Business Environment Analysis of Plus 500 PLC: A Comprehensive Report

This report provides a comprehensive analysis of Plus 500 PLC's business environment, organizational structure, and corporate governance. It begins with an introduction to the company and its operations, including its founding and listing on the London Stock Exchange. The main body delves into the company's governance structure, outlining the roles of the board of directors and their responsibilities. The report then explores the importance of PESTLE analysis for companies, highlighting its cost-effectiveness, and its role in better understanding the market, and alertness in development. The report then applies PESTLE analysis to Plus 500 Ltd, examining the political, economic, social, technological, legal, and environmental factors impacting the company. The analysis considers factors such as political stability, taxation, economic growth, inflation, social trends, and technological advancements. The report concludes by emphasizing the importance of strategic analysis for Plus 500 PLC's continued success and profitability. The report is designed for students seeking to understand business environments and strategic analysis.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................4
TASK 1.............................................................................................................................................4
TASK 2.............................................................................................................................................6
TASK 3.............................................................................................................................................7
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Business environment means the internal and external factors and forces which affect a
company. These are very important factors to be understood by the company as this will help them
in making profitability in the longer term. By analysing these business environmental factors the
company can make decisions which is really important if the company wants the continuous growth
and profitability. This will help in devising new strategies for the company. Plus 500 plc is a
financial firm providing online trading services in more than 2000 securities and multiple asset
classes. The firm is authorized and regulated by the financial conduct authority. The company was
founded by six alumni of technion in the year 2008. the company is listed on the London stock
exchange which is a huge thing for the company because in today's world this is a very profitable
business since it gives the customers an asset of their own. (Eling and Schaper, 2017)

MAIN BODY
TASK 1
PLUS 500 PLC GOVERNANCE AND STRUCTURES
The company was founded in the year 2008 by Alon Gonen, Gal Haber, Elad Ben Izhak,
Omer Elazari, Shlomi Weiamann and Shimon Sofer with its headquarter in london, United
Kingdom. The company operating income in the year 2018 was US$ 505.3 million. The company
was started with $400,000. Initially the company was based on the windows operating systems, later
in 2010 they launched a web based version of its online trading platform. They launched there first
app in ios and in 2012 in android too. In the year 2015, Plus 500 suffered a massive loss when the
stock plunged almost by 60%. In June 2015, Plus 500 agreed to a US$ 703 million bid
from Playtech, an online gambling company that was expanding into trading.
ORGANISATIONAL STRUCTURE
The company has corporate governance in the organizational structure of the company. There is a
set of rules and law of the businesses which are operated and controlled or regulated, these
regulations are being recommended by the UK corporate governance code. The company has to
report to the shareholder in accordance with the listing rules. The board of directors of the company
play an important role because they decide the framework of the company so that the company can
work with the corporate governance which will make the company work with objectives they need
to fulfil of the company. There is a list of rules which must be followed by Plus 500 plc for
incorporating corporate governance, these are listed below:
 The company discloses any potential conflict of interest in the organisation in compliance
with the company's law. These conflicts are being reviewed by the board members and
procedures are taken to resolve this issues and then resolve these conflicts.
 The company also maintains there relationship with there shareholders including both
institutional and private investors. For this Plus 500 plc generally hold an annual general
meeting to be held for the shareholder at least once a year. Also, all the detailed strategies are
mentioned on the company's websites.
 The company is committed to operate responsibly in all the business aspects relating to

safety and health at the workplaces. Plus 500 plc believes that CSR is both its responsibility
and an essential part of good management.
 The board members of the company have the skills to analysis and review the practices of
the management team of the company.(Virglerová, Dobeš and Vojtovič, 2016)
 There must be transparency between all the stakeholders so that they make the decisions of
the company properly.
 The board members have a code of conduct and the new individuals which are added in
these executives and board members must meet those standards so that they all are on the
same level which will make the company work better.
Plus 500 plc is trying to create a work environment in which employees are treated fairly and there
responsibilities are valued. Everyone should be treated equally and should be provided with equal
opportunities so that the employees with the organisation will remain motivated. There are a lot of
difference between the thinking of the employees in an organization and there thinking will differ,
but they will have to make sure that the company work as one otherwise the company will not be
able to do good in the present and not even in the future. All the board members of the company will
have a different view on different situation in the company and that is not good for the board
members because they will have to make a common decision and then will demotivate the other
members if their decision is not supported. To have a single decision-making in the company the
board members will have to be on the same level and understanding of the organization so everyone
should be aware of the company's growing and falling in the market. Plus 500 is also trying to
increase there sustainability efforts so that and in doing so the company is targeting a plan for
conserving the resources. Its efforts include the energy-saving technologies, resource conservation,
recycling etc., the company should keep devising new strategies in there organisation so that they
can compete with there competitors and maintain there market share in the company.
The board of directors of Plus 500 plc are as follows:
1. Penelop Judd- independent ned and chairman
2. Charles Fairbairn- senior independent ned and external director
3. Daniel King- independent ned and external director
4. Steven Baldwin- independent ned
5. Asaf Elimelech- chief executive officer
6. Gal Haber- managing director
7. Elad Even-Chen- group chief financial officer

TASK 2
IMPORTANCE OF PESTLE IN A COMPANY
The PESTLE analysis is an important aspect for all the company because that will make the
company make a lot of profit overall in the market. (Calabrese, 2018) The understanding of all these
factors is very important in the company and the companies who take this out are going to be very
successful. The advantages of PESTLE analysis is given below:
Cost effective
Plus 500 plc will come to know by the analysis of this factor that how much they are supposed to
invest in which department so that they can grow faster and the company can do well. This will lead
to better portfolio of the company being formed. Money flow is free in Plus 500 plc but have a cost
effective work done in the company is always better because they will not have to invest in
departments which are unnecessary in the market. The team will be able to get out better
management of Plus 500 plc and efficiency in the company.
Better understanding
The management, board members and the employees of Plus 500 plc will have better
understanding of the company if the PESTLE analysis is done properly. There are a lot of factors
which are supposed to be kept in mind of the people when it comes to running a business and that is
a very important factor for the business. For example there are laws which go unnoticed when a
innovation is being done in the company and that might not be good for the consumers and that will
affect the business seriously, so analyzing PESTLE factors will help Plus 500 plc understand these
things properly. (Kozubíková, Homolka and Kristalas, 2017)
Alertness in the development
Plus 500 plc will know better if there are competitions which are coming in the field of the
business and that will make the company work better so that they will not have troubles later. The
marketing plan is a major point for Plus 500 plc company because they need to sell there properties
to the customers who need them and a market plan is required for that and a market plan can only be
possible when the company comes up with an analysis of the PESTLE factor.
Accomplishing opportunities
There are a lot of risks and paths which are yet to be explored by the company which can
turn out to be a great opportunity for the company and the risk has not been taken because the
company has not taken out the analysis before which made the company take risks before. There are
lot of competitors coming up and the company will have to take risks so that the company can grow
more and not let the competitor come over them. Marketing strategies which are coming out and the
company must try them all so that the company can make profit and if they do not get the changes
which is expected from the customers then the company will not be able to sells there properties to

the customers. The company will have to get flexible to get in the changes and also risk the
opportunities which are coming in the way of the company.(Belás, 2015)
TASK 3
PESTLE ANALYSIS
PESTLE Analysis of Plus500 Ltd is a strategic tool to analyse the whole organisation's macro
environment. PESTLE indicates – Political, Economic, Social, Technological, Legal and
Environmental factors that impact the Plus500 Ltd's macro environment.
PESTLE Analysis provides great detail about operating challenges. For example an
Industry/Company may be highly profitable with a powerful growth trajectory but it won't be any
perfect for Plus500 Ltd if it is situated unstable political environment.
1. Political Factors : In a certain country or market, Political factors plays a significant role in
determining the factors that can impact Plus500 Ltd's long-term profitability. There is a
stability in the political level in the country from the past few years therefore the company is
having a stable environment too. There is high taxation in the country which is not letting the
company get it's maximize profit. (Erasmus, 2016) The changes in the political factors are
because of the change in the political leaders and that can be positive and negative so the
company must be prepared for the worst and the best and Barratt has made his company very
flexible with this concern therefore it is doing very good in the marketBefore entering or
investing in a certain market Plus500 Ltd can closely analyse the following factors -
Financial sector's Industrial Safety Regulations, Tax rates and incentives as it can le,
Protection of Intellectual Property, Contract enforcement legal framework, Favoured trading
partners, Financial services Anti-Trust laws, Employee benefits,
2. Economic Factors : Basically Economic Factors includes Inflation rate, Deflation rate,
Saving rate, Interest rate, Foreign exchange, Foreign direct investments and Economic cycle
period determine the aggregate Demand and Investment in an economy. (Kljucnikov, 2016)
Economic factors that Plus500 Ltd should consider while conduting PESTLE analysis are
Inflation rate, Interest rate, Economic growth rate, Discretionary income Unemployment
rate, Education system in the economy, Productivity and labor costs in the economy,
Business cycle stage (Prosperity, Recession, Recovery), Innovation & Skill level of
workforce in Financial Service Industry, Financial service industry's infrastructure quality,
Exchange rates & stability of host country currency, Comparative advantages of financial
sectors in the particular country. The company is also having international trades with other
countries and the stability of the currency also plays a very important role. If there is an
unstable currency in the country then the international investors will not be investing more.
There is an efficiency which can be seen in the financial market operation but that will also
impact the Plus 500 plc because it is on the company how they rise the fair prices of the
properties they are selling.
3. Social Factors : Social factors also impact the culture of an organisation in an environment.
Population beliefs, mindset, choices and attitude play a great role how Plus500 Ltd will
know and understand the customers of a given market and how they make the marketing
message for customers of financial service industry. Social factors that management of
Plus500 Ltd should analyse for PESTLE analysis are Culture (Social conventions, Fashion,

Lifestyle, Gender roles etc...), Spirit of startups and entrepreneurship, wider nature of the
society, Environmental consciousness, Health objectives Leisure interests, Innovative ideas
of the population, Specific skill standard of the population, Education aspects. (Deasy, 2016)
4. Technological Factors : Over the last 5 to 6 years the industry has been transforming really
very fast. A firm should not only do technological basis analysis of the entire industry but
also the speed at which technological disrupts that industry/company. The company will
have to promote themselves and make the most from that otherwise they will not be able to
sell there properties to the customers. Promotion wise technology has played a great role
there are a lot of people who have invested in the technological factor so that they can
promote there properties online so that they can have more customers Technological analysis
involves understanding the following impacts, technological diffusion rate, product offering
technology impact, there are impact on cost structure in financial service industry, Plus 500
has made some investment for the technological development but there is still more to make
to gain competitive advantages.
5. Legal Factors : there are a lot of legal work that must be done if the company wants to
operate in the international market these must be followed or there will be legal implication
upon Plus 500 plc and this might increase there cost so they must follow all the rules and
regulations imposed by the government of the country. The legal framework and institutions
are not enough for intellectual property rights protection of an
organisation/company/business. An industry should carefully evaluate before entering such
markets. During entering a new market Plus500 Ltd management should consider some of
the legal factors are Protection of data, Law of health and safety, Law of employment,
Consumer protection
6. Environmental Factors : these factors are being taken into concern in the past decade when
the environment started to degrade very much. These are the factors which impact the
company growth as well as there brand image too. The global warming which is taking
place in the world is not supporting the company at all because people not preferring to go
out to see the properties, and they are ready to invest in these assets in the present. Other
environmental factors include the weather conditions, pollution, sustainable development..
Company must take steps to reduce impacts on the environment from there company
because that is also leading to a lot of problems in the environment. (Prajogo, 2016)

CONCLUSION
From this report we have concluded that the company is performing well in there field and there
operations are also expanding at a fast pace. The company is doing well in both the international and
domestic market, and if the company invests in the technology department they can makes its
promotion strategies even better than there current strategy. The report consist of the PESTLE
(political, economic, social, technological, legal, environmental) analysis and there is also an
explanation about why the PESTLE analysis is important.

REFERENCES
Books and journals
Belás, J., and et.al., 2015. The business environment of small and medium-sized enterprises in
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Springer, Cham.
Deasy, S., and et.al., 2016. Controlling use of a business environment on a mobile device. U.S.
Patent 9,247,042.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects productivity
and efficiency of European life insurance companies. European Journal of Operational
Research. 258(3). pp.1082-1094.
Erasmus, B.,and et.al., 2016. Introduction to business management. Oxford University Press
Southern Africa.
Kljucnikov, A.,and et.al., 2016. The entreprenurial perception of SME business environment quality
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productivity in Africa. Journal of Development Economics. 114. pp.159-171.
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Virglerová, Z., Dobeš, K. and Vojtovič, S., 2016. The perception of the state’s influence on its
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