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PESTLE Analysis of Germany

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ruban james

on 24 July 2016

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Transcript of PESTLE Analysis of Germany

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The Bundestag
The lower house in the German political system.
The Bundesrat
The upper house in the German political system
The Judiciary
The Federal Constitutional Court acts as guardian of the constitution. 
The Länder
There are 16 Länder in the German political system

Economic Factor
Germany has a social market economy.
The 4th largest by nominal GDP in the world the 5th largest by PPP.
GDP of $3.747 trillion and GDP growth of 1.8%.
Average national unemployment rate of 6.8%.
Approved a €50 billion economic stimulus plan to protect several sectors from a downturn 37 of the fortune 500 companies are headquartered in Germany. 

Environmental . Factor

PESTLE Analysis
of Germany

Social Factor
Largest Religion: Christianity 
Predominant language: German
Wolfgang, Amadeus, Mozart's are three German dance forms.
Famous for rye bread. 
National alcoholic drink is beer.
Football is the most popular sport.
UNESCO inscribed 38 properties in Germany on the World Heritage List

Technology Factor
Greatest strength is its automobile industry. Being 3rd largest automobile producer.
World leader in the chemical industry.
Considered a technological heavyweight.
Introduced prototypes of hybrid gasoline-electric vehicles.
Committed to develop renewable energy sources such as wind and solar power

Legal Factor
Law enforcing system at 3 levels:Federal, State & Local
Laws are passed by the Bundestag
Influenced European Union law & by international law.
1,900 acts and 3,000 statutory instruments.
Business-life is based on principle of competition.
The legal stability attracts foreign companies.
Fair competition is safeguarded.
Trademarks and patents enjoy strong protection.

Relies principally on fossil fuels as sources of energy.
40% energy consumption – petroleum
30% consumption -domestic coal deposits
17% consumption – natural gas
10% consumption – nuclear energy

Trade Policy
Free trade
Trade openness creates more jobs overall,
Member of WTO - Policies
The Trade Facilitation Agreement
EU’s “General System of Preferences”.
Market Access Strategy (MAS)
Full transcript