PEST analysis

A PESTEL analysis is:

‘A technique for analysing the general external environment of an organisation in terms of the political, economic, socio-economic, technological, environmental and legal aspects,’ (Mullins, 2007, page 808).

Following is a PEST analysis. This takes into consideration the political, economic, socio-economic and technological factors.

criteria examples ecological/environmental current legislation  future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market pressure- groups international pressure- groups wars and conflicts	Political CRB check Safeguarding Pension Legislations	Economical Seasonal Economical Government funding Profit Local household salaries	criteria examples home economy economy trends overseas economies general taxation taxation specific to product/services seasonality issues market/trade cycles specific industry factors market routes trends distribution trends customer/end-user drivers interest/ exchange rates international trade and monetary issues
criteria examples lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues	Social Media Lifestyle Popularity of sports	Technological Website Advertising	criteria examples competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications

I will now explain the PEST analysis in more detail.

Through analysing the political environment in Thornbridge Outdoors I found out that to work for them you need a CRB check (Criminal Records Bureau check) as:

‘You need a CRB check if you’re working with children,’ (Richardson, 2011).

Safeguarding is key to ensure the safety of the participants and so that the coaches know what to do in certain situations. Also there should be a maximum of ten participants per member of staff to help ensure safety during the session (Fairest, 2011).

Economically the business is very seasonal as most of the demand comes between February to May and September to October (Fairest, 2011). This means that they don’t employ as many people in the winter so staff don’t get a regular income and have to have another job. Also the facilities aren’t used as much over this period of time. Due to the recession there is less demand than expected. This is due to the fact that customers aren’t as willing to spend money. This decreases profitability which means that the government is less willing to put funding into the business.

Social influences include the media, people’s lifestyle and interests. Recently cycling has received positive responses from the media and the public through Mark Cavendish winning sports personality of the year. This shows that cycling has a better response than ever. Lifestyle greatly affects this as people who come are usually active and adventurous. 28.3% of children in the UK are overweight of which about half of those are obese (Department of Health, 2011). Also, over half of the adults in the UK are classed as being overweight (Department of Health, 2011). This suggests that the lifestyle of people in the UK isn’t as active as it should be.

Technological aspects include advertising and websites. Advertising is key to increasing the knowledge of Thornbridge Outdoors as it’s a good form of promotion. Promotion is:
‘an exercise in communications. Its role is to facilitate exchanges with potential client groups by communicating the benefits offered by a programme or service; it seeks to inform, persuade, or remind,’ (Howard & Crompton, 1989).

If people don’t know about it they won’t go. They advertise through giving leaflets to local campsites, hotels and places of interest to get interest but most of the interest comes from word of mouth (Fairest, 2011). The website explains the basics of Thornbridge Outdoors although it isn’t clear about things such as how to book the accommodation or coaching sessions. This is something that needs to be worked on.

Bibliography

Department of Health. (2011). Obesity General Information. [Online] Available from: http://www.dh.gov.uk/en/Publichealth/Obesity/DH_078098. [Accessed 11^th January 2012].

Fairest, M. British Cycling Coach. (Personal communication, 13^th December 2011).

Howard, D.R., & Crompton, J.L. (1989). Financing, Managing and Marketing Recreation and Park Resources. Dubuque: W.C. Brown.

Mullins, L.J. (2007). Management and organisational behaviour. 8^th ed. Great Britain: Pearson Education Limited.

Richardson, I. Express Coaching Services Owner. (Personal communication, 19th October 2011).