Pestle Analysis

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In today’s context, technology is very important to run a business. It is projected that a total of 23.88 million broadband lines such as DSL, FTTx will be used in the UK. By 2020 the UK will have nearly 20 million FTTx subscribers and in excess of 23 million superfast households. (Point topic,2017) Quick broadband opens various chances for the company. It can be used to set up an identity or website for the company as well as it can be used as a promotional tool which increasing the reputation of the company with less amount of expense.

In order to establish a business in any place, we should know about the legal factors of that place. One of the important components is national minimum wages. As, it is likely to be popular with 1.3m workers over 25 who will benefit immediately , but several big employers have said it will hit their profits badly. The Office for Budget Responsibility (OBR) has also warned that 60,000 jobs will be lost as a direct result. (BBC, 2016) The minimum wage in UK is £7.20 an hour but it is predicated to increase £9 an hour by 2020. High wage rate increase the cost for the company which will affect the profit whereas, high wage rate increases the productivity of the company. For the manufacturing company, high wage rate is both costly as well as beneficial. Due to high wage rate in UK, Kabra Group can face difficulty while establishing their business.

These days, UK government is becoming more alert regarding the emission of harmful gases from the manufacturing industries. At present, emissions of CO2 are approaching 40 billion tons a year. (BBC, 2016) Thus, UK government is taking strict action to decline the emission of CO2. And the UK government is trying to establish an eco-friendly environment. So, Kabra Group has to focus on reducing the pollution while manufacturing their products.

4. Conclusion

From my analysis, I think that securing an aggregate manufacturing industry over UK will be a splendid chance to Kabra Group. With the help of PESTLE analysis, it gives the positive situation to operate the manufacturing industry in the UK market. The decrease in the corporate tax rate and interest encourages Kabra Group to invest in other sectors. However, there might be more competitors due to low tax rate and interest rate. The increasing population growth of UK creates high chance of increasing its market share. As well as the increase in technology facility in UK provides opportunities to do promotional activities with low cost and generating high profits. Though, the wage rate in UK is high which involves more cost as well as it help in generating higher productivity of the manufacturing industry. Likewise, Kabra Group has to invest more on creating an eco-friendly industry which might to difficult for them. At last, I have confidence that Kabra Group might work effectively by establishing its manufacturing business in UK.

References:

Amos, J. (2016) Rate of carbon emissions put in context. [Online] Available from: http://www.bbc.com/news/science-environment-35867438 [Accessed on 1 March,2017]

BBC (2016) The new national living wage and you [Online] Available from: http://www.bbc.com/news/business-33463231 [Accessed on 28 Feb.2017]

Davies, C. (2016) Lecture slides. Pestle Analysis [Online] Available from: https://blackboard.uwe.ac.uk [Accessed on 24th Feb.2017]

Department of Transport (2011) Government response to the committee on climate change report on reducing CO 2 emissions from UK aviation to 2050 [Online] Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/4208/ccc-response.pdf [Accessed on 1 March 2017]

Gov.UK (2016) Autumn statement 2016: Tax updates and technical changes. [Online] Available from: https://www.gov.uk/government/publications/autumn-statement-2016-tax-updates-and-technical-changes/autumn-statement-2016-tax-updates-and-technical-changes--2 [Accessed on 24th Feb.2017]

HM Treasury (2017) Forecasts for the UK economy: A comparison of independent forecasts.[Online] Available from:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/591911/Forecast_for_the_UK_Economy_Feb_2017.pdf [Accessed on 24th Feb. 2017]

Kabra Group (2017) Welcome to Kabra group [Online] Available from: http://kabranepal.com/history.html [Accessed on 24 Feb.2017]

Market Oracle (2017) UK interest rates, economy GDP forecasts 2016 and 2017: The market oracle. [Online] Available from: http://www.marketoracle.co.uk/Article53952.html [Accessed on 1 March 2017]

Point Topic (2017) Point topic - UK broadband forecasts to 2020 - by technology [Online] Available from: http://point-topic.com/free-analysis/broadband-market-experiences-continued-consumer-squeeze-hampered-late-fttx-deployment/ [Accessed on 1 March 2017]

Pomerleau, K. (2016) Corporate income tax rates around the world, 2016 [Online] Available from: https://taxfoundation.org/corporate-income-tax-rates-around-world-2016/ [Accessed on 1 March 2017]

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