Recommendations for Managing the Expansion

Running head: ENVIRONMENTAL ANALYSIS
Environmental Analysis
Name of the Student:
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1ENVIRONMENTAL ANALYSIS
Table of Contents
Introduction................................................................................................................................2
PEST analysis.............................................................................................................................2
Political Factors......................................................................................................................3
Economic Factors...................................................................................................................4
Social Factors.........................................................................................................................5
Technological Factors............................................................................................................7
Recommendations for managing the expansion........................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

2ENVIRONMENTAL ANALYSIS
Introduction
Frank is an advisory centre which offers advice and information regarding drugs as
well as substance misuse among young adults and teenagers. The company was established in
the year 2003 by the health department. The organization provides with various options for
the treatment of the drug addicts. The organization helps the drug addicts to deal with
depression, by providing them with free advisory services. Professionals and certified experts
help them by making them behave properly and respond. It helps them open up and share
their thoughts as well as feelings with the experts. They also provide the drug addicts with
several advices to deal with the pressure of taking drugs (Talktofrank.com 2017).
The report throws light on the expansion of the organization through a PEST analysis.
The company provides information through online services, telephonic conversations, texts
and email. In addition to this, the report highlights several issues that the company is dealing
with, by selecting on specific London Borough. Furthermore, recommendations are being
provided in this report in order to manage the expansion.
PEST analysis
The PEST analysis is regarded as a useful tool for scanning and identifying various
political, economic, social and technological factors of the external business environment.
The factors help in representing the threats, opportunities and challenges, which can arise
from external environment and greatly influence the organization’s decision making
procedure. In order to open a drop in centre, the organization is willing to expand their
business. They want to provide the victims with face to face advices and information, which
will be more effective. The organization would like to expand their business and the centre
would be located at London Borough of Hammersmith and Fulham. Based on that factor, a

3ENVIRONMENTAL ANALYSIS
PEST analysis has been conducted, to understand the issues of expansion (Wild, Wild and
Han 2014).
Political Factors
Examining the existing rules and regulations of that particular place or environment of
the market governing, might help in revealing the restrictions of that region. The place is
being administered by forty six councilors and shares various centers of adult social care,
child care and educational services. The political factors refer to the government regulations
as well as legal issues which define the formal as well as informal rules. These factors must
be kept in mind as the organization will operate under these issues. The business
organizations get highly affected by the regulations and existing legal issues. The existing
rules have a power of limiting the expansion of the business. Moreover, the legal issues can
also place the organization in various kinds of legal battles, which may slow down its
progress as well as growth (Verbeke 2013).
It is important to keep a track of every country’s laws as well as structure of tax laws,
before planning for the expansion. The government legal issues and regulations such as, tax
policies play a major role in the growth of the business. It may affect the business
organization tremendously. Therefore, it is necessary for the Frank Company to look into the
government policies and procedures of Hammersmith and Fulham, before taking any major
step. Increase in tax rate can affect the cost structure of the company. Moreover, the
organization provides free advisory services, thus, keeping in mind such factors is very
important. Employment regulations act and entry level wages may also affect the strategic
planning of the organization (Twarowska and Kąkol 2013).
In this competitive world, taking the political factors into consideration is an essential
issue. Environmental regulations also affect the operations of business and the organizations

4ENVIRONMENTAL ANALYSIS
in a huge way. Frank Company must keep in mind that they are not harming the
environmental regulations of the place. Moreover, the government of United Kingdom is
undertaking several measures in order to address deterioration of the economy. This includes
various factors like monetary mix, fiscal initiatives and others. In the year 2009, the
government of United Kingdom announced various measures in order to help in reviving the
ailing banks as well as provide restrictions to the growing unemployment. This would prove
beneficial for the company as they can hire a number of professional experts in that country.
Furthermore, the budget tax of 2009 includes the highest income segments, which were
revised from 45% to 50%. These measures helped in reviving the whole economy of United
Kingdom (Tian 2016).
Economic Factors
On starting up an organization in some other countries, observing the economical
factors is very important. Firstly, the growth of gross domestic product was robust in between
2000-2006. The country had its high growth rate in the year of 2007. Later in the year of
2008, it started decreasing and the growth stood to 0.7%. The economy of the country
continues to get benefitted from the robust growth of economy. Traditionally, the industrial
activities have been strong in northern areas of United Kingdom (Babatunde and Adebisi
2012). On the other hand, the southern parts are being driven by services sectors. This
resulted in a relative decline of the industrial sector’s importance. This will prove to be
advantageous for the company as the services sectors’ importance has increased over the past
years (Rohrbeck, Konnertz and Knab 2013).
Moreover, the interest rates also get affected by the inflation system. The changes in
the rates may control the business organization’s progress in a huge way. Inflation rate has
raise, which increased the prices of goods and services. Therefore, this will prove to be
disadvantageous for the company. The slowdown of the economy has also affected the jobs

5ENVIRONMENTAL ANALYSIS
of the country. The country follows a mixed economic strategy and it is affected by what,
whom and how to produce. However, the company can only expand their organization in the
country, after considering the internal as well as external business environment. Frank
Company needs to keep the economical factors into consideration before the expansion of
their business (Peltier 2016).
Furthermore, in the year 2008, the United Kingdom’s currency lost its value for about
twenty five percent against dollar and euro. The currency can however, weaken more in the
coming years as there has been a cut rate in the interests as well as the prospects of the
economic growth remains bleak. The United Kingdom has an account deficit from the early
nineties. This did not have an impact over the policy makers previously, but recently it has
become a serious concern as this would raise the country’s external debt (Ball et al. 2012).
This is due to the economic slowdown and unemployment of the country. Hiring professional
experts can be difficult to certain extent. As per the International Monetary Fund, the present
deficit in the accounts of the country stood at approximately 3.31% of the gross domestic
product, which further dropped to approximately 2.70%. Therefore, the company needs to
keep these factors in mind before expanding their organization (Oleszek 2014).
Social Factors
The common social factors which affect the growth and progress of the business are
the demographics and others. For example, is a business expands in some other country, they
might want to reach the consumers via mobile phones or other social networking sites for
promotional activities. This category is also concerned about the environmental
considerations. For instance, if a company wants to expand their business in Netherlands, it
has to grasp the social factors of the country. They relies on the wind power heavily,
therefore, the people of the country hugely focuses on sustainability. Therefore, the owners of
the business, before entering the country’s market, must prepare a scrutiny of their

6ENVIRONMENTAL ANALYSIS
environmental policies as well as procedures. These will ensure a better outcome for the
company itself (O’Donnell and Vogenberg 2014).
Similarly, the Frank Company should focus on the social as well as environmental
factors before opening their branch at the United Kingdom. The government of United
Kingdom, however, faces various challenges in maintaining the public services’ level. The
budget is deficit to a certain point for the authorities in order to maintain the levels of
expenditure on the social and welfare projects. Therefore, it will prove to be a challenging job
for the company to stand apart in that country (Cavusgil et al. 2014). The policies of the
government like managed migration can prove to be crucial for the company’s progress and
affect the economy of the country. The working population of the country is between fifteen
and sixty four. It accounts for around sixty seven percent of the whole population. This
results in a challenging environment for the government as it hampers the social welfare
system as well as the future developments (Majaro 2013).
Around 17.2% of the total population is between zero and fourteen years and around
15.8% are above sixty five years age. The government faces issues because of the dependent
population and shrinking workforce. However, the healthcare system of the United Kingdom
is a successful social venture all across the world. The total expenditure on public health in
the country has been higher than other segments (Dunning 2012). This helps in maintenance
of the quality and the services. Therefore, this factor may sound good for the expansion of the
company. The company is involved in providing with health care services to the victims who
are addicted to drugs. Moreover, the education level of the country is considered to be of high
quality. It can contribute to the company’s betterment by providing with professional trainers
as well as experts (Killing 2012).

7ENVIRONMENTAL ANALYSIS
Technological Factors
The technological factors of the country can also lead to several impacts for the
organization’s expansion. This can be beneficial as well as disadvantageous for the company.
Technological changes are highly affecting each and every industry as well as market. For
instance, an individual can buy apartment anywhere across the world easily through Skype or
other video calling applications (Forsgren and Johanson 2014). One can buy a house at Honk
Kong from London. Implementation of technology in the business can prove beneficial as
well as challenging for the business. It can make the operations of the business more efficient
as well as effective (Ireland, Hoskisson and Hitt 2012).
In the United Kingdom, on average, an individual spends more than eight hours per
day for internet browsing. The country has huge number of subscribers and it continues to
rise. Therefore, if the organization plans to use this segment for marketing their operations
and promotional activities, it may prove beneficial for the organization itself. Internet can be
used to reach to the furthest corners of the world (Girling 2012). In a similar manner, the
company can use it for promoting their activities. This would raise concern among the people
of the country and they will come to know about the organization. The country has one of the
most advanced and efficient telecommunications services as well as infrastructures across the
world. The technology is changing rapidly. People, employees and organizations in the
United Kingdom pride themselves in having the best technology connection all across the
world (Hamilton and Webster 2015).
The country’s domestic infrastructure is highly modern; therefore the company will
not face any technological challenges in this aspect. In addition to this, the organization can
hire IT professionals for implementing better services and technology for the organizational
progress. With advanced technology, the organization can gain more appreciation and
acclamation from the customer’s end. The technological factors like increased automation or

8ENVIRONMENTAL ANALYSIS
computerization can help bringing in efficiency and effectiveness in the work. This would
also help the company to build its strategies (Grant 2016). Furthermore, the research as well
as development activities should be kept and maintained in accordance with the technology
of the workplace. This may influence the organization and help in developing intelligent
automation for performing several things at one go. Manpower will also reduce if the
company adopts as well as implements unique technological strategies, along with cost
effective and time consuming factors (Gupta 2013).
Recommendations for managing the expansion
On expanding the organization’s business in some other country, it is important to
keep into consideration the external and internal forces of the region or place. The Frank
Company is planning to expand in the country of United Kingdom; therefore, it is important
for the organization to keep in mind the political, economical, technological and social
factors of the place. An organization has several internal and external forces operating, which
can impact the progress of the business in a huge way. These forces are not in control of the
management team and the business owner, which can affect the organization. These forces
can be the customers, socio cultural organizations, national and international organizations,
competitors and creditors as well. Any business organization is dynamic and it keeps on
shuffling or changing their policies as well as procedures and strategies. Therefore, it is
important for the organization to manage such things, before expansion.
Furthermore, the organization needs to handle the factors very effectively, as it is a
free advisory centre. In any business, uncertainties exist in a huge way. It becomes difficult as
well as challenging for the organizational managers to predict the future of the organization,
especially at those times, when the changes occur on a regular basis. The company needs to
be clear regarding their mission, vision and goals. They need to set an objective, for their

9ENVIRONMENTAL ANALYSIS
betterment. However, the organization is doing a great job by offering free advisory services
to the drug addicts. It needs to be more social, by updating posts regarding drug awareness on
Facebook and other social networking sites. On expanding their business, they must be clear
regarding the factors affecting the external and internal environment.
In addition to this, the company should implement new and innovative strategies as
well as technologies for their betterment. On expansion, they can hire skilled personnel for
technological implementation and innovative measures. The United Kingdom has huge
number of subscribers it is raising continuously. Thus, the organization can use this segment
for marketing their operations and promotional activities. Internet will help in reaching to the
furthest corners of the world. In a similar manner, the company can use it efficiently and
effectively for promoting their activities. This would raise concern among the people of the
country and they will come to know about the organization. Therefore, it will prove to be
beneficial for the company itself.
Conclusion
To conclude, the organization helps the drug addicts by providing them with free
advisory services. It can expand their organization in other countries. However, they chose to
do so in London. The report highlights the factors which may or may not affect the business’s
environment. The political, economical, social and technological factors are discussed in a
detailed manner, which will give useful insights for the organization. Before expansion, any
business must keep these factors under consideration. The Frank organization needs to handle
the factors very effectively, as it is a free advisory centre. The company needs to be clear
regarding their mission, vision and goals. They need to set an objective, for their betterment.
More and more updates must be given on networking sites for providing drug awareness.

10ENVIRONMENTAL ANALYSIS
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