Q1. Explain the purpose and benefits of PEST analysis?

Since the PEST analysis is a useful strategic tool for understanding market growth or decline,
business position, potential and direction for operations. The main purpose of PEST analysis is

1. The headings of PEST are a framework for reviewing a situation, and can in addition to
SWOT and Porter’s Five Forces models, be applied by companies to review a strategic
directions, including marketing proposition.
2. The use of PEST analysis can be seen effective for business and strategic planning,
marketing planning, business and product development and research reports.
3. PEST also ensures that company’s performance is aligned positively with the powerful
forces of change that are affecting business environment.
4. PEST is useful when a company decides to enter its business operations into new markets
and new countries. The use of PEST, in this case, helps to break free of unconscious
assumptions, and help to effectively adapt to the realities of the new environment.

The benefits of the PEST analysis are as follows;

 It is simple and only costs time to do.
 It provides an understanding of the wider business environment.
 It encourages the development of strategic thinking.
 It may raise awareness of threats to a project.
 It can help an organisation to anticipate future difficulties and take action to avoid or
minimise their effect.
 It can help an organisation to spot opportunities and exploit them.

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Q2. Outline the factors that could lead to exploitation of migrant workers?

The factors that could lead to the exploitation of migrant workers are as follows;

1. Political Factors

Allegations
Since Migrant workers are given or they work for far less payment than the British workers, the
migrants are accused of under cutting the pay level. The British workers are not happy with the
migrants since they tend to steal all their work for a little compensation. But if there was a fair
negotiated pay rates then this type of misfortune would not arise.

Short Life Jobs

Since most of the work of the migrants is of short term basis, in areas of high migrant
populations, there are greater pressures of insufficient housing and health provisions. More over
the migrant workers population is not evenly spread across the UK - the majority of migrants are
in London and the South East which makes it even difficult for the government authorities to
provide even and equal provisions.

Employment Legislation
It was found that many employers were ignoring employment law. Some companies were not
paying their workers the minimum wage, while others forced workers to work longer than
legally permitted under the working time directive. It can be very difficult for migrant workers
to get legal advice when they have problems at work. This is partly due to language barriers.
Many also fear losing their jobs if they complain. Like other low-paid workers, they rely on legal
advice, paid for by the government through legal aid. Reduced funding for legal aid and for
immigration advice in particular has resulted in fewer solicitors taking on legal aid cases. Many
migrant workers seeking help have been turned away.

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 2. Economic Factors

Increases size of total labour market

Migrant workers fill several areas of the labour market where there are skills shortages or they do
jobs that people in the UK do not want to do. But mostly these workers have to do the jobs where
working conditions are poor or where low wages are paid.

No Specialization

Often migrant workers are ‘deskilled’ because they take work in different industries at a lower
skill level than the one for which they are qualified. These industries include agriculture,
hospitality and food packing. Since they do not require a qualification or specialization these
workers generally lack specialization skills and they are thus exploited to do all kinds of jobs.

3. Social Factors

Communication Barrier

Migrant workers have difficulty communicating in English. This creates problems with
understanding important documents such as contracts of employment, company rules and notices.
Migrant workers are often unaware of their rights in the workplace. The language barrier also
affects the migrants outside the workplace. It causes difficulties in shops, accessing housing and
education and understanding the welfare system.

Cultural Issues

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Not being able to understand cultural issues such as behaviour and customs is another big factor.
Together these problems make many migrant workers feel socially excluded from English-
speaking co-workers.

Q3.Analyze the factors which have led to increased immigration to the UK in recent years?
The factors that have led to an increase in immigration in the UK could be classified under the
followings.

1. Political Factors
Free visas
Legislation on immigration comes both from the UK government and from the EU. Workers
from most of the EU countries have the right to live and work in the UK. Since the expansion of
the EU in 2004 many workers have registered to work in the UK, boosting the UK workforce,
enabling the economy to expand.

2. Economic Factors

Higher Wage Rates

Most migrants come to the UK from countries that are less economically developed. They can
earn a better wage in the UK than in their home country. The migrant workers are also able to
send money back to their families who remain in their home countries

More Job Opportunities

Migrant workers fill several areas of the labour market where there are skills shortages or they do
jobs that people in the UK do not want to do because the working conditions may be poor or
wages low. This becomes an opportunity for the migrant workers where they do not even have to
compete.

3. Social Factors
Shrinking Domestic Labor

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The UK has an ageing population. Without immigration, the labour force would be shrinking. As
a result, there is a smaller labour force supporting the growing population of retired workers.
Therefore, migrants have better prospects in care homes and other day care centers.

4. Technological Factors
 Automation of production processes in factories require few skills

 The internet has opened up a need for information processing in purchasing and data
management areas, for example, in online shopping. Many migrant graduates have come
to fill these more specialised vacancies.

 The biggest technological factor affecting migration has been the increased availability
and reduced cost of transport. Over 75% of migrants fly into the UK, most using budget
airlines.

 Advances in online money transfers enable migrant workers to send money home easily
and securely. This makes them more willing to migrate. A United Nations statistic shows
that migrant workers send home over twice the amount given in international aid to
developing countries.

 Improvements in telecommunications have made it easier for potential migrants to

discover what job opportunities are available. Through online chat rooms, they gain
information and advice from other migrants from their own country and can keep in
contact with friends and family in their home countries.

Q4. Evaluate the extent to which the UK economy benefits from migrant labor?

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The migrant worker plays an important role in UK economy, both in public and private sectors.
The reasons how migrant labor benefits UK economy is that;
• It increases the size of the total labor market.
• Migrant workers to the UK replenish a decreasing workforce.
• Migrant workers fill several areas of the labor market where there are skills shortages or
they do jobs that people in the UK do not want to do because the working conditions may
be poor or wages low.
• Often migrant workers are very loyal in their work because they take work in different
industries at a lower skill level than the one for which they are qualified. These industries
include agriculture, hospitality and food packing. Many business leaders express the view
that migrant workers often have a more positive work ethic than domestic workers.
• Employing workers who not only have the necessary skills but who are also keen to work
allows many businesses to achieve a competitive advantage.
• Workers, who come to this region, from overseas or elsewhere in the UK, fill local gaps in
labour or skills. This helps businesses to grow and prevents them from failing or moving
out of the region
• The mobility of migrant workers means that the economy can adapt more easily to
changing economic conditions. This leads to faster growth and would also cushion the
effect of economic downturn
• Workers from other countries bring different perspectives and experiences that can boost
innovation and productivity
• Developing international connections and global networks can stimulate opportunities for
new trade and investment.