Analysis and Research: EE Company External Environment Report

This report presents an analysis of the external environment of EE Company, a mobile network operator and internet service provider based in the UK. The report employs the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental) to assess the external factors impacting EE. It examines opportunities such as government investment in telecommunication services, favorable tax policies, and increasing demand for mobile services due to a young population's interest in smartphones and social networks. The report also highlights threats, including unfavorable tax policy changes, trade restrictions, inflation, changing consumer lifestyles, technological innovations by competitors, and strict labor laws. The analysis provides a comprehensive overview of the external factors influencing EE's operations, growth, and overall business strategy, emphasizing the importance of adapting to a competitive environment and eliminating negative impacts for effective business operations.

External Environment
Research and analysis
portfolio

Table of Contents
Executive Summary: .......................................................................................................................3
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
PESTLE ANALYSIS..................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................8

Executive Summary:
External factors PESTLE must be consider by organisation to take initiative steps for
business expansion by increasing sales or increasing customer base.
INTRODUCTION
EE company deals as mobile network operator and internet service provider. It was
started in 1 April, 2010 as joint venture. It has its headquarters in Hatfield, United Kingdom. The
CEO of the company is Marc Allera. It has around 15000 employees in the workplace. EE
operate 550 retail store in U.K. Its products are Fixed line telephony, Mobile telephony
Broadband internet Digital television. Companies of UK is their customer base.
External environment is the outside factors that make impact on business operation. It is
necessary to analyse to adapt challenges and survive in competitive environment (Sharko Zaitseva
and Gusarina, 2017).
TASK
PESTLE ANALYSIS
Political Environment:It includes various factors such as Government policy, tax policy, political
stability, Labour laws, trade ristriction etc.
Opportunities:
1. The government invest in telecommunication service by collaborate with ofcom so
that EE company provide coverage in different cities.
2. Favourable tax policy (Shmatko, Yanovskiy and Shamina, 2018).
Threat:
1. unfavourable change in tax policy is the great threat for EE Limited because large
part of revenue is paid as tax so it reduces the revenue also.
2. Trade ristriction
Economic Environment: Inflation rate, disposable income, exchange rate, unemployment,
economic growth, etc are some of these factors.
Opportunities:
1. Due to increase in GDP it makes positive impact on household income It tends to
increase consumption of mobile service also so it is great opportunities for EE
limited.
2. Unfavourable change in exchange rate
Threat: Threat of unfavourable variation in inflation rate is generally face by company.

Social Environment: It include factors related to distribution of age,safety and health
consciousness, culture, population, lifestyle etc.
Opportunities:
1. Due to increasing population of young generation and their increasing interest in smart
phone and on social network so to approach these customers is great beneficial for the EE..
2. Positive Lifestyle
Threat:
1. There is always a threat of changing lifestyle and behaviour of consumer are face by EE.
2. Increasing Population
Technology Environment:
It cover different factors related to Innovation level, R&D activity, Innovation, technological change,
technological awareness, automation etc.
Opportunities:
1. By analysing the demand in the Current market EE company launch LTE network at reduced
cost.
2. Automation
Threat:
1. Innovation by competitors are the great great for EE Limited,
2. Technological change
Environment : It cover several factors such as climate, weather, climate change, Pressure from
NGO's, tax policy related to environment etc.
Opportunities:
1. The use of the service, development of infrastructure for better services with in the
field are the good constraints for EE Limited.
2. Favourable change in tax policy (Gollay and et al, 2016).
Threat:
1. Drastic change in weather that effects their sale are threat for organisation.
2. Unfavourable Tax policy
Legal Environment: It include various factors related to law such as employment law, consumer
protection law, copyright, Patent law, discrimination law etc.
Opportunities:
1. UK Government fix rules in the telecommunication by providing customer empowerment on
withdrawing the contract without any penalty so it create opportunities for EE.
2. Patent
Threats:

1. Threat of introduction of new law which is application to their organisation is great threat face
by EE.
2. Strict labour law
CONCLUSION
After deep research it concludes that it is necessary for every organisation to analyse and
study each external factors that makes impact on business operations and revenue. For business
expansion and growth these factors that make negative impact must be eliminate so that business
can run effectively.

REFERENCES
Books and Journals

Gollay, I. N., and et al, 2016. Priority areas of analysis of the external environment of a company-
innovator depending on a type of introduced innovations. Polish Journal of
Management Studies. 13.
Shmatko, A., Yanovskiy, V. and Shamina, L., 2018. Adaptability as a tool for managing an
enterprise in a turbulent external environment. Advanced Science Letters. 24(9).
pp.6323-6325.
Sharko, M. V., Zaitseva, О. I. and Gusarina, N. V., 2017. Providing of innovative activity and
economic development of enterprise in the conditions of external environment dynamic
changes. Scientific Bulletin of Polissia. 11.
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APPENDIX
Factors Opportunity Threat
Political  Government Policy
 Favourable Tax policy
 Trade restrictions
 Favourable Tax policy
Economic  Positive change in
inflation rate
 Growth in economy
 Negative change in
inflation rate
 Unfavourable change
in exchange rate
Social  Increasing population
 Positive lifestyle
 Unfavourable change
in lifestyle
 Negative change in
culture
Technology  Introduction of
advanced technology
 Automation
 Innovation by
competitor
 Technological change
Legal  Patent
 customer protection
law
 Threat of introduction
of new law
 Strict labour laws
Environmental  Development of
infrastructure in field
 Favourable change in
tax policy
 Unfavourable change
in weather
 unfavourable tax policy
change