Importance of PESTEL Analysis for Business Organizations

“Organisations cannot be seen as independent of their environment. The environment is the source of all resources that an organization requires to create value and is where the customers who are willing to pay for the organisation’s products or services are found. It is therefore essential for an organisation to stay in tune withand adapt its strategy to its environment. A common tool for assessing the macro environment is the PESTEL analysis. PESTEL is an acronym that stands for political, economic, socio-cultural, technological, (physical) environmental, and legal factors. The main aim of the PESTEL analysis is to identify developments within these six dimensions that represent current (or future) opportunities for or threats to the organisation”.

ASSESSMENT:

Choose one company from the following list:

· Hilton Food Group PLC

· Jupiter Fund Management PLC

· Marshalls PLC

· Softcat PLC

· TalkTalk PLC

Task 1

Examine how your chosen company is governed and structured.

Task 2

Evaluate the importance of carrying out PESTEL analysis for an organisation

Task 3

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.

· You must illustrate your answers with relevant practical examples.

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 Executive summary

o Table of Contents

o Introduction

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.