SSE plc: A Report on External Influences, CSR, and Strategic Responses

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TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
External influence to an organization and its importance...........................................................2
PEST analysis..............................................................................................................................2
Porter five force model................................................................................................................5
Task 2...............................................................................................................................................7
1. Analyze its relevance to your chosen organization and how it influences policies and
decision-making within your chosen organization or industry-sector.........................................7
2. Critically evaluate the effectiveness of the organization’s response......................................9
3. Demonstrate some areas for improvement in the response of the organization....................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

LIST OF FIGURES
Figure 1: Logo of SSE plc...............................................................................................................2
Figure 2: PEST analysis...................................................................................................................4
Figure 3: Porter five force model.....................................................................................................6

Introduction
SSE plc Company is chosen in the report which stands for Scottish and Southern Energy plc that
is the largest organization of the gas and electric distribution situated mainly in the UK. This
organization involved the distribution of the gas and electricity as well as electric products
through Scotland and the UK. The organization has the great contribution to each sector and
steps of the UK such as ecological, technical, political, economic, social etc and an organization
is obedient and helpful to the UK government that creates the market good worth promotion to
them. In the report, the different kinds of the external factors along with its impact as well as the
response of an organization with effectiveness to those will be shown in the report.
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Task 1
External influence to an organization and its importance
SSE plc is one of the leading suppliers of electric of the UK and is dominant in the large market
of the energy for a long period of time since the organization established the fro and time so that
an organization get influenced by the several external factors (Thompson, 2017). The external
factors are being illustrated along with its importance are as below:
Figure 1: Logo of SSE plc
(Source: sse.com, 2019)
PEST analysis
It means an analysis of the economic influence, political influence, technological influence and
social influence on an organization. SSE has a huge market of energy in the UK and all over the
country. Recently, the organization has changed its some strategies that are as follows:
Political influence: The organization is always affected by the political factor if the local
government is through the large business cycle and it is the second large power energy sector of
the UK. If the SSC plc operates any change in the decisions about the tariffs, tax policy, trading
etc it put influence on the business strategies and system of an organization. For the SSC plc
success, many investors like to do investment in this organization which aware the government
about the organization influence and power in a local market (Coll and Wajnberg, 2017). It is the
reason which the government helps an organization as it is the leading energy power
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organization that helps the UK economy in many times by increasing the light or power of the
electricity all over the country.
Economic influence: The organization take the decisions of selling the organization holding to
the Scottish firm in making main holding firm of an organization more precious and active in
finding the excellence and extra benefits in the UK market all around the world. This
organization has huge contributions in the UK economy in several ways such as developing the
new station of power, generating the innovative electric products and instruments for the UK
power market. The huge involvement of the employee in the organization creates the good
stability of the economy by the UK economy and also helps the government to make a lot of the
other decisions related to economic.
Social influence: As of the large position of the organization in the UK market, it has numerous
suppliers, employee, partners, and customers which are related to the organization indirectly and
directly. As of the largest organization, they have to face lots of the presser and social demand on
them because of the vast business size. The organization is a concern all the time to keep its
heritage sites in out of the negative influence of the electric products and electric power station
because society has the soft mind towards the heritage sites beautification of a country (LEYVA
et al., 2018). Recently, the organization declares to rewards the energetic and skilled employee to
make society better.
Technological influence: The organization keeps its involvement continuously with the least
technology in an organization. So in the organization, the activity is needed to be technical
because they are working with an energy of gas and electricity for the Scotland and UK for the
supplying of the electric and gas distribution for the activities or energy. Recently, the
organization has created the tradition to make easy for the consumer to pay the bill as well as
make the services available which is helpful for the customer to do the payment by the help of
the technology adoption in the organization (Curry et al., 2015).
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Figure 2: PEST analysis
(Source: corporatefinanceinstitute.com, 2019)
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Porter five force model
This model is meant to analyse the impact of the five things such as influences from the buyers,
influence from the suppliers, industry rivalry, and the threats from the substitute as well as
potential entrants.
Suppliers: The raw material supplier and the electricity helpful commodity has a great impact on
the organization as they are key success point of the organization and they actually work behind
the success scene. If the supplier fined the better selling source of their products then they move
generally to them and it is the reason the UK managing authority is concerned always about
giving a supplier their logical and demanded prices (Mathooko and Ogutu, 2015). The
organization is a concern also about in keeping the supplier satisfied, and for this, they provide
the extra benefits to them which are beyond the cost.
Buyers: In the organization, there are the numerous buyers in Scotland and the UK, and there are
the huge million populations in which the SSE Plc is the believable organization for supplying
the energy of the gas and electricity to the household and local government.
Potential entrants: The one of the most competitive market in all over the country is the UK
economy in a kind of any business and products of all kind of the sectors and they are also
concerned always about competitor impact in a market in which SSE plc is not that of all
influence (Rosenberg and Ferlie, 2016). The organization is also response towards an impact and
change of the potential entrance through promoting the several business activities such as
creating the new station of the power in the Great Island as well as also tries in meeting with the
new generation requirements.
Threats from substitute: Recently in a market, there is the increase in the substitute number such
as sun planet; a renewable energy source, individual energy plan, new energy source and this
make a way of SSE plc business complicated at some of the extents.
Industry rivalry: SSE Company falls in a problem through dint of the industrial rivalry in the
century as of the creating of the huge competition and also creating the huge industrial new
thing. So an organization has to respond to those of the changes, and an organization is doing
such factors already (Zhao et al., 2016).
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Figure 3: Porter five force model
(Source: Ovidijus Jurevicius, 2013)
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Task 2
Corporate social responsibilities and sustainability of SSC Plc
The corporate social responsibility (CSR) means the steps and thoughts that are needed to be
undertaken by an organization out of its thinking and interest about the social betterment and the
stakeholders for developing the consistency and strong relationship with a consumer, other
stakeholders and community with the motif of gaining the benefits and profits from such
activities (Bilbao et al., 2019).
1. Analyze its relevance to your chosen organization and how it influences policies and decision-
making within your chosen organization or industry-sector.
The SSE Company is involved in the distribution of the gas and electricity as well as electrical
products through Scotland and the UK. As due to vast in business size in the UK an organization
has numerous suppliers, buyers, community and customers who have an indirect or direct
relationship with the organization. It is known that the consumers are determiner and a key point
of SSE organization success as they are able to turn the market in a second (Akakpo et al., 2019).
Customer influence: All time the customer makes the buying decisions of any of the products
from the organizations by putting some of the criteria in the mind such as thinking the alternative
product producer, thinking on the product quality, as well as also they are influencing greatly by
organization goodwill and reputations. The organization reputation is maintained by hiring the
numerous consumer and they do that which the organization wants to do so the customer is the
key valuable assets for the organization. The organization prepares its marketing strategies by
thinking mainly on customer benefits.
Employee influence: The employee is a strong internal community who are influencing on the
organization success in wide extent, as well as they, are important stakeholders of an
organization through influence on the amount and productivity of the product distribution of an
organization (Lüttgens and Diener, 2016). They influence mostly to organization decisions and
the marketing strategies as well as other things through which the organization needs to satisfy
the employee for the employee betterment.
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Investor influence: The organization social activity like the SSE plc helps an investor to decide
about investing in an organization as well as they are also influential to an organization to a
wider extent. The CSR responsibilities of an organization influence an investor in making the
best investment in an organization and hence the social activity helps an organization to acquire
the good investment amount from various external points. So an organization prepares its
management plan and marketing strategies by keeping all the activities clear and will be helpful
to an investor in making the right decisions.
Competitors influence: SSC plc prepares its management strategies and planning for successful
business operations by thinking on its competitors as the competitors are the biggest threats to an
organization. If SSE organization is involved with the activity of CSR and if an organization
involves itself with community betterment then such social activities automatically make it
different from other competitors (Paredes et al., 2016). It is the main reason the SSC plc involved
the many kinds of social activity in its business.
Self influence: If an organization is involved with the CSR then an organization indirectly make
a large influence in a market of the energy as well as they are covering the full introduction of a
consumer so an organization can make its management and the other decisions through their own
control. The new ideas and thinking are generated also by involving with the social activities
which help an organization to find its new way of doing the business by adopting the corporate
social responsibilities and activities in the business.
Public influence: It is one of the most important influential factors and component for any type
of business in a world. The positive news and negative news on the business can change the
image or features of the customer towards a particular organization. If the SSE organization
operates any kind of the CSR activity then they contribute to the sustainable development
through delivering the environmental, social and economic benefits for all the stakeholders (Ho,
2017). It also creates the marketing or auto promotion of electric supply of the products and also
creates a huge base of the new product customer in Scotland and the UK. For this, such kind of
activities is influential and necessary to make the decision and management planning of the
organization based on their involvement.
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2. Critically evaluate the effectiveness of the organization’s response.
SSE plc is responsive to any type of CSR activities of a society. The few responses of the
organization to the CSR and its effectiveness are mentioned below:
Community charity and development
The organization develops the strong link with Scotland and UK community and it creates
awareness in an organization of creating of the string link with them through establishing the
several kinds of the charitable things in an organization. The organization promotes its products
recently through doing the several kinds of the activities to develop the community such as
increasing the social awareness in public towards different popular topics through creating the
campaign on such topic in the society (Lee and Schaltegger, 2018).
Green business
Recently, SSC plc pays its concentration to make the green business of its activity and even they
are successful in such activities. As the world is day by day getting warming and it is the way in
which an organization plan and make the strategies in making the green business. The
organization is concern always in making the pure society through electrical activities as if the
perspective environment and society is populated by industrial waste than they create the bad
impact on the organization that in turn reduce the lot of the customer. By doing this type of
response and social activity an organization can build the goodwill and reputation.
Keeping customer communication first
The organization is knows that the consumer is valuable assets for the business success and they
also change the business features in a second and in this they believe that consumer is the first
consideration in making the organization better (Barkemeyer et al., 2015). Also, the organization
can gain customer satisfaction award and this excellence and success help the organization in
building the good relationship with the consumer along with a purpose of achieving a lot of
benefits and profits from such activities.
Minimizing the industrial wastes
In every year the SSE plc with the other organization facing with many problems because the
industries are creating the huge industrial waste amount in each year by its gaining process and
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