Business and Management: Analysis of Royal Mail's External Influences

This report provides a comprehensive business analysis of Royal Mail, examining its operational environment through PESTEL analysis, which includes political, economic, social, technological, environmental, and legal factors. The report assesses the impact of these external influences on Royal Mail's business strategies and performance. Furthermore, it delves into the company's corporate social responsibility (CSR) and sustainability initiatives, evaluating their relevance and influence on policy and decision-making processes. The analysis explores the effectiveness of Royal Mail's responses to various challenges and opportunities, highlighting areas for improvement. The report also discusses the firm's contributions to the economy, employment, and environmental impact, while addressing factors influencing decision-making, such as competition, reputation, and stakeholder management. The study concludes with insights into how Royal Mail can leverage its CSR practices and sustainability efforts to enhance its market position and achieve its business objectives.

Contemporary Developments in
Business and Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Primary external influences.........................................................................................................1
TASK 2............................................................................................................................................4
Analysing the corporate social responsibility and sustainability in respect to Royal mail
services, relevance and influences in terms of policy and decision making...............................4
Evaluating the effectiveness of organisation response................................................................6
Demonstrating some areas of improvement................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business analysis is the one of the growing field in the current time period. Business
firms usually use multiple techniques to analyse business. In the current report, varied methods
are used for business analysis like PESTEL analysis. This is because under this method varied
factors like political, economical, social, technological, environmental and legal factors are
analysed in proper manner. Impact of all these factors on the business firm which is Royal Mail
is identified. Apart from this, analysis of Royal Mail is done in respect to corporate social
responsibility activity that is performed at workplace. In the current report, varied aspects of the
company corporate social responsibility program are measured and impact that it have on the
company policy and decisions is identified. At end of the report, conclusion section is prepared
and in this way entire research work is carried out.
TASK 1
Primary external influences
ROYAL MAIL UK: Royal mail is located in UK which provides postal services. Royal mail is
only company which delivers any service at one price. It also provides day service to deliver the
item across the UK to more than 29 million addresses. The firm has a vision to deliver best
service to become the most recognised company in the UK and Europe.
PESTEL for Royal mail
PESTEL will help Royal mail to address its operating environment and planning in which
the firm is managing its operational activities. This will help them to improve and develop their
activities according to the market environment and will able to increase the profitability
effectively and efficiently. PESTEL will help business to make an effective strategy and plan to
deliver the possible results and services towards the customers in UK and across the country.
POLITICAL
Political factors such as Fiscal policy, tax policy and trade tariffs can affect the business
effectively (Matzler, Veider and Kathan, 2015). The government can make changes to these
factors according to the market predictions and situations which will directly affect the
operational activities of Royal mail. In respect to this, government can change the interest rates,
tax rates or impose a new tac duty which have a significant impact on business revenue. Thus,
the Royal mail will required necessary changes to its structure and policies effectively. Such
political factors and changes in them will affect the organisation operational activities and
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internal environment as well that the government may levy around the fiscal year efficiently. In
respect to this, Royal mail should accept the changes and make policies according to it which
will help them to run their business effectively in the market towards customers.
ECONOMIC
Economic factors such as interest rates, foreign exchange rates, economic growth patterns
and inflation rate effectively. These factors have a significant impact on economical performance
which has a direct impact on business and for long terms. For an example changes in inflation
rates such as if it becomes high of any economy will affect the business products and services
effectively (McGhee, 2013). Thus, it will affect the Royal mail services in terms of reducing the
purchasing power of customers. This will also affect the demand and supply process for that
economy. FDI foreign direct investment is also a factor of economical environment which is
depended on the particular organisations who comes in this analysis. Thus, the economical
changes also affect the business operational activities and performance.
SOCIAL
Social factors such as demographic, population analysis, cultural trends and environment
of market etc. Social factors also affect the business operational activities effectively. In the case
of Royal mail who is delivering its services across 29 million addresses across the UK. In
addition to this, there are different culture and trends and also the population of that particular
area where the Royal mail is operating the business activities effectively. There are different
types of people and culture that organisation should understand the various cultures and trends to
deliver the best services accordingly and efficiently (Howatt and et.al., 2013). This will help
them to manage their operations and business in the market and also increase the customers as
well as profitability.
TECHNOLOGY
Technological factors such as new innovations in technologies and techniques, innovative
equipments and other technological changes which can affect the business operational activities
effectively. In respect to this, The Royal mail should upgrade its technology to deliver the best
service in the market towards customers effectively. Such technological changes, adopted by the
Royal mail will help them to deliver the services more effectively and efficiently towards their
customers. New innovations in technologies and techniques will also help them to compete
others in the same market.
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ENVIRONMENTAL
Environmental factors are those which can also affect the business and operational
activities of Royal mail services effectively. Environmental factors such as farming, tourism,
agriculture can also affect the business operations efficiently. It can be said that there are some
business environmental analysis which will be included but also limited to geographical
locations, global changes, climate and weather offsets etc. Thus, the environmental factors also
affect the business in terms of these factors. Such things affect the business purpose and
activities at different locations which should be maintained by the firm in order to create
compatibility with various aspects, which can affect entire business effectively.
LEGAL
Legal factors have both external and internal sides which affect the business effectively
and efficiently (Hartman, 2017). There are some certain laws which are made by the government
for the businesses to regulate their organisational activities under the rules and regulations. There
are some laws such as employment act, health and safety act, labour laws and legislations etc.
these are the laws and different acts which should be followed by the firm in order to maintain
the employees and activities under legislations effectively. This will help them to manage the
business and services under the laws.
COMPETITIVE FACTOR
This is also a large factor which can affect the business and services as well as activities
effectively. There are so many competitors in the market which affect the business operational
activities in the market towards customers (Zullo, 2013). Other firms in the market in same
sector make choices for the customers to receive the best services. Thus, Royal mail should
manage their activities and mailing services towards customers for better experiences which will
help them to increase their market share and compete others in the firm effectively and
efficiently.
Thus, it can be said that the Royal mail services should maintain their business activities
with the help of PESTLE effectively. This will help them to manage their operations under the
laws and legislation and also to control activities in different situations and conditions efficiently.
These external environments influence the business policies and strategies as well operations
efficiently. The Royal mail services are able to take advantage of environmental, political
technological, legal and economic by managing their business activities according to these
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conditions effectively. This will not only increase their profitability but also increase the market
share. This will help them to compete others in the market towards customers effectively and
efficiently.
TASK 2
Analysing the corporate social responsibility and sustainability in respect to Royal mail services,
relevance and influences in terms of policy and decision making
The Royal mail services can value their business activities in which the corporate social
responsibility and sustainability is a approach which will help them to assist the development and
sustainability in the business effectively and efficiently (Vilela and et.al., 2014). This will help
them to manage their business easily and will increase the services in the market towards
customers. However, there are some certain affect it has on Royal mail services activities and
operations. This can affect the profitability also and will decrease the revenues efficiently. Very
first, the relevance of corporate social responsibilities and sustainability in respect to the Royal
mail services should be discussed which will help to assess the effect it has on polices and
decision making effectively. It can be also said that it will help to establish services to compete
others in the market towards customers. Decision making process in Royal mail service is also
important that helps to manage the business management and customers in the market
effectively. CSR practices will also help them to manage their relationship with employees and
customers which will help them to manage their goodwill and profitability as well (Dabhade and
Dewan, 2015). The Royal mail service is able to improve the customer royalty which will also
help to assess the target customers to use the benefits provided by the firm in terms of courier
services. CSR practices will also help Royal mail services to take part in social responsibilities
easily and efficiently. The approach is very useful to assist in the market for Royal mail services.
Delivering social and economic benefits: There are so many customers in the market which has
a significant impact on economy for the respected countries. The recent contribution of the Royal
mail services in the economy was £10.8 billion which was the fifth largest contribution of any
firm in the sector effectively. The organisation is providing the employment as well as
opportunities in order to increase the significance and goodwill of business efficiently. This will
help them to assist those areas where the employment rate is low that they can also provide
employment for the particular area in terms of giving services.
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Managing the environmental impact: Organisation is managing and handling the
environmental impact, such as management of natural resources and reducing the carbon
emissions effectively and efficiently. The business of Royal mail services is also creating
standards for UK so which will help country to increase its development policies.
Delivering transformation responsibility: The Royal mail service is focused on delivering the
best and quality services in the market with their efficiencies and effectiveness. The firm is also
achieving the targets and goals which help to increase the customer loyalty and segmentation.
The firm is also contributing for the ongoing transformation in order to balance the corporate
balanced scorecard. The organisation also reducing accident rates as compared to the past few
years effectively. The mail services are very big at a level that there are so many employees and
vehicles using for providing the services.
However, the firm is also facing some influences from activities which affecting the
decision making and policies effectively and efficiently. There are some certain things such as
other competitors in the market, slow deliveries fail to address the issues, poor reputation and fail
to manage the resources effectively. The firm should try to manage the expectations of customers
in the market for better experience (Hussain and Hadi, 2017). High quality services will help the
business to increase the customer loyalty as well. Poor reputation can easily affect the business
decision making and policies. There are some certain affects of government role in the business
such as changing in tax rates, political environmental effect etc. This can reduce the efficiency
and also the significance of the Royal mail services effectively. They should try to manage the
goodwill of customers so that they can make contribution in market share and will increase the
profitability. The management of stakeholder is also important for the firm that it can also affect
the decision making and policies of the firm. Legal factors and technological factors can also
affect the business policies and decision making that the world is getting smarter with latest
innovations and techniques and other firms are taking advantage of this. In order to compete in
the market Royal mail services should adopt the latest techniques to reach the target customers
and also t attracts new customers in the market with the effective services (Forkel and et.al.,
2013). The business should also manage the sustainability in order to manage the business
activities for long times in the market towards customers effectively and efficiently.
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Evaluating the effectiveness of organisation response
The effectiveness of both corporate social responsibilities and sustainability has an
important role to evaluate the policies and decisions of the firm effectively. The CSR practices
will help firm to formulate the process of checking to avoid the misinterpretation between
employees and customers. It is necessary for the firm to manage the mails and information
provided by customers separately and securely. This is a separate information which is provided
by the consumers in terms of m,ails or any other courier service which should be separately
managed by the Royal mail services to manage the privacy of customers effectively and
efficiently. The courier services are now getting better with the times that CSR practices will
help to sustain the business and performance. This will help to manage the employees and
expectation of customers towards the organisation effectively. Corporate social responsibilities
and sustainability will help firm to manage the reputation and image of the firm in the market to
attract the customers for using the courier services. This will also assist to enhance the value and
position of the organisation in the competitive environment effectively. It can be said that the
CSR will help Royal mail services to manage and retain their existing customers and attract new
customers to use the services efficiently (Georgiev and Georgiev, 2015). In respect to this, to
maintain the working environment of Royal mail services, the CSR practices helps to improve
the capabilities and capacities which helps to achieve the desired goals and objectives settled by
the firm in the market effectively.
The corporate social responsibilities and sustainability will help business to achieve the
customer satisfaction and also increase the trust of securing information and data provided by
them. The CSR practices will help Royal mail services to increase the internal functions by
enhancing the customer values and perceptions. On the other side, the firm is able to take
advantages of future and present opportunities which will help to increase the market share and
profitability of the firm efficiently. The approach also helps to maintain the communication with
customers from which they are able to maintain the relationship and effectiveness of business
with the consumers effectively (Fernandes and et.al., 2010). CSR practices also helps to manage
the relationship of transparent with stakeholders which helps to manage the reputation of the firm
in the market towards customers. The firm can also take reviews and feedbacks from customers
after the delivery from which they can manage the relationship as well as able to evaluate the
effect of organisation in the market and towards customers efficiently. The existing customers
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are the effective resource to determine the actual position of the brand in customers minds. In
that case, The Royal mail services is running from 500 years which defines that the firm is large
business cooperation and also consumers believe the activities from which they can achieve the
purpose efficiently.
CSR practices will also help them to contribute in social activities to enhance the
economy and manage the social considerations. This will increase the reputation of the firm and
also the goodwill which has a significant and positive impact on organisation performance and
operational activities. There are so many organisations in the market delivering the mail and
courier services which can affect the business of Royal mail services. Thus, the Royal mail
should adopt the latest technologies and the political factors from which it can differentiate the
services and quality from others which will help them to manage their target customers and also
to attract new ones to use the service effectively and efficiently (Sapci, 2013). Hence, it can be
said that the corporate social responsibilities and sustainability will help Royal mail services to
manage the business and development of activities to sustain in the markets effectively which
will help to increase the profitability and loyalty in customers. This will also help business to
regulate their business operational activities under the rules and regulations which also helps to
control the business activities and operations efficiently.
Demonstrating some areas of improvement
The Royal mail is providing the best and effective services for the customers in the
market which will help them to demonstrate their activities and operations effectively and
efficiently. The Royal mail uses the outcomes of the annual Dow Jones sustainability index
assessment which will help them to identify their key areas for improvement and development. It
will also help them to assess the areas to be improved in management which helps them to find
and solve the CR issues effectively (Cortés, 2015). It can be noticed that the organisation
managing the positive environment and policies to support the customers in the market. Apart
from this, Royal mail should address some certain key areas which needs to be improved for
better experience in the future efficiently. This will help Royal mail to evaluate the areas which
required improvement and development. In respect to this, there are some practices which can be
improved in regards to Royal mail services which are discussed below:
 The Royal mail services is managing the operations and activities towards customers for
500 years which is a very long period that the firm is already made its goodwill. Thus, for
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the effective services in the modern world the firm should manage and handle the
resources which will help them to minimize the ineffective activities and operations from
the firm. The CSR practices will also help them to protect against environmental factors
which reduce the impact it has on organisations operational activities.
 The Royal mail services should adopt the latest technological changes which will help to
deliver fast services towards the customers in the market effectively and efficiently.
Optimum utilisation of resources will also help to establish an effective functioning of
business operational activities.
 The Royal mail should focus on implementing the CSR activities which will help to build
a strong reputation and goodwill of the firm effectively. This will also help to increase the
customer loyalty from which the firm can enhance the business activities and target
customers (Bouras and et.al., 2010).
 The Royal mail service should manage the activities and operations under the business
laws and legislation which will help to assist in the market and also saves from the
negative impact of changes made in environment, politics and other activities by the
government.
 The business is also able to manage the ethical factors which will help to manage and
handle the stakeholders and increase the trust which is profitable for the firm in the future
and present as well. Such things creates a positive impact on business activities and
operations.
 The Royal mail services can also improve the policies and strategies according to the
different conditions which will help to assist in the market with competing others
effectively and efficiently. The plans and policies will help them to manage the business
activities and expectations of customers.
 The mailing and courier services are depended on the speed and delivery time that early
delivery or delivery before the time will increase the customer loyalty and expectations
which helps to manage the target customers and will attract new customers effectively.
 The Royal mail services should implement the corporate social responsibilities and
sustainability in order to manage the internal system of the firm which helps to control
the external activities for the organisation in terms of improving delivery time, managing
business reputation etc.
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 The customer relationship management is so important for the firm in order to manage
the relationship and a happy bond with consumers effectively and efficiently. Effective
communication with potential customers and will help them to solve their queries and
issues which will help business to create a standard in which they can manage the target
and potential customers effectively (Cláudio and et.al., 2010).
 The firm should also manage the transparent relationship with the stakeholders that
hiding the actual profits and losses from the individuals can affect the reputation of the
firm for long terms effectively. Thus, the firm should try to manage the stakeholders in
order to manage the business successfully and faithfully.
CONCLUSION
On basis of above discussion it is concluded that there is significant importance of
PESTEL analysis method for the business firms because by using company operations are
evaluated in proper manner. Under this technique business firm is evaluated on multiple
parameters. Thus, it can be said that it is the effective tool that can be used to measure
performance of the company. It is also concluded that Royal Mail is performing corporate social
responsibility activity on wide level and it have impact on the company policy and decisions.
Thus, it can be said that corporate social responsibility activity have due importance for the
company. It can be said that firm need to closely monitor its business and by doing so can easily
identify that in which areas it need to work hard to improve its performance. The CSR activities
will help firm to assist in the market and also to compete others effectively and efficiently. This
will help them to manage the business activities and operations and also to manage the customer
relationship to drive the performance and organisational activities.
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