PESTLE Analysis

The PESTLE framework is employed to carry out an external environmental analysis of a business or industry (Anderson et al., 2019). In this section, PESTLE will be applied to assess the possible impacts of specific factors on the chosen event, Chelsea Flower Show.

Political

Brexit has lowered the interest of EU residents in the events held in the UK (Pinder, 2020). This poses threat to the Chelsea Flower Show which holds event specific to gardening in the pursuit of sharing the concerns related to climate change and mental health problems.

Another political factor that is likely to impact the chosen event in England is the political stability of the nation. UK’s political stability has seen growth from 0.49 scores to 0.54 scores in 2020-2021 (The Global Economy, 2021). This means there is less risk of violence or terrorism in the country which gives the opportunity for the Chelsea Flower Show event to be held without jeopardising the safety of visitors.

Political stability index

(Source: The Global Economy, 2021)

Economic

The inflation rate of the UK stands at 9.12% as of 2022 when compared to the previous year's 2.59% (Statista, 2022). High inflation increases the cost of travel for visitors besides levelling the production cost for event organisers. Thus the impact of the same on the Chelsea Flower Show would be harmful as the higher cost of material supplies may limit the potential of making a sufficient investment in event activities or displays. Even more, if the cost of travelling for the potential visitors is high, this may affect their intention of visiting the event.

The country’s GDP growth rate has suffered a severe decline from -0.2% in November 2022 to -0.3% in December 2022 (Trading Economics, 2022). This marks the fall in the capacity of investment in major industries including tourism and events. The fluctuation in the economic condition of the country is likely to affect the Chelsea Flower Show event arrangement.

Social

According to Global Data (2022), the median household income hit 46,691 USD in the year 2021 an increase of 1.6% from the last year. This acts as an opportunity for the event industry as with the growth in income potential of common people it gets the chance to predict higher sales. When the purchasing power of people increases it develops their intention of spending on events and festivals.

Based on recent data, the population of the United Kingdom stands at 67,736,802 which is a rise of 0.34% from the previous year (Macrotrends, 2022). The growth of the population provides a golden opportunity for the event industry to attract a large number of visitors. It thus  enhances the sales potential of the Chelsea Flower Show event.

Technological

The social media penetration of the UK has 57.6 million based on active social users as of 2022 (Statista, 2022). This means the penetration rate is 84.3% of the total population of the nation. The growth in social media use in the country may increase the marketing potential of the Chelsea Flower Show event as it will be able to reach wider public over social media platforms and increase their awareness around the same.

The innovation index of the UK is currently at 59.7 points after reducing from 59.8 in the year 2022 (The Global Economy, 2022). The reduction in the innovation index posits that the potential innovation output in the form of creative outcomes and knowledge and technology output has been reduced. The implication of the same on the Chelsea Flower Show would be negative as with a decrease in the innovation capabilities of the country, the chances of bringing innovative gardening solutions also lessen.

Legal

Data Protection Act 2018 monitors the way personal information is used by businesses, organisations or government (Gov.uk, 2023). In the event industry, it provides a way to ensure the data privacy of the visitors from harm or misuse. It thus develops visitors' trust and relationship with the event organisation which would be beneficial for predicting their future visits.

Equality Act 2010 protects protected characteristics from discriminatory practices in a business setting and wider society (Gov.uk, 2015). The protected characteristics are age, race, gender, sexual orientation, religion, civil partnership, maternity or pregnancy, sex and disability (EHRC, 2023). This guides business owners and event organisers to prevent discrimination and promote equality of treatment and opportunity. Chelsea Flower Show would be benefitted from such an Act in place as it will monitor its human resource practices and attitude towards diverse visitors. As an international event is visited by people from different corners of the world, adherence to such regulations may ensure that they are properly treated at the event which will contribute to their engagement and satisfaction.

Environmental

United Nations’ sustainable development goals focus on seventeen areas such as poverty, hunger, education, health and wellbeing, gender equality, clean water and sanitation, clean affordable energy, and work and economic growth (United Nations, 2023). Others are reduction in inequality, innovation, sustainable community, responsible production and consumption, marine lives, climate actions, life on land, peace and justice and global partnership. The SDGs are linked to the practice of the Chelsea Flower Show event as the programs held in the same promote actions against climate change issues. In this way, the international initiatives serve as a framework for creating an organisational vision for the event. 

The Climate Change Act is committed to reducing greenhouse gas emissions by around 100% by 2050 (CCC, 2023). This law or environmental legislation offers an opportunity for the Chelsea Flower Show event to control its greenhouse gas emissions in different activities and improve the perception of visitors regarding its environmental practices.

Impacts on local, regional and National level

The impact of Brexit on the Chelsea Flower Show event has greater implications beyond the organisational level. For instance, as the potential of attracting visitors from EU nations has been reduced it has a local impact as the opportunity to develop the local economy reduces. Regionally, the number of visitors to the region also reduces that impacting the chances of the growing popularity of the event. At the national level, when there would be a decrease in the number of visitors visiting the event it is highly likely to impact the level of movement of UK citizens to Chelsea, London. This is the reason that international tourists often make the local and national people excited towards the events thus a reduction in the chances of attracting EU visitors may also reduce the number of visitors nationally. There is the positive impact of a stable political scenario on the event as locally it would prevent the occurrence of disruption of operations. Regionally, high political stability is supposed to attract visitors from different corners of the State. Overall, national stability in the political aspect would increase the potential of inbound tourism.

As inflation is supposed to increase the cost of supplies for the event it would affect the supply chain at the local level. The dependency on other suppliers may also increase which may disrupt the regional supply chain. The transportation cost will further increase with the growing dependability on supplies across the nation. There is the threat of low economic growth to the event as it reduces the chance of making a sufficient investment. Slow economic growth would increase the event's dependency on more tourists beyond the local level thus marketing costs and reach would need to be expanded. Furthermore, it requires catering to the demands of visitors expanded across different regions. Limited economic development chances at the national level aggravate the potential of generating higher income through the means of inbound tourism.

The high income of citizens is supposed to increase sales of the event's displayed products that give the opportunity to local businesses to make sales. At the regional level, there is the possibility of extending economic opportunities with the growing number of visitors. The marketing opportunities to targeted visitors at the national level increases when there is high household income (Liu et al., 2019). The growth in the population has positive effects on the event however locally it would create crowds and congestion with the sudden arrival of a large number of visitors. Regionally, the movement of visitors can disrupt the trade functions while nationally the population surge is supposed to increase demands for basic necessities that may impact the event as the intention of spending on leisure activities would be reduced.

The high social media penetration provides a chance to engage local visitors and attract targeted consumers from the regional and national levels. The decline in innovation development in the region reduces the local economic condition that may pose threat to local living conditions affecting the potential visits from locals. Additionally, innovation decline increases dependency on a partnership that would accentuate cost. The rise in investment thus may decrease the marketing potential that is required to attrac