Schroders Plc: Business Environment Analysis and PESTLE

This report provides an in-depth analysis of Schroders Plc, an investment management company, examining its business environment, organizational structure, and governance. The report begins with an executive summary and an introduction outlining the scope and objectives. It then delves into the company's history, organizational structure (including its hierarchical structure), and governance, highlighting key figures like the Chairman and Board of Directors. The core of the report focuses on the importance and application of PESTLE analysis to Schroders Plc, explaining how it helps assess external factors and develop strategic plans. The PESTLE framework is applied to analyze political, economic, social, technological, legal, and environmental factors influencing the company. The analysis considers various factors, such as political risks, economic conditions, social trends, and technological advancements, and their impact on Schroders Plc's operations and strategic decision-making. The report concludes by summarizing the key findings and their implications for the company's future.

BUSINESS ENVIRONMENT

EXECUTIVE SUMMARY
PESTLE analysis is very important tool that helps business to evaluate the impact of
various types of macro environment factors on the business. It has been found out that company
is having hierarchical organizational structure in which important decisions are taken by top
management. Further, it has been analysed that PESTLE tool assists business to look at different
influential factors that might affect the success of product or services of the business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Examine the governance and structure of the company..............................................................4
TASK 2............................................................................................................................................7
Importance of conducting PESTLE analysis for the firm...........................................................7
TASK 3............................................................................................................................................8
Analysis of external environment with the help of PESTLE framework....................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment can be defined as the sum total of all the factors such as internal
and external factors that influences the functions of company including customers, employees,
supply and demand, business regulations, management etc (Prajogo, 2016). In the current times,
it is highly essential for the managers to make proper assessment of both internal and external
business environment while developing strategic & policy framework. The Report is based on
Schroders Plc. It belongs to the industry of investment and management. It was founded in year
1804. Key people of the firm are Peter Harrison, Michael Dobson etc. The Report will outline
the history, organization structure and governance of the company, the value of using PESTLE
analysis and analysis of macro environment with the help of PESTLE framework.
MAIN BODY
TASK 1
Examine the governance and structure of the company.
Overview of organization-
Schroders Plc is a type of asset management company. It operates the activities in the
industry of investment management. Company was founded in year 1804. Headquarter of the
firm is located in London, United Kingdom. Currently, there are more than 5000 people working
across different ranches worldwide. It provides services at approximately 32 different locations
such as America, Africa, Asia and Europe etc. In year 2018, total revenue of the company was
£2626 million. Total operating income in year 2018 was £761 million. The website of Schroders
Plc. is www.schroders.com. The main headquarter of the firm is located in the City of London.
The securities of the company is traded on London Stock Exchange and it is also a component of
the FTSE 100 Index.
History -
The history of the company was started in year 1804 when John Henry enter into
partnership with John Frederick. In year 1818, both the partners has established Henry Schroder
& Co. in London.
In year 1923, J Henry Schroders Banking Corporation which is a commercial bank was
established in New York. Further, in year 1959 shares of Henry Schroders & Co. was issued to
the public for the first time (Belás and et.al, 2015). In year 1986, firm has disposed its
commercial banking branch which is located in New York and then purchased 50 % of

Wertheim & Co which is an investment bank based in New York. The activities of the bank are
very similar to the business in London. In year 2000, firm has disposed its investment banking
branch to Citigroup for £1.3 billion. In year 2005, company has entered into joint venture with
Bank of Communications Co. Ltd. for establishing fund management company in China. Further,
in year 2007 firm has entered into an agreement with Fisch Asset Management which is the
leader in strategies of investing in convertible bonds to distribute different types of convertible
bond funds. It has also expanded the business in Middle East by starting a new office in Dubai.
Later, in year 2011 company has established an office in Chile. In year 2012, company
has purchased 25 % share capital of Axis Asset Management Company which is based in India
and it is a part of Axis Bank Limited. In year 2013, Schroders Plc. Has purchased capital
management branch of Cazenove for worth £424 million.
Organizational structure -
It refers to the system that defines how specific activities are performed in order to attain
the objectives of organization. The activities may involve responsibilities, rules and roles etc. It
also determines the flow of information between different levels in the company (Erasmus,
Strydom and Rudansky-Kloppers, eds., 2016). The organizational structure of Schroders Plc. is
as follows -
Hierarchical organization structure -
Under this type of organization structure there is a proper chain of command from top
authority to low level of the business. Senior management of the company is having authority to
take all the decisions then those decisions are passed downwards through subsidiary levels of the

management. If, any person at lower level wants to take any decision, they will make request to
upper level management for the approval. There are various benefits of hierarchical structure to
Schroders Plc. Such as it helps to permit only few people to take decisions due to which it results
into control orientation (Roberts, 2016). Further, there is a career path through this type of
structure where employees get advance through different levels of management over a number of
years. Those people who reach at the position of top management develops massive experience
with the business.
Governance -
Chairman- It refers to the person appointed by board of directors who is having responsibility
for presiding over committee meetings.
Michael Dobson:
The chairman of the firm was appointed in April 2016. Michael is also being Chief
Executive since November 2001.
Board of directors:
They are people who are elected by shareholders of the company to represent the interest
of shareholder's, and they also ensure that the management of organization will act on their
behalf.
Executive Directors- They are a senior manager of the firm who is responsible for working with
board of directors.
Peter Harrison:
Peter is appointed as a Chief Executive of the group in year 2016. Previously they are
head of investment and executive director from May 2014. Further, Peter is also a Director of
FCLT Global, Chairman of the Investment Association and a member of the Takeover Panel.
Richard Keers:
Richard is appointed as a Chief Financial Officer and a Director of the company in May
2013. Further, they are also appointed as a Chairman of Audit Committee and non-executive
member of Lloyd's Franchise Board.
Non-Executive Directors- They are the members of the board of company who is not a part of
team of executive directors.
Ian King:

Ian is nominated as a non - executive Director of the firm in January 2017 and as a Senior
Independent Director in April 2018. Further, Ian is also Chairman designate of Senior plc.
Rhian Davies:
Rhian is appointed as an Independent non-executive Director in July 2015. They are a
partner at Electra Partners as an independent fund manager until June 2015. Further, Rhian is
also Chairman of Audit and Risk Committee.
TASK 2
Importance of conducting PESTLE analysis for the firm.
PESTLE analysis-
It refers to the tool that helps business to identify forces that are existing in macro
environment that influences the working of organization. It includes factors like Political, Social,
Economical, Environmental, Technological and Legal, PESTLE analysis is very important for
Schroders Plc in different ways (Reddy, 2018).
Collecting information is the initial stage of PESTLE analysis. After gathering details, the
next step is to evaluate them. The analysis of information related with external factors helps team
members to identify the threats and opportunities and also support the management to gain
advantage of those opportunities. Further, the analysis also help the company to counteract the
threats. A PESTLE analysis is not only about listing down technological, political, social and
economic fators but, such type of information is very helpful in developing effective strategies
(Yanase and Limpaphayom, 2017). After collecting details for relevant factors the analysis is
helpful in comparing the factors with other factors. This makes easier to generate solutions for
overcoming threats and also help to generate ways to make the best use of available
opportunities in order to support the firm to achieve its goals.
A PESTLE analysis is very important element of the process of strategic planning.
Without basic idea about macro factors that are influencing the business or its strategies,
management will never be able to attain the aim and objectives or to accomplish the goals. On
the other hand, the total insight that will gain from PEST analysis will ensure that the strategies
developed will be successful (Ngoc-Dung, 2017).
Further, PESTLE analysis also help to develop deep understanding of the factors that are
directly or indirectly affecting the organization. PESTLE tool helps business to look at different
influential factors that might affect the success of product or services of the business (Aithal,

2016). It also promotes the development of strategic thinking for gaining a deeper understanding
of strategic planning. Schroders Plc. Conduct PESTLE analysis due to various reasons such as it
provides a simple structure to perform the analysis. It also helps to bring together the skills of
different departments to achieve a common objective. It assists company to evaluate potential
threats to the business and the ways to reduce their negative impact. Moreover, it helps
Schroders Plc. to encourage workers to choose a strategic thinking mindset, assist the
management in developing a method to exploit and find out new opportunities and also helps to
determine the effect of different types of decisions before implementation (Perera, 2017).
PESTLE analysis is a very important tool that helps manager of the company to evaluate positive
and negative effect of major business decisions. This can be applied to small projects like
marketing campaign, large projects, new methods of production and launching new products etc.
TASK 3
Analysis of external environment with the help of PESTLE framework
In order to analyze macro environmental position, PESTLE tool has been used and applied.
This is highly effectual which in turn provides high level of assistance in evaluating external
market position from several perspectives such as political, economic, social, legal,
technological and environmental. By making assessment of all such aspects Schroders Plc would
become able to develop competent strategic and policy framework for the upcoming time period.
PESTLE analysis
 Political factors: It lays emphasis on determining factors which in turn places high
impact on company’s profitability. Schroders Plc is operating in several countries which
in turn impose several political risks in front of the company. Tax policies prevailed in
the country and trade barriers closely influence business practices of Schroders Plc.
 Economic factors: With regards to Schroders Plc, manager should keep in mind
economic aspects while setting strategies. Moreover, firm is offering its products or
services over the globe. Meanwhile, economic condition of concerned countries has
significant impact on business operation. The reason behind this, during recession,
customers prefers less in relation to making investment due to lack of having high
disposable income. Firm’s profitability is also influences negatively due to the
fluctuations take place in exchange rates. For dealing with this aspect, currently firm is
applying hedging strategy or tool. This in turn helps firm in reducing the negative impact

of changes in exchange rates. Along with this, conditions of employment also have
impact on Schroders Plc’s operations. Moreover, in the case of lower employment
customers do not invest money in products offered by asset management companies.
Thus, while setting strategic framework business unit should keep in mind all such
aspects.
 Social factors: Under this element, there are several factors which impacts Schroders
Plc’s operations significantly. Due to the class distribution factor Schroders Plc failed to
promote premium category products to the customers. Moreover, after the condition of
global recession spending power of the customers decreased significantly. Hence, for
getting success firm has to rely upon niche marketing (Pestle analysis of Schroders Plc,
2019). Further, now customers take decision about purchase after making evaluation of
all the options available in market for investment purpose. The rationale behind this, now
all the companies share their investment or assessment management products or services
online. This in turn offers opportunity to the customers in relation to taking appropriate
decision after evaluating each and every aspect such as cost, return etc. Along with this,
now trend pertaining to online shopping has also increased significantly. Thus, by
offering quality online services Schroders Plc would become able to develop satisfaction
among the customers.
 Technological factors: In the current times, technological advancement is increasing
with very high pace in every industry. With the motive to boost profitability and enhance
operational efficiency aspect companies are placing high level of focus on using updated
technologies. In the context of Schroders Plc, firm should lay emphasis on undertaking
social media marketing strategy. According to this, by placing advertisements on social
sites such as Facebook, Twitter and Instagram firm can persuade customers about
services offered by it. Moreover, now people are spending their high level of time on
social networking sites (Schroders Plc PESTEL & Environment Analysis, 2019). Hence,
by placing innovatively designed advertisements company can influence decision making
of customers at global level.
 Legal factors: Schroders Plc also has accountability in relation to complying with legal
aspects, laws and legislation. As, company is operating at global level so it needs to
follow all the concerned rules and regulations. There are several laws related to

intellectual property right, consumer, employee, environmental protection etc with which
company needs to comply for developing effectual image at marketplace. By considering
all such aspects it can be depicted that Schroders Plc must follow laws in relation to
employee/labour health & safety as well as ethical obligations. Further, according to the
laws, Schroders Plc cannot discriminate its individual on the basis of age, race, gender
etc. Along with this, firm also needs to follow Data Protection Act and Intellectual
Property right Act for avoiding undesirable aspects in business operations.
 Environmental factors: For attaining success in the competitive business environment
Schroders Plc is required to comply with environmental aspects. Now, customers give
high priority to the firms which perform their operations in an eco-friendly manner.
Hence, Schroders Plc is required to employ renewable technologies which in turn ensure
recycling and effective waste management. Along with this, firm also needs to make
focus on complying with environmental rules and regulations for avoiding aspects
pertaining to resource depletion (Schroders Plc PESTEL & Environment Analysis, 2019).
In addition to this, by following all the environmental rules & regulations business can
develop distinct image in the mind of customers and thereby enhances brand image.
Further, weather and climatic conditions also have significant impact on Schroders Plc.
Moreover, highly extreme weather condition compels organization in relation to making
value chain flexible and imposes high cost of operations. Referring overall evaluation, it
can be presented that changes which take place in weather and climatic conditions closely
influences spending pattern of customers etc. Due to all such aspects, firm is required to
make significant changes in both product and marketing related strategic as well as
policy framework.
CONCLUSION
By summing up this report, it can be concluded that Schroders Plc follows hierarchical
structure. It can be seen in the report, managers of each allocated with distinct roles and
responsibility. Further, it has been articulated that Pestle is highly significant for Schroders Plc
from the perspective of decision making. Moreover, such tool provides high level of assistance to
the firm in assessing the extent to external business environment is favourable. Besides this, it
can be inferred that by doing PESTLE analysis firm can identify measures or initiatives which it

should takes for building as well as sustaining competitive position over rivals. It can be
summarized from the evaluation that by making focus on technological, legal and environmental
aspects firm can attain success.

REFERENCES
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selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Ngoc-Dung, D.A.O., Huawei Technologies Co Ltd, 2017. Distributed hierarchial cache
management system and method. U.S. Patent Application 15/064,221.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Reddy, B.V., 2018. The Fat Controller: Slimming Down the Excesses of Controlling
Shareholders in UK Listed Companies. Oxford Journal of Legal Studies. 38(4). pp.733-763.
Roberts, R., 2016. Schroders: merchants & bankers. Springer.
Yanase, N. and Limpaphayom, P., 2017. Organization structure and corporate demand for
reinsurance: The case of the Japanese Keiretsu. Journal of Risk and Insurance. 84(2). pp.599-
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Online
Pestle analysis of Schroders Plc. 2019. Online. Available through: <
https://www.case48.com/pestel-analysis/9738-Schroders-Plc>.
Schroders Plc PESTEL & Environment Analysis. 2019. Online. Available through: <
http://fernfortuniversity.com/term-papers/pestel/nyse4/7524-schroders-plc.php>.