Premium Essay

Pestle Analysis for China

In: Other Topics

Submitted By vamsi1253
Words 4476
Pages 18
PESTEL analysis for China1)

Political Factorsi.Constitutional SystemChina or People¶s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country.The country¶s sole political party in power is known as the Communist Party of China.The government have the sole power to control all activities done by their citizen as whathave been describe in how communism system worked in governing a country. Inother words, the purposes of working in China are to contribute to the nation and alsoto the government as the government control on all activities in the country.ii.Stability of Government.

The stability of the China government is quite moderate and stable because theadministration of the government are not publicize to the public either through thepress or on the internet. So, the degree of the citizen involvement in the politics is lowbecause of the heavy restrictions impose by the government. However, the policiesimpose and the law regulations are quite effective in terms of economy where China isone of the leading countries in the world. In the recent years (2001), China has joinedthe World Trade Organization and results rapid growth in industrial and manufacturingsectors because of the cheap labor in China. But still problems such as managingenvironmental degradation, demographic pressure and the extreme immigration fromrural to urban area must be faced by the government.iii.Business FreedomThe business freedom in China is quite tight because of the regulation impose by thegovernment where they restrict businesses from other countries coming in. But recently,China government open their gate to the outside world to set up business in their country.It takes 37 days to start anew business in China compared to the worldaverage 38 days. While it takes 1.7 years from the filling for

Similar Documents

Premium Essay

Service Marketing

...http://www.mysensex.comPESTLE « Pestle Summary: India | Main | Pestle summary: USA » 03/28/2009 Pestle Summary China Well, I guess this is where I get controversial, at least a bit. There are others who have predicted that China was in for a tough ride over the past few years, but they mostly got ignored, or were proven wrong by events. And, to a certain extent, if you cry doom long enough you'll always get proved right, given the laws of entropy. So this is a bit 'faux' controversy... This is the introductory note taking exercise for a Pestle analysis of China, drawn on conventional internet sources such as Wikipedia, the CIA World Factbook and Nationmaster. China is the most populous country in the world, with 1.34 billion people. It has the third largest GDP, with $4.84 trillion, behind Japan and the U.S. Like India, the currency and conditions make it useful to look at some statistics using Purchasing Power Parity, which bumps up China's GDP to $7.8 trillion, which would move it ahead of Japan. It also is the second in the world in annual military spending, although that needs a bit of context, as the world's number two spends about 15% of what the world number one (USA) spends. But with PPP, that looks like more money, and insofar as it is used to pay salaries, rather than buy Israeli rocket parts, PPP is valid in this context too. China is badly governed by the Communist Party, and in my five-year Pestle forecast I will be making the case that misgovernance will...

Words: 1059 - Pages: 5

Premium Essay

Pest

...PESTLE Analysis of China 2012: Lucintel Forecasts Robust Growth for Chinese Economy despite Eurozone Crisis PESTLE Analysis of China 2012: Lucintel Forecasts Robust Growth for Chinese Economy despite Eurozone Crisis Irving, TX (PRWEB) June 21, 2012 -- China’s economy has experienced a strong annual GDP growth rate of 10% during the last five years. It is expected to continue its growth momentum and surpass the US in GDP by 2020. A high rate of savings, abundant and increasingly skilled labor, healthy export business, and potential urban growth is likely to drive the Chinese economy to sustained growth during 2012-2017. Lucintel, a leading global management consulting and market research firm, performed a Political, Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of China and presents its findings in “PESTLE Analysis of China 2012.” As indicated in the study,foreign direct investment (FDI) has proven to be the driving force for China’s ongoing economic growth. The large and expanding market of China is attracting leading multinationals, encouraging local innovators, allowing domestic manufacturers to produce low-cost products, and permitting formation of industry clusters and business groups. Successive governments’ focus on reform processes and simplification of China’s tax law and FDI procedures makes China an ideal destination for investment and growth. The report also indicates that large-scale production diminishes production costs, leading...

Words: 466 - Pages: 2

Premium Essay

Pestle Analysis

...Brochure More information from http://www.researchandmarkets.com/reports/2329821/ PESTLE Analysis of China 2012 Description: China’s economy has experienced a strong annual GDP growth rate of 10% during the last five years. It is expected to continue its growth momentum and surpass the US in GDP by 2020. A high rate of savings, abundant and increasingly skilled labor, healthy export business, and potential urban growth is likely to drive the Chinese economy to sustained growth during 2012- 2017. Lucintel, a leading global management consulting and market research firm, performed a Political, Economical, Sociological, Technological, Legal, and Environmental (PESTLE) analysis of China and presents its findings in “PESTLE Analysis of China 2012.” As indicated in the study, foreign direct investment (FDI) has proven to be the driving force for China’s ongoing economic growth. The large and expanding market of China is attracting leading multinationals, encouraging local innovators, allowing domestic manufacturers to produce lowcost products, and permitting formation of industry clusters and business groups. Successive governments’ focus on reform processes and simplification of China’s tax law and FDI procedures makes China an ideal destination for investment and growth. The report also indicates that large-scale production diminishes production costs, leading to less-expensive exports. China’s strong presence as an export platform supports income and employment growth in the economy...

Words: 1309 - Pages: 6

Premium Essay

Pest China

...The PESTLE Analysis is a common approach for examining the general business environment in order to manage the future opportunities and threats from probable changes in the environment (Mullins 2002) by analyzing the Political and legal conditions, Economic conditions, social and cultural conditions, technological conditions and environment related issues. In the following we will execute a PESTLE Analysis on the E-Commerce sector of the Chinese market. And as proposed by Neil Botten (2008, p.39) that there are no pure factors because these factors are interlinked. Political and legal analysis  Political factors include government regulations and legal issues and define both formal and informal rules under which firm must operate. And it is claimed that the political force is probably the most turbulent force in the environment (Fahey & Narayanan 1986). In the past one decade, the Chinese government attaches great importance and focus to the development of e-commerce in the most populous country, for example, on issuing the Summaries of the Middle/Long Term Science and Technology Development Plans of China and the Development of Information Industry Plans in the Eleventh Five-year and Long Plan in 2020 Years in The Ministry of Information Industry, the “application of e-commerce platform technology” has been listed as a key point (Li 2010, p.260).  In term of the legal system, the Chinese legal framework for e-commerce is still in its nascent stage and has already experienced...

Words: 1452 - Pages: 6

Premium Essay

Pestal

...PESTLE analysis PESTLE ANALYSIS Summary South Korea has been politically stable since becoming a democratic state. However, its relationship with North Korea continues to present a strong challenge. South Korea fell into a brief financial crisis in 1997 due to structural weakness in the banking sector, however strong economic and financial reforms quickly countered the downturn and put the country back on a growth path by the following year. With the opening up of markets after the financial crisis in 1997, the country became one of the largest technology markets in the world. As far as social issues are concerned, the country has low population growth and fertility rates, leading to an ageing population. Furthermore, the country has a highly qualified labor force, which makes it possible to both produce and commercialize advanced technologies. The country is also well equipped with extensive broadband network and telecommunication facilities. Legal procedures in the country are time consuming and complex, which makes it very difficult for foreign investors. The environmental scenario of the country is characterized by the breach of emission standards, which is reaching unreasonable limits in spite of its relatively small area and population in comparison to other countries. Republic of Korea: Country Analysis Report – In-depth PESTLE Insights © Datamonitor. This brief is a licensed product and is not to be photocopied Published 06/2008 Page 11 PESTLE analysis ...

Words: 8071 - Pages: 33

Premium Essay

Research

...PESTLE analysis PESTLE ANALYSIS Summary South Korea has been politically stable since becoming a democratic state. However, its relationship with North Korea continues to present a strong challenge. South Korea fell into a brief financial crisis in 1997 due to structural weakness in the banking sector, however strong economic and financial reforms quickly countered the downturn and put the country back on a growth path by the following year. With the opening up of markets after the financial crisis in 1997, the country became one of the largest technology markets in the world. As far as social issues are concerned, the country has low population growth and fertility rates, leading to an ageing population. Furthermore, the country has a highly qualified labor force, which makes it possible to both produce and commercialize advanced technologies. The country is also well equipped with extensive broadband network and telecommunication facilities. Legal procedures in the country are time consuming and complex, which makes it very difficult for foreign investors. The environmental scenario of the country is characterized by the breach of emission standards, which is reaching unreasonable limits in spite of its relatively small area and population in comparison to other countries. Republic of Korea: Country Analysis Report – In-depth PESTLE Insights © Datamonitor. This brief is a licensed product and is not to be photocopied Published 06/2008 Page 11 PESTLE...

Words: 8071 - Pages: 33

Premium Essay

Pestle Analysis

...INTRODUCTION This is an analysis and strategies report that a French group of retail sector called Carrefour needs to use to expand his business in China before other foreign competitors expand in China. Carrefour is a French group of the retail sector founded in 1959 by Defforey Fournier. Currently, Carrefour is the second largest group in this sector in terms of revenue behind Wal-Mart and it is number 1 in Europe, South America (Chester, 2012) Carrefour is also present in Asia with around 371 hypermarkets and with 64 hypermarkets in other areas of the world in the form of local partnership and its aim is “to become the preferred retailer that is supportive throughout the world” in all of its formats (Carrefour Foundation Annual Report, 2010) China is an Asian country, with two states currently claim to have sovereignty: the People's Republic of China, which controls 99.6% of its territory and the Republic of China, which only controls Taiwan. It’s only in 2008, that the two governments united, have agreed for a more cooperative atmosphere (BBC Monitoring, 2014) Currently, China is the most populated country in the world with around a population of 1.33 billion. China has 20 cities with more than 5 million of people and 100 cities with over 1 million people. In the period of 2011 and 2015 China’s annual average GDP growth is predicted to be 9.5%. China is the largest growing GDP per capita in the world (Rodgers, 2012) China is a country with the world’s largest exports...

Words: 1475 - Pages: 6

Premium Essay

China

...I get controversial, at least a bit. There are others who have predicted that China was in for a tough ride over the past few years, but they mostly got ignored, or were proven wrong by events. And, to a certain extent, if you cry doom long enough you'll always get proved right, given the laws of entropy. So this is a bit 'faux' controversy... This is the introductory note taking exercise for a Pestle analysis of China, drawn on conventional internet sources such as Wikipedia, the CIA World Factbook and Nationmaster. China is the most populous country in the world, with 1.34 billion people. It has the third largest GDP, with $4.84 trillion, behind Japan and the U.S. Like India, the currency and conditions make it useful to look at some statistics using Purchasing Power Parity, which bumps up China's GDP to $7.8 trillion, which would move it ahead of Japan. It also is the second in the world in annual military spending, although that needs a bit of context, as the world's number two spends about 15% of what the world number one (USA) spends. But with PPP, that looks like more money, and insofar as it is used to pay salaries, rather than buy Israeli rocket parts, PPP is valid in this context too. China is badly governed by the Communist Party, and in my five-year Pestle forecast I will be making the case that misgovernance will prove to be the root cause of a downward spiral that will cost China dearly. It will mark the end of an unprecedented run of growth and opportunity...

Words: 627 - Pages: 3

Free Essay

Apple

...memiliki store atau gerai sendiri yang diberi nama iBox. Gerai ini merupakan gerai yang dimiliki dan dikelola sendiri oleh Apple dalam melayani penjualan produk-produk Apple. Steve Jobs percaya bahwa gerai ini ada untuk mendekatkan hubungan Apple dengan konsumennya. Selain itu juga untuk memberikan kendali yang lebih besar dalam menyampaikan pesan Apple sebagai sebuah brand. Menurut pendapat saya, saya setuju dengan adanya Apple Store ini. Apabila kita meninjau dengan Porter’s Value Chain maka dapat kita ketahui, yang menjadi primary activity dari Apple adalah distribution, sales and marketing, serta service. Maka Apple Store adalah representasi yang tepat dalam mewujudkan aktivitas utama dalam value chain Apple. Selain itu, sesuai PESTLE Analysis yang berkaitan dengan sosial, salah satu keunggulan Apple adalah kemampuannya membidik...

Words: 1313 - Pages: 6

Premium Essay

Pestle Summary China

...I get controversial, at least a bit. There are others who have predicted that China was in for a tough ride over the past few years, but they mostly got ignored, or were proven wrong by events. And, to a certain extent, if you cry doom long enough you'll always get proved right, given the laws of entropy. So this is a bit 'faux' controversy... This is the introductory note taking exercise for a Pestle analysis of China, drawn on conventional internet sources such as Wikipedia, the CIA World Factbook and Nationmaster. China is the most populous country in the world, with 1.34 billion people. It has the third largest GDP, with $4.84 trillion, behind Japan and the U.S. Like India, the currency and conditions make it useful to look at some statistics using Purchasing Power Parity, which bumps up China's GDP to $7.8 trillion, which would move it ahead of Japan. It also is the second in the world in annual military spending, although that needs a bit of context, as the world's number two spends about 15% of what the world number one (USA) spends. But with PPP, that looks like more money, and insofar as it is used to pay salaries, rather than buy Israeli rocket parts, PPP is valid in this context too. China is badly governed by the Communist Party, and in my five-year Pestle forecast I will be making the case that misgovernance will prove to be the root cause of a downward spiral that will cost China dearly. It will mark the end of an unprecedented run of growth and opportunity...

Words: 643 - Pages: 3

Premium Essay

Pestle

...LOVELY PROFESTIONAL UNIVERSITY Lovely school of management TERM PAPER MGT-511 Business Environment PESTLE Analysis of India Submitted To: - Submitted By:- Mr. Vishwas Chakranarayan Ashish Suman Roll No. RS1904A10 Reg. No. – 10905868 Acknowledgment My sincere thanks and gratitude to my faculty who inspired me by his able guidance and was a constant guiding light during the course. The support and knowledge provided by him has been a great value addition for me and will go a long way in building a promising career. Last but not least, I am also thankful to all the respondents of my survey without whom the Term Paper would not have been completed successfully. (Ashish Suman) Contents Page No. 1. Abstract : 4 2. Methodology : 5 4. About India : 6 4. Introduction : 9 5. PESTLE Analysis 7 Political : 10 Economical : 13 Social : 16 Technological : 17 Legal : 18 Environmental : 19 6. Conclusion : 20 8. References : 21 Abstract In this term paper Pestle analysis of India. How Organization take the analysis for setup the offices or industry in India. In this analysis tell the environment of India. Factors of India. Government policy, literacy, privatisation, legal problem, technology use India, any many factors given below. Methodology For This term Paper I search...

Words: 2856 - Pages: 12

Premium Essay

Burberry in China

...BURBERRY’S MOVE TO CHINA THE CASE STUDY STUDENT NUMBER: 1017357 INTERNATIONAL BUSINESS ENVIRONMENT STUDENT NAME: OVIE G. AKPOVWA TUTOR; Dr SAMAR BADDAR SHR027-6 WORD COUNT: 2,498 SUBMITTED: 12th May 2011 EXECUTIVE SUMMARY In this report, focus on the issues facing Burberry movement to china will be discussed. Burberry is a luxurious British brand trying to move from Wales in Britain to China in order to reduce cost of production of their product. This report was done in stages, the first a PESTLE analysis was conducted on China. The analysis consisted of the political environment of china; the economic condition of china was also reviewed, technological development, social values, legal and ecological factors that might affect the Chinese market were also discussed. Secondly, SWOT analysis of the Chinese market was conducted, while the advantages and disadvantages of moving to china were given. However, in the conclusion given, Burberry was advised to move to china because it will definitely reduce cost of production and it will give them opportunity to gain from china’s big market size. Thirdly, this report discussed the best HR policies that the company can used to meet the demand of...

Words: 3030 - Pages: 13

Free Essay

Case Study Haute Couture Fashions

...UNIVERSITY KUALA LUMPUR OF BUSINESS SCHOOL BACHELOR OF ACCOUNTANCY (HONS) ASSIGNMENT : ASSIGNMENT PESTLE MODEL AND SWOT ANALYSIS OF HAUTE COUTURE FASHIONS (HCF) SUBJECT NAME SUBJECT CODE STUDENT’S NAME : INTEGRATED CASE STUDY : EAB 40703 : 1) NOR HIDAYAH BINTI ABDUL HAMID 62288111073 2) DAYANG MAZIELA BINTI ZULKIPLI 62288111048 3) NOOR ASRAFEZ BIN JALUDDIN 62288111007 4) NUR HIDAYAH BINTI ABU HASSAN 62288111001 5) NURULHUDA BINTI MUSTAFA 62288111052 6) ZAKIAH BINTI KASIM 62288111072 SEMESTER LECTURE’S NAME :6 : SIR AMIRUL HAFIZ BIN MOHD NASIR SWOT ANALYSIS STRENGTH o Have skilled trained by British master cutters. o A high quality manufacturing o Experience work with European country o High quality of design ready to wear o Aware about employees welfare WEAKNESSES o Lack of production cost o Lack of producing finish good o Lack of management planning o Lack of raw material o Lack of man power OPPORTUNITY o Attract more customer based from Europe o o o o Expand more branch within and outside Malaysia Leave Malaysia Hire cheaper employees in China to reduce cost Improve in technology o THREAT o Price competition with China manufacturing Kiki and Houida want move to China The PESTLE Model Political: Definition: What is happening politically environment in which business operates. For example: Represent the way and the extent to which a government influences the economy and a certain business. Political factors are represented by specific areas, such...

Words: 917 - Pages: 4

Premium Essay

Pestle Analysis

...India India, officially the Republic of India is a country in South Asia. It is the seventh-largest country by geographical area, the 2 most populous countries, and the most populous democracy in the world. The Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 kilometres .It is bordered by Pakistan to the west, People's Republic of China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east. India in the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean. Home to the Indus Valley Civilisation and a region of historic trade area and vast empires, Indian subcontinent was identified with its commercial & cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while the Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and shaped the region's diverse culture. The British East India Company from the early eighteenth century and colonised by the United Kingdom from the mid-19 century, India became an independent nation in 1947 after a struggle for independence that was marked by widespread non-violent resistance. India is a republic consisting of 28 states and 7 union territories with a parliamentary system of democracy. It has the world's 12th largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed...

Words: 2453 - Pages: 10

Premium Essay

Business Report on Alibaba

...Report on Alibaba Name: Xiya Chen Group:IBM-E2 Subject: Business & Management Executive Summary This report is based on the business environment analysis to identify key factor for Alibaba. From ratio analysis, it is found that financial performance of Alibaba is decreased in last two years due to decline in profitability and management efficiency. It is also identified from PESTEL analysis that political, social and legal environment of China is supportive for Alibaba, but there are some emerging challenges in economic environment. From SWOT, it is also found that are various opportunities and threats for Alibaba in the existing business environment. In the end, it is observed that global expansion can be effective for Alibaba to deal with future challenges effectively. Table of Contents 1.0 Introduction 4 2.0 Company Background 4 3.0 Business Performance 4 4.0 Macro and Micro Environment Analysis 5 4.1 PESTLE Analysis 6 4.2 Porter’s Five Forces Analysis 7 4.3 SWOT Analysis 8 5.0 Recommendations 9 5.1 Conclusion 10 5.2 References 11 1.0 Introduction This report is prepared to analyze external business environment for an organization and make appropriate recommendations to deal with future challenges. For this purpose, Alibaba is selected for this report. 2.0 Company Background Alibaba is a China based e-commerce company that was founded in year 1999 by Jack Ma when he launched a website called Aliobaba.com. At present, it mainly operated three e-commerce...

Words: 1650 - Pages: 7