Business Environment Analysis and PESTLE Analysis for Beazley PLC

This report provides a comprehensive analysis of the business environment of Beazley PLC, a specialist insurance company operating globally. It begins with an executive summary, followed by an introduction that overviews the company's history, organizational structure, products, and services. The report emphasizes the importance of PESTLE analysis for understanding macro-environmental factors that impact the company's performance. A detailed PESTLE analysis is then presented, examining political, economic, social, technological, legal, and environmental factors and their impact on Beazley PLC. The analysis discusses the positive and negative impacts of these factors, such as government stability, inflation rates, cultural norms, and technological advancements. The report concludes by highlighting how Beazley PLC can leverage this analysis to gain a competitive advantage, expand its business, and achieve sustainability in the market. The report also delves into the relationship between the company's directors, employees, customers, and shareholders.

Business environment

Executive Summary
This report has analyses macro environmental factors that adversely impact on
functioning of company and helps in gaining competitive position in the market. Company by
analysis various factors is able to expands its business across worldwide and increase its sales
and profitability. It also expanded about number of directors , its history and product and
services in which Beazley PLC deals in order to satisfy needs of customers. It also explained
importance of pestle-analysis for Beazley PLC that promote growth and success of company in
the market.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
Overview of company..................................................................................................................4
History of company......................................................................................................................4
Board of director and organisational structure.............................................................................6
Relationship between Director of company and employees, customers and shareholders..........6
Importance of Pestle analysis.......................................................................................................7
P3 PESTLE ANALYSIS.............................................................................................................8
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment included various internal and external factors that impact on
company performance and productivity such as policies of government, economic condition and
preference of people living in the society. Company does not have any control over environment
factors so it needs to consider such factors while operating its business to protect itself from
various threats. This report analysis and evaluates various macro factors of environment that
impact on Beazley PLC and helps in gaining competitive advantages in the industry.
Overview of company
Beazley PLC is operating its business in Europe, Asia , U.S. and is parent company of
specialist insurance business. It is a public company that offering insurance services for life,
political risk, property and reinsurance to people of UK. It has generated $263.5 million of
revenue and net operating income $295.4 as per 2019 (Arnaboldi and et.al., 2018). It has large
number of employees with different culture, belief and preference working together for
achievement of organisational goals. Therefore, organization structure of Beazley is definite so
that employees can easily communicate with each other in effective manner. Company has non
bureaucratic organisational structure that have highly skilled and knowledgable people working
together for growth of company. Employees can easily communicate with each other thus to
management can communicate directly with its subordinates. Company operates it business
nationally and internation by using non- bureaucratic organisational structure is able to gain
competitive advantages (Stewart, 2017). As it is flexible and can quickly adopt various changes
in the environment that helps in quick decision-making and achievement of company goals.
Thus, it helps in gaining competitive advantages in the market by effective coordination of
employees to work together as a team for common objectives.
History of company
Beazley Plc was founded in 1986 in Jersey and tax resident in Ireland with its
headquarter in London, United kingdom. It was first established as Beazley, Furlonge and
Hiscox and Andrew Beazley was chief executive of company that work for company till
September 2008 then it was took over by Andrew Horton and Nicholas in 1992. In 2001 full
management buyout take place and Hiscox come into existence in 1992 by. It started operations
as writing books for reinsurance and insurance for customers that are living across various
nation. Beazley have experience over 3 decades in providing the highest standard quality

product and claim services to customers. It is one of the oldest and largest company with rating
as A in Lloyd market that also provide wide range of insurance and reinsurance services to its
customers across nation. First office of company was started in Farmington, CT in 2004 that was
operated and run for underwrite management liability and professional insurance on Surplus line
basis. Then it expands its product portfolio into Management liability, professional liability and
property that enhance sales volume and profitability of company. Therefore, company has grown
continuously and steadily by in terms of incorporating risk and serving clients across
geographical.
As per 2019 report of Beazley PLC has net income $295.4 million and operating income
$295.4, revenue amounted to $263.5 million.
In 2016
Company has managed gross premium as 2,66.4 and group share as 2, 1995. Managed
gross premium by acquiring leviathan and Market-form team. Company has also form five-year
partnership with other Design Museum in order to showcase breakthrough in design across
worldwide.
In 2010
Company in order to grow reinsurance business has formed special purpose syndicate
6107 and it changes functional and presentation currency to U.S. dollars. Co-founder of Beazley
Group named Andrew Beazley died at age of 57 in 2008.
In 1986
Managed gross premium of Beazley group was $13.4 m with capacity of £8.3m and
syndicates 370 and started its operations by trading with Lloy's building in 1986.
Thus, company has tremendously grown and expand its business across various nation to
increase its profitability and market share (Hoang, Abeysekera and Ma, 2017). By adding or
widening its products and services range that is to be offered to customers thus helps in
achievement of company goals and objectives.
Product and services
Beazley PLC has wide product portfolio that helps in satisfying needs of each and every
individual in the society by offering number of products and services. Various products and
services offered by company are as follows property insurance, management liability, life,
accident and health insurance of people and professional liability. Therefore strong product

portfolio of company helps in gaining competitive advantages in the market by satisfying needs
of customers in effective manner.
Board of director and organisational structure
Beazley executive directors ensure maintenance of strong and direct communication
link between business and non-executive board members for smooth operations of business.
Firm have non-executive director that are highly knowledgable, skill and in-depth experience of
board that helps in growth of company. There are three executive directors namely Chief
Executive office, Chief Underwriting officer and Group finance director. Whereas 8 non-
executive directors such that helps executive director in decision-making due to specialization of
board.
Executives
Andrew Horton: Is a chief executive officer that joined Beazley as finance director in 2003.
Adrin Cox: It is a chief underwriting officer that work at General Re for 8 years and joined
Beazley in 2003.
Sally Lake: Is group finance director that come to Beazley in 2006 as group actuary.
Non executives
David Roberts: Chairman of national building since 30 years in Beazley.
Sir Andrew Likierman: Is another chairman of remuneration committee.
John Reizenstem: He has extremely knowledge of finance and chairman as Audit and risk
committee.
Catherine Wood and Christine LaSala are non executives of audit and risk , remuneration and
nomination committee.
John Sauerlan: Non executive of remuneration committee.
Robert Stuchberry and Nicola Hodson are non-executive of Audit and risk committee
Relationship between Director of company and employees, customers and shareholders
Directors of company are the person that run and operates business to maximum its
profitability and sales in order to satisfy needs of customers, shareholders and customers.
Therefore, relationship between Director of company and employees is that director while
operating its function has to ensure needs of employees (Varhegyi and Jepsen, D. M., 2017). So
that they increase their productivity and performance for achievement of organisational goals. It
also has to satisfied needs of shareholders that have invested money in the business so it has to

built relationship to know about their needs. Company is mainly operated to fulfil needs of
people living in the society so director by building relationship is get to know about preference
and belief of customers and is able to enhance profitability of firm.
Importance of Pestle analysis
Pestle-analysis is a tool that is used by company in forming strategies at time of
expansion of business in same market or into new market. It analysis and evaluates internal and
external factors of environment such as economic condition in which company operates,
government policies, technology upgradation, preference and change in customers trends and
environmental issue that impact on functioning of company. Therefore, pestle-analysis helps in
gaining competitive advantages in the market by analysing internal and external factors of
environment that impact on company functioning. Various importance of pestle -analysis for
Beazley are as follows:
Growth and expansion of company: It helps in growth and expansion of company as it by
analysing various external factors is able to identify various opportunity available in the market.
Beazley by identifying and effective utilising opportunity is able to expand its market share and
profitability at the same time able to satisfy needs of customers in an effective manner (Keay,
2017). Such as due to Brexit economic is facing recession so company get advantages by
protecting people of UK from various losses.
Helps in sustainability of company: Beazley is able to sustain and grow in market by continuous
evaluating policies of government and economic condition. As company in which country
operates is facing political instability so people are less willing to make investment. Thus, it
helps company in identifying various threats of market such as High debt ratio and increase cost
of production (Varhegyi and Jepsen, 2017.). Therefore, company by identifying such threats and
taking appropriate measure to remove such threats is able to grow and survive in the industry.
Helps in strategies formation: Company also use in formation of strategies in order to
advantages while entering into new market or launching of new products. Beazley by identifying
taste and preference of target market is able to satisfy needs of customers beyond their
expectancy and increase its profitability and performance. Therefore, it can be stated that pestle-
analysis helps company in planning appropriate strategies in order to gain competitive position.

P3 PESTLE ANALYSIS
Pestle analysis is strategic tool which is used to determine and monitor macro
environmental factors such as political changes, technological change, demographical changes,
inflation rate and law change etc. that gives impact on company's performance. It is important
because it helps business to analyse it's external environment (Policy, 2016). Even it helps to
identify opportunity and risk within organization. Beazley Plc is the insurance company which is
established in London, UK. It offers insurance services to customer across the world.
Organization applies pestle analysis model to examine external environment of business. It is
described below:
Political factors
It includes political stability or instability, government stability, tariff tax and Brexit etc.
gives impact on organization performance.
Positive impact: Organization can get positive impact of political factor in UK because
there is government stability from several years. Due to government stability doesn't have to
change their policies by organization which automatically can enhance their working efficiency.
Additionally organization is headquartered in London, UK that is golden opportunity for
because they can open more franchises in UK by similar policies. Thus, political stability can
give positive impact on organization growth.
Negative impact: Organization promotes their franchises in several countries and offers
insurance services to public. Each country has different government who posses different
policies. Government instability can give negative impact on organization because they have to
keep different polices which follows different government's guideline (Perera, , 2017). It
automatically will influence cost of polices and can creates uncertainty for employee as result
working efficiency can reduce.
Economical factors
it concludes inflation rate, interest rate, taxation level and foreign exchange rate etc.
gives impact on organization such as:
Positive impact: Inflation rate gives positive impact on organization performance because
UK is financially is more strong due to high employment. It automatically influences people
ability to invest higher amount. GDP rate is too high in UK that automatically can influence

Beazley ability to peruse it's long term insurance strategies. Thus, inflation rate doesn't give any
negative impact on organization insurance policies.
Negative impact: Organization offers insurance services to customer in different
countries where can get negative impact due to high inflation rate. For example each country has
different GDP rate based on the employment ratio. Several countries like US, Asia and Middle
East has different GDP rate in term of employment and education ratio. Due to high inflation rate
most of the people doesn't prefer to buy insurance services from company. High unemployment
ratio can reduces buying behaviour of customer which can amitotically give native impact on
organization.
Social factors
Cultural norms, consumer preferences, increase rate of immigration and change in
behaviours are known as social factors. It gives impact on organization performance such as:
Positive impact: Organization gets positive impact of immigration rate because large
number of people who immigrate in UK's countries for job purpose that improves organization's
insurance strategy. The main reason behind is that most of companies provides insurance
facilities to employee who belongs to different countries. Thus, immigration rate influences
selling behaviour of employees. Organization offers online shopping facilities to customers
where they can directly use mobile to check out information about insurance companies. Thus
organization gets positive impact on their performance.
Negative impact: organization gets negative impact from immigrants due to education
level. Most of the immigrant leaves their country due to low opportunity of job and they moves
to UK. Due to low education level they don't get good job position which automatically reduces
their financial position (Gupta, Gupta and Gupta, 2019). So they unable to buy insurance police
services which directly gives impact on organization strategies because organization can't offer
consultancy services to them.
Technological factors
Emergence of innovate technologies and automation are comprises into technological
factors. It gives impact on organization which is described below:
Positive impact: Emergence technology can gives positive impact on organization
because they get easy way to access large number of customers and aware them about new

services like consultancy and prime product services. Even organization offers online networking
services to customers where they can resolve their queries about insurance services.
Negative impact: Continuous changes in new tecvhnologi8rs gives negative impact on
organization because it enhances costs of service. Additionally it requires high maintenance to
take sustainable advantage within company.
Legal factors
Changes in law, employment law etc. are known as legal factors which gives impact on
organization.
Positive impact: Organization gets positive impact of employment law because
organization has goal to reduce unemployment from country. Where organization gets positive
impact because they get high productivity of employees within workplace due to high
recruitment of job vacancies.
Negative impact: Wage rate gives negative impact on organization because according to
law company can't hire employee on low wage. So organization unable to hire large number of
employee within workplace.
Environmental Factors
This factors help the business organization to understand the variable factors which are
directly related to environment and impact the business activities. It is very essential or business
to develop ethical values in the market which helps to increase the potential of the company to
create trust. This factors also helps the company to increase its brand value to gain higher profit
margins effectively. Beazly need to analyse all the factors w3hich ca increase the efficiency of
company to incorporate with all the environmental factors.
Positive:Due to climatic changes and high risk of life of customers. This also increase the
sales of life insurance products of the company (Achinas, and et.al., 2019). The company
provides security of health in sum assured to increase the potential of the business in the market.
Change in climate can also impact the market share of Beazly insurance company.
Negative: As there is a rise of environmental concerns in the global markets and
governmental has imposed many environmental policies which all the business has to adopt in
order to be lawful in nature which also impact the profit margins of the company. This reduces
the efficiency of the company to compete in the global market and reduces the opportunity of
growth. Change in environmental also impact the financial position of the cm0pmay to

implement new research and develop not to invest and attract more customers in the company.
As Beazly has to implement corporate social responsibility activities which increase the cost of
the company (Christodoulou and Cullinane, 2019), however this increase the positive image of
the company in the market. Globalization has also increased the risk of these factor on the
company as it is impacting global economy due to increase in global warming negatively. As the
company is providing services to their customers which is not directly contributing in the
pollution even though the company has to pay the taxes to trade in different location and support
the cause effectively.

REFERENCES
Books and journals
Arnaboldi, F. and et.al., 2018. The performance effects of board heterogeneity: what works for
EU banks?. The European Journal of Finance, pp.1-28.
Stewart, A., 2017. Exploring board perspectives on non-profit executive turnover. Voluntary
Sector Review. 8(2). pp.169-186.
Hoang, T. C., Abeysekera, I. and Ma, S., 2017. The effect of board diversity on earnings quality:
An empirical study of listed firms in Vietnam. Australian Accounting Review. 27(2).
pp.146-163.
Varhegyi, M. M. and Jepsen, D. M., 2017. Director succession planning in not‐for‐profit
boards. Asia Pacific Journal of Human Resources. 55(1). pp.106-126.
Hoang, T. C., Abeysekera, I. and Ma, S., 2018. Board diversity and corporate social disclosure:
evidence from Vietnam. Journal of Business Ethics. 151(3). pp.833-852.
Keay, A., 2017. Stewardship theory: is board accountability necessary?. International Journal of
Law and Management.
Achinas, S and et.al., 2019. A PESTLE Analysis of Biofuels Energy Industry in Europe.
Sustainability. 11(21). p.5981.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21). p.6046.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-
The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws,
pp.1-11.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Policy, P., 2016. What is pestle analysis.

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