Highways Agency

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Date Submitted: 01/16/2013 06:48 PM

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An essay on the external business environment, analysing the macro environment using a PESTLE analysis on the Highways Agency.

FDA Business Management


Shah Ali


In 1994 the Highways Agency was first established as an exclusive organisation for the Department for Transport. One of the main responsibilities the agency holds is to see out the operation of the strategic road system in England, in line with the government's target of a long term transport structure which will ultimately help the growth of the economy. The improvement of safety, ensuring road users are given clear and accurate information and also challenging the problem of congestions are key functions of the agency.

1.0 Introduction

This essay will look to analyse how the Highways Agency is affected by the macro-environment. There are several external factors that all affect the organisation, from the way business operates to the aim of the business. One way of assessing how the macro-environment affects the Highway Agency is by undertaking a PESTLE analysis on the organisation. This will look at how political, economical, social, technological, legal and environment factors affect the business. The essay will also review the advantages and disadvantage of using a PESTLE analysis as a strategic diagnostic tool.

2.0 PESTLE Analysis

A PESTLE analysis is management tool which used to assess the current situation for a business or organisation. It looks at how external influences from outside, may affect the running and performance of a business. It is an acronym for, political, economic, social, technological, legal and environmental. It is often used alongside SWOT analysis to provide a full in depth analysis of a business.

2.1 Political

The Highways Agency is an organisation which is identified to be in the public sector of business as they are funded by the government. Thus meaning they are always to working towards the public's best interest, instead of any gains through...