• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

External environment - PEST analysis for Somerset house.

Extracts from this document...

Introduction

EXTENAL ENVIRONMENT PEST analysis shows factors that affect or will have major impact on the way Somerset house conducts its business. These factors cause change in the market and the way business is done. They are political, economical, social, and technological factors, if a company does not respond to these factors as they change it will be less competitive. Political factors Political changes from one party to another for example from the conservative government to the labour government, this means law will be changed and the government will consecrate on increase spending in one field than the other which might not favour Somerset house. The labour government has been in power since 1996, duing there haven't been many changes but we have seen some changes that will affect me. For example recently the labour government passed legislation that all museums must be free entry for the public by in the forth coming years, this means that the museum will not generate any income from tourists visiting them. Most of the museum like the natural history museum have respond to the government's legislation and abolished the entry fee, this might attract more customers to these museums than Somerset house there for causing a decrease in the sales and profits at Somerset house. Economical factors Since September the 11 public spending has gone done and the British economy has decreased, people are not spending as much as they were and instead they are turning to saving most of their money and only buying basic products. ...read more.

Middle

Other strength include a team of staff to help visitors on site and though it's an historic building it has facilities for all kind like rumps for wheel chairs users for easy access all around the museum. As having strength Somerset house has many weaknesses and its major weakness that is affecting its performance is the public image of being a place for births, deaths, and marriages. However, I have an opportunity to change the public's perception about Somerset house through the use of promotion like getting the press and celibates to visit Somerset house and hopeful screening this on television. Influence pest and slept and other legal laws will have on the marketing strategy. Political changes Changes in the value of VAT put Somerset house and its competitors at a disadvantage, as they have to charge the VAT value and pay it to the HM customs and excise with out failure or they could face lager fines or even prosecution. So they will have to charge this on every product or service they provide expect food. Also because Somerset house competes on an international level and most the other nations VAT value is lower that the UK's, this causes problems with the tourists. The changes in the law also added to the uncertainties about Somerset house's prospects of change. ...read more.

Conclusion

I have to make sure that the goods and services are sold as described. The goods must be of satisfactory quality and fit for the purpose. If Somerset house breaks any of the conditions, the buyers/ customers will be entitled to a refund of the purchase price from Somerset house, this will affect the level of profits and also because we are having unsatisfied customers it may lead to them not coming back to Somerset house. The trade description Act states that it is a criminal act to apply a false trade description to any goods, or supply or offer to supply, any goods to which a false trade description is applied, to make a false statement knowingly or recklessly as to the provision of a service and to give misleading information about prices and apply false description on facilities and services at summerset house. I will have to take great care in my advertisements not to mislead customers as if I don't follow these laws Somerset house will be prosecuted and may end up paying large fines. If I use any act against the publics interest and use predatory pricing to run my competitors out of business so that I can have a dominate position in the market. The competition act 1998 operates through the competition commission. The commission will investigate me and if it is found that Somerset house is acting against the public's interest I might be prosecuted. Candidate No:1541 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The ability of an organisation to adapt to change in its external environment is ...

    If a business can manage its human capital then it is prone to survive in its long-term environment. For example, John Lewis provides regular training (both on and off the job) and social events for all its employees, which has been proved to be an effective non-financial method of motivation.

  2. SWOT and PEST analysis

    Unemployment levels at a high level generally means that people within the UK would have less money to spend, this could affect Cadburys as customers may stop buying there product. Social factors: Factors from social factors which may affect businesses such as Cadburys could include things such as consumer trends.

  1. PEST and competitive analysis facing by confectionery organisations

    * A more pragmatic than dogmatic approach to business. This implies being realistic and basing decisions on facts. * Openness and curiosity for dynamic and future trends in technology, changes in consumer habits, new business ideas and opportunities, while maintaining respect for basic human values, attitudes and behaviour.

  2. Conduct a PEST analysis for a company within the Tourism industry.

    Key success factors for "Simply Travel" are * Effectively segmented and targeted adventure travellers market within the larger travel market.

  1. In order to effectively analyse Luxury Boats Ltd. and the framework of macro-environmental factors ...

    This is a sign of serious cash flow problems. * Orders for Luxury Boats Ltd are increasingly for cheaper boats. MARC MENENDEZ 05260233 3. Social * Luxury Boats Ltds' products are perceived as a high status symbol which reflect the advanced social and economic position of the owner.

  2. Causes of the Great Depression

    There was no doubt heavy discussion about the market and the national economy. The first of many 'mini' crashes and recoveries began on Monday, March 25, 1929. As a result, for the next six months, it was probably the most nervous market in the history of world.

  1. how the changes of the working environment affect employee relations

    Long term loans have an interest rate that tends to be no more than 2% above the average and it is what the banks and building societies get for offering to lend money to the customer. However with savings accounts, it is the amount that the account hold will get added extra into their account.

  2. Case Study: The Home Depot

    Home Depot experienced the same as GM experienced. They rapidly opened a lot of Home Depot stores in a market and became the world's largest retailer in the Home Improvement Industry. We can conclude that Home Improvements rapid expansion strategy is a strength that gave them the opportunity to stay ahead of their competition.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work