This paper outlines the benefits of environment influence on business. The paper specifically discusses about the FirstGroup Plc and environment influence of PESTEL analysis. what is the impact on the business of the stakeholder such as, Governments, customers and communities. The paper concludes the FirstGroup Plc strategy to overcome the demand of the customers risen above the pack because of its extremely ethical and highly exposed business practices, both in regard to its sourcing and its treatment of its employee. Here I have use the case study of FirstGroup and some web site to have clear idea about the company.
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The operation of FirstGroup Plc is make good strategy to control the external influence factors. PESTLE Analysis is an analyzing of the external influence factor of the business environment. It show the big picture of the company in which area they are working. These are ingredients which are over and over again outside the control or influence of a company, and that is why it is very significant to be aware of them to compact with in the approach of the business. First Group is the leading face of the transportation service in the UK. So here we are reviewing external factors which have influence on internal environment of the business for understanding market growth or decline, in comparable to the situation, possible to lead to good direction for transportation business. The number of employee working with FirstGroup is more than 137,000 in the UK and the USA. Total numbers of people using the rail service are 275 million a year. There are leading transportation service providers in UK. They also provide school transportation service in USA to more than 4 million students a day.
What is PESTEL?
Now ear day’s the business is a not only influence by the internal factor but the external factor also play a more importance role while running a business. PESTEL is mainly use to examine the external environment that has an impact on the business. The main point of the PESTEL is to recognize the major environmental tools by considering external factors that business has to face. The PESTLE covers all the external influences factors affecting a business. PESTLE analysis one of the useful tool which help the business to have very close look of large image of the environment in which we are functioning the business, and what are the new probabilities and what harm a business has to face. By knowing more about the environment surrounding the business in which we have to function, it is an external influence to the business or sector. One can also take benefit of the new technology and reduce the harm. PESTEL stand for Political, Economic, Social, technological, Environment, Legal analysing tools has more major impact on the business. So the business is trying to identify the external influence that has an effect on the operation of the business. Here in this case of the First Group is one the good example of PESTEL analysis. PESTEL is one type of a business tool where all the letters of the word itself describes what impact it would have on the business environment. PESTLE analysing tool is use for knowing the risk which is linked with market up’s and down’s , and also with the situation, prospective and path of a business or industry. The PESTLE Analysis is generally use as point of reference tool, see to the area where the company stand or what is demand of product in the situation, which carries more impotence outside the business and what effect will it have on the oppression, what is going inside an business. It is describe in web site that “A PESTLE analysis is a business measurement tool, looking at factors external to the organization. It is often used within a strategic SWOT analysis Strengths, Weaknesses, Opportunities and Threats analysis” (Morrison, 2010).
Links and factors affecting business
There is a good example of influences factor use in the case study of First Group. The Political elements mainly is that, the people should use the public transport more than their personal cars and vehicle to reducing CO2 emissions from the environment which one of the major issue faced by the UK government. So for that FirstGroup need to provide safe and dependable services that will give more confidence to the people for using their bus and trains. If more people decide to make use of the public transportation service then their cars and personal vehicle it would automatically helps the environment.
The Legal factor which also has an effect on the FirstGroup is mostly link with the political factor. Most of the time Legal ingredients are separated from the political ingredients mostly because of the growing legal influences external in the national political system, such as European and regional legislation (Strategy Survival Guide)
All the legal needs of the UK government is easily full by FirstGroup, they also try to give more than their best and more than the demand of law. For example, they are trying to take steps which are related to take action to reduce CO2 emissions from their vehicle, to mach Europe-wide standards in advance from the government’s 2010 targets. Transport companies should also buy carbon credits to reduce their CO2emissions. In advance they have built a budget for this.
Environmental & Social
Even environmental and social link in this case study of PESTLE Analysis factors. For the example of CO2 emissions, is an Environmental ingredient which has Political & Legal influence, it has an Social impact in the UK culture where the customer is more Green consumers they like to use the goods and services which are more eco-friendly which also have less impact on the environment study case added.
Political, Social & Technological
Another example is that FirstGroup has invested huge amount to meet up the government objectives for the condition of low down floor so it easy to get in bus for wheelchair users and pushchair responsive in buses which is the most appropriate technology for aged & handicapped persons, so we can see the new technology use for them by the FirstGroup it also demands by Political influence to satisfy Social needs.
An Economics & A Socials
“Economic factors include changes in demand, like the demand for safer school transport has led to research into the introduction of Yellow Buses, based on the US experience. Another economic factor is high fuel taxation. This encourages people to use public transport more. These are customers demands a Social factor influence the Economic one.” (Managing external influences)
Benefit of working with government
The benefit to work very closely with government is that they will encourage people to use the transportation service provide by FirstGroup to reduce CO2 emission in the environment which is one of the step to make environment eco-friendly. It is said that we are responsible to protect an environment. Working with government is not only the reason to make a profit but it also provides a good service to people. The strategy use by FirstGroup is to improve the fuel efficiency in their vehicles, buy new vehicles which are fuel efficient green vehicles, use of other fuel resource like biodiesel, also by giving training to the divers and use of new technology to keep an eye on performance of the divers. Their main aim is to reduce the CO2 emission form their bus up to 25% and from rails up to 20 % by end of 2020. They also make easy for the people how wish to change from the car to public transport by give them schemes in Parking & Ride schemes. It is very difficult to find a parking space in a big city like London. That data itself show the importance of transportation services in the case study. That there is 8% rise in usage of the services to 1.2 billion people have use transportation last year. The FirstGroup has increased their reputation with government and they also has vision like this ‘transform travel’, they also enlarged their network with the government circles by the buses were used during the Olympic Committee’s visit in February 2005 as well as the knowledge to win expectations of new bus contracts to set free hydrogen fuel transport to the public. Their driver does therefore make good business sense.
First Response toward the Changes in demand
First Group plc is the largest, convenient and safer transportation service in the UK. They are becoming popular because the change that has been made in response to customer and government in the First group. When we analyzed the change made by the First then that gives 100% satisfaction to us. Here I am going to represent some of the change made by the First bus services. The FirstGroup has the potential and resources that allow them to connect their actions to create economic importance and possibly to be ready for action and its reward. The strengths of their business is that they have an ability to create a unique products and services according to demand of the consumers, they believe that customer services should be of high levels. Their strengths as a good business unit are their culture, its employment and teaching method, or the quality of its managers. The change in transportation service in UK is due to the political change and new change in the policy of the government in transportation business. FirstGroup has invested heavily in new technologies and providing buses that lower the floor for easy entry for the older and handicap people
First is operating throughout UK. The state show that UK has more than 62,113,205 by 2010, and it has been increasing dramatically. In the beginning, the government was worried about the population and usages of private cars by the people that are reasoning Co2 emission was increased and made climate change. However, in 1980, when they made transport service private than First has made a good Climate change Strategy for providing more efficient, novel and sustainable bus service to the people so they like to use more bus service than own cars. FirstGroup main goal is to decrease Co2 emission by 25% till 2020 that is reasoning they implemented different strategy like improving the fuel efficiency, using biodiesel, new technology for driver performance.
In order to exits in the market, everyone has to the response to change, which needs to meet customer’s demands. In order to meet customer response, FirstGroup works very closely with the Neath Port Talbat Council for improving the service. Second most striking features of a first group were that they have started the yellow school transportation services. They have designed special pilot service to the students where students can feel safe and friendly in the bus. Additionally, first has an increased Vehicle safety issue like pad seating, included seat belts, additional escape window and CCTV camera. Another economical response done by First was that in major cities like London, FirstGroup made public transportation so easily by providing park and ride schemes to avoid parking problems and high taxation on fuel paid by using own car.
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Social and technological change
In the UK, people are believed that old people are assets of the cultures, so they need to have special care and attention all the time so First has lunched citizen pass where elderly people do not need to pay any money for their transportation. Mostly the old people like to use FirstGroup bus service because they provide easy and safe service.
The First are very responsive to new technology. The new technological use by FirstGroup is to low down the floor for the old and handicap people so that they can easy enter in the bus. E.g. as see this daily while using the treanslink service that bus derive low down the floor so that handicap people can come in bus. They provide good convenience service for handicap and old people. Moreover, FirstGroup provide good transportation environment such as new road layout and bus shelters.
Environmental and Legal Factors change
High CO2 emission is the biggest problems in the UK that is reasoning climate has been changed drastically so first has developed Climate Change Strategy. Furthermore, many of the legal laws have been changed for transportation because of certain issues. The first has prepared all buses that meet all required by new laws. Even they have been preparing a budget to this.
Overall, First group has been responding all time to meet customer and government demand. They have made a lot of change during its whole journey, so they can survive in this competitive market and give 100% satisfaction to all their stakeholders.
Evaluation of Effectiveness
FirstGroup provide dependable, secure, novel and sustainable transport service. When we go through change that has done by First group then we will come to know that they are always targeting customer’s demand and satisfaction, and they respond quickly to change that is the reason that is successful. When we observe the changes made by First group then we will realize that every time they come up with new strategy and innovation to any type of issues like.
Climate Change Strategy
Increasing in the CO2 emission, they adopted Climate Change strategy in which they encourage the people to use more bus or rail service by giving more convenient, reliable and safe service.
Yellow School Transportation and Pilot Service
By providing the yellow school transportation service, they make up student mind to use more school bus service where they can feel the good, reliable and safe way to reach to school and home every day. Also they are focusing more on the safety issue, so they implemented new things like padded seating, seat belts and CCTV.
People are more aware about global warming and environmental issues so Green consumers are preferring to use bus and rail services than air or big cars so First has designed their service in the such ways that they can reach to each corner and give more convenient services to all people.
Over all, first has made lot of changes to improve their services in order to meet customer and government demands. First group not only takes care about transportation issues, but they do care about social and environmental issues they are reasoning they are a leader in the transportation services.
SWOT analysis is use to analysis a business sector and whereas a PESTLE analysis the current market demand and situation, mainly demonstrating the growth or the fail back and by this means they try to find out way for demand in market, business possible, and also find out way of market possible. FirstGroup analyses the threats identify the risks take an excellent choose to flop them to an opportunities. Planning scenarios for the future take no chance make FirstGroup a Blue-chip firm in London stokes market. Many factors where First’s control. Change can from this factor- Political, Economic, Social, Technological, Legal and Environmental .The challenge now turned threats into opportunities by looking at feedback of the consumers and to the external influences of the business in order give the consumers best service to their value. FirstGroup make good strategy for the demand of changing environment.
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