Highways Agency - PEST analysis
A Highways Agency case study

Page 1: Introduction

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The strategic road network in England consists of motorways and major 'A' roads. It represents only 3% of all roads in England yet carries a third of all road traffic and two thirds of all heavy freight. The network is valued in excess of £84 billion and is vital for commerce and industry as well as day-to-day social activities. It connects towns and cities with ports and airports and is a...
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Page 2: Political factors

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The Highways Agency works in the interests of the public and not for private financial gain this is the same for all publicly-funded bodies. Its overall remit is set by Parliament with transport policy the responsibility of the Department for Transport. Political factors therefore play a key role in shaping its activities and priorities. Ministers are held to account in Parliament for the...
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Page 3: Economic factors

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A central aim of government policy is to encourage economic growth. In a growing economy, businesses produce and sell more goods and services. More jobs are created. The country becomes more prosperous. The Highways Agency supports economic growth, because an effective major road network directly helps business and industry. Factories need raw materials, retailers need to keep their shelves well...
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Page 4: Social factors

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The Highways Agency's work is directly affected by social factors. People's lifestyles, attitudes and opinions have a direct bearing on traffic volumes. As society changes, the Agency aims to meet the needs of today's road users by 'putting our customers first in everything we do'. When motorways were first designed in the 1950s, traffic volume was much lower. Today most households own a...
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Page 5: Technological factors

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Using technology helps the Highways Agency respond to challenges posed by political, economic and social factors:The Agency uses an array of technology to monitor and control road traffic. CCTV is used to monitor conditions on the road network. Control room staff across the country use sensors in the road surface and over 1,200 CCTV cameras to quickly identify any emerging problems. Information is...
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Page 6: Conclusion

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A PEST analysis is a useful technique for reviewing the external forces that impact on an organisation. The technique offers a structured basis for reviewing the organisation's strategic direction and for considering future priorities. In the case of the Highways Agency, as a government agency, political factors play a key role in shaping its activities and priorities. It acts in the public...
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