohar who is an American business man. In 2015, organization may become
subject of an initial public offering.
Pure tech health may create a wide and deep network through which it may attempt to
provide satisfactory and beneficial products to individual people. It may develop broad pipeline
via expertise of its development group and experienced research. Organization may have
extensive network or chain of scientists, industry leaders and clinicians, who may contribute to
increase the productivity and operational efficiency of its venture. The pipeline of firm that may
being advance both internally and via Pure tech Founded units, is encompasses of 26 goods and
item candidates, including two specifically that may have obtained European marketing
authorization and FDA clearance. It may take initiative to advance scientific breakthroughs to
each patient. Organization may concentrate on producing those medicines that are related to
brain, gut system and immune diseases. With more than 138 experience workers, it may take
action to grow and enjoy continuous success within health care industry.
Organizational structure of Pure tech Health Plc-
Number of board of directors-

Organizational structure covers number of stakeholders that known as executive and non-
executive directors and name of other. It may follow divisional form of business structure, which
allow firm to operate within health care sector through two segments such as project and growth
stage ventures.
Former executive of major pharmaceutical organizations, award wining academic
leaders, entrepreneurs and clinical expert who may leverage their skillfulness and operational
efficiency to support management in the context of aim achievement. All these stakeholders are
included in list of board.
Company may have 2 executive and 5 non-executive directors in board, who may take
initiative to achieve set aim and objectives of brand, by providing effective ideas and engaging
themselves in decision-making process.
The group of 8 people build boards of directors set that provide unexpected benefits to
company in term of sharing personal experience and using to reach at expect outcome. With the
help of their effective suggestions, organization may improve health of its patients quickly.
Chairperson of firm-
Christopher Viehbacher is the chair man of Pure Tech's health Plc and served his services
since 2015 as member of board of directors (Pure-Tech Health, 2021). He effort to manage
partner of Gurnet Point Capital as a investment fund association based on Boston. Viehbacher is
the former chairperson and important member of board of Sanofi. He plays vital role in regard to
organizational success by taking initiative to run meetings in a way that influences decisions. He
conducts ethical business practices and encourage everyone to conduct open and fair discussion
of matters.
Daphne Zohar is the chief executive officer of Pure Tech Health Plc and founder of the
organization. She served as founding chief executive person of firm founded entities. As a
successful business woman, she took initiatives to lead a team of skilled employees to help
implementation of strategic plans and achievement of set goals. In recent time, Zohar had
recognized as a top entrepreneur and innovator in biotechnology by a number of effective
sources.
When chairperson and CEO were appointed and elected-
Daphne Zohar as American entrepreneur was elected in 2010 within organization as chief
executive officer. He was also selected as one of those 25 leaders who contribute to make

organizations successful and productive in the world of health care. In 2011, she was listed as
one of Boston Venture Journal's woman to watch in very next year named as most powerful and
strongest female voice in health care industry.
Christopher Viehbacher was also elected within chosen organization in 2008 as chairman
of pharma company in US.
TASK 2
PESTEL Analysis and its importance
PESTEL Analysis is a framework used by companies to scan the external factors that can
affect structure of an organization, or industry adversely. Further, they are also significant in
knowing the threats / weaknesses during drafting a SWOT Analysis. PESTEL Model consist of
political, economical, social, technological, environmental, and legal factors.
Importance:
 Deep and easy understandability: Some key valuable points are ignored by the
business regarding the external forces that can directly or indirectly affect an
entity (Paurova and Gregova, 2020). Therefore, for resolving this issue
organizations has adopted a PESTEL Model to analyse various changes that can
become hurdle in the process of launching new product, diversification, etc. For
example, a company may face challenges by overlooking the consumer laws that
is beneficial for their employees, technological barrier, etc. So, to overcome this
and having successful product organization must do thorough study of the model.
 Research and development: The demand of this analysis arises when the firm
need to launch a new product. Further, they need to identify whether prescribed
segment of goods will survive the competition or not, what should be its strategic
plan etc. Moreover, by this potential threats are identified easily that they can face
during and after bringing out new commodities in the market (Febrian and
Ahmad, 2021). For example, the target audience for a company to sell its
merchandise is below age 18. But, new government rule came out that chemicals
used to manufacture product is harmful for kids health. Consequently, now the
entity have to stop further production and bear losses. Protection from such
disasters can be given by PESTEL Analysis to the company at a time of
development.

 Identification of opportunities: Opportunities can be either internal or external.
But these are often prevail externally, impacted by outside forces. PESTEL
Analysis, aid to grab opportunities and strengthen entities business model
(AKMAN, 2020). For example, in today's era the use of digitization is becoming
sensation for doing any kind of work and this situation arises due to a negative
economic impact. Therefore, companies can recognize such chances through this
study and adopt in the organization before their competitors.
 Cost effectiveness: Time and effort are the only cost of PESTEL Analysis.
However, additional programs can aid to organize data with feedback, but this
model can be completed by using only pen, paper and analytical mind to identify
the barriers (PESTEL Analysis: Definition, Examples, Importance & Advantages,
2021). The task of analysis can be done by any team or individual and leads to
better result. For example, an individual in a company is very much capable with
strategic thinking mind, i.e., analysing an external forces by investigating and
doing thorough research of the changes. He will be handling this department of
analysis only so that to bring success in the firm by pre determining an upcoming
alteration.
 Aid to decision-making: PESTEL model help to take appropriate and timely
decision. They will guide the organization whether to move forward with
following project or not, does it give benefit in long run, etc. Moreover, access a
market including competitors from the standpoint of particular business. For
example, a company want to produce certain products, by knowing whether the
project is viable or not. So their, need will arise, either to make or import, market
growth impact, etc. and these can be fulfilled only by an environment analysis.
TASK 3
Using PESTEL model to analyse external environment of Pure tech health Plc
Political factor-
Any form of fluctuation related to political factor such as trade, tax policy and other
activities, may affect sales and success of organizations whether it is small or large. In case of
Pure Tech Health Plc, changes within government decision-making activity due to pandemic
may put negative impact on brand, in term of putting a lot of pressure to develop those specific

medicines which help to prevent spread of infection worldwide. Furthermore, just because of this
factor, medical agencies and health care companies like chosen one may feel too much pressure
to deal with current challenge (PEST Analysis of The Healthcare Industry, 2018). It may affect
the whole world and each sector whether it is health care or hospitality. But due to human
infection, medical industry may affect the most, which drive its attention to take strategic action
and increase current productivity level. It also put pressure to take better care of Covid patients
who need extra care and attention, as millions of them are unable to take breath properly and die
because of that reason.
Economic factor-
Changes related to economic factors like inflation, unemployment rate, interest rate, etc.
may put impact on a company. For example, due to pandemic which outcome in lock-down,
many individual may losses their jobs. In term of opportunity, organization may take initiative to
take benefit of hiring local or jobless people who may have great knowledge about medical line
and able to serve appropriate service to patients that are Covid infected and need better care or
cure on time. Pure tech health plc and its human resource management team may develop plan to
recruit individuals as new staff member who may take action to save the life of many patients in
form of providing medicines to them, checking their blood pressure and taking some important
test like blood test, etc. It can be said that this factor may put positive impact on organization in
term of increasing its productivity and operational efficiency, even better than last few years,
which is quite essential and beneficial for firm success and image in industry.
Social factor-
Change in the context of societal values, market trends customers habits, their buying
behaviour and values affect existing plans, strategies and initiatives of companies. In case of
Pure Tech Health Plc, online purchasing is one of those market trends that people or individual
person in the world prefer to follow because it helps to save their time and effort in regard to take
steps out of home or other places for purpose of shopping and buying some products which they
may need and purchase according to requirements. It may put positive impact of productivity and
effectiveness of company in term of driving its attention towards developing new mobile
application, through which individual patient by consulting with health care expert may order
medicines according the issue that they may recently face. As social factor, online shopping

trend may put positive impact on organizational success and excellent progress. It may contribute
to enhance the satisfactory level of all patients and enable them to take medical service 24 hours.
Technological factor: Technology advancement as technological factor is becoming
crucial in today's era, because it contribute to enhance the productivity of many companies. In
case of health and care sector, this factor may put positive impact in term of providing excellent
opportunity to organization in form of developing own mobile application. As the whole world
are suffering from infectious diseases i.e., COVID- 19 (ARUNACHALAM and FOUNTIS,
2021). When a company want to meet with standards and contribute to overcome the negative
impact of pandemic crisis, it may develop such apps and then take action to serve on time
medical services.
Due to this pandemic old age people are strictly not allowed to move outside their home
because they get infected from spread of COVID-19 infection which may put negative impact
upon their mental and physical health. Therefore, online application may help old age generation
to consult with the specialist doctor by sitting under the roof only to cure their minor diseases.
Pure tech health plc may also grab this chance and develop its own mobile application where
they may provide their patients with consultation facilities by accompanying door to door
medical benefit. Hence, online platforms becomes boon for both medical sector and common
man as the doctors' consultation services may work 24*7.
Environmental factor-
In recent time, due to lack of environmental sustainability and increasing extent of land,
air and water pollution, individual person and government within each nation may concentrate on
driving attention of organizations including chosen one to take action to prevent world from
being polluted. This factor may put positive impact on Pure tech Health Plc as firm may already
take initiative to be sustainable organization while operating and managing business functions
within health care sector. Furthermore, climate change is also included in category of
environmental factor that put negative impact on supply and demand of medicines when firm
may choose road transportation as distribution channel. It may put a lot of pressure on company
to reach at distributor who may delivery medicines from own outlet to other locations where
people may reach easily. It drives the attention of firm towards choosing another transportation
source, which enable it to overcome this factor impact and be competitive as well as productive
in today's critical situation.

Legal factor-
Changes in laws related to workplace and patients safety may put negative impact on
current management activities and strategic actions of organization. For example, it may put
pressure on firm to take new terms and conditions in the context of health and safety act at
workplace, which is not possible to conduct into practical manner in short term duration. It
consumes a lot of time and require resources, when firm take decision to implement now. It can
be said that providing a safe and secure working environment organization may grab benefits of
becoming productive and supportive brands in time of crisis such as COVID-19. But still
changes in regulations may affect negatively, which is important for company to consider.
CONCLUSION
From above analysis, it has been concluded that by following terms and conditions as
well as laws, organization has gained key benefits. It has obtained positive outcomes in term of
achieving set goals by considering each external factor and developing effective plan to
overcome or prevent their negative impact upon current management activities. Furthermore, by
summing up above discussion, it has been summarized that PESTLE framework has enabled
organization to sustain its venture within health care sector for longer time period, which made it
capable to gain competitive edge.

REFERENCES
Books and journals
AKMAN, M.K., 2020. DEFENCE MANAGEMENT AND PESTLE ANALYSIS. ANTE
PORTAS. p.93.
ARUNACHALAM, V. and FOUNTIS, A., 2021. A research study on the Sustainable
Competitiveness and the Macro Economic Factors of the IT Sector in India which
contributes to sustainability and the rise of social development. Journal of
Contemporary Issues in Business and Government. 27(3). pp. 1548-1556.
Febrian, F. and Ahmad, N. F., 2021. Internal and External Factors Affecting the Sales in Online
Platform of Hype Drinks. Jurnal Minds: Manajemen Ide dan Inspirasi. 8(1). pp. 89-
106.
Paurova, V. and Gregova, E., 2020, December. Importance and Process of Marketing
Environment Analysis as Strategic Analysis Tool of Business. In Fifth International
Conference on Economic and Business Management (FEBM 2020) (pp. 720-723).
Ripp, J. and Shanafelt, T., 2020. The health care chief wellness officer: what the role is and is
not. Academic Medicine. 95(9). pp.1354-1358.
Online
PEST Analysis of The Healthcare Industry. 2018. [Online]. Available Through:
<https://pestleanalysis.com/pest-analysis-of-healthcare-industry/>
PESTEL Analysis: Definition, Examples, Importance & Advantages. 2021. [Online]. Available
through: <https://studiousguy.com/pestel-analysis-definition-examples-importance-
advantages/>.
Pure-Tech Health. 2021. [Online]. Available Through: <https://theorg.com/org/puretech-health-
plc/org-chart>