PEST analysis example
- 19th February 2013
Example of a PEST analysis for a school, simply put the name of your school in front of every word ‘school’ use cmd f to find all the school words.
In this piece, I am going to discuss the Pest factors, and how they affect the business of which I am currently investigating. PEST analysis is an abbreviation for “Political, Economical, Social and Technological”.
There are many political factors that affect the School, this is because it is a public sector employee. The school is affected by government decisions concerning anything to do with education. The governments change from Labour to Conservative/Labour means that there will be a change in the policy towards education. An example of a political factor that affects the School is the increase in the leaving age from sixteen to eighteen, this means that students attend an extra two years of schooling. The increase in the amount of pupils in the school will mean that the school will have to have more finance to upkeep teaching standards. Another political factor is the decision of the government to cut public spending by £81bn, and the majority of cuts will come from education. As much as 25% cut of spending of education can happen. This is very bad news for this school, as school will probably have to stop teaching certain subjects (the least popular ones and maybe even more), which means that some of the teachers will have to be made redundant. This is very bad news for teachers, as they will worry about their jobs, however in the short run teachers might work even harder than before, in order to show their employers that they are needed in this particular school, in order to reduce the risk of redundancy.
There are many economic factors, which affect Purbeck School. The global recession of 2007/2008 has created a very difficult environment for businesses to operate in. during the recession, School has encountered new problems, as inflation is currently at 3.5 and wages have not rises as fast as inflation (government has decided to free the pay for the public sector workers), which means that the real disposable income of staff will be lower, so school will not have as much money to spend on new books, which means that school will not have enough money to spend on different departments, school will have to choose some departments, in which investment is necessary and spend money there, but it would mean that other departments get nothing (opportunity cost).
Social factors can affect the Purbeck School, for example the birth rate of the UK. Birth rate determines how many students will go to school in the near future, so when birth rate is low, then school will get fewer students and as school is getting money from the government per student, it would mean that the school would get less funding, which would mean that the school would have to withdraw some of the courses, as there would be fewer students available and there would be no point of teaching 5 students per course. Another social factor affecting Purbeck School is high unemployment. Following the global financial meltdown in 2007/2008, many people became unemployed. This is good news for the business, as the pool of people and their skills is greater, allowing school to recruit (possibly better teachers, staff), which should improve the effectiveness and efficiency of school, in terms of workload, as the best staff available will be recruited and the quality of teaching should improve.
The last PEST factor is technology. The Purbeck school has been affected by technology, as in a recent years the school introduced Laptops to Lessons, this has changed the way teachers teach their students, as they can now use laptops to show their students educational pictures, diagrams and video, which upgrade teacher skills can motivate students to work even harder and enhances students learning