Executive Summary
This report has analysed the problems faced by the client, LSST, in its industry. It breaks down the problem and critically analyses the important areas for the client, such as the competitors, the external factors influencing, and the target customer market. It has used analytical tools such as PESTLE, Porter's five forces, and the STP model to find out the problems faced by the company. With the help of these, it has effectively identified the issues such as intense market competition, resistance to change among the staff, and the inadequate digital infrastructure.
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Introduction
Business consulting refers to a service that includes providing expert, objective advice and services to organisations to help them improve the performance, solve the problems, and achieve goals by analysing the issues, designing solutions, and guiding the implementation process. The business consulting firms often provide a significant number of different solutions that carry varying characteristics and attributes for a varying number of users or customers in different sectors (Tarnanen, 2021). The aim of this report is to provide an understanding of the client project and to identify the problem faced by them.
Introducing the Client
The client for this project is LSST, which was founded in the year 2003 by Syed B. A. Zaidi (LSST, 2025). LSST stands for the London School of Science & Technology, which is a private higher education provider. The client seeks a solution for the challenges it faces in terms of staff engagement. It wants a solution that would help in solving the challenges, such as the active involvement of the staff, along with dealing with the performance and new digital methods of operations in the organisation.
Critical analysis of the problem
Porter's Five Forces
The Porter’s Five Forces is an analytical tool that was first proposed by Porter in the year 1979 in his paper in Harvard Business Review (Pangarkar and Prabhudesai, 2024). The five forces for elements under this tool are: Threat of New Entrants, Threat of New Substitutes, Rivalry amongst Existing Competitors, Bargaining Power of Buyers, and Bargaining Power of Suppliers (Ndzabukelwako et al., 2024). Below is an evaluation of the competitors and the competitive business market of LSST to critically identify and break down the problem faced by the organisation in this area.
Threat of New Entrants: This factor evaluates how easy it is for the new organisations to enter the market (Quantive, 2025). Suppliers typically include academic staff, technology providers, and physical resources. However, good-quality academic staff are crucial to the reputation of the institution. The universities, therefore, will compete for and retain top talent to maintain or improve their position in rankings and attract top students, thereby granting that elite and quality staff provide some leverage despite the large number of people in the field overall. Thus, based on this, it can be stated that LSST faces a high to moderate threat in this factor.
Threat of New Substitutes: This force helps in identifying the availability of the substitutes in the market and how easily customers can switch among them (Martin and Uzialko, 2025). Since the availability of the substitutes is substantial, it can be stated that the threat level is high. This includes the public universities, apprenticeships, professional certifications, corporate training, and free online courses. These alternatives force the private providers to continuously differentiate their value proposition.
Rivalry amongst Competitors: It analyses the rivalry among the competitors and under what terms the competitive rivalry is likely to be high. This is the most significant force, driven by the high number of competitors, slow market growth in some areas, and high exit barriers. The top competitors of LSST in the UK education sector included Aston, Heriot-Watt University and Newcastle University (Tracxn, 2025). Competitors fight for market share through reputation, price, quality of education, and student support services. Thus, the threat in this factor can be considered to be high.
Bargaining Power of Buyers: Students who are the buyers have significant power. They are price-sensitive, have access to vast information for comparison in terms of rankings, and the student reviews, and low switching costs after initial enrolment. Providers must work hard to attract and retain them, leading to competitive offerings and pricing. LSST, thus, may face a high level of threat in this condition and may have to keep its buyers in mind before implementation of any activity or practice.
Bargaining Power of Suppliers: Suppliers typically include the academic staff, technology providers, and the physical resources. While a few high-profile academics may have high individual power, the general supply of qualified staff is large. However, the quality academic staff are crucial to the reputation, giving them some leverage. Therefore, based on this, it can be stated that LSST faces a moderate to low threat in this force.
STP
The STP model is defined as the strategic tool in marketing that actively employs a consumer-centric approach for identifying its target audience (Mailchimp, 2025). The main elements under this are Segmentation, Targeting, and Positioning (Correia and Rodrigues, 2023). Below is the STP analysis of LSSTR to identify its target market.
Segmentation: The main objective of this element is to illustrate and create different segments for the customers of the organisation, depending on a particular criteria of the brand’s choice. Demographically, LSST targets individuals of all backgrounds, abilities, and ages. Its campuses are located in London, Luton, and Birmingham, targeting specific geographic areas with diverse populations (LSST, 2025). Adding on, psychologically and behaviourally, the organisation attracts those who value quality education, a supportive and inclusive environment, and flexible learning opportunities.
Targeting: This element evaluates each of the segments and then targets the most suitable segment (Mailchimp, 2025). The primary target market for LSST is a diverse student population seeking accessible, career-oriented higher education. This includes individuals who prioritise the potential for personal and professional growth over traditional university experiences, such as extensive extracurricular activities or sports.
Positioning: This element helps in creating a detailed marketing strategy for reaching out to the chosen segment of the company or organisation (Mailchimp, 2025). LSST positions itself as an inclusive, inspiring, and quality-focused institution that removes barriers to learning. It emphasises its high student satisfaction rates in teaching, academic support, and learning opportunities, aiming to provide a supportive environment that equips students with job-ready skills.
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High Quality |
High Price |
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Low Price |
Low Quality |
Figure 1: Positioning Map
(Source: Created by the learner)
PESTLE
PESTLE Analysis is defined as the strategic framework which is mainly used for evaluating the business environment of the firm or business (Peterdy, 2025). Below is the PESTLE analysis of the external factors that may affect the operation of LSST.
Political Factor: The political stability index of the UK was recorded to be 0.51 points in the year 2023, which showed a downward slope since the year 2022, when it was 0.53 points (GlobalEconomy, 2025). Thus, based on this, it can be stated that the human resource function of the LSST may be impacted by creating significant uncertainty in the recruitment process, the increased financial pressure, potential staff turnover, and the need for heightened compliance with the evolving regulations.
Figure 2: Political Stability Index
(Source: GlobalEconomy, 2025)
Economic Factor: The inflation rates of the UK were recorded to be 3.2% in the year 2025, which showed a positive side as it fell from 3.6% in October of the same year (Trading Economics, 2025). Due to this, LSST may face a slight easing of the immediate pressure on the salary increases demands and potentially stabilise the operational budgets.
Social Factor: The population rates of the UK were recorded to be 69,749,169 in the year 2025 (Worldometers, 2025). This also gives rise to the demand for flexible work conditions and inclusion at the workplace. Therefore, it can be stated that the human resource department at LSST may face an intensifying competition for the talent, diversifying the student and staff populations, and increasing the overall demand for the educational services.
Figure 3: Population Rate
(Source: Worldometers, 2025)
Technological Factor: More than 68% of the total British companies have been actively investing in the digital HR tools. This has led to the struggle of the workers to use them effectively in daily work (Faragher, 2023). This may help transform the HR department from a traditional at LSST, along with allowing the administrative function to become a more strategic.
Legal Factor: The employee data protection is governed by the UK GDPR and the Data Protection Act 2018, along with the employment contracts and workplace policies (Contend Legal, 2025). Due to this, the human resource department at LSST may have to maintain the recruitment, payroll, and training, requiring new processes, to comply with the regulations to avoid hefty fines and reputational damage.
Environmental Factor: A sustainable workplace culture is defined as the aim of fostering a culture where all the employees feel a sense of empowerment and can make a difference both in the company and in the community as a whole (Abhinaya, 2024). This may help the human resources at LSST to enhance the talent acquisition and retention, along with improving the employee engagement and the well-being, driving innovation, and ensuring the long-term viability and reputation of the organisation.
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Identifying the Problem
Based on the above analysis, it can be stated that the top three issues that may be faced by LSST are resistance to change, the inadequate digital infrastructure or skills, and intense market rivalry. These are the top three issues because they affect the ability of the institution to attract, manage, and retain the talent in a highly competitive, rapidly evolving sector. If faculty and staff are reluctant to adapt to the new technologies or methodologies, HR struggles to foster a culture of innovation and efficiency, leading to a/the lack of competitiveness and potential failure to meet the strategic goals. Moreover, inadequate infrastructure and skills directly hinder the operational efficiency, data analysis for decision-making, and the ability to offer a competitive advantage, making the institution less attractive to top talent. Additionally, high staff turnover is disruptive and costly, making the ability to manage talent a core strategic imperative for HR. Thus, the effectiveness in this area directly impacts the reputation and ability to deliver quality education, a key differentiator in a crowded market. And these are the reasons behind choosing the mentioned issues.
Conclusion
In conclusion, it can be stated that this report has effectively addressed the problems that are faced by the organisation in terms of its human resources operations. Among the key findings of this report, it is identified that the main issues faced by LSST in its human resources include resistance to change, the inadequate digital infrastructure and skills, and intense market rivalry. The report used analytical tools for the identification and analysis of the report's findings if the report was by the organisation in various aspects.
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