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using PEST analysis to study various factors that affect the business

The purpose of PEST analysis is to aid the organization in making better decisions that are going to better its performance as well as improve its efficiency. This is achieved through studying various factors that affect the business. They include political, economic, social, and technological factors (Peng, 2016).

The other purpose of PEST analysis is to identify changes and the effects of the external macro-environment on the competitive position of the organization. It is a tool used to understand business position, market growth or decline, potential, and direction of operations.

PEST analysis is also important since it helps a business make strategic decisions, plan marketing activities, and develop products.

The following are the Factors that could lead to the exploitation of migrant workers:

Political Factors:

Short life Jobs

In areas where we have a high number of migrants, a problem of insufficient housing and as well all pressure in health services provision. This is due to short-term basis work of immigrants. Migrant workers are not evenly distributed in the UK. Most of them are located in South East and London, making it hard for the government authorities to provide required resources equally.


Since the migrants work for less pay as compared to British workers, they are accused of cutting the pay level. This annoys the British workers since they feel that most of the work are taken away from them for a little pay. This matter would not have arisen if at all there was a fair negotiated pay rate.

Employment Legislation.

It was noted that most employees ignored the employment laws. Some companies forced their workers to work longer than the working time directive, which is legally permitted, while others failed to pay their workers the minimum wage. This makes it hard for migrant workers to seek legal advice in case they experience any problems in their workplace. This may be due to the language barrier. Most of them were also afraid of losing their jobs if they tried complaining.

Economic Factors:

No Specialization

In most cases, it is found that migrant workers are “unskilled” since they work for various industries that require a lower skill level than the one they have. These industries include food packing, hospitality, and agriculture. Since they do not require specialization or qualification, the workers end up being exploited to do different jobs due to lack of specialization.

Increase in total labor market size

Several areas of the labor market are filled with migrants, where there is a skill shortage, or they do the kind of jobs that are disliked by most UK people (Lin, 2014). In most cases, these workers have to work in areas with poor working conditions with low pay.

Social Factors:

Communication barrier

Most immigrants have a problem communicating in English. This makes it hard for them to understand various documents such as company rules, documents, and employment contracts.

Cultural issues

The immigrants feel socially excluded from other English-speaking workers due to their inability to cope with their cultural practices and beliefs.

Factors Which Have Led To Increased Immigration To The UK In Recent Years:

Free visas

Immigration legislation comes from the EU and the UK. Most workers from the EU have a right to live and work in the UK. The expansion of the EU since 2004 has made many workers register to work in the UK, increasing its population.

High wage rates

Most immigrants prefer to work in the UK where the wage pay is relatively higher as compared to their own countries (Lin, 2014). This has made most of them move to the UK hence the increase in population.

Shrinking Domestic labour

Since the UK has an aging population, the work force would shrink without immigration. This results in a smaller labour force which supports the growing population or the retired workers. This gives immigrants good prospects in care homes and various daycare centers.

In technology, improvements in telecommunications gas made it easier for immigrants to easily secure available jobs and move to the UK.

The extent to which the UK economy benefits from migrant labor

The gaps in skills and labor in the UK are filled with immigrants from overseas, making businesses grow bigger and better.

The mobility of migrant workers shows that the economy can easily adapt to changes in economic conditions, leading to faster growth and also cushioning the economic downturn effect.

Having workers from different countries brings about different experiences, which can boost productivity and innovation in the UK.


Lin, H. (2014). Going to college online? A PEST analysis of MOOCs. Journal of Educational Technology Systems, 42(4), 369-382.

Peng, G. C. (2016). i Nunes, MB (2007) Using PEST analysis as a Tool for Refining and Focusing Context for Information Systems Research. In 6th European Conference on Research Methodology for Business Management Studies. Dostupno na: http://ssrn. Com/abstract (Vol. 1417274, No. 10, p. 3).



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