PESTEL Essay

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Subject Area:Business

Document 1

Demographics 2 2. Culture 3 2. Geography 4 3. The Environmental aspects of PESTEL 5 3. Energy and water consumption and waste 5 3. Waste dispose and recycle 6 3. Pollution 7 4. The Legal aspects of PESTEL 7 4. Employment Law 8 4. Product Safety Law 8 4. Health and Safety Law 8 5. Conclusion 10 References 10 Introduction Before an organisation can formulate strategy, it needs to scan the external and internal environments to create and sustain competitive advantage in the longer term. There are many techniques such PESTEL and Porter’s five forces which help to analyse the macro - environment of an organisation or industry. This report will focus on the application of Legal, Social and Environmental elements of PESTEL that affects soft drinks industry in the United kingdom. The Social aspect of PESTEL It is evident that the society in the United Kingdom is continually changing. And one of this changes is in the taste and preferences from the consumers. These changes greatly affect all big and small companies, including the soft drink companies. Therefore with these changes and emerging trends such as use of social media, have a significant influence on the consumer's demand and supply of the soft drinks therefore having a direct impact on the soft drink industry in general. These social aspects can be analysed under the following three subheadings. Demographics The soft drinks industry has various demographic factors that affect their market sector. Age is the primary factor since the industry has to obey some laws and the regulations depending on the different ages of the soft drink consumers. There is a broader population of age range which is referred to as the baby boomers.

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Where most of the consumers are at their old age, therefore their focus is more on life longevity. According to the Office of National Statistics (2017), the UK population is comprised of 18% of people who are 65 years and above. As a result, the ageing population in the UK affects the demand for the soft drinks market since this population has different taste and preference. According to the research done by the UK Scientific Advisory Committee, it was found out that the soft drinks contain much sugar and may lead to health problems such as, diabetes and obesity (Briggs et al. Culture The population growth today, implies that the soft drink industry could make many sales hence creating a bigger market share. Therefore as the culture evolves, the soft drink industry should also evolve.

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This will help the industry to go with the trend, hence maintaining their consumers and attracting others, and as a result the demand for their products rises leading to a high profit accumulation (Hill, 90). Most of the UK citizens are practising stable and healthier lifestyles (Datamonitor, 2000). Apart from these two leading companies, there are some other small companies like Cott Corporation. The globalisation has dramatically affected the soft drinks industry. This is because the rise in technology and the global exchange of information has increased the soft drink industries therefore requiring to make a smooth venture into various nations to boost the sales. Lion,). The Environmental aspects of PESTEL When considering environmental issues in the macro – environment, there are three challenges that the industry faces. Reduce the level of water used in the general production of the beverages.

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Replenish all the waters in the communities and the environment by use of the global network of the projects and also the local partnership (Kopnina & Helen,) 3. Waste disposal and recycling The soft drink industry in United Kingdom facing the problem of waste disposal and recycling the already utilised products and materials. Recycled glass is accountable for a significant percentage of the materials applied to manufacture new bottles. The result from this difficulty ensures that every major producer is efficiently recycling waste packages on their respective units of production. per hour (Gov. uk, 2018). Employees have to be given at least the needed minimum wage, and discrimination should not be tolerated in the place of work. In case any of these rules are altered, the industry has revised their procedures and operations to avoid being shut down.

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Product Safety law Sometimes the government puts legal limits to make sure that an industry’s products do not harm or fool the customers. Conclusion Although the soft drink industry in the United Kingdom proves to be of great contribution to meeting various needs and wants of consumers, it usually faces numerous problems in its legal, environmental and social factors. Therefore for it to continuously meet the demands from its consumers it must adhere to the changing taste and preference of its consumers. References Fagan, C. and Rubbery, J. Advancing Gender Equality through European Employment Policy: The Impact of the UK's EU Membership and the Risks of Brexit. Life cycle environmental impacts of carbonated soft drinks.  The International Journal of Life Cycle Assessment 18. Anderson, Kym, and Vicente Pinilla, eds.  Wine's Evolving Globalization.

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Cambridge University Press, 2018. Samuelson, and Patricia Sanchez Abril.  Business law and the legal environment. Cengage Learning, 2018 pp. Bertozzi, Federica, Chaudhry Mehr Ali, and Fahad Ali Gull. Resource Based View of an Organization and PESTEL Analytical Tool; an Analysis of Coca-Cola Company in Britain. Chhabra, Sheena, and Ravi Kiran. An Empirical Analysis of Total Factor Productivity in Food and Beverage Sector.  Productivity 56. Datamonitor. May).  British Journal of Industrial Relations 28. Gibson, Sigrid, et al. What can the food and drink industry do to help achieve the 5% free sugars goal?" Perspectives in public health 137. Guerrero-Lopez, Carlos M. Mariana Molina, and M. pp 90-105 Imamura, Fumiaki, et al. Consumption of sugar sweetened beverages, artificially sweetened beverages, and fruit juice and incidence of type 2 diabetes: systematic review, meta- analysis, and estimation of population attributable fraction.  Bmj 351 (2015): h3576.

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P 350- 357 Jones, C. M. c). Carbonated Beverages. Hoovers. Retrieved February 13, 2006, from http://premium. hoovers. Porter, Michael E. and Michael E. Porter. How competitive forces shape strategy. Quirmbach, Diana, et al.

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