A PESTLE analysis is a methodology for monitoring and analyzing external environmental factors that affect an organization (Asopa 2004, p. 5). The outcome is used to identify threats and weaknesses. As a result, this study gives a PESTLE analysis of the tea market in the United Kingdom.
The UK government has perhaps continuously maintained the fair trading pledge for both foreign tea growers and domestic consumers. The government mandates a "Fairtrade" seal to be included in products for customer reference (Pilgrim et al. 2010). The move gives the customers an opportunity to patronize the firms that produce quality products that are not harmful to buyers’ health.
Economic Factors
The current tea prices in the UK are much cheaper as compared to the prices several decades ago (Fung et al. 2009). This has offered an excellent opportunity for exporters because they can utilize the cheap labor and availability of natural resources in their respective home countries to engage in price competition in the UK.
Social Factors
Tea is the second most preferred drink after water (Pilgrim et al. 2010). Of this figure, UK has the highest number of those who consume tea. Notably, green tea is highly preferred by the consumers as compared to red and black variants. Green tea is preferred in the market because if its’ health benefits. This, therefore, affects the sale of the other tea varieties.
Technological Factors
Currently, most tea consumers are less inclined to purchasing tea in supermarkets because there are numerous tea shops. Today, Hi-tech equipment and quality ingredients can be easily used to make a variety of required hot and cold beverages alternatively.
Legal Factors
UK government requires tea producing companies to provide high-quality products. The increasing pressure requires the firms to trade ethically. Tea companies are obliged to adhere to the government’s guidelines.
Environmental Factors
Primarily, UK offers a favorable environment to conduct business (Willson and Clifford 2012). The economic environment encourages stability and living standards of the people involved in the trade.
References
Asopa, V.N., 2004. Competitiveness in global tea trade.
Fung, K.F., Carr, H.P., Poon, B.H.T. and Wong, M.H., 2009. A comparison of aluminum levels in tea products from Hong Kong markets and in varieties of tea plants from Hong Kong and India. Chemosphere, 75(7), pp.955-962.
Ochanda, S.O., 2012. A review of development of the Tea (Camelia sinensis) Industry in Kenya and possible areas of exploitation for Value addition. African Journal of Horticultural Science, 6.
Pilgrim, T.S., Watling, R.J. and Grice, K., 2010. Application of trace element and stable isotope signatures to determine the provenance of tea (Camelliasinensis) samples. Food Chemistry, 118(4), pp.921-926.
Willson, K.C. and Clifford, M.N. eds., 2012. Tea: Cultivation to consumption. Springer Science & Business Media.
