PESTEL and SWOT Analysis - Bristol Port UK Political Economical Secured government approval for new terminal This will provide a lot of new opportunities for doing business with Bristol Port. It will also generate a more positive reputation on the media since the work being done is approved by the government The single European market has been designed to promote competition through free trade. Therefore governments have to support the investment of other international companies within the UK and the EU in general. This creates more competition and therefore the owners of Bristol Port have to make sure that all the other markets and competitors are constantly being monitored so they can have a better understanding of who and what theyre dealing with Political parties need to make sure, especially in todays world, to be aware of Green Legislation. They need to promote a healthier way of doing business hence companies such as Bristol Port are affected due to issues related to water pollution, smoke emissions, protection of wildlife and habitats and waste regulations. Bristol Port is already working towards a healthier more environmental friendly approach, however, they need to make sure that political stances on the previously mentioned issues are constantly kept in mind Bristol Port need to keep in mind that local governments are very important stakeholders as they take on urban planning and redevelopment amongst other things. Lobbyists can also be of great importance for a company such as Bristol Port due to the fact that they can influence legislation on behalf of a special interest. They can also affect peoples opinions through the media. As an organization, Bristol Port has to abide by various rules and regulations which can be altered by a change in government. Regulations can affect the company financially if standards are changed and staff will in turn need to be trained accordingly and to conform to legal requirements which can result in a reduction of foreign competitiveness The economic crisis has left an impact on the UK economy. Therefore, until the economy is stable, Bristol Port will not proceed with building the new terminal. In the meantime Bristol Port should focus on strengthening the services they already offer so as to keep their clients satisfied When the new terminal is built it will generate new opportunities for employment and business within the UK This will be economically beneficial for the port itself and it will create a more stable reputation for it within the UK A lot of investment has been put into Bristol port and there are plans to continue investing and expanding. Also, growth and investment worldwide is taking place within emerging markets By investing and expanding, Bristol Port will be up to date with new systems and can gain new clients. It could also gain more recognition internationally Globalisation,being the process through which the world economy is now becoming a unified interdependent system based on internationalisation of companies and lowering of trade barriers is making people need or want products which are not locally made hence the need for efficient sea transportation arises. The UK economy structure in fact has changed from a manufacturing industry to a service oriented one. If Bristol Port cant provide products or services which are required by its stakeholders, they will look elsewhere straightaway. Due to the economic crisis in 2008, traffic in ports decreased, and up to 2011 it hadnt gone over the peak which was reached in 2005 Effect on Bristol Port: a higher need to attract more clients so as to catch up on previous years Prospects related to global economic growth seem to be flat in Europe and multinational companies are looking for production closer to home The proposed terminal can generate more than 114million in the local economy
Socio-Cultural Technological The port provides jobs to approximately 8000 people therefore it has a satisfied community which makes it a better environment to work in. People also feel safer using a company which is providing work to many people as it demonstrates reliability Since motor vehicles can be kept on the large quay areas, travelling on public roads can be avoided Bristol Port is recognised as one of the most technically advanced ports Companies nationally and internationally which have specific requirements will take such a reputation into consideration when choosing who to do business with. As a company with such a status, Bristol Port has to take on 7 distinct stages to ensure successful development: CIM Membership: 38430906 Misco Consulting Ltd 2
Bristol Port will have less complaints related to traffic congestion due to heavy vehicles and will cause less harm to the environment Prices, promotion and products offered, together with the place (marketing mix) where the port is located, are capable of providing services which meet the needs and requirements of the ports stakeholders i.e.direct customers, energy companies, shipping customers, clients and the workforce itself The result of this is a more harmonious working environment and more possibility of growth The multiplier effect takes place within Bristol Port due to the fact that it is an expanding company.It already offers a substantial amount of jobs for the people in the community and since this company is investing in further projects more jobs will be created and the production level increases. As a result employees spend their money and while demands are increasing more jobs are created Corporate Social Responsability (CSR) is an aspect which Bristol Port is taking into consideration. They are giving as much as they can back to society by implementing healthier options for production and taking care of the surrounding environment. The community around the port will in turn appreciate the work done in the port more Knowledge of new technology, research and invention which creates newer ideas, development meaning how technology is applied to particular products, innovation of the product, when profit needs to start being made, diffusion is how the targeted population or workforce adopt and refinement is taking advantage of the complete technological aspect It is equipped with machinery used to lift heavy cargo and has experienced workforce to use it The people working within the company will feel more at ease when doing their everyday work due to the fact that they are trained to manouver the equipment The need for facilities to handle much larger ships is on the increase This should be an incentive for Bristol Port to grow. Other ports which are already equipped or are investing in such equipment will have a competitive advantage Consumerism, as in the culture of todays world in which consumers ar emore enthusiastic and the ethos that a consumer can be powerful enough to cause change within an organisation, has been taking place due to the amount of information we find online and access to technology being facilitated. Bristol Port need to make sure that their reputation remains up to standards because once stakeholders find better opportunities, they will take them Environmental Legislative The mission of Bristol Port is to bring containers to important UK markets more quickly than ports in the South and East of the UK This will help in preventing carbon emissions which is a unique advantage over other ports. By doing so it will also be abiding by laws connected to air pollution Two biomass power stations are being planned for Bristol Port. This will help in creating a higher reputation amongst the stakeholders due to the fact that a lot of attention to the surrounding environment is being given Since Bristol Port have plans to rebuild new habitat which will make up for any possible damage done to the environment, people will feel much more at ease when doing business with them. Green legislation is also being taken into consideration in this aspect because Bristol Port are making sure that land-use planning and protection of wildlife and habitat is being followed The UK has a target which needs to be met by 2020. This target includes the increase in incineration from 9% to 27% and the reduction of landfill from 72% to 25%. The EU also has targets related to recycling, however, most private companies might not be very responsive unless they have a market for recycled Accredited with ISO9001:2000 which ensures efficient handling with minimum damage risks Companies working with Bristol Port as well as the workforce within the port itself have a safer environment to work in Being a seperate legal entity and a Private Limited Company (Ltd.) , Bristol Port owners can avoid losing all private possessions should the company fail. As a result the company can offer more security since there can be no shares of the company within the market. Due to the heavy machinery and work done within Bristol Port, Health and Safety Legislation which protects the lives of employees needs to be maintained. Also, other forms of legislation, such as the employees right to a contract (described in Employment Rights Act 1996), minimum wage and equality need to be followed. If not, Bristol Port will be breaking part of the employment law and apart from creating chaos within the company, the employees and any other people involved will lose trust in the port As an incorporated company Bristol port also has the right to sue and also be sued should any contract be breeched. By maintaining these contracts Bristol Port CIM Membership: 38430906 Misco Consulting Ltd 3
material. Bristol Port needs to analyse this situation and try to make the most of it for the sake of the environment as well as for its reputation. The Waste Regulations 2011 will also have an effect on how waste from comapnies like Bristol Port is collected, transported, recovered and disposed of
will be keeping a healthier relationship with its stakeholders and also following ethical behaviour at work Since contract law covers exchanges between buyers and sellers, Bristol Port has to make sure that the elemnts of a contract; offer,acceptance and intention to enter into legal actions are being followed
Strengths Weaknesses A lot of different services are offered in shipping, logistics and distribution More businesses can make use of this variety of services as it meets a lot of different needs It is Britains most central deep sea port therefore it can be reached easily and society wont find it hard to do business Within a 300km radius Bristol Port has access to over 45million citizens The port features strength in statistics due to excellent motorway and rail access Bristol Port is recognised amogst the most productive ports in the UK It is very well-equipped to serve different purposes such as storage space and warehousing resulting in more business deals being closed with companies which need such sevices Experienced workforce. This shows that money is being invested in human resources and training is being given to the employees. This results in a more motivated workforce and higher confidence in the services provided It is one of six ports which forms part of 90% of car imports and exports in the UK. It is also an extremely important entry point for a quarter of the fuel imports needed for aviation fuels Rail and road links are not as congested as others. It is also much closer to the population Since Bristol Port forms part of the private sector, resources and funds are managed more efficiently and monitored more effictively. Apart from that, management is more responsive towards market signals and have increasingly enhanced initiative Bristol Port, as a Limited company, can only offer shares to family or friends hence decreasing the chance of being take over by more powerful shareholders. This automatically creates more security within the company The effective protection of the environment and cautious use of natural resources which Bristol Port is maintaining will generate a more positive response through the media Since Bristol Ports privatisation, its owners have had a clear vision of where their company should go. They The Deep Sea Container is not available yet. This will put Bristol Port at a disadvantage as other ports might be more equipped and hence customers will choose ports which meet their needs. A Marketing Information System(MkIS) might be needed at this point so that information related to Bristol Port and other competitiors could be collected, analysed and evaluated. This will give Bristol Port a better idea of how to turn such weaknesses to strengths and opportunities When it comes to statistics, Bristol Port doesnt feature strongly on lists of the largest liquid and dry bulk handling ports in the UK. This can affect the port since new customers might use statistics when choosing who to work with One of Bristol Ports largest customer unloaded its last coal shipment in 2013. This will definitely create some difficulty to the port due to the fact that no more business will be done with this company and a replacement needs to be found As a company within the private sector, the owners might feel the need to invest due to competition coming from other companies or as a compensation for losses such as the one mentioned in the previous point. Investement might become very competitive and exaggerated which will lead to a waste of money and resources. Competition may also result in a monopoly
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have changed that vision to a mission and it is now defined by its uniqueness Opportunities Threats Creative and efficient management gives the opportunity for innovation within the port. Being a privately owned company, the people in charge can have a better understanding of how the surrounding market is functioning and act accordingly Since there has been a shift in trends towards containerisation, Bristol Port is planning to create a container terminal which could increase the amount of business significantly container ports are the busiest when it comes to the intensity of activity within the port itself Multinational companies are now seeking production closer to home therefore Bristol Port can take the opportunity to expand within the UK and internationally The developing world is providing various opportunities due to the fact that advanced cargo- handling facilities are in demand. Bristol Port has the chance to invest in the necessary equipment and become one of the first ports within the market to offer such services Due to its important role within the redevelopment of the south wests industrial centre, Bristol Port has a lot of opportunities for further growth of new port facilities Globalisation offers an opportunity to Bristol Port as it creates a more improved possibility for specialisation and standardisation of production and distribution. Reasearching such details can also be more cost- effective as can the product design and promotion The container ship Emma Maersk has come up with a possible solution during Christmas. 11,000 containers were brought to the UK from China full of good and were returned full of rubbish from the UK. This was done because most of the recycling of plastic has to be done in China. Bristol Port can also start encouraging such a system whereby rubbish which cant be recycled in the UK is sent to other countries which can do the job International exposure can create more opportunities for Bristol Port because people will expect diversity of products
Changes in European and world markets might affect the productivity in the Port due to the fact that it hasnt been equipped with a Deep Sea Container Terminal yet. There is a strong element of competition in the world of cargo. Many other ports in the UK are in line with innovative technology and are in the process of development . This means that Bristol Port needs to be constantly aware of new trends and act upon competition immediately Pressure groups such as IFAW are likely to complain due to the harm done to animal and fish habitats. The environment needs to be constantly kept in mind even though in such an industry it might be hard to please everybody at times Since the year 2000 the export industry of crude oil has reduced steadily this has affected the amount of outward traffic for Bristol Port and other seaports and it creates a threat to the business because it might result in the need for newer more advanced equipment to meet more modern needs and requirements From the start of the economic crisis in 2008 one can see much less predictability in the growth of container traffic. Bristol Port will have to make sure that the market is constantly being monitored so as to be able to catch up with any other ports World trade has become part of Bristol Ports everyday reality and the fact that trading all around the world is becoming increasingly possible, can create a threat to such a company. Society in the UK and elsewhere might find that doing direct business with international companies is easier and more efficient. Bristol Port have to keep in mind that people nowadays have access to an infinite amount of information and can therefore make comparisons With regards to globalisation, Bristol Port has to bear in mind that people are becoming more culturally sensitive and therefore products or services offers might need to change accordingly. When doing business internationally, the language aspect can also create issues between workers and the general public As Bristol Port is within an export-oriented economy any outside shocks are likely to affect the port. A lot of monitoring needs to be constantly done so as to prevent any sudden and extreme changes
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