Strategic Planning: Brook Ltd - PESTEL, SWOT, and Market Analysis

This report provides a strategic analysis of Brook Ltd, focusing on its internal and external environments. It begins with an introduction to the importance of external factors, including political, economic, social, technological, environmental, and legal influences, and highlights the significance of PESTEL analysis. The report then examines major changes in the external environment affecting strategic planning, followed by a stakeholder analysis, identifying the expectations of government, customers, suppliers, and competitors. The analysis continues with the application of Porter's Five Forces and the Boston Consulting Group (BCG) matrix to assess the current market position. A SWOT analysis is conducted to evaluate strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for the company to develop new sources of income and expand its operations, particularly in offering sexual treatment to a wider range of patients.

Strategic Planning: Brook
Task 1

Introduction
 This presentation has been prepared for the purpose of
assessing the internal and external environment of Brook ltd.
With the help of it, base for strategic options has been
developed along with creation of effectual strategies.

1.1 Importance of external environment
factors affecting the organization
External environment has a great impact in the functioning of this
social group that can be understood by the following factors:
 Political: The political factor depict about the political
condition which is prevailing in nation. Thus, it consist of
factor such as changing rate of interest and taxation policy etc.
The polices with regard to the sexual health services as being
framed by the government of country also causes significant
influence upon the company. Here, impact is major when
company denies to comply with the respective policy.
 Economic: The pricing policy of Brook is impacted due to the
given factor. For example, Brook has decided to raise the
prices of its services. The given objective of firm will not be
fulfilled if the economy of country where firm is running its
operation is affected through the condition like recession. It is
the situation in which people cannot afford highly expensive
products and services.

Continued....
• Social: This firm emphasizes particularly on the age
group of 25 years by providing free and
confidential sexual health services. In addition to
this, the firm should give correct answer to the
query being obtained by its buyer. Thus, if it will
not do this then the profits of the company will be
impacted.
• Technological: The manager of Brook must abide
with all the latest tools of communication for the
purpose to give information about the services to
the client. Here, through this way only firm can
maintain the satisfaction of its buyers. Thus, can get
benefit in the form of increased profits and sales.

Cont
Environmental: The firm must follow all the
environmental rules and regulations while delivering
the services If not followed then in this situation also
Brook can incur the negative impact.
Legal: It is essential for the firm that it should
follow all legal laws and regulations which are
associated with the consulting services. For example,
Equality act states that firm must give equal services
to all its buyers without any discrimination. If it is
not done then in the particular situation also
operation of the corporation will be impacted.

Importance of PESTEL
• The tool such as PESTEL plays very important role
for any firm. This is because, with the help of given
method firm can get thorough information about
the factors which are prevailing in the external
environment of company.
• Thus, enterprise can formulate an appropriate tactic
with an aim to work effectively in the external
environment.

Cont
Some degree of control over the board is
required for them to stay informed about
the activities that are taking place in the
firm.
From their ethical point of view, team
makes sure that purpose of its
foundation should be laid successfully
by providing correct solutions to the
targeted group.

1.3 Major changes of external
environment affecting the
strategy planning
Here, social group use PESTLE Analysis to track
and evaluate the external environment. This
analysis is as follows:
 Political and legal : Government and legal
policies such as aids and subsidies, consumer
laws as well as safety standards framed for the
welfare groups play crucial role in the
functioning of Brook.
 Economic: Interest rate, foreign exchange rate
and inflation rate put impact upon the
economic policies of the firm.

Stakeholders of Brook
The stakeholders of Brook have different expectation from
the firm. Thus, the detailed explanation of the same is
depicted in below:
• Government: The government of nation expects from the
firm that it should pay its taxes within specified time
period. Furthermore, it must abide with all the policies
and practices which is being framed by it.
• Customers: They expect that they should get high quality
of services or consultation in return of investing the
money. Among all they expect that they should get
proper answer to the queries.
• Supplier: They expect that they must get timely payment
to the services which is being given by them.
• Competitor: They expect that the Brook must not get
their customers and should promote fair competition

Cont.
 Social and environmental: Scrutinizing
cultural trends, demographics, environmental
offsets, and population analysis is necessary
for the formation of programs accordingly.
 Technological: According to this factor,
company needs much emphasis on the research
and development teams as per the present
technical scenario.

2.1 Tools to analyze effects of
current business plans
The present study will make use of following tools to analyse
current business plan:
Porter's Five Forces:
 According to the model, firm's strategies formation will be
influenced by five forces such as supplier power, threats of
substitutes, buyer’s power, threats of new entrants and
competition rivalry.

Porters five forces analysis for
Brook
Threat of new entrant: This is low for the cited firm because for
any firm, it is very difficult to find such professionals who can
provide advice upon the sexual services. It is due to the presence
of given aspect, very less number of firms tend to get entry in the
respective market.
Threat of substitute: This is moderate as substitutes for such
services can be varied other sources which tend to provide
information with regard to the given topic.
Rivalries among competitors: This is low because of the presence
of less number of competitors in the respective field.
Bargaining power of supplier: This is high as there are few
professionals who have thorough knowledge upon the respective
subject.
Bargaining power of buyers: This is low for the Brook due to
absence of competitors who can assist its buyers in the respective
fields.

Cont.
Boston Growth -share matrix:
Boston growth model helps to determine
Brook's life cycle stages that is
recognised as a tool for the investors to
scrutinize future programs coming up in
the pipeline. Measurement of the growth
depends on the following stages such as
question mark, star, cash cow and dog.

BCG matrix
• From the analysis, it is assessed that Brook belongs
to the cash cow phase. This mean that firm has low
market growth but high market share. This indicate
that firm should make measures in terms of raising
its market growth. This is done by it by spending
information about its presence in market among
large number of buyers. For this purpose, manager
of Brook can take help from different promotional
tools such as placing ads in social networking site,
newspaper and televsion etc.

2.2 Position of organization in
the current market
The current market position of Brook is as
follows:
 Market Share: Firm works at national level as
a voluntary organisation for the welfare of
young population of the country.
 Area of operation: It provides health related
services and advice to over 1,00,000 young
people each year.

Cont.
 Trust and loyalty: Customers are influenced by
the efforts of firm in the remote field. Better
services and proper suggestions are the
advantages for the company in building strong
human relation, loyalty and trust among the
customers.
 Brand recognition: The firm is one of its own
kinds in the country. Therefore, brand
recognition is above the average level, though
NHS is one of its uttermost substitutes.

2.3 SWOT Analysis
SWOT Analysis is the technique to understand the strengths
and weaknesses of firm as well as to identify its
opportunities and threats. These are as follows:
 Strengths: Brook is enjoying monopoly over the market
with good amount of health services. There is sense of
trust and loyalty among its customers.
 Weaknesses: Certain loopholes like poor
implementation, lack of proper communication skills
and shortage of trained workforce have effected its
performance in the market.

Cont.
 Opportunities: More and enhanced use of
promotional tools can provide better results to
the firm. Skilled and qualified team should be
motivated to create new ventures for the
improvisation of firm
 Threats: Here, though now it has monopoly
market but rise of new substitutes can dissolve
the feature. Set standards need to be met for
progress. With the passage of time,
technological changes might hinder its
development.

Conclusion
 Based on this report, it has been identified that cited
company is only having one source of income and hence
it is required to develop new sources in order to boost
the productivity level. In this context, company possess
the capability and high efficiency within the context of
developing new plan for expansion. Also, there are vast
opportunities available in offering sexual treatment to
patients of different age group.

References
 Bryson, J.M., 2011. Strategic planning for public and
nonprofit organizations: A guide to strengthening and
sustaining organizational achievement (Vol. 1). John Wiley &
Sons.
 Steiner, G.A., 2010. Strategic planning. Simon and Schuster.
 Allison, M. and Kaye, J., 2011. Strategic planning for
nonprofit organizations: A practical guide and workbook. John
Wiley & Sons.
 Short, M., Jones, C. and Jay, S., 2013. Strategic environmental
assessment and land use planning: an international evaluation.
Routledge.
 Johnston, R.E. and Bate, J.D., 2013. The power of strategy
innovation: a new way of linking creativity and strategic
planning to discover great business opportunities. AMACOM
Div American Mgmt Assn.

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