L/508/0485 - Unit 1 - Business and Business Environment

Student Assignment Covering Form
Course/Unit Information
Course Pearson BTEC Level 5 Higher National Diploma
Unit No. Unit 1
Unit Name Business and the Business Environment
Unit code L/508/0485
Batch SSA-BBE- Sharmila Subramaniam -2006
Instructor Information
Name Prof. Sharmila Subramaniam
Phone [phone]
Email [e-mail]
Assignment Information
Full/ Part Assignment Full
Date Assignment Issued June 6, 2020
Date Assignment Due June 27, 2020
Turn it in ID 25113740
Turn it in Password BBE2006
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(To be filled by the student prior to submitting the assignment)
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2

Achievement Feedback Summary
Assessor’s Name Prof. Vivek Mohan
Pass Merit Distinction Grades Awarded
LO1 Explain the different types, size and scope of
organisations
LO1 and LO2
D1 Provide a critical
analysis of the
complexities of different
types of business
structures and the
interrelationships of the
different organisational
functions.
P1 Achieved/Not
Achieved
P2 Achieved/Not
Achieved
M1 Achieved/Not
Achieved
P3 Achieved/Not
Achieved
M2 Achieved/Not
Achieved
D1 Achieved/Not
Achieved
P1 Explain different types
and purposes of
organisations; public,
private and voluntary
sectors and legal structures.
M1 Analyze how the
structure, size and scope of
different organisations link
to the business objectives
and product and services
offered by the organization.
P2 Explain the size and
scope of a range of different
types of organisations.
LO2 Demonstrate the interrelationship of the various
functions within an organisation and how they link to
organisational structure
P3 Explain the relationship
between different
organisational functions and
how they link to
organisational objectives
and structure.
M2 Analyze the
advantages and
disadvantages of
interrelationships between
organisational functions
and the impact that can
have upon organisational
structure.
LO3 Use contemporary examples to demonstrate both
the positive and negative influence/impact the macro
environment has on business operations
LO3 and LO4
D2 Critically evaluate
the impacts that both
macro and micro factors
have upon business
objectives and decision-
making.
P4 Achieved/Not
Achieved
M3 Achieved/Not
Achieved
P5 Achieved/Not
Achieved
P6 Achieved/Not
Achieved
M4 Achieved/Not
Achieved
D2 Achieved/Not
Achieved
P4 Identify the positive and
negative impacts the macro
environment has upon
business operations,
supported by specific
examples.
M3 Apply appropriately the
PESTLE model to support a
detailed analysis of the
macro environment within
an organisation.
LO4 Determine the internal strengths and weaknesses of
specific businesses and explain their interrelationship with
external macro factors
P5 Conduct internal and
external analysis of specific
organisations in order to
identify strengths and
weaknesses.
M4 Apply appropriately
SWOT/TOWS analysis and
justify how they influence
decision-making.P6 Explain how strengths
and weaknesses interrelate
with external macro factors.
3

Overall Feedback Summary
Over All Grade PASS/MERIT/
DISTINCTION/REDO Date DATE:
[To Achieve a PASS, all P grade descriptors should be achieved; To achieve a MERIT, all P and M grade
descriptors should be achieved; To achieve a DISTINCTION, all P, M and D grade descriptors should be
achieved.]
Summative Feedback
Overall feedback on
current work with
emphasis on how the
student can improve and
achieve higher grades in
future.
4

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5

Business and the Business Environment: Assignment
Task
Assignment title
Organizational Types, Functions and Structures
and Business Environmental Analysis.
LO1: Explain the different types of organisations, including their size and scope.
LO2: Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure.
LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations.
LO4 Determine the internal strengths and weaknesses of specific businesses and
explain their interrelationship with external macro factors.
Scenario
Choose any organisation of your choice. The organization can be any Manufacturing or Service
based entity where you are either currently working of have worked previously. You can also
choose any global organization- Public/Private/Government which has its presence in the UAE.
You are to assume the role of a Junior Business Analyst in your chosen organisation. Prepare and
submit a report for the chosen organization in light of the EXPO 2020 in the following suggested
format; by first referring to the document through this link
https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/About-Deloitte/
mepovdocuments/mepov13/dtme_mepov13_Expo%202020.pdf
1. Introduction
Refer to academic sources to define and explain comprehensively the purpose of a public, a
private and a voluntary organisation. Explain the different types of organizations’ legal
structures along with different organizational sizes. Briefly analyse how the structure, size and
scope of organizations link to the business objectives, products and services offered.
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2. Company Specifications
2.1. Company Profile
Introduce your chosen organisation, by giving out the background details of the
organisation, the products and services they offer, the size and scope of the organisation,
their vision, mission and business objectives, the organisational and legal structure,
including information about their stakeholders and competitors.
2.2. Analysis
Use and refer to the organisational structure chart of the chosen organisation. Explain the
relationship between the organization’s functions and how they link to the organisational
objectives and structure. Analyse the advantages and disadvantages of interrelationships
between different organisational functions in your chosen organisation, and the impact it
has on the structure of the organisation.
2.3. Comparison and Contrast with another business set up
Thereafter, choose a government/public/voluntary company and critically analyse the
differences observed with those of your chosen organisation by understanding its business
structure and its interrelationship on different organisational functions.
3. Environmental Analysis
3.1. Macro Environmental Analysis
Apply the PESTLE model to support the detailed analysis of the macro environmental
impact. Identify the positive and negative impacts the macro environment has upon your
chosen company’s business operations, by giving out suitable examples.
3.2. Micro Environmental Analysis
Appropriately use and apply the SWOT model to conduct an internal analysis of the
strengths and weaknesses of the chosen organization.
4. Critical Evaluation, Conclusion and Recommendations
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Explain how the outcomes of the PESTLE and SWOT interrelate with each other and critically
evaluate the impact on the business objectives and how they influence decision making in the
chosen organization. Based on the critical evaluation, recommend changes which would help
out the company further, in pursuit of their business objectives and decision making in light of
EXPO 2020.
NOTE: The submission on the LMS is in the form of an individual written report. This should
be written in a concise, formal business style using single spacing and font size 10. You are
required to make use of headings, paragraphs and subsections as appropriate, and all work
must be supported with research and referenced using the Harvard referencing system. Please
also provide a bibliography using the Harvard Referencing System. The recommended word
limit is 5,000–6,000 words, although you will not be penalized for exceeding the total word
limit.
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Your answer will start here
Types of Organizations
• Public organization: In general terms, the public sector consists of
governments and all publicly controlled or publicly funded agencies, enterprises, and other
entities that deliver public programs, goods, or services. Examples for public sector
organizations are:
• Education
• Electricity
• Emergency Services
• Fire Service
• Healthcare
2. Private organization: The private sector is the part of a country's economic system
that is run by individuals and companies, rather than the government. Most private sector
organizations are run with the intention of making profit. Examples for private sector
organization are :Sole Proprietors: Designers, Developers, Plumbers, Repairmen.
• Partnerships: Dentistry, Legal, Accounting, Tax.
• Small and Medium-sized Businesses: Retail, Hospitality, Food, Leisure, Legal
Services.
• Large Multinationals: Apple, Tesla, Disney & Gamble, PepsiCo.
3. Voluntary organization :The Voluntary Sector is usually comprised of organizations
whose purpose is to benefit and enrich society, often without profit as a motive and with little
or no government intervention. Examples for voluntary organizations are :
• Charities: World Vision
• Foundations: Bill and Melinda Gates Foundation
• Social Welfare Organizations
Scope of businesses
The scope of business is very comprehensive. It encompasses all human activities, which
tend to satisfy needs and wants of the human beings living in a society. A large part of the
business is concerned with providing the final or finished products or goodsto the desired
people.
The nature and scope of business are changing very quickly. The people, who are engaged in
business, must have to cope with the changing environment because the people’s attitudes,
habits, testes, likes and dislikes, norms, beliefs, values, perceptions and motives are changing
with the change of time.
Merchandising businesses:
The practice and process of selling products to customer is called merchandising.
Mechandising is use to influence their customer and reach their sales goals digital or in store .
The merchandising strategy mainly depends on the factors such as available space , quality
products.
Examples for merchandising businesses are:
• Movies
• Polictial Campaigns
• Sports Merchandising
• Advertising Icons
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Manufacturing Business:
Any business that uses raw material products and components to finished goods is
manufacturing business .They often employ robots , computers , robot machines etc. It
enables a product step by step for moving ahead.
Examples for manufacturing businesses are:
• General Electric
• Mack Trucks
• 3M
• Global Finishing Solutions
HYBRID BUSINESSES:
This is the kind of bisuiness which uses traditional as well as internet technology to penetrate
new markets and make its products easily available. Its advantage could be that these offer
more convenience for customers to complete transactions. They don't have to go through a
long tiresome process to pay because of an online payment system. This causes cash flow to
become faster and saves money on staffs and various other expenses. they are constantly
growing and e-commerce has become a major part of many huge businesses ..
SERVICE BUSINESS:
Instead of selling physical products when a company generates income is known as service
company.
Size of businesses:
Small businesses: These bisuiness consist of very few employees perhaps even as less as 50
with an approximate revenue of $5.6m dollars.
Medium BUSINESSES – These include employees more than 50 but leads than 249. The
revenue turns out to be approximately 22.8 million dollars.
Large – Large businesses have employees more than 250 in number and has a revenue
greater than 22.8 million dollars.
LEGAL STRUCTURE OF AN ORGANIZATION
Functional Structure: This is the most prevalent type of organisation structure. Here
departmentalisation according to specialisation is done and the company is divided into
smaller functional units such as IT, Finance and marketing. This allows greater productivity
since employees of similar skills and abilities are put together. One of the major disadvantage
is that it reduces flexibility and reduces innovateive ideas. however there awe cross
traditional department lines formed to tackle this issue.
For example the staff working under the finance sections is called by the HR manager to
tackle a situation interconnected to this area.
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DIVISIONAL STRUCTURE:
The organization that organizes the activity of the companys products and services in the
market. They are divided to handle its complete set of functions . They handle its own
accounting activities, sales and marketing and production, this is also helpful in decision
making, and is useful when clustered at the division level to react fast to basic conditions.
The divisional structure is helpful to the company, it can cause higher total cost and can lead
to small quarelling within the company. The global divisions includes Frito-Lay North
America (FLNA), Latin America, Europe Sub-Saharan Africa (ESSA), North America
Beverages (NAB), Quaker Foods North America and Asia, Middle East & North Africa
(AMENA). A real life example of the divisional structure is PepsiCo’s structure (“Global
Divisions- PepsiCo”, 2018)
MATRIX STRUCTURE:
A matrix organization is defined as one in which there is dual or multiple managerial
accountability and responsibility(Stuckenbruck,1979). However, the term matrix means quite
different things to different people and in different industries . In a matrix there are usually
two chains of command, one along functional lines and the other along project, product, or
client lines. Other chains of command such as geographic location are also possible. Example
just imagine that you are a video producer in an advertisement company and you have got
to report to the management department of media , your departmental head . You will also
have to be accountable to the person assigned for a particular task for a customer the task
manager is your head in the chain of command of the project. Every technical activities of the
workers is the responsibility of the task manager in there department , this is a video
production case. On the other hand the task manager is the one who is responsible for the
performance overall .
LINE STRUCTURE: This is considered as one of the easiest and cheapest method. In this
method of organisation the authority flows from top to bottom i.e.: the line of command. It is
also called as sclaar organisation. The line of command has no communication or
coordination issues. The main features of this includes that specialised services are not
available in this organisation. Control can be maintained since line officers can take
independent decisions, It is also the most elementary form of organisation.
HYBRID STRUCTURE:
A hybrid organizational structure combines one or more of the classic methods.Classic
structures — such as product or functional — may not provide companies with the best
organizational method for their business (Vitez, 2017). Hybrid organization structures may
initially be set up as a product structure, but then each product line will share resources
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among the different departments in each line. This avoids the duplicity of functions that
essentially perform the same tasks for each product line.
PROJECT STRUCTURE:
A project-style organizational structure is a form companies used based on their functional
operations.This process involves setting specific job responsibilities, creating a line of
authority for managers and creating a decision structure for major business issues or
opportunities (Vitez, 2017). According to Reference for Business, project organization falls
along the lines of a functional departmentalization. Business owners and managers can create
product groups according to the projects a company is working on. Starting new projects will
require a new group consisting of employees from departments associated with previous
groups.
VIRTUAL STRUCTURE:
It is an independent and flexible virtual organization they share skills and knowledge in an
non traditional way of telecommunication and technology they believe and follow the
common business and they cooperate in order to deliver products and services on their
understanding .
COMMITTEE STRUCTURE:
An organization to associate people to solve problems is a committee, the line people discuss
their problems with the committee as it is similar to staff organization, They play an
important role in decision making the members of the organization are specifically
mentioned . They are visible in the organization ,they come up with better ideas and solutions
for the organizations . the management has equal opportuinity to raise their voices for
common solution of their problems.
TEAM STRUCTURE
The team structure is an important part of the organisation which rises as the organisation
grows. this is important to manage a huge organisation. It is made up of employees who work
under the same tasks. Team is effectively made up of diverse members who are responsible
for different tasks in the team. They are selected on the basis of abilities and personal
characteristics.
Overview of the company: -
FedEx Express also known as Federal Express is an American multinational cargo airline
logistic company based in Memphis, Tennessee, United States. It is the world’s largest air
freight cargo company and the world’s ninth largest in terms of fleet size. It is a subsidiary of
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FedEx Corporation, delivering packages and to freight to more than 375 destinations in
nearly every country each day. (FedEx, 2018)
Supply Chain: - A supply chain is a system of organization, people, activities, information
and resources involved in moving a product or service from a supplier to customer. FedEx
supply chain manages 35 million square feet of warehouse space an area that is larger than
the New York central park. (FedEx Supply Chain, 2018)
FedEx supply chain provides objective insight into logistic processes, helping you identify
which changes you can make and which to avoid, FedEx supply chain consists of 4 division
and they are: -
1. Supply chain engineering: - This helps their customers by providing certain services
like Network optimization, Holistic supply chain, Warehouse location analysis, Supply chain
engineering and design, Optimal mode selection, Shipment consolidation etc.
2. Warehouse operation and distribution: - FedEx improves their warehouses by
providing dedicated and shared warehouse space, managing warehouse staffing, Acquiring
and developing warehouses and by offering complete warehouse and distribution center
management.
3. Supply chain technology: - The types of technologies used by FedEx supply chain
management are, Warehouse management system (WMS), Labor management system,
Tracking and visibility and by apply emerging platforms and technologies that can help its
employees to work more effectively, thus increasing the efficiency of the supply chain.
4. Packaging, value added service and kitting: - FedEx supply chain maximizes the
value of their customer products by Packaging products, providing customization and
postponement, performing kitting and assembly and by Configuring and packaging
electronics. (FedEx Supply Chain, 2018)
Value chain: - Value chain is the process by which a company adds value to its goods
through various processes to create a finished product and then sells it to their customers.
Value analysis helps to identify the resources and capabilities of a company. Value creating
activities are divided into two categories: primary and support activities. Primary activities
include Inbound logistics, operations, outbound logistics, marketing, sales and customer
service, whereas the support activities include infrastructure, technology development and
HR management. (MindTools.com, 2018)
FedEx inbound logistics begins with picking up packages from various locations, hence value
is added to them to customers by allowing the packages to be picked up from anywhere.
Outbound logistics involves shipping either by planes or trucks to their destination on time,
this adds value to the company due to their on-time delivery policy. FedEx has a superior
customer service as it continuously develops innovative ways to add value to their customers.
The organization has developed a website for the customer to keep track on their delivery,
this helped FedEx to become the leader of overnight deliveries. (SlideShare, 2018)
Each primary activity is possible due to support activities such as the company’s
infrastructure, information technology and HR management. FedEx has an advantage over
their infrastructure and information technology, a strong infrastructure leads to a timely and
reliable delivery and innovation in technology has helped its customers to keep track on their
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delivery. FedEx has been ranked the 12th most admirable company to work for by fortune
and its policies continuously adds value to the customers. (Scribd, 2018)
3- Using the organizational structure chart of the chosen organization, explain the
relationship between different organizational functions and how they link to the
organizational objectives and structure. Analyze the advantages and disadvantages of
interrelationships between different organizational functions in your chosen organization, and
the impact it is having on the organizational structure. Thereafter, study the business
environment of a public or voluntary company, by understanding its business structure and its
interrelationship on different organizational functions. Critically analyze the differences
observed with those of your chosen organization.
Functions of the company: -
1. Marketing: - It is a set of activities that processes for creating, communicating,
delivering and exchange offering that have value for the customers, clients and partners. The
marketing strategy of FedEx is to modernize its air fleet and by focusing on its retail
accounts. (AMA, 2018)
2. Sales: - Sales is a type of activity or a set of operation undertaken by a company for
promotion and for selling goods or services. According to Forbes, the three strategies that
was driving FedEx in the year 2015 were by changing the company’s pricing mechanism to
drive revenue margin, Revised fuel surcharge rates to counter impact of falling fuel prices
and by improving the performance of the company during the holiday seasons, FedEx
forecast 8.8% increase in the annual revenue during the holiday seasons between black Friday
and Christmas eve.(Forbes, 2015)
3. Information Technology: - It is the use of any computer, storage, networking and
other physical devices and processes to create, store, secure and exchange of all forms
electronic data. FedEx uses an ESRI (Environmental Systems Research Institute) technology
tracking system which helps the employees and the customers to track the shipments, it also
consists of features like temperature control of both the vehicle and the cargo, easy
navigation and easy communication between the driver and the employees. (YouTube, 2018)
4. Human Resources (HR): - The division of a company that is focused on the activities
related to the employees, these activities include recruiting, hiring of new employees,
orientation and training of current employees, employee benefits and retention. In the year
2013 FedEx Express introduced a new council that will help to improve better manage
engagement and communication with its local operations, the council consists senior
executives, countries managing directors, human resource teams and frontline employees.
Every month the council examines the current issues with a view to improve the work
functions and work climate, the council members actively seek feedback from the coworkers
before and after the meeting allowing them to form the basis of the meeting. This has resulted
greater levels of open discussion especially at the ground levels. (Business Dictionary, 2018)
5. Customer service: - The general definition for customer service is “how you treat the
customers” yet authors like Al Hopper describes customer service as “the advice and
assistance provided by the company to those people who buy or use its products or services.
In fact, if the basic customer service isn’t right then even achieving the acceptable services
are a challenge. The customer service at FedEx was able to demonstrate brilliant basics by
listening to the wants of their customers but they adapted to meet the customers real needs,
they reacted swiftly going beyond their promises to exceed expectations of the customers and
their employees had an outstanding attitude towards their customers (Hymen, 2018)
6. Finance Section: - This is the section that is concerned with the allocation of assets
and liabilities over space and time often under the conditions of risks or uncertainty. The
financial sections of FedEx corporation consist of the managements discussions and analysis
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of results of operations and financial conditions, the consolidated financial statements and the
notes to the financial consolidated financial statements and other financial information all of
which include the significant accounting policies, practices and the transactions that underlie
the financial reports. FedEx financial conditions involve Liquidity, Capital resources,
Liquidity outlook, Contractual cash obligation and off-balance sheet arrangements. (Scribd,
2018)
7. Logistics: - The term ‘LOGISTICS’ is referred as the flow of goods and services
between point A and B in terms of transportation and service and when the same process is
done from B to A it's called reverse logistics. The two types of logistics are inbound and
outbound logistics. Since logistics is the main business of FedEx they are always looking
forward to improving their distribution system to accommodate rapid growth. FedEx
improves their logistics section by improving the service cost, the company's inventory
included temperature sensitive products with specific handling and storage requirements, no
ordinary “off the shelf” logistic solutions would work. So, FedEx implemented a service parts
distribution model that could provide more timely and accurate information, ultimately
leading to effective service cost management and hence improved customer service. (Wizard,
2018)
Job descriptions: - It is a document issued by the HR of a company which contain the
information like scope, task, responsibilities, working condition, requirement and the
eligibility for a specific vacant position in the company. It basically gives all the details
which might be good for the company and the applicant so that both parties are on the same
page. FedEx being the pioneers in the logistics fields is ranked no:9 spot on the fortune for
the world's most admired companies list, hence FedEx should have an effective and
descriptive job description so that the hiring committees of the company can have a clear
objective on what type of a candidate their looking for a certain job. The main advantages in
having a effective job description in FedEx is that it helps the company hire the right person
for the right job and it also benefits the employees by mentally preparing themselves while
reading the job description to meet the company’s expectations. This allows them to be
productive in front of the supervisors and it gives the supervisor a way to measure the
progress their progress. The main disadvantages are that it discourages the innovations and
expansions of the company because job descriptions have a list of specific duties and
expectation for performance, hence the employee is naturally discouraged from deviating
from it, the descriptions often reward the employees for following it rather than adjusting or
improving it. This can even slow or even stop the expansion and development of the
company entirely if left unchecked. (MBA Skool, 2018)
Line managers: - A line manager is a person who directly manages the employees and its
operations while reporting to the higher-ranking manager. A line manager is actively
involved with his/ her team in providing support, offering encouragement and delivering
positive and constructive feedback daily. Line managers directly influence the employee’s
satisfaction and engagement which results in organizational productivity and even customer
satisfaction. In a service industrial company like FedEx where the customer satisfaction is
mandatory, the support and engagement from the line managers makes a good working
environment for the employees and which helps to make a better relation between the
employees and the customers hence results in customer satisfaction. However there some
disadvantages that are common among corporate companies like FedEx are if the pattern of
authority relationship between the line managers and employees is not clearly indicated then
there can be confusion throughout the organization. The other disadvantage is that if the staff
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lacks authority to put their recommendations into practice then the line manager might ignore
his advices. (ebrary, 2010)
Delegation: - The term “Delegation” is referred to as a group of people who have been tasked
with a specific job or given a specific job. It usually happens based on experience, the amount
of work a delegate can handle. Delegation does not mean that the subordinated has the power
to make decisions, but the manager hires them to do certain tasks and then to get it approved
by the manager before finalizing it. FedEx being a corporate organizational structure the line
managers can assign employees to do certain works and this can help the line managers to
concentrate on the main tasks in hand, that is one advantage. The other advantage of
delegations is that it helps improve the moral of the lower level managers cause all the
decisions are taken by the top-level managers. Hence delegation in a way keeps the lower
level employees happy by giving them some responsibilities through delegation which in turn
make them more attached and help align their personal goals and objectives with the
company’s goals and objectives.
Specialization: - It is method of being productive, it takes place when an organization aims to
concentrate more on certain specific areas like their manufacturing unit or for specific
service. Since FedEx is a service business it aims to concentrate more their operations.
Specialization of operations include labor, working conditions employees, technological
advancement, distribution and customer relation. If FedEx fails to satisfy the customer needs
by late delivery of products or goods, chances are more that they might lose their customers
and get poor reviews, hence their competitors can get the upper hand in the market.
(Investopedia, 2018)
Departmentalization: - It involves dividing an organization into different departments in
which they can perform tasks according to each department’s specialization in the
organization. This is found in both public and private organizations. The departmental form
of its organization can be seen in its various departments of freight business that deal with
different types of items. Therefore, the organization is departmentalized to handle different
kinds of shipments. Examples of its departments include FedEx smart post, FedEx ground,
FedEx custom critical, FedEx Kinko’s, FedEx national LTL and FedEx Tech -Connect.
These departments are customized to meet various demands in flight business, cause many at
times delivered packages vary in terms of value, sensitivity and urgency of delivery.
(Chang, 2005) (I Edu Note, 2018)
Macro environmental analysis: - It is a condition that exist in an economy rather than in a
sector or region. The macro environmental analysis includes trends in gross domestic product
(GDP), inflation, employment, spending, monetary and fiscal policy. (Investopedia, 2018)
PESTEL analysis of FedEx in UAE (Khaleej Times, 2018)
1. Political analysis: - In general FedEx is a company that has a keen interest in taking
part in the political process and policies of the country. FedEx is an American based company
that operates in more than 220 countries and territories, for example if there's a conflict
between US and any other country that has branches of FedEx, the conflict would impact
both the export and import activities between the countries and will eventually call a halt to
the FedEx operations in the country. Since UAE keeps a healthy relationship with many
countries which allows them to export and import freely without any problem or conflicts.
Many people in the logistic industry believe that the US and EU sanctions will have a limited
impact on the Middle eastern market.
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2. Economic analysis: - Analysis shows that economic growth across Fast moving
consumer goods (FMCG) and automobile sectors will escalade the demand for logistic
sectors in UAE. With the UAE’s accelerated race towards smart solution and major
technological goals in the run up to Expo 2020, we expect major sectors such as electronics
to substantial increase in the logistic operations over the next few years.
3. Social analysis: - Dubai is widely regarded as some of the best logistics facilities in
the world, it is the world's third largest re-export hub and its jebel ali port is among the top
ten container ports globally. FedEx believes that online retail growth to boost e-commerce
deliveries, however there are many challenges that stand in the way enhanced connectivity
particularly because of barriers to e-commerce growth. GCC countries have not drafted
specific laws to e-commerce and current UAE government regulations. The innovative
technological solutions in e-commerce will be a critical swifter to more efficient movement
of goods and services in the region.
4. Technological analysis: - FedEx like other organization is successful primarily due to
advancement in technology, the company took the expansion of the internet to its full
advantage by providing electronic services to its customers anywhere in the world. FedEx
helps its customers to check the status of their transaction with a few mouse clicks, FedEx
can communicate with the world through e-commerce, hence the technological adoption has
helped companies to bring buyers and sellers on one platform. The internet boom in UAE did
boost the e-commerce growth in the last couple of years.
5. Environmental analysis: -The Middle east logistic industry is set to see a continued
growth year by year with UAE being the epicenter of trade activities in the region. The
UAE’s geographical location and infrastructure makes it an ideal supply and re-distribution
gateway and offer huge growth potential in operating logistic players. It is strategically
located at the center of the international trade making it globally well positioned as an
emerging transshipment hub. UAE ports have emerged as an important transshipment in the
Europe-Asia trade lane and multi-modal logistics hubs to cater to the needs of increasing
trade within the region.
6. Legal analysis: - FedEx has strictly been abiding the laws for its operations
worldwide. FedEx follows the IS0 14001 certifications regarding the environment as well as
follow other rules and regulations. The organization also provides security information online
and stands answerable in case of lawsuits. The legal policies followed by FedEx are: -
Positive impacts of PESTEL: - (Finance, 2018)
1. Cost Effectiveness: -
● The cost for pestle analysis is time, pestle analysis is straightforward because the
amount research necessary on how much time and how often you do pestle analysis for your
firm is optional but the cost to do any level of analysis isn't prone to fluctuation. The part is
that anyone can do a pestle analysis, while a team can lead to better results an individual can
also do the analysis successfully.
● Dependence of US
● Saturation
Opportunities: -
● Ecommerce boom
● Online retail boom
● Making systems faster
● Strategic tie ups
● Mergers and acquisitions
● Improve retail
Threats: -
17

● Price wars
● External business
● Capacity vs demand management (Vizologi, 2018)
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