Analisis Interno Y Externo Empresarial De Un Broker De Bolsa

Post Graduate Diploma in Strategic Management Level 7

Business environmental Analysis

Course Leader: Dr. Vanessa Scholes

STUDENT: MSC. ENG DIETRICH TRUCHSESS R

STUDENT ID: 3803477

AUCKLAND, MARCH 2013

NZMA TUTOR JENNIFER NAEEN / MARTIN SZECO

MAY 9TH 2013

BUSINESS ENVIRONMENT ANALYSIS OF A STOCK MARKET COMPANY

1. ABSTRACT

At the present time the company I represent “NZ Investors Ltd” as any brokerage firm is looking for new clients in the stock exchange worldwide, in order to demonstrate leadership, being a cutting edge with aggressive policies and giving confidence to all its customers. It is necessary to develop tools to analyze the business environment of these companies the clients will trade. This analysis based on internal & external point of view. In this case, one of the overseas clients is trying to invest in Beca Construction (BECA), but it is necessary first to analyze its business environment to achieve a satisfactory inversion. The client is considering to analyze a 10 years long term investment. To achieve this, the firm I represent, will develop a tool to analyze the competitive business environment of BECA construction , which in the future, I will call it only BECA, its internal and external issues along with its competitive advantage. By combining PESTEL, SWOT frameworks, I will create a new model called PESTELI-TOWS and the competitive advantage will be analyzed using PORTER framework. Once the model summarizes the external & internal issues of Beca Construction, I will determine its competitive business environment for the 10 years. I will determine all issues of the new model such as political, economic, environmental, industrial, threats, weakness, opportunities and the consequence of these elements in relation with BECA and its possible consequences. This will allow the client from overseas, to visualize the strategic position of the organization, orienting efforts and determining if an investment is achievable, producing effectiveness & efficiency, in the performance of its financial activities. In this sense, the study will give the client information to develop a strategic investment with BECA knowing if it is worthy or not to invest in the mean time.

1. QUESTIONING TO DEVELOP THE BUSINESS MODEL.

A stock broker is an independent organization that offers all the necessary facilities for its members, following the mandates of their customers, enters orders and conducts negotiations for buying and selling securities. Understanding by securities, shares of companies, raw materials such as gold, silver, oil, corn, coal and anything that could be traded where it could be a profit. To explain what these instruments consist of and how to predict the behavior of such securities, is not the intension of this article because it is for organizations with a minimum knowledge of the stock market trading. New Zealand Investors Ltd NZI, the company I represent, has clients who invests in shares around the world, and it compulsory to provide financial advice to them. To perform this task, it is vital to analyze the business environment of many companies to predict if shares will rise or consequently will go down. Based on the above on question comes to stage: How does NZI can provide more confidence to its oversea client along with more business opportunities in order to invest in BECA's shares? The answer to this issue is to develop a tool which analyzes the business context of BECA in order for the client to trade its shares in the NZ stock market. As known the stock market is a world highly dynamic and incredibly unpredictable, so, the question is what best tool adapts to the stock market trading environment? No tool fits perfectly when it is analyzed BECA's business environment, and to answer this questions it is essential to find a theory, or a combination of different theories that evaluate its dynamic environment. In this sense, it is compulsory to analyze the internal view in order to develop a strategy within a ten years period. This is the time where the mission needs to be accomplished. Finally, it is necessary to analyze BECA’s closest competitors, in order to be a step ahead and always ready, trying to avoid future rivalry between all market forces.

As seen, all theories have limitations, but in this case, PEST would be one who best adapts to the stock market conditions because it adapts perfectly to the external issues that impact shares. To strengthen PESTEL's deficiencies, I will include the missing issues to perform a complete analysis. The question is: What are these missing issues?. PESTEL only considers external issues leaving outside the internal ones. This is the answer why this framework needs to be complemented with other framework who considers internal issues. What additional model then would it be used to consider these internal issues? SWOT is the model who best adapts to the internal issues because it analyzes the company, looking for the company's strengths and weaknesses and these are internal issues. What is the scope of PESTEL framework then? The strategic review process usually begins with the study of more common factors that affect the environment. The PEST model (short for Political factors, Economic, Social and Technological) analyzes the context of a company or business unit. (ALVAREZ, 2009).

Now, PEST & SWOT together, consider internal & external issues of the business environment of an organization. The question is: how to consider the level of competency of the company? In other words, how can I included in the new model? To analyze the level of competency, it is advantageous to include the PORTER framework mixed with the other two theories because it considers the business competitiveness strategies in a market (Investing Answers, 2013). In this sense, I may ask, how to assemble all these three theories in order to make the analysis in an easy way? Using a similar procedure as SWOT it is prudent to build a matrix which will be discussed in details later, in order to consider all issues in one framework. This makes easier its application by the analyst, as well as, avoids its dependency on the experience of the manager, giving the procedure a more objective criteria.

2. HISTORY

The history of this strategic planning tool is imprecise. The first mention of PEST tool is in 1967, by Francis Aguilar in 1967. He is the one who accredits with the origin of this strategic analytical approach. Aguilar talked about ETPS, which is the acronym of Economic, Technological, Political, and Social environment. They are the four factors that must be scanned to look for analytical grounds, to judge the strategic plans. However later, Arnold Brown, emphasized these same four environmental factors with the only difference that he labeled it as STEP. Referring to this acronym to each, of the four environmental factors, for Strategic Trend Evaluation Process, as well. Today, the common way to use the name for this external environment scanning procedure is PEST although it is also popular in its extended form as PESTLE (Thakur, Richter, 2010).

3. PAST EXAMPLES

Here is an example of a PESTEL analysis in a stock trading broker name Charles Stanley stockbroker and its political, economic, social, technology, environmental and legal issues are at the end of this report in the appendix part. However, the "...economic and environmental factors are currently having a remarkable impact on Charles Stanley firm due to the economic downturn. This highlights the importance of effective human resource management, leadership and ongoing communication to increase employee motivation at this tough time. Promoting equality, diversity and a work life balance... are arguably more pertinent now than ever before. This can contribute to getting the most from the workforce when resources are scarce, and the future is uncertain" (123HelpMe.com, 2013, para6).

4. QUESTIONING & CRITIQUE OF THE MODEL

Going forward with the analysis, the question is: what are the main criticisms of using PEST? According to (ALVAREZ, 2009), the explanation about how PEST will affect each of the factors to the performance of the company is exceptionally strong and bases on the analyst. Such analyst must possesses information about corporate strategy, environmental factors and their likely impact. Moreover, the social and political factors involved in PEST, sometimes shows unpredictable dynamic behavior. Therefore, these factors should be monitored continuously. It is complex to implement PEST model in highly diversified companies since the impacts are remarkably different in each business unit and it is difficult to determine their relationship. For example in 2002, the recession hit hard at Procter & Gamble, which saw a collapse in sales of its premium shampoo, Pantene. The Value Brand, on the contrary, increased sales of its economy brand, Plus Belle. Thus, simultaneously, the same factor was destructive and beneficial for both companies in the same industry. While it may seem above that companies are at the mercy of factors PEST model, they are also able to influence certain political, economic, social and technological changes with their actions.

PEST takes in consideration external issues but does not consider the internal ones; the question then is the following: Can PEST adapt to the business environment of an organization as BECA? Is PEST related to this case of study? As seen, PEST does not considerate internal issues of the organization, so it is necessary to complement it with any other structure such as SWOT, in order to complete the environmental analysis. According to (CHAPMAN, 2004), PEST review is a tool to understand the position, the potential and the direction of a business. The PEST is a framework to analyze situations; PEST factors deliverables are essentially external, and it is advisable to perform such analysis by combining it with the SWOT analysis, which bases on internal factors (strengths and weaknesses) and external factors (opportunities and threats). The PEST measures the market; the SWOT measures a business unit proposal or an idea.

Another aspect not considered by PEST and influencing in a negative way, is that this model does not have any method to develop new strategies; instead, it only focuses in evaluating the external aspects affecting the organization without giving any solution on how to deal with this situation. On the other hand, SWOT thru the SWOT matrix offers a simple and an easy way to develop new strategies, and it will be considered when I start the proposal of my own method. Continuing with the analysis, how to analyze the business environment of an organization as BECA instead, of a picture taken by these methods of analysis? As PEST review does not consider the organization's processes, the only way it has to analyze the environment is to select elements of a theory with a dynamic control of the situation. This can be obtained using SWOT framework, which thru monitoring, can manage the need of dynamism of PEST. In this sense thru a combination of both theories all objectives set by the organization can be met, controlling and monitoring in order to verify the processes compliance. In this way, the business analysis will have a dynamic nature making it more pragmatic and useful.

In the wake of the above, it is PEST reliable when there are many industries to consider in the stock market? The answer to this question is extremely complex because although shares are influenced by external issues, there are also many technical issues that are vital to analyze, when someone is investing in shares. In this sense, one industry can affect others, and both may affect the index which will influence of the whole market.

Since January 2012, the NYSE & NASDAQ had a bullish or an upward trend. At the present time, this trend has reached the 2009 peak height, which means that a fall could be expected in any moment; however, it also could be a change in such trend, which means that, the shares can remain in a rise to another maximum. To learn a little, the shares’ behavior, it is appropriate to say that it is cyclic, (DLG TRADING, 2012), this means that, if a share reaches a peak and for any reason it fells, the most probably is that it also reaches its peak again in the next cycle or be close to get it. In this month, NYSE & NASDAQ indexes are experimenting a real increase which means that all transactions must be “long” movements or with an upward trend.

On the other hand, NZI needs to seek for leadership in the analysis of the business environment and another question is again on stage: How to analyze BECA's business environment for the next 10 years and what to include in this research in order the client to trade reliably? From the external point of view, it is necessary to provide live and reliable information of BECA's business environment, this information must be analyzed with the possible consequences considering the related industry in order to avoid the less possible decline in the shares. From the internal point of view, it is necessary to provide reliable information of BECA's performance to analyze if its performance is effective. Based on the above, the best tool who adapts to these requirements is PEST because, it considers most of the issues BECA requires. However the internal affairs of the business environment for BECA's customers are not covered with PEST, and this is a barrier that needs to be considered, in order to develop a tool who analyses the dynamism and volatility of its shares within the NZ market and its clients.

From the technical view, and knowing that the market can affect the behavior of shares, as well as other markets such as the NZ stock market, there is a problem to consider. What are the most stable stock markets around the world so that the client can invest with confidence? At the present time, United States is one of the most reliable market to invest in shares and options. Markets such as NYSE and NASDAQ represent the 90% of the global trading. (WIKIPEDIA, 2013).

Generally, NASDAQ and NYSE are markets with a similar behavior in their curves. It means that, if there is an upward in NASDAQ index, the most probably, is that the NYSE index, and markets such as NZX index, NIKKEI and others, usually will have an upward trend, as well. This is not an invariable rule because the markets are volatile. However, they usually perform this behavior. This relative stability means that markets are usually stables and a safe way to earn money to someone with the knowledge in trading. But is the NZ market a stable enough to trade BECA's shares? In general, NZ stock market is remarkably small, and shares do not change much, however; it generally maintains the principal's market trends. To continue with this issue, another question is on stage, what are the potential obstacles of investing in NZ market? Investing in NZ is extremely easy, however, trades have to be made through a NZ broker like NZ Investors Ltd which is the licensed company in charge of trading the company's shares according to market regulation's.

5. DEVELOPMENT OF NEW MODEL

Now that PESTEL is the system to use, it is necessary to manage the volatility of the share market to define the criteria of the analysis. To consider the external issues, it is mandatory to consider all factors of PEST structure such as political, economic, social, technological, adding also environmental, and legal factors. There is one additional factor that I will consider it must be also added. This is the Industry factor. The current configuration now would look like PESTELI. With PESTELI framework so far, we can then analyze all external factors included in its business environment which in BECA's case will be the construction industry. The question is then how to analyze the internal issues of BECA in order to have a 10 years term goal. How can it be considered these internal issues? To consider internal issues, it is essential to find out what are BECA's weakness & strength along with opportunities & threats to give a dynamic nature to the analysis. Thus, adding PESTEL and SWOT the structure would look like PESTELI-TOWS. Now to analyze the level of competency it is necessary to incorporate Porter framework. How can it be done? To incorporate porter, It is necessary to identify the attractiveness of an industry taking in consideration the threats of entry, threats of substitutes, the power of buyers, the power of suppliers and the rivalry between all competitors of such industry (Johnson, Whittington, Scholes, 2011).

The important aspect of the new PESTELI-TOWS-PORTER framework is not how to structure it but to find out about the implication & consequences of all factors affecting BECA. This implication will be analyzed in the next point.

Summarizing the model would then be the short for Political, Economic, Social, Technological, Environmental, Legal, and Industrial factors for PEST, Threats, Opportunities, Weakness and Strength factors from the SWOT framework and bargain of customers, threats of new entrants, threats of substitutes products, bargain of suppliers and rivalry between the industry for PORTER. The model now has a dynamic character considering the external environment along with the internal. The new model will be called PESTELI-TOWS-PORTER, and it is as followed

Source (TRUCHSESS, 2013)

Once determined all factors, it is necessary to make a matrix which it is in the next chart

PESTELI-TOWS MATRIX

Resource TRUCHSESS, 2013

Crossing the horizontal issues with the verticals, it will be possible to estimate the new potential strategies affecting the organization for the next 10 years. This will provide a clear view of the environment and it will indicate where the organization is heading. At this stage, the client will be able to analyze if it is worthy to invest in BECA or not. Of course to achieve effectiveness, a continuous monitoring process is critical. In the Appendix, there is a layout with all the issues that should be taken in consideration when an analysis of this type is performed with the new model. One of the issues that must be considered is that this model must be comprehensible, reliable and easy to apply.

6. APPLICATION OF THE NEW PESTELI-TOWS-PORTER MODEL

Now I will apply the new model called PESTELI-TOWS-PORTER to analyze the business environment of BECA construction.

Political: They do not affect many of the BECA policies. The NZ government is indeed safe. It has designed policies to promote the construction of buildings for cities with large demands such as Auckland and Christchurch. Actually, the NZ government has designed policies that plan to provide lots of land in areas of significant demand for residential development (New Zealand Productivity Commission, 2012), which will open, new business opportunities in the residential sector, especially in the earthquakes areas. The NZ government is BECA's principal clients as well; This would considerably affect the company's cash flow if this relation change in the mean time. Thus, it is healthy for BECA to implement emerging strategies to counteract this dependency. However, political stability allows BECA to design financial strategies in the long term. For example, the current immigration policies such as student visas, with work permit for twenty hours per week and one year graduate visas are instruments designed to foreign professionals with a high profile included in the LTSS list. (Immigration NZ, 2012).

Economic: One of the economic factors affecting the business environment of BECA is that the NZ government is inverting $ 30 billion from the covered policies of insurance companies in the affected areas, plus an additional contribution of 28 billion by the crown, for reconstruction of the affected areas. These initiatives will raise the GPD, feeling this influence into the NZ economy (Bayer, 2013). The incorporation of such an enormous amount of money will rise inflation which could affect BECA's cash flow. Other economic issue is the current position of property sales through auctions, which determine its price at a minimum, finishing negotiations above the base price. This matter represents a competitive advantage in the commercial or the residential sector, bringing new business opportunities to BECA with high potential profitability by the units built. The exchange rate variability in the meantime, is likely to be causing problems for exporters as well, because such rate variability is being more expensive for New Zealand than other countries, due to its small domestic market (Mabin, 2011). This exchange variability affects BECA's overseas projects because they lower the profit. In order to avoid this situation, BECA needs to be extremely efficient and effective with its building processes. This will give the organization a positive profit in its contracts.

Social: The rebuild of cities such as Christchurch and Canterbury has created a housing shortage of about 10,000 units specifically for the younger strata below 20 years of age. This represents new business opportunities for BECA in the residential sector. So it is expected, that for the next 10 years, in cities like Auckland an increase in the demand for housing will take place. (HNZ,2012, p10)

Technological: Beca’s Geospatial team provides Survey & GPS services to a broad range of clients involved in land management such as transportation, power, water and various Government agencies. (BECA, 2013, para1). This technology is bringing many business opportunities to BECA with the government. This quick access to information allows BECA to make better and faster decisions, which will involve, in more productivity for the organization. In the residential sector although it is not highly exploited, it could be considered as another market niche which could bring a lot of value if it is developed wisely.

Environmental: The environment does not affect BECA considerably. As a large government contractor, company Beca adapts easily to its contracts. However, a potential danger could emerge if BECA explores the residential sector because the cost of land has increased significantly, which generate high prices in the units built and a possible downturn on demand.

Legal: After the earthquake, engineering regulations are becoming stricter in order to protect the users. Nevertheless such regulation affects BECA's processes because its obligation produces a more expensive product, lowering the profit and affecting its cash flow. This lack of productivity implies that it would be necessary to look for bank loans in order to restore this lack of cash flow, increasing the cost structure and lowering even more BECAS's profits. Considering overseas contracts, this legal issues do not affect the organization because they are contracts already signed and with clear rules of contracting.

To achieve the SWOT part I will summarize all the threats, weakness, opportunities & strengths in the following chart:

SWOT Analysis (TRUCHSESS, 2013)

Now I will analyze the level of competency of BECA. To perform this task It is necessary to integrate the Porter framework which comes as follows.

PORTER Analysis (TRUCHSESS, 2013)

Now I will outline all results building the PESTELI-TOWS matrix which is in the end of this report.

In the next chapter, I will analyze the implication of the model to BECA construction.

7. EVALUATION

After applying the PESTELI-TOWS-PORTER model, I outline the possible strategies that should be taken place within BECA:

FIRST STRATEGY

To take advantage of all inversions made for NZ government in housing and infrastructure, to produce financial policies in the long term through experienced and high performance teams, use of technology, healthy financial position and respectful relations with private clients in NZ to strengthen achieving efficiency and productiveness for organization and orienting efforts to find other markets around the world

SECOND STRATEGY

To take advantage of the potential profits achieved in construction management, maximizing productiveness through inverting in engineering & development inside the company, lowering the labour ratio and exploring new business opportunities around the world by diversifying the organization in areas different from construction and an increasing sustainability that allows the company to be in concordance with the planet.

LEVEL OF COMPETENCY

The bargain of suppliers: It is limited by a high competition between construction suppliers worldwide. This is beneficial to BECA because raw materials are bought through contractors at competitive prices, and generally through private tenders, which will translate, in major earnings before taxes.

Threats of Substitute products: This threat is relatively small with not so many implications to the company for present and future projects because BECA is specialized in building highly specialized projects for specialized industries and with specified materials. In this sense, all project must be under worldwide standards. The huge experience of BECA does not affect much this potential threat.

Intensity of Existing Rivalry: Although there are many competitors in the industry, the size of projects, have low implications for BECA. Generally, this organization compete in bidding processes, for works worldwide, and there are not so many opponents. There are only companies of the same size as BECA. In this sense, Beca is not so affected. It is advisable to achieve efficiency and productiveness in all stage of the organization in order to have a competitive advantage.

Bargain Power of customers: Generally, at this level, BECA's clients are independent governments and the organization's reputation, built through the years makes possible its invitation to even more bidding processes. In this sense, this power of customers has a low impact in the organization.

Threat of New Competitors: This threat is truly low because to achieve project of this magnitude the learning curve must be long. Financial sources are also an enormous barrier to pass in order to compete, which makes extraordinarily difficult to try to log in this level of business. In this sense, only worldwide construction firms can be a potential competitor.

9. CONCLUSIONS

From the analysis, I see that the organization BECA is according to the terms of its vision and is well positioned in the local construction market and Australasia giving consultancy in many areas, with important projects for different industries and high profitability margins by investing in stable markets like NZ, Indonesia, Australia among others. According to Dan Mara, General Manager power in Australia BECA is heading to new areas of interest, developing Power Systems across Australasia and looking for new opportunities arise, in South East Asia (BECA, 2013).

However, BECA is dedicated solely and exclusively to produce works whose clients are usually governments of the respective countries, closing the doors to the real possibility that private investment has. In this regard and based on the large investment that the government of New Zealand is performing in houses, in the affected areas of Christchurch and Canterbury, I think the organization should lead efforts toward the construction of residential developments and where according to the government itself has said, an investment that will be made will be by the order of 58 billion dollars. The vast experience that has BECA construction in construction project management combined with its financial strength predicts serious business opportunities in these areas.

On the other hand, the large size of the BECA as a company, provides a market with few competitors. Through the use of its broad technology platform, BECA can provide a quality product, more economical and generating value to its customers. This competitiveness is due to BECA can be more effective in its consulting construction processes than the ones developed by its closest competitors. In this sense, the use of this niche market will generate returns that would allow the company the diversification of its activities in other businesses such as mining, shipbuilding and other industries which further consideration is needed.

In relation to the acquisition of shares, traded in the NZ stock market, we see that due to the low volume of transactions executed in this market, which the NZ50 is the primary index, determined by the 50 most solid companies of NZ, it is noted that BECA is not among them. This shows that a speculative investment with this organization would not be advisable in a short term. In this sense, there are equally stable markets such as the NYSE and NASDAQ that can generate vast profits to professional investors who wish to invest for speculative purposes. It is recommended that if the client wants to invest in BECA, it is advisable to perform long-term transactions. It is better avoiding any short-term transaction because the continuous oscillation of the stock market could generate substantial losses to investors.

Finally and although the organization is conducting other consulting businesses around the world, different from those recommended in this report, I consider that BECA has real solid foundations, is reliable, has a tremendous competitive advantage and has a well-defined strategic plan. In this regard, I recommend investing in it for the term of the next ten years.

10. REFERENCES

Alvarez, A. (2009) The PEST Model, a tool for the analysis of the business environment. Materia BIZ

School of business Retrieved on 10/04/2013 from:

Http://www.materiabiz.com/mbz/estrategiaymarketing/nota.vsp?nid=43445

Beca website (2013) Leaders Dan Mara Retrieved on 08/04/2013 from:

Http://www.beca.com/people/leaders/Mara_Dan.aspx#.UYn_m8pOhWE

Cornwall Fire Brigade, (2013) SWOT & PESTEL Analysis Retrieved on 10/04/2013 from:

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Http://www.degerencia.com/articulo/analisis_dofa_y_analisis_pest

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Retrieved on 03/2012 from http://www.dlgtradingroom.com

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Http://www.investinganswers.com/financial-dictionary/businesses-corporations/porters-5- forces-1603

New Zealand Productivity Commission, (2012) Housing Affordability

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Http://www.productivity.govt.nz/inquiry-content/1509?stage=4

Thaukur, S; Richter, L (2010) History of the PEST Analysis: Bright Hub PM

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Http://www.brighthubpm.com/project-planning/101201-history-of-the-pest-analysis/

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Http://en.wikipedia.org/wiki/New_Zealand_Exchange

Pestle Analysis :: Business Analysis - Free Essays, Term ... (2013). Retrieved on 10/04/2013 from: http://www.123helpme.com/pestle-analysis-view.asp?id=166856

11. APPENDIX

A) Example of a PESTEL model for Charles Stanley brokers

Political

They affect Charles Stanley firm and include all government policies, such as tax policies, deregulation of the market, trade restrictions, laws, regulations, and tariffs especially (123HelpMe.com, 2013). Now that, the financial markets are in trouble, the government, with its regulations, formulation, legislation and decisions on government spending plays a crucial role. The tax changes have caused concern in the private equity business within Charles Stanley. These changes will drive investors out of the UK market and reduce the competitiveness and attractiveness of the UK for the private equity investor. The tax was deferred due to higher inflation, but when the changes take place at a later stage this will have a negative effect on Charles Stanley in terms of increased costs, corporation taxes. Political factor brings also the threat of challenge from the Conservative party, and if they beat Labour in the next election. This would question Charles Stanley and the effect their policies would have on the company. For example, like their plan to improve maternity and paternity pay for individuals, which will increase company costs.

Economic

A stable financial system plays a key role for a healthy and successful economy. The current turmoil in the financial sector is significant to the period immediately before the Great Depression of the 1930s. Charles Stanley is feeling the ’credit crunch’ with negative GDP growth, low interest rates but a rise in inflation hence less disposable income but rising costs for food and energy bills. Unemployment is high which should in theory make it easier to recruit but instead, people in the city are not wanting to leave their current positions, to move elsewhere which, has a knock on the effect for recruitment. Charles Stanley has decided to review budgets, and some departments have felt a recruitment freeze and others were forced to downsize. However downsizing may not be the short term answer, they may need to consider developing their current workforce and increase retention rates.

Socio-cultural

Charles Stanley recognizes the shift in health awareness and have seen a rise in employees who are practicing healthier lifestyles. The growing concern around obesity and lack of physical activity has pushed Charles Stanley to provide health club membership. Also, the attitudes to work and leisure bring focus to work hard, play hard culture and for leisure. Charles Stanley have a Ride to Work scheme in place. Having such schemes in place may incur additional costs but there are long term benefits which include higher productivity, raised moral, motivation, engagement and achieving strategic objectives. The work life balance is also a serious issue, as many find that work demands get in the way of other commitments, so ‘being aware of different demands on time and energy’ has become increasingly difficult to manage within the HR function at Charles Stanley. (David Clutterbuck) It has become increasingly indispensable to have family friendly policies and flexible work patterns to help employees with other commitments such as community commitments or studying. Family friendly benefits like childcare vouchers are also offered at Charles Stanley but not taken up by many because they are not publicized enough. Other challenges recently raised within the HR department are the lack of female Labor in financial services and the ageing workforce which increases pensions costs.

Technological

As UK Internet usage becomes more prevalent, this has encouraged Charles Stanley to support the establishment of a new Human Resources Information System (HRIS) and an online portal specifically used for recording CPD. New technology has played a significant part in the staff development process and has also increased staff involvement, having access to more training data via the online portal. There is a selection of videos, pod casts and questionnaires available to enhance the skills of employees which in turn increases productivity. HR monitor the usage and approach staff who have not accessed the portal in order to assist them to maximize their potential without much resistance to change. New technology can also be used to provide financial education, for staff to increase awareness of the benefits package they currently own or the benefits which are available to them. Some employees do not know what their corporate benefits package entails, and Charles Stanley should provide a service whereby they inform employees about the full range of employee benefits and offer advice on the full range of benefits including pensions, risk benefits and healthcare.

Legal

Charles Stanley operate within a complex legal and regulatory environment in which they aim to adhere to best practice at all times. They try to keep the highest business and ethical standards mitigating the risks to their stakeholders. To help them stand out this policy, they have a framework in place to monitor and communicate risk throughout the company.

Environmental

Charles Stanley realize that people in general are often aware of environmental issues and want to make sure that companies that they work for are ethical. Therefore, they need to have increased measures in place such as CSR policies to satisfy employee needs. A detailed focus on two key factors from the PESTLE analysis –

B) Layout to perform the PESTELI-TWOS-PORTER analysis

External Affairs

Political/Legal (P&L)

It includes environmental issues, current legislation in the local market, future legislation, international laws, processes and regulatory bodies, government policies, government terms and change, foreign trade policies, funding initiatives, lobbies and pressures.

Economic (E)

It includes local economic situation, Trends in the local economy, Economy and trends in other countries, General tax issues, Specific tax products and services, Seasonality and climate issues, Market cycles, Specific factors industry, Market routes and distribution trends, Motivating customers / users, Interest and exchange rates.

Social (S)

Lifestyle trends, Demographics, Consumer opinion and attitude, Standpoint media, Changes in laws affecting social factors, Brand image, technology and business, Consumer buying patterns, Fashion and role models, Major events and influences, Access and buying trends, Ethnic and religious factors, Advertising and Public Relations.

Technological (T)

Competing technological developments, research funding, Technologies associated / dependent, Technologies / solutions surrogate, Maturity of the technology, Ability and maturity of the manufacturing, Information and Communication, Mechanisms / technology purchase, Technological legislation, Innovation potential, Technology access, licensing, patents, Intellectual property issues.

Industrial (I)

Government affairs, News relevant to any brand or sub Industry, Lack of customers & cash, Shortages of raw materials, Difficulties to access to loans with the banking sector, Competitiveness, Energy affairs, Labor or work Force, Production costs, World Market conditions.

Environmental (E)

Government regulations, Imbalances by global warming, Water Conservation, Impact from the production of goods, to Manage of impact to achieve a competitive advantage, Social Responsibility to take advantage in taxes, Illness evaluation affecting workers (cyclical diseases), Waste Management.

Collection of information of Opportunities and Threats (O&T)

I. Make a list all real opportunities now and in the future.

II. Generate another list with all the current and future threats.

Internal Affairs

It is referred to a collection of information related to strengths and weaknesses.

I. Make a list of all the strengths that currently exist (not in the future).

II. Then generates another list of all the weaknesses that currently exist (not in the future).

C) Porter Analysis Layout

Resource Truchsess, 2013

D1) BECA's PESTELI-TOWS Matrix Layout

POLITICAL ECONOMIC

STRENGTH PS STRATEGIES

Use of the experienced staff, Efficient Geotechnical platform, Good relationship with NZ government, infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) to take advantage of inversions made for NZ government in housing, infrastructure and oil sector and design financial policies in the long term. ES STRATEGIES

Use of the experienced staff, Efficient Geotechnical platform, Good relationship with NZ government infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) to take advantage of $ 30 billion inversion investing in the housing sector and taking advantage of auctions to increase the profit margin.

Use of financial health to overcome exchange rate variability inverting in emergent market of low risk.

WEAKNESSES PW STRATEGIES

To take advantage of the vast inversion made by the NZ government in different sectors and its design of financial policies in the log term to strengthen its weaknesses such as the high cost of construction labour

and the limited experience in the residential sector designing high performances processes to raise productivity and increase the know how in the residential sector EW STRATEGIES

To take advantage of the NZ inversion in affected areas and the auctions housing mechanisms to raise profit margin, inverting these resources in investigating & development to raise labour productivity and minimize the depreciation of the NZ$ by inverting in other markets.

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Resource Truchsess, 2013

D2) BECA's PESTELI-TOWS Matrix Layout

SOCIAL TECHNOLOGICAL

STRENGTH SS STRATEGIES

Use of experienced staff, Efficient Geotechnical platform, Good relationship with NZ government, infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) in order to look for new business opportunities for BECA in the residential sector. TS STRATEGIES

Use of the experienced staff, Efficient Geotechnical platform, Good relationship with NZ government, infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) in order to improve profit and to invert these resources to improve BECA's technological platform.

WEAKNESSES SW STRATEGIES

To take advantage of the housing deficit to through the building profit, the organization could invest in engineering and development in order to raise labour productivity & minimize the depreciation of the NZ$ exchange. TW STRATEGIES

Use of BECA's technological platform, to improve building processes and minimize depreciation of NZ currency, through the incorporation of even more IT processes that allow at managerial levels, issues of this type.

Resource Truchsess, 2013

D3) BECA's PESTELI-TOWS Matrix Layout

ENVIRONMENTAL LEGAL

STRENGTH ES STRATEGIES

Use of BECA's resources such as tangible or not tangible in order to increase sustainability in all projects around the world, including NZ LS STRATEGIES

To use the company's experience, infrastructure, good relation with NZ authorities and technological platform to overwhelm the lack of productivity produced by NZ and overseas regulations

WEAKNESSES EW STRATEGIES

To incorporate sustainability in all BECA's project in order to incorporate sustainable processes to maximize labour productivity LW STRATEGIES

To study legal issues of NZ referred to standards, labour, taxes and other related issue in order to improve productivity and raise gross profit

Resource Truchsess, 2013

D4) BECA's PESTELI-TOWS Matrix Layout

INDUSTRIAL THREATS OPPORTUNITIES

STRENGTH IS STRATEGIES

To take of the financial health of Beca along with the technological platform, robust infrastructure and trustworthy relation with clients to look for more business opportunities in the construction business around the world TS STRATEGIES

To use the experienced of BECA's staff, Efficient Geotechnical platform, Good relationship with NZ government, infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) to overwhelm inefficient building processes to try to build more quickly with a significant profit ration OS STRATEGIES

To use the experienced of BECA's staff, Efficient Geotechnical platform, Good relationship with NZ government, infrastructure (machinery, equipment, facilities etc), Healthy financial situation, Good relations with private clients from overseas (Indonesia, Australia & South East Asia) to take advantage of the NZ investment in construction, along with government efficiency related to building consents, taking advantage of the High Demand of homes in NZ to look for more business opportunities which will be translated in more projects for BECA.

WEAKNESSES IW STRATEGIES

To take of the financial health of Beca along with the technological platform, excellent infrastructure and outstanding relation with clients to minimize the cost of labour through incorporation of new technologies, looking for effectiveness & efficiency TW STRATEGIES

Minimize the inflation rate in construction project, by optimizing labour productivity, in order to minimize the high cost of production produced by construction regulations in project around the world.

OW STRATEGIES

To take advantage of the NZ investment in construction, along with government efficiency related to building consents, taking advantage of the High Demand of homes in NZ to look for more business opportunities which will be translated in more projects for BECA to minimize the high cost of labour and variation of NZ currency exchange

Resource Truchsess, 2013

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