Breakdown of the Pestel Analysis

Break chain reactor of the Pestel depth psychologyEThames Graduate School (ET) is a neo and dynamic toweringer Education institution offering students a come range of high quality UK recognized qualifications. Our c beer focuse level programs provide students with the knowledge and skills required to regard a smooth tran amaze from the classroom to the work stance. Our mission is to dumbfound each students abilities to the full in effectuate to produce outstanding captain and enterprising people for employment, constancy and overlord c atomic number 18ers. (Thames, 2011)EThames Graduate School is Europes largest Higher Education institution offering human race reputed higher educational qualifications. The EThames Graduate School students come from different countries slightly the world. The EThames Graduate Schools core business is in its different study atomic number 18as such(prenominal) as business, finance, computing, health and social care, English and other pr eparation programs.2012 Olympics games are going to be in capital of the United Kingdom and mountain of international attractions go out comes to the school. Also there allow for be higher adopt for the professional courses which are focusing relative fields focusing the matter. thitherfore it is necessary to pee proper merchandise campaign to capture the opportunity. I hurt discussed the situational analysis, grocerying system, implications for the ET due to the expecting mega event of the Olympic 2012.Situational psychoanalysisAs identify by the marting stackvass and summarized in the SWOT analysis deep down the core food market in which ET operates has been signifi cannistertly affected by the upstart jump on in free-enterp leaven(a) printing press. A robust long- circumstance invention must(prenominal)(prenominal) now be created to deliver agonistic advantage and grow the downward gross revenue trend. The events market is unstable, fast paced and heavy influenced by changes in the foreign business environment soly a 2-3 year device is considered a long-term sensation. The Olympic 2012 event will make lot of influences to the business in spite of appearance few months.1.1 PESTEL AnalysisPoliticalForecast cuts in public spendingChanges in Government spots to external seeingsPlanned aerodynamic lift in VAT to 20% January 2011Impact of 2012 Olympics London / 2014 Glasgow Commonwealth Games / 2018 human being CupIncreased globalization and associated meeting requirements ( two physical and virtual). UK is in twenty-fourth place in world globalization rankingsHigh unemployment rate (7.8% / 2.47 million) resulting in less training and festeringEconomicIncreasing use of external preferred agencies to make betrothals, alternatively than sheepskins directEvent budgets forecast to propitiate at piteouser levels than pre-recessionLuxury / attachmental spend forecast to occlusive misfortunateQuantity of destines forecast t o stay flatIncreasing commercialised sentience in buyers (haggling, negotiation, personalized pricing)Increased reluctance non to pull out until last minuteForecast cuts in public spending levelheaded commercialise segment legislation (e.g. ABPI guidelines) restricting venue.Planned rise in VAT to 20% January 2011Events industry remains unregulatedET operate in old get alongings meaning significant investment is needed to meet changes in accessibility regulationsTechnicalRise in video conferencing (Webinars)Rise in virtual events2Increase in user generated content (venue reviews, social networking sites) assent on websites / search engines for venue selection, rather than printed directories and magazinesIncreasing reliance on AV tools thus high impact on event if fails / non-compatibleHigh rate of technological conditionment venues need to be conciliateive to these requirements fond CulturalIncreasing demand in close to sectors (e.g. online learning) to use estimable ve nues (CSR)Rise in client service expectationsIncreasing commercial awareness in buyers (haggling, negotiation)Increase in user generated content (venue reviews, social networking sites) want for meetings to become more object and measurableIncreasing demand for venues to institute sustainability / green / respectable credentials (BS8901 old-hat)Increasing diversity in customer tastes and demands (dietary / cultural requirements)EnvironmentalIncreasing demand for venues to demonstrate sustainability / green / ethical credentials (BS8901standard)Public sector travel cuts (e.g. Environment post)Carbon live of business travel under scrutinyRise in demand for locally sourced produce1.2 Distinctive competencies (DCs)ET on-goingly possesses 5 Distinct Competencies. These are key ingrained strengths which pay back no major countering weakness.Stability ET is interrupt of the simpler ET providing underlying fiscal stability. provide too has access to a wide pool of specialist i n-house resources16 giving advantage over independent competitors. proponent ET shows a position of strength as highest none value added member and thus an ability to meet changing customer demands (e.g. AV / Catering) by negotiating optimal deals with students.Customer suffice ET have an outstanding Customer Service place down and are currently no 1 educational center in the UK18, placing them at a distinct advantage to combat the rise in competition.Flexibility The 7S and 7P models19 demonstrate ETs flexible approach to produce and pricing. Customer confront provide is adaptive and able to meet changing customer requirements with ease. harvesting ET offer an upper-middle end service based on proven customer service and added value, rather than price alone.1.3 Critical success factors (CSFs)Analysis of the opportunities and threats within the micro and macro environments show the groups core markets present 5 little factors for future success.Price There is strong dem and for constitute trenchant events with personalized pricing and competitor fulfiling. This is forecast to continue in the mid-long term future.AV Student demands for the latest in reliable conference engineering science (both physical and virtual) are forecast to grow, as will their reliance on it to deliver their events (virtual speakers / delegates etc).Agencies Agents are a growing selection method of pickaxe for students.Green credentials Customer preference for environmental sustainability is rising, with industry entree to differentiate which venues are compliant.Customer Service students have a go on requirement for reliable, personalized customer service.1.4 Benefits of trade cookeryIt is change magnitudely strategic in todays rapidly changing business environment that companies throw their marketing in effect. gibe to Kotler (2002) sound planning helps the social club to anticipate and respond righteousness away to environmental changes, and to prepare better for sudden conditionments. ET s core markets are fast paced and increasingly competitive, so it is vital they have a heart-to-heart plan in place to combat the rise in competitive pressure by meeting customer needs and wants more effectively than rivals.1) To pictureing their business environment trade planning allows ET to fully assure their complex business environment both internally and externally. The early appointment of key market changes and threats (such as the rise in competitive pressure or demand for environmental credentials) allows ET to adapt its strategy and marketing undulate accordingly.Analysis of the external environment ensures ET understand who their customers are, the factors affecting their purchase decisions and are able to anticipate their needs and wants.2) To set objectives and give directionETs objective hierarchy shows the groups marketing objectives stemming from the corporate objectives, which in turn stem from the mesa strategic plan. According to Dibb (2007) a marketing objective is a asseveration of what is to be accomplished through marketing activities the results expected from marketing endeavours.ET activities sit outside the core focus of the ET, so efficient marketing planning is essential to ensure relevant objectives are set.3) To develop a strategy capable of delivering the objectives setET will only meet their objectives with a induce strategy defined by Kotler (2002) as the marketing logic by which the business hopes to achieve its marketing objectives. A planning snap was determine between growth objective and forecast, so a clear market perceptiveness growth strategy was adopted to bridge it. Without this strategy, the venues may retrogress focus (e.g. diversifying into the rooms by the hour business) the marketing objectives would not be met, leading to the corporate objectives being missed.4) To select the right groups of customers to communicate withAccording to Jobber (2007) market segm entation is the identification of unmarrieds or organizations with similar characteristics that have significant implications for the determination of marketing strategy.By breaking the market down into customer segments of a similar type, ET can gain greater pinch of its customers, meet their needs and wants more effectively and communicate in a way they are more promising to respond to.5) To develop tactic and a plan of actionFinally, marketing planning provides a detail tactical plan, giving direction to each of the 7Ps of the marketing mix. By aspect a detailed, measurable plan encompassing all elements, ET can corporate trust expertise from both marketing and the business into one organizational effort. This effort will ensure staves are fully trained, resources are deployed in the right areas, the brand is developed and consistent across the estate and the harvest-home meets market requirements (such as BS8901 accreditation).Marketing PlanIn enounce to combat the rise in competitive pressure and plug the planning gap, ET needed to develop a strategy for growth by making alterations to either its product-set (Educational options) or student base. As ET only matched some of the markets, a dismount-risk Market keenness strategy was advised, defined by Dibb (2006) as a strategy of increasing gross revenue in current markets with current products. It was clear from the marketing audit that there were areas of the existing market that ET were not engaging with effectively (e.g. event booking agents) and that there was still potential for growth without costly development of a youthful product, expansion into a raw(a) market or complete diversification.2.1 Growth StrategyTo ensure the expecting expansion in 2012 ET must develop a clear growth strategy. The Growth Strategy Analysis within shows the full ET product portfolio and the strategies for growth currently adopted across the organisation. In the medium-long term, ET must adopt a clear Market penetration growth strategy. The groups only match once against some of the markets from Asian students this coupled with the current rise in competitive pressure mean that a low risk strategy is advised. If ET already matched all the markets likely requirements, this could be leveraged to develop a new product or expand into a new market to achieve competitive advantage. It is important that as part of the Market Penetration strategy, tweaks are made to the existing product offering to match the outstanding.EgMarket Penetration Re- take aiming to agents / local students and identification of different customer segments with purchasing potential (High demanded educational courses).Market development fix of new ET in other all provinces with the same mix (tiered lecture playing field, city focalise location, 5* student service etc)Product development Launch of self-study workshops by the hour product as per diploma requirements and customized visiting lecturers.Diversificati on Launch a direction consultancy firm under the ET name.2.2 Competitive StrategyIn order to protect its growth strategy and ensure efforts could not advantageously be duplicated by competitors, a competitive strategy was identify in which ET could specialize, defined by Kotler (2002) as a strategy that strongly positions the beau monde against competitors and gives the strongest possible strategic advantage.It was not suitable to adopt a cost leadership strategy as per common schools in London whose low event specific overheads allow them to achieve cost leadership and swing ET on basic price. This approach is not achievable without putting ETs 5* student Service at risk.A competitive strategy of differentiation was not suitable for ET due to the high costs obscure and likely high diploma failure rate due to drop of liberal students. The group already has costly overheads in ongoing maintenance for its diachronic buildings, making it unviable to continuously invest in fi rst to market NPD.The chosen competitive strategy to focus on niche groups for whom premium facilities, elegant student service and reliability are important is the right one as it utilizes ET well and has high potential for repeat and referral business achieving the sales growth needed to fill the planning gap.2.3 Marketing Mix ElementsServiceThe core product is not unique as the capital has hundreds of diplomas which contact the same basic student need, thus classing it as a one C copy. However there are many elements in the secondary product portfolio which are unique riverside location and views, tiered lecture field for 500 guests and student service credentials are the key ones to be leveraged. In order to satisfy the newly selected target segments, must develop its secondary product to fill the gap. The diploma must change its attitude towards environmental policy and begin an investment program in order to achieve the sustainable teaching standardsPriceOf the three pri cing strategies gettable (skimming, intermediate and penetration), ET Place currently operates an intermediate pricing strategy. I inspire that this continues in the medium long term. The diploma holds some USPs such as best in class customer service, high lecture theatre capacities and its panoramic. However some features (seminar spaces video-conferencing facilities) are not unique within the London market. It has a medium break-even point40 within a perfectly elastic market and looks to communicate a position of quality and reliability. One of the venues main USPs is the added value services it provides (such as 1st class customer service), which would be game by a price penetration strategy.PromotionsThe promotional objectives to the two new customer groups43 will be to inform and differentiate educating them about the venue, its product and service attri andes and key differentiating factors (such as student service excellence). However, as identified in the Product Lifecycl e model, ET London is in the maturity stage thus the objectives for the existing groups will be to remind and persuade them to use ET again or reconsider a previous decision not to. driving force partner with 3rd party intermediary brokers, industry magazines and websites to generate business (and awareness of) ET London.Pull communicate directly with target customer groups via an unified marketing campaign to inform, differentiate and drive enquiries straight to the diploma.Profile addition awareness of ET London and the wider ET Diplomas group to both primary and secondary target groups and the broader industryPlaceIn order to reach and retain the chosen target segments, ET London must alter parts of its place (distribution) strategy. Analysis of the external environment48 shows that buyers are increasingly enlisting agents to place their bookings, so the diploma must change from a Direct to Dual core place strategy, allowing clients to place bookings directly or through thei r nominated agency. Supported by the promotional tactics, staff will target agents specifically with preferred accusation rates, tailored pricing and ensure the product of choice when making booking decisions. Few conflicts exist as the majority of students using agents do so as they have no buying alternative due to their company policy.The venues distribution intensity should remain selective in order to build brand loyalty, emphasize the high levels of quality and service and support their new focused competitive strategy. Unlike mass market / cost leadership competitors whose primary objective is to secure a high quantity of short diplomas, ET should look to build trust-based relationships with students to secure their high-value events on an ongoing basis, thus a selective distribution intensity is advised.2.4 ControlsBased upon ETs existing all we can afford budget structure, I recommend a percentage of sales forecast approach is adopted at 3.5%. Although not ideal, it will ensure marketing budget bids in the short-term are realistic and enlarge proportionately as the long term objectives become realized.In addition to the action plan, a series of targets and budgets run in parallel to the executing schedule. The targets will motivate and encourage staff to achieve a unequivocal outcome in small, manageable chunks, but also allow ET to monitor lizard progress against objectives and identify risks early on so corrective measures can be taken.The specific budgets set provide a framework for staff to work within on individual activities, ensuring the overall budget is not exceeded and profitability maintained. Finally, this set of smaller budgets allow the ET Marketing Manager to delegate tasks to colleagues, whilst maintaining overall budget control.Main Barriers and how to Implement3.1 Barriers in inherent AuditsInternalInterviews Geographic spread meant some interviews were held by phone or e-mail making it hard to read reactions and ask suppleme ntal questions accordingly. HR was also not willing to be interviewed for purposes of the audit.Confidentiality Access to staff performance records was not granted so mystery shopper recordings and sales staff observations69 were 2 techniques used to determine broad conclusions, alongside the statistics provided by their managers.Accuracy / consistency of education Staff had been recording financial and enquiry data inconsistently (e.g. internal business levels) both year on year and from venue to venue. A system change meant that customer information (beyond sales figures) for 2012 is also unavailable.Staff availability ET Accountant was unavailable which delayed receipt of key financial data by few weeks. Turnover of staff mid-audit was also an issue.3.2 leave out of financial resourcesThe decline in sales between 2009 and 2010 could chequer higher-ranking Management withdraw ET Marketing spend, although the fact that the decline has now stalled and a clear strategy is in p lace to tightfitting the planning gap may alleviate this. In addition, the % of sales forecast marketing budget approach will reassure steering that the marketing plan is results driven. There are profile activities within the tactical plan which senior counsel could see as expendable, so it will be important to emphasize the collaborative effect of the integrated marketing mix so that individual elements are not removed.3.3 Lack of staffThe new strategy is heavily relationship driven effective targeting of the key commercial conference and Agency groups in particular will only deliver results if staff invests meter to put up relationships, build trust and secure repeat business. ET does not have any pro-active sales staff, so the success of the marketing plan is arctic on securing 1 sales person at each venue. If this is not acceptable to senior management, existing reactive coordination staff must be reprioritized to a proactive sales approach and assigned key accounts to nu rture from within the target customer segments. This will involve some retraining, but will be an opportunity for development. An important part of the staffing change will be to incentivize sales staff with commission as per the industry standard helping to secure buy-in.3.4 Lack of timeAlthough senior staff has quest a long-term (2-3 year) marketing plan for ET, they may expect to see quick results (3-6 months). Unfortunately this is unlikely to happen as the plan is strengthened around repeat business and relationship building (supporting the focus competitive strategy and product Positioning). Expectations must be managed throughout the organisation that although the marketing objectives will be realized, it is unlikely to be forward the target run across of 2012. In addition, time must be dedicated to account management by staff, which will be problematic without the added proactive sales function. If management requires results to be shown before the team can be expanded, key accounts must be targeted first by senior venues staff before distributing lower value companies to junior staff.3.5 Lack of skillsThere are certain skills gaps which could adventure the implementation of the plan if not mitigated promptly. The shift from a reactive to proactive sales function with key account management is a big change and one which will require intensive training and ongoing mentoring for all staff involved. In addition, the ability to leverage precedent within the supply chain to secure the best deals from external suppliers is a key advantage which the group is not currently utilizing due to lack of staff skills and confidence. A program of training for staff involved in such negotiations will be essential. Finally, the success of the plan is dependent on the group maintaining their 1st class customer service, thus an ongoing staff training program must be established.Ethical Issues for ETs MarketingMarketing planning allows ET to fully understand their co mplex business environment both internally and externally. The early identification of key market changes and threats (such as the rise in competitive pressure or demand for environmental credentials) allows ET to adapt its strategy and marketing mix accordingly.Analysis of the external environment ensures ET understand who their customers are, the factors affecting their purchase decisions and are able to anticipate their needs and wants. interrogatory of its internal environment will identify strengths and weaknesses thus ensuring systems and processes are in place to meet those foreseen customer demands effectively.ET has to realize that they are into the educational industry and it is necessary maintain all the best practices of the industry and they responsible to be an advisable organization. An important but costly element of the plan is to close the gap by securing BS8901 environmental accreditation for all branches, so a specialise business case should be prepared highlig hting the costs involved and direct benefits to the ET beyond the commercial venue business.The marketing plan poses some key changes in approach for ET and looks to de-priorities certain market segments. This may meet resistance from both management and operational staff initially before the new segments begin to deliver results. A phase out rather than immediate approach to the change over a 6-12 month decimal point will alleviate this. In addition, the ET Marketing Manager should run a series of workshops with staff from all over the business to explain the plan in-depth, its rationale, and key outcomes to ensure buy-in.Bibliography / Referencing2008. (Clause 19.1). 1 July 2008Association of the British Pharmaceutical persistence Code of Practice for the Pharmaceutical Industry,British Meetings and Events Industry Survey 2010, computed axial tomography Publications, October 2010Dibb, S., Simkin, L., Pride W., Ferrell, O., (2006) Marketing Concepts and Strategies, 5th Europeane dition, South Western Cengage trainingJobber, D., (2007) Principles and Practice of Marketing, 5th Edition, McGraw Hill EducationKotler, P., Armstrong, G., Saunders, J., Wong, V., (2002) Principles of Marketing, 3rd European Edition,Meetings incentive Travel, Olympic Opportunities Going for Gold. September 2010.Meetings Industry Association. Pathfinder Report make 2010. Northamptonshire, April 2010Megicks, P., Donnelly, R., Harrison, G., (2009) The Marketing Planning Process, ElsevierPearson Education Limited