Pestle Analysis of St Mungo's Hostel

This assignment involves conducting a PESTLE analysis of St Mungo's hostel to understand its macro environment. The report includes an assessment of political, economic, social, technological, legal, and environmental factors affecting the organization. It is recommended that St Mungo's set up a new branch in London due to high demand for homeless services in the area.

Health Care
Environment

INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Health care sector covers those companies which engaged in providing medical services,
producing medical tools or drugs, offers health insurance and facilitate public with provision of
health care to patients. (Nurmi and Niemelä, 2018). Therefore, this assignment is all about
opening of non-profit organization whose name is St Mungo’s in City of Westminister in London
borough which is a charity and housing enterprise. Basically, this enterprise works with people
who are sleeping rough, who live in hostels and supporting to those individuals which are at a
risk of homelessness. Thus, PEST analysis is going to conduct on City of Westminister for
suggesting the St Mungo’s whether they have to open a new association or not.
PEST-
External factors are falls under PEST which means an organization needs to analyse the
outer world before opening a new business in order to understand the fluctuation of marketplace.
Assessment of external environment is really indispensable before opening a new branch in
London borough in order to make plans accordingly by understanding each and every aspect
(Dartey-Baah and Mekpor, 2017). For example; analysing of London market covers various
things such as; UK is considered as one of strongest players in international politics and having a
large role to playing in understanding future global policies (Cairns and et. al., 2013).
St Mungo’s
St Mungo’s is a charitable and housing organization performing with people who sleep
rough, live in hostels and providing services to those people who are at a risk of homelessness.
Thus, this organization would like to open their new centre in a London borough for expanding
their association in City of Westminister. Their main motive is to develop whole society with
best services whosoever are not able to afford their regular meals or living in hostels. Basically,
charitable organization always wanted to provide free facilities to their desired customers as well
as each or every individual who are in a need.
Hence, assessment of PESTLE is really useful for company before opening its branch in
London borough so that they can come to know about the changes which might incur in various
factors. Therefore, an appropriate assessment of London borough external environment needs to
be conducted which is discussed as follows-
Political- Economical-
 Financial crisis of 2008 leads to
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 Strong democratic traditions.
 Democratic parliamentary system
 Stable political environment
 Supportive council members
 Transparent public sector and
accountable
encourage City of Westminister to
come up with some more steps of
advancement.
 Budget of 2013/ Economy of City of
Westminister
 Inflation rate rise by almost 3% in 2017
 Economic condition from 1992 to
2012.
 Role of multinational organization in
economy development.
Social-
 Population of City of Westminister
 Living standard of people
 Secular state through immigration.
 Public norms, acts, beliefs, rules and
regulations for facilitating whole
community.
 UK is considered as “Big consumer
market”.
Technological-
 Emergence of advanced technology
helps in connecting people across the
nation. It means, technology plays as a
“Major contributor of UK economy”
 Advertisement of St Mungo’s across
the various region with the help of
advanced methods.
 Supporting in handling business
operations.
 UK as a key exporter of technology.
 Software of UK
Political –
 Strong democratic traditions:- City of Westminister is having very strong democratic
traditions and having a great respect for the rights of human beings and civil liberties. In
fact, public sector of nation is also very transparent and accountable. However, governing
bodies have developed monarchy by converted into a democratic parliamentary system
which is known as Westminster system. Legal bodies, executive and judicial functions
are entrusted into various separate bodies. However, executive authority is entrusted in
cabinet which is led by prime minister whereas legislative authority is assigned in a
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bicameral parliament and judiciary department is assigned in a system of court. Hence,
monarch, Queen Elizabeth II is considered as head of a state but this position is mainly
ceremonial. Furthermore, UK is now emerged from world wars as a most dominant
country and became one of the major force in global politics as well as consider as
permanent member of united nations security council and North Atlantic Treaty
organization (NATO). However, governing bodies of nation is also engaged in creating
a very stable environment for establishing a peaceful environment. Their main objective
is to provide equal rights to each and every member of society with best opportunities
and right to attain their set objectives.
 Transparent public sector and accountable- Public industry of a nation are totally
transparent because all the companies which were involved in offering public facilities to
the society will always share their programmes with whole community. In fact, announce
before conducting societal events as well as acquire opinion from them for understanding
the views or opinions of entire society. However, public entities are run and controlled by
governing bodies due to which government of a nation tries to discuss their programmes
or sessions for community or with various representatives of local bodies for
understanding the opinions of distinct individuals. Along with this, always take
responsibility for doing anything such as; development of public road, community road,
street lights, offering protection services, hospitality services and many more. Basically,
main objective of governing bodies to provide financial support to various public
enterprises in order to enforce them to develop the whole society in several ways. In fact,
their main objective is to come up with growth opportunity for common people and offers
free or reasonable services people to those individual who are not able to fulfil their basic
needs and demands. For instance; public sector involves in conducting various awareness
programmes and sessions for improving the knowledge of society about their rights and
authorities.
Economic –
 Financial crisis of 2008 - After the financial crisis of 2008 economy continues to be very
weak due to which governing bodies have supporting through unprecedented finance.
However, banking industry have not still recovered from the trauma and very much
worried about banking balance sheets which are yet remain. It means that economy is
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encountering a considerable headwinds from domestic as well as foreign woes. Thus,
fiscal consolidation have negatively affected the development of GDP due to which
governing bodies are facing large number of challenges in order to balance economic
development and deficit reduction. Therefore, because of stagnant growth budget of 2013
is still neutral in fiscally due to rise in taxes and cuts in expenditure is balanced by tax
cuts. Rebalancing of economy is done through private sector investment and exports by
minimizing the debt of nation. Furthermore, in almost 2013 budget, governing bodies
have decided to propose the minimization of corporate tax to 20% from April 2015. In
coming time period, governing bodies have decided to give ₤2000 to all the small and
medium size enterprises for boosting it at marketplace (Jones and et. al., 2017). As a
result, it will help corporate world in encouraging employment opportunity across the
public place which helps common people in attaining their set objectives or goals in a
defined time period.
 Budget of 2013/ economy of UK- Moreover, budget of 2013 also focused on promoting
sustainable energy and called for consultation of new tax incentives for promoting
investments. Apart from this, one of the most important aspects of UK economy is that
they are a permanent part of UN Security Council and consider as member of G8. On the
other hand, UK is also ranked as almost 60.4 percentile in terms of government of
stability as well as absence of violence in around 2011. Therefore, UK’s economic
enhancement has fully based on their strong industrial centres which is also beneficial for
City of Westminister. Majorly, in current times service sector of UK is overshadowing
the industrial centres in order to become key driver of economic development that will
act as a major advantage for St Mungo’s. Hence, this conversion is resultant into
unbalanced economic condition of London, south east to growth. Basically, City of
Westminister traditionally is at their forefront of economic progress. Along with this,
large number of multinational enterprises has emerged at marketplace which will
definitely help company in various ways such as; financially, technologically and so on.
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From the above graphical representation, it has been understood that economic condition
of UK has grown up from previous years due to the number of changes such as; emergence of
multinational organization which aids in providing employment opportunities to large number of
unemployed person. This diagram shows the condition of UK from 1992 to 2012 by analysing
the drastic changes which is faced by nation.
Social-
 Population of City of Westminister- City of Westminister is very many densely
populated developed place because large number of people is living their life from which
some are native, local, NRI, business purpose, educational, tourist and so on. In fact,
living standard which is enjoyed by people there is one of the best across the world. Most
advantageous things for St Mungo’s is that large number of people are fully based on
public health care services and there are number of special projects for children care,
unemployed person, disable and those who are senior citizens. Apart from this,
educational system is top most renowned and developed which seek the attention of large
number of international students. In fact, some of the youngsters are having dream for
completing their studies from London University because of its reputation at global
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marketplace. Moreover, UK is seen as home for numerous people which are belong from
distinct nations. Basically, from World War II UK is developed into multicultural, multi-
ethnic and secular nation by having large number of white majority as well as minority
communities from all over the world. In fact, living standard of common people are very
much highest internationally as well as system of social gathering is also one of bets
amongst the world (Joshi, Singh Ubha and Sidhu, 2012).
 Secular state through immigration- On the other hand, some of the other European
countries, immigration is playing major contribution is resultant into maximization of
population. UK have emerges as a secular community which covers people who are
belong from distinct faith. One of the most advantages thing of City of Westminister
which is beneficial for St Mungo’s is that schooling is mandatory for each and every
children who are in an age group of 5 to 16 whereas most of the children’s are attending
government funded schools. Thus, this association have an opportunity to facilitate those
children’s with best facilities by offering them shelter and resident for living. As UK is
very much popular for their educational system specially in higher education that seek the
attention of numerous of students across the global environment. Additionally, system in
England, Wales and Northern Ireland are very much broad and similar but Scotland is
having distinct educational system. For example; Education Reform Act 1988 introduced
the National Curriculum for the section of primary and secondary schools in UK. At the
same time, schools which are funded from governing bodies are not depend on various
norms, rules and regulations set by legal bodies as well as having a right to decide their
own curriculum. Additionally, NHS is one of the top most examples of non-profit
organization which was established in almost 1948 and act as single association for
public health in UK. The health and social care Act of 2012 was passed for betterment of
society by offering rights to community people in various manners.
Technological-
 UK as a key exporter of technology - Emergence of modern technology support an
association in attaining set objectives or target in a defined time frame. In fact, governing
bodies have support UK for establishing a surrounding conducive for development of
advanced technology in each and every sectors of industry. In fact, expenditure on
research and development or other initiatives for encouraging technology within private
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sector which resultant into emergence of UK has a key exporter of technology. Mainly,
UK is considered as most technologically modern nation across the global platform
because London is seen as a major hub for both financial and technological institutions.
In fact, various business organizations are developing new tools for offering best suitable
solutions to their end users. Along with this, emergence of advanced technologies
infrastructure aids in providing unlimited success opportunities to various upcoming
entepreneurs for commencing business at UK marketplace. This shows that,
technological industry is famous for major contributor for UK economy.
 UK Software- According to MarketLine, software of UK is lead to total revenues of
almost 15.9 billion in around 2011 by representing a compound annual development rate
(CAGR) of almost 2.2% in between 2007 to 2011. Apart from this, usage of technology
is enhancing at larger extent due to its effectiveness and benefits to the overall corporate
world. Hence, by analysing the success of modern tools and technology it is analysed that
St Mungo’s have an opportunity to developed their way of performing business (Culliton,
2013). However, numerous of investment and talent are emerging into this sector. For
example UK seeks the attention of almost £28bn technology investment from 2011 as
compared with nearly £11bn in France and around £9.3bn in Germany. This shows that,
UK is full of advanced technology which further facilitates St. Mungo’s while
performing their business activities.
Recommendations
Political- This shows that London borough in UK is now very much developed which is
really beneficial for the success of St Mungo’s because of government support. It means, City of
Westminister politics is very much stable and beneficial for development of an organization as St
Mungo’s can easily run their charity programmes by getting support from governing bodies also
(Grieves, 2010).
Economic- Throughout the analysis, it has been understood that St. Mungo’s will
definitely attain their set objectives by opening their new branch in City of Westminister of
London because this city is one of the most developed one in every terms. However, company
can easily improve their performance by fulfilling the needs of distinct desired customers. As a
result, easily get succeeded in establishing their positive image at community place by satisfying
needy people.
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Social- By analysing the social factor of UK it has been assessed that St Mungo’s have
also great opportunity to establish their new branch at London borough in order to gain
competitive advantage by fulfilling the needs of society people.
Technological- Adoption of Modern tools by St Mungo’s aids in accomplishing
business operations as well as association can easily provide best services to the desired
consumers.
Hence, it has been recommended that St Mungo’s have a great opportunity of set up a
new hostel in Hackney because high number of homeless people is identified at City of
Westminister.
CONCLUSION
From the above report, it has been summarized that PESTLE assessment is really very
much beneficial for success of an organisation because this help in understanding each and every
aspect before commencing the business. Throughout the analysis, it has been understood that
macro environment have a major impact on company success because whole business is
surrounded around external elements. Thus, assessment of macro factor is really advantageous
for organizational achievement as this will assist an enterprise in various manner .
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REFERENCES
Books and Journals
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL Analysis of Hacktivism Campaign
Motivations. In Nordic Conference on Secure IT Systems (pp. 323-335). Springer, Cham.
Bronskaia, T.A., 2018. Marketing environment analysis as the key component of the company’s
competitiveness evaluation. Журнал Белорусского государственного университета.
Экономика, (1), pp.93-101.
Dartey-Baah, K. and Mekpor, B., 2017. The leaders’ emotional intelligence: An antecedent of
employees’ voluntary workplace behaviour. Evidence from the Ghanaian banking
sector. African Journal of Economic and Management Studies, 8(3), pp.352-365.
Cairns, G and et. al., 2013. Scenario method and stakeholder engagement: critical reflections on
a climate change scenarios case study. Technological Forecasting and Social
Change, 80(1), pp.1-10.
Grieves, J., 2010. Organizational change: Themes and issues. Oxford University Press.
Jones, P and et. al., 2017. Designing an Institutional Network for Improving Farm Animal
Welfare in the EU. JCMS: Journal of Common Market Studies, 55(5), pp.1081-1093.
Torry, M., 2014. Managing the Pursuit of Welfare and Social Justice. In Managing Religion: The
Management of Christian Religious and Faith-Based Organizations (pp. 136-167).
Palgrave Macmillan, London.
Joshi, M., Singh Ubha, D. and Sidhu, J., 2012. Intellectual capital disclosures by Indian and
Australian information technology companies: A comparative analysis. Journal of
Intellectual Capital, 13(4), pp.582-598.
Culliton, M., 2013. An Organisational Development Project to Enhance Interagency Working
between the Health Service Executive and Voluntary Agencies.
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