Comprehensive Business Environment Analysis: TalkTalk PLC Report

This report provides a comprehensive analysis of TalkTalk PLC's business environment. It begins with an executive summary and introduction, followed by a detailed discussion of the company's organizational structure, management, and governance. The report then explores the significance of PESTLE analysis for business units, explaining the impact of political, economic, social, technological, legal, and environmental factors. Finally, it applies the PESTLE framework to analyze the external environment of TalkTalk PLC, considering factors such as political stability, economic growth, social trends, technological advancements, legal regulations, and environmental concerns. The report concludes with a summary of findings and references.

Business Environment

EXECUTUVE SUMMERY
The present report is based on TalkTalk Plc group for exploring all term that are related
with the business environment such as organisational activities, function and the factors that can
affects the operation or activities of company. It is a telecommunication company of UK which
serves their services in internet access, television and mobile networks.

Table of Contents
EXECUTUVE SUMMERY ...........................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
TASK 1............................................................................................................................................4
Discuss the structure of organisation, its management as well as how its governed.............4
TASK 2............................................................................................................................................6
Significance of PESTLE analysis for a business unit ...........................................................6
TASK 3............................................................................................................................................9
With the help of PESTLE framework, analyse the external environment of selected firm.. .9
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Business environment refers to all internal and external forces that may posses power to
affects the function and operation of company. It includes consumers, suppliers, government
rules, demands, management and many other factors. It is essential for a company to analyse all
factors so that company will be able to run their operation without any barrier (Akhtar and
Sushil, 2018). In the following report TalkTalk PLC organisation is selected in order to explore
all the terms of business environment for company. This is a telecommunication company which
provides television, internet access, mobile network services and so on. In this current report
discussion about structure of enterprise, along with management is carried out and how its
governed is also included. Moreover, the important of PESTLE analysis is explained. At the end
of the assignment the analysis of external environment in context of selected firm is carried out
with the help of PESTLE analysis.
MAIN BODY
TASK 1
Discuss the structure of organisation, its management as well as how its governed.
Organisational are formulated for performing various functions and operation in order to
accomplish the objective of company. For this, it is important to follow any structure so that
company will able to attain its goal within stipulated time. And that is termed out as
organisational structure. In this the boundaries of activities, rules, regulations, norms etc. are
mentioned for all members of company and that provides a direction path to every one (Hamilton
and Webster, 2018). In context of chosen firm TalkTalk PLC, it is discussed in detailed as
follow:
Overview of company
TalkTalk PLC is one of the leading organisation of UK in term of making money for
providing connectivity services. This organisation was founded in year 2003, headquartered in
Salford United Kingdom. They provides Television, mobile network services,
telecommunication, internet access to their consumers across globally. They are more focused to
provides affordable, and reliable fixed connectivity to their consumers in order to enhance sales
and profit margin of enterprise.
History of TalkTalk PLC

This firm was founded as a subsidiary of Carphone Warehouse and come out as a stand-
alone firm in year 2010. This business firm changes its name from Opal Telecom to TalkTalk
PLC in year 2011. Nevertheless it has been descent from many different division of
telecommunication companies that have been adopted over including Pipex, Opal Telecom etc.
in 2019 the headquarter of this company is sifted from London to Salford. This is the first
company who makes Britain first gigabit city by launching 1 GB fibre network in y2014, York.
In 2011 they become the first internet service provider by launching whole home filtering
services which is know as HomeSafe® to their all consumers without any extra cost. They
provides safety to all families from suspicious websites and inappropriate content. In 2010 they
outcome from the Carphone warehouse and become an independent firm of UK.
Organisational structure of company
The purpose of following an organisational structure is that it provides flow of
information between all levels of company. In which it consist four types i.e. functional,
divisional, matrix and flat (Saleh and Watson, 2017). The below picture shows the OS of chosen
firm.

From above picture it can be analysed that the chosen form follows the hybrid
organisational structure which is the combination of functional and divisional organisational
structure. The chosen firm use this structure because it provides several benefits to firm such as it
creates a shared mission and permits workers to perform different projects in different sectors
without loosing their fixed position within company. In addition to this it lend themselves to so
called market distribution. Another benefits that it provides is massive scale up which can be
increased by use of it. Due to these reason this firm use this such kind of OS.
From above picture it can be seen that there are 10 peoples on Board in which 4 are at
executive position and the remaining 6 are at non- executive position. In which the CEO (Chief
executive Officer) of this firm is Tristia Harrison. Before joining the Board she was managing
director of same company in year 2014. She joined carphone warehouse in 2000 and has held a
number of senior management and executive position.
In addition to this the chairperson of this company is Sir Charles Dunstone, he was the
founder of Carphonme Warehouse and created TalkTalk in year 2000. he gain this position in
year 2010 at TalkTalk Plc along with this he became the executive chair in 2017. He has directed
for the development of firm in order to become the leading fixed line telecommunication at UK.
Kate ferry is the CFO of chosen firm, she was a members of Dixons Carphone Plc before joing
TalkTalk. John Gildersleeve is the at position of Deputy chair, he was appointed in 2010. Sir
Howars Stringer joined the board as a non executive Director in 2012. Roger Taylor is alos a non
executive Director and he joined the board in 2015. Nigel Langstaff is an another non executive
office of selected firm and the joining year is 2017. Ian West is senior Independent director,
joined board in 2011. he is being involved in TMT sector over 30 years. Phil Jordan joined the
broad in 2018. Before this he was the CIO of Vodafone and Telefonica for more than 20 years.
Paul Reynolds is an another non executive director. He joined this company as a broad in April,
2020. All of these members are the Board of directors of company TalkTalk Plc.
TASK 2
Significance of PESTLE analysis for a business unit
PESTLE analysis is a model or a tool used by marketers in order to analyse or monitor
the macro environmental forces that have power to influence the function and activities of
company (Prajogo and Oke, 2016). And the outcome of this analysis is used to determine the

threat and weakness along with opportunity and strength of company which is carried out with
the help of SWOT analysis. It is essential to conduct PESTLE analysis before SWOT in order to
operates business function is smooth way. This tool is useful in that time when a business unit
wants to expand its business in foreign market or wants to open a new business. PESTLE is an
descriptor that stand for Political, Economical, Social, Technological, Legal and Environmental
elements. In which the people have expanded this framework with some more factors i.e.
demographics, intercultural, ethical and ecological.
All these factors posses some importance which are discussed below:
Political factor: The importance of this factors is a business need to considered all
political factors in order to responds the current and anticipated future legislation so that it will
become easy for that mangers to make and adjust their marketing strategies or policies

accordingly (Liu and et.al., 2017). It influences the long term sustainability of company along
with profitability.
Economical factor: This factors is crucial as it is related with the profit, demand and
sales of product or service of company. This will aids company in determining the financial
condition of company as well as how a company can operates its business by considering all
term of economy such as economic growth interest rate etc.
Social factor: It is related with the culture beliefs of consumer and it is important for a
company to under the trends and preferences of buyers is order to attract large number of
individuals for their products or services.
Technological factor: For enhancing the sale and profit of company it is essential to
considered technological factors. Company need to opt new ideas and technologies for
increasing the market shares of firm. As well as people are most likely to buy innovative and
creative product and for fulfilling the demand of consumer it is necessary to address all these
factors (Pratistha, 2016)
Legal factors : It includes all these factors which are related with health, safety, rights,
and opportunity of employees and product labelling for consumers. And it is significant to look
all these factor as all these can either effects or provides benefits to company.
Environmental factors: These factors become important because the scarcity of raw
material and pollution is increases day by day along with this, the carbon foot print is disappears.
In order tom overcome all these factors, company needs to looks environmental factors.
From the above discussed points it has been analysed that PESTLE analysis is the key
approach for a company in making effective and strong strategies and planning. As it aids
company in identifying the significant changes, in devising strategic planning to expand business
in all external forces.
In addition to this is a cost effective tool, that can be utilised by any firm. Time and the
efforts are only two thing that act as cost for this tool. It provides deep understanding about
factors that can affects the function of business unit (Holmqvist and Ruiz, 2017). Along with this
it helps in exploring the opportunities that arises time to time due to changes in external factors.
All these are the benefits of PESTLE analysis.

TASK 3
With the help of PESTLE framework, analyse the external environment of selected firm.
TalkTalk Plc is a leading company of UK in connectivity services for this it is the
responsibility of their manager to operate their function in smooths and effective manner by
considering all factors that have ability to affects the function. In order to analyse all the factors
that can puts impacts on operation is discussed below in context of TalkTalk Plc company:
Political: It includes all these factors which are related with the political stability, level of
corruption, pricing regulatory mechanism for telecommunication, taxation policies and
incentives, product labelling and other requirements in telecommunication, changes in
government etc. can acts as political forces for the selected firm (Hillary, 2017). For instance the
changes in government Brexit, in this the UK was separated from the EU which puts a huge
impacts on function and operation of UK companies so ultimately the activities of TalkTalk
company is also affects this is because the environmental uncertainties is increases. So it become
important for this organisation to study the current trends as the changes in policies of
government may alter the government priorities for the development of company.
Economical : This factor include all these factors which are linked with the profit, sales,
demands and prices of products or service of company as well as the increase in inflation rate,
economic structure. It is basically divided into parts one is macro and another is micro. In which
the interest rate , taxation and inflation rate posses possibility to alter the function of company
which directly affects the financial condition of firm. In context of chosen firm, they need to
determine the GDP growth rate for pursue the long term growth strategies. The high rate of
inflation refers to the consumer posses ability to spend more on provided services or products
(Cherunilam, 2020). As well as the hight rate of unemployment serves the signals of availability
of surplus labour at comparatively lower wages price. So the hight inflation rate can influence
the profitability and international trade of company. In which the high rate of fluctuation rate of
local currency can be the reason of serious concern for TalkTalk company.
Social: It consist all factors related to preferences, trends, behaviours, lifestyle of
consumers as well as the increased rate of immigration or emigration. All these factor posses a
significant importance in influencing the function of company. For instance the change in
consumer behaviours influence the purchasing power of consumer in term of money. Which
directly affects the operation of TalkTalk Plc. For this company need to analyse the customers

trends and spending pattern by studying and forecasting the consumers power on the basis of
economic indicators (Ji-fan Ren and et.al., 2017)
Technological: Advancement in technology need to be opt by company in order to
increase the sales and profit margins of company. The new idea for innovation and creation are
become crucial for a firm because the people are most likely to buy new trendy and innovative
product and service. In context of chosen firm, TalkTalk they need to be carefully considered the
on going innovative technologies in order to stay ahead at competition. For this they have
opportunity to kept their eyes on analysing the 5G so that will create competition edge for other
rivalries. As well as the entrance in market where technologies advancement has not reached is
the good opportunity of selected firm in order to enhance the market shares of company.
Legal: The legal holds all these elements which are directly connected with the laws of
government policies, legislations, changes in law and many others. For example the changes in
employment wages law puts a huge impact on operation of company. As it changes the wag
policies of company like before introducing this changes the worker get minimum wages on per
day hour but after the changes the employee will get salary on hour basis. Which changes the
wages policies of company. So for TalkTalk company it become crucial to adopt all changes for
the smooth running of operation of enterprise.
Environmental: The changes in climate, increasing in pollution are the factors that need
to be take care by company in order to protects the environment weather. In which there are
various way by which company can save the environment or maintain the ecosystem such as by
recycling the waste products, by adopting renewable technologies, by producing friendly
products all these can helps company in maintain ecological system. In context of TalkTalk Plc,
if the weather condition or climates is changes the it will influence the business efficiency. For
example the extreme changes in weather condition can increase the cost of operation and forces
the TalkTalk company to makes value chain more flexible. These types of changes can influence
the spending patten of buyers and that will hamper company in order to change the market &
product strategies in order to accomplish the goal of company (Allmendinger and et.al., 2017).
It has been found that PESTLE model is a vital business tool that includes the detailed
analysis of all factors started from political to environmental and have ability to shape the
business function of company. Each factor are variable in nature and for that company need to be

flexible in nature for adopting changes easily. Along with it these factors have ability to
influence the strategies and decision making process of business unit such as TalkTalk Plc
CONCLUSION
From above report it has been analysed that it is an essential for a company to address all
external factor for performing all function in effective way and this can be carry out with the
help of PESTLE analysis. This tool holds certain benefits which can become beneficial for
company. Moreover, it is also important for company to follow a specific organisational
structure in order to accomplish the goal of firm in stipulated time period.

REFERENCE
Books & Journal
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