PESTEL Analysis of Germany

PESTEL Analysis of Presented By:Atul Sande (04) Krupesh Shah (07)Vengadeshwaran P (19) Sagar Kuckian (36)

Germany

Germany Officially known as Federal Republic of GermanyConsists of 16 sates, with Berlin as capital city.Covers an area of 357,021 square kilometers.Estimated population of 80.6million.Worlds fourth largest economy by nominal GDP.Worlds fifth largest by purchasing power parity.World'sthird-largest exporterand importerof goods.World's oldestuniversal health caresystem.Member of the United Nations, NATO, the G8, the G20, the OECD and the Council of Europe.

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PESTEL Factors

Germany

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POLITICAL FactorHead of state. Duties are largely representative and ceremonial.

President: Joachim GauckHead of government and thus the executive branch of federal government.Chancellor: Angela Merkel

The Executives

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POLITICAL AnalysisThe BundestagThe lower house in the German political system.The BundesratThe upper house in the German political systemThe JudiciaryThe Federal Constitutional Court acts as guardian of the constitution.The LnderThere are 16 Lnder in the German political system

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ECONOMIC Factor Germany has a social market economy.The4th largest by nominal GDPin the world the5th largest by PPP.GDP of $3.747 trillion and GDP growth of 1.8%. Average national unemployment rate of 6.8%.Approved a 50billion economic stimulus plan to protect several sectors from a downturn37 of the fortune 500 companies are headquartered in Germany.

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ECONOMIC Factor Around 2/3rd of the world's leading trade fairs take place in Germany.Leading exporter of machinery, vehicles, chemicals, and household equipment.Banking and insurance are a pillar of the service sector.Important industrial sector are automotive manufacture, mechanical and electrical engineering and chemicals.

Sector wise contribution to GDP

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SOCIO-CULTURAL Factor Largest Religion: ChristianityPredominant language: GermanWolfgang, Amadeus, Mozart's arethree German dance forms.Famous for rye bread.National alcoholic drink is beer. Footballis the most popular sport.UNESCO inscribed 38 properties in Germany on the World Heritage List

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SOCIO-CULTURAL Factor 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 advanceDress formally in dark, conservative suitsRank is very important in business

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TECHNOLOGICAL Factor Greatest strength is its automobile industry. Being 3rd largest 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 powerWorld-class basic science in fields ranging from materials science to biomedicine.

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ENVIRONMENTAL Factor

Resources:107 cu km of renewable water resources (86% are used for industrial purposes)Relies principally on fossil fuels as sources of energy.40% energy consumption petroleum30% consumption -domestic coal deposits17% consumption natural gas10% consumption nuclear energy

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ENVIRONMENTAL Factor

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.

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LEGAL Factor

Law enforcing system at 3 levels: Federal, State & LocalLaws are passed by the BundestagInfluenced 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.

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Mercedes-Benz

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Company History

1886: Karl Benz's created the 1st petrol-powered car.1926: 1st Mercedes-Benz vehicles was produced.1952: Max Hoffman started importing the Mercedes 300SL Gullwing into the U.S1965: Founded Mercedes-Benz North America.Headquartered in Stuttgart, GermanyLeader in luxury automobiles, buses, coaches, and trucks.

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"What Drives Us"

Internal vision & mission statement of Mercedes-Benz is not publicly available. The six values that "drive" Mercedes-Benz USA are:The audacity to reject compromiseThe instinct to protect what mattersThe commitment to honor a legacyThe vision to consider every detailThe foresight to take responsibilityThe ingenuity to outperform expectations

Core Values

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Key Products

CARBICYCLETRUCKVANLIMOUSINES

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Competitors

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Key Geographies

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Market Share in America

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Performance OverviewMercedes-Benz Sales in the MarketsEurope54,904-0.8660,566+5.9- thereof Germany19,977-12.0255,238-2.2NAFTA36,560+14.9352,778+13.3- thereof USA33,007+17.3312,534+14.0Asia/Pacific41,727+23.5390,835+15.9- thereof Japan6,125+17.053,037+31.0- thereof China23,514+24.4218,045+11.1

Overview of Sales by Mercedes-Benz CarsDec2013% ChangePerDec2013% ChangeMercedes-Benz139,180+11.21,461,680+10.7smart8,805+20.0100,792-2.8Mercedes-Benz Cars147,985+11.71,562,472+9.7

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USP of Mercedes-Benz

Engineered Like No Other Car in the WorldLuxurySafetyReliabilityAftersales servicePerception of advertisement

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Financial Overview

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Ethical Practices

Observance of human rightsFree choice of employmentOstracism of child laborEqual opportunitiesFreedom of associationProhibition of corruptionHealth and safety at the workplace

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Corporate Social Responsibility

Environmentally friendly productionEnvironmentally friendly products. Product safety and quality.

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Success Story

Mercedes-Benz Vito E-CELL, the first electrically powered van in the world, and the first to make locally emission-free mobility ex factory a possibility was one of the prize winners in the "Environment" category of the Germany-wide innovation competition "365 Landmarks in the Land of Ideas".

The Vito E-CELL, a vehicle powered solely by an electric motor, won the innovation prize in the special "Alternative Drives" category

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Set Back

Daimler & Chrysler

Reason behind the failure of Merger:

Corporate CulturesCustomer propositionValue chainPeople IssuesOthers issues

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Innovation

Mercedes-Benz S-Class:

3D cameras, radar, night vision, LED headlights and taillights that adjust their brightness automatically. Cameras that act as eyes and radar sensors that act as ears, for a 360-degree view of the road..

The new S-Class is the first car in history capable of driving itself, though the cars current autonomous mode is only suited for traffic jams and highway driving

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Global Challenges

Mercedes lags in ChinaChallenge in Russia - Development of the public road system. Consolidated auto industryGovernment policies for the auto sector across the worldEver increasing fuel pricesIntense competition from global automobile brands

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