Student Number: 1958598

Programme:(e.g. Business International Foundation

Management) Programme

Module Title: Global Business Environment Seminar Group:

Module Code: FN3001 Word Count: 1568

I confirm that no part of this assignment, except where clearly quoted and referenced has been
copied from material belonging to any other person e.g. from a book, handout, another student. I
am aware that it is a breach of UEL regulations to copy the work of another without clear
acknowledgement and that attempting to do so renders me liable to disciplinary proceedings.

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 Executive summary
The market in the present setting is bound with challenges and with the persistent interest to pick
up benefits it becomes significant that the business consistently update their methodologies. The
report hence takes a shot at delivering a PESTLE examination for understanding the difficulties
and chances of feasible vitality in the UK. The demonstration of innovative work is moreover
restricted because of the significant expenses of innovation related with the equivalent. In this
manner, one of the prime difficulties in the referenced situation can be an adjustment in the
mindset of the individuals that permits them to surrender the hesitance of surrendering non-
renewable energy sources. In any case, with the adjustment in the attitude of individuals and the
accessibility of assets, there stay more difficulties that can prevent the improvement of
sustainable wellsprings of vitality.

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 Table of Contents
INTRODUCTION.......................................................................................................................................3

ANALYSIS.................................................................................................................................................3

PESTLE...................................................................................................................................................3

CHALLENGES.......................................................................................................................................9

CONCLUSION.........................................................................................................................................10

Reference...................................................................................................................................................11

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INTRODUCTION

The market in the current context is laced with difficulties and with the continuous demand to
gain profits it becomes important that the business continuously update their strategies. The
report therefore works on producing a PESTLE analysis for understanding the challenges and
opportunities of sustainable energy in the UK.
The PESTLE analysis is termed as an auxiliary tool to clarify the position of a business
organization in between the socio-cultural, economic and political scenario, coupled with
technological status of sustainable energy in the future. It can help in understanding the prime
points to lay out innovative strategies for future

ANALYSIS

PESTLE

Factors Impact

Political Political instability The political developments

are likely to cause difficulties
in the domain of renewable
energy. In between the
presidential election the
global transition driven by
climate change the
development of renewable
sources of energy is an
immediate need (Shmelev and
van den Bergh, 2016). The
change in government
policies is likely to change the
fund allocated for the research
and development of

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 renewable sources of energy.
does having an unstable
government can create an
adverse impact on the
renewable source energy
industry (Boait et al. 2019)

Economic Inflation
The renewable source of
energy is an expanding arena
over the globe. The current
generation is exhibiting a high
level of awareness about the
change in climatic conditions
(Cowell et al. 2017). The
demand for or renewable
energy is likely to grow in the
future. Gaining control over
climate change is an
important force in supporting
the increasing request of
sustainable sources of energy.
Besides cutting down the
level of carbon emission and
the toxins, renewable energy
can provide a series of
advantages in regards to air
pollution and help as opposed
to fossil fuels. Until 2015
sustainable sources of energy
was termed as a biggest

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source of electricity
production and by 2021 the
improvement is expected to
drive the optimistic outlook
for renewable sources of
energy (Roche et al. 2017).

Financial practicality
associated with the mentioned
source of energy relies on the
radius of the expenditure and
capital available (Raugei,
Hutchinson and Morrey,
2018). The capital cost is
nearly all the economic
expense associated with a
sustainable source of energy.
Social acceptance is an
important factor in demand
improving knowledge of the
existing renewable energy
technologies and performance
can help in transition from
fossil fuels to renewable
energy (Zakeri et al. 2018).
Establishing the aspect of
price and the possible adverse
effect on the planet caused by
fossil fuels the
competitiveness of renewable

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energies can be enhanced.
Similarly the renewable
sources of energy are not
fixed to volatile raw materials
unlike coal or the other sort of
nuclear sources of energy
(Elgamal et al. 2019). The
expenditure of non renewable
sources of energy can be
subject to change even in a
stipulated time period
provided the market is
volatile. Events like the oil
crisis and walls have
negligible impact on
renewable sources of energy
does inflation change in
exchange rates have no effect
on renewable sources of
energy production. From an
economic perspective the
ancient source of energy is
the cheapest solution to
address the long-term risk of
inflation and market
fluctuation (Mirzania et al.
2019). However it should be
originally pointed out at the
operating cost can be relative
high for few economics

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 specially the developing
countries and the supporting
production of renewable
energy may have different
incentive like easily
accessible investment and low
amount of taxation (Tiwary et
al. 2019)

Social Change in lifestyle Attitude in regards to the use

of renewable sources of
energy is deeply in grave with
the public attitude towards
climate change and that is not
a good thing. People are
increasingly aware regarding
the change in climate there
remains negligible motivation
to make transition into new
energy solutions (Walsh et al.
2017). Informing the general
public is important when
coming up with ideas related
to sustainable sources of
energy. does it can be
conclusively stated the
potential savings again from
the reduced reproduction are
immense in compared to the
savings that can be gained by

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 making changes in current
lifestyle (Kerr, Johnson and
Weir, 2017)

Technological New technologies Technology within the

domain of renewable sources
of energy is fast evolving still
it needs immense support. For
the same reason more and
more countries are
investigating in regards to the
development and production
of renewable sources of
energy (Raybould et al.
2020). The current women
renewable sources of energy
can be termed as a minute
portion but it has the scope to
gain a bigger picture in future

Legal Laws of production Technology within the

domain of renewable sources
of energy is fairly new. The
laws related to copyright need
to be enacted before the
formula of producing energy
from the renewable sources
can be followed. the
systematic intervention can
cause delay leading to loss
within the industry
(Arvanitopoulos and

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 Agnolucci, 2019)

Environmental the green technology is seen

to be embraced by a variety of
people as they are are
environmental friendly
leading to high trances of
purchase of the mention mode
of technology (Boyd, 2018)

CHALLENGES

The challenge in the mentioned case can be termed as lack of adequate funds that could support
the research of sustainable sources of energy. However, even before the renewable sources of
energy such as wind and air energy could get prominence, nuclear energy came into attention. In
addition to that, it would be fair enough to understand the fact that the use of renewable sources
of energy is laced with the challenges. The first challenge that can be seen in the chosen industry
is the reluctance to change. The social factors such as daily life activities of people using petrol;,
diesel and other forms of fossil fuels, it becomes difficult for them to switch to electricity
powered cars due to poor services. However, smart businesses such as TESLA aim to leverage
the possible opportunity to manufacture electric cars to make entry within the market, enforcing
the use of electric cars among the consumers (Whitton et al. 2020). The act of research and
development is additionally limited due to the high prices of technology associated with the
same. As influenced by Want et al. (2017), fossil fuels have easy ways of extraction and produce
a number of alternative products that can be used. For instance, diesel is known to produce by-
products for the cosmetic industry. Thus, it can be fair enough to conclude that the industry of
non-renewable energy acts as a source of raw materials for many other industries. The fuel plays
an important role in events such as transportation. Research based study is seen to make use of
renewable sources of energy as it is expected not to give better service than the fossil fuels, for
the aviation industry (Gove et al. 2016).

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Thus, one of the prime challenges in the mentioned scenario can be a change in the mentality of
the people that allows them to give up the reluctance of giving up fossil fuels. However, with the
change in the mentality of people and the availability of funds, there remain more challenges that
can hinder the development of renewable sources of energy. As stated by Boait et al. (2019),
providing power on demand can be termed as a great challenge. As supported by Cowell et al.
(2017), renewable sources of energy such as wind and solar energy are highly dependent on
weather conditions, which can be highly unpredictable.
The unreliable power grid is one major challenge of after production. The production of energy
often demands transmission and there is a loss of energy during the course of transmission.
Deciding on the size is an obstacle that makes it difficult for the sustainable sources of energy
(Roche et al. 2016). The electricity generated through solar and wind energy cannot be stored,
thus to estimate the possible size of the power plant is a big puzzle in itself. Thus, it becomes
important to build the right kind of energy firm, so as to ensure that there is no wastage of
energy. In order to mitigate the possible risk related to the size of the firm, ASU successfully
distributed 90 installations of solar powered panels of different sizes (Zakeri et al. 2018).

CONCLUSION

The current demand of fossil fuels is always on the higher side, given the feasibility associated
with the same. However, through the current research report the right way of leveraging the
power of fossil fuels can be determined for better outcomes within the energy industry.

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Reference

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Boait, P., Snape, J.R., Morris, R., Hamilton, J. and Darby, S., 2019. The Practice and Potential of
Renewable Energy Localisation: Results from a UK Field Trial. Sustainability, 11(1), p.215.
Boyd, J., 2018. The progress of renewable energy community initiatives within the Netherlands
and the UK, from a strategic niche management perspective.
Cowell, R., Ellis, G., Sherry-Brennan, F., Strachan, P.A. and Toke, D., 2017. Rescaling the
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