Contemporary Developments in Business and Management

Contemporary
Developments in
Bussiness and
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explanation of the external influences on the company and their impotence in for the
company......................................................................................................................................3
TASK 2............................................................................................................................................5
Definition of the marketing communication mix and their influences on the polices and
decision-making of the company................................................................................................5
Critically evaluate the effectiveness of the organizational response...........................................7
Demonstration of the some areas in the company for the improvement in the response............9
CONCLUSION .............................................................................................................................10
REFERANCES..............................................................................................................................11

INTRODUCTION
The company and coordination of the business activities in order to achieve their business
objectives and goals (Abdulahi and Aykan., 2016). Management consist with the interlocking
functions to creating a polices for the company, controlling, planning, organizing resources of
the company in order to achieve the objectives of the polices which is set for the company.
This report will cover the Lukoil company for the case study which is oil company and
their headquarter is in Russia. They sell petroleum, natural gasses and many more. This report
will provide PESTEL analysis of the Lukoil company and explain how factors such as political,
environmental, economical, technological etc impact on the company in the both ways positive
and negative. This will be covers in the task one and in the task two this report will conclude
marketing communication mix and explain that what are the influence of marketing
communication mix in companies polices and decision-making. It will also critically evaluate
the effectiveness of the organizations response and in the end this report will provide
recommendation for the improvement in the response of the company and it will provide proper
solution and way in which company can use it for the marketing, and they can attract customers.
TASK 1
Introduction
This task will cover provide definition of the internal and External environment. It will
also provide pastel analysis of the Lukoil company to understand external influence and their
importance for the company. This report will conclude factors such as political, economical,
social, technological, environmental and legal factors.
Explanation of the external influences on the company and their impotence in for the company
Internal environment
Internal factors refers to the events, culture and factors within the company which has a
ability the companies decisions. Especially the behaviour of the HR.
External factors
External environment is composed with the outside factors. These factors have huge
impact on the operations and activities of the company. These factors are divided into two parts
which is micro and macro environment.
PESTEL analysis of Lukoil company

PESTEL Analysis is proper framework which is helpful to understand external factors
which affect the profitability of the company. There are some factors such as Political factor,
economical factor, Social, technological, environmental and legal. Lukoil company should aware
about those factors to control risk.
Political Factor
Political factor can impact on the probability of the company and survival of the Lukoil
company. Company have both positive impact and negative impact. Lukoil company is
multinational company, and they are selling gas in all over the world, so they have to pay taxes
to each and every county's government (Brewster., 2019). If any countries Tax structure change
then it can effect the probability of the Lukoil company, and they have to increase their prices
of their product, but on the other hand many country's government encourage gas companies, so
they can can provide employment to their country people and government also give benefits to
the companies. This can help Lukoil company to achieve growth, and they can earn more
revenue.
Economic Factor
Economic factored such as unemployment rates can effect the Lukoil company. There
are many countries where unemployment rates are every high and prole are ready to work in
their company in lower salary. This can be effect their growth, and they can get skillful workers,
and they have to pay minimum wages (Derous and De Fruyt., 2016). Countries such as Africa,
Pakistan etc have low employments rates so their works get ready to work in lower wages but if
any county's employment rate is high it means they are well-educated and Lukoil company have
to pay more salaries to them, and they have to pay their salaries if company is suffering from
losses. This is an economical factor and there are many other factors which can also effect the
company such as inflation rates, GDP rates etc.
Social factors
Distribution of the class in the population is of paramount importance; Lukoil company
will not able to advertise and promote their premium products to the community, it most of the
people belong from the middle class family. They will not able to purchase those products
because they will not able to afford, so they would have to relay with the niche marketing.
Lukoil company also providing employment to the needy people and this shows that they know
what's their social responsibility. This is creating customers loyalty, and they are also gaining