PESTEL Analysis and Strategic Insights for National Express PLC

This report provides a comprehensive PESTEL analysis of National Express PLC, examining the company's governance, structure, and external environment. It begins with an executive summary, followed by an introduction that highlights the importance of PESTEL analysis as a tool for understanding the external factors impacting a business. The main body of the report delves into the governance and structure of National Express PLC, including an overview of the company and profiles of its executive and non-executive directors. The report then evaluates the significance of conducting PESTEL analysis for organizations, outlining its benefits in identifying changes, strategic planning, cost-effectiveness, deeper understanding, alertness development, and exploiting opportunities. The PESTEL framework is then applied to analyze the external environment of National Express PLC, considering political, economic, social, technological, legal, and environmental factors. The report concludes by summarizing the key findings and their implications for the company's strategic planning and competitive advantage within the transport industry. Data for the report has been sourced from the National Express PLC website and other reliable sources.

A common tool of
analysis of the business
environment is the
PESTEL analysis.

Executive summary
This project is mainly aimed at conducting external as well as internal analysis that is
vital of the companies operating in their business environment. This includes diverse aspects that
includes employees, customers, expectations, supply and demand, management, suppliers as well
as Owners. For doing this, Pestle analysis is taken as it is one of the most useful tool. National
Express PLC, has been provided to us in order to execute to get a detail understanding of the
pestle analysis.The objective of the study in to have a detailed analysis of the pestle analysis in
order to control the harmful effects of the external enviroment on the business performance.
Along with this, it will aid the management in evaluating all the available opportunity in order to
utilize the best opportunity in order to become a leader in the transport industry. Pestle analysis
is an acronym that is elaborated as political, economic, social,technological, legal and
environment that has a large impact on company's internal environment. This analysis, mainly
presents the brief understanding of mainly the following aspects that includes company's
structure and it's governance, importance of Pestle analysis and application of the tools. The data
is derived from National express PLC's website as well as other trustworthy sources. This
information consist of detail information of company's management mainly consisting of
executive as well as non executive directors. The main focus is done on their value contribution
with respect to meeting their strategies in order to realise the defined objectives of the
company.Along, with this importace of the different pestle factors is elaborated in order to
implement this valuable tool and even provided detailed understanding of different aspects the
company should consider in order to make in order to generate favourable outcome. This can be
done by them, by identifying the threat that may arise in the future in order to undetake detailled
planning by incorporating the changes in order to protect as well as maintain the brand position
by retaining their valuable customers. This will be fruitful for the management of the National
express PLC, to be ahead of their immediate competitors that includes FirstGroup and ariva. This
will eventually be beneficial for the company to become the leader in transportation industry.
Thereby, sustaining the financial as well as qualitative performance for being successful in long
term.

Table of Contents
Executive summary..........................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................4
Examine how National Express PLC company is governed and structured...............................4
Evaluate the importance of carrying out PESTEL analysis for an organisation.........................6
Use the PESTEL framework to analyse the external environment of National Express............8
Conclusion.....................................................................................................................................10
REFERENCES................................................................................................................................1
Introduction
Pest analysis, is one of the important tool for the management of all the companies
throughout the world (Benjamin and Wesseler, 2016). This aids the companies to have a through

understanding of their external environment as it has a large influence on it's operations in order
to sustain their performance in long term. This is further, beneficial for the company to gain
competitive advantage over their industry.
National express, is a group of companies that is involved in delivering transport services
in number of countries that mainly includes U.K, Continental Europe, North Africa, North
America and middle east. For doing this project, this company is considered in order to study
the importance of pestle analysis (Farnsworth and et. al., 2017). Along with this, the report also
provides how the company is structured and governed and application of pestle analysis in
company's perspective.
Main Body
Examine how National Express PLC company is governed and structured
Company Overview
National express PLC, is one of renowned transportation company in U.K that aids in
satisfying the needs of the local people in order to fulfil their social as well as economic
requirements. There are involved in focusing on different aspects of their services in order to
ensure maximum utilization of their transport system by attracting large of passengers towards
their services. In order to achieve their aim, the company has employed more than 40000 staffs
that provides valuable contribution by emphasizing on number of parameters that includes
improving quality, value for money as well as ensuring safety standards for all their services.
The company's was formed in the year 1990 and has witness a huge growth as just from a small
coach operation, it has evolved and become a multinational company by utilizing the new as well
as the most appropriate opportunities. National express PLC, company has altered the restrictions
as provided in the Transport Act, 1980 and even aided other company to operate their businesses
in U.K. They were listed in London stock exchange in the year, 1992 and their objective was to
their core coaches businesses and witness rapid growth during the year 1993-19999. Then, the
brand has a strong national presence and was highly capable to expand on the international level
and as a result had acquired Prism Rail, WAGN and c2c train lines. The chairman of the
company is quite positive that the transport industry will recover soon and they are constantly
adopting various measures in order to restore the confidence of all their valuable customers.

It is essential to know the detail knowledge of the company's management that mainly
includes a list of executive and non- executive directors. This can be explained below in detail:
Executive Director
Ignacio Garat: He has a experience of approximately 20 years in the logistic industry that
includes 12 years of experience at a Chief executive level. He has working in various regions and
has become a leader in improvement in performance in both financial as well as operational
level. In company's context, he has done strategic contributions in delivery exceptional
performance in both the aspects stated above. Along with this, he has a massive track record on
emphasizing on safety as well as utilizing data analytics that has been beneficial for the company
to innovate and achieve excellancy.
Non-Executive Director
Sir John Armitt CBE: He has a substantial experience in the transport, engineering as well as
construction sector. Along with this, it has a crucial experience at board level both as a chairman
and chief executive. He has supported the company's strategy by his strong leadership skills by
making sure that there is proper execution of all their defined strategies and also taken care of
develop strong relationship with their stake holders.
Jorge Cosmen: He has large years of experience in the international business. He is presently as
the president of the company's ALSA division. He has contributed in keeping up with the
strategy of the firm by his extensive knowledge and supported executive management for
exceptional results. Along with this, he has even delivered exceptional insights in context of
international transport matters that has aided the management to mitigate the risk and grab the
most appropriate opportunity in the transport industry.
Matthew Crummack: He is one of the senior independent director of the company across the
multiple functions in relation to consumer product as well as digital service industry. Previously,
he is CEO of Goco Group plc and has supported National express PLC in meeting their
strategies. He has done this by enormous information in executive management as operational
experience and provided strong advice by addressing number of challenges at a much faster
pace.
Mike McKeon: He has a diverse range of experience at the international level in financial as well
as business management across wide range of sectors. He is presently a chartered accountant and
a strong support to the company by providing the strong insights to financial management as

well as internal control. Along with this, he also sees to it that he sustain the performance by
intense control measures. In order to do this, he has designed a strong operational excellence
program that manage the cost as well as enhances the experience of all the customers.
Karen Geary: She is recognized as one of most experienced human resource professional and
have served in diverse senior as well as HR roles in the sector of transport and technology.
Presently, she is chartered member of institute of personnel and development and has supported
their talented taskforce, as their people are the one who provides valuable contribution in
achieving the defined objectives of the company.
Dr Ashley Steel: He has remarkable experience in the area of consultancy at the international
level as he was engaged with KPMG LLP and has even acted as an adivisor with respect FTSE
listed and fortune 500. He has been engaged in enhancing development with respect to different
sectors that mainly include transport, infrastructure as well as technology. Some of the
supportive role he has played in implementing the strategies includes he has enormous
experience on development as well as in powerful implementation of the strategy and has acted
as a valuable support for growth and being innovative by implementing the recent technology.
Along with this, has is also involved in powerful focus with respect to employee's diverse
aspects that mainly includes retention, reward and incentives in context of execution as well as
implementation of the unique strategy of the company.
Evaluate the importance of carrying out PESTEL analysis for an organisation.
Pestle analysis is a very vital tool for the growth of the organization. It is beneficial for
the diverse business in planning that can include expansion of a product line or opening a new
company in a new areas (Dobele, 2015). This tools is utilized by all the organization in the
business environment for being able to maintain it's position for long term profitablity. There are
lot of factors that elaborate it's important in the company. This can be detailed below:
 Identifying significant changes: It has help any type of business Organization whether it
is a start-up or any well establishing company. These mainly helps the management of
the National express PLC to be well informed about the changes in the external
environment that includes various aspects that mainly includes political, economic,
social, technological, legal and environmental.
 Strategic Planning: By being well informed about the changes in the external
environment the company has prepare strong strategies in order to be ahead in

competition within the industry (Muhammad Siddique, 2015). They do this, by analysing
different aspect explained above along with conducting detail analysis of mainly their
immediate competitors in the industry.
 Cost effectiveness: This tool is very useful for the organization is saving drastic cost by
minimized or eliminating unproductive activites of the business that have resulted in
decreasing their profitablity(PANFIL, 2017.). Along with this, there are certain number
of additional programs that provides the systematic approach to organized their valuable
and limited resources. Along with this, it is further useful to provide feedback to all the
different department at a very initial level that is very cost effective.
 Deeper Understanding: Pestle analysis is one of the most critical tool that simplifies the
deeper level of understanding of all the factors that have a large influence on their
business environment (Bismark and et. al. , 2018). In context of developing a new
product it is helpful for building strong strategies for developing new product and provide
in-depth analysis of factors that mainly includes consumer laws and latest technology
being used. These factors are important as have a higher impact for launching their new
creations.
 Alertness Development: Pestle analysis, is quite useful for the company to be well
prepared of all the possible threats that may arise in future (Perera, 2017). As we can take
the example of infrastructure for getting it's detailed understanding. Infrastructure can be
a critical threat for ground transportation as well as increase traffic on roadways as well
as railways. Along with this, even a slight delay in traffic may be quite costly for the
company. It may be harmful for the company in decrease market share in the company.
 Exploit Opportunities: By utilizing pest analysis company can be advantageous in
exploiting number of opportunities that arises in the market. The recent Covid-crisis can
be one of most useful opportunity for the company in order re-build themselves and
enhance their brand visibility.
 Controllable: By having a detailed analysis of their external environment, the company
can improve their internal control. This can be done by them by defining controlling
measures of each of their department that mainly includes marketing, finance, human
resource and operations (Rastogi and Trivedi, 2016.). For doing this, the leader of the
company should put their different talent as per their skills and capablities inorder to

enhance their sales and profitablity compared to their previous year's performance along
with that of their competitors. Along with this, he should also take the feedback of each
of their task force at every level in order to improve the efficiency of the Organization as
a whole. In order to do this, it is important for the management to be keep updates of all
the different external factors that includes political, economical, social, technological,
legal as well as environment. This will enable them to incorporate the changes and
sustain their performance for a long term.
Use the PESTEL framework to analyse the external environment of National Express.
Pestle analysis is a broad framework that has a higher influence on the performance of
the business as a whole (Welter and et. al., 2015). This is beneficial for the company to predict
the different external factors that can affect their performance so that they can plan in advance in
order to minimize the consequences. Further, the management can evaluate a number of
opportunities in order to attain sustained competative advantage in the transport industry. It can
be elaborated and detailed below for it's better understanding:
 Political: These factors mainly consist of different government policy and their
intervention that affects the bussiness of national express. This can varied that can
include Tax Policy, Trade restrictions, Tariff and other reasons (Bell and Rochford,
2016). Talking primarily in company's context that can include political stablity and the
consequence of travel and tourism sector in the economy of U.K., level of corruptions,
legal structure contract enforcement, Taxations, Pricing rules in context of consumer
services.It is must for the company to conduct detail analysis before taking any major
investment decision.
 Economical: These factors includes of the factor that effect the economy that can include
inflation rate, interest rate, unemployment rate as well as disposable income of the
economy. Some of the economic factor that is vital for the company to consider can
include type of economic system in all the countries they operate, exchange rate and
stablity of host country, level of skills of workforce of travel as well as leisure industry
and foreign exchange rate.
 Social: The social aspects represent different aspects of the social environment and that
be of varied nature that states demographics, growth rate, income distribution, career
attitute and concentration on safety parameters that are very essential for marketing

department for target the customer's (Madsen, 2016). Some of the social parameters,
National Express Group has to focus on different aspects of the population that includes
attitude mainly in context of their health and environment awareness, educational level,
their determination with respect their entreprenaur skills as well as nature of social and
their cultural environment.
 Technological: These factor mainly effect the operation in the technological industry that
can affect the market positivity or negatively. This can further have a huge impact for the
company to make critical decisions. These decision is highly depandant on the
transportion industry that can include decision in context of entering or introducing new
product or Outsouring (Grafova and et. al., 2017). Some of the main technological factor
that company has to consider that include recent technological development incorporated
by their immediate competitors, changes in technology on their product offering,
influence on cost structure in travel and leisure industry and most importantly the
structure of value change in the consumer service sector.
 Legal: These factors are quite similar to political factors. But have specific focus on the
law related to transport industry or may even need to incorporate the different laws in
respect of economy(Berzosa and et. al. , 2017). This law can include labour laws,
discrimination laws, copywrite, patent laws and safety laws. Some of the laws that
National Express Group PLC are required to follow mainly includes anti-trust law in
Travel industry and their economy, data protection and employment laws.
 Environmental: These factor has been given impotance in recent years. There are critical
due to number of reasons that mainy consist of shortage of raw material, target with
respect of different pollution including air, water and land and carbon footprints
(Shatskaya, Samarina and Nekhorosheva, 2016). Some of the important environmental
factor that is must for the company to consider as well as implement can include changes
in context of climate, re-cycling, species becoming extinct, attitude towards support of
renewable energy, different laws related to environment pollutions and waste
management mainly with respect to service sector.

Conclusion
This can be concluded from the above mentioned report, that National express PLC
group , it one of the eading company in transportation sector in U.K and company has shown
enhanced effeciency and productivity by making effective utilization of their valuable taskforce.
Along, with this, it has also detailed below the significant contribution made all the executive as
well as non-executive directors. It has even been explained the different factors that illustrated
the important of Pestle analysis. Adding to this, different aspects of external environment has
been discussed by primarily utilizing the pestle framework that highlights some of the different
factors that the company needs to consider in order to incorporate it in their business operations.
Thereby, beneficial for the diverse team of the management to sustain their performance for
attaining success in long term.

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