Pestle Analysis by Alison O'Hara

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• PESTLE analysis by Alison O’Hara, Chief Executive ANE. PESTLE is an analysis of the external macro environment (big picture) in which a business operates. Alison will explore the political, economic, social, technological, legal and environmental factors affecting the cultural sector now and in the near future.

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Pestle Analysis by Alison O'Hara

  1. 1. PoliticalEconomicSocialTechnologicalLegalEnvironmental<br />Alison O’Hara<br />Chief Executive<br />Audiences North East <br />1<br />
  2. 2. Political<br />2<br />The Big SocietyPhilanthropy<br />
  3. 3. The Big Society<br /><ul><li>www.cabinetoffice.gov.ukBuilding the Big Society
  4. 4. Five priorities:
  5. 5. Give communities more power
  6. 6. Encourage people to take an active role in their communities
  7. 7. Transfer power from central to local government
  8. 8. Support co-ops, mutuals, charities and social enterprises
  9. 9. Publish government data</li></ul>Jay Gunn brings his animal encounters to Centre for Life Halloween 2010<br />
  10. 10. State of the Arts conference February 2011<br /><ul><li>Definitions:
  11. 11. “Not difficult but different”
  12. 12. “It’s not the individual and not the state”
  13. 13. “Giving something back”
  14. 14. “Valuing the individual contributions to work and the community”
  15. 15. “‘Edge to centre’ – moving people from the edge of activity to centre stage”
  16. 16. Liverpool abandoned its Big Society pilot project as the cuts have hit voluntary groups who were to take over some of the services under the programme
  17. 17. Voluntary sector faces estimated £1.14bn cut in local government grants this year</li></ul>4<br />The Big Society<br />Tyneside Cinema. Image: Ronnie Hackston<br />
  18. 18. Culture Forum reportDecember 2010<br /><ul><li>26 cultural leaders representing all regions of England and all major artforms
  19. 19. Established by Arts & Business and National Campaign for the Arts
  20. 20. How the arts and heritage contribute to the Big Society
  21. 21. Streamlining the government’s involvement in arts and heritage
  22. 22. Working with reduced public funds
  23. 23. Developing corporate support and philanthropy
  24. 24. Education
  25. 25. Contribution to new economic growth
  26. 26. Social enterprise
  27. 27. Scaling up
  28. 28. Clarifying the state’s role on arts and heritage</li></ul>5<br />
  29. 29. Philanthropy<br /><ul><li>£80m match funding scheme
  30. 30. Government review of how it can encourage philanthropy
  31. 31. More visible recognition of philanthropy – thanking donors
  32. 32. Developing fundraising skills and capacity
  33. 33. Promoting and increasing planned giving
  34. 34. Supporting long-term development of endowments
  35. 35. Harnessing digital technology to boost philanthropy
  36. 36. Increasing giving from international donors
  37. 37. Strengthening links between culture and other sectors which are supported through philanthropy eg charities, community groups or social enterprises</li></li></ul><li>What does this mean for us?<br /><ul><li>Address fragmentation amongst sector?
  38. 38. Collaborations?
  39. 39. Upskilling eg tapping into philanthropy?
  40. 40. But earned income ↑16% whilst philanthropy/sponsorship/trusts ↓10%
  41. 41. Focus on demand (ie audiences’ desires)?</li></ul>7<br />
  42. 42. Economic<br />Great Street Games part of Great North Run Cultural Programme and Juice – Newcastle Gateshead’s festival for children and young people 2009. Image: NorthNews<br />8<br />
  43. 43. <ul><li>North East prevalence of public sector jobs
  44. 44. Reduced support for tourism
  45. 45. Local authority cuts
  46. 46. Funding cuts
  47. 47. Less disposable income
  48. 48. Business investment in the arts and heritage at its lowest point since 2004 (falling by 12% last year to £144m from an all-time high of £172m in 2006/7).
  49. 49. In-kind sponsorship and corporate memberships increased (8% and 2%) but cash fell by 18%
  50. 50. Arts & Business Private investment in culture 2009/10</li></ul>Downturn<br />9<br />
  51. 51. Downturn<br /><ul><li>Unemployment
  52. 52. 2.5m people over 16 are unemployed, 7.9% of the workforce
  53. 53. 21.2m full-time workers (down 5k on previous year), 7.9k part-time workers (up 224k on previous year)
  54. 54. Less public sector jobs
  55. 55. Increased use of volunteers (30% increase on previous year). Employed/contractual staff grew by only 3%.
  56. 56. ACE RFO key data Jan 2011
  57. 57. Number of men claiming unemployment benefit fell by 5.4k
  58. 58. Number of women rose by 7.8k
  59. 59. One in five 16-24 years olds are out of work
  60. 60. ONS December 2010</li></ul>10<br />
  61. 61. What does this mean for us?<br /><ul><li>Creative approaches to fundraising?
  62. 62. Organisational development?
  63. 63. Sweating our cultural assets?</li></ul>11<br />
  64. 64. <ul><li>Art lovers invited to play a part in commissioning and creating a new exhibition
  65. 65. mima has teamed up with an arts website ‘we did this’ to raise funds for a piece of work by Richard Forster
  66. 66. Target of £15k has been set for the online appeal
  67. 67. 90 days to raise funds
  68. 68. Those donating a sum such as £20 will be able to join in discussions between the artist and curator and those contributing £100 can have a say in the creative process by asking questions and making suggestions</li></ul>mima<br />12<br />
  69. 69. Royal & Derngate<br /><ul><li>Designated Regional Theatre of the Year by The Stage
  70. 70. In the last year the management team has developed a new organisation, Northamptonshire Arts Management Trust, to deliver finance, administration, sales, marketing, human resources, IT programming and management services for both Royal & Derngate and a new theatre, The Core that opened in November 2010</li></ul>13<br />
  71. 71. The BowesMuseum<br /><ul><li>15 weddings held in the past year
  72. 72. Significant contribution to income stream with plans to extend
  73. 73. Images from 450-guest Asian wedding, extensive liaison with London-based wedding planner, coverage in the Journal</li></ul>14<br />
  74. 74. Live Theatre<br /><ul><li>Since 2002 running an annual Introduction to Playwriting course
  75. 75. Always oversubscribed so created an online version to cope with demand and generate income
  76. 76. Exclusive videos and advice from award-winning writers including Lee Hall and Alan Plater
  77. 77. Five step-by-step modules
  78. 78. Two levels of entry – ‘solo’ £95 and ‘interactive’ £495
  79. 79. Most of solo version is additional income
  80. 80. Interactive version more resource heavy still sees c60% of the fee form additional income
  81. 81. Video extracts will be updated 3 times a year
  82. 82. Liaising with UK Trade and Investment with view to developing a US audience for the project</li></ul>15<br />
  83. 83. Social<br />Star and Shadow Cinema<br />16<br />
  84. 84. 2011’s big event?<br />17<br />
  85. 85. The Royal Wedding<br />18<br />
  86. 86. <ul><li>Flurry of furniture and TV buying in the first few days of 2011 lifted retail sales in January – furniture and electricals
  87. 87. UK retail sales ↑2.3% on last January helped by discounting ahead of VAT rise and December weather prevented shopping
  88. 88. However, industry beginning to suffer – comparison to snow-hit performance in 2009
  89. 89. Later in the month, sales of non-food goods slowed
  90. 90. British Retail Consortium and KPMG February 2011
  91. 91. Housing Market 7%↓ in demand in January – E Midlands, Yorkshire and Humberside suffered most drops
  92. 92. RICS January 2011</li></ul>Shopping habits<br />19<br />
  93. 93. <ul><li>Clubbing together to get the best deals
  94. 94. Online collectives eg incahoot.com, groupon.com using bulk buying to negotiate special rates and discounted deals
  95. 95. Co-operatives – not a new idea, government White Paper on proposals to encourage everyone to join their local co-operatives eg to buy groceries
  96. 96. Local discounts – old fashioned face recognition (eg Starbucks, the Scarf Shop, Petals) or apps such as Vouchercloud
  97. 97. Flash sales – time limited offers that encourage impulse buys</li></ul>Value for money<br />Newcastle City Hall Sunday for Sammy<br />20<br />
  98. 98. <ul><li>Generation G
  99. 99. Random acts of kindness – consumers’ cravings for realness, the human touch
  100. 100. Brands randomly picking up the tab to sending a surprise gift
  101. 101. Actually need to know what is happening in consumers’ lives – tapping into social networks to find this out
  102. 102. Interflora launched a social media campaign in the UK designed to brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet and sent a bouquet of flowers</li></ul>Random acts of kindness<br />21<br />
  103. 103. <ul><li>Status symbol? Olympics? Can be cheap!
  104. 104. Mobile healthcare applications – 17k healthcare apps
  105. 105. Heaviest use of healthcare apps is by young adults aged 18-29
  106. 106. Strollometer – new mother’s strolling routine, Fit4Mum.com
  107. 107. Sleep on it – tracks nightly sleeping patterns
  108. 108. DirectLife – builds up detailed record of daily activities
  109. 109. Park runs
  110. 110. Free, weekly, 5km timed runs, open to everyone, free, take place in pleasant parkland surroundings and encourage people of every ability to take part www.parkrun.com</li></ul>Wellthy<br />22<br />
  111. 111. <ul><li>Education Secretary Michael Gove announced in December that performance tables would measure performance in five subjects – English, maths, science, foreign language and humanities
  112. 112. Sidelined art, music, design, technology and RE
  113. 113. Music Review February 2011 with national plan to be published later this year</li></ul>Arts education<br />Image: David Arandle<br />23<br />
  114. 114. What does this mean for us?<br /><ul><li>Jump on the Royal Wedding (gravy) train?
  115. 115. Awareness of value for money? Not just ticket price but whole cost
  116. 116. Segmentation – looking for the easy wins?
  117. 117. Rewarding loyal customers?
  118. 118. Genuine random acts of kindness?
  119. 119. Tapping into getting fit/participation in ‘active’ artforms?
  120. 120. Alternatives to classroom learning for the arts?</li></ul>24<br />
  121. 121. Technological<br />Freshest Bairns at Dance City. Image: Barry Self<br />25<br />
  122. 122. Customer service is the new marketing<br />26<br /><ul><li>Acquiring and maintaining customers – approach that boosts profit by acquiring and maintaining customers through trust, great customer experience, a tailored service and lots of positive customer buzz in the digital arena
  123. 123. Reactive and proactiveThe Marketer March 2011</li></li></ul><li>Facebook<br /><ul><li>633 million users by October 2010
  124. 124. UK’s largest display advertising publisher
  125. 125. Third highest number of video viewers behind YouTube and the BBC
  126. 126. Facebook products include photos, gaming with many inter-connected TVs with built in Facebook
  127. 127. The Social Network
  128. 128. Research Information Network Social Media – A Guide for Researchers</li></ul>27<br />
  129. 129. Dell<br /><ul><li>One frustrated customer managed to create such a social media buzz about Dell’s poor customer service that at one point the Dell Hell site was dominating the search engines, overshadowing the official site
  130. 130. Dell Idea Storm was created as a channel for customers to make suggestions to Dell and has been used by thousands of customers since then</li></ul>28<br />
  131. 131. Busts 4 Justice<br />Marks & Spencer<br /><ul><li>Busts 4 Justice facebook groups was set up by 26-year-old who was fed up of paying extra for her 30G bras
  132. 132. 15k followers
  133. 133. Group members bought M&S shares and had planned to tackle the company’s CEO on the issue of the ‘tit-tax’ at the company’s AGM
  134. 134. Marks & Spencer launched full-page ads in national newspapers to apologise for its decision to add a £2 surcharge on the price of larger bras
  135. 135. The ad says that the company had decided to charge more on the basis that larger bras cost more to make, but admitted they were wrong “so as from 9 May the storm in a D cup is over”
  136. 136. M&S reduced the price of its larger bras by £2 and offered 25% off all bras for a two-week period (May 2009)</li></ul>29<br />
  137. 137. <ul><li>New ways of delivering library services to remote communities and making reading more accessible through digital technology
  138. 138. Trial community ‘book points’ and e-book readers will be piloted in Northumberland and County Durham – book clubs, book donations and informal book swapping
  139. 139. The two county councils joined forces on the Future Libraries Programme and their joint bid – Going Digital, Going Local – was one of 10 chosen from across the country as pilot schemes
  140. 140. Local people will be able to request books by phone or using the library online catalogue, email and text messaging will be heavily used by the library service to keep in touch with customers
  141. 141. The scheme will also assess the effectiveness of e-books in providing the reading needs of over-60s and low-income families</li></ul>New approaches to location<br />30<br />
  142. 142. What does this mean for us?<br /><ul><li>Planning approach to social media?
  143. 143. Resources for reactive and proactive?
  144. 144. Identifying opinion formers?
  145. 145. Defining your organisation’s ‘voice’ in social media?
  146. 146. Infrastructure for IT in rural locations?
  147. 147. New locations for public engagement?</li></ul>31<br />
  148. 148. Legal<br />Performance at Durham Streets of Play 2010. <br />Image: Martin Cunningham<br />32<br />
  149. 149. Social Media<br />33<br />Editorial or marketing?<br />Celebrity endorsement of products and companies on blogs<br />Facebook promotions guidelines<br />Like It and Land It<br />
  150. 150. What does this mean for us?<br /><ul><li>Acknowledging influence celebs can have?
  151. 151. Paid bloggers?
  152. 152. Facebook rules?
  153. 153. Competitions?</li></ul>34<br />
  154. 154. Environmental<br />Tall Ships Race 2010, Hartlepool<br />35<br />
  155. 155. <ul><li>Ever present quest for more environmentally sustainable societies
  156. 156. Rise in eco-superior products – not just eco-friendly but superior in other ways
  157. 157. Consumers actively seeking out green products reaching a plateau
  158. 158. Mainstream consumers question value and efficiency of going green
  159. 159. While 40% of consumers say they are willing to purchase green products, only 4% of consumers do when given a choice (Journal of Marketing September 2010)</li></ul>Eco superior<br />Audience interaction with a water sculpture at The Alnwick Garden<br />36<br />
  160. 160. What does this mean for us?<br /><ul><li>Responding to funders to be eco friendly?
  161. 161. Reactive or proactive?
  162. 162. Links with ‘wellthy’ trend?
  163. 163. Complete offer – eco friendly and high quality?</li></ul>37<br />
  164. 164. 2011’s big event?<br />‘Temenos’ by Anish Kapoor and Cecil Balmond, the first of the ‘Tees Valley Giants’, the biggest public art project in the world. Image: Alan Jukes<br />38<br />

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