PESTLE Download Diabled!!

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

2. Germany
• Officially known as “Federal Republic of Germany”
• Consists of 16 sates, with Berlin as capital city.
• Covers an area of 357,021 square kilometers.
• Estimated population of 80.6 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 G8, the
G20, the OECD and the Council of Europe.

3. PESTEL Factors
Germany

4. POLITICAL Factor
Head of state. Duties are
largely representative and
ceremonial.
President: Joachim Gauck
Head of government and
thus the executive branch
of federal government.
Chancellor: Angela Merkel
The Executives

5. POLITICAL Analysis
• 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

6. ECONOMIC Factor
• Germany has a social market economy.
• The 4th largest by nominal GDP in the world the 5th
largest by PPP.
• GDP of $3.747 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.

7. 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
Industry
29%
Service
70%
Agricultu
re
1%

8. SOCIO-CULTURAL Factor
• 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

9. 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 advance
− Dress formally in dark, conservative suits
− Rank is very important in business

10. 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 power
• World-class basic science in fields ranging from
materials science to biomedicine.

11. 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 – petroleum
• 30% consumption -domestic coal deposits
• 17% consumption – natural gas
• 10% consumption – nuclear energy

12. 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.

13. LEGAL Factor
• 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.

14. Mercedes-Benz

15. 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.S
• 1965: Founded Mercedes-Benz North America.
• Headquartered in Stuttgart, Germany
• Leader in luxury automobiles, buses,
coaches, and trucks.

16. "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 compromise
• The instinct to protect what matters
• The commitment to honor a legacy
• The vision to consider every detail
• The foresight to take responsibility
• The ingenuity to outperform expectations
Core
Values

17. Key Products
CAR BICYCLE
TRUCK VANLIMOUSINES

18. Competitors

19. Key Geographies

20. Market Share in America

21. Performance Overview
Mercedes-Benz Sales in the Markets
Europe 54,904 -0.8 660,566 +5.9
- thereof
German
y
19,977 -12.0 255,238 -2.2
NAFTA 36,560 +14.9 352,778 +13.3
- thereof
USA
33,007 +17.3 312,534 +14.0
Asia/Pa
cific
41,727 +23.5 390,835 +15.9
- thereof
Japan
6,125 +17.0 53,037 +31.0
- thereof
China
23,514 +24.4 218,045 +11.1
Overview of Sales by Mercedes-Benz Cars
Dec
2013
%
Change
Per Dec
2013
%
Change
Mercedes-
Benz
139,180 +11.2 1,461,680 +10.7
smart
8,805
+20.0 100,792 -2.8
Mercedes-
Benz Cars
147,985 +11.7 1,562,472 +9.7

22. USP of Mercedes-Benz
• Engineered Like No Other Car in the World
• Luxury
• Safety
• Reliability
• Aftersales service
• Perception of advertisement

23. Financial Overview

24. Ethical Practices
• Observance of human rights
• Free choice of employment
• Ostracism of child labor
• Equal opportunities
• Freedom of association
• Prohibition of corruption
• Health and safety at the workplace

25. Corporate Social Responsibility
• Environmentally friendly production
• Environmentally friendly products.
• Product safety and quality.

26. 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

27. Set Back
Daimler & Chrysler
Reason behind the failure of Merger:
• Corporate Cultures
• Customer proposition
• Value chain
• People Issues
• Others issues

28. 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
car’s current autonomous
mode is only suited for
traffic jams and highway
driving

29. Global Challenges
• Mercedes lags in China
• Challenge in Russia - Development of the public road
system.
• Consolidated auto industry
• Government policies for the auto sector across the
world
• Ever increasing fuel prices
• Intense competition from global automobile brands