Strategic Analysis of Royal Mail Group

STRATEGIC ANALYSIS

INTRODUCTION
Strategic analysis plays a crucial role in effective functioning of an
organisation. It helps in identifying the strengths and weaknesses held
by the entity (Song, and Tsai, 2017). In addition to this, it renders
assistance in examining the external micro and macro factors that can
impact upon the business. With this understanding firms can gain
competitive advantage. In the present report, the significance of
strategic management will be evaluated. Besides this, various factors
that can have impact on the effective business functions will be
analysed. For this examination some tools that will be used are
PESTLE, Porter's five force analysis and value chain analysis.
For the present undertaking, the entity selected for the analysis of
strategies is Royal Mail Group. All the internal and external factors that
can impact upon the entity will be analysed in this report. Further, some
major issues of firm will be identified and strategies will be prepared
for their evacuation.

PESTLE Analysis
 Political Factors:The impact of political factors on the effectiveness
of a business is the biggest.
 Economical Factors: These factors involves the broader economic
factors that can impact upon the effective functioning of a business.
It involves the current interest rate, growth rate, GDP, etc.
 Social Factors: These are the societal influences that may or may
not support a business. In context to the present case, they are not
favourable for the growth of Royal Mail.

 Technological Factors: The impact of terotechnological factors is
major in terms of the selected firm. The chosen entity deals on
mailing and parcel shipping which is nearly replaced due to the
advancements in the technology.
 Legal Factors: The legal factor were always in support of the Royal
Mail. It should be noted that even after the privatisation, the entity
keeps various legal obligations that are not present to the other
competitors (Schutte, and Barkhuizen, 2016)
 Ecological Factors: The losses to the environment due to this
company are minimum. The only source affecting the environment
is associated with the transportation services.