A PESTEL ANALYSIS OF GERMANY

POLITICAL FACTORS
 TYPE OF STATE – Democratic and federal parliamentary republic
 EXECUTIVE – Federal President, Cabinet is the chief executive
 LEGISLATURE – Power is divided between Bundestag and Bundesrat
 JUDICIARY – Follows the civil law tradition
 FOREIGN RELATIONS – Federal foreign office is the foreign ministry. Heiko
Maas has served as the foreign minister. Restriction to export of small arms.
ECONOMICAL FACTORS
 GDP
 Inflation and income
 Public Debt
 Reducing Unemployment
 Exchange Rate
 Trade Balance
 Index of Economic freedom
SOCIAL FACTORS
 Germany has about 82 million inhabitants. It is by far the largest country in
the EU in terms of population.
 Germany is a modern, cosmopolitan country. Its society is shaped by a
plurality of life styles and truly different ethno- cultural diversity. Forms of
coexistence have become more varied.
 Traditional gender roles have been dispensed with.
 Despite the social changes, the family remains the most important social
reference unit and young people have very close bonds with their parents
TECHNOLOGICAL FACTORS
 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
ENVIRONMENTAL FACTORS
 Changes in the atmosphere and climate system are among the greatest
environmental and political challenges of the 21st century.
 In the international arena, Germany is a forerunner in climate and energy
policies and seeks to achieve ambitious mission - reduction goals.
 With the 2011 decision to opt out of nuclear energy and to decommission the
last nuclear power station by 2022 at the latest, Germany is sending out a
signal that has been respected throughout the world.
 As a well-developed industrialized nation with a high population density,
Germany finds itself particularly dependent on natural resources.
ENVIRONMENTAL FACTORS
ENVIRONMENTAL ISSUES

 Emissions from coal-burning utilities and industries contribute to air

pollution.
 Acid rain resulting from sulphur dioxide emissions, is damaging forests.
 Pollution in the Baltic Sea from raw sewage and industrial effluents from
rivers in eastern Germany; hazardous waste disposal.
 Still by 1994, 50% of Germany’s forests had been damaged by acid rain.
LEGAL FACTORS
 In Germany, the administration of justice is divided into five branches:
ordinary, labor, administrative, social and financial courts.
 In a normal case there are three higher tiers that can re-assess court
decisions. The plaintiffs and the accused can appeal against a court ruling.
 Thereupon the litigation goes before a “higher” court and a ruling is handed
down.
 Not until the third level has been reached is there no longer any right of
appeal and the litigation thus comes to an end.
THANK YOU !