An analysis of the current and ongoing impact on organisations of the range of external factors and trends. (AC 1.3)

The PESTLE analysis is a tool that practitioners use to identify the external factors affecting organisational operations. Weeks (2020) identifies PESTLE as an organisational development tool that describes the political, economic, social, technological, legal and environmental elements that provide insight into the decisions made within an organisation. The Porter’s Five Forces model explains the five forces that affect business operations that result to development of major business trends. The elements in the model include rivalry among competitors, bargaining power of the buyers, bargaining power of suppliers, threat of substitute products and threat of new entrants. Grundy (2006) asserts that the model helps organisational managers make strategic decisions and embrace change appropriately support and embrace changes to enhance organisational development.

At the BMC organisation, it is clear that employee well-being is a concern, which is evaluated from the social element in the analysis tool. Lack of focus on employee well-being affects the employees’ mental, psychological and physical status (Suff, 2021). Managers who focus on employees impact organisational success, mainly because they will become more committed to their work. Therefore, people practitioners at BMC should foster a working environment where they implement a holistic approach to employee well-being. This should involve all organisational stakeholders, including the senior managers, line managers, people professionals, employees and health professionals whose contributions and engagements enhance the promotion of better working lives. Herzberg 2 Factor theory that helps identify with factors that cause satisfaction and those that cause dissatisfaction. BMC managers should have the insight to identify the motivators such as advancements, recognition, growth and achievements. They should also identify hygiene factors that might cause dissatisfaction at work such as salaries, security, working conditions, company policies and workplace relations. These helps identify strategic actions effective to improve employee well-being and create positive organisational impacts.

Current trends that shape the world of work include and enhance performance improvement at work, including flexibility and technological advancements. Flexible working practices have resulted from the Covid-19 pandemic, which has affected BMC and other businesses in the global market. Organisations strive to develop formal and informal flexible working arrangements and develop policies effective to create improved opportunities for business survival. This trend has seemed to be effective, especially to employees who have developed unique expectations, which enhance change in their careers and need to balance between work and their personal lives (McCartney, 2021). Employees have the legal right to request flexible working arrangements. This is an aspect that BMC management and planning partners should be aware of to ensure that they make the proper working arrangements for the employees in all the BMC premises.

Technological advancement is a trend that has changed the manner of business operations, and this is an external issue that impacts the survival and progress of the business. According to Mohdzaini (2021), people professionals should be prepared for the future of artificial intelligence, automation and robots technologies. Organisations should be ready to invest and adapt to these technologies to enhance interaction between technologies and people. The trend has a significant impact on organisational performance and improved employees’ working lives. People and organisations report positive organisational results, and they focus on solving organisational problems. BMC should take appropriate actions to invest in the new technologies to enhance improvement in the new Manchester premises, and at the same time enhance effectiveness in managing issues that might have negative impacts on organisational growth and success.

	External factors in food and beverage industry	Factors affected and trends
Political	Political stability Trade Restrictions Tax policies and systems	BMC and other companies in the industry need to focus on identifying new markets where the political environment is stable for effective business operations. Instability results to development of major problems affecting the business. Additionally, management has to look into restrictions that might affect business interactions within and out of the country of operation. The management need to understand the tax policies and ensure that the business follows the tax regulations accordingly.
Economic	Economic growth Cost of living Compensation rates	Growth in the economy positively affects the business environment, and this has subsequent impact on business growth and stability. The economic conditions affects costs of living, which affects the customers’ consumption power. Economic environment affects HR decisions on the compensation given to employees, which affects employee-employer relationships.
Social	Covid-19 pandemic Customer lifestyle Social well-being Social media influence	The pandemic has affected employee flexibility and well-being. The new trend on workforce flexibility is being implemented to ensure that the employees establish work-life balance in an environment that needs adjustment. Additionally, the management needs to understand changes in employee and customer lifestyles for them to adjust in the new work environment. The social media influence is a trend that affects the social communication and information exchange, thus management needs to identify the impact in business operations.
Technological	New technology advancements Innovation Creativity	People professionals and businesses should be prepared for the future of artificial intelligence, automation and robots technologies. For example, BMC should take appropriate actions to invest in the new technologies to enhance improvement in the new Manchester premises, and at the same time enhance effectiveness in managing issues that might have negative impacts on organisational growth and success.
Legal	Employment regulations Changes in legislations Development of new legislations	The legal changes affects how businesses deal with employees and other stakeholders towards enhancing business success. HR has to follow legal regulation on employment practices to minimise tribunal cases. They need to review changes and improvement in legislations to enhance effective decision-making. They also need to follow new regulations to adjust to the new ways of work.
Environmental	Corporate social responsibility Green policies Sustainability	The businesses in food and beverage industry should have concern for CSR to ensure that they relate well with the community. They should develop policies to reduce carbon emissions and enhance sustainability in the working environment. This enhances organisational competitiveness and creates a positive business reputation.

Published by Lisa