PEST analysis, (Political) in the UK - Speech or Presentation Example

PEST analysis PEST analysis Political factor is one of the aspects of PESTLE analysis; a tool used to analyse change in a business environment. In UK, the political factors have an impact on any business organization in terms of legal issues and regulations of the government. They define both informal and formal rules under which a business organization must operate (abhaPandey 2011).There are a number of political factors that are currently affecting business organizations in the UK. The first one is tax policy.

In this case, Britain has created a new tax relief meant to expand opportunities for investment in new social impact bonds and social enterprises. Individual making investment will be able to claim income tax reduction as an income tax relief. In the western world, the corporate tax rate in Britain is believed to become one of the lowest tax rates. Corporate tax rate has been dropping from 34% in 1990 to 24% in 2013 (Neville 2013). The introduction of new tax relief will lead to further reduction from 24% in 2013 to 21% in 2014.

The second political factor is labour law. Currently the UK government have introduced regulations that will implement key changes to the obligations of redundancy collective consultation. This was approved in 6th April, 2014 and there would be publication of new Acas guidance for handling redundancy consultation (lorber & Novitz 2012).The third one is the environmental law. There have been implementations on environment regulations known as extended producer responsibility. These regulations are derived from European legislation and ensure that producers of particular products take full responsibility of reprocessing, recycling, and finance treatment of these items.

The other political factor is trade restrictions which are inform of sanctions in the UK. The Sanction measures that have been applied include arms embargoes and several other trade control restrictions. Arms embargoes prohibit exportation of dual-use-items-goods and weaponry which have both military and civil use (Kenner 2011). The last political factor is technology. According to internet economy of UK, internet has allowed access to any information transforming life in UK. Technology use in UK has increase dramatically as evident in the use of smart phones.

The rapid growth in tables, data “dongles”, and smart phone has enabled users to perform a lot of task both at home and in the office (Kenner 2011). The use of smart phone has doubled between 2008 and 2010 as shown below ReferencesabhaPandey. (2011) What is PESTLE Analysis?, [Online], Available: http://bpmgeek.com/blog/what-pestle-analysis [25 Apr 2014]. Neville, S. (2013) Budget 2013: corporation tax to be cut to 20%, [Online], Available:http://www.theguardian.com/uk/2013/mar/20/budget-2013-corporation-tax-cut [25 Apr 2014].

Kenner, J 2011, European Union Legislation 2011-2012, 4th edn. Routledge, London.Novitz, T & lorber, P 2012, Industrial Relations Law in the UK, Intersentia, London.