Pestle Analysis of China - 2095 Words

A PESTEL analysis of Chinas current economy With China economic growth rapidly, more and more business people like to invest on chinese market. Meanwhile, multinational investment is always a good condition for economics’ grow and prosperity as well. In order to attract foreign direct investment and run a successful business in China, it is important to analyzing the macro-environment, and identify the factors that could affect the organization’s economy, such as supply and demand and its costs. A PEST analysis is one of strategic tools for analyzing the environmental influences including political, economic, social and technological factors on the business. (Porter, M., 1985) In this essay, it is going to explain about current china†¦show more content†¦If demand is high, and the capital cost is low, which attract more investment on the company and produce more product to make profitable. However, during economy recession period, there is still chances for some small potential corprations accessing business market and competing with others. Recent years, China economic growth rapidly. Overall, it can be reflect from industrial sectors. Since from late 1978, China becomes market oriented economy. China gains tremendous in production of agriculture. Even though, there are more than half people rely on agriculture for living, the agriculture sector has less influence for gross domestic product. At the same time, labor input decreases in most of industries, due to labor productivity improvement and the migration from rural workers to urban areas. In the opposite, through the adjustment of secondary industry and teritiary industry, they become unreplceable roles to GDP. (Ke-sha G, 2001) It provides activities as knowledge, skills, as well as experience, entertainment to improve the quality of business. (Sasaki H, 2009) Due to its foreign trade liberazation and investment, the income has been dramatically rising after joining the WTO. Moreover, the demand for material and energy resource is also increasing. They import and pr ocess materials, then sell the final products. In addition, the Bank of China as central bank in china. It uses monetary policy to increase or decrease interestShow MoreRelatedGlobal Marketing: Burberry in China, PESTLE analysis Essay2633 Words   |  11 Pagesin order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. 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