Comprehensive Business Environment Analysis for Man Group Plc

This report provides a comprehensive analysis of the business environment of Man Group Plc, a UK-based investment management company. It begins with an overview of the company, its history, mission, vision, and organizational structure, including its various divisions like Man AHL, Man Numeric, and Man GLG. The report then emphasizes the importance of PESTEL analysis for businesses, highlighting its role in identifying trends, macro factors, and potential threats, as well as improving strategies and reducing costs. The core of the report is a detailed PESTEL analysis of Man Group Plc, examining political, economic, social, technological, legal, and environmental factors influencing its operations. The political section considers government interventions and political instability due to Brexit. The economic section focuses on economic conditions, including recession, employment rates, and disposable income. The social section addresses demographic characteristics and consumer preferences. The technological section covers innovation and technology. The legal section addresses rules and regulations. The environmental section considers sustainability. The report concludes by summarizing the key findings and implications of the analysis, offering valuable insights into the company's strategic positioning and competitive advantages. This report is a valuable resource for students seeking a deeper understanding of business environment analysis and strategic management, available on Desklib.

BUSINESS
ENVIRONMENT

Table of Content
INTRODUCTION...............................................................................................................................3
TASK 1.................................................................................................................................................3
Overview of company and its history.................................................................................3
TASK 2.................................................................................................................................................6
Importance of PESTEL analysis for a Business................................................................6
TASK 3.................................................................................................................................................7
Pestle analysis for MAN Group Plc....................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................11

INTRODUCTION
Business environment is an analysis of internal and external of business that helps in
gaining competitive advantage (Alderete, 2020). Man Group Plc is a public company that
operates in UK and deals in sugar cooperage and brokerage that was founded in 1783 by
James Man. The company basically purports into the investment market for the consumers or
general public empowering them to make responsible and profitable investments rather than
risky investments. This report analysis and evaluate business environment of Man Group Plc
that effects on functioning. It also explains about company objectives, vision and mission in
long term for achievement of organisational goals. This report also describes importance of
pestle analysis for Man Group Plc that helps in gaining competitive advantages in the market.
At last, the Pestle analysis is done to understand detailed aspects of the macro environment
affecting the company that help in using available opportunities in the industry.
TASK 1
Overview of company and its history
Man group was founded in 1783, 225 years ago in London by James Man it is
established to provide attracting risk adjustment performance for its customers. Company is
able to grow and expand its business by continuous innovation in its technology and product
to satisfy needs of customers beyond their expectancy. It is one of the leading alternative
investment opportunities providers to its customers and known as hedge funds. As per 2011
company profit have been $69.1 billion under management and increased 25% in 2014 as
$72.3 billion (MAN, 2020). Thus, company performance, sales and profitability has increased
through the years because of continuous expansion and innovation of technology.

Figure 1:Institutional Framework
Source: MAN, 2020
Company mission and vision is as follows:
It is mission statement is to fulfil our responsibilities to provide highest standard of behaviour
as an corporate and individual in order to maintain reputation of company by maintaining
trust and loyalty of stakeholders and customers.
Vision statement
Whereas its vision is to grow and expands its business worldwide by providing qualitative
services products through continuous innovation to satisfy needs of customers beyond their
expectancy.
Structure and operation
Man AHL: It was founded in 1987 that is a diversified quantitative investment manager
providing best return and long term funds (Beylot and et.al., 2019).
Man Numeric: It was acquired by Man Group in 2014 to build diversified quantities fund
management business and to increases its presence in North American Market.
Man GLG: It was established in 55 in London with partnership as GLG partners in 1995 and
publicly listed in 2007 and it’s 1.6 billion. It utilises maximum return and long strategies for
each sectors.
Hierarchy organisational structure means that there are large number of manager and
subordinates in an organisation. It describes relationship between manager and employees
from top to bottom in the organisation. It clearly defines roles and responsibilities of
individual and interrelationship between employees. Well- established communication helps

in coordination of department and effort of individual effectively for achievement of
organisation goals. Man Group Plc has hierarchy organisational structure and there are
number of level or hierarchy so decision making process of company is slow.
Communication of information has to pass through each and every level of hierarchy so it
results in delay in decision making process. Thus, it means that there are several layers for
management of organisation function and narrow span making decision making process slow
(Kowo, Akinrinola and Sabitu, 2018). Employees have to flow long process in order to
communicate with each other’s thus it lead to wastage of time and effort. Information may
also change due to various hierarchies in the management of organisation. But at the same
time hierarchy organisational structure of Man Group plc helps in taking accurate and better
decision as it is taken by number of people. Management of organisation is also effective as
activities of each individual are checked by each manager which results in effective and
better result. It enhances work performance and productivity of employees thus helps in
achievement of organisational goals (Cabrera, and Mauricio, 2017). Thus, organisational
structure helps in achievement of company goals by enhancing work performance and
productivity of various employees through continuous supervision by each manager.
Hierarchy of MAN Group:
Luke Ellis, CEO of
the company
Robyn Grew, MAN
Group COO and
General Counsel
Hinesh, Head of
MAN AHL
Daniel Taylor, Head
of Man Numeric
Ian Swallow, Head
of GPM
Bob Prince, Head of
Man GLG
Keith Haydon and
Adam Singleton,
Head of FRM

TASK 2
Importance of PESTEL analysis for a Business
Pestle analysis is important for company to identify various internal and external
factors that impact functioning of business.
 Identify Current Trends: It helps in planning strategies of company that helps in
gaining competitive advantages in the industry. Pestle analysis is crucial for every
company to differentiate itself from other competitors in the market and enhances its
profit and sales. It can also be concluded from above analysis that it helps in
identifying opportunities and threats that effect on performance of company. If
company does not analysis its internal and external factors, it’s not able to utilize
available opportunities (Mhlanga, 2019). It can be used by business at the time when
it enters into new market or expansion of its product range to gain competitive
advantage. It helps in identifying positive and negative impacts on company by
effectively analysing its external environmental aspects that effects functioning of
business.
 Analysing Macro Factors: The Pestle Analysis helps in identifying the current trends
in the market that impact the operations of the company thus helping in gaining
opportunity and protecting them from various potential threats as well (Kennedy,
2017). Man Group is one of the leading companies in the industry because it has
critically analysis its internal and external factors that affect smoothly function of
company. This analysis of macro factors will help the company in identifying its
competitive strength is able to gain competitive advantage and expand its business.
 Improves strategies to be developed for business: The Pestle Analysis determines
strength of company that helps in taking competitive advantages by using available
opportunity in the market (Jarvis, Stoeckl and Liu, 2016). Man Group Plc has
numerous strength that helps in maximising its market shares in existing as well as in
new market. Effective Marketing strategies are one of the strength of company as it
helps in influencing and attracting large numbers of customers. Continuous
innovation and expansion of products range is strength of company that differentiate it
from other competitors. It strong brand image and superb performance in new market
promoter growth and survival of business in the market. Thus, strategies of company
help in raising profit and market share of company.
 Reduction in Costs incurred: It includes areas where company needs to improve
itself in order to gain cost based competitive advantages in the market. Company by
conducting Pestle analysis is able to find its expenditure and income sources, and try
to improve itself, thus gaining strategic positioning in the market. It performance is
weak as compared to other investment management of fund company such as AHL.
At the same time company brand image was affect when it invests in fraud schemes in
past years. Thus company by stopping such practices and taking measure can protect
itself from various potential expenditures that might be incurred and expand its
business across nation (Kennedy, 2016). It also can build strong brand image in the
market by improving its performance and effectively incorporating various
investments in the areas where it is more important to invest funds.

 Outline Potential Threats: Pestle helps in analysing and evaluating external
environment for protection of company from various. Man Group Plc is facing threat
of increasing competition in the EFT market from new entrants as it would lead to
decrease in profit margin and sales. Another threats for company is consolidate in
fund management industry it can protect itself from such threat by diversifying fund
in investment management industry. Thus it protects company from various threats
and helps in gaining competitive advantages.
 Business expansion strategies: It refers to various opportunities for the company that
helps in expanding its business operation and profitability. Man Group can form
partnership in joint ventures with other bigger firms can boost its sales, performance
and productivity. It can also acquire FRM holding which would be beneficial for the
company in enhancing its business operation (Kolk, 2016). Another opportunity for
business is that by increasing regular scrutinise will be beneficial to list hedge funds.
Thus, opportunity helps in gaining competitive advantages and expansion of business
in the market.
TASK 3
Pestle analysis for MAN Group Plc
Pestle analysis is an analytical tool that is used by company to analysis and evaluates internal
and external factors that affects man group plc. It is important tool for strategic planning of
company in order to gain competitive advantages in the market (Holmqvist and Ruiz, 2017).
It helps in identifying operating challenges that Man Group Plc will face in micro
environment while operating its business in the industry. Pestle analysis of Man group plc is
as follows:
Factor Aspects to be included
Political Factor  Policies
 Rules and Regulations
 Government Interventions
 Political Scenario
Economic
Factor
 Economic Condition
 Inflation
 Employment Rate
 Disposable Income
Social Factor  Demographical Characteristics
 Customs
 Trends and Preferences
 Lifestyles
Technological
Factor
 Innovative
 Latest Technology
 Quality Solution
 Research and Development
Legal Factor  Law

 Rules
 Regulation
 Patent
Environmental
Factor
 Sustainability
 Environment
 Resources
 Weather Condition
Political Factor: It refers to policies, rules and regulation and government intervention in the
economy thus it affect adversely on the functioning of company. If government interviews
highly in the industry company cannot operates its function effectively. Man group plc is a
public limited company so government intervention is less for company (Rittenburg, Gladney
and Stephenson, 2016). It can operates its business smoothly with much restriction as its
shared are owned by public and established to provide benefits to people. But political
instability in UK due to Brexit has increased debt government and public thus which has
adversely impact on capital requirement of company. Import and export of company has also
declined as UK was main trading partner with European Union. Company by operating its
function worldwide is able to survive and grow its business thus enhances its profitability and
sales.
Economic condition: It determinate economic condition and performance of economic in the
country it includes various factors such as exchange rate. Inflation and employment rate in
the economy. Man Group Plc operates its business in UK that is suffering a situation of
recession that means high level of employment and decreases in disposable income of people.
AS Man Group is a public company so high employment rate force company to hires number
of people in the organisation. It also forces company to provide financial services at
affordable interest rate so it can be helpful in development of economy. Thus, it can be stated
that economic condition adversely impact on Man Group Plc functioning (Vij and Bedi,
2016). But despite of all factors company is able to grow and expand its business by
providing financial services are affordable rates thus raising investment. Living standard of
people and economic development.
Social Factor: It includes demographical characteristics, customs, norms and value of people
living in the society in which company operates its business. Therefore it means customers
trends, preferences, lifestyles and culture of people living in the society. It is important factor
that is to be considered to maximise profit of the company. This factor has positively impact
on company as UK is facing situation of recession that high debt of people so they require
funds at lower cost. Thus, Man Group Plc by providing financial services to its customers at
lower interest is able to expand its sales and profitability. Therefore, it can be explained that
social factor has impact positively on the functioning of business.
Technological Factor: It refers to technological development and level of innovation in the
country that could impact on the industry or market (Kennedy, 2019). Companies in order to

gain competitive advantages in the market has to continuous innovate its technology and
spend lot of amount in research and development. Man Group Plc in order to choose best
investment opportunity has used Man Alpha Tech. Thus, company by using innovative
technology in business is able to deliver attractive performance and quality solution to client
portfolio. Thus, it can be explained that it has positively impact on company as use of latest
technology helps in gaining competitive position in the market and at the same time helps in
expansion and growth of business in the market. Company is also able to enhance brand
image of the company by using innovative technology to provide quality solution to its
customers regarding investment portfolio. It has invested large amount of capital in research
and development as it main focus cist to deliver best result to clients. Technology factors
have impact on cost of product and sales profitability of the company.
Environmental Factor: These are such factors that have forefront in recent year only and
are become crucial as resources are in limited quantity so they have to be used in an effective
manner for their sustainability (Cabrera and Mauricio, 2017). People and government are
becoming aware of disadvantages caused by company to environment and resources so they
are forcing company to consider such factor while manufacturing product. Current weather
condition impact on Man Group plc ability for transportation of raw material and finished
goods thus result in delay in delivery of product and services to customers. Company cost of
manufacturing has also increased as it has to spend lot of amount for safety and protection of
environment. Thus company in order to gain support of customers and government has taken
measures such as reduces wastage of material while operating its function.
Legal Factor: This factor is somewhat similar to political factor as it includes law, rules and
regulation of government such as discriminative law, health and safety law and employment
law etc. Companies in order to perform its function smoothly have to abide by rules and
regulation formed by government. Man Group plc has patent its technology in order to gain
competitive advantages in the market. Legal factor has impact positively on company as it
able to build strong brand image by patent its technology and products of company.
Company by ensuring health and safety of employees and customers while operating its
business is able to expand and grow its operation worldwide (Mhlanga, 2019). But at the
same time it has increased cost of company as it has to incur cost to protect health of
employees while performing activities. Thus, it can be stated that environmental factor also
impact on functioning of company by increasing cost of production and reducing profit
margin.
Therefore from above pestle analysis it can be concluded that various internal and
external factors impact on the functioning of business. It helps in increasing sales and
profitability at the same time it increase cost of production. Thus, it can be stated that
company by identifying various macro environment factor gain competitive advantages in the
market.
CONCLUSION
From the above report it can be conclude that business environment of an organisation
affect operation of company adversely. It can also be explained that company by expanding

its product range and moving into financial services segment is able to enhance its
profitability and sales. It can be stated from above analysis that Pestle Analysis helps in
identifying the current industrial environment in which the company is operating thus protect
itself from various threats and helps in gaining available opportunities in the industry. It is
also describe that pestle analysis is crucial for company as it helps in planning strategies that
are useful for achievement of organisational goals. Thus it can be concluded from above
report that internal and external factors effect on company functioning and help in enhancing
profitability and sales by differentiating it’s from other competitors. At last it can be conclude
that Man Group Plc is a leading company by effectively analysing its environment that affect
functioning of company in which it operates its business.

REFERENCES
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Online
MAN, 2020. [ONLINE] Available through: < https://www.man.com/about-us#_defining-
man-group>