A PEST analysis is conducted below in request to determine the macro-environment of United Kingdom which Fullers operates in.
Political Environment
Tax Policy
before long the duty on beer is 35 pence per pint in the UK, devising it one of the highest taxed countries in the EU. Other EU countries such as France and Germany have 5 pence per pint (BBPA beer duty 2008).
Labour Laws
The nominal prosecute which indicates the lowest wage rate Fullers can expect its employees in wages, it really impacts Fullers sales and operations. The current minimum wage for employees 22 years or older is 5.73, (direct.gov.uk, 2009).
Influential shift unions in UK also have an influence over the relations between employee and employer.
Trade Restrictions
UK as a member of EU is subordinated to EU legislation concerning free movement of people, capital and goods and serve therefore UK citizen can bring from other EU members significant amounts of alcohol. The British Beer and Pub Association (BBPA beer duty 2006) estimate that 16% of the alcohol in the UK is personally imported.
On the other hand, these regulations puff the opportunity for exports which may view higher revenue collectible to common European market.
Political Stability
UK is politically stable. It is a natural monarchy democracy with general elections for the parliament. Government therefore changes and different presidential term will also enforce different laws and policies which will affect the business climate for Fullers and other companies.
economic Environment
Economic Growth
Economic growth is measured in the Gross Domestic convergence (gross domestic product), which is the total output of a country. In 2008 UK entered the ressesion with the negative GDP growth of -0,7%. According to CBI in 2009 GDP will devolve by another -3,3%. Year 2010 is forcasted to be the break apex in the recession and according to CBI the GDP of Quarter 3 should become a possitive figure....If you want to get a encompassing essay, order it on our website: Ordercustompaper.com
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