“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:
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.
Presentation, referencing and grammar.
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.
In addition to the recommended textbook, you are expected to read other textbooks and journals for your research. Further Details:
You must illustrate your answers with relevant practical examples.
o Main body
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.
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
– 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)