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PESTLE Analysis - UK

What is PESTLE analysis?
• PESTLE stands for - Political, Economic, Sociological, Technological, Legal, Environmental. • To help make decisions and to plan for future events, organizations need to understand the wider ‘micro-economic’ and ‘macro-economic’ environments in which they operate. • Specifically a PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for an individual business or organization.

About UK
• Official Name • • • • • • • • • Capital Population Area Currency Religion Literacy Languages Major Cities Climate United Kingdom of Great Britain andNorthern Ireland London 62.2 million 244,108 sq km Pound Sterling Church of England (Anglican), Roman Catholic, Church of Scotland (Presbyterian), Muslim 100% English, Welsh, Scots and Gaelic London, Manchester, and Birmingham Moist with moderate temperatures

• The United Kingdom is 23rd in world population, with about 61 million people. It is 6th in GDP, with about $2.9 trillion. And it is 4th in military expenditure, with about $61 billion per year.

Political MAP of UK

Polotical
• Government Type : Constitutional monarchy. • Constitution : Unwritten; partly statutes, partly common law and practice. • Political parties : Conservative, Labour, Liberal Democrats, UK Independence Party, British National Party, Green Party; also, in Scotland -- Scottish National Party. Wales -- Plaid Cymru (Party of Wales). Northern Ireland -- Ulster Unionist Party, Social Democratic and Labour Party, Democratic Unionist Party, Sinn Fein, Alliance Party, Progressive Unionist Party • Scotland's National Party's long term plans to split off from the UK are on indefinite hold due to the economic downturn. • Scottish independence: Seven months to save UK, Cameron says • David Cameron has urged the rest of the UK to tell Scottish voters to reject independence saying he could not bear to see the country "torn apart".

Economic
• Economically, the UK had too many eggs in one basket--too much of their economy is based on complex financial services and they are taking a worse hit to their economy than most developed countries. • The first country in the world to industrialize in the 18th and 19th centuries. • The 6th largest economy in the world by nominal GDP

The UK economy grew by 0.7% in the fourth quarter of 2013, down slightly from 0.8% in the third quarter of the year, Growth best since 2007

The UK economy will grow by 2.5% this year and 2.1% in 2015, the National Institute of Social and Economic Research (NIESR) forecasts

UK Export comparison

Social
• Socially, this class-conscious society will carry on, with too big of an underclass being supported by too small of a middle class. • One tends to think it will boil over at some point, but the stolidity and placidity of England seems never ending. • The NHS (National Health Service), the state-supported healthcare system, has improved dramatically, although it could still get a lot better, and people know it.

63 % of the population can afford the full range of social activities One in 10 of the population is excluded by lack of money from participation in five or more social activities, 20 % from three or more, and 27 % from two or more.

Technology
• Technologically, the UK is still a hotbed of innovation and still resolutely unable to exploit it. Oxbridge (Oxford and Cambridge) still are 2 of the top 10 universities in the world, and the Russell Group of universities rival the Ivy League in America. • The UK has claim to 23 Nobel prizes in the life sciences. (medicine and chemistry). • UK researchers produce 16 research papers per US $1 million of research funding (compared with 9.2 papers in the U.S. and 3.6 in Japan)

Legal
• Legally, the UK has more problems than they care to admit. • There is corruption in high places--witness BAE's dodgy deal with the Saudis some years back, a deal that still goes uninvestigated.

• There are also worrying signs of the UK backing away from important freedoms, such as jury trials.
• Terrorism is being used as an excuse for taking away too many liberties.

• Legal jurisdictions in the UK:
– England and Wales - English law - Rule on both civil (High Court of Justice ) and criminal (Crown Court) matters – Northern Ireland - Common law system - It is administered by the courts of Northern Ireland, with ultimate appeal to the Supreme Court of the United Kingdom in both civil and criminal matters – Scotland - Unique legal system with an ancient basis in Roman law - The chief courts are the Court of Session, for civil cases, and the High Court of Justiciary, for criminal cases

Environment
• Environmentally, the UK is clean and green and worried about CO2. • They have made some of the most ambitious pledges about going even greener.

• They are comply with all relevant environmental legislation, and with any other environmental obligations, requirements or commitments • Settled Environmental objectives and targets for activities having the most significant impact

• Procurement influence to deliver more sustainable outcomes through working with suppliers and contractors • Monitoring and continually improving the environmental impact of business travel as a global organization and explore innovative mechanisms to deliver this international work effectively • Usage of skills and strengths as an organization to promote key sustainability messages globally, which also supports engaging with the climate change agenda.

SWOT Analysis
• Strengths – Has the economic resources to survive – Good industrial relations – Political willingness to adapt to changing world – Good education system compared to most countries – English as first language and is the world language therefore improves business. • Weaknesses – Strong pound makes exports expensive – Skills shortage – Not enough R+D – Inefficient industry

• Opportunities – Reductions in barriers to trade therefore increasing trade partners – Fill skills gap from migrants( Proposed policy on CAP on migration however may be otherwise) – Larger market in which to trade
• Threats – Increased competition due to cheaper labour etc – Businesses relocated abroad due to cheaper costs – Reduced E.U. spending on UK as new countries require investment – Cheaper imports from abroad