Pestle Analysis by Alison O'Hara

38
1 Political Economic Social Technologica l Legal Environmenta l Alison O’Hara Chief Executive Audiences North East

description

• PESTLE analysis by Alison O’Hara, Chief Executive ANE. PESTLE is an analysis of the external macro environment (big picture) in which a business operates. Alison will explore the political, economic, social, technological, legal and environmental factors affecting the cultural sector now and in the near future.

Transcript of Pestle Analysis by Alison O'Hara

Page 1: Pestle Analysis by Alison O'Hara

1

PoliticalEconomicSocialTechnologicalLegalEnvironmentalAlison O’HaraChief ExecutiveAudiences North East

Page 2: Pestle Analysis by Alison O'Hara

Political

2

The Big Society

Philanthropy

Page 3: Pestle Analysis by Alison O'Hara

The Big Society

•www.cabinetoffice.gov.ukBuilding the Big Society

•Five priorities:— Give communities more power— Encourage people to take an

active role in their communities— Transfer power from central to

local government— Support co-ops, mutuals,

charities and social enterprises— Publish government data

Jay Gunn brings his animal encounters to Centre for Life Halloween 2010

Page 4: Pestle Analysis by Alison O'Hara

• State of the Arts conference February 2011

• Definitions:

• “Not difficult but different”

• “It’s not the individual and not the state”

• “Giving something back”

• “Valuing the individual contributions to work and the community”

• “‘Edge to centre’ – moving people from the edge of activity to centre stage”

• Liverpool abandoned its Big Society pilot project as the cuts have hit voluntary groups who were to take over some of the services under the programme

• Voluntary sector faces estimated £1.14bn cut in local government grants this year

4

The Big Society

Tyneside Cinema. Image: Ronnie Hackston

Page 5: Pestle Analysis by Alison O'Hara

• 26 cultural leaders representing all regions of England and all major artforms

• Established by Arts & Business and National Campaign for the Arts

• How the arts and heritage contribute to the Big Society

• Streamlining the government’s involvement in arts and heritage

• Working with reduced public funds

• Developing corporate support and philanthropy

Culture Forum reportDecember 2010

5

• Education

• Contribution to new economic growth

• Social enterprise

• Scaling up

• Clarifying the state’s role on arts and heritage

Page 6: Pestle Analysis by Alison O'Hara

Philanthropy•£80m match funding scheme— Government review of how it

can encourage philanthropy— More visible recognition of

philanthropy – thanking donors

— Developing fundraising skills and capacity

— Promoting and increasing planned giving

— Supporting long-term development of endowments

— Harnessing digital technology to boost philanthropy

— Increasing giving from international donors

— Strengthening links between culture and other sectors which are supported through philanthropy eg charities, community groups or social enterprises

Page 7: Pestle Analysis by Alison O'Hara

What does this mean for us?

7

• Address fragmentation amongst sector?

• Collaborations?

• Upskilling eg tapping into philanthropy?

• But earned income ↑16% whilst philanthropy/sponsorship/trusts ↓10%

• Focus on demand (ie audiences’ desires)?

Page 8: Pestle Analysis by Alison O'Hara

Economic

8

Great Street Games part of Great North Run Cultural Programme and Juice – Newcastle Gateshead’s festival for children and young people 2009. Image: NorthNews

Page 9: Pestle Analysis by Alison O'Hara

Downturn

9

• North East prevalence of public sector jobs

• Reduced support for tourism

• Local authority cuts

• Funding cuts

• Less disposable income

• Business investment in the arts and heritage at its lowest point since 2004 (falling by 12% last year to £144m from an all-time high of £172m in 2006/7).

• In-kind sponsorship and corporate memberships increased (8% and 2%) but cash fell by 18%

• Arts & Business Private investment in culture 2009/10

Page 10: Pestle Analysis by Alison O'Hara

• Unemployment— 2.5m people over

16 are unemployed, 7.9% of the workforce

— 21.2m full-time workers (down 5k on previous year), 7.9k part-time workers (up 224k on previous year)

— Less public sector jobs

• Increased use of volunteers (30% increase on previous year). Employed/contractual staff grew by only 3%.

• ACE RFO key data Jan 2011

Downturn

10

— Number of men claiming unemployment benefit fell by 5.4k

— Number of women rose by 7.8k

— One in five 16-24 years olds are out of work

— ONS December 2010

Page 11: Pestle Analysis by Alison O'Hara

What does this mean for us?

11

• Creative approaches to fundraising?

• Organisational development?

• Sweating our cultural assets?

Page 12: Pestle Analysis by Alison O'Hara

mima

12

• Art lovers invited to play a part in commissioning and creating a new exhibition

• mima has teamed up with an arts website ‘we did this’ to raise funds for a piece of work by Richard Forster

• Target of £15k has been set for the online appeal

• 90 days to raise funds• Those donating a sum such as

£20 will be able to join in discussions between the artist and curator and those contributing £100 can have a say in the creative process by asking questions and making suggestions

Page 13: Pestle Analysis by Alison O'Hara

Royal & Derngate

13

• Designated Regional Theatre of the Year by The Stage

• In the last year the management team has developed a new organisation, Northamptonshire Arts Management Trust, to deliver finance, administration, sales, marketing, human resources, IT programming and management services for both Royal & Derngate and a new theatre, The Core that opened in November 2010

Page 14: Pestle Analysis by Alison O'Hara

The BowesMuseum

14

• 15 weddings held in the past year

• Significant contribution to income stream with plans to extend

• Images from 450-guest Asian wedding, extensive liaison with London-based wedding planner, coverage in the Journal

Page 15: Pestle Analysis by Alison O'Hara

Live Theatre

15

• Since 2002 running an annual Introduction to Playwriting course

• Always oversubscribed so created an online version to cope with demand and generate income

• Exclusive videos and advice from award-winning writers including Lee Hall and Alan Plater

• Five step-by-step modules• Two levels of entry – ‘solo’ £95 and

‘interactive’ £495• Most of solo version is additional income• Interactive version more resource heavy

still sees c60% of the fee form additional income

• Video extracts will be updated 3 times a year

• Liaising with UK Trade and Investment with view to developing a US audience for the project

Page 16: Pestle Analysis by Alison O'Hara

Social

16

Star and Shadow Cinema

Page 17: Pestle Analysis by Alison O'Hara

2011’s big event?

17

Page 18: Pestle Analysis by Alison O'Hara

18

The Royal Wedding

Page 19: Pestle Analysis by Alison O'Hara

Shopping habits

19

• Flurry of furniture and TV buying in the first few days of 2011 lifted retail sales in January – furniture and electricals

• UK retail sales ↑2.3% on last January helped by discounting ahead of VAT rise and December weather prevented shopping

• However, industry beginning to suffer – comparison to snow-hit performance in 2009

• Later in the month, sales of non-food goods slowed

• British Retail Consortium and KPMG February 2011

• Housing Market 7%↓ in demand in January – E Midlands, Yorkshire and Humberside suffered most drops

• RICS January 2011

Page 20: Pestle Analysis by Alison O'Hara

Value for money

20

• Clubbing together to get the best deals • Online collectives eg incahoot.com,

groupon.com using bulk buying to negotiate special rates and discounted deals

• Co-operatives – not a new idea, government White Paper on proposals to encourage everyone to join their local co-operatives eg to buy groceries

• Local discounts – old fashioned face recognition (eg Starbucks, the Scarf Shop, Petals) or apps such as Vouchercloud

• Flash sales – time limited offers that encourage impulse buys

Newcastle City Hall Sunday for Sammy

Page 21: Pestle Analysis by Alison O'Hara

Random acts of kindness

21

• Generation G• Random acts of kindness – consumers’

cravings for realness, the human touch• Brands randomly picking up the tab to

sending a surprise gift• Actually need to know what is happening

in consumers’ lives – tapping into social networks to find this out

• Interflora launched a social media campaign in the UK designed to brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet and sent a bouquet of flowers

Page 22: Pestle Analysis by Alison O'Hara

Wellthy

22

• Status symbol? Olympics? Can be cheap!

• Mobile healthcare applications – 17k healthcare apps

• Heaviest use of healthcare apps is by young adults aged 18-29• Strollometer – new mother’s strolling

routine, Fit4Mum.com• Sleep on it – tracks nightly sleeping

patterns• DirectLife – builds up detailed record

of daily activities• Park runs

• Free, weekly, 5km timed runs, open to everyone, free, take place in pleasant parkland surroundings and encourage people of every ability to take part www.parkrun.com

Page 23: Pestle Analysis by Alison O'Hara

Arts education

23

• Education Secretary Michael Gove announced in December that performance tables would measure performance in five subjects – English, maths, science, foreign language and humanities

• Sidelined art, music, design, technology and RE

• Music Review February 2011 with national plan to be published later this year

Image: David Arandle

Page 24: Pestle Analysis by Alison O'Hara

What does this mean for us?

24

• Jump on the Royal Wedding (gravy) train?

• Awareness of value for money? Not just ticket price but whole cost

• Segmentation – looking for the easy wins?

• Rewarding loyal customers?

• Genuine random acts of kindness?

• Tapping into getting fit/participation in ‘active’ artforms?

• Alternatives to classroom learning for the arts?

Page 25: Pestle Analysis by Alison O'Hara

Technological

25

Freshest Bairns at Dance City. Image: Barry Self

Page 26: Pestle Analysis by Alison O'Hara

Customer service is the new marketing

26

• Acquiring and maintaining customers – approach that boosts profit by acquiring and maintaining customers through trust, great customer experience, a tailored service and lots of positive customer buzz in the digital arena

• Reactive and proactive

The Marketer March 2011

Page 27: Pestle Analysis by Alison O'Hara

Facebook

27

• 633 million users by October 2010

• UK’s largest display advertising publisher

• Third highest number of video viewers behind YouTube and the BBC

• Facebook products include photos, gaming with many inter-connected TVs with built in Facebook

• The Social Network

• Research Information Network Social Media – A Guide for Researchers

Page 28: Pestle Analysis by Alison O'Hara

Dell

• Dell Idea Storm was created as a channel for customers to make suggestions to Dell and has been used by thousands of customers since then

28

• One frustrated customer managed to create such a social media buzz about Dell’s poor customer service that at one point the Dell Hell site was dominating the search engines, overshadowing the official site

Page 29: Pestle Analysis by Alison O'Hara

Marks & Spencer

• Marks & Spencer launched full-page ads in national newspapers to apologise for its decision to add a £2 surcharge on the price of larger bras

• The ad says that the company had decided to charge more on the basis that larger bras cost more to make, but admitted they were wrong

“so as from 9 May the storm in a D cup is over” • M&S reduced the price of its larger bras by £2

and offered 25% off all bras for a two-week period (May 2009) 29

Busts 4 Justice

• Busts 4 Justice facebook groups was set up by 26-year-old who was fed up of paying extra for her 30G bras

• 15k followers

• Group members bought M&S shares and had planned to tackle the company’s CEO on the issue of the ‘tit-tax’ at the company’s AGM

Page 30: Pestle Analysis by Alison O'Hara

New approaches to location

30

• New ways of delivering library services to remote communities and making reading more accessible through digital technology

• Trial community ‘book points’ and e-book readers will be piloted in Northumberland and County Durham – book clubs, book donations and informal book swapping

• The two county councils joined forces on the Future Libraries Programme and their joint bid – Going Digital, Going Local – was one of 10 chosen from across the country as pilot schemes

• Local people will be able to request books by phone or using the library online catalogue, email and text messaging will be heavily used by the library service to keep in touch with customers

• The scheme will also assess the effectiveness of e-books in providing the reading needs of over-60s and low-income families

Page 31: Pestle Analysis by Alison O'Hara

What does this mean for us?

31

• Planning approach to social media?

• Resources for reactive and proactive?

• Identifying opinion formers?

• Defining your organisation’s ‘voice’ in social media?

• Infrastructure for IT in rural locations?

• New locations for public engagement?

Page 32: Pestle Analysis by Alison O'Hara

Legal

32

Performance at Durham Streets of Play 2010.

Image: Martin Cunningham

Page 33: Pestle Analysis by Alison O'Hara

Social Media

33

Editorial or marketing?

Celebrity endorsement of products and companies on blogs

Facebook promotions guidelinesLike It and Land It

Page 34: Pestle Analysis by Alison O'Hara

What does this mean for us?

34

• Acknowledging influence celebs can have?

• Paid bloggers?

• Facebook rules?

• Competitions?

Page 35: Pestle Analysis by Alison O'Hara

Environmental

35

Tall Ships Race 2010, Hartlepool

Page 36: Pestle Analysis by Alison O'Hara

Eco superior

36

Audience interaction with a water sculpture at The Alnwick Garden

• Ever present quest for more environmentally sustainable societies

• Rise in eco-superior products – not just eco-friendly but superior in other ways

• Consumers actively seeking out green products reaching a plateau

• Mainstream consumers question value and efficiency of going green

• While 40% of consumers say they are willing to purchase green products, only 4% of consumers do when given a choice (Journal of Marketing September 2010)

Page 37: Pestle Analysis by Alison O'Hara

What does this mean for us?

37

• Responding to funders to be eco friendly?

• Reactive or proactive?

• Links with ‘wellthy’ trend?

• Complete offer – eco friendly and high quality?

Page 38: Pestle Analysis by Alison O'Hara

2011’s big event?

38

‘Temenos’ by Anish Kapoor and Cecil Balmond, the first of the ‘Tees Valley Giants’, the biggest public art project in the world. Image: Alan Jukes