1. Evaluation of Countries Using PEST Comparative Evaluation of Germany & India Using PEST Scoring Template Note: See Appendix for the Detailed PEST Analyses Based on Which the following Comparative Evaluation Was Prepared. The Scores are Based on Our Assessment. UK India Comments Score Comments Score Politics Political Structure. The largest democratic republic, a hybrid of the British and US political systems. 4 Political Freedom High degree of political freedom, high degree of press freedom.
4 Political Stability Problems within the coalition government, the growth of nationalism and the intermingling of religion and politics. 2 Foreign Relations Increasing problems with Pakistan over cross-border terrorism. War on terrorism has left the region unstable. 2 National Security Several incidences of religious conflicts and tensions in Pakistan – occupied Kashmir. 1 Continuity of Govt. Policy Govt policy is not as stable in recent times.
3 Govt. Bureaucracies Problems between central and state governments. 2 Legal Environment A competent legal framework in existence, although sometimes, justice is equated with money. 3 Human Rights Record Central government accused in recent times of stirring up religious violence. 1 Level of Corruption High levels of corruption in government offices. 2 Political Risk High levels of risk, civil unrest, cross-border stand-offs with Pakistan.
2 SUB – TOTAL 26 Economy- General Economic System A mixed economy but largely state-owned or public-controlled. Exceedingly volatile, influenced by implementation of economic reforms. 3 Size of Economy Ranked as the 12 th largest economy in the world. 3 Growth Prospects Very high potential for growth.
Government Economy Policies USA has one of the most technologically advanced and largest economies in the world. Its GDP is near 12.373 trillion dollars. US economy is capitalistic and free-market oriented where the vast majority of microeconomic decisions are made by In this capitalistic, free market-oriented mixed economy, corporations and other corporations and other private firms. Business ...
GDP growth registered an increase from 5% in 2001 to 5. 4% in 2002. 5 Per Capita Income Per capita income is low considering 25% of the population is below the poverty line. 2 Economic Stability Facing an upturn after a spate of recent year recessions.
4 Interest Rate Deregulation of interest rates has eased financial repression. 3 Inflation Rate Reduced to below 5% in 2002. 3 Exchange Rate Risk The rupee is not easily exchangeable, although it has strengthened in comparison with the US dollar. 2 Balance of Payment Current account deficit narrowed from 1. 1% in 2001 to 0. 5% in 2002.
3 Foreign Ownership Policy Restrictions on foreign companies lifted subject to specified investment obligations. 4 Size, Development & Influence of the Capital Markets / Stock Exchanges Huge numbers of listed stocks with free entry and exit to domestic and foreign companies. 3 Investment Incentives Recent reform policies have induced increased investment incentives to foreign investors. 3 Banking Industry Improved regulatory framework, a quest for lower leverage. 3 Taxation Regime A favourable tax regime in place. 4 Availability of Relevant Factor Endowments An abundant quantity of various reserves and minerals.
4 Economic Liberalisation Government influence on major industries, although large-scale privatisation has taken place recently. 3 Economic Infrastructure Not generally developed and is unreliable 2 Level of Informal Sector High levels of black-marketing at present. 2 Economic Outlook A marked improvement in 2002, major steps undertaken for strengthening the economy in future. 4 SUB-TOTAL 60 Economy- Energy Markets Market Size A significant potential for sales backed by an enormous population.
5 Price Control Regime Absence of independent regulation has lead to distortion of prices. 2 Energy Balance A huge demand but an inadequate supply. 2 Competition Improved scope of competition with the abolition of the administered price mechanism. 3 Opportunities Large-scale opportunities for domestic and foreign companies.
4 SUB – TOTAL 16 S – Social Population Ranked 2 nd in the world in terms of population size. Presents a strong market opportunities and potential 5 Labour Mobility The 2 nd highest labour mobility in Asia. 5 Income Levels Unequal distribution of income amongst various classes. 2 Income Distribution A large proportion of population is below the poverty line. 2 Social Disturbance Social unrest caused by religious conflicts in particular regions. 2 Employment Levels Very high level of unemployment.
At the time of India’s first Five Year Plan, the government focused primarily on the agriculture sector. A large part of capital and technology was devoted to increasing agricultural production. This was effective at the time and is now referred to as the green revolution. The success of this plan convinced the Indian Planning Commission to shift their strategy. The NM strategy drew inspiration ...
4 Wages Low wages offered to labour class. 4 Consumer Awareness Increased awareness amongst the literate population and gaining momentum amongst other classes as well. 3 SUB – TOTAL 27 Technology Research & Development Significant opportunities for improvement in technology and R&D. 2 SUB-TOTAL 2 GRAND TOTAL 131 INDIA India’s Social Realities People of India India occupies only 2.
4% of the world’s land area, but it supports over 15% of the world’s population. The total population of India is more than 1. 0 billion in July 2001. Currently, 33. 12% of people are younger than 15 years old and most of Indians live in rural areas, while the rest of people are in cities and towns. Life expectancy is about 63 years, 52% of people who are 15 years old and over can read and write.
Also there is a 9-year compulsory education, up to age 14 and about 416 million work force is involved in different industries. Culture Because of the historic factor that Iranian plateau, Central Asia, Arabia, Afghanistan and the West have invaded India thousands of years ago, Indian people and culture have been influenced extremely and produced a remarkable racial and cultural synthesis. 24 languages are spoken in the country. English is the most vital language for national, politics and commercial communication. Although 81. 3% of the people are Hindi, India is the home of Muslims (12% of people) — one of the world’s largest Muslim populations.
The population also includes Christians, Sikhs, Buddhists, Sikhs and Parsis… Education The education system has been developed at the conceivable levels from pre-school to post doctoral level. There are more than 740, 000 formal school sand more than 3. 6 million full time teachers. Over 175 Universities are offering under graduate and post graduate courses and about 6000 colleges affiliated to these universities. Religious Conflicts India’s extraordinary diversity is often seen as its greatest strength, but religious, ethnic, and regional conflicts regularly pose significant challenges to the country’s democracy.
Shaping Africa Introduction I plan to develop a business incubator in Africa as a way of shaping future of entire Africa. A business incubator refers to a programme which is designed in helping businesses in their growth and development phase. This project will help many entrepreneurs or business owners across Africa where the business incubator will provide them with the required ...
Increasing conflicts between Hindu and Muslim have caused more than 35000 people dead since 1989. Challenges to secure democracy, justice, and equality in a multicultural society become urgent and necessary in India. Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: 1.
How stable is the political environment? 2. Will government policy influence laws that regulate or tax your business? 3. What is the government’s position on marketing ethics? 4. What is the government’s policy on the economy? 5. Does the government have a view on culture and religion? 6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? Economic Factors Marketers need to consider the state of a trading economy in the short and long-terms.
This is especially true when planning for international marketing. You need to look at: 1. Interest rates 2. The level of inflation Employment level per capita 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on Sociocultural Factors The social and cultural influences on business vary from country to country. It is very important that such factors are considered.
Factors include: 1. What is the dominant religion? 2. What are attitudes to foreign products and services? 3. Does language impact upon the diffusion of products onto markets? 4.
How much time do consumers have for leisure? 5. What are the roles of men and women within society? 6. How long are the population living? Are the older generations wealthy? 7. Do the population have a strong / weak opinion on green issues? Technological Factors Technology is vital for competitive advantage, and is a major driver of globalisation. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2.
1.0 Introduction Technology is an improvement over what was available in the past. People and organizations often seek technology because it eases tasks and facilitates production. With the appropriate technology, complex tasks are simplified. Man has used technology to achieve previously insurmountable tasks: walk on the moon; create test tube babies; treat life threatening diseases; predict ...
Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e. g. books via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e. g.
banners, Customer Relationship Management (CRM), etc? web (Arun K. Mishra, “Technical/Vocational Education in India”) same source as in footnote 34 same source as in footnote 34 same source as in footnote 34 web.