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133398848 Uk Pestle Analysis Part 1 Essay

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Country Profile
United Kingdom
In-depth PESTLE analysis

Prepared Date: Feb 2013
Prepared For: ISMAR Financial
Prepared By: Waris Hussain
This profile analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure in United Kingdom. Each of the PESTLE factors is explored in terms of current strengths, current challenges, current opportunities and current threats. Summary

Key findings
The United Kingdom of Great Britain and North­ern Ireland is situated on the British Isles, a large group of islands lying off the north-western coast of Europe. The total area of the United Kingdom is 244 square kilometers. Great Britain is situated in the temperate zone of Europe. The nature of Great Britain is greatly af­fected by the sea. The territory of UK can be divided in four areas England, Wales, Scotland and Ireland. The coastline of Great Britain is greatly indented, especially in the west and north-west where the moun­tains come close to the coast. Great Britain enjoys the humid and mild marine West-Coast climate with cold winters and warm sum­mers and a lot of rainfall throughout the year. The prevailing winds blow from the south-west. The south of England is often called the "Garden of England", because there are many gardens and orchards there. United Kingdom currently has political stability; it has good bilateral ties with many countries but currently has tensed relationship with European Union. In United Kingdom constitutional monarchy framework is followed in which Monarch is the head of state and the Prime Minister is the head of government. Currently Queen Elizabeth is serving as a monarch and David Cameron is acting as Prime Minister. Following the May 2010 general election, the political situation in the country is stable. In 2010 election Conservative party headed by David Cameron won the election against the major contender Labor party and Liberal Democrat party In the earlier election Labor party headed by Tony Blair won the election by full majority. The UK is one of 27 member states of the European Union (EU) and is subject to EU legislation but UK is not part of the euro zone. The chances of its joining EU has further decreased after UK blocked proposed changes to the EU Lisbon treaty aimed at addressing the crisis in the euro zone, which by the autumn of 2011 had reached an acute phase. As per the survey of 2008, UK is the 8th most politically stable place to live in because there is less risk of military invasion. Australia has the strongest relationship politically and on economic matters with UK. The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Sharply declining home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the government to implement a number of measures to stimulate the economy and stabilize the financial markets. In 2010 government initiated a five-year austerity program, which aimed to lower London's budget deficit from over 10% of GDP in 2010 to nearly 1% by 2015. GDP fell 0.1%, budget deficit remained high at 7.7% of GDP and debt continued to increase. The aging population, Ethnic and religious differences these days is concern for the UK government but the literacy rate in UK is their power. The impact of terrorism and political violence has been a major issue in British life over many years. The complexity of cultural and social interaction in Britain leads to discussions of race, ethnicity and deprivation amongst minority groups. The status and problems of minorities are a continuing challenge for British governments despite efforts to produce a more ‘inclusive society’, which is an ambition, shared by all the major political parties. An added dimension is the apparent growth of race-related crime and the role of various minority groups. Literacy rate in UK is near to 100% and government wants to increase their investment on Education services as it is one of their most important exports. Furthermore there is no difference on the basis of sex in employment area. The European Innovation Scoreboard 2008 ranks the UK one of the innovation leaders, with innovation performance well above that of the EU average and all other countries. The UK has a strong track record in science and innovation. It possesses four of the world’s top six universities, and a research base that is now second only to the US in the G8 group of countries for excellence, producing 12% of all cited papers and 14% of the most highly cited papers. The UK is also recognized as one of Europe’s ‘Innovation Leaders’. For over a decade, Government policy has consistently supported the development of the UK’s scientific and technological capabilities. This has been underpinned by record levels of investment in science of over GBP 40 billion. Since the early 1990s, the UK has made noteworthy progress in dealing with number environmental pressures from economic growth. It achieved strong decoupling for major air pollutants and CO2, for water withdrawals and for agrochemical consumption. This progress reflects both the reshaping of the economy and the strengthening of UK environmental policies in the EU context. The UK is committed at the highest level of government to environmental protection and sustainable development. Yet, it could still improve its ranking among OECD and EU countries with respect to a number of indicators of environmental pressure intensity. TABLE OF CONTENTS

Overview 2
Catalyst 2
Summary 2
Key Facts and Geographic Location 6
Key facts 6
Geographic location 7
PESTLE Analysis 8
Summary 8
Political Analysis 9
Overview of UK Political System 9
Election, Political Parties and their Current Representation 10
General Election of 2010 11
Current Strength and Opportunity 12
Current Weakness and Threats 14
Economic Analysis 16
Overview of UK Economic 16
Type of Economic System 17
Government Intervention in Market 17
Comparative Advantage in UK 18
Exchange Rate and Stability of UK currency 20
Financial Markets 21
Infrastructure Quality 21
Business Cycle Stage and Economic Growth 22
Skill Level of Workforce 23
Labor Costs 24
Unemployment Rate, Inflation Rate and Interest Rate 24
Social Analysis 26
Overview of UK social system 26
Demographic Characteristics 27
Class Structure and Education 29
Culture 30
Entrepreneurial spirit 30
Health and Environment 31
Challenges for United Kingdom 32
Technological Analysis 33
Overview of UK Technological and Scientific Environment 33
Innovation in Macro Economy 33
Important Scientific Researches by UK scientist 35
UK society and Technology 35
Nobel Laureates 35
UK Vision for Future Technologies 36
Environmental Analysis 37
Overview of Environment in UK 37
Carbon Dioxide Emissions 37
Ecological Footprint 38
Environmental Issues in UK 38
Key Environmental Regulation 38
Current Threat 38
Location Analysis 39
About Geographical Location 39
United Kingdom Surrounding Countries 39
Conclusion 40
Appendix 41-45

Key Facts
Country and capital
Full name
United Kingdom of Great Britain and Northern Ireland
Capital city
Government type
Parliamentary constitutional Monarch
Head of state
Queen Elizabeth 2
Approx. 63 million
Pound sterling (GBP)
GDP per capita PPP
$ 36,510.80
Internet domain
Demographic details
Life expectancy
80.17 years (total population)
78.05 years (men)
82.40 years (women)
Ethnic composition (2001 census)
White (of which English 83.6%, Scottish 8.6%, Welsh 4.9%, Northern Irish 2.9%) 92.1%, black 2%, Indian 1.8%, Pakistani 1.3%, mixed 1.2%, other 1.6% (2001 census) Major religion (2001 census)
Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%, Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1% Country area
243,610 km2
English, Scots, Scottish Gaelic, Welsh, Irish and Cornish
Nuclear reactors, boilers, machinery and mechanical appliances (including parts thereof), Mineral fuels, mineral oils and products of their distillation, bituminous substances and mineral Imports

Machinery, chemicals, vehicles, metals, agricultural products, textiles  

Geographical Location

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. The UK co...

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