Business Environment: PESTEL Analysis and Impact on Man Group Plc

Business Environment
1

Executive Summary
Business environment comprises of various factors, both internal as well as external.
They can impact the way in which an organisation carries out its operations in the market. In
order to get a complete understanding of these factors, a PESTEL analysis can be used which can
help in formulating effective strategic plans to gain competitive advantage and stand out against
competitors in the market. The analysis provides information about political, economic, social,
technological, environmental as well as legal factors and the kind of impact they can have upon
the functioning of a business. Therefore, all organisations should conduct a PESTEL analysis
when they decide to launch a new product or service in a new market.
2

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
3

INTRODUCTION
Business environment can be defined as the collection of all internal as well as external
factors such as customers, suppliers, employees, technology, market trends etc. All these factors
in the business environment can impact the performance of a business either directly or indirectly
(Alotaibi, 2016). Organisation chosen for this report is Man Group Plc, which is an investment
management firm that is mainly focussed on delivering attractive client portfolio solutions by
using the latest technology. The company provides excellent services to its customers in order to
stay ahead of competition. The report provides an overview of the company, its organisational
structure and the way in which it is governed. It also explains the importance of PESTEL
analysis for a business and the different factors that can impact the selected company.
TASK 1
Man Group Plc is a leading investment management firm that founded in the year 1783
by James Man. The company is headquartered in London, United Kingdom and provides a wide
range of funds and other investment products to different investors. The company employs
nearly 1000 people in various locations worldwide. Man Group is one of the leading players of
Europe and constantly invests in latest technologies. The company uses scientific methods that
are advanced and help it make informed decision.
History
Man Group Plc is a company that has a trading history expanding over 250 years with an
experience in global investment banking of 25 years. The history of the company goes back to
the year 1783 when it was founded by James Man as a sugar brokerage and cooperage in
London. In the year 1784, the company was awarded a contract to supply rum to the royal Navy .
It expanded further by trading commodities like coffee, cocoa, sugar at various coffee houses of
London in the year 1802 (Erasmus, Strydom and Rudansky-Kloppers, 2016). For commodity
trading, Man Group moved to Mincing Lane which a hub in London for the same in 1810. The
respective company established its first overseas operations in 1972 in Hong Kong as well as
New York. The next year was a complete turnaround as the company celebrated its 200th
anniversary and diversified into financial services. 1987 and 1989 were big years for the
company as AHL was founded and became a part of Man Group.
4