$pagename = “Essay Coursework”;
= “PESTLE Analysis for a Pub | PESTLE Analysis”;
$description =”Public House PESTLE analysis – A PESTLE Analysis is a marketing tool used to measure the effect of such external factors on the business.”;
$subject = “Business”;
What is a PESTLE Analysis?
There are a number of external factors in any society or community, which will affect how a business operates. A PESTLE Analysis is a marketing tool used to measure the effect of such external factors on the business. The term PESTLE Analysis is an acronym for Political, Economic, Social, Technological, Legal and Environmental. These are all external factors which may affect the direction a business should take, or the viability of a new product or concept within an established business, but which the business has little or no control over. The results of the external findings will usually have an effect on the decisions made internally in the business and may affect the organisation and advancement of the business as a whole.
How A PESTLE Analysis Can Help A Business.
The results and findings of the PESTLE Analysis can be used as an aid to the internal decisions made in the development of a business in a number of ways. The research can be targeted on a specific aspect of the business, or as a generalised analysis of the whole service. If a business proposes a new product, or change in direction, a PESTLE Analysis can investigate the opportunity for such changes, and whether they are viable propositions for the business to undertake. These findings can be used further to analyse or forecast trends in the market place and in doing so, affect the development of the business in the long or short term.
A good PESTLE Analysis means a business can take advantage of the trends and changes in the market place. The business can then adapt and change its organisation to suit the needs of the market. By predicting the needs of an increased market, the business can take advantage of any opportunities that may arise. It also allows the business to make informed decisions on any downturns in the market place. The business can be alert of any negative forecasts in the market place, which may have an adverse impact on it and plan accordingly.
The PESTLE Analysis can also be used prior to setting up a business. It can be an essential planning tool for predicting what the market requires at a specific time and what will be commercially successful. By looking at external factors such as political trends, legal aspects and social factors, the business can plan ahead of other existing businesses in the market place. By investigating the market in such a manner, the business can plan appropriately from the very outset in order to avoid difficulties later on.
Using Te PESTLE Analysis Effectively.
It is also important to conduct the PESTLE Analysis correctly in terms of how the research is carried out. This can be done by ensuring that only the most reliable and suitable information is used. Once the relevant information has been collated, it is important to take a measured look at the findings. The results must be analysed in the correct manner in terms of how the external issues which have been raised, will affect the business internally, and in what way. The business can then carefully consider its options and what strategies it needs to implement to gain maximum results. This can be in relation to products, services and financial planning.
A PESTLE Analysis is sometimes shortened to the acronym PEST which excludes the headings for Legal and Environmental factors, as these are covered in other areas of the analysis under the headings of Legal and Political.
Some businesses prefer to examine both external and internal factors, and this is done in the SWOT model of analysis, where SWOT represents the headings of Strengths, Weaknesses, Opportunities and Threats. The results of the findings of the PESTLE analysis which is focussed on marketing are used in the SWOT report to give a more detailed analysis of what measures and actions the business should take.
Summary.
By utilising a PESTLE Analysis, the business can therefore plan effectively for external changes and demands which are inevitably occurring in the market place around it. This means the business will be equipped to make advantageous, financial and tactical decisions internally.
A PESTLE Analysis of “The Penny Whistle” Public House
Political
- Changes and reforms of Licensing Laws in line with Government policy
- Relaxation of opening hours and late night opening
- National minimum wage increase affecting salaries and wages
- EU influence and legislation regarding measures of drinks
- EU and National Government guidelines regarding health
- Local and National Government concerns regarding negative aspects of ‘binge drinking’
- Budget increases in duty on alcohol
Economic
- National and international economic downturn means people generally have less disposable income for socialising
- Rise in staff wages due to National Insurance and Minimum Wage increases
- Cut price offers for alcohol in supermarket promotions
- Increases in transport costs in line with Fuel pricing
Social
- Culturally pub centre of social life, place to meet friends and for locals to socialise
- Easily accessible as pub situated close to Town Centre on main route in and out of town
- Localised venue known for gigs, live music, themed nights for younger consumers
- Demographically increased local student population
- Media concern with negative aspects of ‘binge drinking’
- Increased awareness of health concerns
- Increased advertising on mainstream media of consuming alcohol responsibly
- Wider choice and taste of alcoholic drinks in supermarkets for consumers
Technological
- Developments in delivery of cold beers and chilled ale
- Development of wide range of flavoured alcoholic drinks
- Local interest in nightlife promoted via multi media, websites, blogs and social networking
- Advertisements for alcohol awareness and responsible drinking on mainstream media
- Increased advertisement for alcohol brands via multi media
Legal
- Smoking Ban
- Stronger enforcement of underage drinking regulations on local and national level
- Changes in Drink Driving Laws
- EU legislation on measures of drinks served
Environmental
- Recycling
- Waste, litter, refuse produced in local area
- Transportation and delivery costs of goods
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