John Wood PLC: Examining Governance, Structure, and PESTLE Analysis

This report provides a comprehensive analysis of John Wood PLC, a British multinational engineering and consulting business, focusing on its governance, structure, and the influence of its business environment. It delves into both internal and external factors, utilizing PESTLE and Porter's Five Forces to assess the impact of political, social, economic, technological, environmental, and legal elements on the company's policies and competitive advantages. The report explores the company's legal structure as a limited company and how its organizational structure facilitates decision-making and adaptability. Furthermore, it examines the importance of conducting a PESTLE analysis, highlighting its role in strategic planning, market entry, and overall business growth. The analysis also covers the company's strengths and weaknesses through SWOT and TOWS analyses, offering insights into factors critical for John Wood PLC's sustainable growth and profitability in the UK market.

Examine how the company is governed and
structured Examine how the company is
governed and structured
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EXECUTIVE SUMMARY
In this following report of Business Environment is described about business influence by
different factors and environment such as internal and external environment. In this external and
internal environment Pestle and Porter five forces plays an important role to generate business
outcomes in terms of political, social, economic, technological, environment and legal. All these
factor influence the polices and inflation to gain competitive advantages. By assuming the
different types of business having their separate legal entities measure about their influence to
generate positive outcomes. Apart from it, external factors are the one on which business get
impact and more or at the time of business established to get interacted with different influence
to gain more competitive advantages. For using SWOT or TOWS along with Pestle strength and
weakness generate more wide information regarding about which factor plays an important in
business growth
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Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
John wood plc is governed and structured...................................................................................4
TASK 2............................................................................................................................................6
Importance of conducting PESTLE analysis for a company.......................................................6
TASK 3............................................................................................................................................7
PESTLE framework to analysis internal and external environment...........................................7
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10
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INTRODUCTION
Business environment is defined as the sum of the accumulation of all the internal and
external aspects likewise employees, buyer’s requirements and expectations, supply and demand,
management, clients, suppliers, owners, activities by government, innovation in technology,
social trends, market trends, economic changes, etc. however, the aspects mainly influences the
operations and functions of the business and how a business works direct or indirect basis. In
today’s modern and competitive business era the key motive of each small as well as large
business organisation is to manage effective environment and enhancing the operations of the
business. In this present study, analysis has been executing over the John Wood Group Plc, thus
it is mainly known as Wood and it is a British multinational engineering and consulting business
which has its headquarter is in Aberdeen, Scotland. The company mainly provides the facility of
provides project, engineering, and technical services (Cao, Jiang and Zou, 2020). The Company
offers project and modification services including onshore, engineering, project management,
repair orders, construction, commissioning, fabrication, and maintenance services. John Wood
Group serves oil and gas, industrial, refining, power generation, chemicals, and energy sectors
worldwide. The entire analysis of the study is based over conducting internal and external
analysis which aid value for the business in implementing effective environment to generate
more revenue and development. Under this report discussion regarding size, scope, legal
objective is undertaken. Besides this SWOT and PESTLE analysis is performed along with
analysing positive and negative dimensions as well.
TASK 1
John wood plc is governed and structured
This company is having an objective to become the best premium, differentiated business
firm that is providing services across the world. They want to have market position that will help
them to manage the secure and affordable energy transition. Limited company is known as form
of corporate structure that is available within the country. A limited company has its own legal
entity and there are shareholders and owners who persistently operate different business
objectives and goals. There is different way for directing g different operations. The
organisational structure for the company is very effective as it will be related to work and make
appropriate images to conduct the team and make systematic changes. It will be helpful for the
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large scale company to make specific decision and changes which are related to analysing
growth and adoptive nature of the company. John wood plc are able to analyse the outcome for
the growth to analyse the outcome and make sure for addressing effective team management. It
will be helpful for the growth to analyse the outcome and me appropriate images in term of
market demand
Public limited companies are known as the one which operate basically in UK and some
common wealth countries. John wood plc is a small private owned firm that is operating business
within market (Nguyen, and et.al., 2021). There are different stocks, offered, owned and
exchanged within the number of shareholders, etc. There are following types of private
organisations –
Sole proprietorship- This is known as business which is business owned and managed by a single
person. There are no other people involved within this management. There are different assets,
liabilities and settle the debt.
Partnership - A partnership is defined as the way of similarity in operating different functions
effectively. There are lots of similarities between the partnership and a lot of similarities to a sole
proprietorship. Corporations are owned by shareholders or individual investors who provide
capital to the business through the purchase of the corporation’s stock. These are exceptions for
cooperation. There is also need to have proper management and development of effective
partnership. There are different ways to manage the work and develop the business operations
that will help to manage the work The partners bear unlimited personal liabilities on any debts
incurred by the business. The main types of partnerships include general partnerships, limited
partnerships, and limited liability partnerships (Viriyasitavat, and et.al., 2020).
Cooperation - These are known as the corporation is a for-profit or not-for-profit business entity
that exists as a separate legal entity from its owners. A corporation possesses the rights and
privileges of an individual, as it can enter into contracts, sue or be sued, own assets, and pay
taxes.
John wood plc is a company owned by private owned firm. .
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TASK 2
Importance of conducting PESTLE analysis for a company.
PESTLE analysis is a framework and a tool used by businesses and the experts available for
analysing the external environment of the company and the respective industry in which it exists.
PESTLE is a framework which has six major factors that focuses on the varied macro level
aspects of the industry which are affecting the operations and the business of the organisation
operating in it. Hence, it is determined to be an important tool for businesses like John Wood Plc
a British multinational organisation which has been in the place and in the engineering industry
and consulting industry (Li, 2020). Thus, PESTLE plays a very important role for John Wood
Plc and these are as follows:
 The tool is useful for growth and development of the organisation, as the main aspects
which is offered through it is of evaluation of and appropriate image of the industry and
how business can grow. Hence, the framework enables the company to make entry in
new market and develop further as with the help of industry analysis the business gets
enough knowledge of the appropriate market in which the company needs to move and
what are its growth opportunities.
 Any department in the business organization Like John Wood Plc like accounts, sales and
marketing can be controllable by the internal people and management as managers can
put more people in every department where the need arises and the possibility to generate
more revenue arises (Lisun, 2020). At end, these results depend on the people working
inside. However, external factors which are analyzed with the help of PESTLE model
like political, economic, social, technological, environmental, and legal have existed and
imposed influences on those internal factors. Hence, its analysis and usage enable John
Wood Plc to make proper decisions which are beneficial and offer the company a regular
chance to grow and develop further. This is where PESTEL analysis plays a great role.
 It helps organizations doing strategic planning to expand their businesses. The
information and resources informed by applying the PESTLE analysis framework enable
the John Wood Plc a chance to make strategic decisions by taking into considerations
each and every potential feature and the values which are beneficial for the brand as well
as offers the chance to the company to be more accurate and agile when required.
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 PESTLE could be used by businesses in order to analyse external environment condition
which could be helpful in taking appropriate decisions related to business expansion. As
PESTLE analysis is a multidimensional approach that could be helpful in providing far
sighted benefits to the business in respect of analysing differential condition which are
running within the market. Besides this with the help of PESTLE analysis economic
condition can also be analysed and this would be beneficial in managing internal business
functions in most effective manner. Similarly using PESTLE analysis impact over society
can also be analysed so that societal benefits can be calculated which are seen due to
business functions.
TASK 3
PESTLE framework to analysis internal and external environment
It is a strategic tool that allow company to effectively analysis environment prevailing in
business environment. These determine the extent to which government and government policy
may impact on an organisation or a specific industry. This would include political policy and
stability as well as trade, fiscal and taxation policies too (Sanda, 2021). It helps company to
ensure long term sustainability and growth in a well define and effective manner. Mentioned
below PESTLE analysis of John Wood is conduct:
Political: It includes legislations of government and other political rules, in UK there is
high rules and regulations implemented by government which is essential for John Wood group
to implement. It has been evaluated that respective organisation is having strong relationship
with country government that allows them to conduct business operations in a well define and
effective manner.
Economical: This include taxes, interest rate, borrowing rates and more. In terms with
John Wood it has been determined that, UK is having strong economic environment with the
help of which company can take use of various economic opportunities. These factors impact on
the economy and its performance, which in turn directly impacts on the organisation and its
profitability. Factors include interest rates, employment or unemployment rates, raw material
costs and foreign exchange rates (Karemi, and Chanbari, 2020). This will help company to
ensure long term sustainability and growth. In addition to this it has been determined that it is
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essential for company to make sure that they have implemented economic strategies in order to
overcome economic fluctuation.
Social: It has been evaluated that there are significant changes prevailing in needs and
demands of customers. In UK it has been determined that customers are more focused towards
buying products and services that are environment friendly. Furthermore, it has been evaluated
that government of UK have also implemented different types of laws in order to maintain social
values. John Wood ensure that their operations do not affect sentiments of community in any
way (Dzwigol, Dzwigol-Barosz, and Kwilinski, 2020). These factors scrutinize the social
environment of the market, and gauge determinants like cultural trends, demographics,
population analytics, etc. An example of this can be buying trends for Western countries like the
US where there is high demand during the Holiday season.
Thus, as per the above PESTLE analysis it has been evaluated that John Wood group is
having strong economic advantage in order to conduct long term sustainable operations in UK.
This will help company to enhance its profitability and growth in a well define and effective
manner.
Technological: Technology is one of the factors that is continuously changes. An
organization should analyse technology so that every activity and work could be done effectively
and efficiently. So, John Wood PLC should focus on getting technology that could work with
full speed and assist in increasing the profitability and revenue level (Abbas, 2020). The
company must focus on new developments of technology of competitors of John Wood PLC. It
must also have concerned about the effect on products that are being already offered. It also
easily assesses the effect on cost structure in gas and oil industry. The new developmental
technology helps in bringing advance technology that could help in reducing the cost of
organization and increasing the profit. The technology assists in increasing the speed of working
done by management to increase the profitability.
Legal: Every country has its own regulations, rules and legislatures, they are not rigid it
keeps changing. M&S conducts training session so they can keep themselves updated with the
current laws. The brand came under public scrutiny when they were accused of failing to protect
its worker’s interests (Sabadash, 2020). They had charged under the Health and Safety at Work
Act 1974 for the safety of the workers and employees. This is an important factor for an
organisation because it helps them in successfully development of their business legally. John
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Wood PLC, usually known as Wood, is a British multinational engineering as well as consulting
business that headquartered in Aberdeen, Scotland. There are various laws that direct effects on
the business environment in a various nation while there are several policies that John Wood
PLC maintain for themselves. Along with this, Legal evaluation takes into reason both of these
angles as well as then charts out the strategies in light of these legislations. For example,
consumer laws, safety standards, labour laws, etc.
Environmental: This is another factor of PESTLE analysis that helps business
organisation in fulfilment of their environment objectives. Environmental factor: It is important
factor that focuses over the impact of organisational functioning on environment. It is important
for all organisation that improve their business functions in such manner that these does not have
any negative impact over environmental determinants. In respect of the UK, the government is
too much aware and wants that organisations always follow the stated regulations. This brings an
obligation over all organisations that they fulfil environment requirements otherwise have to bear
fines and legal penalties. John woods is electrical engineering consultancy organisation and
focusing towards fulfilment of environmental concerns (de Medeiros, Hoppen, and Maçada,
2020) The management is aware of environmental regulations about reduction of carbon
emission and environment safety. This is the reason that they have strategies that always
focusing over the use of renewable energy and green equipment’s so able to deliver positive
contribution towards nature. This has positive impact over the image of an organisation as they
can sustain in market with the image of green organisational workings.
CONCLUSION
As per the detailed analysis of the study it has been concluded that, in the modern business
era due to high competition in the market organisations are widely concern over implementing
effective business environment to analysing the operations and facility. Therefore, PESTEL
analysis is effective in executing external analysis which helps the business in evaluating the
external environment and helps the business to grow. In addition to this, SWOT analysis is
effectively implementing by the business to analysing the internal aspects which helps the
business to executing the operations of the business.
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REFERENCE
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