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.

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

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

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

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.

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

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

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?

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

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

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

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

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

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

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

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.

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:

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

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

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

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

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.

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

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.

This picture from www.afterschool.my shows the actual principle

which EDUCATIONAL ACADEMIES follows.

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

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

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

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