Recommendations for Managing the Expansion

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Added on 2020-04-15

Recommendations for Managing the Expansion

Added on 2020-04-15

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Running head: ENVIRONMENTAL ANALYSISEnvironmental AnalysisName of the Student:Name of the University:Author note:

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1ENVIRONMENTAL ANALYSISTable of ContentsIntroduction................................................................................................................................2PEST analysis.............................................................................................................................2Political Factors......................................................................................................................3Economic Factors...................................................................................................................4Social Factors.........................................................................................................................5Technological Factors............................................................................................................7Recommendations for managing the expansion........................................................................8Conclusion..................................................................................................................................9References................................................................................................................................10

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2ENVIRONMENTAL ANALYSISIntroductionFrank is an advisory centre which offers advice and information regarding drugs aswell as substance misuse among young adults and teenagers. The company was established inthe year 2003 by the health department. The organization provides with various options forthe treatment of the drug addicts. The organization helps the drug addicts to deal withdepression, by providing them with free advisory services. Professionals and certified expertshelp them by making them behave properly and respond. It helps them open up and sharetheir thoughts as well as feelings with the experts. They also provide the drug addicts withseveral 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, textsand email. In addition to this, the report highlights several issues that the company is dealingwith, by selecting on specific London Borough. Furthermore, recommendations are beingprovided in this report in order to manage the expansion.PEST analysisThe PEST analysis is regarded as a useful tool for scanning and identifying variouspolitical, economic, social and technological factors of the external business environment.The factors help in representing the threats, opportunities and challenges, which can arisefrom external environment and greatly influence the organization’s decision makingprocedure. In order to open a drop in centre, the organization is willing to expand theirbusiness. They want to provide the victims with face to face advices and information, whichwill be more effective. The organization would like to expand their business and the centrewould be located at London Borough of Hammersmith and Fulham. Based on that factor, a

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3ENVIRONMENTAL ANALYSISPEST analysis has been conducted, to understand the issues of expansion (Wild, Wild andHan 2014).Political FactorsExamining the existing rules and regulations of that particular place or environment ofthe market governing, might help in revealing the restrictions of that region. The place isbeing 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 regulationsas well as legal issues which define the formal as well as informal rules. These factors mustbe kept in mind as the organization will operate under these issues. The businessorganizations get highly affected by the regulations and existing legal issues. The existingrules have a power of limiting the expansion of the business. Moreover, the legal issues canalso place the organization in various kinds of legal battles, which may slow down itsprogress 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, taxpolicies play a major role in the growth of the business. It may affect the businessorganization tremendously. Therefore, it is necessary for the Frank Company to look into thegovernment policies and procedures of Hammersmith and Fulham, before taking any majorstep. Increase in tax rate can affect the cost structure of the company. Moreover, theorganization provides free advisory services, thus, keeping in mind such factors is veryimportant. Employment regulations act and entry level wages may also affect the strategicplanning of the organization (Twarowska and Kąkol 2013).In this competitive world, taking the political factors into consideration is an essentialissue. Environmental regulations also affect the operations of business and the organizations

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