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Treasure Coast Research Park PESTEL Analysis

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Treasure Coast Research Park PESTEL Analysis

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    1. Treasure Coast Research Park PESTEL Analysis

    2. Overview What is the PESTEL Analysis Purpose and Benefits of the PESTEL Analysis The 6 Characteristics of the PESTEL Analysis Conducting the PESTEL Analysis Characteristic Prompts Conclusion

    3. What is the PESTEL Analysis? The PESTEL Analysis is a tool for assessing the political, economic, socio-cultural, technological, environmental, and legal contexts in which a firm operates It helps managers gain a better understanding of the opportunities and threats they face and consequently aids them in building a better vision of the future business landscape and how the firm might compete profitability

    4. Purpose and Benefits of the PESTEL Analysis The PESTEL analysis is a useful tool for understanding market growth or decline Its primary focus is on the future impact of macro environmental factors A good understanding of PESTEL also helps managers avoid strategies that may be doomed to failure for reasons beyond their control Understanding PESTEL is a good starting point for entering into a new country or region

    5. The 6 Characteristics of the PESTEL Analysis P- Political factors The stability of the political environment is particularly important for companies E- Economic factors Factors such as inflation rates, interest rates, tariffs, the growth of the local and foreign national economics, and local labor costs S- Socio-cultural factors Fact0rs such as local languages, the dominant religions, leisure time, and age and lifespan of demographics T- Technological factors Reduction in costs, improvement in quality, and new e-commerce opportunities E- Environmental factors How will the environment be impacted by our research park? L- Legal factors Whether the rule of law is well established and how easily or quickly laws and regulations may change

    6. Conducting the PESTEL Analysis The PESTEL analysis involves 3 steps: First, we need to consider the relevance of each of the PESTEL factors to our research park Second, we need to identify and categorize the information that applies to these factors Third, we need to analyze the data and draw conclusions Characteristic prompts are questions, the answers to which will help us determine the nature of opportunities and threats in the macro-environment

    7. Characteristic Prompts: Political Factors P- Political factors The stability of the political environment is particularly important for companies How stable is the political environment? The Treasure Coast political environment is very stable, and provides many incentives for investment, especially in biotechnology research

    8. Characteristic Prompts: Political Factors What are the local taxation policies? According to the St. Lucie County website, “The 2007 St. Lucie Countywide property tax rate is 6.7512. That rate is lower then the 1990 tax rate and has declined 13.7% over the last three years.” Ad Valorem Tax Abatement: “St. Lucie County offers an Ad Valorem Tax Abatement (approx. 7-8 mils) to a new or expanding business.  The exemption is applied to improvements a business makes to its property, such as a new building or new equipment purchased in connection with relocating or expanding. The exemption can be granted for up to ten years; the number of jobs created, wage rate, and capital investment determine the length of the exemption. A new business is defined as one that creates a least 10 manufacturing jobs, 25 (non-manufacturing) jobs or a business that has more than 50% of its sales outside the State of Florida. The category also covers a new Florida corporation with 50 or more full-time employees or any business located in an economically depressed area (Enterprise Zone).  Board of County Commissioners approval is required on this incentive.”

    9. Characteristic Prompts: Economic Factors E- Economic factors Factors such as inflation rates, interest rates, tariffs, the growth of the local and foreign national economics, and local labor costs What are the current and projected interest rates? Interest rates are at historic lows, and are projected to decline even further. Currently, the average interest rate in St. Lucie County is around 3-5% for commercial loans.

    10. Characteristic Prompts: Economic Factors What are local employment levels per capita and how are they changing? Local employment levels are diminishing as a result of the poor economy. Currently, St. Lucie County has a unemployment rate of 8.6%, which is projected to increase in this fiscal year.

    11. Characteristic Prompts: Socio-cultural Factors S- Socio-cultural factors Fact0rs such as local languages, the dominant religions, leisure time, and age and lifespan of demographics What is the local level and distribution of education and income? The per capita income, in St. Lucie County, as of 2006, is $27,540, almost $9,000 compared to the rest of the state. Education attainment levels are also dramatically low. 77% persons aged 25 or older have graduated from HS or higher 15.1% persons aged 25 or older have a Bachelors degree or higher

    12. Characteristic Prompts: Socio-cultural Factors What are the current demographics and how are they changing? The 2008 projected population in St. Lucie County is 276,585, which is a 96.5% increase from 2000 The projected population for 2015 is estimated to rise to 335,000 The general trend in population in St. Lucie County is expected to increase every year

    13. Characteristic Prompt: Technological Factors T- Technological factors Reduction in costs, improvement in quality, and new e-commerce opportunities What is the government and industry’s level of interest and focus on technology? According to the Treasure Coast Education, Research and Development Authority (TCERDA), “St. Lucie County is actively sowing the seeds of the future by creating a Research, Education and Development Park (Research Park) in Fort Pierce, Florida, currently comprised of 356 acres with future additions bringing the total acreage to over 1,000 acres.”

    14. Characteristic Prompt: Technological Factors What is the level of research funding in government and industry and are those levels changing? According to the TCERDA, “This Research Park is governed by the Treasure Coast Education, Research and Development Authority (TCERDA), pursuant to Florida Statute Section 159, Part V, and the enabling Resolution and Ordinance of the Board of County Commissioners of St. Lucie County, Florida. The initial master plan calls for over 350 developed acres of buildings and wet labs to house research, development and educational institutions, businesses and incubators, with an additional 700 acres for agricultural fields and for future Research Park expansion.” TCERDA is specifically targeting industries in biotechnology, diagnosis, energy, and medical fields

    15. Characteristic Prompt: Environmental Factors E- Environmental factors How will the environment be impacted by our research park? The park will not only provide new job opportunities to the county, but it will also foster a greener environment. The architecture of the research park, as shown in the image, will be to conserve energy, and lower the entire facility’s carbon footprint. According to TCERDA, some of the unacceptable industries in the area will include: Heavy Manufacturing Industries that are high traffic generators Petroleum Chemical Production Gas Stations Auto Repair/Service Retail/Wholesale Service Hotel

    16. Characteristic Prompt: Environmental Factors Are there any pending ecological or environmental issues relevant to your industry? St. Lucie county is shifting towards alternative energy sources and providing many initiatives for promoting a greener environment The county has converted many of its fleet vehicles to run on propane gas, reducing carbon emissions and reducing fuel costs We should promote energy conservation through our zero-energy architecture of our facility and foster energy conservation through solar panels and wind-power generation

    17. Characteristic Prompt: Legal Factors L- Legal factors Whether the rule of law is well established and how easily or quickly laws and regulations may change Law’s governing St. Lucie county are shifting towards environmental and energy conservation Law’s are stable and promote the expansion of business in the region According to TCERDA, “St. Lucie County's population has increased 25% in the last 5 years; increasing from a population of 192,695 in 2000 to an estimated 240,039 people in 2005. Proportionately, the workforce has increased approximately 27% within the last 5 years. These increases in turn, are changing the face of St. Lucie County's workforce and increasing the number of workers with new and advanced skills.”

    18. Characteristic Prompt: Legal Factors What legal and political incentives are there to locate a research park in St. Lucie county? According to a article on Tcpalm.com, the local government is seeking financial support from the stimulus package for: •Alternative energy research facility is planned for the 16-acre Treasure Coast Education Research and Development Park, $4 million •Treasure Coast Research and Education Park Phase 1 infrastructure, $540,000 •Treasure Coast Research and Education Park Phase 2 infrastructure, $1.375 million

    19. Conclusion The PESTEL Analysis demonstrates that there are many benefits to locate the Research Park in the Treasure Coast The local political, economical, socio-cultural, technological, environmental, and legal factors support our initiatives There is tremendous support from the local government to invest in this region We should proceed with further discussions with local stakeholders to expand our Research Park into this region

    20. Bibliography Textbook: Strategic Management: A Dynamic Perspective, 2nd Edition by Mason A. Carpenter & Wm. Gerard Sanders Websites: www.stlucieco.gov http://edr.state.fl.us/county%20profiles/stlucie.pdf http://www.tcerda.org/index.html http://www.tcpalm.com/news/2009/jan/19/19fstimulus/ Images: www.google.com

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