External Environmental Analysis of Museum of London

This report analyses the external environment of Museum of London using PESTEL analysis and provides recommendations to develop marketing strategies and sales. It discusses the political, legal, economic, social, technological and environmental factors affecting the museum. The report recommends market segmentation, online marketing, CRM strategies and market research to differentiate from competitors. It also recommends strengthening relationships with established business organizations and the government to address the funding issue after Brexit. Document type: Essay. Subject: Marketing. Course code: MARKETING 1. University: Not mentioned.

Running Head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
The PESTEL analysis..................................................................................................................2
Recommendations........................................................................................................................6
Task 2...........................................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
The Museum of London is considered to be a charitable, award-winning institution
which is found to be funded by different organizations along with the individuals consisting of
the GLA and the City of London Corporation. This museum tells the story of the capital and it
visited by millions of people every year. It further holds a unique value hosting a range of
evening and the daytime events in London. It is the largest museum in the entire urban collect of
history of the world. In the year 1976, the museum was first opened being a part of the Barbican
Estate. The architects adopted the innovative approach to the design of the museum and the
galleries were well laid out. This museum holds the history of London starting with the
prehistoric to the modern times and situated on the London Wall (Museum of London 2019).
The museum consists of a significant series of galleries in the chronological order consisting of
the actual architects, the pictures, the models and the diagrams. It leaves a strong emphasis on
the discoveries of architecture, the urban development and the cultural and social life of London.
In this report, the current external environment leaving impact on the Museum of London will be
analysed. One recommendation will be made on the way the Museum can develop the marketing
strategies and sales related to the environment. The PESTEL analysis as a tool of external
environmental analysis will be selected.
Discussion
The PESTEL analysis
Through the PESTEL analysis the external environment of London will be analysed to
determine the influencing factors.
The Political and the Legal-

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The political environment of the United Kingdom is well-stable and has a positive
impact on the people of the country. The economic deterioration is being supported by the UK
government through many fiscal initiatives. In the year 2009, there has been an announcement on
helping the banks to restrict all the development of unemployment. Also, the Budget of 2009, all
the tax rates on highest group of income have been revised upto 5 %.
Brexit- The Brexit or the withdrawal of Britain from the EU has considerable impact on the
museum sector. More than 3,000 museums of the London face comparatively less uncertainty
due to Brexit than the banks and the businesses have faced. The serious question is regarding the
no-deal Brexit that brings a lot of chaos at the border. This scenario might have led to the
holding of many valuable objects for lengthy periods. This may create some new risks for the
valuable works and the museums may prefer to lend and borrow with the partners of Europe for
a certain period(Boasson and Wettestad 2016). The issue of funding also comes to the mind due
to the post-Brexit recession. The occurrence of Brexit is having an immediate influence on this
specific sector. Most of the Museums are losing the chance of being a part of international
cultural events. Since the funding of EU played a major role in the development of the cultural
sector, this sector might be facing some difficulties.
GDPR
The United Kingdom adopted the GDPR with the support of the Data Protection Act
2018. It automatically became applied to almost all of the members of the states and also other
international organizations dealing with the clients and the customers who have been the
residents of EU. Since, the GDPR is a regulation and not any directive, it did not need the
drawing up of new legislation. As per the new regulation of GDPR, the organizations and the
institutes will have to comply with the rules if they are keeping data of the citizens of the

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community and the country. It is evitable that the collection of personal data and information is
extremely important for the functioning of museums. Hence, it has become quite difficult for the
museums to comply with the regulations and tailor their procedures according to that (Boswell
and Rodrigues 2016). They are strictly instructed to follow the format of statements that collects
information only used for official purposes. The rules have also been changed in terms of
dealing with the historical data for loans, disposals, deposits and the acquisitions.
Economic factors
Although UK has undergone the growth of GDP upto greater extent, there have been
certain other significant aspects too leaving impacts on the cultural sector of the country.
Exchange rates
After the Brexit, the exchange rates are falling in the United Kingdom or there is a
devaluation in the fixed system of the exchange rate. It shows that the currency of UK is less as
compared to the other countries. Due to this depreciation, the exchange rates are going down
and the exports are becoming cheaper whereas the imports are becoming expensive. The
domestic firms are benefiting from the enhanced sales which may lead to the creation of jobs and
slow down the unemployment in the export industries. Pound has lost almost 30% of the value
against dollar and euro. This is quite disadvantageous for the consumers who buy the imports.
For the residents who involve in holidays abroad, the firms who buy some raw materials from
abroad, those people living on some fixed wages. The museums and the cultural sectors are
likely to make profit from this exchange rate because it will lead many people to visit the
museum from different countries.
Interest rates and Unemployment

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The BoE has followed an inflation-targeting system where there is an increase in the
percentage in terms of the price index of consumers that need to be maintained around almost
2%. On the other hand, the economic downturn of the United Kingdom has affected the
establishment of the jobs in the whole country. The rates of unemployment has been increasing
in the country and there is a reduction in the consumption that is correlated highly with the whole
economic cycle. The unemployment leaves negative impact on the participation of the tourism
and the aggregate unemployment is also bearing on these types of decisions developed by the
individuals in general terms. Since, the rates of unemployment are high in the United Kingdom,
people from other countries will not prefer to come to this country and join the ventures.
The social factors
In the United Kingdom, there age group of the working population is between 15- 64
which consists of almost 67% of the total population. Almost 20 % of the population are between
the age group of 0-14 and the 16% are more than the age of 65. This is the issue that can be
addressed by the rapidly ageing population. The rise of the dependency ration makes it
extremely difficult to maintain the whole standard of living dependent population. This is due to
the shrinking workforce and the government further faces this specific challenge of balancing
everything. It faces the challenge of maintaining an equilibrium of social-welfare and the future
development.
The level of education in the United Kingdom is found to be extremely sophisticated and
elevated. The tradition of education of the nation is constantly evolving holding the ancient
legacy. The qualifications of the United Kingdom are recognized and respected in the whole
world (Sameni et al.2015). Therefore, the education base of the country and the cultural heritage
might attract students from foreign countries and the visit the famous places to gain in-depth

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knowledge. The different art galleries of the country and the museums such as the Museum of
London can avail the advantage of this aspect. On the other hand, there is a high-standard
lifestyle led by most of the people in the country. However, the government has also faced
certain challenges with the inequality of income and disparity in the economic possessions. One
part of the society is extremely rich and sophisticated whereas the other part of the country is
suffering from poverty, unemployment, squalor and the like.
The technological
In the UK, it is found from a survey that, most of the people in the country are spending
7 hours on internet on an average basis. The subscriber of the internet is rising dramatically
showing that people are becoming dependent on the telecommunication and digital media upto
greater extent. The growth of modernity in the lives of the youngsters and the students has
increased (Sainidis and Robson 2016). This is due to their dependency on the electronic devices
and the media portals. On the other hand, the country has the most developed
telecommunication infrastructure in the whole world.
The environmental factors
In the country , there is a government department named as ‘Defra’ which monitors the
regulatory aspects and compliances of all the sectors of the country. The function of the
department is to empower the citizens in living lives in sustainable manner. The environmental
policy of the United Kingdom is founded on the command principles and the control hat may
give the polluters a standard (Nolan 2018). Even after the exclusion from the EU, the country has
been following the sustainability aspects in its businesses and operations.
Recommendations

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 From the external environmental analysis, it can be said that the Museum of London
should make use of the Market Segmentation to reach the correct consumers. The
academically and financially elevated and string segment should be targeted because they
are the ones who are likely to invest on the museum and the preserve the heritage of
London.
 They should also use On-line marketing to showcase their offering depicting how much
value is added to the country by the museums such as the Museum of London. Since ,
most of the people have become tech-savvy these days and there is strong internet usage,
a social media campaigning will be extremely useful (Bowdin et al 2006). Through the
online age and the social media sites, the Museum of London can easily send their
messages to people across the whole world and attract them to visit once.
 Another significant method will be the usage of CRM strategies to strengthen the
customer relationship management. The mire they will interact with the customers, the
mire they will be able to strengthen their customer base and fascinate more people to visit
the place. The funding issue after the Brexit, can be addressed in this manner (Wood
2015).
 The market research should be done in order to make use of the Differentiation from the
competitors. The Museum of London can offer some Light and sound program and
describe the heritage of the country and the place.
Task 2
After reviewing the external environment affecting the Museum of London, it is found
that the biggest barrier is the funding issue after the Brexit incident. Therefore, it can be
recommended that the London Museum should strengthen the relationship with the established

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business organizations of the country and the government too. This will help in gathering fund
for the heritage (Evans 2015). Moreover, people should be educated about the importance of
museums so that they can take the initiative to preserve the largest museums of the world that
reflects on the historical culture of the country. The schools and the universities should be
inspired and communicated through social media and lead they make other people to come and
visit the museum too. The CRM or the customer relationship management strategies would be
extremely useful in this regard.
Conclusion
Therefore, from the above discussion it can be said that, the Museum of London has
been holding the heritage of the country from an early age. However, various external events
such as Brexit, GDPR and others are having few impacts on the institution like this. The report
has analysed the aspects and provided some solid recommendations too which can be helpful for
this type of sectors in the future years.

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Reference
Boasson, E.L. and Wettestad, J., 2016. EU climate policy: Industry, policy interaction and
external environment. Routledge.
Boswell, C. and Rodrigues, E., 2016. Policies, politics and organisational problems: multiple
streams and the implementation of targets in UK government. Policy & Politics, 44(4), pp.507-
524.
Bowdin et al 2006. Events Management. 2nd Edition. Oxford: ButterworthHeinemann
Evans, N. 2015. Strategic Management for Tourism, Hospitality and Events. 2nd edition.
Abingdon: Routledge
Museum of London, 2019. Museum of London. [Online] Available at:
www.museumoflondon.org.uk [Accessed 13th December 2019].
Nolan (2018). Working with Venues for Events: A Practical Guide. Oxon. Routledge
Sainidis, E. and Robson, A., 2016. Environmental turbulence: impact on UK SMEs’
manufacturing priorities. Management Research Review, 39(10), pp.1239-1264.
Sameni, S.M.T., Gaterell, M., Montazami, A. and Ahmed, A., 2015. Overheating investigation in
UK social housing flats built to the Passivhaus standard. Building and Environment, 92, pp.222-
235.
Sousa, G., Jones, B.M., Mirzaei, P.A. and Robinson, D., 2017. A review and critique of UK
housing stock energy models, modelling approaches and data sources. Energy and
Buildings, 151, pp.66-80.

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Wood (2015). Key concepts in Hospitality Management. London. Sage Publications