- 10 Marks
Question
Prestige Designers Ltd, like other house builders, is facing difficult times. There has been a sharp decline in the number of homes over the past 6-8 years, and independent reports suggest that the numbers will fall even further in 2023.
Required: Using the PESTLE analysis, identify the key issues facing the Building and Construction industry in Ghana as well as that of the West African country. (10 marks)
Answer
PEST Analysis of the Building and Construction Industry in Ghana:
- Political: Urbanization restructuring; sustainable development agenda.
- Economic: Low economic growth, constrained investment and mortgage finance, depressed housing market, high unemployment, rising energy prices, weak global economy.
- Social: Falling living standards, hard-pressed younger generation, strong demand for homeownership, environmental concerns.
- Technological: Developments in modern methods of construction (MMC), prototype sustainable homes.
- Legal & Environmental: Environmental laws, activities of environmentalists.
PEST Analysis of the Building and Construction Industry in the West African Country:
- Political: Stable democracy, reformation of corporate governance, anti-corruption policies.
- Economic: High economic growth, stable exchange rate, buoyant housing market.
- Social: Growing middle class, urban migration, Western influence on housing design.
- Technological: Well-developed internet, mobile, radio, TV, improvement in building materials.
- Legal: Weak rule of law, possible corruption.
- Tags: construction industry, environment analysis, PESTLE analysis
- Level: Level 3
- Topic: Environment analysis
- Series: MAR 2024
- Uploader: Theophilus