Understanding the business environment is a significant factor for business organizations nowadays. Schroders Plc is the chosen organization for this report. Schroders plc is a multinational and British investment management organization which was founded in 1804 by John Henry (Johann Heinrich Schröder). The organizational structure of Schroders Plc is a hierarchical structure. This is because Schroders Plc is mainly governed by the board of directors. The board of directors is mainly appointed by its different shareholders and the board of members is liable for the management as well as corporate governance of this business organization. This organization focuses on the PESTLE analysis in its business to increase the business profits. Laws of a country enforces mainly regarding business including contract law because they direct what Schroders Plc is and is not allowable to do.
The economic system of a country where Schroders Plc is operating can affect its business. In addition, society class distribution of the people is the significant issue for Schroders Plc that would be not able to encourage the premium products to the general public if most of the society people were from the low class. If Schroders meets the new technology which is achieving business popularity in the investment industry so this is significant to assess business popularity’s level. The weather condition has a great impact on Schroders Plc’s capability to manage transportation for the resources as well as products. Different discrimination laws are set by the government to protect employees by ensuring that each of the employees in Schroders is fairly treated fairly with the same opportunities in spite of age, gender, ethnicity, disability, sexual orientation and religion.
Table of Contents
2.0 Main Body.
2.1 Examine how Schroders is governed and structured.
Overview of Schroders, its structure and its management
Governance of Schroders.
Relationship between the board of directors and stakeholders.
2.2 Evaluate the importance of carrying out PESTEL analysis for an organization.
PESTLE analysis tool and its importance to the organization.
Evaluate the importance for organizations to carry out PESTEL analysis.
2.3 Use the PESTEL framework to analyze the external environment of Schroders Plc.
According to Morrison (2017), business environment means the combination of both internal and external factors which influence the operating situation of a business organization significantly. By analyzing the business environment properly can allow the business organizations and the employees of those business organizations to understand the business context where they work (Needle, 2015). In addition, this also enables the business organizations to develop different business strategies. Thus, understanding the business environment is a significant factor for business organizations nowadays. The chosen organization for this report is Schroders Plc where is a British investment management company. This report mainly includes three key topics. First of all, this report examines how Schroders is governed and structured. Secondly, this report evaluates the importance of PESTLE analysis for a business organization. Thirdly, this report uses the PESTLE framework to analyze the external environment of Schroders.
2.0 Main Body
2.1 Examine how Schroders is governed and structured
Schroders Plc is the chosen organization for this report. The overview, organizational structure and management of Schroders are explained as follows:
Overview of Schroders, its structure and its management
Overview including its history: Schroders plc is a multinational and British investment management organization which was founded in 1804 by John Henry (Johann Heinrich Schröder). The headquarters of this company is located in the city of London. Schroders Plc manages the investments for different business organizations and their individuals to support them achieve the financial goals for the future (Schroders Annual Report, 2018). This organization has more than 5,000 employees and this is the international organization that operates its business in 32 locations around the world including America, Europe, the Middle East, Africa and Asia.
The history of Schroders started in 1804 when John Henry (Johann Heinrich Schröder) was the partner in a London-based organization of his brother named John Frederick (Johann Friedrich). J. Henry Schröder & Co. established in 1818 in London (Schroders, 2019). At the time of the American Civil War, Schroders dispensed about £3m bonds for Confederacy in 1863. The key event of this business development includes the establishment of J. Henry Schroder Banking Corporation (also known as (Schrobanco) as the commercial bank in 1923 in New York. In 1959, after public offering of shares in J. Henry Schroder & Co. Ltd, this organization took place on London Stock Exchange. Schroders played the leading role in privatizations that is mainly carried out by the government of the UK in the 1980s and this organization grew radically under Winfried Bischoff (Schroders Annual Report, 2018).
Organizational structure: Organizational structure refers to the system which summarizes how different activities are managed to gain the organizational goals and objectives (Meyer, 2016). The organizational structure of Schroders Plc is a hierarchical structure. This is because Schroders Plc is mainly governed by the board of directors (Schroders Annual Report, 2018).
Management: A business organization is mainly run as well as managed by its board of directors (Boddy, 2016). In the case of Schroders, the board of directors is mainly appointed by its different shareholders and the board of members is liable for the management as well as corporate governance of this business organization (Schroders Annual Report, 2018). In addition, directors of Schroders employ officers who are accountable to manage different operations of this business organization. As Schroders is a UK-based company and an international organization, this business organization is managed both in national and international ways. To manage its business operations nationally it maintains different rules and regulations and to manage its business operations internationally it focuses on the rules and regulations of different countries…………………….