Analysis of Barratt Developments PLC: History and PESTEL Factors

This report presents a comprehensive analysis of Barratt Developments PLC, a major homebuilder in the UK. It begins with an overview of the company, including its history since its establishment in 1958, its organizational structure, and its evolution in the construction industry. The report then delves into the importance of PESTEL analysis for businesses, highlighting how it helps in identifying political, economic, social, technological, environmental, and legal factors affecting a firm. The core of the report focuses on a detailed PESTEL analysis of Barratt Developments, examining the political, economic, and other macro-environmental factors that influence its operations, market position, and long-term profitability. The analysis includes specific factors such as trade barriers, minimum wage, political stability, economic indicators, and industry regulations. The report concludes by summarizing the key findings and their implications for Barratt Developments' strategic decisions and future growth.

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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1 ..............................................................................................................................................3
Barratt Development overview including History ,structure of organization, Management of
company nationally or internationally.........................................................................................3
TASK 2 ...........................................................................................................................................5
Importance of Pestel for any firm ...............................................................................................5
TASK 3............................................................................................................................................7
Pestle analysis of Barratt Developments Plc will faces the macro environment factors mention
below Pestle analysis of Barratt developments Plc .....................................................................7
CONCLUSION ..............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Barratt development provides a wider kinds of living options of the first time buyers. It is
established in the united kingdom. Present report lay emphasis on the pestle of the Barratt
company also focuses on its history.
Task 1
Barratt Development overview including History ,structure of organization, Management of
company nationally or internationally
Barratt developments plc offer a broad variety of living options, basically company
operates as a home builder within the united kingdom . It includes the single family
apartments ,studios,also large mansion from £ 51,000 to £ 3 million. It established in 1958 . it
has established more than 250,000 new homes as well as more than 350 developments within
progress from the Scotland to the southern England (Fozer and et.al.,2017).
Perspective of the company- Innovation is considered as the key factor that approves the
Britain's Premier house builder. They commit to the highest quality designs, standards,
construction, service that has earned Barratt even every major construction company ward within
the same industry (Perera, 2017).
History
Company was founded I Britain within 1958 through Sir Lawrie Barratt. The original intention
of the company is to give the living are for the first time buyers. Initially they have a slow start
that eventually enhanced from £ 99.3 millions to £ 164.2 million (Zahari,. and Romli, 2019) .
During the 1968 the company grow rapidly and also establishing within its roots in the North
east as before it listed within the London stock exchange in 1968 (Life cycle, SHTAL, and
et.al.,2018).
Through the mid of 1980,Barratt decided to broaden its business through the Product line. After
the full and final review of the British housing marketing , Barratt makes a range of individual
designed houses . This range of series is called as the premier collection that offered more than
70 various kinds of house types from that to select involving luxury residencies and retirement.
New Strategies fuel growth within 1980s (Aithal, 2017).
Within the same time the firm began to build the large residencies as well as also initiated a
large umber of the successful projects that are designed to rehabilitate current urban proprieties
such as joint venture with organization, city councils, affordable housing regarding urban
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residents. One of the innovating aspects of the company is marketing strategy that was called as
a package deal visible to the user called for time buyers (Moro Visconti, 2016). The fir also
offered each and everything regarding domestic furnishings regarding trade deals on the old
homes as well as u.s consumers that often required to make a small down payment within order.
The firm also produces by Roebuck & company, Sears. The potential consumers also browse by
a fully furnished display called Condominium. Through selling small, inexpensive units the firm
gives a new opportunity for the consumers regarding purchasing home (Oey. and Nitihardjo,
2016).
Barratt also participated within the areas such as industry that is known as the construction and
project investment . Through focusing on the specialized building contract within the
commercial and industrial sectors ,the firm gained a huge financial return. The success of the
project depends on the construction of building within industrial as well as commercial
sectors ,the form gained a huge amount of financial return. Thus, company has a long way to
accomplish its goals for the ranking first within United States market of home building. It
continues to perform during the 1980 as well as having grown less than 31 years from a small
operation to a huge network both in the California and United kingdom. Barratt appears to be
very promising future all over the world in the construction industry (Zahari,. and Romli, 2019).
Overcoming challenges 1990s and the Beyond
From the early 1990s, They were marked through property called flattering residential property
markets both in the southern England and California. They extend their companies both of these
areas. Under the leadership of Eaton and sir Lawrie ,the company able to see a turnaround It able
to shuttered Unprofitable ventures and as soon as the United Kingdom market that began to
rebound. During the 1996 ,the company announced their plans to enhance its housing plans from
7100 to 10,500 per year by the year 2000 (Moro Visconti, 2016).IN 1997 Sir lawrie confident
that they are on the right track and also retired in 1997. The good fortunes of the firm is carried
with the new millennium and also with Eaton. The financial status of the company was also
boosted up that time and continues a positive outcome . During 2002 the firm achieved positive
sales records as well as profits. Here sales can rose by 19 percent that year and also reaching
about £1.80 billion. The condition includes such as strong demand ,short supply, low interest
rates as well as continued to be well for Barratt (Zahari,. and Romli, 2019).
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As the firm celebrates its good time s it was considered as blindsided through a sudden loss . In
the year 2002, Eaton was killed within a traffic accident and now the managing director was
David Pretty named as CEO as well as Charles Toner becomes the non-executive chairman. The
new management of the company was confident as it would lead to the growth. It also mourned
the loss of one of its top executives as well as management as it has the records of success within
the year which has to come (Perera, 2017).
There are Nine Boards of directors of the Barratt company have out of them two are executive
directors while 3 of them are non-executive directors. Here Johan Allan,CBE is Chairman of the
Barratt company.
David Thomas and David Fraser both are chief executives of the Barratt Company. The research
as well as charity IGD today announced that the Susan Barratt is appointed as the New CEO of
the company. It came effective From the 1st January 2019 as Susan succeeds Joanne Denny Fich
who had stepped down within September 2018 (Zahari,. and Romli, 2019).
Relationship between the Board of directors as well as Stakeholders
Stockholder has own shares within the company that able to makes them collective owners .
They also elect a board o directors so that they lead easily. They also elect a legal responsibility
to govern on the side of the Stockholders as well as assist companies prosper (Oey. and
Nitihardjo, 2016).
TASK 2
Importance of Pestel for any firm
The PESTEL analysis of any business organization is the full proof plan for the business ex
pansion. The PESTEL analysis of any business helps in the identification of political, econo
mical, social, technological, environmental as well as the legal factors associated with the bu
siness. By conquering all the these factors that influences the business owners gives the bett
er knowledge to the owners of the business whether their next move would be a strategic on
e or the idiotic one (Zahari,. and Romli, 2019).
It is not always that the political factors of the business would be related to the elections of the co
untry or legal factors will always be related to the rules related to taxation and intellectual factors
of the economy.
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Some companies believe that only internal factors such as sales, accounts and marketing influenc
es the smooth running or the growth of the company but it is not like that, there are external facto
rs that influences the smooth running of the organizations. These external factors are summarized
as the PESTEL. This can be analysed for understanding the macro factors that could affect the gr
owth of the country as well as for the future profitability of the company (Life cycle, SHTAL,
and et.al.,2018).
The political factors gives the understanding of regulation related to government as well as legal
factors which could affect the trade market as well as the business environment. The political fac
tors include sub factors such as employment laws, safety regulation, trade regulation, tax guideli
nes as well as political stability of the economy (MoroVisconti, 2016).
The economic factors in the PESTEL analysis of any business includes disposable income of the
individual, unemployment rate, exchange rate, economic growth rate, interest rate as well as infla
tion rate of the country's economy in which the company is willing to expand. Thus, the economi
c factors has direct influences on the company's as the affects the purchasing power of a consume
r (Oey. and Nitihardjo, 2016).
The social factors can be characterized in the various elements such as safety emphasis, career att
itudes, growth rate, income distributions, age distribution etc. these the elements of the social fac
tors that influences the organizational operations (Aithal, 2017).
The technological factors affect the industry's related to technology as well as market intentionall
y or unintentionally. These factors influence whether the company introduces the new product int
o the market or not. By gaining the enough knowledge about the latest trends, the company could
decide not to invest on the technology where it is lacking behind the market (Moro Visconti,
2016).
The environmental factors in the PESTEL analysis helps the organization in the gaining knowled
ge about the ecological and ecological traits of the country, these elements of the environmental f
actors gives the report of changes in climate, weather or environment offsets that influences the b
usiness of the company (Oey. and Nitihardjo, 2016).
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The legal factor in the PESTEL analysis the various rules, regulations, law or legislation, associa
ted with the company that wants to expand in the new economy. These elements that comes unde
r legal factors are laws related to safety, patent or the copyright laws, consumer protection laws,
discrimination laws as well as laws related to the labour of the industry (Moro Visconti, 2016).
Thus, PESTEL analysis helps the company in analysing the cost-effectiveness of the company, d
eeper understanding of the country in which the company is willing to expand as well as it helps
in encouraging the alertness about the development of the company (Aithal, 2017).
TASK 3
Pestle analysis of Barratt Developments Plc will faces the macro environment factors mention
below Pestle analysis of Barratt developments Plc
Political factors
Political factors play an eminent in describing the factors that influences Barratt Development
Plc's long term profitability within a market or a country. The company is operating within
personal as well as Household goods within more than 12 countries and also exposes within
various types of political system risks and political environment (Moro Visconti, 2016).
To accomplish success with a dynamic personal as well as households goods all over the world
scrutiny analyses factors before entering within certain market.
High level of trade barriers that able to host country would protect company thus barriers that
nations with potential trade partners that may harm firms through preventing potential exports.
A minimum wage means higher profits as therefore higher chances of survial For the Barrat
developments (Aithal, 2017)..
Importance of households goods sector and political stability within the country 's Economy.
Consider the pricing regulations. Taxation such as incentives as well as tax rates.
Wage legislation such as overtime and minimum wages.
Mandatory benefits of the staff members.
Safety regulation of industries within the consumer goods sector.
Anti trust laws regarding household and personal goods.
For contract enforcement required for Legal framework (Oey. and Nitihardjo, 2016).
Product labelling as well as other requirements within personal as well as household goods.
Economic factors that influence on the Barratt Developments Plc
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Factors such as Saving rate ,inflation rate ,interest rate ,economic cycle ,foreign exchange rate as
well as interest rate . Economic indicators such as household goods' industry such as Growth
rate of personal and household goods ,costumers spending the forecast growth . Mention below
economic analysis of the Company (Life cycle, SHTAL, and et.al.,2018)
.
Kinds of economic systems within countries of operation such as what type of the economic
system in that country and how stable it is.
Level of the Education level within the economy.
Labour costs as well as Productivity within the Economy (Moro Visconti, 2016).
Rate of unemployment as high rate of unemployment means that there is more supply of jobs
rather than demand that means people would willing leads for a lower wages ha can lower the
cost of the firm.
Interest rates as well as inflation rates.
Skill level of people working within personal and household industry (Aithal, 2017).
Social Factors.
Attitude and Shared beliefs of the people plays a vital role within how marketers at Barratt
development Plc shall understand the consumers of a provided market as well as how thy design
the marketing message for consumers . Mention below analysis the social factors of Barratt
Developments Plc such as
Education standard and education level of the Barratt Developments Plc's within the industry
culture ( social conventions and gender roles)
Attitudes such as environment awarenesses and health awareness.
Power structure,class structure and Hierarchy within society (Moro Visconti, 2016).
Skill level and Demographics of the population.
Technological Factors that influence on Barratt Developments Plc
Technology factors is changing rapidly day by day. Over the last 10 years Transportation
industry has been transforming really fast as well as not giving chances to cope up through the
modifications. Industries such as Taxi industry is dominated through Uber. Analysis of the
technological involves the following impacts (Moro Visconti, 2016).
Recent impact on the technology on the products offering.
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Development which are based on recent technological development through Barratt development
Plc Competitors.
Influence on the value chain structure within costumers good sector (Life cycle, SHTAL, and
et.al.,2018)
.
Influence on cost structure within personal as well as households goods sector.
Environmental Factors
various marketers that have different environment standards which can influence the
profitability of a company within those markets (Aithal, 2017)
. Before entering within new markets within current market. Some environment factors are
mention below. Such as climate change, weather ,Air as well as water pollution regulation within
personal as well as households goods industry, Recycling ,Endangered species , attitude towards
the ecological or green products (Oey. and Nitihardjo, 2016).
Legal factors
Legal factors such as Discrimination law, Employment law, data protection ,health and
safety,Anti trust law within personal as well as household goods within industry as well as
overall within country.
Health and safety laws also created through the horrible conditions that staff members also
forced to do work immediately after industrial revolution (Life cycle, SHTAL, and et.al.,2018)
(Life cycle, SHTAL, and et.al.,2018). So the implementation of the proper rules as well as
regulation can be expensive but the company Barratt developments Plc's social and ethical
responsibility to the other human beings.
Laws are also assures a certain level of quality for products to keep their consumers safe as well
as prevent them for being given. Thus, industries also implies to find out their cost evaluated.
Discrimination laws are also placed through the government to save the staff members and also
assures that everyone within Barratt Developments plc is considered to treated fairly as well as
given the same opportunity that can be gender ,age,disability,sexual orientation ,religion (Life
cycle, SHTAL, and et.al.,2018).
CONCLUSION
Above study had been summarized about the Pestle Analysis of Barratt company and also about
the importance of the pestle analysis of any firm and also the overview of the Company and its
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history. Also determine the overview of the Company such as relationship of board of directors
and stakeholders.
REFERENCES
Books and journals
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Aithal, P.S., 2017.An Effective Method of Developing Business Case Studies based on Company
Analysis. International Journal of Engineering Research and Modern Education (IJERME),
ISSN (Online). pp.2455-4200.
Fozer and et.al.,2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process
alternatives. Journal of cleaner production.147. pp.75-85.
Moro Visconti, R., 2016. Healthcare public-private partnerships in Italy: Assessing risk sharing
and governance issues with PESTLE and SWOT analysis. Corporate Ownership and
Control.13(4).
Oey, E. and Nitihardjo, E.C., 2016. Selecting Regional Postponement Centre Using PESTLE-
AHP-TOPSIS Methodology: A Case Study in a Pharmaceutical Company. Global Business
Review.17(5). pp.1250-1265.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
SHTAL, T.V and et.al.,2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS. 39(12).
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.Fozer, D.,
Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E., Benko, T. and Mizsey.
P.2017.
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