Report: The environmental factors within the PESTLE analysis which are having an impact on Charles Stanley October 2008 1.0 - Introduction to the PESTLE analysis……………………………….........................3 2.0 – Introduction - Charles Stanley 2.1 - Pestle Analysis of Charles Stanley Stockbrokers 3.0 – Detailed Focus - Two Key Factors 3.1 – Impact factors on HR strategy and practise 3.2 – Recommendations 3.3 – Conclusions 4.0 – Conclusion Appendix References Bibliography Concept Completing a PESTLE analysis in order to see the ‘bigger picture’, can be a simple or a rather complex task, depending on how much detail is gathered and also how many people are involved as people see things differently. The six elements form detailed below form a helpful tool for firms for example HR can use this when reviewing a strategy. The PESTLE analysis can be used for business planning, organisational changes, strategic decision making or marketing purposes from a departmental or an individual perspective to assist organisations to identify trends, in potential opportunities and threats before their competitors or to simply ensure that the basic factors are not overlooked. CS PESTLE Analysis Pestle analysis of Charles Stanley Stockbrokers. Introduction - Charles Stanley Charles Stanley is one of the UK's largest independently owned full service stockbrokers, advising on substantial client funds. Charles Stanley is a member of the London Stock Exchange and was established over 200 years ago. They provide stock broking, corporate finance and investment services throughout the UK with a network of 30 national branches, including the head office located in the City of London. The factors within the PESTLE framework which are exerting an impact on Charles Stanley are displayed in the table (Appendix 1) Political
Political factors which affect Charles Stanley include government policies, deregulation of the market, tax policies, laws and regulations, trade restrictions and tariffs especially at this point in time when the financial markets are in crisis. The government plays a big part within the operation of financial services in terms of specific policy formulation, regulation/legislation and decisions on government spending. The tax changes have caused concern in the private equity business within Charles Stanley with a belief that these changes will drive investors out of the UK market and reduce the competitiveness and attractiveness of the UK for the private equity investor. The tax has been deferred due to higher inflation but when the changes take place at a later stage this will have a knock on effect on Charles Stanley in terms of increased costs like VAT, corporation tax and national insurance tax. There is also the threat of challenge from the Conservative party and if they beat Labour in the next election. This would question Charles Stanley and the effect their policies would have on the company for example like their plan to improve maternity and paternity pay for individuals, which will increase company costs. Economic A stable financial system plays a key role for a healthy and successful economy. The current turmoil in the financial sector is significant to the period immediately before the Great Depression of the 1930s. Charles Stanley is feeling the ’credit crunch’ with negative GDP growth, low interest rates but a rise in inflation hence less disposable income but rising costs for food and energy bills. Unemployment is at an all time high which should in theory make it easier for to recruit but instead people in the city are not wanting to leave their current positions to move elsewhere which has a knock on effect for recruitment. Charles Stanley has decided to review budgets and some departments have felt a recruitment freeze and others are forced to downsize. However downsizing may not be the short term answer, they may need to consider developing their current workforce and increase retention...
References: Exploring Corporate Strategy-Gerry Johnson, Kevan Scholes) http://www.telegraph.co.uk/news/uknews/1565499/Disposable-income-at-lowest-level-in-10-years.html http://www.cipd.co.uk/communities/forums/_MRAR15.10.08.htm http://www.cipd.co.uk/subjects/emplaw/general/legaldevs.htm?wa_src=email&wa_pub=cipd&wa_crt=nugget&wa_cmp=cipdupdate291008
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