Business Environment Report: MAN Group PESTEL Analysis and Governance

This report offers a comprehensive analysis of the business environment, focusing on the MAN Group PLC. It begins with an executive summary that defines the purpose of analyzing the external environment of business along with information about the company and its structure and governance. The report then delves into the structure and governance of MAN Group, including a company overview and the role of corporate governance. It highlights the importance of PESTEL analysis for evaluating external forces. The report explores the PESTEL framework, examining the impact of political, economic, social, technological, environmental, and legal factors. The report also discusses the application of PESTEL factors within the financial services industry. It concludes by emphasizing the importance of understanding external environmental constraints for making informed business decisions and adapting strategies for success. The report also includes references to support its findings.

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Executive Summary
This report defines the purpose of analysing the external environment of business along with
information about the company and its structure and governance. It is for controlling and
directing the company to do a better thing and make wiser decisions for further development
(Cregård & Sobis, 2017). Also, this report is based on knowing the importance of PESTEL
Analysis within the company while evaluating external forces in the environment for making
changes as per the requirements in the new markets of investment or financial service
industry (Barbara, et al., 2017). The necessary part is for the management to understand such
factors impacting directly within the business for availability of opportunities and
appreciating constraints.

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Contents
Introduction................................................................................................................................3
Task 1- Structure and Governance.............................................................................................3
(A) Company Overview.....................................................................................................3
(B) Governance of the MAN Group..................................................................................4
Task 2- Importance of PESTEL Analysis..................................................................................6
Task 3- PESTEL Framework.....................................................................................................7
(A) Impact of PESTEL Factors..........................................................................................7
(B) Application of the PESTEL factors.............................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
In business, there are forces and institutions referring environment that affect the
organisational performance. Environment defines both internal and external but, here the
focus is mainly on external environment of an organisation. Such external factors in business
happen outside affecting the key internal functions as well and possible objectives along with
strategies. This impact the degree of competition being directly and indirectly interactive
consists of stakeholders (Prajogo, 2016). This report will focus on the structure and
governance of the company chosen that is ‘Man Group PLC’. The discussion is based on
evaluating importance of PESTEL analysis for the company along with using it for analysing
the external environment along with examining its macro factors required by the management
of the company to understand. This report will also discuss the abilities to appreciate
opportunities and constraints within a business.
Task 1- Structure and Governance
(A) Company Overview
Man Group PLC designed its principles of business to define and filter the company’s key
priorities, culture and focus. The performance of the company is defined through focusing on
superior risk-adjusted achievement and clients are Man Group’s heart with a responsibility of
employees doing the right thing and conduct the business with integrity highest standards.
They succeed by commitment, talent, teamwork and diligence with making differentiation
and thinking real (Haill, 2019). Man Group is an active investment management company
aims at delivering client portfolio solutions and attractive performance along with latest
technology deployment across the company’s business for helping to make sure that they lead
within the evolving industry. There are over 1,500 employees within the company with the
revenue of $960 M in financial year of 2018. The company’s businesses in investment
management leverage its robust infrastructure providing diverse strategies range across
investment styles, approaches and asset classes (Man, 2020). There is a continuous
investment in the company concerning research, talent and technology for striving to deliver
best outcomes for clients.

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Source: (Craft, 2020).
(B) Governance of the MAN Group
In an organisation, facilitating entrepreneurial, effective and prudent management shows the
purpose of corporate governance for delivering long-term success. Corporate Governance is
used as a system for controlling and directing the company where Boards of Directors are
responsible having a hierarchical structure. The role of shareholders in governance is for
appointing the auditors and directors. Also, this helps in attaining satisfaction to them for
accuracy in place of governance structure (Business Roundtable, 2016). It is essential for the
company to set strategic aims, management supervision, providing leadership for effect and
to report shareholders on stewardship which is included in the board’s responsibilities.
Corporate Governance helps in setting the company’s values along with differentiating from
daily operational management through full-time executives. Also, it helps in improving the
accountability and transparency of the company’s existing systems having broader impacts
while solving issues within the sector structures for better performance (Aguilera & Crespi-
Cladera, 2016).
Direct interactive forces involve customers, employees, owners, competitors, employee
unions, and suppliers where management of the company takes the responsibility. Indirect
interactive forces involve economic, socio-cultural, technological, legal and political, and
global impacts on business activities. Thus, both external and internal environment creates a
business environment consists of scale, development strategy, success, and vision with

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overall understanding about the concerns by management or leaders knowing negative and
positive effects in and outside the company along with producing suitable strategies handling
the situation (Jabeen, et al., 2016). In Man Group, there are six non-executive directors where
three of them are female and Luke Ellis as a CEO (Chief Executive Officer) of the company
(Reuters, 2020). The Board of Directors involves the Chairman of the company John Cryan
involved actively in delivering and creating value engagement to shareholders.
Man Group PLC focuses at investor relations as well for the success of business model from
the start to the end with performance of investment. This upholds and leads the obligations of
company to broader communities in which it operates. The company monitors performance
of the management through transparent reporting and active engagement while maintaining
internal controls, delivering on strategy and operating within risk acceptance (McGachey,
2019). In business, the company’s long-term growth is supported by the Board through
finances oversight and resources and talent development which requires delivering
continuous value for shareholders, employees and clients within a structure that prioritises
investing responsibly to create opportunities in further growth (Man Group, 2020). The
relationship between the Board of Directors and the stakeholders is diversified and
strengthened when benefiting shareholders and clients within the company. There is close
working of the executive management team and the Board to guide the company’s journey
capitalising to position based on its investment expertise and first-class technology along with
maintaining its position of leading active investment managers across the globe (Nikolova,
2020).
Man Group PLC intended to implementation of new corporate structure with the means of
arrangement scheme under The Companies Act requiring the company’s shareholders
approval and sanctioning within the Court at meetings held announcing connection circularly.
Man Group decided to restructure the plan aiming to streamline base of bloated capital,
maintaining ability of dividend policy and increasing flexibility financially. The company
consulted its shareholders proposed to create new group holding company referred as “New
Man” based on means of arrangement scheme. The issuing of ordinary shares by New Man to
shareholders is with one-for-one basis for trading on the LSX (London Stock Exchange) to
report positive investment performance (Cruise & Vellacott, 2012).

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Task 2- Importance of PESTEL Analysis
PESTEL Analysis is a structure used by the management for analysing and monitoring the
external environment impacting an organisation. The outcome of using this tool for
identifying turns to weaknesses and threats. In business, establishing criteria at the time of
strong indication on influence depends on the industry along with need of political or legal
standard abiding by and other crucial factors affecting the business (Amable, 2018). This tool
helps decision-makers to understand occurrence of changes within the given market. Also, it
impact relationships and marketing where the company is working hard for development to
make better business decisions. It is mainly concerned with the external environment within
the criteria of elements such as physical environment, the law, and other more population
ethics resulting in analysis to be extremely valuable.
In business, examining expansion or consolidation can be done through information within
the borders. Across the globe, collapsing of regulatory restrictions make companies look for
new markets not explored before (West Ford, 2016). PESTLE Analysis help in making
decision even if particular nation does or does not holding any potential for profitable
business. In the market, the potential for doing good or not along with helping in weighing
things are in more of objective balance. Lastly, it encourages in providing the necessary data
and encouraging strategic planning. Also, helps in enhancing economic changes and
technological advancements. The importance shows the company’s business ahead of the
competition where management adjust strategies continuously reflecting the environment
within operating of businesses specifically related to foreign markets (Teik, 2013). Thus, this
tool shows the company’s bigger picture of its external environment mainly considering
foreign markets.
It is helpful for managers to gain the opportunities and threats better understanding that they
face to build a better vision of the business in future and for competing profitably. Also, it is
helpful in analysing the growth or decline in market along with the direction, position, and
potential for a business. At the time of entering into the new market, the factors are
considered important among providing insight into the key market ‘flatteners’ status
consisting both future trends and present state. It is essential to understand macro-
environment for the companies to make sure about alignment of strategy within the powerful
change forces affecting the landscape of business (Kara, 2018). In the environment, the

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exploitation of change turns out to be successful rather than simply opposing or surviving the
change.
PESTEL is important to understand for managers to help avoiding strategies that have a
chance to fail as per the environment’s circumstances. It is helpful in entering into a new
country or area prior critically while understanding PESTEL. It congruent with strategy in the
home environment while giving no assurance among aligning in other nations. Hence, in
PESTEL Analysis, the relevancy of factors is considered within the company’s context. The
information is categorized and identifies applying to such factors also analysing data and
drawing conclusions of at last. This analysis consists of common mistakes assumed to be
correct without testing it and investigating alternative scenarios (Silva, 2016).
Task 3- PESTEL Framework
MAN Group uses PESTEL analysis for analysing the macro environment of the company
consisting political, economic, social, technological, environmental and legal factors where
changes impacting directly to the company and other competitors in the Financial Services.
This tool provides information to the company for operating challenges faced by MAN
Group within the macro environment other than competitive forces (Man, 2020).
(A) Impact of PESTEL Factors
Political Factors
This factor plays a crucial role for the company by determining the impact in terms of
profitability in long-period considering certain market or country. These factors consists of
political stability, corruption level, tariffs and trade regulations related to investment,
interference and bureaucracy by government in investment services industry, industrial safety
regulations, pricing regulations and others. The change in government hit for hard
investigation along with publishing the investment groups’ profit margins and scrutiny
increment while charging the fees by the company’s active managers (Walker, 2019).
Economic Factors
In an economy, these factors include interest rate, inflation rate, foreign exchange rate,
savings rate and economic cycle examining the aggregate investment and demand. Also,
other factors company look after while conducting analysis are economic system operation
type and its stability in nations, government intervention in investment and free market,

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financial markets efficiency, workforce skill level, and others. Here, high rate of inflation
shows the stock-bond correlation depending on its direction and level (Funnell & Neville,
2018).
Social Factors
Social factors consists of power structure, class structure and hierarchy in the society,
population’s skill level and demographics, leisure interests, education level and standard
within the company’s industry, and others. The increase in immigration and changes in
behaviours related to the close monitoring updates with a potential impact on the company’s
employees. While, addressing the climate change along with investment strategies has its
importance for investors, financial regulators and money managers considering the issue of
ESG (Canfield & Desmyter, 2019).
Technological Factors
Within industries, rapid disruption through technology is done across the globe such as
transportation industry transformation which helps in speeding the technology disruption
(Keidan, et al., 2019). Such pointers is used for MAN Group as well for coping up and
enhancing profitability by making changes involving current technological developments by
the company’s competitors as well, impact of technology on product offering, cost structure,
value change structure, and technological diffusion rate. Automation within the MAN Group
leads in manufacturing and designing of electronic and electrical assemblies and control
systems, bespoke sub contract and cable harnesses manufacturing solutions (Resources,
2019).
Environmental Factors
There are different environmental standards or norms within different markets having an
impact on the profitability of the company. Every country have their own different liability
laws and environmental laws so before entering into the new markets or thinking to establish
new business requires to operate in such markets (García Martín & Herrero, 2020). These
factors include waste management, climate change, regulation of laws, attitude towards the
environment, and others. The company towards the sustainable future concerned about the
climate security, impact investing, climate risk in monetary dimension, and approach to
responsible investment.

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Legal Factors
There should be proper evaluation before entering into such markets that can lead to the
company’s theft of secret sauce which shows the edge of overall competitiveness (Gnjidić,
2018). The leadership of the company consists of legal factors such as intellectual property
law, copyright, anti-trust law, employment law, discrimination law, data protection, consumer
protection, and others. Across the globe, business of MAN Group consists of expansion along
with fund and corporate entities with broad range of regulations and laws where they failed to
comply while putting risk of lawsuits, fines or reputational damage impacting the market
where the company operates (Man Group Plc, 2018).
(B) Application of the PESTEL factors
Political
MAN Group specialising in investment services across the globe while exposing to various
types of political system risks and political environment. In dynamic investment services
industry, to achieve success across different countries diversifies the political environment
systematic risks that can be analysed by the company before investing or entering in the
certain market (Sahloul, 2019). For instance, MAN Group while making developments
defines the demand for risk assets within an alternative of government bonds of developed
markets in terms of high quality. Also, there is implementation of quantitative tightening
policies by the Fed with a significant change for long-term and running of the current deficits
by the US Treasury continuously (Ossés, 2019).
Economic
Man Group is responsible for investment helps in shaping the future recognising ‘RI’
(Responsible Investment) fundamentally as per the company’s fiduciary duty to beneficiaries
and clients. For instance, it is essential to understand the sound stewardship in investors’
capital management and approach to RI to make sure the values and interests aligned closely
to those of shareholders and clients. The company viewed ‘ESG’ (environmental, social and
governance) within the UN-supported ‘Principles for RI’ (PRI) for analysing fundamental
part of investment risk management (Man RI, 2020). This concept of RI is linked to
environmental, social and corporate governance along with use of PRI principles. For
example, there is engaging of competition norms impacting the company’s competitive
advantage where MAN Group uses the industry’ economic and inflation indicators, growth

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rate within the investment services industry based on consumer spending forecasting the
growth trajectory (Thompson, 2019). In the US, the inflation is accelerated where the chances
could be forcing the Fed going back into the tightening mode based on the price cuts of
market participants going forward. Also, the company faced the struggle of deflation before
making change in inflation regime and new possible policy initiatives relating to risk while
switch from Reflation to Inflation (Funnell, et al., 2019).
Social
In the company, concept shows MAN Group’s commitment in relation to inclusion and
diversity, for instance, through ‘Paving the Way’ campaign for taking initiatives. This
describes the necessity to consider the external factors of the environment for future success
of the company. MAN Group’s way of doing things and the culture of the society impacts the
company’s culture within an environment. Secondly, the population’s attitudes and shared
beliefs play a great role while marketers understanding the customers within the given market
and their designing of marketing message for the consumers of investment services industry
(Clark, 2019).
Technological
MAN Group use the firm-wide and sophisticated technology platform synthesises data from
numerous providers externally as well along with ESG’s data internal proprietary through
providing structure and tool supporting decision making of investment and to monitor non-
financial risks (Thompson, 2019). For instance, MAN Group help customers in outsourcing
solution through automation while fulfilling their needs by production and engineering
capabilities to deliver desired outcome (Automation, 2019).
Environmental
MAN Group’s role in the environment system is impact and interprets the environment
recognition based on indirect or direct perception through technical means. The defining
structure by the environment for human behaviour is the surroundings that examine the
conduct rules consisting physics, schemes, law, customs and norms (Cassenti, 2019). The
company is focused towards sustainable future based on its performance based on work-in-
progress in the hedge fund industry making responsible investment. For instance, MAN
Group determines sustainability through migration to governance, climate change and global
norms. In the investment industry, there is a presence of greater risk while representing

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climate change considering economic, political and financial characteristics. Also, the
company made investors to engage in greenhouse gas emitters globally leading towards
improving governance on climate change, strengthening financial disclosures related to
climate and curb emissions (Man Group Plc, 2018).
Legal
MAN Group works across the globe that requires making legal framework where institutions
are not robust much for protecting the company’s rights of intellectual property. For instance,
MAN Group took the responsibility of designing corruption and anti-bribery complying with
the applicability based on laws and regulations under the UK Bribery Act 2010 and the US
Foreign Corruption Practices Act 1977. It also consists of procedures, policies and controls
for detecting and preventing corruption and bribery to use the best thing of “knowing your
customer” (Dodsworth & Sedghi, 2019).
Conclusion
Based on the above discussion of MAN Group’s external environment, it is concluded that it
is important for the company to analyse the environment through using PESTEL analysis as a
tool wanting for doing business in foreign markets before entering or investing in it. Before
analysing, it was essential to know the company’s structure and its governance for operating
well in different nations and achieving success and growth expansion in future. The
development of strategy is the duty of management while identifying the external factors
along with challenges faced by the company and also taking decisions before making any
changes in the industry consisting key stakeholders and the environment.