Strategic Management in British Gas Limited Company

strategic management

Table of Contents
INTRODUCTION.................................................................................................................................3
Task 1....................................................................................................................................................3
External influence to organisation.....................................................................................................3
Task 2....................................................................................................................................................6
Corporate social responsibility and sustainability..............................................................................6
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................12

INTRODUCTION
Strategic management is defined as approaches and strategies use to manage the
operations of organisation. This report is based on the case study of British Gas Limited
Company. The organisation was established in the year 1997. Headquarter of the company is
located in Staines - upon- Thames, United Kingdom. Company deals in gas, electricity,
boilers and central heating, plumbing and drains, renewable energy and home appliance
services. Company serves its operation across the United Kingdom. This report will project
about different aspects related to strategic management in company. Henceforth, report will
emphasis on influence of various external factors over the organisation strategic management
policies and strategies. Furthermore, report will also emphasis on the influences of corporate
social responsibility and sustainability over the policies and decision making of the company.
This report will further analysis about the effectiveness in relation to the organisation
response. Report will also put its eye on different areas of improvement in the organisation
policies and strategies in regards to the corporate social responsibility operations.
Task 1
External influence to organisation
External influence is defined as all such external factors put an impact over the
organisation presence in respect to the corporate social responsibility function. In order to
assess about the external influences PESTEL Analysis is the most relevant tool to use.
PESTEL Analysis
PESTEL Analysis is a diversified tool used to analysis about the influences external
factor creates over the organisation. This tool involves many factors like political,
economical, social, technological, environment and legal factors. All such factors are the sum
of different external influences organisation face in order to conduct the business operations.
Political factor: Political factor is among the key external factor influences over the
organisation. Political factor in PESTEL Analysis tool give emphasis to assess different
policies and strategies government has framed in respect to corporate social responsibility
operations associated with the companies. Government all across the globe give huge
priorities to conduct the corporate social responsibility functions as companies take all the
resources from the society which enables them to give back whatever they have taken form

the society. Political stability is also a huge factor influences operations undertaken by the
British Gas Limited Company. Stable government situation on makes him able to run the
stable policies and strategies for the operation function (Alvarado-Herrera and et.al.,2017). It
also allows British Gas Limited Company to frame long term policies and strategies in order
to channelize the corporate social responsibility function of company. Stable government also
able to support companies to conduct more effective corporate social responsibility
operations.
Economical factor: Economic factor is also a key external influences company needs to deal
with. Economic factor involve economic stability in the United Kingdom. Currency exchange
rate, taxation policies of government and other key economic factors impact over the business
of company. It is projected that economic factor is among the most aggressive external factor
impact over the business of the British Gas Limited Company (ArAs, 2016). All prices offer
by company over different products deeply affected with the economic factors associated
with the United Kingdom. Inflation in the economy is also a key external influence company
needs to face. Inflation directly affect over the prices offer by company. Inflation further
restricts the purchasing capacity of the customers. It is projected that in case of corporate
social responsibility functions economic factor do not get to create the much impact except
over the profitability of the company. Profitability further impact over the budgets set for
conducting different corporate social responsibility functions undertaken by the British Gas
Limited Company. It can be stated that economic factor influences the corporate social
responsibility functions but in indirect manner.
Social factor: Social factor is another key external factor influences over the operations of
the British Gas Limited Company. Socials factor involves how the culture and society in
United Kingdom approaches the corporate social responsibility operations undertaken by
companies. It also involves how much the society in United Kingdom is aware about the
social responsibility and various environmental issues society is dealing with. Government in
United Kingdom also run different campaigns to spread awareness in respect tothe social
responsibilities so that more effective contributions from the society can be received
(Asmussen and Fosfuri, 2019). British Gas Limited Company conducts different social
responsibility operation as a part of the corporate social responsibility activity that involves
plantation, water harvesting and other key operation. Company make awareness with the
support of different marketing campaigns in respect to company’s initiative for the social
responsibilities. With the support of all such campaigns management of the British Gas