PEST Analysis: London Borough of Hackney

This report conducts a PEST analysis in the London borough of Hackney to gauge whether St. Mungo's should open a center at the area. It provides recommendations on the factors making it possible for the organization to open a center at Hackney.

London Borough of Hackney 1
PEST ANALYSIS: LONDON BOROUGH OF HACKNEY
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Introduction

London Borough of Hackney 2
PEST is an acronym for four major macro-environmental factors which include
technological, economic, political, and socioeconomic determinants (Ho, 2014). Organizations
apply PEST analysis to discover, analyze, and evaluate the macro-environmental determinants
that can affect the success of their enterprises. The PEST analysis framework looks at the
opportunities and threats due to political, economic, social, and technological factors. Institutions
rely on the results from PEST analysis to draft their strategic plans. Furthermore, the findings
from the analysis assist employees of the firm to conduct adequate market research. SOAR,
SWOT, risk and other forms of studies rely on the conclusions from PEST to make the findings.
St. Mungo’s is a charity home organization registered under the England’s Company Act
(Forward, 2015). The primary objective of the institution is to assist homeless and rough sleepers
in London. The charity firm began supporting the rough sleepers and other homeless individuals
in 1969. St. Mungo's is one of the largest homes for the homeless in the UK. The organization
provides both bed and financial support to hundreds of rough sleepers across the southern and
southwest part of England each night. The firm has a StreetLink website, mobile app, and a
phone line that assist the homeless in accessing its various services. This report will conduct a
PEST analysis in the London borough of Hackney to gauge whether St. Mungo's should open a
center at the area. It will also provide five recommendations on the factors making it possible for
the organization to open a center at Hackney.
PEST TABLE
Political (Local borough plan for the future
and government policy)
 Hackney JSNA offers accommodation
for six months for the homeless
individuals.
 Hackney JSNA has established
innovative accommodation units for
the street sleepers.
Social (Facts and Figures about Borough
population)
 Hackney streets contain the most
significant number of homeless
individuals (130 people) according to
2017 statistics.
 Hackney has the sixth highest number of
rough sleepers in London according to

London Borough of Hackney 3
 Hackney JSNA is solving
overcrowding by constructing
additional houses in London.
 Hackney CCG has allocated funds for
the construction of two new hostels by
2020.
 Hackney CCG is partnering with
charity organizations to reduce the
number of street sleepers.
the 2012/2013 statistics.
 According to the 2012/2013 findings,
95% of the rough sleepers are men.
 A majority of Hackney residents have
proper health.
 A good number of the residents speak
English and are white.
Economic Determinants
JSNA has allocated £3 million to
resolve homelessness in the coming
three years.
Hackney CCG has allocated £5.6
million to cater for the
accommodation of street sleepers in
the next four years.
JSNA has allocated more than £3
million to construct new hostels.
CCG has also prepared resources to
relocated rough sleepers into the new
hostels from the streets.
Hackney JSNA has set aside more
than £5 million to tackle the issue of
overcrowding.
Technological Factors
JSNA has availed a toll-free telephone
number that the homeless can use to
contact the local authorities.
Hackney has created a mobile app that
gathers information on the rough
sleepers and other homeless individuals.
Hackney JSNA has a website that
educates the public about its services.
CCG has created a website with up-to-
date statistics of the number of homeless
and rough sleepers living in hostels.
The JSNA website avails information on
the number of street sleepers and other
homeless individuals in Hackney.
Political Factors
Hackney JSNA avails accommodation for the streets sleepers and other homeless
individuals for six months. The local authorities help homeless individuals to get their
accommodation before the end of the six months (Basurto, 2017). The authorities also created a
temporary shelter for individuals awaiting the housing and the homeless between the year 2012
and 2013. In the same period, the city administration accepted more than 34 applications from
the homeless people. The number of individuals requesting for temporary accommodation has
been on the rise in the last one year. The Hackney authorities expect the number of applicants to
increase in the next three years. The housing needs team is partnering with the city

London Borough of Hackney 4
administrators and the homeless individuals to solve the homelessness issue in Hackney (Wall,
2017). The team has asked the authorities to construct sixty more units to solve the problem.
Hackney JSNA has also established innovative accommodation units for the street
sleepers. JSNA has developed service models to support the streets sleepers and the other
homeless individuals (Crae et al., 2018). London city has collaborated with St. Mungo's to
establish new housing units which will house the long-term street sleepers. The Hackney
authorities have noted the difference between the short-term and long-term rough sleepers. The
city administrators have established a hosted called The Lodge to house the rough sleepers. The
hostel has adopted the hotel-style fashion of accommodation and abandoned the traditional
models. The Lodge engages, supports, and accommodates the homeless individuals. Hackney is
also persuading the churches to help the rough sleepers at night. The authorities are using
Broadways as suitable alternatives for providing temporary accommodation to the street sleepers
(Sadler, 2016). The CCG is supporting the rough sleepers by finding them jobs; hence, solving
their financial and housing issues.
Social Factors
Hackney has the sixth highest number of street sleepers in London. Street sleeping is a
type of homelessness that is visible (Greene, 2014). The high number of rough sleepers in
Hackney should alert the authorities to tackle the problem by partnering with the charity home
organizations. The duty of accommodating homeless individuals is a huge challenge to the local
authorities. The street sleepers are vulnerable to criminal activities due to insufficient security on
the streets. Additionally, rough sleepers are susceptible to drug abuse, misuse, and alcoholism.
The unfavorable conditions of living on the streets can cause physical and mental ailments to the
rough sleepers (Lamb, and Joels, 2014). A recent study has shown that various issues cause

London Borough of Hackney 5
individuals to move to the streets. However, a section of street sleepers turns down assistance
from the charity homes and the government.
According to 2012/2013 statistics, 95% of the street sleepers are men (Hohmann, 2016).
Moreover, 83% of the street sleepers are between the ages of 24 to 57 years. Only 11% of the
street sleepers are above 57 years. A significant number of the rough sleepers are UK nationals
while the rest of the homeless population originates from other sections of Europe. A majority
of the rough sleepers have alcoholism, drug abuse, and mental illness issues. The street sleepers
have severe health conditions in comparison to other homeless individuals (DeVerteuil, 2015).
Thus, the authorities should prioritize the street sleepers when accommodating the homeless
individuals. A recent study has also shown that homeless individuals have higher rates of visiting
health facilities than those with homes. The high rates of hospitalization among the homeless
individuals are an economic burden to the London authorities. Street sleepers also record an
increasing prevalence of complications like tuberculosis. Therefore, the charity organizations
should provide accommodation to the rough sleepers and other homeless individuals for good
health.
Economic Factors
Hackney JSNA has allocated £3 million to solve the homelessness problem in the next
three years (Morphet, and Clifford, 2017). The allocation has three objectives including catering
for individuals at risk of homelessness, resettling the street sleepers, and constructing new
hostels. The JSNA intends to collaborate with St. Mungo’s and other charity organizations in
solving the problem of homelessness in Hackney. The local authorities plan to establish more
than fifty units to house individuals at risk of being homeless. JSNA also intends to use part of
the money in building temporary housing units for people who are in the process of getting new

London Borough of Hackney 6
jobs. The housing team plan to decorate the hostels per the choice of the rough sleepers and other
homeless individuals. JSNA intends to persuade church and mosque leads to accommodate the
street sleepers at night (Buck, and Jabbal, 2014). The erection of tents to house the rough
sleepers opposed to moving into the new hostels is another creative means of accommodation.
CCG has also allocated funds more than £5 million to tackle the overcrowding problems
in Hackney. Overcrowding leads to extreme conditions like the outbreak and spread of
complications such as respiratory diseases and asthma (Khan et al., 2018). Hackney intends to
work with charity homes in constructing additional accommodation units to end the
overcrowding issue. The problem is responsible for a large number of street sleepers at Hackney.
The housing teams are intending to extend the spacing of houses thereby ensuring proper air
circulation in the hostels. CCG has decided to move homeless individuals from Hackney to the
uninhabited sections of London. Overcrowded places are prone to domestic violence; hence
pushing people into homelessness and others moving to the streets for accommodation (Cobb-
Clark et al., 2016). Thus, the local authorities should use a section of the funding to prevent
homelessness due to overcrowding. The administrators should also persuade homeowners in
lowering rents to enable every citizen to afford accommodation.
Technological Factors
Hackney has developed a mobile app to gather information on the rough sleepers and the
other homeless individuals (Clarke et al., 2015). Hackney residents are free to notify the local
authorities and the support groups about the location of the homeless and the street sleepers.
After identification of the whereabouts of the rough sleepers, the charity organizations summon
them and provide the necessary support. Other well-wishers are also finding the mobile app to be
a valuable source of information on the number of homeless individuals. The app enables the

London Borough of Hackney 7
general public to contribute towards supporting the rough sleepers through financial
contributions. The well-wishers can provide additional apartments to the local authorities to
accommodate the homeless people (Wilde, 2017). The app also contains a useful toll-free
telephone number. Hackney residents are free to use the telephone number in contacting the
charity organizations once they spot a homeless or a rough sleeper. Therefore, the mobile app is
assisting in solving the problem of homelessness.
Hackney has also developed a functional website to complement the mobile app. The
public can rely on the website to retrieve credible statistics on the homeless people (Watt, and
Bernstock, 2017). The developers of the website update the information on a daily basis. The UK
administration requires the data from the website before drafting the budget for the London
borough of Hackney. Charity organizations also rely on the website information to gauge the
number of accommodation units that house the rough sleepers and other homeless individuals
(Watt, 2018). The members of the public can also estimate the amount of financial contribution
that can assist homeless individuals from the website. The website also informs Hackney
residents about the contribution of the authorities and charity homes towards solving the issue of
homelessness. The charity homes are using the website as a platform for posting the hostels for
accommodating the homeless individuals. Moreover, charity firms can persuade the government
for financial assistance using the website statistics as evidence. Thus, the website serves as a
valuable source of data.
Recommendations
It is highly recommended that St. Mungo's open a center in Hackney due to the
increasing number of rough sleepers and homeless in the area. The registered charity firm should
establish hostels to accommodate the street sleepers and the homeless individuals. Hackney had

London Borough of Hackney 8
130 homeless individuals according to the 2017 statistics (Cunningham, and Slade, 2017). The
large number makes a housing to be a priority issue in the area. Therefore, the local authorities
should collaborate with the charity organizations to house the street sleepers. Secondly, the
strong political will at the London borough of Hackney should persuade St. Mungo's in
establishing accommodative units in the area. The plan by the city administrators to develop
temporary accommodation units showcases their desire to house the street sleepers. Furthermore,
the intention of the city administrators to offer innovative housing units should encourage St.
Mungo's in helping the homeless individuals. Thirdly, St. Mungo's and other charity
organizations should take advantage of the suitable economic conditions of Hackney to establish
accommodation units. The UK government has allocated £3 million to resolve the problem of
homelessness (Carr-Hill, 2015). St. Mungo’s should seek financial backing from the government
to assist in its activities. The organization should also use sections of the overcrowding funds to
establish new hostels.
Fourthly, the London borough has the required technological tools that support the
establishment of housing units. St. Mungo's should rely on the data from the website before
establishing housing units. The data from the website and the mobile app will assist the
organization in determining the number of accommodation units that can house homeless
individuals. Therefore, advancement in technology facilitates the activities of the local
authorities and charity organizations (Bonsón, Royo, and Ratkai, 2015). Fifthly, the unsafe
health conditions facing the rough sleepers should push St. Mungo’s to establish accommodation
units. The street sleepers are susceptible to both mental and physical complications. Furthermore,
homeless individuals are vulnerable criminal activities like theft. The recommendations should
persuade St. Mungo’s to start a housing center at London borough of Hackney.

London Borough of Hackney 9
Conclusion
PEST is an acronym for macro-environmental factors which include social, economic,
political, and technological determinants. St. Mung’s is a charity organization that offers
accommodation to the rough sleepers and other homeless individuals in the UK. Hackney JSNA
supports the homeless people for six months. Furthermore, Hackney has established innovative
housing units to house the street sleepers. The authorities are collaborating with mosques and
churches to accommodate the street sleepers at night. One hundred thirty individuals at Hackney
were homeless due to 2017 statistics. Moreover, men make up to 95% of rough sleepers in
Hackney according to the 2012/2013 statistics. The increasing number of homeless individuals is
a concern to the charity organizations and the authorities. Hackney has allocated adequate funds
to tackle rough sleeping and homelessness. The authorities have awarded more than £5 million to
solve overcrowding issues and another £3 million to solve the problem of homelessness.
Hackney has the necessary advancement in technology to address homelessness. The area has a
mobile app that assists in gathering information on the number of homeless individuals. It is
highly recommended that St. Mungo's established a center at Hackney due to various
justifications. The increasing number of homeless people in the area is one of the reasons
pushing the charity organization in developing a center at Hackney.
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London Borough of Hackney 10
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