Premium Essay

Pestle Summary China

In:

Submitted By snoop
Words 643
Pages 3
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 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 that began in 1978, and for the past 25 years it has averaged 10% growth per year. The record stops this year, sadly. It really is a pity--China's growth has done more to reduce world poverty than any program, aid initiative or growth in the rest of the world combined. The moral of this story is, to get rich may be glorious, but not if you trash your house and

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

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

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

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

Free Essay

Market Analysis

...or a Chinese company. The name of the Bangladeshi leather company is Leatherex Footwear Industries Ltd, which will mainly provide leather and labor in this joint venture because labor cost is low in Bangladesh. The whole manufacturing process will take place in Bangladesh. On the other hand, India and China will mainly provide technology, idea, R&D and special equipment (if required). We have decided to go for joint venture, rather than exporting because, joint venture provides companies with the opportunity to gain new capacity and expertise. It will allow us to enter new geographic markets, that is, India or China and gain new technological knowledge access to greater resources, including technology and sharing of risks with them. China and India is not an easy market to enter, as from geographic point of view, they are vast and also they possess a total different culture. Again, it will be difficult for us to monitor and sustain. So, by joint venture, we will be able to penetrate their market and also to their culture easily and quickly through them as they already have enough knowledge about their market. EXTERNAL ANALYSIS – PESTLE ANALYSIS THE PESTEL ANALYSIS OF INDIA Political: (Stable) After researching the taxation and government policies, it can be said that India is politically stable and it will not upset doing business or growth of the company. India has an open system for the foreign entry. But sometimes the country...

Words: 3294 - Pages: 14

Free Essay

Uk Pestle Analysis

...Country Profile Series United Kingdom In-depth PESTLE insights PESTLE Country Analysis Report: United Kingdom REFERENCE CODE: ML00002-031 PUBLICATION DATE: May 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00002-031/Published 05/2013 Page 1 © MarketLine. This report is a licensed product and is not to be photocopied OVERVIEW Catalyst This profile analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure in the UK. Each of the PESTLE factors is explored on four parameters: current strengths, current challenges, future prospects, and future risks. Summary Key findings The UK has a strong democratic system, but differences between coalition partners in the incumbent government pose a challenge The UK adheres to a democratic, parliamentary system of governance known as the Westminster system. This system ensures adequate distribution of power between the executive branch led by the prime minister, the bicameral legislature and the judiciary. Growing ideological differences between the Conservatives and Liberal Democrats in the current government is making the coalition vulnerable. Tensions between pro-Europe Liberal Democrats and euroskeptic Conservatives continue to plague British politics. Further, conflicting views on issues such as welfare reforms, immigration and the economy are straining relations. The UK economy is developed, but rising government debt...

Words: 22764 - Pages: 92

Premium Essay

Business Report on Alibaba

...Business 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...

Words: 1650 - Pages: 7

Premium Essay

The Kumeyaay People of California

...later in 1978 as the California Museum of Man. Besides housing the history of the Kumeyaay people, who are the subject of this research paper, the history of other Native Americans from the South of California can also be studied in this place. The museum has a population of over 100000 ethnographic items, 25000 images, and a large library of books and journals. MUSEUM EXHIBIT 1) Artifact Display On the second floor of the museum, a wide variety of the historic sources can be found. Among the displayed artifacts there are models of the early man, reconstructions of the bones of hominids, cave paintings, coffins of mummies from ancient Egypt, stone carvings, and remains of the Egyptian mummy known as Lemon Grove. The culture of the people of China, Egypt and the Kumeyaay people are dominant. Their traditions and way of life are represented by the paintings, jewelry, pottery, and other tools. 2) Exhibit Content The artifacts reveal peculiarities of the life of the ancient California inhabitants. In this section, featured are the ways of food gathering, pot making and pottery, art and basket making, ancient medicine, dress...

Words: 2380 - Pages: 10

Premium Essay

Twg Marketing

...Executive Summary……………………………………………………… 2 2. Company Overview………………………………………………………. 2 3. Target Country Analysis………………………………………………… 3 3.1 PESTLE Analysis of Target Country……………………………… 3 3.2 Potential Market Analysis…………………………………………... 4 4. SWOT Analysis……………………………………………………………. 6 5. Marketing Objectives / Targets………………………………………… 9 6. Marketing Strategy……………………………………………………….. 9 6.1 Market Segmentation………………………………………………... 9 6.2 Target Market………………………................................................ 10 6.3 Positioning…………………………………………………………….. 10 6.4 Marketing Mix…………………………………………………………. 11 7. Market Entry Modes……………………………………………………… 13 8. Local Regulations and Taxes…………………………………………... 14 9. Conclusion………………………………………………………………… 15 10. Bibliography……………………………………………………………….. 16 1. Executive Summary TWG Tea is an internationally recognized premium and luxury tea brand established in Singapore which offers 800 fine harvest tea and exclusive blends, as well as tea patisseries and other tea-infused delicacies. TWG Tea is a veritable innovator with the creation of new varieties of tea from every season and collaborated with the world’s most renowned estates. China is identified as one of the strong future growth opportunity for TWG Tea. They are one of the few countries who have established a tea drinking culture and customs. Tea is part of the Chinese customs and lifestyle. The fast and expanding economic growth in China has led...

Words: 4103 - Pages: 17

Free Essay

Sourcing and Pestel

...Following my findings, I have decided to use the following countries to source from: • India • Romania • China • Mauritius China China is the world’s largest textile and clothing manufacturer in the world. There are around 100,000 garment manufactures, which employ approximately 10 million workers. Its exporters are currently having to deal with the strain of higher wage costs, lower demands and fluctuations in raw material prices. Advantages Disadvantages • Largest manufacturer in the world - can produce almost anything required • Manufacturers may help with design of product • Typically good quality products • Relatively low prices • Efficient machinery • Large population and therefore large work force allow the country to lead in the worlds production • Continued industrial upgrading • Language barrier • Long distance (if problems occur) • Long lead time • Cultural barriers (different national/religious holidays) • Chinese lunar new year occurs in January or February each year, and therefore factories may be shut at this time. • Time difference – small window of opportunity for direct communication • Factories having to pay higher prices for more materials and higher wage costs as the price of living increases – may impact on cost pricing • Growth of environmental protection issues India Advantages Disadvantages • Skilled workers that produce beautiful handmade and embellished garments • Low prices • Business creates jobs for local people...

Words: 1780 - Pages: 8

Free Essay

Foxconn Technology Group - the Suicides Incidents

...as its size. However, in the recent years, the name of company became more aware of due to their issues on labour practices. This aspect of the company will be explored for this analysis. 2.0 The company’s background Foxcoon was established in 1974, also known as Hon Hai by Terry Geo as a manufacturer to produce plastic parts for television sets. As they started to grow larger, they have started to produce console Joystick controller through receiving orders from Atari. In 1985, Hon Hai established United States offices and successfully branded “FOXCONN”. At the same year, Foxconn entered the top 1000 companies of Taiwan. (Foxconn, 2014) In 1988, Terry Gou made a significant decision, which was to establish first factory in Shanghai China. This strategy proved to be so successful that Foxconn began to grow its business at an unbelievable speed. By 2001, Foxconn became the biggest company in Taiwan. Foxconn continues to grow as they began to expand to telecommunication market and look to use more robots in their manufacturing in 2014. Since the founding of the company, they have expanded scope on electronic business. The Foxconn has recognized to become significant in this field. So far, the Foxconn is the world’s largest electronic contract manufacturer, has around 1.23...

Words: 2563 - Pages: 11

Premium Essay

Us Pestel

...businesses in the United States. Foreign investments are traditionally welcomed to create new jobs, increase capital growth and for technology advancements. Since 1990, FDI increased dramatically. FDI accounts for $148 billion in 2009 and forecasted $300 billion in 2014. Policies like tax credits such as Real Estate Act 2010 removes the current taxes on foreign investors of commercial real estate and other investment incentives are provided to attract more foreign investors. But US- China relationship is not in a good shape due to the factors such as Yuan manipulation, import taxes, excluding foreign suppliers at certain sectors. Outlook Stable political environment and favor to foreign investments. US- China relationship may become better or not based on the leaders decisions. Impact: Haeir have to spend time and effort on understand the system and to adhere to the State government regulations and Federal regulations. Haier may not get the preferences with government process due to US-China relationship Policies for FDI: http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1675&context=auilr Economic Well developed and largest economy in the world. Moderate economic recovery from the 2008-2009 financial crises overall but obvious uncertainty remains for the future. Growth in 2011 is...

Words: 2286 - Pages: 10

Free Essay

Feasibility Report

...1 Executive summary This report discusses the feasibility of opening up a Public Kitchen which is served for college students in China. It is necessary to use several management research tools to assess the feasibility, such as PESTLE, Porter’s Five Forces and Cash Flow, based on those researches, it seems that this business could success and have much developing space to improve itself in the future, for example, adding more recreational facilities in ‘Our Kitchen ’ to attract more customers. 2 Introduction The reason why I choose China as the target market is that I come from China and I am more familiar with the Chinese market than the United Kingdom’s, especially Chinese colleges and students. When I arrived at my new dormitory in the University of Birmingham, I was shocked by the big and bright kitchen for 15 students. There is no public kitchen in Chinese colleges, so almost all the students must have three meals in one or several crowded canteens or order takeout every day. As a new graduate from a Chinese college, I could realize that some students are eager to cook for themselves or host a party with their friends. What they calling for is a comparatively private and comfortable environment. At the same time, I know economic environment around Chinese colleges well. Thus I come up with an idea that launching a public kitchen for college students and it could be a brand new food service in the market of Chinese colleges. Moreover, if the idea were to come true...

Words: 3390 - Pages: 14