The document analyzes Germany's PESTEL factors. It discusses Germany's political system, which is a democratic parliamentary federal republic made up of 16 states. Economically, Germany has the largest economy in Europe and is home to many Fortune 500 companies. Socially, Germany has a highly developed social security system and population of around 82 million people. Environmentally, Germany is committed to reducing carbon emissions and using renewable energy. The legal system has different courts at the federal, state, and local levels. The document also discusses two major German companies, Siemens and ABB, including their operations, revenues, innovations, and corporate responsibility.
2. PESTEL :: POLITICAL ANALYSISGerman Empire was created in 1871 by Chancellor Otto von Bismark. History dates back to Holy German Empire (962 – 1806 AD).The Reichstag, or elected parliament, had only a limited role in the imperial government. January 14, 20102PESTEL:DEUTSCHLAND
3. PESTEL :: POLITICAL ANALYSISJanuary 14, 20103PESTEL:DEUTSCHLANDPESTEL :: POLITICAL ANALYSISPost 1945: WW II Divided Germany in 2 parts : West Germany (Rich Germany) and East Germany (Poor Germany). Berlin: Capital of Germany was also divided in 2 parts by way of “Berlin Wall”.
4. January 14, 2010PESTEL:DEUTSCHLAND4PESTEL :: POLITICAL ANALYSISLocation: Central EuropeArea: 357,104 Km²Inhabitants 2008: 82,2 MillionCapital City: BerlinState System: Democratic- Parliamentary Federal StateAdministration: 16 StatesTime Zone: Central European Time (CET)Currency: 1 Euro = 100 CentsGross National Income: EUR 2,529.78 BillionTelephone Country Code:+49Power Voltage: 230 V, 50 Hz
7. Federal: Bicameral With The Bundestag (Federal Assembly) And The Bundesrat (Federal Council)Both Responsible For National Laws, e.g.: Taxation
8. States (Laender): Own Constitutions, Governments And Parliaments - Running Of Own Facilities, e.g.: Education And Hospital
9. Local: Relatively Large Power, eg. Levy Business TaxJanuary 14, 2010PESTEL:DEUTSCHLAND6LegislationBicameral System: In Addition To The Bundestag, The Bundesrat (Consisting Of Delegates Of The State Governments To Uphold The States’ Interests) Participates In Legislation.State StructureGermany Is A Federation Consisting Of 16 Federal States, Each With Its Own Constitution, Parliament And Government. The Highest State Authority Is Exercised By The Federal Government. Through The Agency Of The Bundesrat, The States Are Represented At The Federal Level And Participate In Federal Legislation.SuffrageUniversal, Equal And Secret Suffrage As Of 18 Years Of Age (In The Case Of Municipal Elections In Part As Of 16), Elections To The Bundestag Are Held Every Four Years.
11. PESTEL::EconomicalLargest Economy in Europe, Fourth Largest by Nominal GDP in the WorldGross GDP = $ 3.673 Trillion, ~30% share to Industry.Nearly 40 Fortune 500 Companies are headquartered in Germany.
12. GDP Growth Rate : Germany & India :: A ComparisonSource: World Bank DataGermany Has Been Experiencing A Strong Economic Recovery After A Prolonged Period Of Stagnation In The Early Years Of The Current Decade.
14. PESTEL:: SOCIAL ANALYSISEstablished Comprehensive System Of Social SecurityHDI = 0.947 ( ) Index Based On Life Expectancy At Birth (Average Life Expectance = 77 years)Adult Literacy RateStandard Of LivingPopulation Density = 230 Per Km2Per Capita $ 44,728(Source: WIKIPEDIA)January 14, 2010PESTEL:DEUTSCHLAND11
15. The 2007 Health Care ReformsFour Reforms Rolled Into OneIntroduction Of Health Insurance For AllTo Care Structures And Health Insurance Fund ReorganisationReform Of Financing StructuresReform Of The Private Health InsuranceJanuary 14, 2010PESTEL:DEUTSCHLAND12PESTEL:: SOCIAL ANALYSIS
22. Largest Religion: Christianity, 32% Protestants, 31% CatholicJanuary 14, 2010PESTEL:DEUTSCHLAND14German populationSource: World Bank DataGerman population Growth in Comparison toIndia
23. PESTEL :: ENVIRONMENT Europe’s Largest & World’s 6th Largest Carbon Emitter.After Signing Kyoto Protocol, 22% Reduction In Carbon (Cox) Emissions.39% Of Wind Energy Of World’s RequirementCommitted To Use Renewable Energy Source In FutureJanuary 14, 2010PESTEL:DEUTSCHLAND15
25. PESTEL :: LEGAL SYSTEMLaw Enforcing System Is Divided At 3 Levels: -FederalState &LocalMore Powers At State Level, Whereas Federal Police Intervene Only At National & International Level.The German Supreme Court, Namely The Federal Constitutional Court Monitors Maintenance Of These Rights And The Preservation Of Justice.January 14, 2010PESTEL:DEUTSCHLAND17
26. Historically speaking, German law in part goes back to Roman law and in part dates back to numerous other legal sources in the various German regions. The Administration Of Justice Is Divided Into Five Branches: Ordinary, Labor, Administrative, Social And Financial Courts.In Surveys On Political And Legal Stability, Foreign Investors Put Germany Second Only To Great Britain. This Legal Stability Attracts Foreign Companies And Is To The Benefit Of Investments And Entrepreneurial Activity In Germany.January 14, 2010PESTEL:DEUTSCHLAND18PESTEL :: LEGAL SYSTEM
31. Europe’s Largest Engineering Conglomerate.Headquarters in Berlin & Munich.Original Business known as German Electrical-equipment Manufacturer. 1847 – Founded In Berlin, Under The Name Siemens & Halske, To Build Telegraph Installations By Werner Von Siemens & His 3 Brothers.Expansion To Produce Dynamos, Cables, Telephones, Electric Power & Lighting1903 – Transferred Its Power – Engineering Division To Siemens – SchuckertwekeGmbh1932 – Siemens – ReinigerWerke AG Was Estblished To Produce Medical EquipmentJanuary 14, 2010PESTEL:DEUTSCHLAND23
32. Achievements: -1848: First Long Distance Telegraph Line In Europe1850: A Branch In London Started By Sir William Siemens.1867: First Telegraph Line Between Calcutta & London.1881: In Godalming, UK World’s First Street Electric Lighting Was Powered Using Siemens Ac Alternator1885: Diversified In Electric Trains & Light Bulbs1907: Ca 35,000 Employees And Siemens Became 7th Largest Company In Germany.January 14, 2010PESTEL:DEUTSCHLAND24
33. January 14, 2010PESTEL:DEUTSCHLAND25Corporate Vision: -A World Of Proven Talent, Delivering Breakthrough Innovations, Giving Our Customers A Unique Competitive Edge, Enabling Societies To Master Their Most Vital Challenges And Creating Sustainable Value.
44. January 14, 2010PESTEL:DEUTSCHLAND36SIEMENS & United States of America: -Broad Presence In World’s Toughest MarketEnergy:: covering 1/3 of US electricity need per dayHealthCare :: No. 1 application service provider, processing an average of 170 million transactions for 1000 customer daily.Industry :: Siemens processes 100 % of nation’s mail
54. 55,000 Active Patents As On September 2009January 14, 2010PESTEL:DEUTSCHLAND39This slide is intentionally left blank
55. January 14, 2010PESTEL:DEUTSCHLAND40We View Corporate Responsibility As A Strategic, Management-driven Task That Integrates Our Business, Environmental And Citizenship Activities To Create Sustained Tangible And Intangible Value For Our Company And Our Stakeholders By Ethically Sound Means.
56. January 14, 2010PESTEL:DEUTSCHLAND41Nearly One Quarter Of Siemens’ Revenue Is Generated By Products And Solutions That Make A Direct, Quantifiable Contribution To Environment And Climate Protection (~ €19 Billion).
57. In Fiscal 2008, Energy-efficient Products And Solutions In Our Environmental Portfolio Saved About 148 Million Tons Of Co2 For Our Customers...Which Equals The Total Co2 Emitted By New York, London And Hong Kong
58. By 2011, Income From Environmental Portfolio Should Grow To €25 Billion. January 14, 2010PESTEL:DEUTSCHLAND42