Scotland's Pestel Analysis

Improved Essays
The PESTEL framework on an environmental scan highlights six critical factors for management in Scotland to consider when approaching the general business environment. It is common to conduct a PESTEL assessment before any serious decisions are made or any large projects are undertaken. The Department of Health, responsible for the NHS, public health and social care, was among the leaders of New Public Management in the UK (Day and Klien 2000: 238). According to Dr Bobby Mackie, At the time of writing (March 2013) Scotland’s public services are facing an unprecedented upheaval as a consequence of a range of influencing factors including political changes, the economic recession, changes in Scottish society and the impact of technology on public …show more content…
( Kazmi,2008).
The PESTEL analysis importance used by the National Health Service
Political factors - This include taxation policies, foreign trade regulations, political stability, labour laws, environmental laws, etc. Organizations need to adjust their marketing policy with current and anticipated future legislation. In the health service sector, political focus and pressure on health care will lead to cutbacks which is a loss to the business.
Economic factors - This include economic growth, inflation, currency exchange rates, etc. Economic factors can be of macro-economic and micro-economic factors.
Macro-economic factors deal with the demand in the economy, ie government’s interest rate, budget- expenditure, tax policies.
Micro-economic factors are about public expenditure. These factors are of people’s income and expenditure. Overall, economic factors impacts on organizations business and
…show more content…
For example, consumer organizations are keener towards social factors, while political factors play a vital role in defense industry.

Conclusion
Environmental scanning can present numerous rewards for modern Health Service. It can contribute to an organizations renovation, one that constantly seeks new practises that could modify it’s place in the market. Furthermore environmental scanning assists in the improvement of planned procedure and policy. Therefore, developing an understanding of what is PESTEL analysis is useful for organizations for analyzing and understanding the ground realities of the environment they have to operate in.
Realizing what is PESTEL and knowing how to take this analysis into consideration, the organization can be in a better position to analyze the challenges, environment, factors, opportunities, restrictions and incentives it faces.
The crucial objective of environmental scanning is to assist organizations gain knowledge of the external environment in order to amplify its reaction and flexibility in decision-making

Related Documents

  • Improved Essays

    The process should be proactive to the environment. The human resource managers would need to understand the notion behind the strategic and tactical issue development. The process should also ensure that managers focus their attention on the external environment of the organization and thus allow for the creation of an organization that can adapt to the changing global…

    • 726 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Macro Pestle Analysis

    • 1699 Words
    • 7 Pages

    PESTEL analysis of the macro-environment There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between: • Political factors. These refer to government policy such as the degree of intervention in the economy.…

    • 1699 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Era Of Environmentalism

    • 1497 Words
    • 6 Pages

    Citizens need to be educated about the current environmental crises that affect our world’s inhabitants. This includes the translation of complex and often, entrenched environmental legislation that is passed by national governments. Working at an environmental organization has provided me with a unique insight into the language and methodologies applied to creating a healthier, cleaner world for people. Thinking globally and acting locally has compelled me to take a more analytical look at the pragmatic logic used by environmental lobbyists, educators, and…

    • 1497 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Economic factors include interest rates, economic growth, inflation, exchange rates, and the consumers’ disposable income. The factors may be divided into micro-economical and macro-economic factors. Micro-economic factors define how individuals spend their incomes. Micro-economic factors have major impacts specifically on B2C companies. Macro-economic factors focus on demand management in an economy.…

    • 985 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Government guideline and policy The rising concern about companies’ environmental impacts has created a demand for more government policies and guidelines in the petroleum industry. The government regulatory policy instrument is the mechanism that directly regulates and promotes EMA implementation (Rikhardsson, 2005). In view of that, government can develop policies for the purpose of improving environmental information and other related environmental activities within the petroleum industry. Therefore, governments can improve the environmental information for decision-making in the field of environmental development within the petroleum industry. Apart from the government policy formulation, government can as well develop guidelines to promote…

    • 750 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    In conjunction with the general public ambivalence towards superbugs, pharmaceutical companies are contributing to the threat of superbugs. The pharmaceutical industry’s actions have led to new antibiotics being created at a slowing rate, which could mean trouble for those who become infected with superbugs. In the article “Meeting the Societal Need for New Antibiotics: the Challenges for the Pharmaceutical Industry“ Seamus O’Brien (2015), an employee of AstraZeneca, one of the world’s largest pharmaceutical corporations, stated “There are significant challenges for the pharmaceutical industry to discover and develop new antibiotics including a business model that balances reasonable reimbursement with appropriate use” showing some of the actual…

    • 1232 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Corporate Decisions are influenced by a firm’s cost of capital for an aim to reach a stage of profitability and hold the objective of reaching its potential wealth maximum. These are the costs incurred by companies used to finance a firms assets and activities The Cost of Capital is important in analysing the financial aspect of a business by measuring and evaluating business plans and activities. A firms cost of capital is affected by influences from financing, investment and dividend policies. Projects cost of capital rate of return indicate the riskiness of a project involved where “The firms cost of capital is the overall or average required rate of return on the aggregate of investment projects.” Cost of Capital is a useful method used…

    • 1468 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Ethics In Architecture

    • 2412 Words
    • 10 Pages

    I am aware my actions and decision could have negative impact toward the environment, therefore I am environmentally conscious. This means that my decision are guided by my set of belief for the environment. I believe that for the eco-system to exist in harmony, the decision such as architect like myself must be guided be sensitive to the environmental concerns. This include making efforts of protecting the environment during my work…

    • 2412 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    The main activity of these is buying, selling or holding of financial assets. It includes insurance companies, investment banks, broker-dealers, pension funds and mutual funds. • The financial markets- It is a market where financial assets and liabilities are sold and bought. Financial market performs the essential functions in the economy such as channelizing funds from savers who have in excess to spenders who have a shortage. It includes currency markets, money markets, derivative markets, and capital…

    • 809 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In today’s sociality everything we purchase and sell revolves around economics. Economics is a set of institutional arrangements that coordinate in making goods and services (McConnell, Brue, & Flynn, 2013, p. 32). Economics is comprised of two systems, the market system and the command system. These are two systems that are used throughout the world and are mixed together. Market System The first system is the market system that focuses more on capitalism, which is the term used to describe the economic system used in the United States.…

    • 896 Words
    • 4 Pages
    Improved Essays