UK PEST ANALYSIS

COMPILED BY
Syed Isabat Hussain Rizvi
Shakeel
Vikrant Rana
Vivek Pradhan
Wafee Nazir Beigh
Zahid Nawaz


PESTLE ANALYSIS
Summary
When companies are looking to invest in different countries or locate offices in those countries,
their management will often seek to run a PESTLE analysis of that country. PESTLE stands for
political, economic, social, technological, legal and ecological elements within what is called an
"external macro-environment," which can range in size from a major city to an entire country.
POLITICAL MAP
Ireland
England
Atlantic Ocean
Official Name United Kingdom of Great Britain and
Northern Ireland
Capital London
Population 62.2 million
Area 244,108 sq km
Currency Euro,Pound Sterling
Religion Church of England (Anglican), Roman
Catholic, Church of Scotland (Presbyterian),
Muslim
Literacy 100%
Languages English, Welsh, Scots and Gaelic
Major Cities London, Manchester, and Birmingham
Climate Moist with moderate temperatures
INTRODUCTION
Political Analysis
Overview of UK Political System
Great Britain is a constitutional monarchy. This means that the official head of
the State is the monarch (a king or a queen) but his or her powers are limited
by the constitution. For years it has been Her Majesty Queen Elizabeth II.
Parliament

The UK Parliament is the supreme legislative body in
the UK and British overseas territories. The
parliament is a bicameral assembly, with an upper
house, the House of Lords, and a lower house, the
House of Commons. At its head is the Sovereign,
Queen Elizabeth II. The House of Commons and the
House of Lords are both involved in passing
legislation, scrutinizing the work of the government
and debating current issues. Members of the House
of Lords are mostly appointed by the Queen. The
House of Lords acts as a chamber of review for
legislation passed by the lower house. The Supreme
Court of the United Kingdom is now the highest court
for all matters under English law, Northern Irish law
and Scottish civil law. Members of the House of
Commons are publicly elected. Members of the
Commons alone are responsible for making decisions
on financial Bills, such as proposed new taxes. The
Lords can consider these Bills but cannot block or
amend them.




At Present
Principal Government Officials
Head of State--Queen Elizabeth II
Prime Minister (Head of Government)--David Cameron (Conservative
Party)
Deputy Prime Minister--Nick Clegg (Liberal Democrat Party)
Secretary of State for Foreign and Commonwealth Affairs--William
Hague
Ambassador to the U.S.--Nigel Sheinwald
Ambassador to the UN--Mark Lyall Grant

ECONOMIC FACTORS
The first country in the world to industrialize in the 18th and 19th centuries.
The extensive war efforts of both World wars in the 20th Century and the
dismantlement of the British Empire also weakened the UK economy in global
terms
The 6
th
largest economy in the world by nominal GDP
The capital, London, is a major financial centre for international business and
commerce. The British economy is substantially boosted by North Sea oil and
gas reserves, worth an estimated 246.2 Billion in 2007.
In 1973, the UK acceded to the European Economic Community which is now
known as the European Union after the ratification of the Treaty of Maastricht in
1993.

. In response to the financial crisis, the British Government implemented a wide-
ranging stability and recovery plan that included a fiscal stimulus package,
bank recapitalization, and credit stimulus schemes.
The UK economy grew by 1.1 per cent in Q2 of 2010, the fastest growth in 4
years, accelerating from the 0.3 per cent growth recorded in Q1 of 2010 and 0.4
per cent growth in Q4 of 2009. The annual rate of growth was 1.6 per cent in Q2
2010.
SWOT ANALYSIS OF UK

Weakness and Threats
Relationship with EU

Exchange Controls

High Tax Rates

Protection for Individual Rights

Over-centralized System of
Government

Massive Defense cuts

Fiscal Austerity Programs

Strength and Opportunity
Political stability

Flexibility of constitution

European Union Member

Bilateral relationship

New Banking Regulations

UK Code of Governance

Price Control policies

Tax Incentives
What makes the UK Europes leading investment destination for companies relocating
and developing their global business?

1. The easiest place to set up and run a business in Europe: The World Bank
found that it takes 13 days to set up a business in UK, compared to the European
average of 15 days.

2. An Internationally Competitive tax environment for foreign investors:

3. The best place in Europe for doing business: The World Banks Doing Business
2010 ranks the UK fifth in the world.

4. The least number of barriers to entrepreneurship in the world:

5. A leader in innovation
CONCLUSION
Top 20 reasons to do business in the UK

6. One of the most stable political environments to do business (IN SPITE OF COALITION
GOVT.)

7. Stable regulatory environment


8. One of the easiest countries to register a property

9. Speaking in the international language of business: operating in English gives
firms in the UK a natural advantage when communicating globally.

10. Progressive communications network: The UK has the most extensive broadband
market


11. Home to Europes number one city for business for the 20th year London is the
world's leading financial services centre
12. Top talent: According to the Times Higher Education Supplement (THES), the UK
has the top five universities in Europe and two of the top four globally.

13. Springboard to Europe: The UK is the number one gateway to Europe, giving easy
access to the 27 member states of the European Union, the world's largest single
market, with its population of nearly 500 million.


14. The UK has claim to 23 Nobel prizes in the life sciences. (medicine and chemistry).
UK researchers produce 16 research papers per US$1 million of research funding


15. Number one location for European headquarters:

17. Outstanding transport links: The UK offers world class transport links.


18. High quality of living: UK residents enjoy a high standard of living, education and
recreation. Personal taxes are low, publicly-funded health is free to all and there is a rich
cultural heritage and abundance of leisure facilities.


19. Magnet for foreign investment: In 2009, the UK attracted 432 new investments and
expansion of existing investments




20. Productivity rapidly increasing: Historically, the UK had lower productivity than its
main competitors, but this is changing and the UK has closed the gap with many
countries and overtaken others
Thank you