PEST ANALYSIS ON OXFORD INSTRUMENTS PLC

BACK GROUND HISTORY

The company was founded by Sir Martin Wood in 1959 to manufacture
Super conducting magnets for use in Scientific research, starting in his
garden shed Northmoor Road , Oxford , England. It was the first
commercial spin-out company from the University of Oxford and it was first
listed on the London Stock Exchange in 1983 (.It had a pioneering role in
the development of magnetic resonance imaging . The first commercial
MRI whole body scanner was manufactured AT ITS Osney Mead Factory in
Oxford in 1980 for installation at Hammersmith Hospital, London. Oxford
Instruments was not able to capitalize on these inventions itself, granting
loyalty-free license to Philips and General Electric whilst developing a joint
venture with Siemens in 1989: this was dissolved in 2004.
The Group now is a leading provider of high technology tools and systems
for research and industry . They design and manufacture equipment that
can analyze and manipulate matter at the atomic and molecular level
(Oxford, 2012). It consists of 32 companies mainly located in England, USA,
China Japan , Denmark and Germany as Holding companies and they
are conducting trading , marketing and distribution of their products ,
including products related services.
The group reported a 29% rise in revenues, from 262.3m in 2010-2011, to
337.3m in 2011-2012. And the adjusted operating profit for the period
2011-2012was 42.1m. The average number of people employed during
the year 2012 was 1,834, an increase of 336 over the prior year. This shows
an overall increase in the workforce of the group which covers its
acquisitions during the period (Oxford, 2012).

CSR ACTIVITIES
The group is committed to enhancing shareholder value in an ethical and
socially responsible manner by considering the interests of all its wide
community of stakeholders including investors, employees, customers,
suppliers and local communities.
In 2011, the Group announced their 3 year plan for the business called 14
Cubed Plan . The objectives of this strategy are to achieve 14% return on
sales and 14% revenue growth per year by 2014.Their strong performance
in the first year of the 14 cubed plan three year plan has been built
around organic growth , efficiency improvements and a successful
acquisition programme

Many of the groups products and services provide solutions which help
address the global issues of environment control and protection, and
energy conservation . For example, the handheld XRF analyzers are used
in the analysis of hazardous substances in soil and our microanalysis
systems are used in the detection of asbestos fibres (Oxford , 2012).

A fair and open culture is fostered throughout the business in which
everyones views and contributions are encouraged and respected.
Business Managers are provided with practical guidance explaining the
group policies and standards of conduct to ensure these are maintained
.New employees are introduced to the companies culture and style
through an induction process which actively supports the corporate
strategy and more environmentally friendly (Oxford, 2012) .

CRITICAL ANALYSIS OF CSR
The recent global recession and prevailing economic downturn have
resulted in cuts to both government and private sector funding. The
demand for the Groups products may be lower than anticipated, which
has a negative impact on the profitability and financial returns of the
Group (Oxford, 2012).
The Group provides high technology equipment and systems to its
customers. There is always the risk of Failure of the advanced technologies
applied by the Group to produce commercial products. This can have an
adverse impact of the profitability and financial returns (Oxford, 2012).
The Group is exposed to raw material volatility. F or example the Group
relies on the purchase of a significant amount of copper for the
production of its superconducting wire. As copper prices rise, there is a
significant impact on the profitability and occasional disruptions to
production in such instances (Oxford, 2012).
The Group outsources a significant higher proportion of the cost of its
products to benefit from economies of scale and natural currency
hedges. The failures in the supply chain can drastically affect the sales of
the Groups products. This brings about dissatisfaction amount customers
and a negative impact on the Groups reputation (Oxford, 2012).

POLITICAL / LEGAL

The Group looks not only to improve the environmental performance of its
own operations but also manufactures equipment that supports
customers who have to comply with current regulations. Many of the
Groups innovative new products benefit the environment, for example
the recently developed Cryogen free products from NanoScience and
NanoAnalysis businesses replace the use of liquid helium , which is
dwindling and non-renewable resource. The new products are both safer
to use. These products are offered at competitive prices and are backed
by a global network of skilled support teams.
The Group introduced Anti-Bribery programme after the UK Parliament
introduced the Anti Bribery Act in July 2011.The Group is committed to
fostering a culture within the organization of zero tolerance and fully
supports the Anti-Bribery programme .In addition all its employees must
comply with any anti-bribery and anti-corruption rules derived from
relevant legislation and regulations (Oxford, 2011).
There are a number of European directives aimed at benefitting the
environment that are complied by the Group. Such directives include the
Waste Electrical (WEEE) Directive, the Restriction on use of Hazardous
Substances (RoHS) Directive ,the Registration, Evaluation, Authorization
and Restriction of Chemicals (REACH) Directive and the Energy Use of
Products (EuP) Directive (Oxford, 2011).

EXTERNAL
The Groups markets and applications serve a broad range of industries
and geographies . The diverse customer base provides resilience to
macro-economic pressures with its largest customer representing less than
7% of sales. The diverse geographies , especially exposure to emerging
markets supports their strategy for growth . The Group is currently
performing more strongly than at any time in its history and was admitted
to the FTSE250 London Stock Exchange Index in Sep 2011.
The group believes that integrity in dealing with customers is a prerequisite
for a successful and sustained business relationship. This principle governs
all aspects of the business. The group value its customers and the trust
they place in the group and will safeguard the information provided by
customers in accordance with relevant laws and contractual
commitments . Oxford instruments customers expect to receive and do
receive high quality reliable goods and services.
All companies in the Group work hard to establish mutual trust , respect
and mutually beneficial relations with its business partners , suppliers ,
banks and collaborative associates. The Strategic Sourcing Team regularly
inspects and audits supplies, and closely manage outsourcing to low cost
countries. Road maps and regular strategic reviews are in place for
strategically important suppliers . In accordance with ISO 9001 and ISO
140001, only quality approved organizations and used (Oxford, 2012)..
SOCIAL
Oxford instruments is committed to providing high standards of safety in
the working conditions for its employees and to the continued
improvement of its Health and Safety (H&S) performance. Two of the
groups major sites are now certified to the OHSAS 18001 Health and Safety
Management System standard and this, or similar standards , will be
implemented at its other sites. Health and safety training and awareness is
implemented on a site by site basis and tuned to the specific needs and
requirements of each site .
The Group recognizes that its employees are fundamental to its success.
The Groups aims to ensure there are equal opportunities for all employees
and that such decisions are based purely on merit. The performance of all
employees is measured against the Groups values through an annual
appraisal network process and competencies framework. Group
undertakes regular employee surveys and implements and reviews
resulting action plans accordingly.
The group is an active supporter of local , national and international
science communities both on a corporate level , a business group level
and an individual level. The group also sponsors a number of international
and national awards and events including the prestigious Sir Martin Wood
Prize through the Millennium Science Forum in Japan to promote scientific
exchange between the two countries (Oxford, 2012) .
The employees are encouraged to contribute to local charities using the
Give-As-You-Earn scheme, abd this year the group was awarded a
bronze award for Payroll Giving by the Institute of Fundraising.

TECHNOLOGICAL

Technology is vital for competitive advantage and is a major driver of
globalization. The group reviews sustainability performance of Group sites.
In its ongoing efforts to reduce the carbon footprint , the company
invested in equipment such as automatic meter reading ,sub-meters,
more efficient air conditioning chillers and lighting , and voltage power
optimization during the year 2010-2011.This has bought out significant
decrease in its energy consumption .

The Group acquired 100% share capital of Omicron Nanotechnology
(Germany) on June 2011 , Omniprobe Inc (Dallas, USA) on June 2011 and
Platinum Medical Imaging LLC (USA) on November 2011 .The integration
of the three acquisitions made during the year 2011 is proceeding
towards the towards the set plan and making a positive contribution to
the groups business . (Oxford , 2012).

The continual efforts made by the Group in the field of research and
development has enabled them to produce instruments like the
benchtop Nuclear Magnetic Resonance Anlayzer which is used for a
broad range of industries for quality assurance, production optimization
and research applications, among many others .
CONCLUSION
The diversity of the companys products and markets , clear customer
focus , the culture of innovation and the companys commitment to
attracting the very best talent in the industry has continued to drive the
growth of the business. It is the intention of the management to continue
to deliver value for the stakeholders of the company with wholehearted
care , passion and commitment for which Oxford Instruments is renowned
.