PEST Analysis of Brexit
The British people have become divided. What was once a nation of the European Union (EU) is now a split land, with neverending questions and only a handful of answers — yet none of them can relieve all the citizens.
Over fifty percent of British inhabitants voted for a British exit, or Brexit. The people must now develop an entirely new society, but what does that mean for them politically, economically, socially and technologically?
We have explanations via PEST analysis.
Political: The Prime Minister is “excited.”
Brexit may take several years and require the use of thousands of people to exit from Great Britain successfully. When the vote was cast and the decision made, politicians were put in an awkward placement. Specifically, Prime Minister Theresa May was to organize the leave. Her reaction has since been positive — she has been quoted saying she’s “excited” for the change.
But this change may not be positive for the people. Such a shift requires money, and the chances of it coming from taxpayers are high. And while the change is undergoing, restrictions in trading, exporting, and importing may affect the average consumer going forward.
Economic: A winding wave
When the decision to leave the European Union was announced, everyone held their breath on how the economy would be affected. Even now, consumers and businessmen are staying cautious — investments are questionable as is the feelings from the British.
Economies are riding waves — last year retail sales were up during the summer. And credit card sales were on the rise. Interests rate and currency value were shaky, prompting international businesses to be impacted negatively.
Social: People left divided
Socially, Brexit saw an increase of reported aggression following the voting decision. Attacks regarding race, ethnicity, and religion were reported commonly on popular social media websites such as Facebook and Twitter. News worldwide exploded on this information. Later, many reports were proven to be false but it still impacted how the world saw Brexit.
The referendum showed 51.9% (or over 17 million British people) voted towards leaving the EU, while 48.1% (or over 16 million Brits) voted to stay. The nation is divided with fear, worry, and on the other end of the spectrum, excitement.
Additionally, buying behaviors have changed. Which is understandable, considering the economic state is still in a precarious situation.
Technological: Little changes made
Labor restrictions may affect workers within the IT realm — so companies are looking into solutions via telecommunication methods. Otherwise, Brexit may not directly affect technology or the development of it quite yet.
But how companies optimize technology while facing unpredictable changes in political and economic settings — that may be a significant factor during Brexit.
Brexit has been met with negative emotions. Many wonder what it means for their futures, academically and economically. When the historic moment to leave the European Union was decided, the nation’s people experienced hostility — the land is divided, and it’s affecting corporations.
The buying behavior is shifting. Companies are attempting to gauge how to proceed in ways that will not hurt them more than necessary. Politicians, like the Prime Minister, are declaring excitement for this change while many are still left in confusion.
Employers are keeping an eye on their employees and setting solutions in case Brexit requires jumping through political hoops to maintain jobs. Technology hasn’t been too affected yet, but how it’ll be used in the coming years may change.