Business Organisations and Environments: Tallink Report

This report provides a comprehensive analysis of Tallink, an Estonian shipping company operating in Northern Europe, with a focus on its potential expansion into Finland. It begins with an overview of Tallink's business, including its objectives, strategies, and financial and legal information. The main body then delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing Tallink's operations in Finland. The report further explores the competitive landscape using Porter's Five Forces to assess the company's market position, competitors, and potential strategies. The analysis aims to provide insights into Tallink's business environment and inform its decision-making processes for sustainable growth and market expansion. The report concludes with a summary of findings and references used throughout the analysis.

Business Organisations and
Environments in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Basic information of business............................................................................................1
PESTLE analysis for Tallink..................................................................................................4
3. Porter's five force ...............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: Financial position of Tallink in Finland economy....................................................3
Illustration 2: Economic condition of Tallink Group in different country's context.......................5
Illustration 3: Income statement of Tallink Group that may affected from its legal factors...........7
Illustration 4: Competitive Strategy ................................................................................................8

INTRODUCTION
Business environment consists of two major factors that has impact on the organisation
and also influence business activities, it includes internal and external factors. All companies
should have to require understanding about its environment to manage its organisational work
according to it (Barak, 2016). This report is based on the Tallink Company that is situated at
Tallinn, Estonia and provides transportation service at Northern Europe. The report aims to
expand their business in Finland which will help to raise customer base. This report covers
PESTLE analysis to discover the impact of major external factors like government and legal
changes. Further, it includes Porter Five Forces analysis to determine its target market situation
so that the organization can able to know about its competitors and make new strategies for this
purpose.
MAIN BODY
1. Basic information of business
Tallink is a public company situated in Estonian which is shipping company. Further,
Baltic sea cruiseferries and ropax ships are operated by this organisation from Estonia to
Finland, Estonia to Sweden, Latvia to Sweden and Finland to Sweden. It also owns a part of sea
rail. ESCO is a clearly dominate partner of organisation. On the other hand, the company collects
customer feedback after transportation facility, then work on it (Cavusgil and Knight 2015). At
the same time Inreko sold the Tallink Express hydrofoils to Linda Line, Estonia, and begun
operating the Vana Tallinn on Helsinki–Tallinn traffics under the name TH Ferries.
Objectives
 The objective of Tallink group is to satisfy customer.
 To be developed a wide rang of quality services.
 To be ensure cost efficient operation level.
 The main goals to diminish the environmental and especially air related pollution
There are some strategies use by Tallink group to improve shipping facility and
development market and to increase customer satisfaction level (Clegg, Kornberger and Pitsis,
2015). Such strategies are use in growth and development of the business and management can
able to achieve desired goals and objectives.
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 Most modern fleet: The fleet consist of roughly 430 ships in active service or reserve.
With the help of technology improve ships and other services. Wide route network: Transportation facility provided to customers enables them to cover
widely. These are effective for them to attract more customers. This firm understands the
need and requirement of customers and focus on delivering appropriate services (Crane
and Matten, 2016). In this context, they aim to cover wider area or route and in addition
to this their one of the strategy is to attract customers. It shows strong position on this
route and currently MS Silja Europa which one of the largest cruise ferries that is owned
and operated by cited firm, it covers most of the routes.
 Strong market share and brand awareness: Tallink Group complies fully with
international safety regulations and with the requirements of the ISO 14001
environmental management standard. Tallink group make frequent changes in their ships
that expand the shop areas and also modernize restaurant areas which helps in improving
the performance. This can be made possible through retail space development of their
brand with different approaches and in addition to this it helps to make customer more
friendly and comfortable (Kirton and Trebilcock, 2017). All such factors are help top
improve brand image and increase awareness. Tallink had a record the number of 9.4
million passenger this year. It shows that increase the value of passenger value, because
of good quality of customer services to be provided and increase the level of trust to
every passenger.
There are some other information about organisation working environment, which is beneficial
to find out actual market share and profit rate.
 Financial information: Financial performance of the Tallink, good has revenue around
EUR 261.2 MILLIONS and in second stage increase will be around 38.5 %. According
to Tallink, number of employees in this organisation are 7320 with the net income of
EUR 40 million in 2015. In this context, financial information are help to manage the
goods and increase current level of all the performance (Lasserre, 2017). It will make
positive change in the organisation and will manage its growth rate. Increase in the
percentage level and revenue must be according to the sales level over the period.
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Tallink Grupp transported number of rider, reaching nearly 9.8 million traveller for the
first instance in the company's past times. The figure of cargo units transported in 2017 was most
advanced ever in the establishment history, which reached to 365000 units of loading till the end
of the twelve months. Further, the number of workers in financial period of 2017 was 7311.
 Legal information : Legal information play a most important role for providing safety
and security for employees as well as customer. They also focus on law, which is used at
the time of transportation. Organisation offer transportation facility to 6 different routes.
In addition, each and every route follow own rules and legal responsibility (Mangan,
Lalwani and Lalwani, 2016). This will help to improve organisational growth and
manage resource on time. At the time to deal with different countries must be focused on
legal information and manage works. Leading service provider at Finland in this
specialised field cover all major areas of shipping law. Also, employees expert in
international ship finance to Tallink Grupp are given advice on aspects of marine
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Illustration 1: Financial position of Tallink in Finland economy
(Source – Financial Review, 2017)

insurance, such as cargo insurance, carriers liability insurance, and hull and machinery
insurance. Recently Tallink ship is adding more values, which help to provide proper
securities and that improve satisfaction level.
PESTLE analysis for Tallink
Tallink is an Estonian shipping business company that provides cruise and passenger
transport services in Northern Europe. It is founded in 1989 and derive its core services in
Maritime transportation industry. Although, it is a multinational organisation but its management
team wants to expand its business in other countries for earning more profits and achieve its
desired goals and objectives (Marquis and Raynard, 2015). In this context, there should be using
a special model that name is PESTLE analysis. It includes all external factors that can have
affect to its business and influence. By conducting it, management knows about external
environmental elements and use better techniques. It is useful in providing sufficient information
to its management department so that they will able to increase its organisational activities and
earn more profits. So for this reason, the PESTLE analysis is describes as follows:
Political factors Government policies, rules, trade regulations,
tax policies and entry mode legislation.
Economic Economic growth, inflation, exchange and
interest rates.
Legal Employment laws, competitive rules, product
and health & safety regulations.
Technological Changes in technologies, research and
development activity.
Environmental Behavior towards environment such as; climate
or weather disaster, in terms of supply and
demand of product, etc.
Social Distribution, health, growth rate, and focus on
safety.
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 Political Factor – this factor refers to the degree of government intervention in the nation
economy in Finland in demonstrating the impact on Tallink shipping business. In
Finland, the government may also impose different policies in conducting the economy.
Also, there are certain kinds of elements such as various laws, legal framework for
contract enforcement, pricing related regulations, taxes, rates, duties that lies on raw
material, salary & wage legislation, bureaucracy & interference in shipping industry by
laws and government.
These factors may have impact on the shipping business of Tallink Grupp and its overall
profit can reduce. So for this reason, its management team should consider all such factors and
make better strategies and plans for its business growth and development (Murray, Skene and
Haynes, 2017). In this context, they must employeed qualified employees who have sufficient
knowledge about government rules and regulations so that they can work effectively and their
productivity also greater.
 Economical Factors – these factors affect the economy and its performances which
further results in direct impact on the companies & it revenue. The Tallink company is a
multinational company and expansion in Finland may influence its working. There are
some economic factors such as taxation policies, inflation rate, economy trends, growth
of industry, international trading market, foreign exchange rates and many more. These
may have impact to this organisation and its profitability (Sassen, 2016). So for this
reason its management team should apply proper plans and strategies for increasing its
growth.
It has been observed that, Finland is strongly competitive in producing- metals, engineering,
telecommunications & electronic industries. Apart from this, the country is also works in
technologically advanced exports and it also relies on raw materials, machinery & energy for
manufactured goods.
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In this context, infrastructure of the company play an important role in its business
related activities. Management makes sure about its selling policies and attract more customers
in achievement of all desired targets and objectives. Further, demand of consumer and supply is
deal with its turnover so that the company should produce better quality products and provide the
best services.
 Social Factor – In Finland, there social environment is quite comprehensive because it
relates to the beliefs, attitudes and preferences of customer's. Social factor contains
different work ethic, lifestyle trends, cultural taboos, advertising, publicity of company,
several views by media etc. These have impact on the organisational sales and revenue. It
can affect to the buying behaviour of its potential customer in order to purchase
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Illustration 2: Economic condition of Tallink Group in different country's
context
(Source - AS TALLINK GRUPP STATISTICS FOR MAY 2018, 2018)

company's products and services (vom Brocke, Zelt and Schmiedel, 2016). So for this
reason, its marketing manager should consider all such elements and make several offers
for attracting more customers towards the company. In Finland, the unemployment rate is
high compare as to other countries. Therefore, the company should provide better wage
plan and incentives to its employees to earn more productivity in order to achieve its all
desired targets in its target market. They should make better policies to retain workers
and reduce labour turnover rate.
Changes in lifestyle It has been observed that, Finland has not
many changes in lifestyle & trend since the
country is counted as one of the modern
countries.
Educational levels Extremely fine education levels are available
in the country where the literacy is 100% for
both male and female.
Freedom of corruption It has been noticed that, in Finland fraud is
perceived as almost non existent.
 Technological Factor – In all over the world, technology is vast disrupting and growing
factor that affects to each and every sector. Tallink is a shipping business company and it
is also get affected from technological advancement (Wang and et.al., 2016). It includes
such as modifications in mobile or digital technology, automation, and research &
development. Finland is the centre point of Europe tech industry and it influences to the
several foreign investments. It relates to the innovations and awareness by customer so
that it is useful in possessing the market.
 Legal Factors – It is relates to the acts, laws, legislation and regulations that applied by
authority of government. In this context, such type of elements are includes such as
current and future international legislation, employment related laws, acts regarding
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protection to the customers, money laundering laws, competitive acts, patent & copyright
regulation, discrimination act and many more (Zoogah, Peng and Woldu, 2015).
These legal framework and institutions are protects to the rights of employees, customers,
organisation and also public so that there are not any activity of discrimination. So for this reason
management department of the organisation should understand all types of legal compliances and
make better plans for operating its business in competitive market. In this context, they must
aware of any change in legislation for securing its employee's and customer's rights. Such plans
are also useful in providing better services to its clients.
 Environmental Factors – It is related to the environmental and ecological changes in the
host country i.e. Finland. Further, these factors are associated with impact of surrounding
environment & the impact of ecological features, that can affect to the profitability of the
Tallink organisation. These factors are climate change, weather condition, water & air
pollution regulations in this shipping industry, waste management schemes, renewable
energy system etc. (Barak, 2016). These elements can affect to this company and hence,
Tallink's management team should aware of all such factors in order to develop in the
new market. Management should consider corporate social responsibility in order to
provide better services to its potential customers. Finland has different liability clauses
for its environmental disaster and chance event. There are a lot of European countries that
are providing healthy tax breaks for organisations so that it can operate in the new sector.
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Illustration 3: Income statement of Tallink Group that may affected from its legal factors
(Source – Income statement, 2018)

The PESTLE analysis on Finland states that the country's political power is vested in unicameral
parliament and its population is over 5 million. Further, it is highly competitive various
industries such as; electronic, metals, etc. Moreover, the overall current position of Finland is
greatly industrialised, mainly free market, and with per capita of France, UK, etc.
3. Porter's five force
This model will help to guide in managing organisation work, employees and customer.
In addition to this it also maintains level of customer that depend on promotional activity of
organisation (Porter five forces, 2017).
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Illustration 4: Competitive Strategy
(source: Harbor Freight Tools, 2017)