Pestle Analysis

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PESTLE Analysis of China 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 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.
The Chinese economy is plagued by challenges from the European economic crisis that could adversely affect its growth rate, regional disparity, and growing environmental concerns. Rapid economic development and accelerated domestic demand in China, however, offers significant opportunities for growth.
Lucintel’s study outlines China’s need to address several significant challenges and…...

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...PESTLE Analysis Strategy Skills Team FME ISBN 978-1-62620-998-5 Copyright Notice © 2013. All Rights Reserved ISBN 978-1-62620-998-5 The material contained within this electronic publication is protected under International and Federal Copyright Laws and treaties, and as such any unauthorized reprint or use of this material is strictly prohibited. You may not copy, forward, or transfer this publication or any part of it, whether in electronic or printed form, to another person, or entity. Reproduction or translation of any part of this work without the permission of the copyright holder is against the law. Your downloading and use of this eBook requires, and is an indication of, your complete acceptance of these ‘Terms of Use.’ You do not have any right to resell or give away part, or the whole, of this eBook. PESTLE Analysis Table of Contents Preface 2 Visit Our Website 3 Introduction 4 PESTLE Analysis 6 PESTLE Factors 10 Political Factors 12 Economic Factors 13 Social Factors 15 Technological Factors 16 Legal Factors 18 Environmental Factors 20 Summary 22 Other Free Resources 23 References 24 ISBN 978-1-62620-998-5 © 1 PESTLE Analysis Preface The PESTLE Analysis is a useful method to use in order to identify the external factors that......

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...PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT;[1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors. Composition * Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government...

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