Contemporary Developments in Business: An Analysis of SSE PLC

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Contemporary Development in Business
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Table of Contents
Introduction......................................................................................................................................2
External Influences to SSE Company and its essentialities.............................................................3
Cultural change and Organizational culture of SSE.......................................................................8
CSR or the “Corporate Social Responsibilities” of SSE.................................................................8
Critical evaluation of SSE and the effectiveness...........................................................................10
Areas of improvements as well as recommendations....................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
The SSE Company is the leading organization of distribution of electric and gas that located in
United Kingdom. The Company is associated with huge electric distribution products along with
gas distributions across Scotland and United Kingdom. The organization has big contribution
towards each sector and the steps of United Kingdom such as political, technical, ecological,
social, and economical and others factors. This organization is very obedient and beneficial to
the UK government that develops better markets worth of their promotion. In this study, it is
discussed about several kinds of external factors, which affects the organization in different sides
of aspects.
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Task 1
External Influences to SSE Company and its essentialities
The SSE Plc Company is the leading supplier of electricity and gas supplier in Scotland and
United Kingdom. The business unit dominates a huge distribution market of distribution of
energy since its formation and from that time, the organization is impacted with various kinds of
external factors (Storey, 2016). Therefore, in this section, the various external factors will be
explained.
1. PESTLE Analysis
The PESTLE analysis defines about the various types of external factors that affects an
organization regarding it production, growth, products, supplies and other associated
business (Rastogi and Trivedi, 2016). The SSE Company has huge energy distribution
market across UK and throughout the world. Therefore, according to some research, the
company has gone through some transformations and changes in its different strategies.
 POLITICAL INFLUENCES
According to various sources of research, it is been found that the mentioned company force
always in political influences by the local government due to its wide cycle of business and
this known as the 2nd largest energy distribution company in United Kingdom. Therefore, any
alterations are impacted in decisions operated by SSE plc is all about the tariffs, policy
regarding taxes, trading and others that influence the business system along with the
strategies. Therefore, in current scenario, SSE builds “Fiddler’s ferry Power station” in the
United Kingdom, which has very large contribution to this country and beneficial to the
government of United Kingdom especially for enhancing their energy of electricity through
dint of additional power with power station that build by SSE Company (Zinovieva et al.,
2016). They are also concerned about the government impacts along with influences from the
local politicians, and this is why they have gone through making a consultation with the
politician along with the local government. For the business success of SSE Company,
majority of investors want to invest on the organization and to the national grid, which make
the government aware of the influence and power within the local markets. The reason, the
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government helps the organization is because SSE Plc is the major power distribution unit
that makes beneficial for the country in majority of the time through enhancing the electricity
lights across UK in wide extent.
 ECONOMIC INFLUENCES
In current scenario, the organization SSE Plc took decisions about selling its halve of the
company’s holdings to Scottish Wind Company in order to make major holdings of the
company to make more precious and active. Coming to the portions of finding additional
benefits along with the excellence, the company provides its services throughout the world.
Europe economy as well as the western world economy goes through large crucial moments
in the economic history because Europe enchantingly loses its prices against the dollar and
other units of monetary system of the globe through crisis at Greece and other parts of the
countries in United Kingdom. The Europe bank and the bank of England are those banks,
which showcase very robust attitudes in analyzing the loan amounts regarding the business
units in the world. The organization SSE Plc is also concerned about the investments in
several new energy power stations of United Kingdom through keeping maintenance in
providing the salary amount to their majority of staffs across UK (Joshi and Beck, 2018). The
SSE Plc organization always has large contribution towards United Kingdom’s economy in
several paths like establishing new energy powers stations, developing new electric products
and equipments to UK energy markets. Therefore, about 19400 people in United Kingdom
are associated with SSE Plc as staffs and from this it can be presumed about their
contribution to the United Kingdoms’ economy year after year, makes a better economic
stability in UK, and helps the local government for developing other economic decisions.
 SOCIOLOGICAL INFLUENCES
It is already known that SSE Company is a leading producer of electricity Distribution
Company and it is very significant and influential to the electric distributors and suppliers in
United Kingdom. The business unit is the 2nd largest producer of energy distribution and it
acquires the biggest market place across the world for its big size along with transaction
amounts. It has huge number of suppliers, customers, employees, well-wisher and other kind
of UK partners and they are associated with the organization directly and indirectly (Alvarez,
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2016). As being a biggest organization, the SSC Plc requires to face number of social thrusts
and demands on it because of the large business size. SSE Company is concerned all time
about storing heritage sites of United Kingdom regarding negative influences over the
electricity power station and products of electricity because the societies have soft minds
about the beautification of those heritage places in the country. Therefore, currently the SSE
Company declares rewards for several energetic and skilled, helpful youths who are serious
about the goodness of societies.
 TECHNOLOGICAL INFLUENCES
SSE Company keeps consistency in its continuous involvements with several modern
technologies in latest science through dint of their daily involvements. In fact, their actions
are requiring being technological as they work with the energy relating electricity and gas for
the country as well as in Scotland. The gas supply and distribution of electricity energy are
related with those activities (Mian, Lamine and Fayolle, 2016). In the recent scenario, there
have been developed traditions about easy storing of customers regarding paying bills and
creating more services to be available and beneficial to customers. Hence, from those
inspirations of trend, SSE organization develops it very easier to the consumers in paying
own bills and thus makes this majority of the technical help basis.
PORTER’s FIVE PROCESS
This is paradigm to analyze the impacts over 5 things like influence from different buyers,
influences from the suppliers, potential entrants, threats and industry rivalries from several
substitutes.
Suppliers:
The raw material suppliers regarding electric and its associated beneficial commodities have
large influences on the SSE Company. The reason behind this that, these are the core success
points regarding the business of the organization and this actually works behind the screen of
success. Therefore, these suppliers find best resources in order to sell their products and they will
generally move (Bertozzi, Ali and Gul, 2017). This is why the authority management of United
Kingdom concerns about keeping them satisfied with the organization. It is about providing the
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suppliers as per their demands and logical prices along with concerning about having satisfied
with the organization through certain techniques such as delivering additional helps outlining the
prices.
Buyers:
In the SSE Company, there are many buyers across United Kingdom and Scotland, this is large,
and millions of buyers of SSE trust the company in term of services regarding supply of electric
energy and gas for millions of households and for the local government of UK.
Potential Entrants:
United Kingdom is the largest competitive markets of products of several kinds and the corporate
units of entire sectors. They have always been alert about the competitors impact in the market
(Aithal, 2016). Therefore the SSE organization isn’t out of those influence, as the organization
response to the impacts and change of ‘potential entrants’ through the promoting actions and
activities such as developing trending power stations in Great Island and thus meet the needs of
trending generations.
Substitutes and its threats:
According to the research, the market of SSE Company is increased in terms of number of
substitutes such as sunlight source, individual energy plans, new resources of energy and
renewable energy sources, which makes a way for the SSE business though having some
complicacy to some extents (Lüttgens and Diener, 2016)
Industry and the rivalries:
The SSE Company fails in the issue regarding industry rivalries in this era. The reason is the
creation of large competition as well as developing vast industrial innovation things. The
company requires to response those impacts and changes, and according to reports, SSE
Company already has implemented those factors (Witter, 2018). The SSE company and its
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rivalries will be there to compete with the company and its products and it is important to have
concern over these factors over regarding the share market.
Committing to long term changes
SSE Company has been in the market for a long time. The company operates assets of energy
and it is continuing to develop modern infrastructure of energy that might lasts as long. In oder to
ensure about the success of the organization in future, the culture and the composition of the
company’s workforce requires to shift with time. The employees and staffs are more innovative
and productive, and thus best decisions are developed with variety of experiences and
perspectives being expressed. Therefore, ultimately, an inclusive and diverse business reflects
better to its customers and it leads to better performances and service. In understanding the
diversity and inclusion in four years, this process shall take time to nurture these principles to
every level of operation (Cremers, Litov and Sepe, 2017). Therefore, the business staffs are
committed as well as energized to implements these changes. Thus working with similar
approach are grateful for wise decisions and guidelines. The most essential thing is that, the SSE
Company requires more to think strategically about maximizing the inclusion values. In the next
four years, SSE Company will be playing crucial role in analyzing the future success through
developing talents and skills to its workforce and SSE’s human capitals. It is important to make
the correct decisions to meet the future challenges. Therefore, it is also observed that through
implementing an extra strategic approach the company can maximize the inclusive return value
on every investment. Through measuring the inclusion returns, it is essential to understand the
value of tasks and objectives of SSE. Therefore, SSE Company’s objective is to make an
inclusive environment where it could extent the pool of talents available to the business unit,
ensuring its growth from level to level. The SSE Company has important opportunity to embed
several inclusion diversity and principles across the business to develop true inclusive culture
over the next four years. Therefore, this offers achievements to substantial benefits in the
commercial businesses of the company and thus SSE is the leader of industries in this particular
field.
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Task-02
Cultural change and Organizational culture of SSE
CSR or the “Corporate Social Responsibilities” of SSE
These are thoughts as well as the steps that are undertaken by SSE for the development of the
social community along with the various stakeholders in order to create very strong as well as
harmonious relation with all the customers, stakeholders as well as other communities. These are
focused for a benefit that will be on a long-term basis with the help of those actions. The CSR
are taken outside the interest of SSE and only for the benefit of the various stakeholders as well
as communities.
Relevance as well as influence of the CSR on SSE
In the sector of the providing electric energy in UK market, SSE is the second largest among
other companies. This company is basically based on distribution of the various electrical
products along with supply of gas as well as the electricity in entire UK. It has a vast network of
suppliers, customers, communities as well as buyers as the company is operating in a vast area
and those stakeholders have relationship with SSE directly or indirectly. The key point and the
determination of the success of the company are depended on the network of the customers as
they can change the condition of the market share of the company (Alvesson and Sveningsson,
2015).
Influence of the customers:
The decisions of the buying products by the customers are depended on the thoughts about the
alternative products or its producers, quality as well as the goodwill of the SSE Company. To
influence the customer base, reputation of the company is a very crucial thing and this is the
reason behind the good organizational culture of the company (Anderson, 2016). The company
always makes the business strategies for the advantage of the customers.
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Influence of the employees:
The employees of SSE are very much responsible for the success of the company as they are the
internal community as well as important stakeholders of the company. They give a huge
contribution to enhance the productivity as well as distribution amount. The SSE takes several
decisions for the satisfaction as well as the betterment of the employees.
Influence of the Investors:
The cultural and social activity of SSE actually helps the different investors to take decisions
about their investments for the company as well as they are influential for the company in a huge
extent. A good culture as well as social activities of the company influences the investors in
order to make their best investments and this helps the company for getting good investments
(Thompson, 2017).
Influence of the competitors:
As the competitors are the threats of the company, SSE develops their management as well as
strategies accordingly for the betterment of the company and handles the competition in an
effective way.
Self- influence:
As the company is involved with the CSR or the “Corporate Social Responsibilities”, they are
creating a large influence in the electric as well as energy market. This is helping the customers
to get a full introduction of their management as well as other decisions (Cameron and Green,
2015).
Influence of the Public:
Any kind of positive or negative news about the organization can make a difference in the image
of the organization. Whenever the company organizes any kind of social activity it helps the
companies to auto promote its brand and it increases the chance of increase its customer base.
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Critical evaluation of SSE and the effectiveness
The company is basically based on distribution of the various electrical products along with
supply of gas as well as electricity in the entire UK. In addition to this, SSE is the second largest
distributor of the electrical products as well as electricity. There are some responses of SSE to
the various CSRs and the effectiveness is discussed below:
Charity as well as development of the community
The company has developed a strong bond with various communities in UK as well as Scotland.
Apart from this, the company is aware of building trust and strong relation by organizing various
charities. SSE can promote various products and services with the help of various developmental
activities for the community such as campaigning, social awareness programs and many more
factors on the different popular topics for the society (Dhir, 2019).
Green business
SSE is increasing their focus on making the industry towards a green business with changing
their various activities in the business. As the world is facing global warming and it is increasing
on a daily basis, the companies are trying to develop sustainable business process and products
with less CO2 emission. The company is focusing on making the society pollution free and pure
as with the various wastes, the environment is getting polluted on a daily basis (Williams et al.
2017). By organizing various social activities, the company is increasing its goodwill and the
reputation that will make a strong belief in their products as well as services.
Effective communication with the Customers
The customers of SSE are in the priority for their success as they are changing the organizational
culture of the company. SSE believes that the customers are the stakeholders those are
considered at first in all the business perspectives for the development of the organization as well
as to attract the customers for the benefit of SSE. From the website switch.com, SSE got the
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customer’s satisfaction award few years ago. This is only possible because of the care of the
company that is served by the company (Al-Ali et al. 2017).
Compensating the customers
The company is following a new theory to make the people to be influenced towards the
products of SSE and other services. These responses are an excellent approach towards the
“Corporate social responsibilities” for SSE. The attraction towards the company is enhanced
when the customers know that for any fault the company does not say sorry only but they
provide compensation to the loss of the customers. These kinds of ethics in their organizational
culture have helped to gain a large customer base in the entire UK and Scotland.
Limiting the industrial wastes
The manufacturing industries produces a large volume of wastes every year by their
manufacturing processes and these develops a negative impact on the environment causing land
pollution, water pollution as well as air pollution. They release harmful toxins that are affecting
the health as well as environment. Lots of industries including SSE are taking serious steps
towards limiting the industrial wastes and these are good signs for making a sustainable
environment and benefit of the society.
Benefits of the employees
It is true that the success of the company is depending hugely in the contribution of all the
employees and for this reason the company is responsible for developing the community by
giving them proper accommodation, share of the profits, training as well as the other things that
will help the community by various methods (Kwiatkowski, 2017). These contribution of the
company towards its employees made the company capable for the enlisting their name in the
top of the energy distribution in the UK and Scotland.
Minimizing unemployment
The problem of the unemployment has became a major issue for the entire European Union and
in this situation, SSE is paying huge attention to the various issues of the unemployment and
focusing on the strategies to minimize these issues. They have initiated several initiatives to help
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