PESTEL Analysis of Germany

Presented By: Bishal Paul

Scholar I.D:18-50-125
MBA 2ND SEM.
Germany
• Officially known as “Federal Republic of Germany”
• Consists of 16 sates, with Berlin as capital city.
• Covers an area of 357,386 square kilometers.
• Estimated population of 83 million.
• Worlds fourth largest economy by nominal GDP.
• Worlds fifth largest by purchasing power parity.
• World's third-largest exporter and importer of goods.
• World's oldest universal health care system.
• Member of the United Nations, NATO, the G7, the
G20, the OECD and the Council of Europe.
Germany
 The Executives

President: Frank-Walter Chancellor: Angela Merkel

Steinmeier
• 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
 th
• Germany has a social market economy.
• Germany has the 4th largest economy of the world
and has the 5th largest PPP
• GDP of $4.117 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.
• Around 2/3 rdof the world's Sector wise
leading trade fairs take place contribution to GDP
in Germany.
• Leading exporter of Agricultu
machinery, vehicles, chemicals re
1%
and
Industry
House hold equipment. 29%

• Banking and insurance are

Service
a pillar of the service sector. 70%

• Important industrial sector are

automotive manufacture,
mechanical and electrical
Engineering and chemicals.
• 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
• There are 240 subsidised theatres, hundreds of
symphonic orchestras, thousands of museums
and over 25,000 libraries spread in Germany.
• Germans are just argumentative.
• Passionate about lifestyle and politics.
• Corporate Culture:
− Make appointments for meetings in advance −
Dress formally in dark, conservative suits
− Rank is very important in business
• Greatest strength is its automobile industry. Being
3rdlargest 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
• World-class basic science in fields ranging from
materials science to biomedicine.
Resources:
• 107 cu kmof renewable water resources (86% are
used for industrial purposes)
• 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
• Air pollution resulting from industries & Emissions
from coal-burning utilities.
• Acid rain is damaging forests.
• Pollution in the Baltic Sea from raw sewage and
industrial effluents.
• 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.