Royal Mail Group PLC: Factors Impacting Business Decisions Report

This report provides a comprehensive analysis of Royal Mail Group PLC, a UK-based postal and courier company. It begins with an introduction to the company and its services, followed by a critical evaluation of factors affecting organizational decision-making, including micro and macro environmental factors. The report utilizes a PESTLE analysis to examine the political, economic, social, technological, environmental, and legal impacts on Royal Mail's operations. Furthermore, it assesses the company's response to global forces, focusing on corporate social responsibility and sustainability. The analysis evaluates the relevance of these factors to the organization, their impact on decision-making and overall policies, and the effectiveness of the organizational responses. The report also identifies areas for improvement and concludes with a summary of key findings and recommendations.

Contemporary
Developments in
Business Management
Assessment
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Critical evaluation of different factors that are affecting the organisational process of decision
making....................................................................................................................................3
TASK 2............................................................................................................................................5
Evaluation of the response of organisation to different global forces....................................5
Relevance to organisation & impact on the decision making & overall policies of the
organisation............................................................................................................................5
Influence on the overall process of decision making:............................................................6
Evaluation of the organisational response for evaluating of effectiveness............................7
Areas of improvement according to the response of the organisation...................................9
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13
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Introduction
Development is a continuous part of every organisation and it is taking place simultaneously
with the time in most of organisations (Cohen, 2017). There is always a requirement to make a
detailed analysis of the different factors that can have a impact on various business functions and
operations. In present report there has been a discussion of the royal Mail group PLC that is a
postal services and a UK based Courier Company that was established in the year 1516. It is the
subsidiary if Royal mail group limited and it is having operations in Royal mail & worldwide.
They provide functions such as mail collection and various delivery services (Carroll, 2016).
The report discusses about the different factors that impact the business performance of a
organisation. CSR as a concept is being chosen for the purpose of its analysis based on the
organisation.
TASK 1
Critical evaluation of different factors that are affecting the organisational process of decision
making
External environment is part of business operations that consist of both internal and
external factors poising impact on the functioning of such business organisations. It consists of
factors that are divided in two basic categories that are divided in macro & micro factors:
Micro factors: these are some of the factors that are part of every organisation and are having
a influence on every organisation regularly. It is also regarded as the task environment
sometimes. It is very important to analyse all such elements that part of the micro environment
there are some of the factors of the micro environment as discussed below:
 Customers: customers ate the most important stakeholders as they are actually
responsible for the revenue and profitability of the organisation (Bögel, 2019). It is also
very important for every business that they have to keep their customer long term
association and establishment of loyal base of customers. In case of Royal mail, also this
postal company is having timely services that lead to enhancement of satisfaction level of
their customers and they are not willing to switch to any other organisation of the same
industry because of the quality and timely services that are being provided buy the Royal
mail.
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 Competitors: competitors are one of the major threats for every organisation as they
might impact their overall profitability in the long run. It is also the responsibility of all
organisations in order to survive in the situations of high competition it becomes very
important to have a competitive edge and provide something different to their customers
that can actually help in preventing their customers from switching to other different
organisations of similar industry (Beschornerand Hajduk, 2017). In Royal mail, there are
high quality services that are provided to their customers it leads to getting a advantage in
comparison with other organisation of the similar industry.
 Employees: employees are one of the most important stakeholders in every organisation
as they are actually responsible for performing all the major functions associated. They
also help in smooth functioning and achievement of overall laid objectives. There are
many programmes that are started by Royal mail in which they are training and working
towards skill development of employees such programmes are very important to help
employees in their personal development and growth from the perspective of individual
career development.
 Market: The external market is where the organisation is functioning and it consist of the
actual area where functioning is taking place (Awuy, Sayektiand Purnamawati, 2017).
The external market is continuously changing so it becomes the responsibility of the
Royal mail that they have to move along with all the changes and trends that are
prevailing in the external market. Such that with the changes taking place in the digital
technology there has been a complete transformation in the way there are marketing
activities being undertaken by various companies. So, it becomes the responsibility to
undertake digital media as a source of marketing so that they can approach their target
segment of customers in the most appropriate manner.
Macro factors are those that are part of the external environment and they also posses impact
on the functioning of business organisation in their operations. Such factors have both positive
and negative impact on the functioning of such organisations. In context of Royal mail the
positive and negative impact of such PETSLE environmental factors are mentioned below:
PESTLE ANALYSIS
This is a tool and techniques which is described through the external factors that is
identified in the environmental scanning for the efficient and effective strategies. While
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continuing of the business operations this is necessary to develop the appropriate plans. In
reference to Royal Mail group plc is mentioned as follows:
Political: A company could explore its business throughout the world. In context to
Royal Mail Plc, this company deals in running industrial goods and services and also reveal the
certain risks involved in political environment. Further, this company provides employee
benefits which are necessary to motivate those employees for doing certain tasks. In addition to
this, it requires the proper safety rules and regulations in the industrial goods and services. This
could also affect the economy of a country for the political security within its industrial goods
and services(Shenoy and Aithal, 2017). Due to stability in political condition of UK , it imposes
positive impact on growth of business organisation. And also this company achieve success in
marketing of industrial products all round the world. Thus, it increases sales well as profitability
level in future period of time. On the other hand, due to increase in Bureaucracy as well as
corruption, it adversely affects the functioning and activities of business organisation.
Economical: This factor involves such as inflation rate, interest rate, foreign exchange
rate, savings rate that regulates the total supply and demand in an economy. In context to Royal
Mail Plc, this company utilizes further economic factors which include growth rate, inflation rate
and other industrial goods and services. Further, this company requires raising its high capital in
the local area market for the higher productivity. In assistance to this, the business cycle of any
of a company involves various stages such as recession, boom and recovery which might affect
the productivity and profitability. Due to availability of skilled and talented labour force it
imposes positive impact on success and growth of business organisation. It helps them in
increasing performance level of employees at workplace.
Social: The social factors involved society’s culture that leads to effect on the culture of
a business organization. Further, this includes various beliefs, values and attitudes of the total
community that plays a wide impact on the marketing activities that could need to understand the
end users within a market area that how the marketing message for the industrial goods and
services. In reference to Royal Mail Plc, the education system of this company needs to maintain
the standards within an industry. The manager of this company provides industrial goods and
services to its customer as per their need and demands. It helps them in retaining customer for a
longer period of time. It also assists company in building good brand image and reputation in
front of customer.
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Technological: It is defined as the technology which is fast growing business operations
across the world. In relation to Royal Mail Plc, technology is grown widely moving in
formulation of manufacturing which is distorted by Tesla that is determined by an electronic car
rotation. Any of an organization could not only focus on the technological analysis but also grow
the new inventions that distorted that particular company. This company has recently developed
the new technologies to meet its existing competitors. This leads impact on the cost of industrial
goods and services within an organization (Jezowski, Thomeand Calvert, 2018). Due to
implementation in latest technology, they offer unique services to its customer that helps them in
achieving competitive advantage over rival firm at marketplace.
Environmental: This factor is described as the various market structures which involve
various norms and beliefs that lead to effect on the total productivity and profitability of an
organization. Further, in UK this country has different environmental laws that determine the
liability of the performed laws. For example, Texas and Florida has various accountability
clauses which in case of trouble or any other environmental calamity. In assistance to Royal Mail
Plc, this company could aware while entering in new markets within the existing markets that
assess the environmental standards which is needed to run in those existing markets. In addition
to this, this company also managed the waste management towards the economy of a country.
Environmental factors involve air and water pollution that regulates the industrial goods and
services (Kolios, Read and Ioannou, 2016). Due to change in climatic condition, it is necessary
for company to changes their policies in order to cope up with changes occur changes within
business organisation. Sometime, it imposes negative impact on business organisation at
marketplace.
Legal: This factor of pestle analysis involves the legal framework that is sufficient for
the intellectual rights and regulations of a company. Any of the firm could aware of the assessing
in starting of new business in existing markets that lead to effect on the total competition
advantage. In reference to Royal Mail Plc, this company has the Anti-trust law within an
industrial goods and services that is affected by the total production in the country. Further, this
factor involves copyrights, patents, intellectual property law and so on. In addition to this,
various legal issues and regulations might be performed by a country. This company requires
having the information about the consumer laws that is stated towards the consumer protection
laws. While entering into the new markets the company has to run the certain procedure and
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process that might understand to solve the various issues with other stakeholders. Due to
imposing consumer protection law, it provides protection to its customer, if there is any product
which is harmful for them.
The manager of a Royal Mail Plc requires determining the environmental related procedure
with an efficient and effective strategy. This includes industry environment that a company runs
in the geographic market and also spread widely in the socio- economic or micro environment.
This company regulates the government rules that assess the over 500 years of government
ownership for the cost capital for Royal Mail company(Ansah and Sorooshian, 2017).
TASK 2
Evaluation of the response of organisation to different global forces
Corporate social responsibility & sustainability:
CSR is a basic concept that has gained lot of popularity and important with the changing
external environmental factors. There has been a self regulation model of business that has been
developed in companies as there is a requirement to become more socially accountable. It is a
practise that is having association with the corporate responsibilities of the organisations. And it
discusses about various aspects such as society, economic, social and environmental. It is a way
that is very helpful in enhancement of the society and environment by making some positive
contribution. It is a concept that is basically used for purpose of increasing the positive
contribution towards such environmental factors. It is a concept that is used by consumers and
company so that they are able to raise the living standards of people living in society. From point
of organisation also it is very important that to understand the overall implication of the different
aspects of corporate social responsibility for an organisation.
Sustainability is also an associated term along with CSR for organisations as it helps in
providing support to business environment, communities and individuals. Different models along
with instability must have to be implemented in the organisation so that it can help in attainment
of competitive advantage with best practises adopted related to corporate social responsibility.
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Relevance to organisation & impact on the decision making & overall policies of the
organisation
Royal mail services are a company dealing in various postal mail collection and they are
involved in delivering ten services across different parts of YK. Initially this organisation was a
part of the public service and was operating as a public corporation or in the government
department. In year 2011 major shares of the Royal mail got floated on London stock exchange.
There are lot of efforts that are being made by this organisation in terms of fulfilment of different
aspects of the corporate social responsibility as part of their organisational functions. With this
concept Royal mail has actually able to fulfil all their responsibilities and is working towards
achievement of higher brand image for their customers, because of its association with the
government of UK is also leading to fulfilment of their responsibilities towards general public.
(Source: Corporate Responsibility Performance and GRI Data,2018–19)
It can be observed that there has been a significant contribution made by Royal mail plc
towards safety matrix of people since year 2016 and till the year 2019.
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(Source: Corporate Responsibility Performance and GRI Data,2018–19)
The above graph clearly indicates that there has been a contribution of 2.40 m in the year
18-19 that is very high as compared to previous years. The voluntary contribution made by royal
mail towards overall environment has been 2.4 million in cash.
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(Source: Corporate Responsibility Performance and GRI Data,2018–19)
According to the customer metrics the customer satisfaction score has been consistent
through all these years at 78.
(Source: Corporate Responsibility Performance and GRI Data,2018–19)
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The CSR report of Royal mail accordance to the global reporting initiative (GRI) say that
they are making contribution towards various indexes. Apart from this the employee engagement
level has risen in the year 18-19 and stood at 60. Employee engagement has also risen from a
sector of 59 to 60 in the year 18-19.
(Source: Corporate Responsibility Performance and GRI Data,2018–19)
From the above mentioned graph it can be seen that there has not been any much increase in
eth total amount of carbon emission maid by royal mail PLC. The key action was taken in year
2018 as they introduced voice forums for giving their workforce and their board to hear the first
hand in key matters. Also, the reports have shown that They have invested around £1.8 billion in
five years in the UK postal services.
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It can be observed from the above stated data that the overall contribution made by Royal
mail PLC towards their various stakeholders group has been rising all through the years. From all
the above mentioned statistics it can be said that there is a significant contribution that is being
made by Royal mail PLC through all these years for fulfillment of their corporate social
responsibility.
Influence on the overall process of decision making:
The overall factors of that are part of corporate social responsibility posses a actual
influence on all the decision that are being made in the due course of functioning of a
organisation. There are many CSR initiatives that have to be taken by a company in order to
fulfil their responsibilities. These are basally divided into certain factors such as in case of
government relate factors there us a requirement that Royal mail has to completely and strictly
follow all the various rules that are being impose by government on them or the industry to
which they belong. Such as there are stricter policies made with regards to couriers industry in
which if there are any instances of loss of theft of proper or assets of the customers whole it is
being shipped or in transit then it is the responsibility of Royal mail to compensate their
customers complete losses and in certain cases more than the equivalent value of assets have to
be paid as compensation by the companies (Adebisi, Adejuyigbeand Amos, 2020). So, there will
be complete consideration of all such laws that have been imposing by the government of overall
decision making policies by Royal mail. Another sector is the people of society, it is part of CSR
that Royal mail has to follow the responsibility towards their customers to disclose them all their
policy terms, charge fair prices, not to take any unfair advantage, timely and quality services,
providing them increased values etc.
Are some of the aspects of the corporate social responsibility of Royal mail that they
posses towards their customers. After all the above the last category that has impact on the
decision making process is the society overall for which all the functions of an organisation are
actually revolving across. Such as in context of Royal mail the society actually provides them all
the resources for their functioning and also it forms the most important part in growth of a
particular industry (Zhao,., Lee. and Moon, 2019). So, while making decisions society as whole
posses and influence in such a way that they have to take all the ethical considerations towards
societal needs and requirements in their process of decision making. Such as while moving the
operations of marketing towards digital media it is the ethical responsibility of the Royal mail
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