SIM337 - Business and Management Report: Royal Mail Analysis

This report provides a comprehensive analysis of Royal Mail's business operations, examining the impact of external factors on its performance. Utilizing the PESTEL framework, the report assesses political, economic, social, technological, environmental, and legal influences on the company. It further explores the role of Customer Relationship Management (CRM) and its significance in the context of changing market trends and competition. The report evaluates the effectiveness of Royal Mail's strategic responses, including diversification and market development, while also identifying areas for improvement, such as enhancing local service functioning and leveraging advanced technology. The analysis culminates in a conclusion that emphasizes the importance of considering external factors and CRM for effective decision-making and sustainable business development within the postal and courier services industry. The report references several academic sources to support its findings.

BUSINESS:
CONTEMPORARY
DEVELOPMENTS IN BUSINESS
AND MANAGEMENT
TASK 1 & TASK 2

INTRODUCTION
Development of business is important so that firm is able to survive in
market. Without development, it is not possible for entity to grow its
function, operations and activities. Thus, entities use strategies and
tactics to develop their business at rapid level. Due to changing
demand as well as need of people in market development of
business has increased at broader scale. Royal Mail, which is postal
and courier service headquartered in UK. It has ample numbers of
subsidiaries such as GLS, e-courier, N.D.C etc. Firm provides its
services at wider level and adopting new tactics for their
development.

EXTERNAL FACTORS INFLUENCING
ORGANISATION BUSINESS
Market is dynamic and changeable which makes difficult
for enterprise to survive in market and run business
smoothly. Organisation is affected by entity at wider
level. Thus, to determine and analyse these external
factors, entities use PESTEL (La Rocca, 2019). It is a
framework used by many corporations to examine the
elements which influence the business activities. It is
time consuming process but effective and is mostly used
corporate world.

Political Factor-These are those factors which comprises
of environmental law, labour law, trade restrictions etc.
Royal Mail is situated in UK and businesses that run
under EU region of country are affected by other
countries political environment such as Istanbul has
stopped the services of Royal Mail for some period of
time due to COVID19. Hence, such type of political
situations acts as hurdle/obstacle in function & operation
of business (Amankwah-Amoah, 2019)

Economical- In every country, economy is the base of the particular
country through which they are able to operate their functions and
operation in proper manner. In relevance with chosen firm, status of
UK economy is stable and adopts the mixed economy. Such factors
include tax rates, policies, unemployment etc. It has also found that
there is huge decrease in postal / courier service business with
implementation of technology and using it at as necessity. But,
overall economic growth is developing at larger scale and which
give a hope to the postal businesses also. Hence, it is essential to
change the business according to the time period.

Social Factor- Further comes the sociological factor in which
standard of living, income, attitude and behaviour of
individual is involved. In relation with Royal Mail, firm is
affected by social elements at broader due to modernization
and development. It has seen that demand and needs of
people towards courier services has been drastically
declined. Thus, to deal with the situation entity is using and
introducing new services in market so that demand of market
rises. It attracts more customers towards the business and
assist in understanding their need wants.

Technological- Then come the technological factors in which advance
use of software, hardware, artificial intelligence etc. are included. In
relevance with Royal Mail, customer demand fast and effective
services within a specific time period. To counter this situation, they
have updated their online management system and but which has
affected their cost of production.
Environmental- In such type of factors climate change, temperature,
pollution etc. are involved. In relation with Royal Mail, to prevent
them self from being getting exploited by such elements they
operate after getting complete information by their environmental
department about these which slows down the growth of business.
With help if environmental factors, enterprise are able to adopts
ethical sustainability in appropriate manner (Ganesan, 2019).

Legal Factor- In Corporation, involvement of government
mainly rises due to not following legal factors in proper
manner. These involves agreement, contract etc. which is
govern by the law with mutual consideration of both the
parties. In context to Royal Mail, changing policies,
rules and regulations of EU region and BREXIT has
affected the progress as well performance level of
business. Such type of laws slows down the overall
development of business and its operations.(Pan, 2019).

CHOSE THEME IN RELEVANCE WITH ORGANISATION AND
ITS IMPACT ON POLICIES & DECISION MAKING
ACCORDANCE WITH CHOSEN INDUSTRY SECTOR
Customer Relationship Management
Customer relationship management also known as CRM in which
relation and interaction with customer is maintained as well as
managed between end user & firm.
Changing trends- Main issue with managing CRM is that in market
trends are changing periodically and demand of people are also
reacting accordingly. Royal Mail did not focus on CRM and
which leads to decline in the business profit. This was the main
reason of merging up with Alibaba so that sales revenue & profit
are covered up with the e-business companies. (de la Rosa, 2019).

Competition- In this competitive era, it is a challenging and
difficult task to run the business with rise in competition. In
relevance with chosen entity, they also are affected by
many competitors like TNT, Robinson, XPO Logistics etc.
This also makes it challenging for business to acquire the
customer for their services & products.
Technology- Nowadays, every firm has adopted technology in their
management to deal with the modernization and urbanization.In context
to Royal Mail, they are adopting technology and using latest online
management system but this also lead increased their cost of
production. To counter this problem, they need skilled employees and
labour who can manage as well as maintained their technology departm

EFFECTIVENESS OF ENTERPRISE RESPONSE
Strategy & tactics adopted by Royal Mail such as diversification and
market development of products and services leads to dealing with
market trends in appropriate manner. By using the strategy methods,
firm is able to prepare plan for their product and target market. To
maintain CRM, RM has been partnered with many other countries
like China and Japan. It means that this assist them in providing
their services across the globe. In decision making and policies such
type of strategies are most valuable and used at wider level. Further,
RM is expanding their market with use of tactics in the business
(Barton, 2019).

Further, another strategy which is helpful for business is
adoption of E-business strategy in market. In today’s
world, most of the firms are operating their business
online via e-commerce websites. This has given a chance
to the industry to access internal market globally. For
example- Amazon & Alibaba Group are merged up with
Royal Mail allowing entity to increase its services &
products at broader level.