PESTLE AND STEEPLED ANALYSIS

SUBMITTED TO : SUBMITTED BY:

PROFESSOR DHARMENDRA KHUSHI KABRA

 TABLE OF CONTENT

1) INTRODUCTION
2) INDIA
3) PESTLE ANALYSIS OF INDIA
4) MEXICO
5) STEEPLED ANALYSIS OF MEXICO
6) EDUCATION AND CONSULTING INDUSTRY OF INDIA
7) EDUCATION AND CONSULTING INDUSTRY OF MEXICO
8) COMPARISION BETWEEN INDIA AND MEXICO ON THE BASIS OF PESTLE
AND STEEPLED ANALYSIS
9) BIBLIOGRAPHY

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 INDIA
INTRODUCTION

India, also known as the Republic of India, is a country in South Asia. Its the seventh largest
country by area and with more than 1.3 billion people, it is the second most populous country as
well as the most populous democracy in the world. Bounded by the Indian ocean on the south,
the Arabian sea on the southwest, and the Bay of Bengal on the southeast, it shares land borders
with Pakistan to the west , China, Nepal and Bhutan to the northeast, and Bangladesh and
Myanmar to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives,
while its Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia.

Home to the urban Indus Valley Civilisation and a region of historic trade area and vast empires.
Indian subcontinent was identified with its commercial and cultural wealth for much of its long
history. Four major religions they are Hinduism, Buddhism, Jainism and Sikhism. Originated
country, while the Zoroastrianism, Judaism, Christianity and Islam arrived in the first
millennium of CE and shaped the region’s diverse culture . The British East India Company from
the early eighteenth century and colonised by the United Kingdom from the mid Nineteenth CE,
India became and Independent nation in 1947 after a struggle for Independence that was marked
by wide spread non- violent resistance

India is a republic consisting of 28 states and 7 union territories with a parliamentary system of
democracy. It has the world’s 12th largest economy at market exchange rates and the fourth
largest in purchasing power. Economic reforms since 1991 have transformed it in one of the
fastest growing economies; however it still suffers from high levels of poverty, illiteracy, disease
and malnutrition. A pluralistic, multilingual and multiethnic society.

INDIA AT GLANCE

1. POPULATION : 1,150,000,000(1.5 billion)

2. AREA: 3.3 million square kilometres
3. COASTLINE LENGTH : 7600 km

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 4. LANGUAGES: 17 major languages, 844 dialects
5. RELIGION : Hinduism, Islam, Buddhism, Christianity, Sikhism, Jainism
6. NATIONAL ANTHEM : Jana Gana Mana by Rabindranath Tagore
7. NATIONAL SONG : Vande Mataram, composed by Bankimchandra Chatterji
8. NATIONAL EMBLEM : Replica of Lion Capital of Sarnath
9. NATIONAL ANIMAL : Tiger (Panther Tiger)
10. NATIONAL BIRD : Peacock
11. NATIONAL FLOWER : Lotus
12. NATIONAL TREE : Banyan
13. NATIONAL FRUIT : Mango
14. NATIONAL CURRENCY : Rupee (One Rupee = 100 paisa)
15. NATIONAL SPORT : Hockey

PESTLE ANALYSIS IN BUSINESS ENVIRONMENT

In business PESTLE analysis role is very important. Originally designed as a business

environmental scan, the PESTLE analysis is an analysis of the external macro environment in
which a business operates. These are factors which are beyond the control or influence of a
business, however are important to be aware of when doing product development , business or
strategy planning

PESTLE means :
P : POLITICAL
E: ECONOMICAL
S: SOCIAL
T: TECHNOLOGICAL
L: LEGAL
E: ENVIRONMENTAL

The PESTLE subject should be a clear definition of the market being addressed, this is
the following :-
 A company looking at its market

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  A product looking at its market
 A brand in relation to its market
 A local business unit or function in a business
 A strategic option, such as entering a new market
 A potential acquisition
 A potential partnership
 A investment opportunity

PESTLE FACTORS IN INDIA :

POLITICAL

These refer to government policy such as the degree of intervention in the economy, What goods
and services does a government want to provide ? To what extent does it believe in subsidising
firms? What are its priorities in terms of business support? Political decisions can impact on
many vital areas for business such as the education of the workforce, the health of the nation and
the quality of the infrastructure of the economy such as the road and rail system

India is the biggest democracy in the world. The government type is federal republic. Based on
English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction
with reservations, separate personal law codes to apply to Muslims, Christians and Hindus. The
political situations in India is more or less stable. Most of its democratic history, the federal
government of India has been led by the Indian National Congress (INC). State politics
dominated by several national parties including INC. The Bhartiya Janata Party(BJP), the
Communist Party of India (CPI) and various regional parties. In 2009 Indian elections, the INC
won the biggest number of Lok Sabha seats and formed a government with a alliance called the
United Progressive Alliance (UPA) , supported by various left- leaning parties and the members
opposed to the BJP. Overall India currently has a coalition led government and both major
political parties the UPA and BJP, whichever comes in power.

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It comprises political stability and the policies of the government. Ideological inclination of
political parties, personal interest on politicians, influence of the party forums etc. create political
environment. For example , Bangalore established itself as the most important IT centre of India
mainly because of political support.

In India many political factors affect the business environment. Political pressures in
ruling government and vote bank problems. These are the major factors which affect the
political environment :-

i. TAXATION POLICY-
India has a well developed tax structure, comprising the Union Government, the State
Governments and the Urban and Rural Local Bodies. The power to levy taxes and duties
are distributed among the three tiers of Governments , in accordance with the provisions
of the Indian Constitution. The main duties that the Union Government is empowered to
levy are income tax, custom tax, central excise, sales tax and service tax. The principle
taxes levied by the State Governments are sales, stamp duty, state excise, land revenue
and duty on entertainment and tax on professions and callings. The Local Bodies are
empowered to levy tax on properties, octroi tax on markets.

ii. PRIVATISATION –
Reduce the political interface in the management of enterprises, leading to improved
efficiency and productivity. In the beginning government company do not face the
problem but after sometime they start facing problems so they opt for privatisation.

iii. DEREGULATION-
Indian government makes some act through which one can perform business freely.

iv. INTERNATIONAL TRADE REGULATIONS-

International Trade Regulations makes easy and smooth functioning of foreign trade in
India.

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 v. INTERNATIONAL STABILITY-
If there is no stability in the country, it would lead to uncertainty in the market.

ECONOMICAL

It includes interest rates, taxation changes, economic growth, inflation and exchange rates.
Economic change can have a major impact on a firm’s behaviour. For example:

 Higher interest rates may deter investment because it costs more to borrow
 A strong currency may take exporting more difficult because it may raise the
price in terms of foreign currency
 Because to inflation it may provoke employees to demand high wages and salaries
 Higher national income growth may boost demand for a firm’s product.

In order to solve economic problems of our country, the government took several steps including
certain industries which are controlled by the State, central planning , reduced the importance of
private sector etc. The main objectives of India’s development plans were

 Initiate rapid economic growth to raise the standard of living, reduce unemployment and
poverty
 Become self reliant and set up a strong industrial base.
 Reduce inequalities of income and wealth.
 Adopt a socialist pattern of development

The economy factors in India are improving continuously. The GDP is estimated at about 3.965
trillion U.S dollars in the year 2009. The GDP real growth rate in 2009 was 6%. India has the
third highest GDP in terms of purchasing power parity just ahead of Japan and behind U.S and
China. Foreign investment rose in the fiscal year ended September 2009 to about US $10.532
billion. There is a continuous growth in per capita income; India’s per capita income is expected
to reach Rs 33283 by the end of 2009-2010. This will lead to higher buying power in the hands
of the Indian consumers. India GDP is now 6.5.Today India reserve US dollar in good condition

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Indian economy is strong, we can see that recession in our country affect less than western
countries. These following factors are

 Interest rates
 Money supply
 Credit control
 Financial markets
 Inflation
 Competitors pricing
 Globalization

SOCIAL

Changes in social trends can impact the demand for a firm’s product and the availability and
willingness of individuals to work. In India the population has been ageing. This has increased
the costs for the firms who are committed to pensions payments. It also means some firms have
started to recruit older employees to tap into the growing labour pool.

It describes the characteristics of the society in which the organization exists. Literacy rates,
customs, values, beliefs, lifestyle, demographic features and mobility of population are part of
the social environment. It is important for managers to notice the direction in which the society is
moving and formulate progressive policies according to the changing social scenario.

India is the second most populous nation in the world with an approximate population of over
1.1 billion people. This population is divided in the following age structure :0- 14 years – 31.8%,
15-64 years – 63.1% and 65 and above – 5.1% . There has a :-

 Mobility
 Income distribution
 Population demographics
 Attitude to work and leisure
 Standard of education and skills

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TECHNOLOGICAL

New technologies create new products and new processes. MP3 players, computers games ,
online gambling and high definition TVs are all new markets created by technological advances.
Online shopping, bar coding and computer aided design are all improvements to the way we do
business as a result of better technology. Technology can reduce costs, improve quality and lead
to innovation. These developments can benefit consumers as well as the organisations providing
the product. Today in India 5G technology is in progress. A heavy infrastructure for bandwidth.
BSNL and Reliance have more covered city by optical fibre. India may have many technological
projects. Good service provider in IT sector ex TCS, Infosys and many more. Today India is a
big market in mobile sector here 5-6 player operators and new operators launch their services
soon

 IT Development
 New Material and processes
 Government technology funding
 Speed of technology transfer
 Software upgrades

LEGAL

These are related to the legal environment in which firms operate. In recent years in the India
there have been many significant legal changes that have affected firms’ behaviour. The
introduction of discrimination and disability legislation, an increase in the minimum wage and
greater requirements for firms to recycle are examples of relatively recent laws that affect an
organisation’s actions. Legal changes can affect a firm’s costs and demand.

This consists of legislation that is passed by the parliament and state legislatures. Examples of
such legislation specifically aimed at business operations include the Trade mark Act, 1969,
Essential Commodities Act 1955, Standards of Weights and Measures Act 1969 and Consumer
Protection Act.

In India there are many laws, regulations and legislations. For example:-

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  Employment law
 Trade and product restrictions
 Health and safety regulation
 EU and international laws
 Monopolies commission

ENVIRONMENTAL

Environmental factors include the weather and climate change. Changes in temperature can
impact on many industries including farming, tourism and insurance. With major climate
changes occurring due to global warming and with greater environmental awareness this external
factor is becoming a significant issue for firms to consider. The growing desire to protect the
environment is having an impact on many industries and the general move towards more
environmentally friendly products and processes is affecting demand patterns and creating
business opportunities.

In India we know that there are many environmental problems but the most important factors
which are necessary for the environment are biotic factors, abiotic factors and their interaction
with one another. Pollution free industrial activity i.e. is necessary condition of industrial
organization

Industrialization and urbanization have resulted in a profound deterioration of India’s air quality.
Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air
pollution , the highest number are assessed to occur in India

 Pollution problems
 Planning permissions
 Waste disposals
 Noise controls
 Environmental pressure groups

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 MEXICO

INTRODUCTION

It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to
the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of
Mexico. Covering almost 2,000,000 square kilometers (770,000 sq mi), the nation is the fifth
largest country in the Americas by total area and the 13th largest independent state in the world.
With an estimated population of over 120 million people, the country is the eleventh most
populous state and the most populous Spanish-speaking state in the world, while being the
second most populous nation in Latin America after Brazil. Mexico is a federation comprising 31
states and Mexico City, a special federal entity that is also the capital city and its most populous
city. Other metropolises in the state include Guadalajara, Monterrey, Puebla, Toluca, Tijuana and
León.

Mexico has the 15th largest nominal GDP and the 11th largest by purchasing power parity. The
Mexican economy is strongly linked to those of its 1994 North American Free Trade Agreement
(NAFTA) partners, especially the United States. In 1994, Mexico became the first Latin
American member of the Organization for Economic Co-operation and Development (OECD). It
is classified as an upper-middle income country by the World Bank and a newly industrialized
country by several analysts. The country is considered both a regional power and a culture and
history, Mexico ranks first in the Americas and seventh in the world for number of UNESCO
World Heritage Sites Mexico is an ecologically mega diverse country, ranking fourth in the
world for its biodiversity. Mexico receives a huge number of tourists every year: in 2018, it was
the sixth most-visited country in the world, with 39 million international arrivals. Mexico is a
member of the United Nations (UN), the World Trade Organization (WTO), the G8+5,the G20,
the Uniting for Consensus group of the UN, and the Pacific Alliance trade bloc

STEEPLED ANALYSIS
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Steepled analysis is one variant of the very popular and simple strategic management method for
analysis of external environment of the organisation. Its based on the PESTLE analysis method,
with addition of additional Ethical and Demographic factors. It has other variants , which only
have different order of factors : SLEPT analysis, PESTLE analysis and PESTEL analysis.

S: Social

T: Technological

E: Economic

E: Environmental

P: Political

L: Legal

E: Ethical

D: Demographic

SOCIAL

Social section enables understanding of customer demographics through income distribution,

rural-urban segmentation and centre’s of affluence, healthcare and educational scenario.

Mexico is the most populous Spanish-speaking country in the world and the second most-
populous country in Latin America after Portuguese-speaking Brazil. About 76% of the people
live in urban areas. Many Mexicans emigrate from rural areas that lack job opportunities–such as
the underdeveloped southern states and the crowded central plateau–to the industrialized urban
centers and the developing areas along the U.S.-Mexico border. According to some estimates,
the population of the area around Mexico City is nearly 22 million, which would make it the
largest concentration of population in the Western Hemisphere. Cities bordering on the United
States–such as Tijuana and Ciudad Juarez–and cities in the interior–such as Guadalajara,
Monterrey, and Puebla–have undergone sharp rises in population in recent years.

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The sociocultural dimensions of the environment consist of customs, lifestyles, and values that
characterize the society in which the firm operates. Socio-cultural components of the
environment influence the ability of the firm to obtain resources, make its goods and services,
and function within the society. Sociocultural factors include anything within the context of
society that has the potential to affect an organization. Population demographics, rising
educational levels, norms and values, and attitudes toward social responsibility are examples of
sociocultural variables.

Mexico has made great strides in improving access to education and literacy rates over the past
few decades. According to a 2006 World Bank report, enrollment at the primary level is nearly
universal, and more children are completing primary education. The average number of years of
schooling for the population 15 years old and over was around 8 years during the 2004-2005
school year, a marked improvement on a decade earlier–when it was 6.8 years–but low compared
with other Organization for Economic Cooperation and Development (OECD) countries.

TECHNOLOGICAL

Technological section provides strategic information on technology and telecom, technological

laws and policies, technological gaps, patents and opportunity sectors in the country.

Cooperation between the United States and Mexico along the 2,000-mile common border
includes state and local problem-solving mechanisms; transportation planning; and institutions to
address resource, environment, and health issues.

Technology can change the lifestyle and buying patterns of consumers. Recent developments in
the field of microcomputers have dramatically expanded the potential customer base and created
innumerable opportunities for businesses to engage in business via Internet. Whereas computers
were traditionally used only by large organizations to handle data processing needs, personal
computers are commonly used by smaller firms and individuals for uses not even imagined
fifteen years ago. Similarly, new developments in technology led to a reduction in prices for
computers and expanded the potential market. Lower prices allow computers to be marketed to
the general public rather than to business, scientific, and professional users-the initial market.

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Technology also changes production processes. The introduction of products based on new
technology often requires new production techniques. New production technology may alter
production processes.

There is little doubt that technology represents both potential threats and potential opportunities
for established products. Products with relatively complex or new technology are often
introduced while the technology is being refined, making it hard for firms to assess their market
potential. When ballpoint pens were first introduced, they leaked, skipped, and left large blotches
of ink on the writing surface. Fountain pen manufacturers believed that the new technology was
not a threat to existing products and did not attempt to produce ball-point pens until substantial
market share had been lost.

ECONOMICAL

GDP (official exchange rate): $1 trillion (2010 est.); $876 billion (2009); $1.088 trillion (2008).

Per capita GDP (PPP method): $13,542 (2009 est.); $14,534 (2008).

Annual real GDP growth: 4.5% (2010 est.); -6.5% (2009); 1.3% (2008); 3.3% (2007); 5.1%
(2006); 3.2% (2005).

Inflation rate: 4.6% (2010 est.); 3.57% (2009); 6.5% (2008); 3.8% (2007); 3.4% (2006); 3.3%
(2005).

Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas, timber.

Agriculture (4% of GDP): Products–corn, wheat, soybeans, rice, beans, cotton, coffee, fruit,
tomatoes, beef, poultry, dairy products, wood products.

Industry (31% of GDP): Types–food and beverages, tobacco, chemicals, iron and steel,
petroleum, mining, textiles, clothing, motor vehicles, consumer durables.

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Services (64% of GDP): Types–commerce and tourism, financial services, transportation and
communications.

Trade (goods): Exports (2009)–$230 billion f.o.b. Imports (2009)–$234 billion f.o.b. Exports to
U.S. (2009)–$185 billion (80% of total). Imports from U.S. (2009)–$112 billion (48% of total).
Major markets–U.S., EU (5% of total), Canada (3.6% of total).

Economic section deals with the economic story of a country that provides a balanced
assessment of significant macro-economic issues.

Economic factors refer to the character and direction of the economic system within which the
firm operates. Economic factors include the balance of payments, the state of the business cycle,
the distribution of income within the population, and governmental monetary and fiscal policies.
The impact of economic factors may also differ between industries.

Foreign direct investment (FDI) in Mexico for 2009 was $14.4 billion, down 51% from the
previous year. The Mexican Government estimate of FDI for 2010 is $15 billion to $20 billion.

Mexico is classified by the World Bank as an upper-middle-income country. Poverty is

widespread around 44% of the population lives below the poverty line and high rates of
economic growth are needed to create legitimate economic opportunities for new entrants to the
work force. The Mexican economy in 2009 experienced its deepest recession since the 1930s.
Gross domestic product (GDP) contracted by 6.5%, driven by weaker exports to the United
States; lower remittances and investment from abroad; a decline in oil revenues; and the impact
of H1N1 influenza on tourism.

Mexico is a major recipient of remittances, sent mostly from Mexicans in the United States.
Remittances average around U.S. $21 billion per year, and are the country’s second-largest
source of foreign currency, after oil. Most remittances are used for immediate consumption–
food, housing, health care, education–but some collective remittances, sent from a U.S.
community of migrants to their community of origin, are used for shared projects and
infrastructure improvements.

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Mexico has grown with an annual average rate of 4%, even with the changes from an inward-
looking developing economic strategy towards a more open economy with a far-reaching trade
liberalization program.

Mexico is the United States second-largest export market and third-largest trading partner. Top
U.S. exports to Mexico include electronic equipment, motor vehicle parts, and chemicals. Trade
matters are generally settled through direct negotiations between the two countries or addressed
via World Trade Organization (WTO) or North American Free Trade Agreement (NAFTA)
formal dispute settlement procedures. The most significant areas of friction involve agricultural
products as well as cross-border trucking. Mexico is an active and constructive member of the
World Trade Organization, the G-20, and the Organization for Economic Cooperation and
Development. The Mexican Government and many businesses support a Free Trade Area of the
Americas.

ENVIRONMENTAL

Environmental section provides information on the country’s performance on environmental

indicators and policies. Mexico have a history of cooperation on environmental and natural
resource issues, particularly in the border area, where there are serious environmental problems
caused by rapid population growth, urbanization, and industrialization.

There have been several studies of the relationships between environmental factors, particularly
air pollution, and attacks of asthma. Most of these studies have ignored the potential confounding
effects of aeroallergens such as pollens and fungal spores. We report a statistical analysis of the
relationships between emergency admissions for asthma to a hospital in Mexico City and daily
average airborne concentrations of pollen, fungal spores, air pollutants (O3, NO2, SO2, and
particulates) and weather factors. Asthma admissions had a seasonal pattern with more during
the wet season (May-October) than the dry season (November-April). There were few statistical
associations between asthma admissions and air pollutants for the three age groups studied
(children under 15 years, adults, and seniors [adults over 59 years]) in either season. Grass pollen
was associated with child and adult admissions for both the wet and dry seasons, and fungal

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spores were associated with child admissions during both the wet and dry seasons. The analysis
was done with environmental data averaged over the day of admission and the 2 previous days.
Our results suggest that aeroallergens may be statistically associated more strongly with asthma
hospital admissions than air pollutants and may act as confounding factors in epidemiologic
studies.

POLITICAL

Political section provides understanding about the political system and key figures relevant to
business in the country and governance indicators. Here “The government” as referring to the
federal government. It is the federal government that passes and enforces legislation concerning
the entire country. Actions by the federal government affect a large number of firms and are
consistent across state boundaries. Environmental analysis, however, should not overlook actions
by both state and local governments.

Regulations concerning many business practices differ between states. Tax rates vary widely.
Laws regarding unionization (e.g., right-to-work states) and treatment of homosexual workers
differ between states.

Local governments have the potential to affect business practices significantly. Some local
governments may be willing to provide incentives to attract business to the area. Some may build
industrial parks, service roads, and provide low-interest bonds to encourage a desirable business
to move into the community.

Poverty in Mexico is caused by individual, geographic and political factors. Main cause of
poverty is due to political economy of the country. The International Monetary Fund and World
Bank-prescribed structural adjustment policies have been applied in Mexico because the
government doesn’t carry out enough policies to encourage successful development. They
cannot, for these international institutions lend money to Mexico on the condition that the nation
open up its economy and cut social expenditures to repay the loans. The IMF and World Bank
programs are supposed to reduce poverty, but actually they are increasing it. Therefore, Mexico

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needs a new political economy designed by Mexican economists and politicians, people who are
committed to Mexico and to the future of its society.WTO Membership of trading partners
increases the political costs of supplying administered protection.

LEGAL

Legal section provides information about the legal structure, corporate laws, laws to start a new
business and the tax regime. Legal dimension of the general environment also affects business
activity. The philosophy of the political parties in power influences business practices. The legal
environment serves to define what organizations can and cannot do at a particular point in time.
The legal environment facing organizations is becoming more complex and affecting businesses
more directly. It has become increasingly difficult for businesses to take action without
encountering a law, regulation, or legal problem. A very brief listing of significant laws that
affect business would include legislation in the areas of consumerism, employee relations, the
environment, and competitive practices.

Many of the laws also have an associated regulatory agency. Powerful U.S. regulatory agencies
include the Environmental Protection Agency (EPA), the Occupational Safety and Health
Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), and the
Securities and Exchange Commission (SEC).

The 1917 constitution provides for a federal republic with powers separated into independent
executive, legislative, and judicial branches. The president is elected by universal adult suffrage
for a 6-year term and may not hold office a second time. There is no vice president; in the event
of the removal or death of the president, a provisional president is elected by the Congress. The
Congress is comprised of a Senate and a Chamber of Deputies. Consecutive re-election are
prohibited in this economy. Senators are elected to 6-year terms, and deputies serve 3-year terms.
The Senate’s 128 seats are filled by a mixture of direct-election and proportional representation.
Supreme Court justices are appointed by the president and approved by the Senate.

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Estimates of the cost of compliance vary widely, but could well exceed $100 billion annually.
Many of these costs are passed to consumers. However, costs of legal expenses and settlements
may not be incurred for years and are not likely to be paid by consumers of the product or
owners of the company when the violation occurred. Still, potential legal action often results in
higher prices for consumers and a more conservative attitude by business executives.

ETHICAL

Mexico does not have an official religion. However, Roman Catholicism is the dominant faith
and deeply culturally pervasive. It is estimated over 80% of the population identifies as
Catholic. Many Mexicans see Catholicism as part of their identity, passed on through the family
and nation like cultural heritage. However, not all Mexicans attend church services regularly.
Religiosity is most visible in festivities, events and also the placement of idols throughout
people’s homes and public places. While approximately 5% of the population is thought to be
unaffiliated with any religion, many non-religious Mexicans still engage in Catholic celebrations.

Mexican society is generally quite tolerant of other faiths. Indeed, adherents to different
Christian churches are growing. There are a number of Pentecostal Christians, Evangelical
Christians and Jehovah’s Witnesses. Much conversion to other variations of Christianity has
occurred in recent decades as some Mexicans have become disenchanted with the Catholic
Church, or sought a closer relationship with God. Indeed, the Pew Forum found that 44% of
current Protestants were raised Catholic (Pew Forum, 2014). Members of these minority
religions are more likely to actively proselytize. For example, 31% of Mexican Protestants
reported that they share their faith with others outside their religious group at least once a week.
The corresponding portion of Catholics who claimed to do the same was 7%.

DEMOGRAPHIC

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With a population of over 123 million in 2017, Mexico ranks as the 11th most populated country
in the world . It is the most populous Spanish-speaking country and the third-most populous in
the America after the United States and Brazil .Throughout most of the twentieth century
Mexico's population was characterized by rapid growth. Although this tendency has been
reversed and average annual population growth over the last five years was less than 1%, the
demographic transition is still in progress, and Mexico still has a large cohort of youths. The
most populous city in the country is the capital, Mexico City, with a population of 8.9 million
(2016), and its metropolitan area is also the most populated with 20.1 million (2010).
Approximately 50% of the population lives in one of the 55 large metropolitan areas in the
country. In total, about 78.84% of the population of the country lives in urban areas, meaning
that only 21.16% live in rural areas.

The Census in Mexico is the Instituto Nacional de Estadistica y Geografia (INEGI). The
National Population Council (CONAPO), is an institution under the Secretary of the Interior in
charge of the analysis and research of population dynamics. The National Commission for the
Development of Indigenous Peoples (CDI), also undertakes research and analysis of the socio
demographic and linguistic indicators of the indigenous peoples in Mexico

In 2016, Mexico's total fertility rate dropped below replacement level fertility for the first time
(i.e., less than 2.1 children born per woman).

EDUCATION AND CONSULTING INDUSTRY ANALYSIS

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EDUCATION AND CONSULTING INDUSTRY IN INDIA

EDUCATION INDUSTRY

India holds an important place in the global education industry. India has one of the
largest networks of higher education institutions in the world. However, there is a lot of
potential for further development in the education system. Moreover, the aim of the
government to raise the current gross enrolment ratio to 30% by 2020 will also boost the
growth of the distance education in India.

India’s education sector offers a great opportunity with approximately 29% of India’s
population being between the age group of 0-14 years. India’s higher education segment
is expected to increase to US $ 35.03 billion by 2025. The education sector in India is
estimated at US $ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in
FY19. The Indian literacy rate is 74.4%

Despite the lower share of adults with tertiary education, India has a relatively balanced
gender distribution across the various fields of tertiary education compared to other
partner countries, especially in fields such as education, humanities and arts, health and
welfare

In 2013, nearly half of all first time tertiary graduates in India were female.

Vocational education and training in India remains overshadowed by the emphasis on

general programmes. Fewer students than average are enrolled in vocational programmes
at the upper secondary level, although the enrolment rate for vocational programmes at
the post secondary non tertiary level is above both OECD and G20 averages. Graduation
rates from vocational programmes in India are also one of the lowest among OECD and
partner countries

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Although the share of foreign students in India is very low, many Indian students pursue
studies abroad. They make up a significant share of international students in master’s and
equivalent programmes in foreign countries.

CONSULTING INDUSTRY

BUSINESS SECTOR

Business and management consulting in India has breached $11.5 billion or Rs 73,800
crores in revenues this year, and forecasted to register continuous growth over the next
few years as per new estimates. Business consulting is a broad field , covering a spectrum
of consulting activities including finance, advisory, management, digitalization,
implementation and strategy, among others.

Having reached the $11.5 billion mark this year, the Indian business consulting market is
due to book further the growth over the next year, with Statista analysis is now
forecasting the market to rise over the $12 billion threshold. The growth is consistent
with a trend over the last few years which has seen the Indian management consulting
sector having registered an average growth rate of 6.75% since 2013.

Of the $11.5 billion market, $ 1.5 billion is contributed by the management consulting
segment, which includes the strategic functions of the market as well as a number of
other organisational advisory functions. The management segment has also registered
consistent growth over the last few years, projected to reach around the $1.7 billion mark
by next year. A number of transformational factors are responsible for this rapid
development, which includes a general wave of digitalisation, as well as the widespread
opening up the Indian economy since the establishment of the Modi administration in
early 2014. The Modi regime has been built on promises of market-liberalisation and pro-
business policies.

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Among the liberalisation policies pursued by the Modi administration, perhaps the most
influential has been the significant increase in Foreign Direct Investments (FDI) the
country. The opportunity for Multinational Cooperation’s (MNCs) to invest in the
Indian market simultaneously opened up opportunities for strategic and financial advisory
firms to help them integrate into the market efficiently, thereby boosting growth in the
consulting industry. Both local as well as international consulting firms have benefitted
from the expansion, as local firms provide assistance to MNCs in India while large
international advisories help Indian firms integrate with the international market.

According to analysis from Source Global Research, meanwhile, the largest consumer of
consulting services is the financial service industry, at 30% of the total amount.
Technology , media and telecoms (TMT) comprise 9% of the sectors seeking consulting
services, while pharmaceuticals and biotech represent 3% of the consumers. On the other
hand, the largest provider of services in the market by a huge margin is the technology
consulting sector, comprising a formidable 45% of the total market size. This can be
explained by the fact that rapid digitalisation is one of the biggest drivers of growth in the
Indian market.

EDUCATION AND CONSULTING INDUSTRY IN MEXICO

EDUCATIONAL INDUSTRY

Since enacting a constitutional change defining the right to education in 2013, mexico
has been working to implement sector reforms to enhance the national school system. As
the domestic economy is primarily focused on technical export manufacturing, the
reforms aim to strengthen the primary and secondary education system to increase the
flow of skilled candidates to university and into the workforce. Education reform
continues taking the first basic steps towards advances to modernise curricula and reduce
bureaucratic inefficiencies. Successes include securing the long- awaited support of the
teachers’ unions for the integration of a testing system that will hold public school

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teachers to a higher standard. Experts agree, however , that continuity and support for the
reform process must be maintained if these steps are going to be reflected as a lasting
gains in the system.

Mexico is British Columbia’s seventh largest source country for international students,
with over 4000 studying here in 2013/ 14. Just over half those students are at language
schools, while about 1000 students are at post-secondary institutions and K-12
institutions play host to about 700 Mexican students, making Mexico BC’s fourth largest
source of primary and secondary school-aged students.

CONSULTING INDUSTRY

TRAINING INDUSTRY

Research and development has an important role in the development of both public and
private sector players from the Mexico. Mexico have developed a strong collaboration to
promote joint research projects to increase regional competitiveness as well as stronger
relationships between industry, government entities and educational institutions. The
mexcian government through the National Council of Science and Technology
coordinates a large number of research projects between Mexican and US institutions.

Workforce and professional training are also provided to employers. With eye global
competitiveness, employers and economic development organizations are interested in
training opportunities for the Mexican workforce. Employers in mexico seek training to
improve their business processes, reduce costs, improve the effectiveness of their
workforce, innovate, and strengthen their relationship with clients. Customized training
in IT technologies, quality control, management and language programs are high in
demand. In addition to traditional training methods, Mexico is investing in technology
and opening the market for online or blended courses.

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 BUISNESS INDUSTRY

Mexico has developed into a high-value-added exporting powerhouse to the United States. It has
passed structural reforms geared to encourage competition and attract investments at a time,
when most countries are shying away from private investment and liberalization, and it has
stable fiscal and macroeconomic management.

Because of this differentiation, Mexico’s equity market has been able to outperform broader
Latin America as well as emerging markets overall (as measured by MSCI indexes) in the past
one, three and five-year periods.

Currently, we are seeing opportunities in the export sector. The car industry is a good example;
Mexico is the seventh-largest car manufacturer in the world and the largest supplier of car parts
to the US.

We also see bargains in the mining sector. While it has been out of favor in recent years, we have
been able to find cost-competitive companies in Mexico with solid balance sheets that appear
well-positioned to potentially benefit when the cycle turns.

Within Mexico, we are also finding opportunities in the banking and financial services sectors.
Overall loan penetration in Mexico currently stands among the lowest in all of Latin America,
and we believe financial services companies should do well as new industries such as energy and
oil are listed and monetized in the equity market.

The Mexican peso is one of the most liquid currencies in the world and in emerging markets. A
large derivatives market also drives currency prices. The peso has historically been correlated
with oil prices because of Mexico’s oil assets and the government’s dependence on them for tax
revenues.

The government is currently working on the rules governing the Mexican equivalent of a US
master limited partnership that will be used to list energy assets from Pemex and private parties.
We believe all of these developments are likely to lead to an increase in foreign direct
investment.

Telecommunications has been another key area of reform, which has encouraged competition
with the creation of an independent regulator. Telecommunications prices have dramatically
declined since the reform’s implementation, translating into a direct saving to consumers.

The Mexican economy has been improving in a number of areas. Consumption has been strong,
and the government has been proactive in announcing cuts as well as relying more on private
investment to finance projects. Short-term market jitters aside, the US economy still looks
strong, which should help Mexico going forward and make it an attractive place to invest.

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 COMPARISON BETWEEN INDIA AND MEXICO IN THE
FORM OF PESTEL AND STEEOLED ANALYSIS
1. Indian revenues stats are $172.10 billion and it is ranked 23th position, whereas,

Mexico revenue stats are $266.90 billion and it is ranked 18th position

2. India’s public debt, share of GDP is 49.6 CIA ranked 64th position and

Mexico’s public debt , share of GDP is 35.4CIA and is ranked at 88th position .

3. In India CO2 emissions per 1000 stats is 0.922 and ranked 112th position , whereas,

Mexico’s CO2 emissions per 100 stats is 3.56 and ranked 66th position .

4. Current issues in India regarding environment are deforestation, soil erosion, overgazing,
desertification, air pollution from industrial effluents and vehicle emissions, huge and
growing population is overstraining the natural resources

Current issues in Mexico regarding environment are scarcity of hazardous waste disposal
facilities, rural to urban migration, natural fresh water resources scarce and polluted in
north

5. Average years of schooling of adults in india is 5.1 and ranked 65th , whereas,

Average schooling of adults in Mexico is 7.2 and ranked 35th

6. Children out of school, primary in India were 1.39 million and was ranked 4th , whereas ,

Children out of school, primary in Mexico were 405,347 and ranked 18th

7. Compulsory education duration in india is till 9th standard, whereas,

Compulsory education duration in Mexico is till 11th standard

8. India’s per capita income is 6.29 per million people and ranked 45th , whereas,

Mexico’s per capita income is 5.2 per 1 million people and ranked 46th

9. Current US$ in India is $447.81 billion and ranked 4th, whereas , Current US$ in Mexico
is $407.82 billion and ranked 7th.

BIBLIOGRAPHY

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www.nationsmaster.com

www.thenational.ae.com

www.export.govt

bccie.bc.ca

oxfordbusinessgroup.com

www.ukessays.com

www.consultancy.in

www.oecdlibrary.com

www.ibef.org

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