Nor do they depend on intermediaries for making introductions for conducting businesses. In other words the key to successful businesses lie in effective relationships and maintenance of long term relationships. The British are seen to immense respect for ranks as they prefer to deal with people belonging to their levels or higher levels. Businessmen prefer including an elderly statesman into their group as a representative of authority which is considered as being essential for having positive and health business relationships . 1. The project seeks to present the pros and cons of conducting business in UK. This is done using the study of the region’s macro environment that affects the decisions of businessmen and entrepreneurs of organizations. Considerations are taken with regards to changes in tax structures, changes in legislations, demographic changes and changes in the government policies. To summaries it the entire project makes a thorough macro analysis of the United Kingdom which would impact the entry, establishment and growth of businesses in the same2. 1. PESTEL Analysis There are a number of factors in the external environment of firms which affect the decision making of managers and entrepreneurs. These factors are political, economic, social, technological, environmental and legal factors which require consideration while setting up business in locations. 1.1. Political Factors The recent past political conditions in the United Kingdom were not very impressive for conducting business operations. However, the conditions have now changed. The government has been trying to schedule its activities as per its priorities for investing money. Blair has highlighted an Organization for Economic Co-operation and Development report in which he tried to show that Britain’s taxes were much lower as compared to the other industrialized nations across the world, Japan and USA being the only two exceptions3. Recently the government has been stressing on cutting duty on fuel which would be compensated by cutting costs in the form of pension reductions. The food prices had reached record levels and the prices of stables like food grains, had reached high levels however, the price rise has been curtailed. The aim of the government has been to build a solid foundation for a healthy economy and attempt to achieve full employment, lower inflation rates and maximize welfare of the economy (see 3). 1.2. Economic
