Evaluating John Wood PLC's Business Environment with PESTEL Analysis

This report provides an in-depth analysis of John Wood PLC, a British multinational engineering and consulting business, focusing on its governance, structure, and external environment. The report begins with an introduction to the concept of the business environment and its impact on organizational decision-making. It examines John Wood PLC's structure, including its leadership and values. The core of the report involves a detailed PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors influencing the company's operations. The analysis explores how these factors affect the company's strategic planning, market position, and opportunities for growth, particularly within the energy and built environment industries. The report highlights the importance of understanding these external factors for long-term sustainability and success, concluding with a summary of the key findings and implications for John Wood PLC. The report also emphasizes the significance of adapting to dynamic changes and leveraging opportunities within the industry.

Business Environment
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Executive Summary
Business environment is inclusive of different type of elements in internal and external
environment that impact and influence of organisational decision making process. It is essential
for complete to evaluate these factors with the help of significant tools and techniques. Present
report includes discussion on John wood PLC for which PESTEL analysis is being conducted.
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Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
Examine how your chosen company is governed and structured...........................................3
Task 2...............................................................................................................................................4
Evaluate the importance of carrying out PESTEL analysis for an organisation....................4
Task 3...............................................................................................................................................6
Use the PESTEL framework to analyse the external environment of your chosen company6
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment is defined as a collection of internal as well as external elements and
forces that are having ability to impact upon organisational operations and decision. Some of
these forces include competitors, government, and consumer, and political, social, supplier,
technological and legal elements (Thakur, 2021). In order to perform operations in effective
manner organisation is required to evaluate all the factors prevailing in internal and external
business environment in order to determine their influence upon company. This will allow
business organisation to perform their roles and responsibilities in effective manner while
undertaking use of growth and development opportunities. Business environment factors also
have influence upon performance development and outcome of an organisation. Thus in order to
ensure long-term survival and growth company is required to determine business in my mental
factors with the help of effective techniques and tools.
Present report has been conducted on John Wood PLC which is operating their business
services as British multinational engineering and consulting business. In this report discussion
has been conducted on importance of pestle analysis along with the application of same within
organisation.
MAIN BODY
Task 1
Examine how your chosen company is governed and structured
John Wood PLC is a British multinational engineering and consulting business organisation
headquartered in Scotland, United Kingdom. It was founded in the year 1982 by Ian Wood who
is Scottish philanthropist and businessman. This organisation is performing their business
operations in energy and built environment industry and their main products are engineering and
consulting. With having more than 45000 employees John Wood PLC is performing their
business operations by offering high quality services and products and offer range of production
support, maintenance management and engineering services to the energy and industrial sectors.
Roy Franklin is chairman of this organisation and Robert Watson is chief executive (The board.
2021). This company is one of the world's leading engineering and consulting companies
operating across energy and the built environment. It has been underlined that this organisation
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common purpose is to unlock solutions to the world most critical challenges. This company is
future ready and have vision in terms of inspiring, partnering with agility and creating new
possibilities. Values of this company include their commitment and courage. It is a sustainable
business which is helping towards developing more liveable, sustainable and resilient. For this,
organisation is significantly committed towards addressing climate change and providing support
to their clients in order to reach their own ambition. David Kemp is CFO of John Wood PLC.
Non-executive directors of John Wood PLC include Thomas Botts, Birgitte Brinch Madsen,
Jacqui Ferguson, Adrian Marsh, Nigel Mills, Brenda Reichelderfer and Susan Steele.
Task 2
Evaluate the importance of carrying out PESTEL analysis for an organisation
Pestle analysis is basically a broad fact-finding activity through which an organisation can
effectively identify the external factors that are having capability to influence organisational
decision making process. With the proper understanding of these facts organisation can further
implement effective strategies. It allows them to conduct a strategic planning process in an
effective manner (ARUNACHALAM and FOUNTIS, 2021). This analysis is important for the
organisation through which they can conduct strategic planning process in a well defined and
effective manner. Furthermore, it has been underlined that pestle analysis allow organisation to
identify various opportunities and further utilised them with the help of strategic planning
procedure. This analysis also aid company to evaluate threats in more structure manner through
which organisation can analyse all the possible factors in cost effective manner. Furthermore, it
has been identified that pestle analysis framework facilitate organisation to have a deeper
understanding of the external environment and develop alertness and further exploit
opportunities in efficient way. This is an effective tool through which marketers can monitor as
well as analyse macro environmental factors while identifying growth and development
opportunities within a market segment. This analysis is having strong impact upon business
decisions. It is essential for any organisation to significantly evaluate the political, legal,
economical, social, technological and environmental standards prevailing that in a particular
location, as this allow them to conduct their business operations in an effective manner. This
analysis not only facilitate business organisation to identify the factors that have direct or indirect
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impact upon business but this analysis also allow company to have in-depth understanding of all
the potential elements that can affect business growth and development. Negligence of any factor
will lead organisation to face serious losses that can also affect development of organisation
within and industry.
In terms at present report it has been identified that John Wood PLC which is performing
their business operations in energy and built environment industry, that have major impact from
the external factors that are prevailing in the environment (Christensen, 2021). It has been
identified that this industry is facing dynamic changes that can affect organisation in number of
ways. In this it is essential for respective company managerial executives to undertake advantage
of this analysis in order to develop alertness against the factors that can affect business growth.
Furthermore it has been underline that John Wood PLC is offering services related to
engineering, project and technical. All these services are subjected to get affected with number of
external factors. Thus, in this pestle analysis will significantly assist company to have deeper
understanding of all the barriers that can affect their operations. This analysis is a cost-effective
method through which company can conduct in-depth research of respective industrial sector.
This analysis is also playing important role for John Wood PLC, as it will allow them to exploit
opportunities that are prevailing in business market. With the help of this company can outreach
their approach and can further convert opportunities for business growth.
According to the above mentioned analysis it has been identified that pestle analysis is
playing important role for John Wood PLC, as this organisation is performing their role in
energy and built development industry (Damayanti, 2021). Thus it has been identified that this
industry is affected by various factors such as ecosystem, accessibility and more. With the help
of this analysis organisation can evaluate factors prevailing in external environment and can
further develop efficient strategies against them, in order to exploit opportunities and assure
long-term growth and sustainability.
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Task 3
Use the PESTEL framework to analyse the external environment of your chosen company
Pestle analysis is playing important role for the entire organisation whether they
established or started, as with the help of this business owner can identify the potential changes
in political, economical, social, technological, environmental and legal aspect within a location.
Mentioned below PESTLE analysis of John Wood PLC is done:
Political:
Political factor is acting as essential element that helps in determining factors that can
impact upon John Wood PLC long term profit generation capability in a market or a certain
country (Marin and Vona, 2021). This company is operating their business operations in energy
and built environment industry which is exposed to number of political environment as well as
political system risk. In this to ensure success across various countries it is essential for company
to analyse elements related to restriction to import and export to certain countries, government
taxes and price control, political stability, intellectual property protection, trade regulation and
tariff associated to energy and built industry, pricing regulation, legislation and industrial safety
regulation and more. Furthermore it has been identified that due to the significant increase in
CO2 emission government of UK and around the countries have set pressure on this industry to
produce more sustainable form of energy. With the help of taking advantage of this opportunity
company can maximize their growth and development.
Economical:
Macro environmental factors such as interest rate, inflation rate, foreign exchange rate,
savings rate and economic cycle significantly determine aggregate investment and demand
within an economy. It has been identified that in the provinces of United Kingdom quality
energy technology is significantly increasing organisation revenue, as in this country consumers
are seeking for less greenhouse emission (Zhang and Hamel, 2021). Along with this it has been
identified that market skill level of workforce and education level in UK economy are significant
factors that will positively impact upon John Wood PLC operations. It has been identified that
due to the outbreak of covid-19 organisation can face number of challenges in terms of market
in-stability. In this with the help of taking advantage of government subsidies and less interest
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rate advantage on this industry John Wood PLC can perform their business operations in this
sector in effective manner.
Social:
Social elements are the manner of doing business operations without affecting society or
community beliefs, values and sentiments. It is essential for organisation to make sure that
organisational culture and environment does not affect attitudes and share belief of population in
which they perform in their business role (Thakur, 2021). It is essential for executives of John
Wood PLC to understand consumers in order to design products accordingly. It has been
identified that in terms of United Kingdom individuals are becoming more concern towards
environment and they are significantly encourage towards renewable energy product. This
enhances higher life expectancy of organisation. It has been identified that social factors such as
education level, environmental consciousness, power structure within society, demographic and
skill level of population have impact upon John Wood PLC operations. With the proper analysis
of this will facilitate company to ensure higher growth.
Technological:
Technology is disrupting in a dynamic manners. In terms with energy and built
environment industry it has been identified that there are number of technological transformation
being seen and essential for established players like John would to cope up with, in order to
implement the technological strategies and assure fast moving towards automation that has been
led by technological firm. Negligence of this factor will lead John Wood PLC to measure lower
competitiveness in industry (Setyono and Sinaga, 2021). Factors like technological impact on
product offering, impact of value chain structure in energy industry, rate of technological
diffusion are some of the factors that can affect John Wood PLC operations. It has been
identified that in the provinces of United Kingdom renewable energy technology has been
significantly increased which reduces the fossil fuels. Along with this UK Government is
providing tax advantage as well as other subsidies to the companies operating in this sector. By
taking advantage of effective research and development company can further promote renewable
energy with the help of technology and can assure more competitiveness.
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Environmental:
Environmental factors include elements related to climate change, weather laws
regulating environment pollution air and water regulation waste management in respective
industry, attitude towards ecological or green product, recycling etc. are some of the elements
that have impact upon company operations in direct and indirect manner. In the provinces of
United Kingdom there are number of liability clause in case of environmental disaster. It is
essential for John Wood PLC to implement all the environmental laws and liability laws, as to
perform their business operations efficiently (Marin and Vona, 2021). It has been seen that in
United Kingdom government provide healthy tax breaks to the companies those who are
performing their operations while having positive attitude towards environmental safety. Thus
with the help of taking advantage of high quality technology company can have better alternative
energy performance and can manage waste in more effective manner. John Wood PLC is
required to explore potential solution for energy saving in order to perform their operations
according to government standards.
Legal:
This is an essential element of pestle analysis framework. There are number of legal
framework as well as institutions in countries that protect intellectual property right and other
legislation of an organisation. It is essential for an organisation to carefully analyse legal aspects
before entering in market segment (Panpatte and Ganeshkumar, 2021). There are some of the
legal factors that can impact upon John Wood PLC that include antitrust law in energy industry,
discrimination law, law of consumer protection, employment law, data protection, health and
safety law and more. In United Kingdom there are a number of policies that required to be
adhered by John Wood PLC, negligence of this lead company to face heavy penalties. It is
essential for John Wood PLC to make sure that all the legislative measures are being in force in
company in order to conduct their business operations in more environmentally sound manner.
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CONCLUSION
According to the above mentioned report it has been concluded that pestle analysis is an
important tool through which organisation can evaluate direct and indirect impact of external
factors and can further maximise opportunities, while reducing threats that can affect
organisation. This analysis allow organisation to facilitate positive impact upon their decision
making process through which company can determine various elements that are prevailing in a
significant industry and can influence upon organisation strategies and decisions. This reports
states that pestle analysis is playing important role for organisation through which company can
not only identify factors that can negatively affect business operations but also allow companies
to formulate strategies with efficient decision making process. It effectively enhances
organisation growth and profitability in respective industrial segment.
REFERENCES
Books and Journals
ARUNACHALAM, V. and FOUNTIS, A., 2021. A research study on the Sustainable
Competitiveness and the Macro Economic Factors of the IT Sector in India which
contributes to sustainability and the rise of social development. Journal of Contemporary
Issues in Business and Government, 27(3), pp.1548-1556.
Christensen, T.B., 2021. Towards a circular economy in cities: Exploring local modes of
governance in the transition towards a circular economy in construction and textile
recycling. Journal of Cleaner Production, 305, p.127058.
Damayanti, D., 2021. Human Resources Competency in the Era of Industrial Revolution
4.0. Economics and Business Solutions Journal, 5(1), pp.13-27.
Gregory, A., 2021. Complete Analysis of Netflix, Inc.
Kumar, R., Lamba, K. and Raman, A., 2021. Role of zero emission vehicles in sustainable
transformation of the Indian automobile industry. Research in Transportation Economics,
p.101064.
Marin, G. and Vona, F., 2021. The impact of energy prices on socioeconomic and environmental
performance: Evidence from French manufacturing establishments, 1997–
2015. European Economic Review, 135, p.103739.
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Panpatte, S. and Ganeshkumar, C., 2021. Artificial Intelligence in Agriculture Sector: Case
Study of Blue River Technology. In Proceedings of the Second International Conference
on Information Management and Machine Intelligence (pp. 147-153). Springer,
Singapore.
Setyono, A.E. and Sinaga, N., 2021. ZERO WASTE INDONESIA: PELUANG, TANTANGAN
DAN OPTIMALISASI WASTE TO ENERGY. Eksergi, 17(2), pp.116-124.
Thakur, V., 2021. Framework for PESTEL dimensions of sustainable healthcare waste
management: Learnings from COVID-19 outbreak. Journal of cleaner production, 287,
p.125562.
Zhang, X. and Hamel, P., 2021. Thinking of anti-incineration protests in strategic action fields:
three case studies in mainland China. Local Environment, 26(6), pp.673-691.
Zhao, C., Deng, M. and Cao, X., 2021. Does haze pollution damage urban innovation? Empirical
evidence from China. Environmental Science and Pollution Research, 28(13), pp.16334-
16349.
Online
The board. 2021. [Online]. Available throughhttps://www.woodplc.com/company/the-board
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