Mitchells & Butlers PEST Analysis
According to Mind Tools (2012) a “PEST Analysis is a simple but important and widely-used
tool that helps you understand the big picture of the Political, Economic, Socio-Cultural and
Technological environment you are operating in. PEST is used by business leaders worldwide
to build their vision of the future”. The PEST analysis of Mitchell and Butlers is as follows:
Political:
Smoking Ban law introduced in 2007. A political factor for MAB, as it is very important
Smoking Ban law introduced in 2007. A political factor for MAB, as it is very important
as it affects all the pubs and restaurants and can be a deterrent for smoking customers
because they cannot smoke inside of their premises anymore (UKessays, 2012).
Economic:
With the recession there is a risk of unemployment in the UK and all over the world
which is affecting companies; as a result they try to cut costs by lowering the number of
staff.
Taxes increased in January 2010 which will cause consumer spending to slow down.
Inflation increases. The rise of inflation makes it harder for people to borrow from the banks.
Social:
Social Responsibility - As the leading operator of managed pubs and pub restaurants
in the UK, Mitchells and Butlers has a commitment to give the responsible retailing of
alcohol. Mitchells and Butlers established a policy for retailing alcohol in a responsible
manner. This ensures that all of their licensed premises are operated responsibly.
Under-age Drinking - Mitchells and Butlers launched the “Challenge 21” which means
every time a under-age person comes in any premises in the UK they will be asking for
proof of identity. This will prevent the sales of alcohol under-age persons.
Minimum Wage - The National Minimum wage was introduced 10 years ago and has
increased 5.5% per year. Mitchells and Butlers must comply with the minimum pay levels for
each age group to comply with the law.
Health and Safety at Work act 1974 - The Act is the primary piece of legislation
covering occupational health and safety in the United Kingdom. (hse.gov.uk, 2009)
Mitchells and Butlers must ensure that they enforce the health and safety of both their
workforce and their customers.
Environmental
Weather - Due to the varying weather conditions throughout the whole year, Mitchells
and Butlers should be constantly aware of the effects good and bad weather can have on
their outlets.
Recycling - Due to raised awareness of pollution in the environment and the effects of
waste Mitchells and Butlers have to show their commitment in creating as little waste as
possible, and where possible recycle as much of their waste. They also have a commitment
to reducing their carbon footprint.
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