Pest Analysis of Hackney for St. Mungo's: Political, Social, Economic, and Technological Factors

This report performs a PEST analysis in the London borough of Hackney to ascertain its viability for the opening of a new St. Mungo's. It explores the political, social, economic, and technological factors that can influence the performance of the business. The report recommends that St. Mungo's should open its branches in Hackney due to the high number of homeless individuals in the area. The charity organisation should construct hostels to house the homeless and the rough sleepers. Additionally, St. Mungo's should take advantage of the technological advancements in Hackney to identify and resettle the homeless individuals. The charity organisation should also partner with the local churches and mosques to provide accommodation to the homeless individuals. Lastly, St. Mungo's should work closely with the local authorities to solve the overcrowding issues in Hackney.

Pest Analysis of Hackney 1
PEST ANALYSIS OF HACKNEY
By [Name]
Course
Professor’s Name
Institution
Location of Institution
Date

Pest Analysis of Hackney 2
Executive Summary
St. Mungo’s can rely on PEST analysis to determine whether to establish a center at
London borough of Hackney or otherwise. The determinants of PEST analysis include political,
social, economic, and technological factors. On the political front, Hackney JSNA
accommodates the rough sleepers for six months. Additionally, JSNA has proposed the
construction of innovative hostels to house the homeless individuals. On the social front,
Hackney has the highest number of homeless individuals in London. Men make up to 95% of the
rough sleepers. Hackney JSNA has committed millions of Euros to tackle the homeless
individuals. A section of the funding also tackles the overcrowding issues. Hackney has the
required technological advancement to tackle homelessness. The existence of website and mobile
app facilitate the identification and resettlement of homeless individuals. The determinants of
PEST encourage the establishment of a new centre at Hackney. Therefore, it is recommended
that St. Mungo’s establish a center at London borough of Hackney.

Pest Analysis of Hackney 3
Introduction
A PEST is an acronym for four macro-environmental factors which include political,
technological, socio-economic, and economic determinants (HO, 2014). PEST analysis is a tool
that organisations use to organise, evaluate, and discover the macro-environmental factors that
can influence the performance of their businesses. The framework explores the threats and
opportunities due to technological, social, economic, and political forces. The findings from the
PEST analysis direct the strategic planning of the institution. Additionally, the results from the
framework help the workers of the organisation in conducting informed market research. Other
forms of analyses like SWOT, SOAR, and risk depend on the outcome of the PEST analysis.
St. Mungo's is a registered charity organisation in England. The main aim of the
institution is to assist individuals who are homeless (Bagnall et al., 2016). The charity
organisation started supporting individuals who sleep on the streets from the year 1969. The
institution is one of the largest providers for the homeless in England. St. Mungo's provides both
support and bed to thousands of homeless individuals across the southwest and southern England
every night. The organisation also has a phone line, mobile app, and a StreetLink website where
the homeless individuals can access information about their services. This report will perform a
PEST analysis in the London borough of Hackney to ascertain its viability for the opening of a
new St. Mungo's. It will also make five recommendations about the possibility of opening a new
Mungo's centre in Hackney.
PEST TABLE
Political (Local borough plan for the future
and government policy)
i. Hackney JSNA provides
Social (Facts and Figures about Borough
population)
i. Hackney has the highest number of

Pest Analysis of Hackney 4
accommodation for homeless people
for not more than six months.
ii. Hackney JSNA has proposed the
construction of innovative
accommodation for rough sleepers.
iii. Hackney JSNA has proposed the
construction of additional rooms to
prevent overcrowding in the city.
iv. Hackney CCG has funded numerous
hostels to open in 2020.
v. Hackney CCG proposes the
empowerment of charity organizations
to accommodate rough sleepers
homeless people (130) in 2017.
ii. Hackney ranks sixth in London as far
as rough sleepers are concerned in the
years 2012/2013.
iii. 95% of the rough sleepers are men
according to 2012/2013 statistics.
iv. A majority of city dwellers have good
health
v. A majority of Hackney residents are
white and speak in English
Economic factors
a) JSNA has committed £3 million to
tackle homelessness over the next three
years
b) Hackney CCG has committed £5.6
million to accommodate the rough
sleepers over the next four years
c) Hackney JSNA has invested more than
Technological determinants
a) Hackney has developed a mobile app
that collects information on the
homeless and street sleepers.
b) JSNA has provided a toll-free
telephone number that the homeless can
use to reach the authorities.
c) CCG has developed a website that

Pest Analysis of Hackney 5
£5 million to solve the problem of
overcrowding.
d) JSNA has also set aside more than £3
million to build more hostels.
e) CCG has committed resources to move
rough sleepers from the streets of
Hackney.
provides information on the total
number of people living in hostels.
d) Hackney JSNA has a website where the
public can learn about their various
charity services
e) The JSNA website also contains
statistics of the rough sleepers and the
homeless.
Political Factors
Hackney JSNA provides accommodation for the homeless and the rough sleepers for six
months. For the six months of stay, the authorities assist the homeless individuals to acquire their
own houses (Potter et al., 2015). In the years 2012/2013, the city administrators availed
temporary accommodation to both the homeless and those awaiting the settlement
accommodation offer. In 2012/2013, the city received more than 36 applications from the
homeless individuals (Bertotti et al., 2015). The request for temporary accommodation has been
increasing steadily in the last one and a half a year. The city administrators expect the number of
applications to double in the next two years. The homeless and the housing needs team is
working with the authorities to solve the issue of homelessness. The team has recommended the
construction of an additional fifty houses to curb the problem.
Hackney JSNA has proposed the construction of innovative accommodation for the
rough sleepers. Additionally, JSNA has created service models to support the individuals
sleeping on the streets of Hackney. The city has partnered with St. Mungo’s to construct new

Pest Analysis of Hackney 6
hostels which will accommodate the long-term rough sleepers (Minas, and Enroth, 2015). The
administrators of Hackney understand the difference between the transient rough sleepers and
their long-term counterparts. The city has constructed a hostel called The Lodge to accommodate
the street sleepers (Watt, 2018). The hostel provides accommodation in the hotel-style model
thereby abandoning the traditional fashion. The Lodge not only houses the rough sleepers but
also support and engage them. Hackney is also liaising with local churches to provide
accommodation to the homeless. Broadways are also emerging as a viable alternative that offers
temporary housing for the rough sleepers. The CCG is also trying to support the street sleepers
by getting them jobs that can boost their finances and enable them to afford accommodation.
Social Factors
Hackney ranks 6th as far as the number of rough sleepers is concerned in London
(Fitzpatrick et al., 2015). Rough sleeping is a visible type of homelessness. Therefore, the
ranking is an alert that the administrators should work together with the charity homes to
accommodate the rough sleepers. The process of helping the homeless is a challenge in the entire
London city (Parsons, and Pettinger, 2017). The rough sleepers are exposed to various crimes
due to the poor security in the streets. Individuals sleeping on the roads are also vulnerable to
alcoholism and drug abuse. Additionally, the rough sleepers are at risk of acquiring mental and
physical illnesses due to the unfavourable living conditions in the streets. Recent research has
indicated that numerous issues push individuals to sleep in the streets. However, a group of
rough sleepers refuses to receive support from the government and charity organisations.
95% of rough sleepers in London are men according to the 2012/2013 statistics
(Hornigold, Johnston, and Llamas, 2018). Additionally, 84% of the street sleepers are between
the ages of 25 and 56 years. 11% of the rough sleepers are above the age of 56 years. Majority of

Pest Analysis of Hackney 7
the street sleepers were UK nationals while the remaining population hail from the rest of
Europe. Majority of the rough sleepers have a mental illness, drug abuse, and alcoholism issues
(Sanders, and Albanese, 2017. In comparison to other homeless individuals, the rough sleepers
have the worst health status, a condition that calls for the intervention of the authorities. Statistics
also show that homeless individuals visit the acute health facility services three times above the
others. The high level of hospitalisation presents an economic burden to the government of the
city. Rough sleepers also report an elevated prevalence of diseases like tuberculosis. Therefore,
the charity homes should intervene to accommodate the rough sleepers for the sake of good
health.
Economic Factors
Hackney JSNA has committed £3 million to tackle homelessness over the next three
years (Buck, and Jabbal, 2014). The funds target three main areas including the construction of
hostels, catering for those at risk of homelessness, and resettling the rough sleepers. The JSNA
plans to partner with charity homes like St. Mungo’s to solve the homelessness menace in
Hackney (Parker-Radford, 2015). The authorities intend to construct fifty units to accommodate
those at risk of homelessness. JSNA also plan to use part of the allocated funds to develop
temporary accommodation for individuals who are on the verge of getting new jobs. The
authorities intend to furnish the housing units per the preference of the homeless individuals.
JSNA also plan to pay the churches and mosques to accommodate the rough sleepers at night.
Other creative accommodation involves erecting tents to contain those opposed to moving into
the hostels developed by the charity homes.
CCG has set aside more than £5 million to solve the overcrowding issues in Hackney
(O'Brien, Greatley, and Meek, 2015). Overcrowding results in undesirable conditions like the

Pest Analysis of Hackney 8
spread of diseases like asthma and respiratory complications. Hackney plans to collaborate with
charity organisations in building more housing units to solve the overcrowding problem. The
issue has pushed certain individuals to the streets where they call home. The authorities are also
planning to expand the walls of the existing houses to create sufficient space for the dwellers.
CCG also resolved to relocate other individuals to uninhabited sections of the city. People who
live in overcrowded places are at risk of becoming homeless since such areas are prone to
domestic violence (Bartlett et al., 2016). Therefore, the city authorities should use part of the
funding to curb the impending homelessness. The authorities should urge the landlords to lower
the rents so that every citizen can afford a spacious apartment in Hackney.
Technological Factors
Hackney has developed a mobile app to collect information on the homeless and the
rough sleepers (Greene, 2014). The residents of Hackney can notify the relevant support groups
about the whereabouts of the rough sleepers and the homeless. Once the charity homes identify
the location of the street sleepers, they approach them and solve the accommodation issue. The
mobile app is also a source of information for other well-wishers. The app has a contribution link
where the public can obtain information on how to support homeless individuals. The well-
wishers can also offer an extra apartment to the charity homes for the accommodation of the
rough sleepers. A functional toll-free mobile number also exists in the application. Members of
the public are free to contact the local authorities in case they spot a rough sleeper or a homeless
individual (Dorney-Smith et al., 2016). Therefore, the mobile application is facilitating the
accommodation of the homeless people.
Apart from the mobile application, Hackney has a functional website where the public can
access statistics of homeless individuals (Petty, 2016). The website developers always update the

Pest Analysis of Hackney 9
information on a daily basis. The national executive requires the knowledge to make a general
budget for the people of Hackney. Charity homes also need information on the website to
estimate the number of hostels that can accommodate homeless citizens (Ramos, 2018). From
the website data, members of the public can determine the sufficient contribution towards
helping the rough sleepers. The website also notifies members of the public about the efforts that
local authorities are making to accommodate the homeless individuals. The charity homes
associations are taking advantage of the website to showcase the hostels for helping the rough
sleepers. Additionally, the charity homes associations can use the statistics from the website to
request for government assistance. Therefore, the website is a valuable source of information.
Recommendations
It is recommended that St. Mungo's should open its branches in Hackney due in no small
number of homeless individuals in the area. The charity organisation should construct hostels to
house the homeless and the rough sleepers. According to 2017 statistics, the district had 130
homeless individuals (Fallaize et al., 2017). The vast numbers make accommodation to be a
priority issue in Hackney. Therefore, the charity Housing association should collaborate with the
local authorities to accommodate the rough sleepers. Secondly, St. Mungo's should set up
additional houses in Hackney since the area has a strong political will for assisting the homeless.
The quest of the local authorities to provide temporary accommodate indicates their urge to
accommodate the rough sleepers. Additionally, the fact that the local authorities are providing
innovating accommodation to the homeless should encourage St. Mungo's to contribute to the
course. Thirdly, the registered housing association should take advantage of the favourable
economic situation of the region to construct hostels for accommodation. The national
administration has set aside £3 million to settle the homeless. St. Mungo's should request for

Pest Analysis of Hackney 10
financial support in their quest of providing shelter. The organisation should also take advantage
of the overcrowding funds to construct additional hostels.
Fourthly, Hackney has the necessary technological advancement that encourages the
development of accommodation hostels. St. Mungo's should rely on the information on the
website before constructing accommodation units. The data from the mobile application and the
website will help the organisation to determine the number of hostels to build. Therefore,
technological advancement encourages the construction of accommodation houses. Fifthly, St.
Mungo's should construct accommodation hostels due to the undesirable implications of sleeping
on the streets (Cooper, Graham, and Himick, 2016). The rough sleepers are vulnerable to both
mental and physical ailments. Additionally, homeless individuals are susceptible to theft and
other criminal activities. The above recommendations should encourage St. Mungo's to construct
housing units to accommodate the homeless and the rough sleepers.
Conclusion
PEST stands for the four macro-environmental factors which include political,
environmental, social, and technological determinants. St. Mungo is a registered charity
association which accommodates the homeless and the rough sleepers in London. Hackney
JSNA help homeless individuals for not more than six months. Additionally, JSNA has proposed
the construction of innovative units to accommodate the rough sleepers. The local authorities are
also liaising with churches to house the homeless individuals at night. 2017 statistics indicate
that 130 individuals were homeless in Hackney. Moreover, 95% of the rough sleepers were men
according to the 2012/2013 statistics. The large numbers are a concern to the local authorities
and the charity associations. Hackney has set aside sufficient funds to tackle homelessness and
rough sleeping. The local authorities have committed £3 for the homeless and additional £5

Pest Analysis of Hackney 11
million to counter overcrowding. Hackney also has the necessary technological advancement to
tackle homelessness. The locality has a mobile application that helps them to gather information
on the number of people without homes. It is recommended that St. Mungo's should construct
new hostels in Hackney due to various reasons. A large number of homeless individuals at the
region should convince the housing organisation to swing into action.
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Pest Analysis of Hackney 12
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