Contour Global PLC: Business Environment Analysis and PESTLE Factors

This report provides an in-depth analysis of Contour Global PLC, a power generation company listed on the London Stock Exchange. It begins with an overview of the company's history, structure, and stakeholders, emphasizing its focus on thermal and renewable power plants across Europe, Latin America, and Africa. The report then highlights the importance of PESTLE analysis as a crucial tool for decision-making, helping to identify external factors influencing the company's projects and overall business. The core of the report applies the PESTLE framework to Contour Global PLC, examining the impacts of political stability, economic indicators, social trends, technological advancements, legal regulations, and environmental considerations. The analysis explores how these factors present both opportunities and threats, influencing the company's strategic decisions, expansion plans, and operational costs. The report concludes by summarizing the key findings and emphasizing the need for continuous monitoring of the external environment to maintain competitiveness and adapt to changing market dynamics.

Business Environment

Executive summary
Each association will fulfil the need and needs of both miniaturized scale and full scale
condition. Both the outside and inward partners which influence the choice of the business and
its exercises as well. Contour global plc is an industry of power generation. It is also listed on the
stock exchange of London. The subjects which will be talked about in this brief are the outline of
the Contour global PLC including its history, its structure and how it is represented. At that point
talking about why pestle investigation is significant for the association. Finally, this rundown of
all variables of pestle investigation which influences or effects the Contour global PLC.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Background and structure of Contour Global Plc.......................................................................4
TASK 2............................................................................................................................................5
Importance of PESTLE analysis.................................................................................................5
TASK 3............................................................................................................................................7
Implementation of PESTLE analysis..........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Business condition is the accumulation of all outside and inside variables which are
requirements of clients, workers, desires from the clients, request and supply, providers,
customers exercises by government, advertise patterns, social patterns, change in economy and
so forth these components will influence crafted by the organization legitimately or in a
roundabout way (Prajogo, 2016). Business condition discovers openings, valuable assets,
arranging in helps and furthermore improves the entire execution, benefit and the development of
the business. Contour global plc is an industry of power generation. It is also listed on the stock
exchange of London. The company was founded in 2005 and it is established by Joseph Brandt.
Its headquarter is located in London, England.
TASK 1
Background and structure of Contour Global Plc
Contour Global Plc is a power generation business which is listed on the London stock
exchange. This company was founded in the year of 2005 by Joseph Brandt. In the year of 2015,
this company purchased the Vorotan Cascade in Armenia for US$180 million.
Contour Global plc is a UK based company which is expertise in developing, acquiring,
owns and operates wholesale power generation businesses. The Company focuses on operating
thermal and renewable power plants across Europe, Latin America and Africa. It operates
approximately 4,835 MW in 19 countries and 3 continents (History of Contour Global Plc,
2019). It has approximately 1500 employees and several stakeholders that involves: investment
advisor, insight Investment Management etc. It has several strengths that makes it able to attract
businesses and customers such as: it provides highly co generation facilities, has attractive
growing power market and additional development opportunities as well. It also has high quality
low carbon combined heat and power assets.
Government:
In the context of government and board of directors it is stated that Mr Huff is known as
chairman of board of directors of this company. It co founded this company in the year of 2005.
Joseph Brandt is known as a president and chief executive of this company as it co founded this
company.

In addition, Gregg M. Zeitlin is a non -executive director and has been serving this
company's board of directors since 2008. Ronald Traechselis also a non-executive director as it
has also been serving this company since 2015.
Mr. Camus has served on Contour Global's board of directors since April 2016. Mr.
Santo Domingo is also serving this company as a non-executive director since 2017. In addition,
there are 2 more non-executive directors who have been service since 2017 and 2019. Name of
both non-executive directors are Dr. Alan Gillespie and Mariana Gheorghe (Government of
Contour Global Plc, 2017). Karl Schnadt was being hired as the executive Vice president and
chief operating officer in 2011. The main aim of hiring this person is to manage all technical
functions including power plant operations at Contour Global Plc.
Structure:
In the context of organizational structure it is stated that it follows corporate structure or
functional that consists Of its all board of directors that are mentioned above, officers, employees
and shareholders. The selection of the best organizational culture among all structures is all
depends upon the size, scope and legal structure of the company. It refers a visual diagram that
describes all functions which are being performed by employees. It also makes them aware and
know that whom they need to report to if they have any concern.
Organizational structure also uses several functions, products, markets and processes as
well. The main aim of developing organizational culture is to make all employees and staff
members know that who manages what processes of the company. It also describes the chain of
commands as the way of delegation of tasks and their approval. The ultimate goal of developing
organizational structure is to make an effective decision and contributions of each department
and staff in the decision-making process.
So, it can be said that organizational structure, financial stability, government plays an
important role in operating all functions efficiently.
TASK 2
Importance of PESTLE analysis
It is a very important tool and useful also for whom who take decisions when it
determines the pros and cons of the project. Analysis of this factors may help Contour global
PLC to identify those factors which were going to affect the benefit of the small and large

projects of the business. Analysis of pestle will use to judge those factors which is not from
inside, and they will going to affect the Contour global PLC:
The first factor which is political factor and this is important for the organization because
it helps the business to take the decision for the current direction of the political parties that may
affect the growth and development of the organization (Deasy and et.al 2016).
The economic factor helps to find the effects which are coming from interest rates, taxes,
stock market and the confidence of customer and some different metrics which is economic.
Social factors accept all the changes which has coming in the ethics, advertising, lifestyle,
demographics and culture.
Technology factors determine the present technology which is used by our organization.
It is just checking that the organization is updated or not.
Legal factors helps to assume new laws and regulations that will affect or impact the
work.
Environmental factors will help the organization to identify the environmental factors which will
consider for our organization (Kljucnikov and et.al, 2016).
Using pestle analysis is to try to do correct and systematic analysis of the fresh new
project or a business. This method will offer higher awareness to the choice of manufacturers and
this will helps to grab the changes which will occur and also the impact can have an effect on
these changes on their organization. The pestle analysis wants knowledge and analysis of data,
generally it wants therefore previous and generally solely few. With the results of present and
also the past company will build predictions for the future of the company. It's necessary as a
result of it's whole arrange for the enlargement of the business. House owners of the new
business and also the existing professional level businesses are as well as pestle analysis within
the arrange of their business. Its facilitate to spot the changes in its numerous factors and these
factors can aiming to have an effect on your company within the future. With the breakdown
within the crucial authority in its four classes, and also the understanding by the business house
owners is best as a result of they recognize that consequent move of their business is strategic or
stupid.
The main thing which pestle will keep in mind that they have to know about the external
factors which will going to affect the company and how these factors will create opportunity and
threats for the organization. Analysis of pestle helps the company to find the current external

problems on the company so the businesses the business can improve the facts rather than
assumptions. It will give you analysis which helps the organization to show that which factor of
pestle will help your organization to make changes for the future consequences. It will check the
risks and after that it will take the benefit of that opportunity to be more competitive. It develops
better and long term strategy.
Association need to utilize pestle at the hour of new startup of the business or when they
are revealing the huge issue. It is additionally utilized when the business is turning around the
middle point. At the point when association distinguish pending changes specifically zone, and
they need to reexamine the market. Remember one thing that pestle examination is full scale
level of assessments. Association can't lead pestle examination for little issues and interior
undertakings. The upsides of pestle has inclusion of financially savvy, gives further
comprehension of the association, risk readiness and an approach to misuse openings. It is
practical in light of the fact that the pestle investigation should be possible through just by pen or
paper and a straightforward archive. Pestle examination help to see such a significant number of
different components which can influence the achievement. It urges the vital deduction to grow
more and to comprehend further vital arranging. With the assistance of pestle examination
association have the capacity to investigate changes and fabricate an arrangement which will
diminish any harm or benefit increment (Erasmus, Strydom and Rudansky-Kloppers, 2016).
TASK 3
Implementation of PESTLE analysis
It is already stated that PESTLE analysis tool is being used for analysing all external
factors that can have positive and negative impacts on the company. Contour Global Plc is a
power generation industry, so it is important for the manager of this company to analyse all
political, social, technological factors and measure effectiveness of that factors. After knowing
negative impacts of all these factors the company can make changes in its policies and strategies
and can take competitive advantages (Fozer and et.al., 2017). On the other hand, after analysing
positive factors it can become the market leader by more focusing on all those factors. Some
external environmental factors are described as follows:
Political: Power generation is an industry on which government policy and intervenes
have positive and negative impacts to the great extent. In the context of Contour Global, it is

stated that it wants to expand its co generation Solutions business into Mexico with the
acquisition of Alpek’s combined heat and power plants and also trying to get development rights.
This expansion in other countries can be beneficial and can have negative impacts as well. It all
depends on the political stability and instability of the country in which it wants to operate and
expand its business.
Economic: Economic factors also have several impacts on this company. It will have
positive or negative impacts its all depends upon the way of operating and governing. It is stated
from the above discussed question that it have an effective organizational structure that helps in
out in accomplishing its goals. Interest rates, exchange rates and disposable income of people of
different countries are having critical impacts. Import and export of power determine relative
profits which suppliers can make selling them overseas.
Social: Social factors define those areas that involves shared attitudes and belief of the
population. Some factors that impacts to this industry and Contour Global Plc to the great extent.
includes: population growth, age, career attitudes etc. Due to increment in population, it can
increase the demand of power supply. It can vary with activities in UK economy, technology and
other factors. Generation gap is the other main factor that is affecting this company in a negative
manner. Due to changes and generation gap, this company requires developing new plants and re
licensing of its older plants as well. This re licensing and development of new plants can increase
its operational cost and decrease sales as well. It is an attractive growing power market that can
help it out in attracting several companies and customers towards buying its services. Its all
strengths is also beneficial as they are increasing its brand image.
Technological: Technological factors means increasing use of technologies in this
industry is increasing competition. It is a threat for this company and for that this company is
investing more in research and development and technological tools that are helping this
company in planting power in different countries. It has strong financial stability and it believes
that maintaining constructive relationships with regulators is key to the utilities' financial
performance. The ability of dispatching the whole wind potential is still an issue to be solved and
it can be solved out with making an effective use of some tools (Sridhar and et.al., 2016).
legal factors
These components have both outside and inside sides. There are sure laws that influence
the business condition in a specific nation while there are sure approaches that organizations

keep up for themselves. Legitimate examination considers both of these points and afterwards
diagrams the methodologies considering these enactments. Lawful elements identifies with the
laws, guideline and enactment that will influence the way the business works (Calabrese and
et.al, 2018). There are some factors which have to be taken into the consideration which are
related to the legal aspects. Managing health and safety, tax, competition also have to take care
of consumer protection all the legislations have also a great impact on the organization. Open
acquirement includes obtaining through agreements of merchandise, works, or administrations
required by governments. In such an open action along these lines straight forwardness with
respect to the given government is a higher worth which open law will in general advance.
Environmental factors
These components incorporate each one of those that impact or are controlled by the
encompassing condition (Georgescu and Popescul, 2015). This part of the PESTLE is essential
for specific enterprises especially for instance the travel industry, cultivating, farming and so
forth. Elements of a business natural examination incorporate yet are not restricted to
atmosphere, climate, land area, worldwide changes in atmosphere, ecological counterbalances
and so on. Moreover, developing consciousness of the potential effects of environmental change
is influencing how organizations work and the items they offer, both making new markets and
reducing or obliterating existing ones. Natural variables identify with the biological and
ecological perspectives that will influence the interest in an organization's items and how that
business works. This figure takes thought biological and natural perspectives that could be either
monetary or social in nature (Akhtar and Sushil, 2018). These incorporate temperature, storms,
common disasters, access by rail, air, and street, ground conditions, ground defilement, close by
water sources, etc.
CONCLUSION
From the above study it has been summarized that analysis of external factors played a
vital role. For analysing all external factors like political, social, economic, technological, legal
and environmental, organizations have made an effective use of PESTLE analysis tool. This tool
consists of all factors and helped the company in evaluating and analysing impacts of all factors.
The main purpose of an organization of conducting this analysis was to take competitive
advantages after analysing factors that have positive impacts on it. Making changes in its
strategies after knowing about all those factors that have negative impacts is also the main aim of

an organization. Further, it has shown the way of governing a power generating company.
Importance of structure and the way of making policies also played a vital role in operating
business in a successful manner.

REFERENCES
Books and Journals
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Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20. pp.277-
282.
Kljucnikov and et.al, 2016. The entreprenurial perception of SME business environment quality
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Sridhar, R. and et.al., 2016. A Political, Economic, Social, Technological, Legal and
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Online
Government of Contour Global Plc. 2017. [Online]. Available through
<https://www.contourglobal.com/board-directors>

Online
History of Contour Global Plc. 2019. [Online]. Available through
<https://www.marketscreener.com/CONTOURGLOBAL-PLC-38649308/company/>