A R C H I T E C T U R E
POLITICAL FACTORS
Government Intervention in the Construction Industry
The Green party has been steadily growing in influence over the last few years, this rise suggest that the government will continue to adopt greener and more environmentally friendly policies, with strong emphasis on sustainability in the construction industry, particularly the commercial sector. Working alongside the government, will ensure that we are in compliance with the legislation and will feed back into the image of the company being portrayed in a politically correct manner. Similarly a rise in tax reforms could mean having to purchase more expensive equipment for the business. A lot of businesses import and export services overseas, having a need to import resources from overseas can be directly influenced by change in trade policies, slowing the process or raising costs etc. However, at HJ²K our business strategy enforces the need to source materials locally with respect to sustainability.
The company must consider the impact of not only the local government but the global government over the construction and IT technology. Recognising the government-sponsored research, development and demonstration (R, D and D) is a central factor in the construction of new technologies, and analyse selected aspects of the relationships between government officials, private businesses and technologists, within the process of technological development.
Domestic/Foreign Trade Policy Changes
A lot of businesses import and export services overseas, our business may need to import resources from overseas and a change in the policies could slow the process or raise costs etc. However, our company will look to source as many resources as possible locally to avoid this dilemma.
Introduction of Trade Restrictions/ Incentives
The image and branding of the company that is exposed to the public should be portrayed in a manner which is politically correct.
Changes in Taxation Policy
A rise in tax means more expensive equipment for the business. This could reflect as a loss in our profits or a rise in the client’s payments potentially causing us a loss of clients.
New Environmental Legislation
As the climate changes the government will keep changing legislation in the construction industry that will benefit the environment, this area of politics will be what our company will pay particular attention too, as our company want to be as sustainable as possible.
Revisions in Labour Law
Our company will strive to make sure all employees are treated equally and fairly, the company will make sure to keep up to date with any revisions to the labour law and will be put in act promptly.
ECONOMIC FACTORS
Interest Rates
At the start of our business, we will be taking out a loan, unfortunately the interest rates will be high and will have a great impact on our business financially.
The interest rates are set to rise in 2016 and unfortunately may raise further before/during 2021.
Inflation
Inflation of goods means the rise of prices in hardware and software which means loss in the company’s profits or higher payments for the clients.
Development Incentives
86% of small business clientele comes from the private sector as opposed to large business who only gain 58% from the private sector. However this means that there will probably be less of a disposable income from the main group of the clientele so less profitable projects will be taken on.
Economic Growths
Consider the financial implications of advertising for the business.
The Economic impact on the price of technology may affect how much HJ2K Design Lab will have to consider when choosing to use a particular technology or contractors/buildings.
Money will be available through business loans from banks which must be paid back there for as much money as possible needed to put in from the five co-founders. This increases personal risk to business however this will be at the beginning stage of our business therefore money will be tight and luxury expenses cannot be made. Therefore all building budgets must be kept to in order to keep clientele.
Materials such as timber, steel and concrete may raise/decrease in prices, which affects design solutions.
For a small business we will face comparatively little competition from other professionals or practitioners in the future not least because of the modesty of the financial returns for these services. However, we may face competition from non-architects qualified players such as contractors and plan drawers, who will continue to put pressure on fees. Viable resolutions needed to prevent this i.e. collaboration with other non-architects preventing them taking on whole projects.
If there aren’t enough projects on at one time staff may need to be reduced to accommodate for the lack of cash flow.
SOCIAL FACTORS
Population Growth
Population growth will hopefully mean more jobs for our business, meaning we will need to employ more staff to cope with the increase of demand for jobs, causing us to buy more hardware and software to allocate our new staff, also making sure the current hardware is kept up to date.
Population growth will increase by 46% by 2050 therefore the building sector will have more people to build for with an increase of people living within urban areas by 70% in 2050 and the construction industry is set to boom by 128%. However this is not guaranteed to be within the commercial sector as a 70% increase of people living within the urban areas would suggest that there should be a construction boom within the housing sector.
Age Distribution
We would most likely target older businesses to build with as younger businesses might not be able to pay us as they won’t have as much money and could be too ambitious in project size compared to budget with a risk of not receiving fees.
Health Consciousness
The company will consider everyone’s health at the highest level, in the office and out, especially on construction sites.
The company will comply with the health and safety legislations.
Career Attitudes
All staff of HJ2K will have a positive attitude towards our business and what we do.
All businesses we work with will also have a positive attitude and understand what we do and want to achieve as a company.
Cultural Differences
The image of the company should demonstrate our attitudes towards equality, it should also take into account cultural differences.
Community Behaviour
The image of the company should demonstrate our attitudes towards equality, it should also take into account community behaviour.
Consider the social impact of the technology used.
TECHNOLOGICAL FACTORS
New Ways of Producing Products/ Services
We employ new ways of producing products and services. Keep up to date with new ways of communicating with target markets.
New Ways of Distributing Products/Services
Keep up to date with new ways of distributing products/services, especially new technologies that may help the environment and cost less for the business.
New Ways of Communicating with Target Markets
Keep up to date with new ways of communicating with target markets, especially keeping track of our competitors as we need to keep our clients interested in us.
New Materials
Our company designs offices for the future, so finding new materials to help promote this will be very beneficial. Using new materials could put us ahead of our competitors, they will probably be more environmental friendly and cost less.
New Technologies
New products/updates are released all the time, which causes more expense for our business to keep up to date with technology and have advances that we don’t have.
Technology is always evolving so we should make sure that we keep up to date with current technology and implement into the company if necessary.
Keeping up to date with current CAD technology for a small practice lends itself to becoming expensive for renewing.
ENVIRONMENTAL FACTORS
Scarcity of Raw Materials
As population grows more living supplies will be needed, meaning in the future raw materials such as oil could become scarce. As we design for the future we will need to consider the environmental impacts of our designs.
Pollution and Carbon Footprint Targets
Climate change and global warming needs to be considered.
Clients will be looking for viable solutions with regards to climate change, local councils will need to be kept happy and on side in order for commercial buildings to be passed. Therefore we need to keep on top of regulations rather than loosing time, labour and money through rejecting of proposals.
Recycling
Our business sector will create a lot of unwanted materials, these should be recycled as much as possible to benefit the environment.
When sourcing for materials we will always see if our design will work best with recycled materials before considering any other resource.
Regeneration
The company will use processes that restore, renew or revitalize their own sources of energy and materials, creating sustainable systems that integrate the needs of society with the integrity of nature.
Sustainable Business Practices
Computers use a lot of electricity, in the present/future our company should find a greener solution to running the electricity such as solar panels. However, this would be expensive to begin with, but will work out better in the long run. Unfortunately this can take quite a few years to start earning the money back, will our business take off and last long enough to be able to get the benefits from this?
To seek out a more environmental way to use technology ranging from out IT technology to choosing the right contractors and builders for construction. This is so that we do not design and build architecture with more waste to the environment than there already is.
Locality Consciousness
Ensure that we promote our environmental image across to the public and potential clients.
Weather within the UK can tend to be rainy and wet providing problems during the build any predictions of building schedules must take this into account.
LEGAL FACTORS
Health and Safety
Health and safety requirements are changing all the time, this could affect how we work around the hardware, such as wires and where they are placed, being able to drink/eat, the chairs we use in our offices etc.
Promote our health and safety objectives.
Equal Opportunities
Throughout our projects we will ensure that all employees, clients and other partnerships are treated equally.
Advertising Standards
Ensure that the company keeps up to date with advertising standards.
Consumer Rights and Laws
The firm must abide by the legal constraints and to construct and use technology as such that it does not affect the company. Regulations are always changing so the firm must keep up to date with current up to date regulations and match.
Intellectual Property Rights
When designing the company may need to take copyright laws and patents to protect its work from competitors.
Product Labelling/ Safety
It is important that we label our products accurately, correctly, clearly and must not be misleading, if the company does not label merchandising correctly could be prosecuted.
© 2021 by HJ²K Design Lab.
DISCLAIMER: This is a student project based at Nottingham Trent University. All content is part of an undergraduate project to create an imaginary business in 2021, and is entirely fictitious. All use of material from other sources is fully acknowledged, and no part of this site is intended as the basis for a real company or for the offer of any professional services.