PESTEL Analysis of

Presented By:Atul Sande (04) Krupesh

Shah (07)Vengadeshwaran P (19) Sagar Kuckian

(36)

Germany

Germany • Officially known as “Federal Republic of

Germany”• Consists of 16 sates, with Berlin as capital

city.• Covers an area of 357,021 square kilometers.• Estimated population of 80.6 million.• Worlds fourth largest economy by nominal

GDP.• Worlds fifth largest by purchasing power

parity.• World's third-largest exporter and importer of

goods.• World's oldest universal health care system.• Member of the United Nations, NATO, the G8,

the G20, the OECD and the Council of Europe.

PESTEL Factors

Germany

POLITICAL Factor

Head of state. Duties are largely representative and ceremonial.

President: Joachim Gauck Head of government

and thus the executive branch of federal government.

Chancellor: Angela Merkel

The Executives

POLITICAL Analysis• The BundestagThe lower house in the German political system.• The BundesratThe upper house in the German political system• The JudiciaryThe Federal Constitutional Court acts as guardian of the constitution. • The LänderThere are 16 Länder in the German political system

ECONOMIC Factor • Germany has a social market economy.• The 4th largest by nominal GDP in the world

the 5th largest by PPP.• GDP of $3.747 trillion and GDP growth of

1.8%. • Average national unemployment rate of 6.8%.• Approved a €50 billion economic stimulus

plan to protect several sectors from a downturn

• 37 of the fortune 500 companies are headquartered in Germany. 

ECONOMIC Factor • Around 2/3rd of the world's

leading trade fairs take place in Germany.

• Leading exporter of machinery, vehicles, chemicals, and household equipment.

• Banking and insurance are a pillar of the service sector.

• Important industrial sector are automotive manufacture, mechanical and electrical engineering and chemicals.

Sector wise contribution to GDP

Industry29%

Service70%

Agri-cul-

ture1%

SOCIO-CULTURAL Factor • Largest Religion: Christianity • Predominant language:

German• Wolfgang, Amadeus, Mozart's

are three German dance forms.

• Famous for rye bread. • National alcoholic drink is

beer. • Football is the most popular

sport.• UNESCO inscribed 38

properties in Germany on the World Heritage List

SOCIO-CULTURAL Factor • There are 240 subsidised theatres,

hundreds of symphonic orchestras, thousands of museums and over 25,000 libraries spread in Germany.

• Germans are just argumentative.• Passionate about lifestyle and politics.• Corporate Culture:

−Make appointments for meetings in advance

−Dress formally in dark, conservative suits

−Rank is very important in business

TECHNOLOGICAL Factor • 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• World-class basic science in fields ranging

from materials science to biomedicine.

ENVIRONMENTAL Factor Resources:• 107 cu km of renewable water resources

(86% are used for industrial purposes)• Relies principally on fossil fuels as sources

of energy.• 40% energy consumption – petroleum• 30% consumption -domestic coal deposits• 17% consumption – natural gas• 10% consumption – nuclear energy

ENVIRONMENTAL Factor • Air pollution resulting from industries &

Emissions from coal-burning utilities.• Acid rain is damaging forests.• Pollution in the Baltic Sea from raw sewage

and industrial effluents.

LEGAL Factor • Law enforcing system at 3 levels: Federal,

State & Local• Laws are passed by the Bundestag• Influenced European Union law & by

international law.• 1,900 acts and 3,000 statutory instruments.• Business-life is based on principle of

competition.• The legal stability attracts foreign

companies.• Fair competition is safeguarded.• Trademarks and patents enjoy strong

protection.

Mercedes-Benz

Company History• 1886: Karl Benz's created the 1st petrol-

powered car.• 1926: 1st Mercedes-Benz vehicles was

produced.• 1952: Max Hoffman started importing the

Mercedes 300SL Gullwing into the U.S• 1965: Founded Mercedes-Benz North America. • Headquartered in Stuttgart, Germany• Leader in luxury automobiles, buses, coaches, and trucks.

"What Drives Us"Internal vision & mission statement of Mercedes-Benz is not publicly available. The six values that "drive" Mercedes-Benz USA are:• The audacity to reject compromise• The instinct to protect what matters• The commitment to honor a legacy• The vision to consider every detail• The foresight to take responsibility• The ingenuity to outperform expectations

Core Values

Key Products

CAR BICYCLE

TRUCK VANLIMOUSINES

Competitors

Key Geographies

Market Share in America

Performance OverviewMercedes-Benz Sales in the Markets

Europe 54,904 -0.8 660,566

+5.9

- thereof Germany

19,977 -12.0 255,238

-2.2

NAFTA 36,560 +14.9 352,778 +13.3

- thereof USA

33,007 +17.3 312,534

+14.0

Asia/Pacific 41,727 +23.5 390,83

5 +15.9

- thereof Japan

6,125 +17.0 53,037 +31.0

- thereof China

23,514 +24.4 218,045 +11.1

Overview of Sales by Mercedes-Benz Cars

Dec2013

% Chang

e

Per Dec2013

% Chang

eMercedes-Benz

139,180 +11.2 1,461,680

+10.7

smart8,805

+20.0 100,792 -2.8

Mercedes-Benz Cars

147,985 +11.7 1,562,472

+9.7

USP of Mercedes-Benz

• Engineered Like No Other Car in the World

• Luxury

• Safety

• Reliability

• Aftersales service

• Perception of advertisement

Financial Overview

Ethical Practices

• Observance of human rights• Free choice of employment• Ostracism of child labor• Equal opportunities• Freedom of association• Prohibition of corruption• Health and safety at the workplace

Corporate Social Responsibility

• Environmentally friendly production

• Environmentally friendly products.

• Product safety and quality.

Success Story• Mercedes-Benz Vito E-CELL, the first

electrically powered van in the world, and the first to make locally emission-free mobility ex factory a possibility was one of the prize winners in the "Environment" category of the Germany-wide innovation competition "365 Landmarks in the Land of Ideas".

• The Vito E-CELL, a vehicle powered solely by an electric motor, won the innovation prize in the special "Alternative Drives" category

Set BackDaimler & Chrysler

Reason behind the failure of Merger:

• Corporate Cultures• Customer proposition• Value chain• People Issues• Others issues

InnovationMercedes-Benz S-Class:

• 3D cameras, radar, night vision, LED headlights and taillights that adjust their brightness automatically. Cameras that act as eyes and radar sensors that act as ears, for a 360-degree view of the road..

• The new S-Class is the first car in history capable of driving itself, though the car’s current autonomous mode is only suited for traffic jams and highway driving

Global Challenges• Mercedes lags in China

• Challenge in Russia - Development of the public road system.

• Consolidated auto industry

• Government policies for the auto sector across the world

• Ever increasing fuel prices

• Intense competition from global automobile brands