· Germany PESTLE : ·      The Federal Republic of Germany consists of 16 states covering 357,021 square kilometers. The population is 81.8 million inhabitants. Germany is among the leading political powers of Europe. In some fields, it is also deemed as the technological leader. ·      Germany has the 4th largest economy in the world.  It is the 2nd largest exporter and 3rd largest importer. ·      POLITICAL FACTORS ·      Germany is a democratic republic. The political system functions under a system called Grundgesetz which was published in the 1949 constitutional document. The Social Democratic Party and the Christian Democratic Union leads the political system since 1949.   ·      https://www.marketingtutor.net/pestle-analysis-of-germany/  a.    A global corruption index: Germany scored 80 points out of 100 on the 2018 Corruption Perceptions Index reported by Transparency International. Corruption Index in Germany averaged 79.35 Points from 1995 until 2018, reaching an all time high of 82.70 Points in 1996 and a record low of 73 Points in 2002. b.    A human rights index: Human rights in Germany enjoy a high level of protection, both in theory and in practice, and are enshrined in the Grundgesetz. ECONOMIC FACTORS Germany is the 4th largest economy in the world. With nominal GDP forecasts for 2019 set to the tune of $4.2 trillion, the country looks set for robust economic growth. However, a GDP decline in late 2018, coupled with shaky industrial growth, has left a shadow on the economic horizon of the nation. Germany boasts a low unemployment rate of 3.2%, which is arguably one of the lowest worldwide. One of the top exporters in the world, Germany has a mixed economy with a budgetary surplus. And although the recent refugee crisis has left the country shaken, but with a strong economic foundation, Germany looks set to remain an established economic power. Germany has comparatively low raw materials. It only has potash and lignite in a significant amount. The power plants which burn lignite are among the main sources of electricity for Germans. Popular global brands are BMW, Mercedes Benz, Adidas, Porsche, Audi, DHL, Volkswagen, T-Mobile, Lufthansa, Nivea, and SAP. Between the years 1991 and 2010, local firms took part in 301 acquisitions and 40 mergers. Most products are in engineering. Automobiles, metals, machinery and chemical goods are some items they are proud of. German cities like Berlin, Frankfurt and Hanover hold the largest annual international trade fairs. https://www.marketingtutor.net/pestle-analysis-of-germany/ a. GNI per capita (as a proxy for income) This page provides the latest reported value for - Germany Gross National Income - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany Gross National Income - actual data, historical chart and calendar of releases - was last updated on October of 2019. Actual Previous Highest ...

1. · Germany PESTLE :
· The Federal Republic of Germany consists of 16 states
covering 357,021 square kilometers. The population is 81.8
million inhabitants. Germany is among the leading political
powers of Europe. In some fields, it is also deemed as the
technological leader.
· Germany has the 4th largest economy in the world. It is
the 2nd largest exporter and 3rd largest importer.
· POLITICAL FACTORS
· Germany is a democratic republic. The political system
functions under a system called Grundgesetz which was
published in the 1949 constitutional document. The Social
Democratic Party and the Christian Democratic Union leads the
political system since 1949.
· https://www.marketingtutor.net/pestle-analysis-of-
germany/
a. A global corruption index: Germany scored 80 points out
of 100 on the 2018 Corruption Perceptions Index reported by
Transparency International. Corruption Index in Germany
averaged 79.35 Points from 1995 until 2018, reaching an all
time high of 82.70 Points in 1996 and a record low of 73 Points
in 2002.
b. A human rights index: Human rights in Germany enjoy a
high level of protection, both in theory and in practice, and are
enshrined in the Grundgesetz.
ECONOMIC FACTORS
Germany is the 4th largest economy in the world. With nominal
GDP forecasts for 2019 set to the tune of $4.2 trillion, the
country looks set for robust economic growth. However, a GDP
decline in late 2018, coupled with shaky industrial growth, has
left a shadow on the economic horizon of the nation.
Germany boasts a low unemployment rate of 3.2%, which is

2. arguably one of the lowest worldwide. One of the top exporters
in the world, Germany has a mixed economy with a budgetary
surplus. And although the recent refugee crisis has left the
country shaken, but with a strong economic foundation,
Germany looks set to remain an established economic power.
Germany has comparatively low raw materials. It only has
potash and lignite in a significant amount. The power plants
which burn lignite are among the main sources of electricity for
Germans.
Popular global brands are BMW, Mercedes Benz, Adidas,
Porsche, Audi, DHL, Volkswagen, T-Mobile, Lufthansa, Nivea,
and SAP. Between the years 1991 and 2010, local firms took
part in 301 acquisitions and 40 mergers. Most products are in
engineering. Automobiles, metals, machinery and chemical
goods are some items they are proud of. German cities like
Berlin, Frankfurt and Hanover hold the largest annual
international trade fairs.
https://www.marketingtutor.net/pestle-analysis-of-germany/
a. GNI per capita (as a proxy for income)
This page provides the latest reported value for - Germany
Gross National Income - plus previous releases, historical high
and low, short-term forecast and long-term prediction, economic
calendar, survey consensus and news. Germany Gross National
Income - actual data, historical chart and calendar of releases -
was last updated on October of 2019.
Actual
Previous
Highest
Lowest
Dates
Unit
Frequency

3. 878.52
874.74
878.52
390.99
1991 - 2019
EUR Billion
Quarterly
Current Prices, SA
b. GDP ranking (as a proxy for market size):
Rank
Country/Economy
GDP (Nominal) (billions of $)
Growth (%)
GDP per capita (Nominal) ($)
Continent
2019
% Share
diff
2023
Rank
2019
Rank
1
United States
21,482.41
24.4
-
24,671

4. 1
2.54
65,062
8
North America
2
China
14,172.20
16.1
7310
19,581
2
6.18
10,099
72
Asia
3
Japan
5,220.57
5.93
8952
5,908
3
0.94
41,418
26
Asia
4
Germany
4,117.07
4.67
1104
4,937
4
1.86
49,692

5. 18
Europe
c. GDP growth rate and direction:
The German economy contracted a seasonally-adjusted 0.1
percent on quarter in the three months to June 2019, unrevised
from the preliminary estimate and following a 0.4 percent
growth in the previous period. Net external demand contributed
negatively to the GDP as exports fell faster than imports, while
investment in construction declined markedly. GDP Growth
Rate in Germany averaged 0.51 percent from 1970 until 2019,
reaching an all time high of 4 percent in the second quarter of
1970 and a record low of -4.70 percent in the first quarter of
2009.
d. GINI or other indicator of income inequality/size of
middle class:
The Gini coefficient refers to the way money is distributed
across a nation, state, or whatever geographic region is in
question. The reason for the Gini coefficient in the first place is
for use of proof that there is significant wealth inequality.
Before we dive into the different Gini coefficients for countries
around the world, let's first talk about what the coefficients
mean Germany 31.4%
SOCIO–CULTURAL FACTORS
Like I mentioned above, Germany has around 82 million
residents. This means it is the largest EU country in terms of
population. I would describe it as a modern, multicultural
country. The society is molded by a variety of lifestyles. There
are traces of some truly different ethnocultural diversity. Even
though a lot of social changes took place, the family is still the
most important social reference unit. Young people have really

6. good relationships with their parents.
Local architecture, music, literature, art and sports are fields
which reflect the socio-cultural scene of Germany. The unique
architectural styles of the country are the result of the
fragmentation during centuries. Some mentionable sites include
the Abbey Church of St. Michaels, the Speyer Cathedral, and
the Cologne Cathedral. Germany has been home to many
renowned classical music composers like Ludwig van
Beethoven, Johannes Brahms, Johann Sebastian Bach and
Richard Wagner. It is flourishing in the music market.
German literature dates back to the Middle Ages. It is world
famous. Popular local authors include Johann Wolfgang von
Goethe, Friedrich Schiller, Bertolt Brecht, Thomas Mann, and
Hermann Hesse. Every year, the Frankfurt Book Fair, which is
the biggest book fair ever, is held.
Some of the best art pieces were made in Germany. It is also
popular for its old tradition in visual arts. Awesome German
innovations include printmaking, Gothic art, and wooden
engravings. Some of the Major renaissance artists like Hans
Holbein the Younger and Matthias Grunewald were from
Germany.
Many international sporting events have represented Germany
in the past. This includes FIFA World Cup, Formula One,
Summer Olympics, ice hockey and tennis tournaments. It is
among the leading motor sports countries. It manufactures
motor brands like BMW and Mercedes.
a. Population size in 2010 :
Population mid-2010
82 million
b. Significant demographic trends (aging, migration,
urbanization)
Almost 19 million people in the country come from migratory
backgrounds.

7. c. Cultural evaluation based on Hofstede, Trompenaars, or
other
POWER DISTANCE: This dimension deals with the fact that all
individuals in societies are not equal – it expresses the attitude
of the culture towards these inequalities amongst us. Power
Distance is defined as the extent to which the less powerful
members of institutions and organisations within a country
expect and accept that power is distributed unequally.
INDIVIDUALISM: he fundamental issue addressed by this
dimension is the degree of interdependence a society maintains
among its members. It has to do with whether people´s self-
image is defined in terms of “I” or “We”. In Individualist
societies people are supposed to look after themselves and their
direct family only. In Collectivist societies people belong to ‘in
groups’ that take care of them in exchange for loyalty.
MASCULINITY: A high score (Masculine) on this dimension
indicates that the society will be driven by competition,
achievement and success, with success being defined by the
winner / best in field – a value system that starts in school and
continues throughout organisational life.
A low score (Feminine) on the dimension means that the
dominant values in society are caring for others and quality of
life. A Feminine society is one where quality of life is the sign
of success and standing out from the crowd is not admirable.
The fundamental issue here is what motivates people, wanting
to be the best (Masculine) or liking what you do (Feminine).
UNCERTAINTY AVOIDANCE: The dimension Uncertainty
Avoidance has to do with the way that a society deals with the
fact that the future can never be known: should we try to control
the future or just let it happen? This ambiguity brings with it
anxiety and different cultures have learnt to deal with this
anxiety in different ways. The extent to which the members of a
culture feel threatened by ambiguous or unknown situations and

8. have created beliefs and institutions that try to avoid these is
reflected in the score on Uncertainty Avoidance.
LONG TERM ORIENTATION: This dimension describes how
every society has to maintain some links with its own past while
dealing with the challenges of the present and future, and
societies prioritise these two existential goals differently.
Normative societies. which score low on this dimension, for
example, prefer to maintain time-honoured traditions and norms
while viewing societal change with suspicion. Those with a
culture which scores high, on the other hand, take a more
pragmatic approach: they encourage thrift and efforts in modern
education as a way to prepare for the future.
Germany’s high score of 83 indicates that it is a pragmatic
country. In societies with a pragmatic orientation, people
believe that truth depends very much on situation, context and
time. They show an ability to adapt traditions easily to changed
conditions, a strong propensity to save and invest, thriftiness,
and perseverance in achieving results.
INDULGENCE
One challenge that confronts humanity, now and in
the past, is the degree to which small children are socialized.
Without socialization we do not become “human”. This
dimension is defined as the extent to which people try to control
their desires and impulses, based on the way they were raised.
Relatively weak control is called “Indulgence” and relatively
strong control is called “Restraint”. Cultures can, therefore, be
described as Indulgent or Restrained.
The low score of 40 on this dimension indicates that the German
culture is Restrained in nature. Societies with a low score in
this dimension have a tendency to cynicism and pessimism.
Also, in contrast to Indulgent societies, Restrained societies do
not put much emphasis on leisure time and control the
gratification of their desires. People with this orientation have
the perception that their actions are Restrained by social norms
and feel that indulging themselves is somewhat wrong.

9. https://www.hofstede-insights.com/country/germany/
d. Language and communication styles (Hall’s high/low
context)
Low-Context Cultures
· Association: Relationships begin and end quickly.
Productivity depends on procedures and paying attention to the
goal. The identity of individuals is rooted in themselves and
their accomplishments. Social structure is decentralized.
· Interaction: Nonverbal elements are not significant. Verbal
messages are explicit, and communication is seen as a way of
exchanging information, ideas and opinions. Disagreement is
depersonalized; the focus is on rational (not personal) solutions.
An individual can be explicit about another person’s bothersome
behavior.
· Territoriality: Space is compartmentalized. Privacy is
important, so people stand farther apart.
· Temporality: Events and tasks are scheduled and to be done at
particular times. Change is fast, and time is a commodity to be
spent or saved. One’s time is one’s own.
· Learning: One source of information is used. Thinking
proceeds from specific to general. Learning occurs by following
the explicit directions and explanations of others. Individual
orientation is preferred, and speed is valued.
e. Religion and potential influences
The majority of Germans mostly fall into two different religious
groups: Christianity and Atheism.
f. Shopping behavior and lifestyle
Germany is a multicultural country although it has a
homogenous bearing. Customs and traditions of people of
various backgrounds maintain their distinct identity and so do
foreigners residing there. German folk traditions are much alive
these days and the Germans believe in maintaining a globalised

10. outlook.
g. HDI ranking (2019)
The Human Development Index – or simply, HDI – is an index
that is used to rank countries based on human development.
Human Development Index is scored using indicators including
expectancy, per capita income, and education. Nations that rank
higher on this index have a higher level of education, a higher
lifespan, and a higher gross national income per capita than
nations with a lower score.
Germany
0.936
.
TECHNOLOGICAL FACTORS
· Germany is well known for its advancements in the field of
science and technology. One of the leading car manufacturers in
the world, the nation is home to global automobile brands such
as Mercedes, Volkswagen and BMW. Globally, Germany is
considered the 5th most technologically advanced nation, with
expertise across multiple sectors such as engineering, medicine
and infrastructure, just to name a few. The country is also a
leading nation in terms of information technology and has
already made significant advances in the fields of AI and
machine learning.
Environmental factors
The business environment is very country specific in Germany.
If a new business has to enter then it has to integrate itself with
local retailers and distributors. Unless a company understands
the local needs of the supply chain, it cannot set up its
distribution network. Lot of policies set up by Government also
need to be complied with.
a. Allowable levels of greenhouse gas emissions:
In 2007, the German government set a greenhouse gas reduction

11. target of 40 percent by 2020, compared to 1990 levels, in line
with the Intergovernmental Panel on Climate Change’s (IPCC)
recommendation for industrialised nations outlined in its Fourth
Assessment Report.
b. Regulations on recycling:
In 2009, Germany’s total recycling rate hovered at 70 percent.
For 2015, the most recent year data is available, its recycling
rate was a strong 79 percent.
Germany actually leads the EU when it comes to recycling
municipal waste, according to Eurostat data. Here are the top
five EU countries by municipal recycling rates for 2015:
· Germany: 66.1 percent
https://studymoose.com/pestle-analysis-of-germany-essay
c. Water pollution or other standards:
Water quality in Germany has been regulated by an effective
water management division. The country’s water technology and
purification processes are highly regarded internationally. The
German government implemented water protection procedures
such as water waste charges, the preservation of natural habitats
and laws to penalize water pollution.
Germany has an abundance of fresh water; 2.2 percent of the
country’s surface area is covered by 11 predominant rivers, 291
dams, and other natural lakes. Approximately 11.7 percent of
the fresh water is assigned to drinking water protection.
https://borgenproject.org/water-quality-in-germany/
d. Geographic issues or considerations:
Environmental Issues of Germany
Like many industrialized nations, Germany has a significant air
pollution problem, but unlike other Western countries it has
worsened in recent years.

12. After the Fukushima nuclear disaster of 2011, Chancellor
Angela Merkel and the German government adopted a policy of
phasing out the country’s nuclear power plants. To do so, the
government allowed for utilities to burn more coal and as a
result, the air pollution levels in 2012 and 2013 were two of the
highest since the 1980s.
Nuclear power plant in Grohnde near Hameln in
Lower Saxony, Germany.
Nuclear power plant in Grohnde near Hameln in Lower Saxony,
Germany. Image Credits: Thorsten Schier/shutterstock.com
In addition to air pollution, decades of open-cast mining in East
Germany has resulted in significant water pollution in some
rivers. During mining days, the areas around the mine were
drain of water, but now that the mines are no longer in
operation – water levels have risen and caused a brown sludge
to start filling up the Spree River, killing wildlife in the popular
tourist attraction and UNESCO biosphere reserve.
According to a 2018 pole by Statista, 36% of respondents
believed that global warming was the most important
environmental issue facing Germany today. Future energy
sources and air pollution came a close second and third with
30% and 27% respectively.
One of the largest environmental topics of discussion in 2018 is
the legal battle between Germany’s main energy provider, RWE
and BUND, a German environment non-profit trying to defend
the Hambach forest. Approximately 37% of the country’s
electricity is generated by lignite coal though the country is
attempting to replace this need with renewable energy. The
Hambach forest is 12000 years old and has been slowly

13. destroyed, leaving on 300 hectares remaining.
The mining company need to expand lignite mining into the
forest area in order to need coal energy needs of the ever-
growing populations for the coming years, however this would
mean sacrificing yet another portion of a significantly declining
forest.
Legal environment
Follow a Civil law Tradition
The legal system in Germany prescribes strict labour laws with
stringent rules against lay-offs. The law also makes it
compulsory for the business to publish financial reports even if
the business is not publicly listed. The wage standards allow the
central bargaining of wages unlike most developed countries.
a. Taxation
The Personal Income Tax Rate in Germany stands at 45 percent.
Personal Income Tax Rate in Germany averaged 48.06 percent
from 1995 until 2019, reaching an all time high of 57 percent in
1996 and a record low of 42 percent in 2005.
b. Regulations
1. It’s illegal to run out of fuel on the Autobahn
TRUE. As a motorist in Germany you have to observe a gamut
of laws. One of your obligations as a driver is to make sure to
always fill up the tank on time
2. It’s forbidden to work in an office without window
FALSE! You don’t have a right to an office with window in
Germany.
3. It’s forbidden to tune the piano at midnight
TRUE. Germans love their silence, even if it needs to be upheld
by a battery of laws, rules and regulations. For example, the

14. Federal High Court of Justice has ruled that making music or
practicing your instrument in rental apartments is only allowed
between 8:00-12:00 and 14:00-20:00.
4. It’s forbidden to keep urns at home
TRUE. The German law of Friedhofszwang (“cemetary
compulsion”) demands that any mortal remains have to be
deposited in a designated space, i.e. either on a cemetery or as
part of an official burial at sea.
5. It’s illegal to hang the laundry on Sunday
FALSE! There’s a myth floating around on the Internet that
there’s a German law which forbids the hanging of laundry on
Sundays.
7. It’s forbidden to make noise at lunchtime
FALSE! Contrary to popular opinion there is no (unified)
national law regulating the Mittagsruhe (quiet-time around
lunch).
10. It’s forbidden to wear masks in public
FALSE! It’s not generally forbidden to wear masks in public, a
good example being the Carnival.
https://learnoutlive.com/crazy-german-laws/
c. IP protection
Germany has an ample legislation regarding the protection of
intellectual property (IP). The regulations refer to copyright,
trademark, design, utility model and patent protection. An
intellectual property lawyer from our team can help investors
understand the principles of IP protection in this country and
can help with IP protection services.
All the laws have been drafted before Germany became an
European Union member state but were subsequently modified
and amended to be compatible to EU regulations regarding the
protection of intellectual property. Here are the main laws
providing the grounds for intellectual property protection in
Germany:
· - the Copyright Act (UrhG),

15. · - the Patent Act (PatG),
· - the Trademark Act (MarkenG),
· - the Utility Model Act (GebrMG),
· - the Designs Act (GeschMG),
· - the Act Against Unfair Competition (UWG).
d. Workplace safety
The German system for safety and health at the workplace has a
dual structure. It encompasses state (at Federal and Land level)
safety and health provision and the autonomous accident
insurance institutions. The state (at Federal and Land level)
enacts legislation, and promulgates regulations and the rules of
state boards. After examination of their needs, and with the
approval of the Federal and Land governments, the accident
insurance institutions release their own accident prevention
rules.
https://osha.europa.eu/en/about-eu-osha/national-focal-
points/germany
e. Worker benefits and protections
Under Regulation (EC) 593/2008 on the law applicable to
contractual obligations, employers and employees can agree on
the law that governs their employment relationship. However,
the agreed choice of law must not exclude mandatory provisions
under German law if they are more favourable to the employee
in comparison to the agreed laws. The question of which
regulations are more favourable to an employee will vary from
case to case. For example, the following German employment
laws are usually more favourable to an employee:
· Termination protection.
· Applicable collective bargaining agreements.
· Holidays.
In addition, German statutory regulations cannot be ruled out if

16. they are considered as public order law. These include
provisions on:
· Maternity pay.
· Sick pay.
· Notifications concerning mass redundancies.
· Protection of disabled employees.
· Working time.
Therefore there may be cases where the laws of a foreign
jurisdiction will apply to the employment relationship, but
German social security or tax laws can also apply.
https://uk.practicallaw.thomsonreuters.com/3-503-
3433?transitionType=Default&contextData=(sc.Default)&firstP
age=true&bhcp=1