Talk Talk PLC: Analysis of Company Structure, Governance, and PESTEL

This report provides an in-depth analysis of Talk Talk PLC, a telecommunications company in the United Kingdom. It begins by examining the company's organizational structure, including its hierarchical management style and the roles of senior and middle-level managers. The report then discusses the governance of Talk Talk PLC, focusing on the board of directors, the roles of the CEO and chairman, and the relationships between the company and its stakeholders, including shareholders and employees. The second part of the report focuses on PESTEL analysis, explaining its purpose in identifying external environmental influences on the company. It then delves into each factor of PESTEL (Political, Economic, Social, Technological, Legal, and Environmental), discussing how each affects Talk Talk PLC's operations, market strategies, and overall performance. The analysis considers factors like government regulations, economic conditions, societal trends, technological advancements, legal frameworks, and environmental standards, providing a comprehensive understanding of the macro-environmental forces impacting the company.

Talk Talk PLC

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Structure of the company, its management and how it is governed......................................1
B) Discuss how the company is governed .................................................................................2
TASK 2............................................................................................................................................3
1) Identify the purpose of PESTEL analysis in the organisation................................................3
2) Discuss the analysis of PESTEL factors.................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
This report is talk about Talk Talk PLC, which provides pay television,
telecommunication, internet access and mobile network services to business ans consumers in
the United Kingdom. It is established in 2003 and the aim of this assignment is to improve the
management and internal structure of the company. It covers the following topics like- history of
organisational structure and how it is governed, purpose of PESTLE analysis and factors in the
organisation.
TASK 1.
A) Structure of the company, its management and how it is governed
Company is an entity that engages in the business and it a voluntary association formed
and organised to carry on a business. There are various types of companies like- partnership, sole
proprietorship, public limited company etc. Talk Talk PLC is deals in voice telephony, fixed line
broadband,mobile and television services. It serves over 4 million residential and business
customers under Talk Talk PLC group. It offers three consumer propositions: simply broadband
and it provides unlimited broadband without inclusive landline calls and essential TV and plus
TV. It is a B2B telecom provider serving the wants over180000 business and public sector
consumers across the country. It delivers a rang of services and communication products which
involve hosted solutions, networking and connectivity, mobile, internet protocol telephone
system. It follows the hierarchical organisational structure in its company. In this type of
structure in which responsibility and power are clearly defined, specified and position of a
person has allotted as per the hierarchy. In hierarchy a company can use different level of
authority and chain of command between superior and subordinate levels (Aghasizadeh and
Ostadi, 2012.).
Company has managed its operations nationally with the help of hierarchy structure. Senior
manager make up the board of directors and they are responsible for the formulation of policies
and strategy while middle level managers have responsibility for a particular function like selling
and distribution. All employees follows the command of its leaders and all employees have to
perform according to the instructions of the manager and higher authority. It can help the
organisation to manage its business effectively and efficiently. Work is allotted as per the skills
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and knowledge to the staffs. It helps to make good communication and coordination between all
departments of the company.
B) Discuss how the company is governed
Talk Talk PLC is governed by the board of directors and it follows the hierarchical
structure in its company. It has total 12 directors in the board in which 5 directors are executive
and 7 directors are non executive in the board. Chief executive officer has high ranking authority
in the company and it take major decisions and help to foam the policies so that operations can
be managed effectively. CEO of Talk Talk PLC is Tristia Harrison and chairman is Charles
Dunstone. Chairman is an executive person which is selected by the board members of an
organisation. It is responsible for committee meetings abs ensures that it smoothly run so that
effective board decisions can be taken. CEO is appointed by the board members in annual
general meeting and it is appointed in the year 2017 (Bullinger and Warschat, 2012). Chairman
is appointed in 2017 and it is elected in the first meeting of the board. Stakeholder is a person
who has an interest in the company or who is affected by the outcome of a project. It can be from
outside or inside in the organisation. Example, stakeholder can be suppliers, creditors, owners
etc. If company buy raw material from its suppliers and the annual report shows that it has
suffering from huge losses. In that situation it can pay the amount to its suppliers because it does
not have sufficient money to pay. So suppler would be affect from the annual results of the
organisation. There is principle and agent relationship between board of director and
stakeholders.
Relation between the board of directors and the stakeholders are as follows-
a) With shareholders:
Board of directors and the shareholder are directly related in the organisation but they
indirectly related with it. Director hold the fiduciary position in the company and they are
responsible to protect the interest of shareholders. Shareholders are the owners and directors are
the employee of the organisation. So there is a relationship of owner and employee between the
shareholders and the directors of Talk Talk PLC. It is the duty of board to make policies as per
the benefits of owners so they are not affected. They invest in the company for the growth and
expansion so that it can survive for a long term in the market (Goffee and Scase, 2015).
With employees:
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There is a relationship of employer and employee between board of director and
employee. Employer has to form the rules, regulations and policies in the company and all staffs
have to perform it as per the guidelines of it. Management assign the task to the workers
according to their capabilities, skill and knowledge and employee has to the work as per
instructions given by the employer. In return it gives salary to the staffs for their work and efforts
to finish the task and help to achieve the goals of the organisation. Management is responsible to
protect the interest of its workers so that they can put its 100 percent efforts. It should provide
appropriate working place and take care of the safety so that they can do work effectively. It is
the duty of employer in the company to solve the issues and problems so that they feel more
comfortable and their confidence can be increase upon the organisation. It helps to increase their
productivity and efficiency so company also will able to achieve its target and success.
Employees are the most important and valuable assets for the Talk Talk PLC. They treat all
staffs equal.
TASK 2.
1) Identify the purpose of PESTEL analysis in the organisation
PESTLE analysis help the company to identify the influence of external environment in
the company. There are two types of environments which affect the business of the organisation
such as internal environment and external environment. Internal environment includes
employees and management of the organisation. External environment includes competitors,
suppliers, government etc. Internal environmental factors can be controlled by the management
but it is difficult to control the external environment. PESTEL analysis is a technique which can
be used by Talk Talk PLC to identify and evaluate the macro environmental factors. They can
make a great influence on the company (Klüver,2012) .PESTEL means political factor,
economic factor, Social factor, Technological factor, environmental factor and legal factor. It is
difficult for anyone to predict the future means what is going to be happen in future no one tell
about it.
A company can understand the current situation in environment but it can not assume the
situation of future. It has to perform various management and operational activities on day to
day basis but a sudden change in the market can hamper the overall performance of the
organisation. It helps to evaluate the factors of macro environment so that Talk Talk PLC does
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not influence from it or it can make changes according to that. So it does not affect from these
factors. For example, if government of United Kingdom make a law that all companies have to
pay 2.5 percent out of its profits as corporate social responsibility. It can affect the organisation
because its profits will be reduce. So it can be said that it is very difficult for the company to
analyse the changes but with the help of PESTEL is can be possible in some extent.
2) Discuss the analysis of PESTEL factors
PESTLE Analysis:
It is a technique which is used by marketers to evaluate and monitor the macro
environmental factors that can have impact on business (PESTEL analysis, 2018). This analysis
helps the company to identify the various factors which can affect the business
operations(Saunila and Salminen, 2014). With the analysis of these factors Talk Talk Plc can
reduce the risk of uncertainty in business. PESTLE is a mnemonic which is expanded to
Political, Economical, Social, Technological, Legal and Environmental. It is described as below:
Political:
Political factor determine the impact of government on economy or industry. For the
smooth functioning of business it is necessary to have a stable government in country. These
factors includes the change of government, tax policies, fiscal policy, trade tariffs, risk of
military invasion, laws related to telecommunication etc. These are factors which have direct or
indirect impact on business of talk talk plc. For example, if there is changes in government of
country so the new government will come up with their own policies and rules. So it will have
direct impact on business of talk talk plc as they have to cop up with the new rules and regulation
(Hyde and Boaden, 2013). So it is important for company evaluate this factor and formulate
strategy accordingly.
Economic:
These factors are determinants of an economy's performance which directly impact on
performance of company. The factors includes the inflation rate, saving rate, interest rate, foreign
exchange rate, growth rate and employment rate etc. As for example a rise in the inflation rate of
economy would affect the way talk talk plc price their products and services. As during the time
of inflation company's products and service prices will be high and consumers spending will be
lower. So overall it will lower the demand of company's product and service and lower demand
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will leads to low sales (Wood and et. al., 2012). The talk talk plc can use country's economic
factor as tool to grow their company.
Social:
Society's culture and way of doing things affect the environment of organisation. Social
factors are the social environment of market and determinants of social factors are change in
behaviour, culture, demographics, population, standard of living. As the changing attitude or
behaviour can affect the demand of products and service of talk talk plc. If the consumer
behaviour changes and they start shifting towards the other telecom company then it will be loss
for talk talk plc. And it will decrease sales of talk talk plc and decrease sales leads to low
revenues for company. As people who immigrate from one place to another could also effect the
demand of talk talk plc.
Technological:
It is most considerable factor now days. As technology is very dynamic and it changes
very frequently. The companies should always aware about latest technology which comes in
market. As by adapting latest technology talk talk plc can take competitive advantage in market.
The latest technology can also reduce the cost for company as it will work more efficiently. And
overall it will reduce the cost of its operation. The talk talk plc can take competitive advantage
by launching latest 4g technology in market (Willis, 2017).
Legal:
Legal factors are the most prominent and considerable factor for any company. There are
certain laws that affect the business environment in certain country while there are certain laws
that companies maintain for themselves. Legal factors includes the anti trust laws, discrimination
law, employment law, health and safety law and changes in the laws. As if changes in
employment laws can effect the employment policy of talk talk plc. The company have to change
its employment policy according to new laws. As non following of these laws could leads to
heavy penalties on the company.
Environmental
Environmental factors are related with environment of particular location. The different
markets have different norms or environmental standards which can impact profitability of an
organisation. As before investing in new market talk talk plc should analyse the environmental
standards carefully to operate in that area smoothly. These factors includes the weather, climate
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change, laws regulating environment pollution, air and water pollution regulations in
telecommunications industry etc. As these are the factors of environmental analysis which could
affect the operation of talk talk plc (Seba, Rowley and Lambert, 2012). The change in climate
can have also impact on the profitability of business of talk talk plc.
CONCLUSION
As from the above report, it has been concluded that it is important for a company to
create effective organisational structure and management in the organisation. In this report
chosen company is Talk Talk PLC . It want to manage its hierarchical structure and govern its
organisation with effective CEO and Chairman and make the strong relation between board and
stakeholders. Apart from this it also discussed about the PESTEL analysis has also be done to
know the influence of external factors in the company.
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REFERENCES
Books and Journals
Aghasizadeh, Z., Aghdassi, M. and Ostadi, B., 2012. The impact of implementing total quality
management on organisational structure. International Journal of Productivity and
Quality Management. 9(4). pp.472-485.
Bullinger, H. J. and Warschat, J. eds., 2012. Concurrent simultaneous engineering systems: the
way to successful product development. Springer Science & Business Media.
Goffee, R. and Scase, R., 2015. Corporate Realities (Routledge Revivals): The Dynamics of
Large and Small Organisations. Routledge.
Klüver, H., 2012. Informational lobbying in the European Union: The effect of organisational
characteristics. West European Politics. 35(3). pp.491-510.
Hyde, P., Harris, C. and Boaden, R., 2013. Pro-social organisational behaviour of health care
workers. The International Journal of Human Resource Management. 24(16). pp.3115-
3130.
Mouzelis, N. P., 2013. Organisation&Bureaucracy Ils 157. Routledge.
Saunila, M., Mäkimattila, M. and Salminen, J., 2014. Matrix structure for supporting
organisational innovation capability. International Journal of Business Innovation and
Research. 8(1). pp.20-35.
Seba, I., Rowley, J. and Lambert, S., 2012. Factors affecting attitudes and intentions towards
knowledge sharing in the Dubai Police Force. International Journal of Information
Management. 32(4). pp.372-380.
Willis, P., 2017. Learning to labour: How working class kids get working class jobs. Routledge.
Wood, J., and et. al., 2012. Organisational behaviour: Core concepts and applications. John
Wiley & Sons Australia, Ltd..
Online
PESTEL analysis. 2018. [Online]. Available Through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis>