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  • Published on: 14th September 2019
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PEST analysis of Inner London Borough

Introduction– PEST analysis

The PEST analysis supports to identify the influence and impact of the external environmental factors on the business and operational activities of any organization. The PEST stands for Political, Economic, Social and Technological factors that could hamper the regular functioning and business strategies of any organization while conducting their business activities in an economy or market. The political factors or forces includes political instability prevailing or existing in the market or economy, government regulatory and regulatory authorities, political support from the ruling parties for conducting the business and other related activities, subsidies and concession policies and plans that provide benefits and additional profits for conducting the business in that economy. The economic factors include the economic conditions, purchasing power of the customers, lifestyle, trends, fiscal policies, inflation rate, and different forms of interest rates. The social factors include customs and traditions, behavioral pattern, rituals and beliefs, and attitude of the customers. The technological factors include development and availability of current advanced technologies in the economy for implementation in the business, current trends in technologies, and easy access to information with the help of technology (Lawrence 2012).

Charity– St. Mungo's Community Housing Association

St. Mungo's is one of the popular Community Housing Association known for supporting and helping the poor and people who are deprived of sleep, people currently employed in different types of hostels, and those people that are on the verge of getting homeless due to different critical economic conditions. The management currently handling the administrative and other functions of the St. Mungo's Community Housing Association is planning to expand their new unit or charity in the Inner London Borough of Hackney in order to expand their services to the needy people in this community. In this report, we would perform the PEST analysis of the Inner London Borough of Hackney in order to support them with vital information related to the feasibility of expanding their charitable trust services and the influence of the external environmental factors in these localities. They are primarily focused on helping the down class community people suffering from poverty and currently homeless in the community. The first charity organization of St. Mungo's Community Housing Association started in 1969 with supporting the poor people living in the streets of London. They are currently supporting for more than 2800 poor and poverty suffering homeless people on the streets of England. The current location of Inner London Borough of Hackney wherein the management is planning to expand their new charity center is a mount street, which is located on the 50 miles distance from the Charing Cross which is in the north east direction (Schmieder-Ramirez, 2015).

PEST analysis:


• London is considered to be the prime and important as well as powerful cities located in the United Kingdom. The current political conditions in the London Borough of Hackney are currently stable in nature which is an advantage for the St. Mungo's Community Housing Association for expanding their new charity center. The current political conditions were disrupted to some extent after the announcement of the BREXIT however the impact was minimal in nature as well as the political conditions normalized after some time. The decision of BREXIT could turn beneficial for London since the London Borough council is major supplier for different kinds of facilities like social services, charity and housing support to the backward people in the society.

• The borough council is responsible for handling and management of all the functions and activities associated with charity and other functional activities in the London Borough of Hackney. They are independent in providing variety of services to different communities and societies prevailing in different cities across London, thereby making them extremely powerful among other service providers. The St. Mungo's Community Housing Association needs to ensure that the London Borough Council is extremely supportive in providing all the essential resources required for the establishment of the new charity centre in that locality (Caldbeck, 2012).

• St. Mungo's Community Housing Association is one of the most popular charitable organization which also gains financial support from the government currently ruling in that locality. This clearly indicates that St. Mungo's Community Housing Association managed to maintain pleasant relationships with different functional departments in the current government offices thereby ensuring that the essential support required in the establishment of the new charity centre could achieve adequate amount of support from the political parties and the leaders currently in power in that locality.

• The current stable political conditions in London clearly indicates that there is lot of potential opportunities for organizations like St. Mungo's Community Housing Association to expand new charity centers and support the poor and weak section of the society.  

• Economic

• The economic conditions indicate the financial position and capabilities of the economy to handle the business and other related activities in an effective manner. London is one of the most developed cities currently in the United Kingdom indicating that they can handle their economic affairs and business activities in an effective manner. The popular recession of 2008 hampered the economic activities for few years which led to downfall in the economic conditions and financial position of London globally. These conditions changed over the period of time and now they have regained their pace and developing with the same pace as earlier. The London Borough of Hackney could be considered as one of the classic examples in terms of development and improvement in the economic conditions over the period of time.

• The city of London was hot with inflation in 2017 which led to financial crisis and critical situation in the city leading to high prices of all the daily required products and commodities and decline in the value of the pound in international market. The total wages paid to the people during the critical situation were stagnant and led to the decline in their financial position in the economy. In such critical situation, the government of London came forward to take adequate measures to overcome the critical situation and surpass the time until the financial conditions improved in the city.

• The population of the London Borough of Hackney is rising over the period of time which is one of the major concerns for the government to make available all the resources in time. the expected population of the Borough is expected to reach at least to 74 million since the total number of deaths have declined over the total number of births taken place during the past few years. This could lead to critical situation for making available adequate number of houses to all the people living in the community in the near future. St. Mungo's Community Housing Association could be of great help in the near future to provide adequate housing facilities to the needy and poor people in the society at affordable rates.

• On one hand, the population could poses a threat to the development of the society and on the other hand it could be used for the benefit of the people by increasing the employment opportunities and business activities in different sectors like travel and tourism, real estate, construction retail, and mining and exploration of natural resources. Although, the economic conditions of the country are improving but still there is a threat to make all the essential resources and basic amenities and facilities available to the population living in the Borough and cities in timely manner.  


The social circles prevailing in the London city and Inner London Borough are highly advanced in nature and completely aware about their duties, rights, and responsibilities as well as their social circles in the nearby locality. The culture prevailing in the London Borough of Hackney is extremely humble and people treat with respect and dignity to other people.

They have a very helping nature and supportive in providing financial help to the charitable organizations and the needy and poor people in the society. The population of the London Borough of Hackney poses a threat in the near future since there are high possibilities that the availability of the houses to the total population won't be in adequate number and the total number of house less people would increase.

There are people from diverse culture and ethnicity and religion living with humanity and harmony in the London Borough of Hackney which would make it mandatory for the St. Mungo's Community Housing Association to adopt different marketing and management strategies for establishing their charity centre in the nearby locality.

The literacy level of the people living in the London is high and people are highly educated in terms of academic education. This makes it easy for the St. Mungo's Community Housing Association to convince the audience and population about the benefits and advantages of expanding the new charity center in the locality.  


The city of London is one among the highly developed cities in the United Kingdom in terms of adapting and implementing high end technologies in the economy. The London Borough council make proper arrangements in terms of all the basic amenities and facilities required like education, computer literacy, personal services, and different types of social care services required by the population in the London Borough of Hackney. This Indicates that St. Mungo's Community Housing Association could make optimum utilization of all the London Borough council to cater to the needs and requirements of the people in that locality.

St. Mungo's Community Housing Association is known for using high end technologies and adapting to the changing technologies in timely interval and catering to the needs and requirements of the customers in timely manner.

The software and information technology sector is growing in the city of London and there are ample service providers that could support the essential needs and requirements of different business sectors with different software applications and information technologies systems

There is heavy investment made in the information technologies by various business entities and corporate sector to ensure that they are able to support the rising needs and requirements of the information and communication technologies in order o develop new products and services that could support globe needs and requirements.

PEST in Detail



The area of the Hackney London Borough can be defined as very influential and powerful. This has helped in the increase in economic wealth and political power development of the area. The London is very safe and politically stable city. It has wider consequence of the economy of UK hence the governments have taken the steps to ensure that it remains stable. There have been few changes in the situation driven the Brexit which has created the uncertainty. However, London Borough Council is responsible to render service and it will help charities to provide housing.


One of the biggest strengths of St. Mungo is the fact that it is well reputed place hence it gets help from the agencies of the government. It has been able to build good relationship with the government bodies which have allowed it to expand.



In order to analyze the economy of the place we can say that London Borough of Hackney is economically very well developed. The place is in inner London which is known for its development. It goes without saying the place has suffered some set back such as in 2008 however it had bounced back with the support of the government. This has not impacted the economy much and it still is very dynamic. The government has focused on its development in past and it has been committed in future as well. The key area of the focus has been the housing for common people.


Due to Brexit and decline in the value of Pound the import has become expensive which has lead to increase the prices of the goods here. This has created the inflation and has made housing more expensive as raw material for the construction is imported. However, government has taken steps to help the situation.



There is need for the St. Mungo to raise funds and the same can be done by crowd funding. In order to so, there is need for it to have emotional appeal to the people. As we know that London has one of the highest per capita income and people here are relatively well off. The same is reflected in their lifestyle as well. Hence, they have excess money which they can donate. Further, the nature of the people is helping and this can be one of the ways to reach out to the people by appealing them to come forward and help in this cause.


Housing is the basic necessities for the masses. London is one of the fastest growing cities in this world. The population of the London is expected to increase significantly by 2025-2030. Thus, these people will need housing and this created a big market for St. Mungo. Now, if people can afford houses then there would be decline in the market for institutions such as St. Mungo but as we know that the real estate market in London is one of the most expensive in the world hence this presents plenty of opportunities of St. Mungo where it will have to come forward and provide helping hands to those who needs it help (Snyder, 2012).  



London is one of the most hi-tech cities in this world. The people are well educated and tech friendly as can be seen from the fact that most of the people can access the services and information. Thus, technology can help London Borough Council to provide these services using these technologies which can reduce the cost and make it easily accessible to people. We know that London Borough Council has cordial working with the UK government hence it can make it easy to provide support to St. Mungo (lvarado, 2010).  


The technology transfer can easily be done by London Borough Council to St. Mungo. This will allow St. Mungo to effectively run its business. It can provide solution to various issues with the help of the technology. It can use mobile application and web portal to allow them to communicate it when they need its help and then they can immediately send assistance to them.  


Thus, we have analyzed all the factors that can have an impact on the working of the new branch of St. Mungo in London borough. The factors that can have an impact are clubbed under social, political, economic, and technological. On the basis of the analysis on these factors we can recommend following:

• The first and foremost recommendation is for the staff of the new branch. Since, this is a new branch there is need to provide adequate training to the staff. They cannot help customers unless they are well trained. Hence, all the services that are to be provided the staff also needs to be well trained in the same. This will help in cost reduction and better customer service.

• Now, as we know that branch cannot succeed unless it has very good relationship with the most important stakeholder and which is London Borough Council. The reason for the same is that the way charity can maximize its reach it by getting more funds and technological help and the same can be done by council (Hartigan, 2006).

• Now, once these two steps are done there would be need for the charity to spread awareness about its presence and the same can be done by using various platforms such as social media and print. The people can share the news to those who needs it services or they can inform it about the location of those who needs its services hence use of Facebook and Twitter can be a key.

• The council cannot be only the source of funding as council has many obligations and the need for funds for the charity is extensive hence it needs to opt for the next option and that is the crowd funding. The charities for long have been using this option to get money to do good work as this is less expensive source than others. It can use social media to let people know its intention and its services so that those who want to help can connect to it and can help in the way they can. There are many people who want to associate themselves with such charities but they don't have credible options hence it can provide a platform to those who want to help. It can share stories of those whom it had helped and they can share their experience on these platforms which would act as testimony hence will allow people to trust it.  

• Now at last, it needs to host some events to increase its reach and these events can arrange for events in the places where there is large audience such as mall and parks. It can run campaign where it will directly reach out to people who needs its help.  

These are few not all options in front of the charity to ensure that its new branch is successful in the work that they are going to do.

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