Frank

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Title
Student’s Name
Institutions Name
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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 FRANKs 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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