1.0 Introduction 1
2.0 Terms of Reference 1
3.0 Procedures 1
4.0 Findings 1
4.1 PESTEL Model 1
4.2 Opportunities and Threats to the administration department 2
4.3 Analysis of 2
4.4 Change Management Strategies 3
4.5 Possible impacts of resistance to change on the administration department 3
4.6 Strategies to reduce resistance 3
5.0 Conclusion 4
6.0 References 5
I have been asked by the partners, Izzi McDonald, Tomi Ajetunmobi and Alasdair Young at Classic Interiors to attend their next meeting to discuss the future of the company. They have also asked to know my views on any possible developments of the company and my views on the administration department. I will be preparing a briefing that will them be circulated to the partners, that they will then use for the basis of their discussion at their next meeting.
2.0 Terms of Reference
I have been asked by Tutor Chris Kennedy to write a briefing report using the previous case study about Classic, that will include using the PESTEL model to help analyse any factors that could affect the future of the organisation and to also talk about any opportunities and threats that are relevant to the administration department at Classis Interiors, I will then analyse these and recommend changes that could address any of these issues.
The information in my report I have gained from:
The VLE Student Pack
Classic Interiors case study
4.1 PESTEL Model
PESTEL analysis is a tool used by companies to identify and analyse any change in the strategic or business environment and the abbreviation stands for Political, Economic, Social, Technical, Environmental and Legal. The external part of PESTEL is the issues that a business has no control over, below is what each of the letters means and a brief description in the ways each affects a business.
The Political side of PESTEL relates all political issues like employment laws, tax policies, trade restrictions, environmental regulations and tariffs. If there are changes in employment law then this can have an effect on organisations e.g. the new parental leave that is going to be introduced in 2015, this allows both father and the mother to be entitled to paid leave, so this could have a negative effect on the organisation because as well as having to pay for maternity/paternity leave the company will also have to cover the cost of having to have someone to cover these absences, therefore costing the company more money.
Economics factor covers issues like recession, minimum wage, wage rates, unemployment and taxes. Recession is one of the big issues that has a major effect on all companies because as the recession runs its course it can cause the company to have to try and save money in different areas to be able to keep the company running, this can include having to stop hiring new staff, buying new equipment and also having to cut the costs of research and development of the company even trying to cut costs is not always enough to keep a company from closing when going through a recession.
The sociological issues that can affect businesses are things like attitudes to green products, product quality, customer service and religion and beliefs, at Classic Interiors since their business is based on working with people in their homes by either giving them advice on their decorating, carrying out any renovations or supplying products then changes in these issues could affect them e.g. if customers maybe only want domestic products and not foreign ones but the company cannot guarantee that then this could lose valuable customers.
Technological, this factor thinks about all events that affect technology. With new technology coming out all the time it usually becomes out dated quickly, so this is something that has to be thought about. New technology can be a good thing for a company because it will allow them to keep up to date and be able to compete against