Background
With a population of over 59m, the UK represents one of the most densely populated
areas in Europe. Couple that with the sensitivities of the four countries that
go to make the so-called "United Kingdom" and the picture can get
a little confusing.
Now - thanks to the channel tunnel - the UK is only half an hour away from
its European neighbours. The "Chunnel" - as its commonly referred
to in the UK has done much to free up the island’s insular feel and has
most definitely had a positive effect on the country as a whole.
Demographically the UK can be split up into England, Scotland, Wales and Northern
Ireland. Each of these regions have distinct identities and - in some cases
- languages. Those hoping to do business in the UK ought to be aware of some
of the sensitivities surrounding these regions - the Scots and Welsh are particularly
offended when described as English. Northern Ireland is of course an issue in
itself and these pages are too few to describe in any kind of detail the background
to the so-called "Troubles". Suffice to say though that the emerging
peaceful Northern Ireland represents great opportunities for those wishing to
do business in the region.
The UK’s prime hub of activity is of course - the capital - London. One
of the world’s leading trading centres with the oldest share market place
the Stock exchange vying with New York and Tokyo for influence. London represents
one of the world’s most exciting and liveliest places for business opportunity.
However Birmingham, Manchester, Cardiff, Glasgow and Belfast are all major
business centres in the UK. All have undergone massive development over the
last decade with huge amounts invested in attracting business from both home
and overseas.
There has been some distinct development in certain sectors over the past five
years or so that have earmarked UK companies as world leaders - Pharmaceuticals
and IT in particular have been sectors that have competed well on the world
stage. In particular the growth of Small and Medium Sized enterprises (SME’s)
has been notable with over 3.7 million active SME’s operating in the UK
last year.
UK’s political structure
The current Labour (dubbed New Labour) government is the first socialist government
in eighteen years - the previous period having been dominated by the Conservative
party. However many free market practices have been continued by the present
government and private investment in previously nationalised industries has
been strongly encouraged.
Unlike most of the world, the UK does not have a written constitution. Instead
the constitution has evolved over many centuries and is made up of Acts of Parliament,
common law and conventions.
Parliament
Parliament is the supreme authority in the UK and consists of three elements
- the Monarchy, The House of Lords and the House of Commons. The Queen however,
although Head of state, has few absolute powers. Current reforms underway in
the House of Lords means that its powers are definitely on the wane. The House
of Commons is really the only powerful house within parliament. It consists
of 651 MPs who are directly elected by voters in each of the UK’s parliamentary
constituencies.
Devolution
Governmental power is to some extent going to be devolved to the provinces within
the next few years with both Scottish and Welsh parliaments recently announced.
The Good Friday agreement signed recently in Northern Ireland means that this
region also gets its own parliament. However it is more than likely that ultimate
power still will rest with parliament in London.
Lobbying
Recent scandals over so-called "cash for questions" asked in the Commons
has led to a clamp down on parliamentary lobbying activities. Very few pr agencies
now have coveted lobby passes, which enable them to have direct access to MPs
while in the House. Lobbying activities now tend to concentrate within the parliamentary
environs.
Manufacturing in the UK
The growth in hi-tech industries in the UK has coincided with a definite decrease
in manufacturing output. This is reflected in the trade deficit that currently
stands at around £2 billion but this shortfall is on the decrease with
export figures rising to both EU and non EU countries. All forecasts point to
the shortfall disappearing over the next five years.
Workforce
Gone are the days when the unions held sway over large corporations in the UK.
Overall the labour market is now a lot less volatile. For example in 1984 lost
days due to industrial action cost the country over £27million - 1998's
figures show that the cost to the country of industrial action was virtually
nil. The increasing confidence in the British workforce is reflected in foreign
investment and takeovers such as the BMW takeover of Rover. However skills shortages
are forecast as Britain heads for full employment over the next few years -
a far cry from the 4 million unemployed of twenty years ago.
The British Consumer
The average British family spends more on leisure goods and services than food
putting pay to the myth that the British do not like to enjoy themselves. Therefore
much of marketing expenditures goes on advertising and public relations - -
persuading consumers to spend their money in the right direction.
However the bad news for the UK consumer is that he or she pays more for their
goods than virtually any country in the EU. The government’s treasury
department is looking into this discrepancy and some legislative changes could
be ahead for some importers in the future.
The retail sector although stable - Napoleon did after all label us "a
nation of shopkeepers" - is not currently hitting the growth rates expected
by the current good state of the economy and this has caused some consternation
in economic circles.
The UK Media
The UK printed media used to be firmly be divided into two camps - the broadsheet
and the tabloid. But over the past few years the regional newspapers have increased
in both quality and importance in the UK.
Chief broadsheets are The Times, The Daily Telegraph, The Guardian and
The Independent with the Financial Times the key business publication.
The tabloid sector is dominated by the Daily Mail, Express, Sun and
Daily Mirror. Sunday newspapers however are a vital part of the equation
with competition fierce among the broadsheets and the tabloids to capture the
attention of an over-saturated market. The News of the World, a populist
tabloid, massively dominates this sector with a distribution of over four million.
Terrestrial TV can be chiefly divided into the BBC, ITV and Channel
4 with satellite Channels like Sky slowly encroaching into the mainstream.
Digital TV should see acceleration in the growth of satellite channels over
the next few years. Twenty four hour news channels are also on the increase
with the availability of CNN and the launch of BBC News 24 last year always
on the look out for good news items.
The Internet is also growing in importance as an information medium - many
of the UK’s major broadcast channels - BBC in particular - have sites
devoted to the latest news.
How to find the right UK PR agency for your business
Obviously this is going to be the first thing that you check out before you
appoint an agency. Look at the agency's client list to see if there’s
any common ground. If they are one of the smaller agencies (say 50 staff or
less) don't be put off just because you can’t find anyone that exactly
matches your client profile. Most of the reputable agencies aren’t willing
to carry out work for clients with the same products - so, instead, look for
common areas of expertise - IT or Consumer for example.
Evaluation
Check that your agency has accredited methods of evaluation. Mantra for example
is a computerised index that can match coverage with equivalent advertising
expenditures. Without impartial evaluation tools it can be difficult to truly
understand whether you’re getting value for money.
Quality
Check that your agency has the ISO 9001 seal of quality assurance. This is the
nationally recognised standard for companies whose procedures comply with the
tough quality systems required in a client-focused industry like pr.
PR Week
PR Week is the UK’s chief pr journal. It annually publishes a list of
the top 100 companies - check how your proposed agency fared in it most recently.
All of the above are a good starting point. Clearly it’s only through
meeting/talking to your agency that you’ll get a true picture of what
they can offer.
There are also avenues for further information on the UK generally. Check these
out:
Professional Associations and networks
In the UK the Institute of Public Relations (IPR) is the chief professional
body. The PRCA represents the PR consultancy business and is joined internationally
by its alliance to ICO. Membership in PR networks - PROI in particular –
is a useful indicator of professionalism. Each PROI Partner has to conform to
rigorous quality standards to be included in the network.
Further information
The UK government has recently launched a website www.opengov.co.uk,
which provides access to all major government departments. These sites contain
vital information about trade policy and consumer statistics, for example, so
it is extremely useful for anyone unfamiliar with UK legislation etc.
For further information about PROI's Partners in the United Kingdom contact:
publicasity or
Lansons
Doing
business in... 
