For exanJple, Logica has provided:

• the oLitomated ticketing system for London

Dusii esses clo not operate in isolation. They are constantly
laced with ir teinal and external factors that impact on the
tlynamics of their operations. Monitoring the external
environmant is vi1aI to ident ify changes that could affect 1h+
business operations. Being able to address and adapt to these
changes ensures the longer terns sri 'ival of the business.
Logica is an innovative II services orgr\nisatioi that brings people,
Underground the outsourcing of IT and technlcal
applications lor Taylor
Wimpey, the UK house building business
business applications for the Ministry of Justice's Cour\s,
TribuiJals and offices
the design ot electronic security services tcr the UK's
Dupartment of Detence
the system for qenerating PremiuiTi Bonds (ERNIE).

business ‹Ind technologies together, Logica einpioys more than

a 1,00O people and has clients hound the x'vorId in a variety ol
inciustrles including <nutomOtIve, oil ord 9os nnct man\ilacturing.
LOgiC .s Ser iCps ¡m tO yg ValtiG for Client s IhrcUgll. fOr axa/ iple,
impuroving elticiency and produc1iv ty or reoriciiJg waste.
Logica the eJoi’e requiies highly skilled emp!oyees wno are able to
adapt and deal with a range of challenges. The work cJ Logica is not
just about developing technology. It is about getting business benefits
from the technoDjy availabla. It is also about enabling clients 1o
reduce environmental impacts. Logical experts Increasingly provide
sustainable and long-term solutions for its customers. For example, it
works with governments and automotive companies to develop and
proiJlote sustainable methods of transport.

its external
This case Study illustrates how LogiCa monitors
PESJ” analysis. Thiv \s a strLictuied business
erJvironmef t using
social and tecI\nologiccI
tool that looks a1 the politicai, economiC,
influences “uflecting a
Dusiness. Oy aiJditing end m Qituring tl ese
Ït FefTïOlNS
influences, Logica can ba prOaCtive in ensuring
adapting its own buslnsss and by ge*l ‹ !‹’l0
C inpE'.tilive Dy
tçtgvative and uniqu8 SOiuiions for its cli60tS'

competitors, thay hav0

For businesses to Stây ahead Of tllelr Logica works
tO jqovative products and sarvicas.
cleliver in
With y
t
t, ‹O aud b s‹ •ss development.
US

S2

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 Iso. in ched a three-year sponsored öegree
Ç007 Lo Cä iaun iversity Of Winchester. The degrO•e
with,the UF\
(HOns)
Business Management and BA
progrsinm9S BA'tHons)
attract applications from students
WÎtÑ ITrees allow students to cOmbine
eUsiness Managem6 Dî
throughOUt1h• u
K. Thèse deg
n-the-job iearning. Students spend ona day
ac d‹ i• Study wÏth oampus and four öaysa week working at
OUI c
a we6k studyi09 students
courss fees as well as offering

t Logica. LOglCâ @ S

further develop their pro

day one. Upon graduation they can

fessional career within LogiCa.

fOCLlS‹ L ogica nas also responded

l new Cycle Hire Scheive in LoncJon.
BusineSS d6Cisions may be influenced by
political factors. For
0Xample. recenl public sector budget cLits by the UK government
and increased university fees are affecting the education sector.
For students this has meant making key decisions about how th+y
inteno to pursue their careers. This in turn has meant
that academic providers need to review how they will meet
the challenges of generating income.
Logica identified that ihese changes in the educational landscape
could h«ve an impact on the number of pole stial employees
with the skills and competencies that it requires. For example. ii
had to consider the affordability of higher education for students
and how this could influence long-term development opportrx1i\
ies v'zithin the company, The increasing cost of becoming a
student may rastrist the social mobility of talented inclfviclrials
sustainableinitiatives on climate change and reducing
g/y of its@vernment
qes/ part
UC
en Vss ons, For exemple, it
nas been involved inthe
thecontraGt
government's
for the
Il secured
contractor responsiDle for
ma or IT con ponants with Se‹co, the
Logica’s role is
ùesigning, buiid!ng and operating the system.
the simple-to-use
central and focuses on the design and Duild of
function.
payment system. This is supported by a back ottice
Economic factors change rapidly ancl are sometimes ditticult to
predict. The global economic recession has affectec how most
trms conduct business, perhaps by looking for cost-savings or
rem cing waste. As businesses focus on areas where efficiencies
can ba mac/e, some might choose to outsource |j In.c'.ons to
recJuce costs, rather than employing people with specialist skills.
This has created increased demand for or tsourced services such
as Ihose Logica otlers. Logica’s employees have the specialist IT
Skills beguiled to offer businesses of VIIItypes efficient and effective
wcys to manage systems and processes.

and they may then need to consider alternative routes to

gaining qualifications and experience.

Logica was fherefore reviewed its workforce planning. It has now

engaged in strafeg es to ensure it has enough workers with the
right skills both now and in the future. To address the changes in
the educational landscape, Logica has introduced apprenticeships
and enhanc°d its graduate schem0. Logica has embr‹nced the
strategy cf direct training as i1 provides the company with a new
pool of talent, with the focus on individuals who f12ve decided to
specialise in IT or Corriputer Science. This is why Logica has
embarked on creating Level 3 Apprenticeships in 2012. I his
widens the range ot talentecf young people that Logica needs and
gyorrs the org‹nnisution's long-term commitment to career
”,•veloI ment of its e‹vpIoyees.

53

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Logica was selected by BAE Systems, the global defence and
security company, to provide a Human Resources outsourcing
. service for its employees within the UK. Logica works with BAE
to increase the effectiveness of its systems and to enhance lhe
efficiency of its Op0fations. This improves how BAE engages with
its employees to maximise their potential. This also helps BAE
to reduce its costs and focus on 9rowth.
The ‹acession in the UK has also heightened the need for the
government to cut spending. One example of this is the
$OVBfF\IT\6rlt’S C0mmitment to achieving savings through the better
use of its technologies. As a result Logica has been awarded
1
a 0-yearoutsourcingcontract with the Serious OrganisedCrime
Agen¢y. DMring this contract Log ca will manage the Agency's
informationand COMmunication tecl nologigs and relatecl
services. this creates efficienciesby bringing together data
centres and networks, whilst help ng the Agencyto exploit
intelligenceand case management more effectivelythrough an
integrated systems.
Si/T›ilarly, Logica s services have helped Transport Scotland to
put together the largest ticketing scheme i/3thB WOflId. This has
involved the installatiOnof new eJectrqnic ticket machines on 7,000
buses and 200 bus operator sites. The syslem processes over
2 million journeys every month ano delivers cost-savings in
terms
ot en p/oyee time.
“"t-' '\? ?/- / t {'”“t •-i •-°
Social factors reflect the constant change in society's interests,
beliefs and actions, 1”here arg now different working patterns
available which allow men and women Io balance work and life
commitments better. New technology is driving faster and more
ii›tegrate0 forms of communication - 25 years ago the mobile
phone was jusl an evolving concept; the personal comp ter and
internet were just starting to make in impact,
54
ThB UK has BO ! e!’
The make-up of societÿ iS a!$+O changinÇj,
many different
and more diverse society with people from
bFil3qS
backgrounds and cultures. A diVBrse workforc6
. D‹versity is thsrefore
people with different Skill »o COmpetencies
with many
a focus of Logica's HR strategy. Cogica competes
other uals with
firms for a limited pool of highly talented individ
good IT and numerical skills. To increase this pooi of talent.
Logica aims to
i‹›crease the nu/riber ol females in its workforce.
Within the IT
Of 16’/a of the
»dustry, females only account for an average
gr0duates in Computer Science/IT.
of females in its
Logica understands that increasing the number
has been heavily
workforce will bring different s\rengThs. Logica
workplace. It Pas supported
involved in driving equality within the
the Woman's Empowerment Principles (WEPS). This iS 0
partnership initiajiya of the United Nations. It has joined 267
nations acrnss the worlÖ in order to improve gender equality. This
has helped to empower women within the workplace and the
community. To do this they have created a Women's Mentoring
Programme aimed at supporting women in their career
development. This will ensure that more wonnen rise through the
ranks into positions of senior management.
Another way that Logica is addressing this issue is by
supporting IT clubs In Ioc4I schools near Logica's offices across
the UK. These clubs promote the importance of IT and
demonstrate the
variety of exciting career opportunities available within the industry,
particularly for young women.
By offering a range of different routes into the
business and
making education mora affordab e Logica is able
l, to provide an
exciting and desirable option for career developm
nt.
www.thetimes100.co.uk
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 LOg'Ca’6 technology 6upporta ite clients í,

y this It needa to ba able to offer

äFłV!fOFlM6f\t łOF Ita highly Skilled ampłoveasf‹om

backgrounds. Loglca's people are key to the techs, yyp

provides, as employees need to havo both the iT shhø
lnnovative nllnüset, Ae an example, graduates wkhin țt\ą gS g
may be Involved in any part of the Organisation, frOff\ b me
consultancy, systems design and development and
inlplainentotion, to testing ti e support of new tœhnołggİøø
training or applications management.

PglCØ Ï-ÎSİfîg Skllls to respond to the external environment

The speedOf technological advances means that existing electronic

øqøiprnent, IT processes and systems will quickly become dated. To
„gnaw competitix'e a business must ensure that as processes and
syster suppon innovation and creativity for itself and its
customers.Logica nas embraced recent advances in technology to
over ‹ts chants the most advanced and susta'nabIe services
poss›bla. An exe nple Of this is the use of 'cloud' technology.
Cloud techno’c›gy allows companies to access zJnd buy into t1ata
storage or software ‘on demand’ through the internet. It enables
companies to access a shared inTrastructure. this eItminates the
need for firms to bag sclvare tor every staff member or support a
server to store company dnta and pay for stat to maintain it. This
in turn reduces u'aste in terms ol æth time and money and can
help a business to œcome more competitive by unlocking CO
ltal. This capital can tnen be invested in o*her creas.

Logica hcs also worked ‹'vith the UK police force to develop the
Pol›ce National Database. This is the most secure national police
system developed to date and only authorisedand vetted users
will have access to the system. łt w›ii make a big difference to
policing in the UK as all police forces will now have easy access to
key information from forces around tne country. The system wilI
make a real difference in protecting people in society.

7echnc/ogy can also help öLisinesses to meet the issues of

StJSfúi/JćłÖł//ły. Sustainability is now ¿I high priority and businesses
are kEen to reduce waste and be more energy-efficient. Using
more efficient IT systems can help reduce waste, recycle more
or C‹ił carDon emissions. For example Logicc has created ink
ovûtive software for Forğ whicli monitors vehicle emissions. If
drivers behave in an environmentallyefficient way they may
benefit from
fuel disCounts. Systems like łfys help businesses save money
tńroug/ reduced fuel consumption whilst also reducing emissions.

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The external environment in which businfšssas operate
changes vary quickly. Political, economic, social and
technological changes all put pressuie on Organisations.
Logica is a global business that provides innovative solutions ìn
data and systems management for its clients, helping their
organisations to respond to external
factoi s. The natura of the work that Lo9 ca can offer an
employee is both challenging and s1imulatins

By monitoring and auctiting its own external environment,

Loęica has also been able to adapt its business to maximise
efficiency and «'.xploa opportunities. Thìs has been aone
through adjusting its service offering to utilise advancements
in technology and drive improvements to IN services fcr
clients.

In acłdition, Logica has been proactive in dealing with the

polčical and social influences that have affected the eclucalioizal
landscape. It now offers a variety of entry routes into the
business, such as apprenîiceships, sponsoraü degrees and
graduate programmes. The business has created long-term
career development opportunities for young people. Logica
is also actively addressing the shortage of females within IT.
28üŁ of its recentintake of
graduates were female. This is a significant improvement on the
industry average of just 16üS. Logica hopas tO ißCf0čłSe this
further through its IT clubs in schools, which further promote
the exciting and varieÖ career opportunities available within
the industry.

1. Describe the four elements of a PEST analysis. {2 marks)

2. Give four examples oł other external factors not
faatured in the case study. (4 marks)
3. Analysa how social influences hûV0 Changea tha
attitudes and approaches of employers towards
employees, (6 marks}
4. Evaluate how the external environmentinfluences
the decisions that businesses make. (8
/TlăfÏŒ}

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