Motivation of method
It is of great importance to make an analysis of the environment in which an organisation operates in order to develop and implement a suitable, successful strategy for the company. According to Johnson, Scholes and Whittington (2008) the business environment of a company is an important issue determining its survival and success. There are several layers of this business environment – the macro environment, the industry or sector layer, the layer with competitors and markets. A focus has been given on macro level, the highest level – layer, especially on one of its factors: the PESTEL analysis. Johnson, Scholes and Whittington (2008) state that the PESTEL framework is of crucial importance to identify political, economic, social, technological, environmental and legal environments of the organisation, as well as to identify key drivers of change. In addition it offers a detailed list of environmental influences on possible strategies (Johnson, Scholes & Whittington, 2008). Because of these essential functions the PESTEL framework will be now applied on the specific case of the Eden Project:
(Johnson, Scholes and Wittington, 2008)
Since the political environment in the United Kingdom and also in the region of Cornwell is stable, this factor also deals with the issue of local and national government support for tourism. In the case of the Eden Project, one can state that there are several governmental resources, especially financially: Internationally the Eden Project is supported by the European Social Fund of the European Union (Eden Project, 2011). On a national basis the Eden Project is supported for example with funds of the UK Department for International Development (Eden Project, 2011). But also on a regional or local basis the Eden Project receives help from the Cornwall Council (Eden Project, 2011). Eden project is getting funds from Government and in case of no Government funds because of political change. Eden Projects’ daily projects can be affected. Since Eden is already facing financial problem, in this situation political factors can help Eden project a lot in getting out of financial crisis by offering more and more aid. Economic Factors
Economic factors are influencing Eden Project in different ways. One factor that will always affect the Eden Project in either a positive way or negative way is the currency exchange rate of the Great Britain Pounds – GBP. The change in the currency exchange rate might influence visitors from abroad. Visitors coming from other parts of the world will be less willing to pay entrance fee if the currency rate of England is high compared to other currencies. And the other way around, when the currency rate of England is low, visitors will be more willing to pay for the entrance fee. England also noticed the recession. (Hiscox, 2010) The recession has left its mark on the psyche of the Britain’s with a lack of confidence impacting their perceptions of wealth and appetite for risk. Whilst two in five (41%) said the recession does not have an impact on the amount of money they have to spend, almost an equal number (44%) said they are fearful of the future and have been steadily stockpiling cash. (Hiscox, 2010)As a result, the Britain’s have made cutbacks across the board – spending on socialising and restaurants has been slashed by 49% of them, as well as holidays (41%), weekend breaks (43%) and home décor (38%). In fact, one in three (30%) are spending more in discount stores. (Hiscox, 2010) These recession impacts on the Britain’s might also influence the operational aspects of the Eden Project. Concluded can be that the Britain’s saving their money and spending it on cheaper products and services because the future is insecure. This issue is also related to the trust and confidence of the Britain’s into the English economy. “Consumer confidence in the UK remains at its lowest level since March 2009. British...