PEST analysis is referred to the management method which is used by an organisation to examine the key external factors which have influence over its operation in the market to be more competitive (Clarke, 2019). This is because by analysing the factors the business develops better business decision as well as improves their business activities to perform at an improved level in the market. The PEST acronym involves Political, Economic, Social and Technological factors (Støme et al. 2019). In this assignment, the PEST analysis of Tower Hamlets is to be presented to help Depaul Charity decide whether and in which way they are open their services in the borough to perform effectively. Moreover, based on the analysis recommendations are provided for Depaul regarding the way they are to operate in the area.
Depaul is a charitable housing association who works with homeless young people between the ages of 16 to 25 years. The vision of the organisation to develop a society where everyone has a place which they can call home and have support from their community. The mission of the association is to end homelessness and change the life of the people who are affected by the condition. The organisation offer different nature of services and support for the poor people which include offering emergency accommodation, provision and support for housing facility and other services for helping people to rebuild their personal lives (uk.depaulcharity.org, 2019).
The Tower Hamlets Council through the introduction of No Wrong Door approach has the key to ensure that they are able to allow homeless people or who are at risk of being homeless have access to all nature of services required by them from a single place. In order to establish this purpose, the Housing Option staffs of the Council are working closely with different agencies to refer such individuals to other agencies according to the nature of help and support services they require which often creates homelessness or difficulty in managing housing (www.towerhamlets.gov.uk, 2019b). This is because such compressive approach leads to easily and quickly resolve their housing, health as well as social problems experiences which if not resolved leads the individuals to face homelessness. In relation to this fact, Depaul charity has the opportunity to establish their services in Tower Hamlets as they have the chance of being one of the agencies who the council can use in the No Wrong Door approach to help the young people at risk of homelessness or is already homeless for getting housing services. The Crash Pad Facility is being developed by the Tower Hamlets Council to avoid teenagers or young people face homelessness by arranging bed and breakfast to assist them later experience accommodation in long-term condition (www.towerhamlets.gov.uk, 2018a). This is an effective approach because through this facility the council provides bed for sleeping and food for the individuals so that they do not have to face harsh condition such as rough sleeping on the streets or hunger. It is an effective approach by the government as this is going to lower the harassment faced by the young people while being homeless where their basic need of protection, living place and food are not met. The Depaul charity is seen to offer all kinds of services to the young homeless people to return to normal life (uk.depaulcharity.org, 2019). Thus, this opportunity by the government leads them the chance of being in collaboration with the council to act together in providing food and timely shelter to the young people. Moreover, through Hostel Commission Plan 2016-2019 the council has planned new initiatives in providing better hostel services for the homeless people to assist them to lead a better quality life (www.towerhamlets.gov.uk, 2018a). In relation to this, Depaul charity has the chance to act in providing hostel spaces to be let by the council to resolve the issue of youth homelessness in the area.
The economic condition of Tower Hamlets council informs that they are investing a huge amount of money which amounts to £332 million to build temporary living spaces for the homeless people to help them have shelter and temporary housing provision to live (www.towerhamlets.gov.uk, 2019). This is an effective approach as the homeless young people would not be bothered of being in streets where they are often bullied and face the harsh condition of living that result in lowering their quality of livelihood. This nature of provision provides opportunities to the Depaul charity to open their services in the area so that they along with the council can be involved in quickly building temporary homes as well as provide readymade shelter from the charity to the homeless people in resolving the issue of homelessness in the area at a faster rate. The Mayor of the London being bothered by the rising issue of homelessness in various areas such as Southwark, Newham, Tower Hamlets and others has provided £11 million as funding in a collaborative way together to be used by all the boroughs (www.london.gov.uk, 2019). However, in all these boroughs including Tower Hamlets, more finances are required to effectively tackle the issue of homelessness. In relation to this, Depaul charity is essentially required to open their centre at Tower Hamlets so that they can provide help to the council in the form of housing spaces to build and provided to the homeless young people to prevent the rise of youth homelessness.
The acceptance figures of housing services in 2016-17 in Tower Hamlets shows that 84% of the housing facility is being required and occupied by the people who are between the age of 16-44 years (www.towerhamlets.gov.uk 2017b). This indicates that there is high demand for housing services in the area among the young population as most of them are homeless. It creates chances for the Depaul charity to establish their charitable services in the areas as there is high demand for housing provision that is provided by them for preventing and controlling the youth homelessness. The last available data which differentiates nature of individuals who are homeless indicates that nearly 146 youth along with 899 people who are either youth or elder and 843 families with young people are in need of housing provision (www.towerhamlets.gov.uk, 2018c). This indicates that the issue of youth homelessness is quite grave in the area as many numbers of youth who are future of the borough and country are living in streets without having basic opportunity of getting shelter to feel secured. It makes chances for Depaul to open and establish their services in the area of Tower Hamlets as young people at large at the place are in need of their support to live a healthy and quality life.
In recent era, the presence of technological upgradtion is required in each area of business operation. This is because technology helps in establishing effective communication within minimum time with wide number of individuals (Schultz et al. 2016). In Tower Hamlets, it is seen that the governing council in the area operates a well-managed website page that has all information regarding any services required by homeless people (www.towerhamlets.gov.uk, 2018d). This is done to provide comprehensive data to the homeless people in the area regarding what they are to execute and assistance from which agency they can access for resolving their problems oriented as a result of homelessness. Thus, Depaul charity has the chance of accessing improved technology in communicating with individuals in the area to inform and deliver their services. The survey regarding use of internet in the Tower Hamlets area indicates that 100% of youth who are between 16-34 years uses internet services compared to only 54% of elderly people who are above the age of 60 (www.towerhamlets.gov.uk, 2017). This informs that the youth in the area are technology friendly and have an idea regarding the way they are to be used for executing their services. As mentioned by Riano and Ortega (2017), information delivery through internet services is easier in nature. This is because they resolve the issue of geographical barrier and other problems which cause hindrance in making connecting through the communication of information. Thus, Depaul has the opportunity of using technological services in informing and communicating with the youth to control and provide services related to homelessness.
The recommendations for Depaul Charity to initiate and establish their operation in Tower Hamlets are as follows:
Depaul required developing partnership as well as collaboration with the Tower Hamlets in establishing their new centre in area as they can access political assistance through various council program and approaches. This is because collaboration and partnership help organisations to share potential and intricate ideas for resolving any issue or problem in the best way as wide number of experienced professionals from various fields are involved in this prospect. Thus, this initiative is going to help Depaul in developing better ideas by sharing their plans with the government to successfully control homelessness. The collaboration is also required so that they can assist the government through their housing services for the homeless people to fulfil organisational vision of reducing homelessness in the UK.
Depaul needs gathering and spending increased finances in establishing their new centre at the Tower Hamlets so that they are able to provide spaces for the homeless people of the area to live in homes. In order to accomplish this, they are required to attract more investor for delivering their services. This is because the youth homelessness is at a deteriorated state in Tower Hamlets as most of the people who are seeking housing assistance are young individuals.
Depaul while forming new centre requires arranging accommodation hostels as well as daily meal for the young homeless people in the area. This is required so that along with the borough council they can participate to resolve the rising issue of homeless in the area. Further, the young people require proper nutrient to live and those that are homeless are living under poverty where they do not have economic efficiency to arrange or buy meal for them. Thus, Depaul requires looking into this aspect while establishing their new centre in the area.
Depaul requires arranging provision for vocational training and employment opportunity of the young homeless people as per their qualification while building the centre in the area. This is required so that through employment the young individuals can have the opportunity of earning finances to personally support themselves to revive from the homelessness condition.
Depaul requires developing a separate website for Tower Hamlets area where all the specification of services to be provided by their new centre in relation to resolving homelessness in the area has to be mentioned. This is because it is seen that the youth in the area are technology-oriented where they highly use internet services to get informed about the details they require. Thus, establishment of website they would be able to directly contact more effectively with young homeless individuals to deliver their services in successfully controlling homeless in the area.
The above discussion informs that Tower Hamlets is one of the few boroughs in the UK who are facing intense issue of youth homelessness along with wide number of families and elderly being homeless. However, the council in the area is found to be active in resolve the issue of youth homelessness and has allocated increased finances to arrange services in resolving the issue of homeless as found from the PEST analysis of the area. Thus, Depaul charity is recommended to work in collaboration and partnership with the council in developing their new centre in the placed. Moreover, they are suggested to open hostel and arrange meals for young people who are homeless to offer their opportunity to live a normal life.
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Støme, L.N., Moger, T., Kidholm, K. and Kværner, K.J., 2019. Early assessment of innovation in a healthcare setting. International journal of technology assessment in health care, pp.1-10.
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