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Executive Summary

Across England, drug and substance misuse among teenagers and young adults has been a

subject of concern. Borough of Lambeth is a densely populated area located South of London

which has considerably high crime and drug abuse cases. Research by Lambeth Clinical

Commissioning Group indicated that high drug and substance cases are high due to the low and

middle-income population. More importantly, like other urban areas in England, Lambeth is a

popular destination for young adults in search of employment.

In response to high drug and substance misuse, the Department of Health and Home Office

established FRANK to offer advice on drug abuse. As FRANK continues to offer services in

other parts of United Kingdom, it seeks to expand to Lambeth. This report was prepared to

provide a researched opinion on the feasibility of FRANK’s expansion to Lambeth. More

importantly, the objective of this report is to conduct a PEST analysis on Lambeth area which

will be useful for FRANK’s expansion.

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Introduction

FRANK is an organisation established by the Department of Health and Home Office to

address substance misuse amongst teenagers and young adults. FRANK's mandate, however, is

limited to offering free information and advice to anybody concerned about drugs and substance

misuse. Other than engaging with people on face to face basis, FRANK employs technological

platform such as live chat service, text, and email in service delivery. Like any other

organisation, FRANK intends to expand its services to London borough of Lambeth which has a

population of approximately 318,000 people (Lambeth Clinical Commissioning Group, 2013,

p.13). Notably, Lambeth has a relatively young age profile, and a majority of the youths are

workers who are ideal for FRANK’s operations. According to Ahmed et al. (2016, p.30) the

increased consumption of “chemsex” among gay men in South London raise more concern on

the misuse of substance in the United Kingdom. According to Lambeth Clinical Commissioning

Group (2013), Lambeth people have access to some of the health services, but the health

outcomes are considered weak. One of the most significant concerns around Lambeth is the

increase in drug and substance misuse.

PEST Analysis and its Use in Business

PEST (political, economic, social and Technological) analysis is used to determine

external factors affecting a business organisation. While conducting the PEST analysis, the main

political factors to be considered are regulations, tax regime, and political stability and trade laws

(Gupta, 2013, p.14). Here the enterprise seeks to assess the ability of political and legal factors to

affect the business performance (Eva, 2014, p.23). Interest rates, inflation, and cost of doing

business are some of the factors to be considered while starting a business enterprise. In this

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regard, the PEST analysis involves a review of economic issues that can affect the business

positively or negatively (Gupta 2013, p.16). On the social effects, an organization needs to

determine whether the business environment cultural, education level and lifestyle attitudes will

limit its performance (Eva, 2014). Moreover, PEST analysis involves an examination of

technological factors and their ability to impact the marketplace.

Through PEST analysis, an organisation can strategize efficiently on critical undertakings

in the organization such as marketing and production which reduce the chances of incurring

losses. Further, Eva (2014, p.56) observed that PEST analysis is essential in strategic

management as it provides the business leaders with an overview of external factors that affect

business operations. Gupta (2014,p.18), notes that other than helping a business recognise viable

opportunities for business, PEST allows leaders to spot imminent threats that may undermine an

enterprise. More importantly, by examining the business environment, a company can shape or

adjust to the political, economic and social changes.

Further, Eva (2014, p.57) encourages businesses undergoing expansion to conduct PEST

analysis for two reasons. First, where a company is entering a new country PEST analysis allows

the enterprises understand the political, economic, social and technological environment which is

critical for business operations. Another justification for conducting PEST analysis is to allow an

expanding company develops an objective view of the business environment. According to

Metzger (2014, p.17), business expansion requires an examination of macroeconomic factors

which have the potential of affecting business performance. For purposes of opening a drop

centre in London, FRANK need to conduct a PEST analysis to determine how the

macroeconomic factors will affect the business performance.

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Political Factors

Economic Factors

Psychoactive Substances Act of 2016.Before

2016, drugs that were not regulated by the

Misuse of Drugs Act have been used by people

to get high resulting in similar consequences

like the hard drugs. In this regard, the

Psychoactive Substances Act was enacted to

regulate the production, sale, and use of drugs

that have the same effects as those sanctioned

by the MDA.

Lambert has high employment rates, therefore;

it is a destination for young people looking for

work. The unemployment rate at Lambert is

5.9 percent which is even lower than the rest of

London at 6.4 percent (Lambeth Clinical

Commissioning Group, 2013, p.13).

In 1971, the Misuse of Drugs Act was enacted

to control the consumption and distribution of

drugs that are considered harmful and to

prevent drug misuse.

Most people rely on employment from the

public sector, yet it cannot guarantee job

opportunity to all (State of Borough Report,

2016,p.6)

The Misuse of Drugs Act establishes an

Advisory Council on the Misuse of Drugs as

the statutory body mandated in classifying

drugs that are considered dangerous.

Like other parts of London, Lambeth’s

populations continue to grow to create more

demands for accommodation, education, and

infrastructure (State of Borough Report, 2016,

p.8).

In June 2016, United Kingdom voters through

Since 2015, the UK labour market has

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a referendum chose to leave the European

Union. Although the decision to leave

European Union (Brexit) is political, it has

economic consequences primarily on the

financial markets.

improved in employment terms but not

desirable regarding earnings and productivity.

It is predicted that Brexit will further weaken

the labour market as it affects all aspects of the

economy (Dhingra, 2016, p.24).

The Mental Health Act of 2007 gives social

health workers power to deal with mental

health cases resulting from substance abuse or

mental illness.

Most young people in Lambeth rely on casual

work (State of Borough Report, 2016)

Social Factors

Technological factors

Lambeth is a highly populated area majority

being young people aged 21-44 years at 50

percent. 59 percent of Lambeth population are

white, 40 percent with UK background. Black

people make up 25 percent (State of Borough

Report, 2016, p.11).

For years, technology has tremendously

transformed the way industries operate.

Through technological innovations,

organizations can reach out to their clients

quickly with a platform such as online chat

service being an easy mode of communication.

Lambeth has the highest number of Lesbian

Gay Bisexual population in London (State of

Borough Report, 2016,p.23)

Institutions offering formal and informal

learning have incorporated online classes

facilitated by technology.

A considerable number of Lambeth's

population live in poverty (State of Borough

On the negative side, technology has enhanced

drug and substance use with concerns over

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Report, 2016)

online retail of drugs and peer pressure.

Compared to other parts of London, Lambeth

has high crime rates which continue to

increase.

FRANK has a telephone helpline

Discussion on PEST analysis: Political Factors

Psychoactive Substances Act 2016

Political factors affect the daily operation of organisations in any country. It is expected

that legislation, policies and tax regimes will have either positive or negative impact on

organization’s performance. Any company being established in a foreign country must give first

recognize political factors as they affect the day to day operation of the business (Gupta, 2014,

p.14) The enactment of Psychoactive Substances Act set the stage for further regulation on drugs

and substance abuse. Kapi (2014, p.26) observed that certain potentially dangerous drugs which

can be legally acquired from medical faculties were not covered by the Misuse of Drugs Act.

Such drugs have the potential of being abused by the Lambeth population leading to mental

instability. As an institute being established to deal with drugs and substance misuse FRANK

need to recognize the essence of Psychoactive Substances Act. It is arguable that FRANK’s

expansion must be done with the Psychoactive Substances Act in mind as it is likely to broaden

the scope of what is considered drug and substance misuse in Lambeth.

Advisory Council on the Misuse of Drugs

According to the Misuse of Drugs Act, the role of Advisory Council on the Misuse of

Drugs includes; “promoting co-operation between the various professional and community

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services which in the opinion of the Council have a part to play in dealing with social problems

connected with the misuse of drugs” (Monaghan, 2014,p.89). FRANK is a professional

organization established to offer information and advice to anybody concerned about drugs and

substance misuse and to address substance misuse amongst teenagers and young adults. In this

regard, it falls under the supervision and coordination of Advisory Council on the Misuse of

Drugs. From a PEST point of view, FRANK needs to recognize the upper mandate bestowed

upon the Advisory Council on the Misuse of Drugs as it is a higher body. Without doubt, the

Advisory Council operations are some of the political factors that will affect FRANK’s

operation.

Effects of Brexit

Any serious profit or non-profit making organisation cannot ignore the potential effects

of Brexit. According to Dhingra (2016, p.26), Brexit will mostly affect trade, but its

consequences will trickle down to United Kingdom’s economy and the smallest trader or

organisation in Britain. It is expected that as it affects the economy, Brexit will impact wages,

company performance, and trade. Companies are advised to make future projections with the

effects of Brexit in mind (Dhingra, 2016). In this regard, on the political aspect, FRANK need to

bear in mind while expanding that Brexit has the potential of affecting its operation. Notably,

FRANK’s expansion should be considered with the probability of incurring higher costs on drugs

and wages due to Brexit.

Discussion on PEST analysis: Economic Factors

Unemployment rate at 5.9 percent

Lambeth has high employment rate than other parts of London. However, the higher the

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employment rates, the more likely that Lambeth will attract young people looking for work. As

indicated by Lambeth Clinical Commissioning Group (2013, p.13) those who don’t get formal

employment get frustrated and indulge in harmful habits such as crime and drug abuse.

Interestingly, high employment rates also contribute to drug and substance abuse in some ways.

First, it makes young people financially independent, and they are likely to engage in expensive

leisure habits such as drug abuse. According to Monaghan (2014, p.54), the less young people

are exposed to money the fewer chances of indulging in drugs and substance abuse. The adverse

effect of lacking money leads to increase in crime which is equally harmful to the society like

drug abuse. Secondly, Carroll et al. (2014, p.34) noted that the work environment is stressful. It

is arguable that a significant number of people engage in drug abuse sue to stress from work or

relationship.

Therefore, as FRANK expands it needs to realize that an employment rate at Lambeth is

a critical economic factor to the drug and substance abuse. More importantly, the clinic will be

handling a majority of financially empowered youths. From a technological and economic

perspective, the high number of employed youth in the area will encourage the clinic to use

modern means of communication. It is conceivable that FRANK can rely on advanced means of

communication such as emails and online chats as the young are exposed to technology.

Population Growth

Population growth creates more responsibility to service providers and the government. It

is evident that the financial budget or projection in the United Kingdom continues to vary and

one of the basis is the increased demand for services. As the population at Lambeth continues to

grow, demand for essential services such as health services will increase (Lambeth Clinical

Commissioning Group, 2013). The economies associated with population growth can be

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explained by the economic concept of demand and supply of goods. In regards to FRANK’s

operation, the concern will be as the population grows there will be an increase in drugs and

substance use. Equally, on their part as service providers, population growth indicates that more

human and financial resources will be required to deliver services. The expansion must consider

future adjustments according to expected drug abuse increase and demand for rehabilitation.

Recommendations

Liaising with Healthcare providers

To some extent, FRANK’s role is ambiguous and the provision that it was established to

“offer free advisory service and advice to anybody concerned about drugs and substance misuse”

does not demonstrate a commitment to fight the vice. Upon its establishment by the Department

of Health, FRANK does not resemble or operate as an organization focused on fighting drugs.

For that reason, the expansions need to change strategy by liaising with other healthcare

providers at Lambeth to offer more than advice. The liaison between health care providers should

present a platform for counselling services other than providing advisory opinions.

Incorporating the Society

Drug and substance issue is a community problem. More importantly, families and

friends are aware of drug traffickers and users. Therefore, for the new FRANK branch being

established at Lambeth to succeed, they must bring the society on board. FRANK’s approach

should be to encourage members to join hands on the war against drug and substance misuse.

Changing Strategy

Whereas the new FRANK centre gets its mandate from the main branch, the institution

should consider its approach towards drugs and substance misuse. Carroll et al. (2014,p.34)

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noted that as long as drugs continue to be available the problem of drug abuse will never be

solved. From Monaghan's (2014), perspective any institution established to fight drugs should

engage in eradicating drugs in the society. In this regard, as FRANK expands one of the most

significant concerns should be the source of drugs and how the clinic can liaise with law

enforcement agencies.

Community-based Campaign

I am of the opinion that the mandate given to FRANK can be expanded while sticking to

the law. From my perspective, the new FRANK clinic should not take the wait and see approach

but instead engage actively in the campaign against drugs. FRANK should depart from waiting

to be consulted by creating awareness at Lambeth on drug and substance misuse. The fight

against drugs requires a strategic approach which includes forming awareness through

campaigns and counselling addicts.

Reviewing the target groups

At its establishment, FRANK was created by the Department of Health and Home Office

to deal with cases of drugs and substance use among teenagers and young adults. I am of the

opinion that the institute was not created bearing in mind the potential difference of important

variable such as the target population. In fact, the number of drug and substance users can vary in

a different location which requires a different approach. Whereas there the number of older drug

users is low, they should not be left out. I recommend that FRANK should be given a fresh

mandate to offer advice to older people.

Conclusion

It is arguable that when an organisation seeks to expand the decision is based on the

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increased demand for services of products it offers. For a service provider like FRANK,

expanding can also be influenced by government policy or need reach out to more members of

the society. More importantly, the Department of Health and Home Office created FRANK with

the concern for increased drug and substance misuse in the United Kingdom. Although it is a

non-profit making organisation, its expansion needs to do with the PEST analysis in mind. The

PEST analysis is critical in ensuring that an organization makes changes depending on the

economic, political, social and technological factors. PEST analysis is an essential ingredient of

strategic management since it offers an overview environmental factors that affect a business. As

observed in this paper, PEST factors affect an enterprise either positively or negatively. After

conducting a PEST analysis on FRANK’s expansion, it is conceivable that the clinic can be

successful. However, future changes (political and economic) must be considered as the

organization makes strategic adjustments. FRANK's success or failure depends on its ability to

adjust to the political, economic, social and technological factors in Lambeth.

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References

Ahmed, A.K., Weatherburn, P., Reid, D., Hickson, F., Torres-Rueda, S., Steinberg, P. and Bourne,

A., 2016. Social norms related to combining drugs and sex (“chemsex”) among gay men

in South London. International Journal of Drug Policy, 38, pp.29-35.

Carroll, J., Goodair, C., Chaytor, A., Notley, C., Ghodse, H. and Kopelman, P., 2014. Substance

misuse teaching in undergraduate medical education. BMC medical education, 14(1),

p.34.

Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on

foreign investment in the UK. BREXIT 2016, p.24.

Eva, M., Hindle, K., Paul, D., Rollaston, C. and Tudor, D., 2014. Business analysis. BCS.

Gupta, A., 2013. Environmental and pest analysis: An approach to external business

environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), pp.13-

17.

Kapil, V., Green, J.L., Le Lait, C., Wood, D.M. and Dargan, P.I., 2014. Misuse of

benzodiazepines and Z-drugs in the UK. The British Journal of Psychiatry, 205(5), pp.23-

59 Metzger, K., 2014. Business analysis of UK supermarket industry.

Monaghan, M., 2014. Drug Policy Governance in the UK: Lessons from changes to and debates

concerning the classification of cannabis under the 1971 Misuse of Drugs Act.

International Journal of Drug Policy, 25(5), pp.89.

Lambeth Clinical Commissioning Group Report, 2013.

State of Borough Report, 2016

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