CIA 1 – COMPONENT 1

PESTEL & SWOT ANALYSIS -

AUSTRIA

INTERNATIONAL BUSINESS

Submitted by:
Kanika Bothra – 1820441
INTRODUCTION

The nation examination report on Austria gives a wide and useful insight to break down the
nation's presentation and plan for what's to come. The report on Austria breaks down the
political, economic, social, technological, legal and ecological aspects (PESTLE) of Austria.
The report also gives an analytical insight into the strengths, weaknesses, opportunities, and
threats (SWOT) in the country. It takes into account the perspective on Austria from recorded,
current and future point of view.

PESTEL ANALYSIS – AUSTRIA

Political –

Since 1955, Austria has appreciated political solidness, being a democratic republic country.
Somewhere in the range of 1970 and 1999, the Social Independent Part or SPO oversaw the
country either just or with cutting edge alliance accomplices. In 1999, the Conservative Popular
Party or OVP framed a relationship with the conservative, populist Freedom Party (FPO). The
FPO had gained support for the explanation that of populist technique, and a great deal of dread
it would represent conservative devotion. Thus, the European Union (EU) essential approved
a series of grant on Austria.

Previously, the SPO advocated state cooperation in Austria's key enterprises, the storage of
standardized security benefits, and a full-work arrangement. Starting in the mid-1980s, it
moved its point of convergence to free market-arranged economic approach, adjusting the
government spending plan, and European Union enrolment. Consequently, in the 2008
monetary crisis, the SPO began advocating a tax on worldwide budgetary exchanges and a
solidarity charge from Austrian banks that had been rescued by the administration during the
emergency.

Austria's rightist FPO has seen its engaging quality develop in a progression of nationalized
and state political race since 2006. Federal President Heinz Fischer was re-elected for a second
term on April 25, 2010.
Economic –

Austria has an exceptionally sensitive social market economy with a high mean of living wages
and close connections to other EU economy, specifically Germany's. The worldwide fiscal
emergency and extensive monetary descending winding in 2008 prompted a profound vicious
cycle that endured until the third segment of 2009.

The administration has likewise examined of a legitimate "debt obligation" to pay off public
sector debt to 60% of GDP by 2020. Association for Economic Cooperation and Development
(OECD) and International Monetary Fund (IMF) expert have called for an auxiliary change in
territories, for example, the supportability of annuities, guaranteeing long haul care for
Austria's maturing population, rebuilding open section compensation, transformation
association, and improving the college guidance frameworks.

Austrian GDP was $111,072 million. The nation is ranked 24 in the 50 countries published by
a source with respect to quarterly GDP. As per the World Bank, Austria's GDP Growth Rate
amounted to 3% in 2017.

Social –

To comprehend the rationale of Austrian cultural policy, it bodes well to return to the
establishing era of the Austrian social country. It turns out to be that a lot of what the world
sees as the embodiment of Austrian culture has its underlying foundations in the portrayal
needs of the declining Habsburg Empire. The medieval interests in culture were not planned
for empowering the residents to partake in open issues; in actuality: they were intended to ward
off them from the political circle by every single social means, by offering them an
unbelievable, however politically insignificant elective landscape. In 1918, the long history of
misfortune and losing of Austria, by then reduced to a little state.

Mozart and Strauss became images for the Austrian "Lebensfreude", the delights of life which
the world could share in any event on New Year's Day. During the remainder of the year, the
group of spectators is welcome to appreciate the lavish social legacy in its catholic‐baroque
wonder.
Currently, Austria ranks number 21 out of 141 countries in the Global Competitiveness Report
2019. The nation has it all - shopping, culture, high living standards, environmental quality,
and security.

Technological –

All things considered, spending on innovative work and mechanical hardware is set to increase
in Austria. Simultaneously, incomes, mostly from taxes (27% of GDP in 2017), are relied upon
to increase by prompting a further decrease in the open obligation trouble.

Science and Innovation is a piece of Austria as much as Mozart, the Viennese waltz and
Schnitzel. Austrian organizations work effectively around the globe. Austria has the third most
noteworthy modern yield per capita. 31% of Austria's GDP depends on assembling. Some 45%
of all employments in Austria are straightforwardly or in a roundabout way associated/subject
to the mechanical part. The Office of Science and Technology Austria in Washington DC, is
attempting to connect research and advancement among Austria and North America.

Austria is a top trendsetter: 3% of GDP is spent on R&D. In the universal advancement

scoreboard, which was as of late introduced at the 2018 CES (Consumer Electronics Show) in
Las Vegas, NV, Austria positioned twelfth.

Ecological/Environmental –

For quite a while after the war (universal war), reproduction and supporting the industrial
improvement were the main needs to Austrians. Just in the late seventies, environmental
developments picked up energy and the general familiarity with contamination and different
issues expanded. Afterward, a Green gathering was formed and various ecological laws were
discharged to secure the idea of the country. The major ecological issues about Austria are 1)
travel traffic for the most part in Tyrol and Salzburg, and 2) industrial pollution.

Climate change and regular calamities progressively impact business area choices. Austria
positions second overall concerning the security of vital supplies. Power is accessible in excess
of 99 percent of the time. Austria is moderately free from regular disasters. Accordingly,
Austria is not mentioned in the risk evaluations of important international insurance companies.
Legal –

In Austria, abilities to direct an issue are isolated among Federation and the Laender. As
indicated by Art. 15 Federal Constitutional Law, to the extent that an issue isn't rolled out by
the Court to the Federation for enactment or likewise execution, it stays inside the Laender's
independent circle of capability. Thusly, as vitality proficiency and vitality sparing isn't an
unequivocal skill of the Federation, and as long as it isn't related with some other capability
assigned out to the Federation, for example, for example traffic frameworks, it stays for the
Laender to accommodate the system in this issue. Be that as it may, as indicated by Art. 15a
Federal Constitutional Law, understandings (state settlement) might be finished up between
the Federation and the Laender.
SWOT ANALYSIS – AUSTRIA

STRENGTHS
WEAKNESSES
1. Favorable geopolitical location
1. Lack of resources
2. Well educated and sophisticated people
2. Inefficient administration
3. Great infrastructure
3. High dependency on exports
4. High percentage of locally produced
4. Unfavorable demographic situation
energy
5. Lack of trainees
5. Good relationship with Germany
6. Excellent environmental situation

SWOT

OPPORTUNITIES
1. Improvement of education system
2. Reduction of national deficit
3. Renewal of political system
4. Asset allocation based on strategic goals
rather than tradition
THREATS
1. Social tensions due to bad integration
2. EU Currency crisis
3. Gradually increasing national debts
4. Lack of qualification among population
BUSINESS OPPORTUNITIES IN AUSTRIA

Among the numerous European business countries, the place that is known for Mozart is
especially appealing and throughout the years it has been a favoured goal for some outside
business people. Austria, one of the most financially free nations on the planet, is an alluring
spot to work together. Aside from monetary opportunity, what makes it an appealing goal for
working together is the nation's infrastructure, astounding network through railroads, roadways
and aviation routes and best in class telecom, innovative work offices.

The most vital sector for Austria is the service sector which generates a major chunk of the
nation’s GDP. Vienna has grown to finance and consulting arenas and has established itself as
the hub within the last couple decades to the East.

Another important sector for Austria is tourism. It is the 10th most visited country in the world
with over 18.2 million tourists. Tourism accounts for almost 10% of the GDP of the nation.

Expanding trade and investment activities of the country in the latest markets of Central and
Eastern Europe is a major component of the nation’s economic activities. Trade with these
countries comes up to around 14% of Austria’s net imports and exports.

Austria also has the capability to attract EU firms, seeking easy access to these developing
and emerging markets.