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PEST ANALYSIS OF EDUCATIONAL ACADEMIES OF UK
PEST ANALYSIS:
What is PEST analysis or PESTLE analysis?
The name PEST analysis is formed of four individual segment,
P.E.S.T
Here ‘P’ designates the political factors, ‘E’ designates the
economic factors, ‘S’ determines the social factors and ‘T’
determines the Technological factor.
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Definition: ‘P.E.S.T is a business measurement tool, PEST is an
acronym for political, economic, social and technological factor
which are used to assess the market for a business or
organizational unit’.
The primary utility in using this tool is to determine any
business decision favorable or not by considering these four
factors and its effects/ impact on the business decision.
EDUCATIONAL ACADEMIES has done its PEST analysis which
are as follows.
A few details about EDUCATIONAL ACADEMIES;
EDUCATIONAL ACADEMIES is a Good School (Ofsted, 2013),
and they serve the needs of 1400 students, their families and
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the local community as a successful, vibrant, welcoming and
inclusive 11-18 academy. Although they are oversubscribed,
but they are non-selective.
PEST analysis of Northampton and its outcome explained
factor wise.
POLITICAL:
Political policy and politics always play a key role in a company
or organization. Changes in the political scenario, changes in
the political manifesto always bring various socio economic
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changes which may become key factors in determining business
strategy, work functions of an organization. In case of an
educational academy, changes in the political system affects
various policy changes and change in work pattern of the
academy.
Variable and fixed factors in the political system that creates
changes in educational academy are:
Emigration
Curriculum
Financial Policy
Here are the factors explained in brief.
Emigration: For any country its liberal or strict emigration policy
allows or restricts people to emigrate, countries with relaxed
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emigration policy like in UK has shown large volume of people
emigrating with families for jobs and service related assistance.
Here is the emigration graph as shown by www.marketoracle.co.uk which
gives a comparative analysis of immigration and emigration
ratio up to September 2014. This means that there has been a
steady and high volume of emigration happening in United
Kingdom.
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This graph clearly suggest that, there is a clear demarcation in
the volume of immigration and emigration of population in UK,
following from the international passenger terminal volumes
calculated during the last ten years calculated from 2004-2014.
The last four year calculations has been sub categorized into
monthly basis of data which clearly shows steady rise in volume
during the month of December to March and then again it
starts during the month of September. Usually educational
session starts in UK during the month of September (accepting
applications) it continuous prior to Christmas when the new
session starts with fresh students. This may be a key factor
responsible for increase in volume of immigrations as more and
more students queue to take their seats in colleges and
schools. It is the most promising season for schools such as
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EDUCATIONAL ACADEMIES to flourish their business activity
with maximum intake.
A clear overview of migrants in UK and there reasons to
migrate from www.economicshelp.org
This graph explains the long term migration strategy of
immigrants and their reason to arrive in UK. The graph clearly
shows that in the year 2014 roughly over 140 thousand people
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has immigrated to UK for the sole purpose of ‘formal
education’. It is an excellent figure for educational institutes like
EDUCATIONAL ACADEMIES as they would focus in getting these
candidates enrolled in their academy for a brighter carrier.
More number of students looking for admission means higher
seat intakes, resulting in higher generation of revenue and
margin of profit.
But how does it affect the policy of an educational academy?
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The Graph Shows variance of age group of population in UK
from www.google.co.in
Full-time education is compulsory for all children aged 5 to 17
in UK, either at school or otherwise, with a child beginning
primary education during the school year he or she turns 5. This
graph justifies the trend, as we can see that a major portion of
the age group of people according to this graph falls in the
category of 5-20 where school going is important.
This is a graph which shows total number of student intake, in
terms of volume in UK schools that had taken place in the year
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2009. It shows steady growth in intake of students and increase
in volume of students. The answer is, high emigration volume
means more volume of people migrating with their family,
there would be considerable hike in volume of people of the
age group 4-16 years (school going crowd). This allows more
non-English natives enrolling at school, in which many are not
familiar with UK education system, similarly they are not fluent
in using English as their primary language. This calls for a more
targeted education system. Schools has to deal with cultural
diversity, social conflict with the cultural effects. It becomes the
primary responsibility of the principal to resolve these issues
and bring a stable and universal atmosphere to cater these
constant changes. Similarly the school authority needs to bring
certain amendments in their point of approach, so that they
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can adhere to the strict governing policies by the government
and its look over about the charity funds in offer to the school.
This graph clearly shows, the trend is spending of UK citizens in
relation to education system. Comparative analysis of the time
period from 1955-2014 with details available in an annual
phase. It also shows correlation of national income with respect
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to real time earning correlated with spending done in schooling
and education system. These graph shows the fixed and
variable factors related to economic factors responsible for
education spending in UK. For EDUCATIONAL ACADEMIES
graphs like these act as a confidence boosters, as they can see
candidates or their sponsors are willing to spend more with
respect to their income.
Economic Factors:
Today, the business is global and markets are volatile. Whether
its product or its about service, quality parameter is the key
factor. There are certain key points for which can affect the
academy in relation to UK’s economic conditions.
Inflation rate
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Exchange rate
Interest rate.
GDP forecast of UK’s economy as predicted by www.marketoracle.co.uk
for the year 2015.
Here are a brief discussion about them.
Inflation Rate:
This graph shows that recently United Kingdom has gone
through an economic slump, it is still recovering, and in this
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condition the growth is slow and diminished. Simultaneously
spending potentials of local population also subsides. Any
educational institute like EDUCATIONAL ACADEMIES has to
take in count of these scenario and need to take strict,
calculative and conservative measures to pass this phase of
economic slowdown. Measures like funding facilities like
scholarships, sponsorships, facilitating educational loan and
‘earn and learn’ process by providing additional work permit or
stipends with the curriculum will act as an added advantage.
Exchange Rate:
Exchange rate of international currencies can affect educational
institute like EDUCATIONAL ACADEMIES, as many students
comes from international background. This means that
students who are coming from underdeveloped nation with
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high exchange rates against pound, will have to spend more as
it becomes expensive.
Example:
Exchange value of rupees against pound in the last five years.
The graph shows hike in value of pound.
For an example, this graph shows that since 2011-2015, value
of 1pound against Indian Rupees has grown significantly from
60-1 ratio to 100-1 ratio. India has been a key source of
international students, but volatility and fall of currency value
creates an adverse effect. This discourages new students in
enrolling for new courses every year, as these international
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students are also a key source of revenue for EDUCATIONAL
ACADEMIES, preventive measures like cost cutting reduction in
fee structure becomes the eminent step. On the other hand,
weakening of value of pound against other fore running
currencies like euro or dollar, gives institution like
EDUCATIONAL ACADEMIES to provide quality education to
foreign students from these countries at a better competitive
price than their own country.
Example:
This shows falling prices of pound in against to dollar in the
last five years.
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This graph shows the exchange ratio of pound vs dollar
fluctuating between 1-1.5 ratios, which means more value of
pound in against to dollars. It supports spending of
international students in educational institutes of UK. The
correlation of exchange rate is vice-versa, so in one way it add
on problems to the institute on the other hand it can act in its
favor. Bringing new changes which are essential are key factors,
identifying the key needs, prioritizing them like changing the
computer systems bringing additional computers to fill the
demand supply ratio are key supportive and positive factors.
SOCIAL FACTORS:
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There are various social factors which can impact
EDUCATIONAL ACADEMIES In many ways, (key factors are)
Cultural Aspect
Health and well being
Population Demographics
Public Policies
Social factors also contribute to businesses performance,
especially in businesses which has a humanoid factor involved.
EDUCATIONAL ACADEMIES deals with education, which means
it nurtures young minds to fulfill their dreams for a brighter
future through a prospective career and above all a positive
social human being. So schools are a social entity in itself, so for
any social changes in its surroundings, EDUCATIONAL
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ACADEMIES should possess capabilities to adopt changes
without changing its core principles.
Existing multicultural ethnicity and their feeling in UK.
This graph shows immigrants with interest to settle in UK, it
showcases that they would want their kids get adapted to
British education system, as sooner or later they would want to
settle here. There kids would like to have a feel of belonging to
UK as a born citizen with adopting British life style and
education. This encourages parents who looks to immigrate to
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UK, want their kids to study in British curriculum, but obviously
with minor facilitation for them to have time in adjusting to the
existing system of British education. Schools such as
EDUCATIONAL ACADEMIES always supports non-native
students in their communication skills by bringing in minor
changes in their education pattern so that there isn’t any
hindrance in non-natives getting adopted to British education.
This figures shows the cultural diversity in UK depicted trough
these postage stamps, where people of multiple origin
belonging to multiple cultures with different clothing and food
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habits create a society in UK where they stay as a unit co-
existing with each other.
Cultural Aspect:
Today the culture where we belong is cosmopolitan in nature,
various cultural intermingling, their different religious practices
and principles are predominant. The social dynamics is very
high.
EDUCATIONAL ACADEMIES takes note of these variables and
focuses in key points to success. It emphasizes on students
attendance, preventive measures in reducing school dropouts.
Creating an intricate network of communication between the
school management, students and their parent’s forum. The
school not only takes care of its internal but also tries to
influence the external environment so that it can generate a
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coexisting balanced atmosphere to nurture its students.
Though it seems to be a time taking effort, but its outcome in
longer perspective would give a better yield which can be
reflected by the performance of the student. Multiple students
from various ethnic background share the same stage or
platform in EDUCATIONAL ACADEMIES to get themselves
educated, they never forget their values which their religion
teaches them, but for them unity is the best education
imparted to them, their social skill development, development
of the right attitude to coexist in the society and respect each
other’s sentiments and principles without losing the key factors
of education, this is what Northampton Teaches them to be in
the society.
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English proficiency Index of England and wales by www.ons.gov.uk
This graph shows the proficiency of speaking in English of
people across UK in various region. It imparts that in east
midlands where EDUCATIONAL ACADEMIES is located, though it
is in the outskirts of the country away from the rush and
cosmopolitan atmosphere of London, but the density of English
speaking people are pretty high. The results are because of
such schools like EDUCATIONAL ACADEMIES imparting
education with precision and quality where the population
strength in the district is about over two million. As per the
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information provided by EDUCATIONAL ACADEMIES about
23.9% of their students which counts to about 330 in numbers,
consider English as their second language. As a result it can
hamper the overall performance of the school with respect to
its competitors, but EDUCATIONAL ACADEMIES has taken
special emphasis in providing balanced English classes with
minor modification so that every student has equal chances to
develop their communication skills. The priority of
Northampton is not on singular performance, but overall
development specially an equal chance to non-English speaking
natives to flourish in their communication skills.
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This picture from www.afterschool.my shows the actual principle
which EDUCATIONAL ACADEMIES follows.
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TECHNOLOGY:
In today’s world, everything is technology driven, it means
every activity is process driven and technology dependent it has
made our work smooth and easier.
EDUCATIONAL ACADEMIES understands that technology is the
need of the hour, so it has created an effective balance in using
technology effectively in it business activity to control its work
force efficiently without allowing any layoffs due to its
implementation. As the technology life cycle is ever evolving to
be more effective, better and trust worthy, EDUCATIONAL
ACADEMIES has also adopted various steps to induct latest
technology in its application and knowledge database by
changing and upgrading the curriculum with respect to the
need of the hour. Key technology related processes at
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EDUCATIONAL ACADEMIES are using computers as mode of
communication after grade six, similarly using tools like ‘you
tube’ and ‘Google photosets’ at class to convert ordinary
classes to smart classes. For exchange of data between
teachers promoting use of ‘Dropbox’. Promotion of usage of e-
books, it is efficient, convenient and environment friendly.
Usage of these has converted the class rooms to virtual class
rooms. As per their data, about 5.3 percent undergraduate
students are already using these facilities effectively. The school
management is efficiently using computer based management
systems to execute their activities. Similarly they have
developed an interactive website for better information
transparency and promotion. Effective modern methodologies
like social media communication allows them to get connected
with the society, it allows them to interact with the society and
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create their positive image. Similarly it allows them to show
case their achievements.
Summary:
For an educational institute like EDUCATIONAL ACADEMIES,
there are numerous key factors for their success. They have
created a proper blend of their principles and modern
adaptation to create a platform in developing the future of the
next generation students of UK. Understanding their present
need and creating a smooth path to develop their futures.
Through these effective strategies, the school has secured itself
a very promising and successful bright future.
Conclusion:
Educational institutes like EDUCATIONAL ACADEMIES has
flourished due to its cumulative performance, it has shown
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remarkable signs of growth by effectively adopting various
changes as a result of political, economic, social and
technological scenario. Its high adaptability with malleability
has given them better results in terms of quality students,
effective management and higher chances of revenue
generation using best in class effective management practices,
concepts and methodologies.
THANK YOU