Business Environment Report: Man Group Plc's Analysis and Strategies

This report provides a comprehensive analysis of the business environment surrounding Man Group Plc, a UK-based public company operating in sugar brokerage and investment markets. It begins with an overview of the company's history, mission, and organizational structure, highlighting its hierarchy and corporate governance. The report then emphasizes the importance of PESTEL analysis for identifying internal and external factors impacting the business, aiding in strategic planning and competitive advantage. A detailed PESTEL analysis is conducted, examining political, economic, social, technological, environmental, and legal factors influencing Man Group Plc. The report concludes by discussing the relationships between directors, shareholders, customers, and employees, emphasizing how these factors influence the company's performance and strategic direction, ultimately aiming to enhance market share and profitability.

Business Environment

Executive summary
The report explains about Man Plc history, its operations and products and services in
which company deals to expand its market share and profitability. Man plc is able to expand
its business across nation by identifying various internal and external factors of environment.
It dicusses about various factors and thier impact on functioning of company. It also discribed
importance of pestle -analysis for Man Plc in gaining competitive advantages in the market.
This report has also analysis various relationship between directors, shareholders , customers
and employees of the company. Man Group Plc has hierarchy organisational structure and
there are over five levels on hierarchy so decision making process of company is slow.
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. Thus
organisational structure and pestle-analysis helps firm in gaining competitive posittion in the
industry.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
Overview of company and its history.................................................................................4
TASK 2......................................................................................................................................7
Importance of PESTEL analysis for a Business................................................................7
TASK 3......................................................................................................................................9
PESTEL analysis for MAN Group Plc...............................................................................9
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

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
PESTEL analysis for Man Group Plc that helps in gaining competitive advantages in the
market. At last, the PESTEL 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 under suger
brokerage orientation and currently 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.
Organisational structure
Hierarchy organisational structure means that there are large
number of manager and subordinates in an 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. 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.
Corporate governance
Corporate governance means a set of rules, policies and pratice that helps in effective
operation of business by satisfying needs of stakeholder and shareholders or interest people in
the functioning of organisation.
The MAN Group board of Directors has eight members of which John Cryan is the
Chairman as nominated in this role in January 2020. He served as non-executive Director
since January 2015. Stephen Luke Ellis was chief executive officer and executive director of
Man Plc and having age of 57. Chairman of Man plc is John Cryan since 2020, Marks daniel
jones is also executive office and executive director. Thus there are two executive directors
and seven non executive directors working for growth and success of Man plc in the industry.
Richard David Antony berliand is senior independent Non executive director whereas
Katherine mary barker, Zoe Cruz, David Andrew And Dev sanyal are independent non
executive director of company. Lucinda M. Bell and Ceci kurzman is non executive director
since 2020. 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:

Relationship of director with employees, shareholders and customers
Board of director responsible to many people such as shareholders, customers,
suppliers and employees of company. Directors are the person that performed various
function of organisation for achievement of organisational goals.
Shareholders: Such as director has to build strong relationship with shareholders to
maximise thier return on investment so that they are open, honest about investment. Thus
helps in satiying needs of poeple that have invested in functioning of company and encourage
more poeple to invest.
Employees: It also has to maintain relationship with employees in order to enhance thier
performance and productivity. It also responsible for arranging training, bonus and perks that
are given to employees of company so they work effectively for achievement of Man Plc
objectives.
Customers: Director also established relationship with customers so that they can provide
affordable products at reasonable rates to meets demand of customers. Feedback from
customers also help in decision-making of director for gaining competitive position. Thus, it
increase profitability and sales volume of Man Plc by satifying needs of customers.
TASK 2
Importance of PESTEL analysis for a Business
PESTEL 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. PESTEL 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 PESTEL 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 PESTEL 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 PESTEL 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: PESTEL 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
PESTEL analysis for MAN Group Plc
PESTEL 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. PESTEL 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
Environmental
Factor
 Sustainability
 Environment
 Resources
 Weather Condition
Legal Factor  Law
 Rules
 Regulation
 Patent
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 PESTEL 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 PESTEL 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 PESTEL 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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environmental factors on trip satisfaction and the likelihood of visitors
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Rittenburg, T. L., Gladney, G. A. and Stephenson, T., 2016. The effects of euphemism usage
in business contexts. Journal of Business Ethics. 137(2). pp.315-320.
Vij, S. and Bedi, H. S., 2016. Effect of organisational and environmental factors on
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Online
MAN, 2020. [ONLINE] Available through: < https://www.man.com/about-us#_defining-
man-group>