Benefits Of PEST analysis
Benefits Of PEST analysis
EXPLAIN THE PURPOSE AND BENEFITS OF PEST ANALYSIS.
PEST analysis is used to evaluate the political, economic, social and technological influences that organizations might face when they are about to start a project. It provides external factors that organizations should take into consideration before they start the projects. In this case study, the UNISION used PEST analysis to investigate the external environment surrounding migrant workers; it helps UNISON to identify and understand the reasons why migrants come to the UK and the issues they face. PEST analysis possesses several advantages; first of all, it is relatively simple and only costs time to do, the only thing that managers should do is to brainstorm from four different aspects and summarize their perspectives.
Secondly, PEST analysis helps managers to understand their business better. Since managers have to do lots of detailed research from four different aspects, they might find some problems of their business, which they never noticed or considered before. Last but not the least, PEST analysis helps companies to avoid the future threats and difficulties. Owing to PEST analysis involves the external threats of organizations, although some of them are unpredictable and inevitable, it will still be possible for companies to take precautions and minimized the loss that might be brought by the threats.
2. OUTLINE THE FACTORS THAT COULD LEAD TO EXPLOITATION OF MIGRANT WORKERS.
First of all, the employers were ignoring employment law. Some companies were paying the migrant workers less than the minimum wage while others forced workers to worker longer than the working time directive. Secondly, migrant workers have language barrier. The majority of the workers have the difficulty in communicating in English; so, they are always reluctant to complain about their treatment by employers while they might not understand the content of their employment contracts and companies’ rules very well. Some companies might use the language barrier to exploit the migrant workers. Then, the migrant workers may also be exploited owing to the shortage of right protecting awareness and racist attitudes.
3. ANALYSE THE FACTORS WHICH HAVE LED TO INCREASED IMMIGRATION TO THE UK IN
First of all, many workers move to UK because the free visas and the expansion of the European Union. Secondly, according to the case study, the average monthly salary in the UK in 2007 was almost £2,500 whereas in Poland it was £500. Lots of workers who were from less economically developed countries were willing to move to UK in order to have a higher salary and better living standard. The migrant workers are also able to send money back to their families who remain in their home countries. Thirdly, migrant workers went to UK because there were many jobs that local people do not want to do owing to the poor working condition and wages, those migrant workers can take these jobs easily without any competition. Moreover, technological factors also promote people to move to UK. For example, the development of technology created job positions and reduced the cost of transportation; online service allowed workers send money to home easily.
4. EVALUATE THE EXTENT TO WHICH THE UK ECONOMY BENEFITS FROM MIGRANT LABOUR.
In political factors, migrants contributed to the exchequer by pay tax. In economic factors, migrant workers increased the size of the total labor market and they took the jobs that local British people do not want to do, such as jobs in agriculture, hospitality and food packing. As the result, the GDP of UK increased 0.5% by migrant workers, which was equivalent to £6 billion in 2006. In addition, some business leaders claimed that migrant workers always have a more positive work ethic than the native worker, which means migrant people are more keen to work, this inspired companies to be more competitive and boost the economic development. In social factors, migrant workers replenished the shrinking workforce that caused by aging population in Britain. Also, having workers from different countries means having various cultures and experiences, this will help companies to develop in a multicultural way and inspire the people to create more innovative products.