Why is it important for organisations to carry out PESTEL analysis?

“A common tool of analysis of the business environment is the PESTEL analysis. PESTEL stands for political, economic, social-cultural, technological and environmental dimensions. The dimensions of the environment are interrelated. In so far as the PESTEL takes the dimensions separately, it is a blunt tool for analysis” (Morrison, 2020).

Choose one company from the following list:

• Pearson PLC
• Royal Bank of Scotland PLC
• Rightmove PLC
• Sanne Group PLC
• National Express PLC

Examine how your chosen company is governed and structured.

Evaluate the importance of carrying out PESTEL analysis for an organisation.

Use the PESTEL framework to analyse the external environment of your chosen company.

NOTE:

Presentation, referencing and grammar.

ASSESSMENT CRITERIA:

1.Knowledge and understanding of how the organisation is structured, governed and managed.

2.Abilities to appreciate the key external environmental constraints and opportunities on a business.

• You must give a general overview of your chosen company, including its history, its organisational structure, and how it is governed. For example, demonstrate that you have conducted some research on the history of the company. How many directors are on the Board, and how many of these are executive and non-executive directors? Who is the Chairperson of the organisation, and when was he/she appointed to the Board?
• Evaluate the importance of PESTEL analysis for a business organisation. Why is it important for organisations to carry out PESTEL analysis?
• Make a list of the Political, Economic, Social, Technological, Environmental and Legal (PESTEL) factors that influence the environment of your chosen company, and discuss how these factors impact your chosen company.

In addition to the recommended textbook, you are expected to read other textbooks and journals for your research.  Further Details:

• This assignment must be completed individually as a management report, following the appropriate academic structure: o

You must illustrate your answers with relevant practical examples.

o Main body

• The word limit for this assignment is 2500 words. This word limit does not include the executive summary, tables, diagrams, appendices or references.
• Assignment submissions will be made via Turnitin. Please ensure you have your user login and password well before the submission date.
• If you share your work or, parts of your work, with another student this is an academic offence (collusion) and will result in a fail grade.
• You must use Harvard Referencing (Citations in-text) to acknowledge your sources of information and provide a reference list (and bibliography where appropriate). Failure to do this is an academic offence and will result in a fail grade.
• Any bibliography provided must be included as an appendix.
• Marks will be awarded for the professionalism of the report.

Business Environment – Interim Assessment (Additional Guidance)

Task 1. Describe the structure of the company, its management and how it is governed. –

– An overview of your chosen company including its history. (10 marks)

– Describe the organisational structure of your chosen company.

• –  How many directors are on the Board?
• –  How many of these are executive and non-executive directors?
• –  Who is the Chairperson of the company, and who is the CEO.?
• –  When were they elected and appointed? (20 marks)

Task 2. Evaluate the importance of PESTEL analysis for a

business organisation. (This task is not about your chosen company). – Why is it important for organisations to carry out PESTEL analysis?

Task 3. Use the PESTEL framework to analyse the external environment of your chosen company.

(A)Make a list of the Political, Economic, Social, Technological, Environmental and Legal (PESTEL) factors that influence the environment of your chosen company

Examples are:

– Political – Change of government

– Economic – High rate of inflation

– Social – Increased rate of immigration or

emigration, changes in behaviours

– Technological – Automation

– Environmental – Climate

– Legal – Changes in law.

(B) Apply the PESTEL factors you have listed to your chosen company. Give relevant practical examples to illustrate your points (28 marks)

4. Presentation, referencing and grammar (10 marks) Total (100 marks) – 2500 words