Business Environment Analysis of Schroeder PLC and Pestle Factors

This report provides a comprehensive analysis of Schroeder PLC, a British multinational asset management company. It begins with an executive summary and an introduction to the business environment, followed by an overview of Schroeder PLC's history, structure, and governance. The report emphasizes the significance of PESTLE analysis as a tool for assessing the external factors influencing the company. The main body of the report delves into the application of PESTLE factors, including political, economic, social, technological, legal, and environmental considerations, and their impacts on Schroeder PLC's operations and strategic decisions. The analysis considers the company's global presence across multiple countries and the associated challenges, such as political instability and regulatory environments. The report concludes by summarizing the key findings and insights regarding Schroeder PLC's business environment and its implications for future strategies.

Business environment

Executive summary
Every organization will meet the necessity and demands of both micro and macro environment.
Both the external and internal stakeholders which affect the decision of the business and its
activities as well. The Schroeder is a British multinational asset company which operates its
business from London and successfully captured a huge market of 32 locations around Asia,
America, Africa, Europe and the middle east. The topics which are going to be discussed in this
brief are the overview of the Schroeder plc including its history, its structure and how it is
governed. Then discussing why pestle analysis is important for the organization. At last these list
of all factors of pestle analysis which affects or impacts the Schroeder plc.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................4
Task 3...............................................................................................................................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment is the collection of all external and internal factors which are needs of
customers, employees, expectations from the customers, demand and supply, suppliers, clients
activities by government, market trends, social trends, change in economy etc. these factors will
affect the work of the company directly or indirectly. Business environment helps to find
opportunities, useful resources, planning in assists and also improves the whole performance,
profit and the growth of the business. Schroeders plc, it is a British multinational management
company, which is founded in 1804. It is a public limited company. Its headquarter is situated in
London, United Kingdom. Company make use over 5000 people through worldwide in 32 places
around Asia, America, Europe, Africa and middle east(Bah and Fang, 2015).
Main body
Task 1
Schroeder plc, it is a British multinational management company, which is founded in 1804. It is
a public limited company. Its headquarter is situated in London, United Kingdom. Company
make use over 5000 people through worldwide in 32 places around Asia, America, Europe,
Africa and middle east. It is traded on the stock exchange of London and it is part of the FTSE
100 index. The Schroeder plc is bearing the name of the Schroeder family of Hamburg with their
branches in many other countries. The family of Schroeder is controlling 47.93 percent of
companies ordinary shares through its trustee companies and individual ownership and charities
as well(Belás and et.al., 2015).
History of Schroeder plc that it is one of the biggest asset management group of banking,
and its offer a large private banking services to different institutions, charities and corporations.
There are 40 offices of the company worldwide or more which helps to supervise assets nearly
$200 plus billion. Two third revenue of the Schroeder is generating in Europe and more than half
of the revenue in United kingdom. Schroeder is cited on the stock exchange of London and it led
by David Salisbury who is CEO of the company. Schroeder was forced itself to leave the
banking market of investment and giving those operations to smith barney. The focus of
Schroeder was totally on the asset management, creating its private banking services and
expanding its field of fund offerings of pension. Schroeder is committed to integrity of the
business, increased ethical values and expertise across its all activities. The Schroeder plc board
supports high standard corporate governance. The Schroeder plc is regulated and authorized by
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financial conduct authority. There is one executive and one non-executive board of director
which is peter Harrison and the Philip Stephan Arnold mallinckrodt is non-executive. The
chairman of the company is Michael dobson, and he was appointed as chairman of Schroeder plc
in 2016(Cepel and et.al., 2018).
Management structure:
Management Structure of Schroeder Plc. Consists of CEO at the higher level of authority who
governs the work culture of the organization and sets limits for the firm. It is a banking firm
which consists of various regional heads which governs the better functioning of the firm and the
working structure of the firm. Then comes the manager of different sectors which is governed by
the managers. Then under them comes the workers of different sections which comes under the
working class. Schroeder is a public limited bank which consists of various shareholders and
stakeholder which from which some of them are under the board of directors which governs the
regulatory act and procedures and the decision-making is discussed by the board of directors.
Governed structure:
This structure consists of the board of director which needs to be addressed the changes
which are taken with the support and structure of the government. As per the requirement of the
bank decisions are taken with the advice and support of the board members which governs the
regulations of the bank. The flow of the decision is in the hierarchical order which can be used to
deliver the decisions in a downward direction. The decisions are passed on from top to bottom.
Hierarchical Structure:
Hierarchical structure of Schroeder Plc. has a flow of hierarchy in matrix structure which
is followed by the Schroeder, as there are many members in the board of directors which
discussed the problems and revive the solution to be addressed. The flow of decisions are from
higher level to the lower level of the hierarchical order. This refers to the flow of decision is
from higher petitions to the lowest position.
Task 2
Pestle analysis is a useful tool for the decision makers when assess the advantage and
disadvantage of the project. This analysis can help to find the factors which may affect the
success of the large and small projects of the organization(Calabrese and et.al., 2018).
Pestle analysis is used to appraise the factors which are from outside, and they will affect the
business:
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Political factors helps the organization to decide the present direction of the political parties
which may influence the development of the business and growth.
Economic factors analyze the effects from interest rates, stock market, taxes and the confidence
of consumer and some other metrics which are economic.
Social factors accept the changes in the lifestyle, ethics, advertising targets, culture and
demographics.
Technology factor judge the current technology of your organization. It checks that it is up-to-
date or not(Deasy and et.al, 2016).
Legal factor assume some new regulations and laws that will impact or affect your operations.
Environmental factor helps to find the environmental factors that will be going to considered.
Use of pestle analysis is to do accurate and systematic evaluation of the new project or a
business. This process will provide better awareness to the decision makers and helps to
understand the changes which may happen and the impact will affect these changes on their
business. The analysis of pestle needs data and research, sometimes it needs so old and
sometimes only few. With the result of past and the present company can build predictions for
their future. It is important because it is whole plan for the expansion of the business. Owners of
the new business and the existing pro level businesses are also including pestle analysis in the
plan of their business. Its help to identify the changes in its various factors and these factors will
going to affect your company in the future. With the breakdown in the critical authority in its 4
categories, and the understanding by the business owners is better because they know that the
next move of their business is strategic or idiot(Eling and Schaper, 2017).
The main aim of the Pestle analysis is to know and understand that how external forces will
affect the organization and how the factors of pestle will create threats or opportunity to the
business. Pestle analysis helps you to understand the present external consequences on the
company so the organization can work on the facts instead of the assumptions. It shows that
which factors will help to change in future. It check risks and take the advantage of that
opportunity to be competitive. It build well and long term strategy(Georgescu and Popescul,
2015).
It is useful in understanding the whole environment of the market. Of there is more risk and
threat inn the market so it will be more difficult to business in that market so by identifying the
forces of market then the company can be more strategic in their planning and its decision-
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making. Pestle analysis helps the business on their plan projects so after that the business will
focus on only the projects which have the huge chance of the success. Pestle also provide the too
for the forecast changes so that willy help the business to grow more with those changes rather
than working against of them. Focus of the pestle is on the impacts and the big picture on the
overall organization or its market or the important decision for the organization. It is best tool for
the research of the market and helps to do large analysis of the business environment.
Organization have to use pestle at the time of new startup of the business or when they are
uncovering the big problem. It is also used when the business is rotating around the center point.
When organization identify forthcoming changes in particular area, and they want to reconsider
the market. Keep one thing in mind that pestle analysis is macro level of evaluations.
Organization can't conduct pestle analysis for small issues and internal projects. The advantages
of pestle has involvement of cost effective, gives deeper understanding of the organization, threat
alertness and a way to exploit opportunities. It is cost effective because the pestle analysis can be
done through just by pen or paper and a simple document. Pestle analysis help to see so many
various factors which can affect the success. It helps to encourage the strategic thinking to
develop more and to understand deeper strategic planning. With the help of pestle analysis
organization have the capability to analyze changes and build a plan which will decrease any
damage or profit increase. Without this then organization can face unexpected threat.
Opportunities are external so use of pestle to know about external environments, organization
can found opportunities and apply them to make the strength of the form more strong(Hillary,
2017).
If organization is using pestle just keep in mind that what is the reason of using pestle. If its is for
fleshing out the idea of business or it is for the understanding the organization target audience
more exhaustively. If organization don't have any reason for using pestle analysis then it may
provide underwhelming results(Erasmus, Strydom and Rudansky, 2016).
Task 3
Pestle analysis is a tool to recognize the macro environment of the business. Pestle stands for
Political, economic, social, technological, environmental and legal factors that will going to
impact the environment of Schroeder plc. Changes in the environment factor can direct impact
on Schroeder plc and it can also impact other opponents in the financial services. It can impact
companies competitive advantage or the total profit of the financial industry. Pestle analysis
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gives great details about how to operate challenges that Schroeder plc will face in common
environment more than competitive forces.
All the factors of pestle which have a great impact on the Schroeder plc.
Political factors- It plays a meaningful role in identifying the factors that will impact Schroeder
plc 's long term profit in various countries and market. Schroeder are operating financial services
in more than 12 countries and exposing themselves to various types of political environment and
also system risk in politics. Achieving success in vital financial services organization crosswise
different countries to expand the system risk of the political environment. Schroeder can analyze
the factors from closely before enter or invest in a certain market. Schroeder must minimize the
political influence for safer working. Schroeder must use the political influence for better
establishment of the firm. Political stability and its importance in the economy of the country of
the financial service sector. There is a risk of military invasion. Corruption level will be their and
especially on the financial sectors where level of regulations are high. Various political factors
like change in the government like elections which can affect the firm. There will be a decrease
in sales. Political interference will be changed which will affect the organization with the growth
and sales. due to Brexit various import and export policies will be added, there will be a rise in
the price of production price of products will substantially increase which will affect the
company's economy. (Kljucnikov and et.al., 2016).
Economic factors- The macro environment factors like inflation rate, interest rate, savings rate,
foreign exchange and economic cycle which identify the aggregate investment and aggregate
demand in the economy. While environment factors of micro like competition stand rads which
impact the competitive advantage of the company. The company can use the economic factor of
the country and these factors are inflation, growth rate and economic indicators of firm which are
growth rate in financial services, consumer spending etc. It is for to forecast the raise course not
only of the sector but of the business. Economic factors which they have to consider when they
are conducting analysis pestle. They have to consider that how many types of economic system
and which type of system it is and it is stable or not. Always look for the interference of the
government in the free markers and also related with the financial. Always consider the
workforce skills level in the industry of financial services. Schroeder must improve the strategy
in order to evaluate the economic scale and expand further.
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Social factors- culture of society and the way to do the things it will impact the culture of the
organization in the environment. Share attitudes and conclusion of the population because it will
play a great role that how marketers in the Schroeder will understand the audience of the
available market and how they will gong to design the message for marketing for the industry of
the financial services of customers. There are some factors which pestle analysis will analyze for
the Schroeder are that they have skilled level of people and demographics. Education level and
also the standard of education is good in the Schroeder industry. Nature of society is broad and
also have entrepreneurial spirit. Because some societies will encourage entrepreneurship and
some don't encourage. Standardization must be improved in order to evaluate the key result and
maintain the fruitfulness of the company. (Prajogo, 2016).
Technological factors- technology is so fast and disorganize different industries through the
board. Industry of transportation is better to understand this point. From the last 5 years industry
is upgrading very fast and not giving a single chance to established competitors to manage with
the changes. Industry of Taxi is now ruled by the competitors like Lyft and Uber. Industry of car
is moving quickly towards the automation which is led by technology such as Tesla and google
which has declared a revolution of electronic car. The company is not doing only analysis of the
technology but also disrupts the technology with the speed of the industry. Slow speed will
provide more time and fast speed of disruption technology may provide a less time to manage
and it can be profitable. Analysis of technology involves some impacts which are that the
competitors of Schroeder are developing their technology. Impact of technology will affect the
product offering. It will impact on structure of cost of the financial services firm. It will impact
on the structure of the value chain in the financial sector(Saleh and Watson, 2017).
Environmental factors- different markets have various environmental standards which will
impact the profit of the organization in such markets. Even inside the country it generally states
that they have various liability laws and environmental laws. So many countries of Europe
provide healthy breaks of tax to firms which handle in the renewable sector. Before entering into
the new market or setting up new business in already existed market then the organization have
to be careful when evaluating the environmental standards which are needed to handle in those
markets. There are some factors of environment which organization have to consider that are
change of climate, weather, recycling, Managing water and air pollution in the industry of
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financial services. Management of waste will be proper in the financial sector. Attitude towards
the ecological products and also towards the renewable energy.
Legal factors- In so many countries the institutions and the legal framework are not the strong
enough to save the rights of intellectual property of the organization. A company will carefully
assess before going to enter these such markets it will result in theft to organization secret
information for the competitive edge. There are some legal factors which Schroeder have to
consider when they were going to enter into the new market. In financial services there were anti
trust law and for the whole country. Also, discrimination law should be consider. Important
things are patent, copyrights. There are so many factors which impact company are protection of
data, law of safety and health, law of employment and e-commerce and protection of consumer.
Conclusion
From the above report I concluded that business environment have huge impact on the operations
of the business. It may also result in its success and failures. The factors which are affecting may
be external or internal so there is a need of analyzation timely so the solution can be taken what
to do for that consequence and also solution for any type of loss. This report shows that how
Schroeder plc will analyze its problems with the help of pestle tool and it will help to them find
the lacks and problems in the organisation. So the use of pestle will lead to growth and
development for the business, it will analyze and give solution to the problems.
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REFERENCES
Books & Journals
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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., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
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Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
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Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
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