PESTEL ANALYSIS ON UK MACRO-ENVIRONMENT

There are many factors that affect the government’s macro-environment. These are distinguished using PESTEL analysis.

POLITICAL–Policies and foreign influences are particularly from the EU. Businesses privatised to keep prices low and make services more efficient. It is a signatory to the Kyoto Protocol, which engages government with businesses to help reduce harmful gases.

ECONOMICAL –The biggest issue is the lack of economic recovery. A return to growth would help improve the tax revenues and reduce budget tax deficit. If it fails to recover there will be a fall in living standards and persistently high unemployment. Its growth is a key factor in determining other problems.

SOCIOLOGICAL –There is an increase in the aging population, this means there is also an increase in the costs of pension payments. The civil society habits are changing and people are more aware of their surroundings and are becoming “green consumers.”

TECHNOLOGICAL –Businesses are continuously developing new technologies to provide solutions for the market place. Introducing state-of-the-art vehicles and trams lessen emissions. The biggest factor is the increased availability of transport which increased migration trends by 75%.

ENVIRONMENTAL –There is work with transport providers to monitor and maintain road. It has set its target to reduce emissions by 25%. Fair trade on goods aims to provide fair prices and better working conditions.  

LEGAL –Changes in law come from government policies. Laws on public transportation requires all public buses meet environmental requirements. Businesses buy carbon credits in order to generate certain amounts of carbon emissions.