This Study Resource Was: Global Business Environment

GLOBAL BUSINESS ENVIRONMENT
Global Business Environment
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Module Code: BM461
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Institutional Affiliation
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Word Count: 535

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This study source was downloaded by 100000790676809 from CourseHero.com on 06-26-2021 16:28:29 GMT -05:00
https://www.coursehero.com/file/52322271/Avivadocx/
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EXECUTIVE SUMMARY
United Kingdom is a headquarter of many globally known companies. However, their operations
are limited or boosted by several factors. This research, therefore, aims at conducting a PESTEL
analysis for Aviva PLC, a British Multinational Insurance Company. PESTEL analysis is
concerned with political, economic, Social, Technological, Environmental and Legal factors
affecting an organization.
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Table of Contents
A. Background Information.............................................................................................................4
B. PESTLE Analysis.......................................................................................................................4
i) Political Factors........................................................................................................................4
ii) Economic Factors....................................................................................................................4
iii) Social factors..........................................................................................................................5
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iv) Technological Factors.............................................................................................................5
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v) Environmental Factors.............................................................................................................5
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vi) Legal factors...........................................................................................................................5
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C. Conclusion..................................................................................................................................6
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A. Background Information
Aviva PLC is a British multinational insurance company with its headquarters in London,
United Kingdom (Aviva.com, 2019). The company is estimated to have approximately thirty-
three million customers across sixteen countries that it operates in. By the end of the year 2017,
the company had employed more than thirty thousand workers. The company specializes in life
insurance, general insurance and pension services (Aviva Life & Pensions UK Ltd’, 2019).
B. PESTLE Analysis
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Fort University (2019) argues that macro-economic environment factors greatly influence the
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level of performance and the operations in Aviva Plc as illustrated below.
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i) Political Factors.
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Political stability in United Kingdom and the importance of insurance in the country
influences the market for the Company. Additionally, UK is known to prohibit any forms of
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corruption and hence integrity in the company is enhanced. Finally, Brexit withdraw and its
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aftermath has influenced the operations of not only Aviva Plc but also other companies owing to
the fact that market across European Union countries is being affected. Additionally, the
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emergence of Brexit where the united Kingdom withdrew from the European Union has affected
Aviva in great ways. One of them is that Brexit effect has led to a reduction in productivity. This
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is true since Brexit is assumed to increase costs and reduce sales for a firm operating
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multinationary such as Aviva (Homepage, 2019)

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ii) Economic Factors
The economic cycles in the country affects the operations of the company. For instance, at
recession periods, there is a high unemployment rate which means that people would be willing
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to work at low wages and hence reduce the expenses for wages incurred by Aviva plc (Fort,
2019). Additionally, the rate at which the country’s GDP grows dictates how the company should
grow in the future.
iii) Social factors
Aviva Plc is affected by social factors such as the demographic composition which influences
how various products should be market. For instance, the age composition can necessitate the
need to market for pension and life insurance services. Additionally, social classes, -the way the
population is segmented into distinct social classes- can be used to predict the market in various
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regions (Aviva Life & Pensions UK Ltd’, 2019).
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iv) Technological Factors
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The level of technology employed in the company greatly influences the operations of the
company. The nature and quality of services offered by the company are technologically
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intensive and hence any minor change in technology results to a significant change in the
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operations of the company.
v) Environmental Factors
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The environmental factors influencing Aviva plc include the initiatives that must be performed to
reduce the impact of operations of the company in the environment. Other factors may demand
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for investment in the company thus increasing the costs in the company (Fort, 2019).
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vi) Legal factors

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United Kingdom is a country laid under distinct laws that must be followed by any company or
business in the country. Such laws include the discrimination law which advocates for equality.
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Other laws include the employment law which protects workers and give every worker right in
the company (Fort, 2019). . These rights might lender the company ultra vires if violated.
C. Conclusion
Aviva plc is influenced by various macro-economic factors which dictate how operations are
been carried out. From an investor’s point of view, it is therefore good to consider how each
factor is aligning with the objectives before making any decision.
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Bibliography
Aviva Life & Pensions UK Ltd’ (2019). Available at: http://search.ebscohost.com/login.aspx?
direct=true&db=edsmkl&AN=edsmkl.B64ED4C8.3918.453A.B4DC.B1BF6CD38D41&
site=eds-live (Accessed: 4 November 2019).
Fort, F. (2019). Aviva Plc PESTEL / PEST & Environment Analysis[Strategy]. [online] Fern Fort
University. Available at: http://fernfortuniversity.com/term-papers/pestel/nyse4/7004-
aviva-plc.php [Accessed 4 Nov. 2019].
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Homepage, A. (2019). How will a no-deal Brexit affect your travel?. [online] Aviva.co.uk.
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Available at: https://www.aviva.co.uk/aviva-edit/your-things-articles/how-will-a-no-deal-
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brexit-affect-your-holiday/ [Accessed 12 Nov. 2019].
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Aviva.com. (2019). Aviva corporate website. [online] Available at: https://www.aviva.com/

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[Accessed 12 Nov. 2019].

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GLOBAL BUSINESS ENVIRONMENT

Global Business Environment

Word Count: 535

ii) Economic Factors....................................................................................................................4

iii) Social factors..........................................................................................................................5

multinationary such as Aviva (Homepage, 2019)

ii) Economic Factors

grow in the future.

iii) Social factors

operations of the company.

vi) Legal factors

factor is aligning with the objectives before making any decision.

Aviva Life & Pensions UK Ltd’ (2019). Available at: http://search.ebscohost.com/login.aspx?

site=eds-live (Accessed: 4 November 2019).

University. Available at: http://fernfortuniversity.com/term-papers/pestel/nyse4/7004-

aviva-plc.php [Accessed 4 Nov. 2019].

Aviva.com. (2019). Aviva corporate website. [online] Available at: https://www.aviva.com/

[Accessed 12 Nov. 2019].

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