The Global Business Game – Personal Report
1. STRATEGIC DIAGNOSIS
1. External Diagnosis
1.11 PESTEL Analysis
As for the home-country: USA
The government of the United States is basically pro-business. Its relatively low interest and inflation rates have led to the longest run of GDP growth in its history despite of an economic shut-down occurred in mid-2001. The local government grants my company with long-term tax waivers and abatements to keep me as a way to insure my role as the major employer in the area. However, my company is charged with a relatively high labor rates.
In the rage of international:
Pro-business governmental posture makes Germany a ...view middle of the document...
Although Thailand received 15 billion dollars in international emergency loans and created a new constitution in September 1997, its economy has never really recover from it. Besides, the issue of corruption has made it difficult for the government to take effective actions. Major cities of Thailand will be Bangkok, Nakhon Ratchasima, Chiang Mai and Hat Yai, which cover 7.7 million of the country’s population.
The United State has the most commercial possibilities and mass market appeal. However, a high degree of product saturation and market maturity exists in the USA for television sets, but the markets of Spain, Mexico and Thailand are relatively unsaturated in this regard. As for the Japanese and American markets, they have already reached the saturation point, so all new sales being are based on replacement demand. Germany plays the central role in its affairs and the euro’s value. With a low internal inflation rate and elaborate rail, roadway, and telephone infrastructures along with a pro-business governmental posture, Germany becomes a major exporter of highly engineered products.
Spain is the country where the labors cost the less in Europe, so it continues to be the favorite manufacturing site for European firms.
Mexico’s economic history has been turbulent and long lasting, despite its low factory labor rates, there is still a problem of unemployment and underemployment.
Although Japan suffered the decline of GDP for a long run in the 1990s, it still keeps its second-largest economy place in the world. Despite of the need of restructuring the banking system, conditions have improved recently.
The most popular-size of television sets are those of 25-27 inches. In the USA, 25-inch TVs are used as secondary sets in larger bedrooms or dens. Big-screen sets are used in large family rooms. Besides, my televisions sets have proven to be good Christmas gifts for child’s bedroom in the USA. In Germany and Spain, two countries that have many rabid soccer fans, television set sales spike in June shortly before the World Cup matches begin.
The world’s population will increase about 49.7 percent in the very long term. This results in a 3.0 percent average annual increase in the number of people who might potentially watch a television set. The greatest growth will be found in the developing areas of Asia, Africa and Oceania as well as in the more highly developed North America due to immigration. According to the Exhibit 1.3, Africa will be having 1,766 million populations in the year of 2050, 5,268 million for Asia, 628 million for Europe, 809 million for Latin America& Caribbean and 392 million for Northern America, 46 for Oceania. That will be a total of 8,909 million populations for the world by the year of 2050.
Germany has a population size of 82, 431, 390, 2004 and literacy rate of 99 percent, television sets are owned by 581 per 1000 people.
Spain has a population size of 40,341,462 2004 and a...