Analysis of Travis Perkins plc Essay

PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are

The PEST analysis helps to explain the critical factors in the organization's external environment. The factors include political, economic, social and technological. For Myer, these forces combine with the internal factors, and other external factors like competition. The Australian consumer goods retail market is worth $121 billion (IBISWorld, 2012) but is heavily fragmented. Myer is the third-largest company in the industry behind David Jones and Harvey Norman, but with $3.158 billion in sales holds just 2.6% market share (Myer 2011 Annual Report). This implies that competition is only one of many factors that can contribute to the company's results. This PEST analysis will help to identify the other major factors.

As a result, the company focuses on its target markets and effectively delivers on its value proposition to satisfy its customer’s needs, wants, and demands.

All companies and organisations are affected by external influences intensively which affects factors as reputation and the sales of the company. External influences have a negative impact as well as negative impact. This essay will establish to assess at the external business environment of Debenhams. PEST analysis tool will be used in order to complete the assessment efficiently.

Macro environment comprises external forces that organisation cannot directly control, instead organisation need to manage their macro environment in a way that benefits them ("The Macro Environment & Pest Analysis", 2016). The PESTLE analysis is the most widely recognized approach for considering the external business environment (Gupta, 2013). PESTLE analysis stands for Political, Economic, Social, and Technological, Legal and environmental analysis and describe a framework of macro environmental factors utilized as a part of the environmental scanning component of strategic management. Generally, all the PESTLE factors might not important for all types of industry its depends up industry nature or size. This PESTLE analysis is based on Accor Hotels in Australia which is a famous and globally recognise hospitality brand.

Our customers in Travis Perkins business are on average 45% sole traders, 38% limited companies and 7% self-builders.

When conducting an analysis of external environment, PESTEL model is a helpful tool to analyze and assess the external factors (political, economic, social and technological, environmental, and legal) that impact the company’s strategy and operations (Jurevicius, 2013). Below is Raytheon’s PESTEL analysis. See Appendix A for a full list of external contributing factors affecting A&D industry.

Description of the technique PESTLE analysis provides a framework for investigating and analysing the external environment for an organisation. The framework identifies six key areas that should be considered when attempting to identify the sources of change. These six areas are:

PESTLE analysis is very useful for studying the environment in which a company operates and accessing external factors influencing the company in the markets it operates. PESTLE is the acronym for the following categories of investigation: political, economic, sociological, technological, legal and environmental (Cheverton, 2004; Partridge and Sinclair-Hunt, 2006).

By PEST analysis we can estimate the external environment of the company. PEST analysis is used to make out the business growth, positions, size, economics, politics and the development or decline drift of the market.

Any changes in macro environment will inevitably influence on the company. PESTLE is a framework to estimate external forces (see Table 1)

The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).

PESTEL analysis is a method used to study macroeconomics - the macroeconomic environment of an enterprise. Otherwise, it is called the general segmentation of the environment. It defines the basic spheres of the environment, which are areas that have a crucial impact on the functioning of the organization. Also marks the future strategy of the organization through an in-depth analysis.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If

In order to assess the effectiveness and challenges associated with a company, it is important to evaluate its existing environment. PESTEL analysis is hence being used to examine the external environment of the firm.