Internal and External Analysis of 3i Infrastructure PLC

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Contents
Introduction......................................................................................................................................1
LO1) Analysing the impact of the macro environment...................................................................1
P1) Apply appropriate frameworks to analyze the macro environment for a given organisation
.....................................................................................................................................................1
M1) Analysing the macro environment for management decisions............................................3
D1) Interpreting the information and data by applying in the environment and competitive
analysis........................................................................................................................................5
LO2) Accessing the internal environment and capabilities.............................................................8
P1) Framework for internal environment and capabilities of 3i..................................................8
M2) SWOT analysis of 3i according to capability structure and skill set.................................12
LO3) Evaluate the organisational status by using Porter’s five forces..........................................14
P3) Porter’s five forces model for evaluating the competitive forces.......................................14
M3) Appropriate Strategies for improving the competitive edge and market position.............16
LO4) Models and theories with a strategic plan for the organization...........................................18
P4) Range of theories and model for dividing the strategic plan of 3i......................................18
Executive summary...................................................................................................................19
Organizational structure.............................................................................................................19
Mission statement......................................................................................................................20
Vision.........................................................................................................................................20

Values........................................................................................................................................21
Pestel and SWOT analysis:........................................................................................................21
Internal analysis of the organization:.........................................................................................24
McKinsey 7s framework:..........................................................................................................25
Competitors analysis:.................................................................................................................25
Market analysis:.........................................................................................................................26
M4) Strategic management plan that has a tangible and tactical strategy.................................27
Evaluation and monitoring the plan:..........................................................................................29
Conclusion.....................................................................................................................................30
References......................................................................................................................................31
Introduction
Business strategy is important to determine the factors that are associated with the growth of the
organization. 3i is multinational private equity and venture capital in London. It was founded in
1945 and the net income of the organization till 2018 is £1488 million. The number of
employees working in the headquarter is 250 is and has focused on long term establishment in
the public market. Different theories and models have been adopted to understand the strategic
management decisions in existing and new product.

LO1) Analysing the impact of the macro environment.
P1) Apply appropriate frameworks to analyze the macro environment for a given
organisation
The Pestel analysis is a type of strategic tool which is used to analyse the organisation led by the
macro environment. The organisation has implemented the pestel analysis for understanding the
current market situation in the UK.
Political: It is an important role as it determines the factors of the 3i group impacting the team's
probability with its respective country. The various type of risks such as political system as well
as political environment risk can expose itself by the political factors. The factors measured by
the 3i group before investing in the market are:
 Level of corruption (Nasri, and Ikra, 2017)
 Taxation that is tax rates as well as in a sentence.
 Pricing regulations.
 Wage legislation that is minimum wage and overtime.

Economic: An economy depends on aggregate demand as well as an aggregate investment
which includes under the factors of Macro-environment like interest rate, inflation rate, foreign
exchange rate, and savings rate. The inflation rate, growth rate and the level of taxes have
impacted in the export and import of the organisation. It has also determined to forecast the
organization as well as the sector.
Social: 3i Group design and understand the Financial Services industry consumer by shared
belief. The gender roles and the media outlets have improved the growth of the organisation for
understanding the better market and position with the product.
Technological: The most important factor that is the technological factor is increasing at a fast
rate across the board. The adoption of different modern technologies have improved in the
empowerment of the supply chain and removed the issues in intellectual property rights and
patent protection (Mansor, et al. 2018).
Environmental: Environmental standards can differ from different markets which can even
make the organization even loss. proper environmental standards should be carefully checked
before entering into new markets.
Legal: Legal Framework is required for protecting the property rights of an organization. Proper
steps should be taken by the firm so that no loss or theft can lead to organization.Recently the
organization has focused on Employment law and data protection for improving the efficiency in
the business:

M1) Analysing the macro environment for management decisions.
The Macroenvironment has determined the inform strategic and management decisions by
focusing on:
Political and regulatory forces: It includes legislation, court judgments as well as elections
rendered by agencies and various commissions. It also includes issues such as the relative
influence of unions, policies related to the utilization of natural resources, modeling government
policy, etc.
Economic forces: It refers to the direction as well as the nature of the company where the
business operates. To solve the problem of economic forces the 3i has developed research
information about the future and the base of unemployment, wage rates, disposable income, etc
(Ramdani, et al. 2018).
Technological forces: It can affect the environment in a dramatic and sudden way. It can
decimate existing business as well as the entire industries. It can also affect firms operation and
its products and services. The technological change can improve call achievements as it varies
from one industry to another.
Social forces: it includes social trends, values, consumer psychology as well as traditions.
People's behavior depends on social forces that is why it is one of the most important forces.
The organisation has recently used the stakeholder matrix for analysing and determining the
stakeholders who have to focus on the goals with the project.
Power interest matrix: It has focused on the power of the regulatory approval authority and the
interest of the stakeholder for increasing the higher interest in the company.
Stakeholder analysis matrix: As the organisation has expanded the business so stakeholders
analysis Matrix has helped to improve the power and interest level in the organisation,

Figure 1: Stakeholder analysis.
(Source: Othman, et al. 2017)
D1) Interpreting the information and data by applying in the environment and competitive
analysis.
The structure conduct performance paradigm has been used by the organisation to make the
condition of supply and demand in industry by determining the structure. This has helped the
organisation to understand the failure of the perfect competition condition and the degree of
supply concentration, product differentiation, market entrance barriers, and demand
concentration.

Figure 2: Structured conduct performance model used by 3i.
(Source: Salwa, and Sudarsan, 2018)
The benchmarking indicator was utilised in the organisation for understanding the data according
to the competitive analysis for meeting the objectives and tactical action. This has measured the
performance of the products within a particular time.

Figure 3: Benchmarking indicator of 3i in different parts of the world.
(Source: Salwa, and Sudarsan, 2018 )
Figure 4: Indicators for growing the profit.
(Source: Ghlala, et al. 2016)
https://www.infrontanalytics.com/fe-EN/33209EX/3i-Infrastructure-Plc/stock-performance

LO2) Accessing the internal environment and capabilities.
P1) Framework for internal environment and capabilities of 3i.
Vrio analysis is applied in the organisation for understanding the internal environment in relation
to the sustained competitive advantage. It has helped to improve the competitive advantage in the
market of UK and has offered a sustainable competitive advantage in terms of strength.
Valuable Rare Imitable Organisation
 The
organisation
focus on the
financial
resources
which are
highly
valuable into
the external
opportunities
 The financial
analysis and
Audit on the
organisation is
quite strong.
 The
competitors of
the
organisation
use the
 The resources
of the
organisation
have been
utilising
through
prolonged
profits over
the years. This
has helped to
 The captured
value of the
financial
resources and
strategically
investing in
the right place
and making
use of the

and
minimising
the threat
(Othman, et
al. 2017).
 The local food
products are
valuable
resources and
do perceived
value in the
products.
 It also focuses
on the benefits
of the
employees
and improved
in the
workforce
which has
increased the
product
output.
resources in
the same way
and inhibit
competitive
advantage in
terms of the
local food.
 The
employees of
the
organisation
are highly
trained and
skilled and
ensure the
employees do
not leave for
other forms
through
different
motivation
strategies.
 The
accumulate a
lot of fund for
future
development.
 The local food
products of
the
organisation
or not costly
and has
invested a
significant
amount in
research and
development
of good
quality
products.
 The company
hires
employees by
offering better
compensation
opportunities.
 An unused
competitive
advantage
exists in the
sustainable
competitive
advantage
with increase
the selling of
the patent
products
before it gets
expired.
 The
employees of
the
organization
get a good
environment
by
maintaining
compliance,

 The patents
are valuable
resources that
allowed the
organisation
to sell the
products
without
competitive
interference.
 Marketing
department
always
focuses on
promoting
their business
in the existing
and new
customers
which have
increased the
brand value.
distribution
network of the
organisation
has identified
good
investment for
the future.
 The
organisation
lacks in social
media but
communicate
with the
customer with
good customer
service.
package, work
environment,
benefits,
growth
opportunities,
etc.
 has made
legal
compliance
for imitating
the patent
products
(Salwa, and
Sudarsan,
2018).
Health, and
safety, proper
strategic
human
resources, etc.
 The
distribution
network
Hasan show
the products
to be available
on the outlets
by meeting
the needs of
the customers.
 The
organization
focuses on
digital
promotion for
their quality
products.

From the above analysis, it was identified that human resource, Financial strength, marketing,
and brand value have provided 3i sustained competitive advantage. On the other hand, the cost
structure, distribution, and Research and Development is a competitive disadvantage in the
market.
Human resource Financial strength Marketing Brand value
 3i focus on
continuous
feedback and
then conduct
the appraisal
early.
 Reward the
employees for
high
performance.
 Provide
adequate
training
session.
 The
organisation
has
contributed
£1546 million
revenue till
2017.
 The growth of
the capital is
19%.
 is
 Focus on
emailing to
the customers,
direct
communicatio
n through
phone and
chat,
proposing
banners, etc.
 Focus on the
financial
report of the
organization.
 Identify
ongoing
transaction
with different
companies
that include IT
products
(Salwa, and
Sudarsan,
2018).
 Increasing the
customer base
by 60% within
2019.