Drug Misuse Consultancy Services in London Borough: A PEST Analysis

This report provides a comprehensive PEST (Political, Economic, Social, and Technological) analysis for a drug misuse consultancy service considering expansion into the London Borough. The introduction highlights the pressing issue of drug misuse, particularly among young people, and the need for advisory services to support addicts and their families. The political factors analysis examines the influence of the UK's parliamentary system, public influence on government, and the potential impact of Brexit on new businesses. The economic factors consider the UK's strong economy, availability of goods and services, and the high per capita income, influencing the demand for such services. Social factors such as high social standards, the role of social cause organizations, and dependency ratios are discussed. Finally, technological factors, including the UK's advanced technology and its application in healthcare, are assessed. The report concludes with recommendations, emphasizing the importance of maintaining the online consultancy service during expansion. The report analyzes the healthcare environment, offering valuable insights for the consultancy's strategic decisions and future growth.

Running Head: Healthcare Environment
Healthcare Environment

Healthcare Environment 1
Contents
Introduction.................................................................................................................................................1
PEST Analysis...............................................................................................................................................1
Recommendations.......................................................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................7

Healthcare Environment 2
Introduction
Drug is one of major issue which is faced by many countries worldwide. This problem is rotting
the fresh man power of country, as young people have started taking drug which is causing ill-
effects on their health and simultaneously resulting to death. So, advisory services shall be
provided to drug addicts and their family members as well. It will help them to gain knowledge
about the problem which the other person is dealing. It will also help them to take precautionary
actions and communicate other people about the problem of drugs and its solutions. The below
mentioned task provides a brief overview to Frank about their decision of entering in London
Borough to provide consultancy services about misuse of drugs and other substances by
youngster. It provides PEST analysis of London, Borough and recommendation to the company
for the purpose of expansion. Further details about the task are discussed below.
PEST Analysis
The PEST Analysis implemented on London Borough will help Frank and his idea to associate
his consultation activities and implement them in a way to achieve profits for the organization
and aware people with the sideffects of drugs as well. Further the PEST analysis of the country
with respect to the consultation services provided by Frank is discussed below:
P- Political Factors
Political factors refer to the factors associated with the political system of the state or the
country. It helps the analyst to gain knowledge about the political services implemented in the
country and its pros and cons. Further such information aids in proactively take steps by the
entrepreneur to protect their prevailing or newly launched business (Gupta 2013). Further the
political factors affecting the advisory services of Frank are discussed below:
 As the country United Kingdom is a constitutional monarchy which is administered by
parliamentary system, similarly the governmental bodies assigned by the parliamentary
system of UK governs he political activities happening in London Borough.
 Initially taking about the positive aspects, it shall be noted that public has a large
influence on the activities implemented in the inner department of the government

Healthcare Environment 3
(Burns, and Birrell 2014). So, the fact shall be known that if there is demand of some
products or services in the market then automatically the norms will conducted in a way
that they promote such products and services. This can be regarded as a benefit for the
consultation services, as it helps people to know how to save themselves from such
substances and how to liberate themselves from addiction of drugs.
 Also the government of the city is proactively working for the betterment of the people
living in the city. They are initiating measures and campaign to protect the interest of the
communes and acknowledge them with their rights (Gottwald, and Lansdown 2014).
Thus, with this fact it shall be assumed that as this consultation business will help people
to attain knowledge about the drugs and its harmful effects on the body, due to which it
shall be noted that government of the country will also develop measures to promote the
business of drugs related consultation services. Also the government of the city will help
them to promote their services and to expand their services to areas prone to drugs use in
the country (Maphosa 2016).
 One of the aspects which can hinder the growth of the new firm in the country is the
effects of BREXIT on the market of the country. Post BREXIT there has been many
changes in the governmental regulation of the country. Now it is not easy for a new
company to enter in the market of London Borough. Presence of various regulations bars
the growth of the firm and it also makes people restricted to attain services from the
consultation firm. Such firms are always kept under strict surveillance and suspicion by
the government as they believe that these firms might be provoking the youngster to
initially take drugs and then bring them to Centre to help them to cure (Schenker, Arnold,
and London 2014).
E- Economic Factors
Economic factors refer to those factors which are related to the economic conditions prevailing
in the city. Factors like, inflation rate, economic growth, unemployment rate, per capita income
etc. are involved in the economic analysis of the county. Further there are various economic
factors which can affect the new business of Frank in the market of London Borough
(Shabanova, et. al., 2015); these factors are discussed below:

Healthcare Environment 4
 Concerning the economy of UK, it shall be noted that the country holds a strong economy
due to which all the present in the country have adequate flow of goods and services in
the market. Along with adequate flow, the key features present in the environment which
assist the new ventures to enter in this market are the availability of goods and services in
the market. This process states that all the products and services present in the market can
be easily occupied by the target customers present in the market. So, this can act as an
advantage to the firm as the company will not struggle to reach to the target customers,
infact it can be approached by them and used by them. So, entering in the market of
London borough for drugs consultation services can be regarded as a good idea while
looking at the economic features of the city (Ryan, Hislop, and Ziebland 2017).
 Large population present in the country supports the small entrepreneur to enter in the
market and sustain their pace. Connecting this economic feature to the services provided
by Frank, it shall be noted that such market penetration will give rise to the new and
budding entrepreneurs in the country. Two feature of this aspect can help the company to
grow, one of them is the large population, it shall be not that number of youngster attain
drug at a tender age is increasing along with increase in population. Calculating the ratio
of 2015-16, it fact that came into existence is that around 15.8% of young people
(975,000) used harmful chemical (NHS Digital 2017). This shows that there is a need of
such services in the market. Another feature is that as the market support new ventures to
settle their business in the target market, thus the big firms already involved in drug and
other substances consultation services will not flush off the growth of the company in the
target market (Hagell, Hagell, Lamb, and Lamb 2016).
 Also it shall be noted that is high per capita income in the country due to which as
discussed earlier people have more cash in hand. Resulting to which misuse of drugs is
made as they are consumed by youngsters for fun and enjoyment. If they will not get the
money to purchase drugs then they will not consume it as well. Thus, it is one of the
features which give rise to the need of drug misuse consultation services in the city.
Resulting to which it shall be known that it is viable for Frank to open their Firm in
London Borough (DrugWise 2017).
S- Social Factors

Healthcare Environment 5
Social factors refer to those factors present in the external environment of the organization which
show the change in social conditions of the market which also affects the workings of the
company. Here in the case of Frank it shall be noted that social factors are one of major aspect
which can affect the business of Frank in London Borough (Eva, et. al., 2014). Further details are
the social factors of London which can affect the consultancy services of Frank are discussed
below:
 The high social standard population of plays a great role in affect the ratio of drug use in
the society. It shall be noted that now a days drugs are easily supplied in the market due
to which people who have rich ad spoilt kids are affect with this problem as their young
kids intake such harmful content. Use of drugs has now become a trend in culture among
rich class people, due to which it has become very important to teach parents and
youngsters about the use of drugs and its implications. Also the city has many social
cause organizations which strongly work for banning the illegal supplying of drugs to
young kids. Such organizations also provide information about the cons of such products.
Thus, it shall be noted that such organization can help the organization in its promotion
(Sayal, et. al., 2017).
 Also looking at the sociological factor the fact came into account that there is high degree
of dependency ratio, which shows that there is more degree of people are dependent on a
single bread earner in the family. Due to such pressure the young age people start to take
harmful substances. This causes ill-health of them and makes the condition of the family
more wore. Resulting to which the country is also impacted economically. Thus it shall
be noted that if precautionary measures are taken to secure the high degree prone people
from use of drugs then the country can also grow properly and dependency ratio can also
decrease.
 Also it shall be noted that many students are migrating to London for the purpose of
studying and they get attracted to such harmful substances due to which they destroy their
career, money, time, health etc. Thus proper teaching shall be given to such people so
that they can run on the right path and become a successful person in life. And he is
starting this venture in London Borough to provide such services only (Baltag, and
Sawyer 2017).

Healthcare Environment 6
T- Technological Factors
Technological factors refer to those factors related to the expansion process of the consultancy
firm which affects the activities of business in London market (Ho 2014). Further technological
factors present in external environment are discussed below:
 Being an MEDC (More Economically Developed Country), the UK has the power of
technology in their hands. Such technical factor has already assisted Frank in initiating
their consultancy services, so now also these services will help in inaugurating the drugs
related consultancy organization in London Borough. It shall be noted that technology is
the initial priority of the government of the country due to which they are aiming to
implement them in all sectors of the country including healthcare. Companies which
utilize qualitative soft skills are given first preference as it helps the country in growing
forwards and reaching to the community on a whole. Thus, this venture has t possibility
to receive approval from the government due to its technological use in initiating
activities (Burns, and Birrell 2014).
 Connecting technology to healthcare it shall be noted that the country is growing fast and
providing healthcare services but there is no proper guidance on the usage of the
technology for the betterment in the field of healthcare. Thus, such consultancy services
will help both the health care organization and the people to get knowledge about the use
of resources for their own betterment.
 Further effective intellectual laws are laws implemented in the society which will give
authority to and first preference to the new venture to originate their company in the
market.
Recommendations
 Talking about the recommendation to manage the expansion of the business in London,
Borough the initial recommendation which shall be given to Frank is that he shall not
ruin his online consultancy business because of the new venture. Talking risk in order to
grow is one thing and focusing on only one new business to grow is wrong. On the initial
level rank started the free online advisory services, due to which he earned name and
respect in the target market. This reputation will help Frank open his venture in London

Healthcare Environment 7
borough. So, he shall not ignore his online business for the search of revenue from new
business (Nambiar, et. al., 2017).
 Expansion is one of the major risk factors which can either ruin the whole business or it
can provide great success to company. Thus this factor shall be overlooked, while
expanding the company shall start from the basic level services as there is not much
efficient staff with Frank. Also it shall be noted that the business is not familiar with the
London market condition due to which changes in the market an adversely affect the
growth of the company. And failure on the initial level can act as a danger for the
company (Eichler, et. al., 2015).
 Advertise and promotion is one aspect which can help the company to grow with time
and gain the target market. By the way of advertisement people will get to know about
the new company entering in target market. With such promotion, gradually the number
of customers will increase which will earn revenue for the company (Wood, and
Reynolds 2013).
 Apart from that, it is important for the business to initiate the segmentation, targeting and
positioning process in the external environment. This will help the company to gain
knowledge about the number of drug addict youngsters prevailing in the environment.
With such information the company can take adequate measure to prevent them and
consult them as well. Also they shall gain information about the healthcare organizations
and social committees which promote the prohibition of drugs in the society. In
association with them the company shall initiate road shows and rallies so that people get
aware about the illicit effects of drugs in the society. Also if they will get connected to
such social groups and health care of organization then it will get easier for the company
to recommend such organizations and provide advisory services (Lee 2014).
 Expansion has both pros and cons so the company shall consider the above mentioned
PEST analysis and then initiate their action plan. The action plan shall include the
management objective and marketing plan as well. The organization defines an objective
and set a target on the basis of they shall work in order to accomplish them. And the
marketing plan shall be initiated in such a way that it identifies the right market
opportunities to enter in the control and gain position. Further the plan shall provide
advertisements and promotions schemes, such scheme shall attract the customers by

Healthcare Environment 8
providing them benefits like, discounts, additional services etc. Also the whole
managerial team shall aim for the target, not just set of few people can target to achieve
the market share. So practice of team building and team work shall be implemented in the
organization. Thus, with help of such practices the company can aim the process of
expansion effectively (Un-Habitat 2016).
Conclusion
In the limelight of above mentioned events it shall be noted that Frank shall inaugurate their
advisory services company in London, Borough as the market analysis shows that the company
is fit to enter in the market and initiate their business activities. Further it shall be noted that the
PEST analysis of the market place shows that London is highly attracted by young drug addicts.
High income in hand leads to more usage of money due to which such youngsters spend their
money on illicit products. There are many non-governmental organization and rehabilitation
Centre which provide healthcare services to drug addicts, so with the help of such organization
they shall aim to enter in the target market and provide true consultancy services to its
customers. Lastly, the above-mentioned task also provides recommendations to the company for
their plan of expansion in London, Borough.

Healthcare Environment 9
References
Baltag, V. and Sawyer, S.M., 2017. Quality Health Care for Adolescents. In International
Handbook on Adolescent Health and Development (pp. 309-324). Springer International
Publishing.
Burns, J. and Birrell, E., 2014. Enhancing early engagement with mental health services by
young people. Psychology research and behavior management, 7, p.303.
CHISWELL, C., COOPER, R. and PACKHAM, C., 2015. Healthcare public health. Practising
Public Health: A Guide to Examinations and Workplace Application, p.45.
DrugWise, 2017. How many people use drugs? Viewed on November 22, 2017 from <
http://www.drugwise.org.uk/how-many-people-use-drugs/>
Eichler, H.G., Baird, L.G., Barker, R., Bloechl‐Daum, B., Børlum‐Kristensen, F., Brown, J.,
Chua, R., Del Signore, S., Dugan, U., Ferguson, J. and Garner, S., 2015. From adaptive licensing
to adaptive pathways: delivering a flexible life‐span approach to bring new drugs to
patients. Clinical Pharmacology & Therapeutics, 97(3), pp.234-246.
Eva, M., Hindle, K., Paul, D., Rollaston, C. and Tudor, D., 2014. Business analysis. BCS.
Gottwald, M. and Lansdown, G., 2014. Clinical Governance: Improving The Quality Of
Healthcare For Patients And Service Users. McGraw-Hill Education (UK).
Gupta, A., 2013. Environmental and pest analysis: An approach to external business
environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), pp.13-17.
Hagell, A., Hagell, A., Lamb, S. and Lamb, S., 2016. Developing an integrated primary health
care and youth work service for young people in Lambeth: learning from the Well
Centre. Journal of Children's Services, 11(3), pp.233-243.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.

Healthcare Environment 10
Lee, N., 2014. What holds back high-growth firms? Evidence from UK SMEs. Small Business
Economics, 43(1), pp.183-195.
Maphosa, T., 2016. Strategic Marketing Planning.
Nambiar, D., Razzak, J., Afsana, K., Adams, A.M., Hasan, A., Mohan, D. and Patel, V., 2017.
Mental illness and injuries: emerging health challenges of urbanisation in South Asia. BMJ, 357,
p.j1126.
NHS Digital, 2017. Statistics on Drugs Misuse: England, 2016. Viewd on November 22, 2017
from < https://digital.nhs.uk/catalogue/PUB21159>
Ryan, S., Hislop, J. and Ziebland, S., 2017. Do we all agree what “good health care” looks like?
Views from those who are “seldom heard” in health research, policy and service
improvement. Health Expectations, 20(5), pp.878-885.
Sayal, K., Prasad, V., Daley, D., Ford, T. and Coghill, D., 2017. ADHD in children and young
people: prevalence, care pathways, and service provision. The Lancet Psychiatry.
Schenker, Y., Arnold, R.M. and London, A.J., 2014. The ethics of advertising for health care
services. The American Journal of Bioethics, 14(3), pp.34-43.
Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-Analysis
and SWOT-Analysis as the most important tools to strengthen the competitive advantages of
commercial enterprises. Mediterranean Journal of Social Sciences, 6(3), p.705.
Un-Habitat, 2016. Planning sustainable cities: global report on human settlements 2009.
Routledge.
Wood, S. and Reynolds, J., 2013. Knowledge management, organisational learning and memory
in UK retail network planning. The Service Industries Journal, 33(2), pp.150-170.