PESTLE Analysis on the Advertising Agency Saatchi & Saatchi London Political | * Governmental pressure about advertising about dangerous products * Stable political environment in the UK guarantee a safe business in the UK – recent election gave another 4 years of stable planning. Even a change of government wouldn’t affect the business to much * UKs point on the European Union and the upcoming referendum might affect Saatchi & Saatchi in the future though. Due to the international business it might get very difficult to sustain the current structure since business will become much more difficult if the UK leaves the EU | Economic | * Since Saatchi operates on a pan-European level the economic situation in Europe affects Saatchi despite being based in the UK * Lower economic growth in parts of Europe (Italy, Greece, France) affect their clients and therefore the business of Saatchi. This will affect the hire of new employees in London as well as in the country offices. Headcount needs to be reviewed strongly and needs to be adjusted, based on the future developments. Freelancers vs full time hires need to be considered * Good economic situation in the UK means that lots of companies hire which means high competition will affect the hire and HR process. Therefore less people are available. Benefit competition will affect financials. Recruitment process needs to be reviewed and adapted * Taxes increasing * Ads prices are increasing * Raw material`s prices increasing | Sociological | * New employees have a new way of what they expect when entering the market place * Higher demanding and less willing to work hard * Due to the demographics and high competition in London the company has to adapt in the recruitment process * Behaviours of employees also change in respect to how they live with social media also in the work place – company has to define guidelines and implement those in the handbooks * Same applies to how the company expects their employees to work with social when it comes to representing the company externally (LinkedIn, Facebook, twitter,….) * Too much ads could have negative effect on the people * Consumer behaviour have changed * Not reading written press anymore (which affects the advertising in Newspapers and magazines) | Technologic | * The overall business has changed to the new digital transformation * Social media has become an integral tool for clients and for the company itself * The digital transformation continues and all business lines need to adapt to all future changes as fast as possible to be able to stay ahead of the curve * New departments needed and will need to be created (Social Media business line) while other will lose importance and might to be cancelled * Recruitment process needs to be changed with social media tools need to be considered even more |

Legal | * Legislation about ad`s content. There are regulations that restrict what advertisers can and can’t do. * Legislation about the advertising for dangerous products (e.g. advertising for tobacco products. The European Union and World Health Organization (WHO) have both specified that the advertising of tobacco should not be allowed. The WHO Framework Convention on Tobacco Control, which came into effect on 27 February 2005, requires that all of the 168 countries that agreed to the treaty ban tobacco advertising unless their constitution forbade it ) * Employment laws and everything around it need to be constantly review and all legal guidelines need to be adapted accordingly * How to hire employees and how to operate redundancies * Always update the contracts and how to handle the operations * Changes need to be implemented immediately so the contracts reflect actual laws * Workplace oriented laws affect the business * Diversity needs to be looked at * Women vs men ratio * Security in the workplace * New employment laws will always need to be reviewed since they have a direct impact on the employments and the financials * Notice periods * Pension laws and what the company has to pay * How many international employees can you hire * Tax laws | Environmental | * Climate in the UK doesn’t affect the business at all * Since it is an international business set up climate and other business area are of importance though and can affect the business * This needs to be taken into account when opening offices or getting in touch with clients * Risk assessment based on climate * Insurances to cover the risks * Saatchi & Saatchi also needs to not just fulfil the environmental guidelines but actually exceed them to position itself as a leader of green issues from an image perspective * This includes office use of products * Following all laws regarding waste and waste management * Collaboration with climate oriented initiatives * Pro bono work on such initiatives |

http://www.publicisgroupe.com/#/en/responsibility

Saatchi & Saatchi is a global creative communications company headquartered in New York, with 130 offices across 70 countries. Part of the Publicis Groupe, environmental management is an important part of Saatchi’s business culture and they manage their impacts through a well-established ISO 14001 certified management system.
Brite Green have worked with Saatchi & Saatchi in London since 2013 to provide ongoing support for their management system and reduce their environmental impacts. Download the Saatchi & Saatchi case study
Ongoing support for environmental management system
Saatchi and Saatchi’s rigorous approach to environmental management is embedded into their company processes through their ISO14001 certified management system. As an office based organisation, their key impacts include energy use, water use and waste creation, as well as resource use and impacts from extensive international travel.
Brite Green has worked with the Administration Director since 2013 to provide wide ranging support for the maintenance of the management system and to deliver improvements in environmental performance.
Key areas of support include undertaking internal and compliance audits and supporting the team to maintain the system’s documentation. We also provide hands-on support to help Saatchi improve their environmental performance. In 2014 we procured and installed an energy monitoring system and by providing ongoing training, analysis and advice, we have helped the team identify targeted energy reduction opportunities. We also support Saatchi’s in-house volunteer “True Blue” team, providing analysis and advice to help engage the company’s staff on environmental management.
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To find out more about how Brite Green can help you develop and maintain your management systems, please contact us.