(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

PESTLE Analysis of Hypothetical Supplement Company



             Political Factors.
             PSN is going to be heavily influenced by UK governmental policies and regulations.
             There are many regulations regarding sports supplements but a big issue that PSN will have to take into account is taxation. The UK Government has issued a further rise in VAT (Value Added Tax) of 20% in 2012 for all sports supplements. This will have a devastating effect on the sports supplement industry thus will make it harder for PSN to compete with competitors' prices.
             Minimum wage is another factor which will effect the companies expenses. Below is the minimum wage rates for the last three years.
             Year.
             21 and over.
             18 to 21.
             Under 18.
             Apprentice.
             2012.
             £6.19.
             £4.98.
             £3.68.
             £2.65.
             2011.
             £6.08.
             £4.98.
             £3.68.
             £2.65.
             2010.
             £5.93.
             £4.92.
             £3.64.
             £2.50.
             The table indicates that the minimum wage rate has increased for all ages, but most importantly for over 21 year olds who get a raise of 11p per hour. PSN will have to take these wage trends into consideration as they seem to be consistently increasing whilst planning their staff budget and managing their expenses.
             Economical Factors.
             One of the most important economical factors that PSN will have to adapt to will be the recession of the UK economy. The UK's economy is currently in a recession, in the past five years we've seen a significant decline in economic growth. This will have a large impact in the strategies that the business uses, as a bad economy generally means tough trading conditions, less profit and in turn means lower stock prices. If we take a look at the more recent UK GDP figures (gross domestic product, used to dictate the size of the economy) we can see that the UK is still in a recession. From the graph we can see that the GDP has fallen yet again, after many hoping that the Olympics would give a boost to the economy, its clear that this was not the case as GDP has fallen by a further 0.4%.
             Manufacturing output is also down by 8%, implying that the overall demand is low.


Essays Related to PESTLE Analysis of Hypothetical Supplement Company


Got a writing question? Ask our professional writer!
Submit My Question