Network Rail is responsible for maintaining and renewing Britain's rail infrastructure. It is regulated by the government and must provide value for taxpayers' money. A PEST analysis was conducted to understand the political, economic, social, and technological factors affecting Network Rail. Politically, it must comply with safety regulations and meet national transport needs. Economically, it receives income from train operators and taxpayers, but price increases can be unpopular. Socially, it employs over 32,000 people and must consider noise pollution and community benefits. Technologically, Network Rail spends £3 billion annually on new technologies to increase efficiency, capacity, and safety.

1. University of Birmingham
Network Rail - PEST Case Study
Names: Boey, Ya, Zim
Section: 7
Lecturer: Dot MacKenzie
Date: 23/08/2016

2. Contents
• Introduction to PEST Analysis
• Company Background
• Political Factors
• Economic Factors
• Social Factors
• Technological Factors

3. Introduction to PEST Analysis
1. Numerous factors determine and affect environment of organization:
• identified, understood and analyzed so it can achieve optimum
performance.
2. PEST analysis categorizes them into 4 headings:
• Political
• Economic
• Social
• Technological

4. Company Background
19th C.
Independent
company
—UK’s first
railway
1947
Government &
British rail
controlled
railway industry
1994
Railway industry
privatized
Service
franchised:
Virgin & First
Group
Approx. 2000
Rail track (PLC)
—Took
responsibility
for
infrastructure
2002
Assets &
business
transferred to
Network Rail

5. Political Factors:
• Under government regulations about safety
• Must give value for taxpayers’ money
• Required to make its investment to meet national transport needs
(some people who don’t own cars should benefit from railway
service)

6. Economic Factors:
• Receive income from train operating companies & taxpayers
Economic Dilemmas:
• Increase income by raising price
• Disapproval of price increases from customers

7. Social Factors:
• Unpaid stakeholder members will check standards of corporate
governance & monitor its performance
• Social Costs and Benefits:
• A. Social cost: cost of noise pollution and/or additional road use
• B. Social benefits: regenerate derelict land and/or increase trackside safety
• Be responsible for social employment issues (32,000 staff)

8. Technological Factors:
• Company spends ￡3 billion per year on new technology
• Reduces cost
• Increases efficiency and safety

9. Bibliography:
• Overall, C. S., Butt, S. & Metcalfe, J. (2015) BME Working with Cases
(4th edition). Birmingham: Birmingham International Academy

10. Thank you for listening.
Do you have any questions?