The Investigation of Volkswagen's Entry Strategy in China's Car Market
The Investigation of Volkswagen's Entry Strategy in China's Car Market
The Investigation of Volkswagen's Entry Strategy in China's Car Market
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
MA MANAGEMENT DISSERTATION<br />
XIAOFENG WEN<br />
Table2.36-3 Factors <strong>in</strong> PEST<br />
Political Analysis Economic Analysis Social Analysis Technological<br />
Analysis<br />
- Political stability - Type <strong>of</strong> economic<br />
system <strong>in</strong> countries <strong>of</strong><br />
- Demographics - Recent technological<br />
developments<br />
- Risk <strong>of</strong> military<br />
<strong>in</strong>vasion<br />
operation<br />
- Government<br />
- Class structure<br />
- Education<br />
- Technology’s<br />
impact on product<br />
- Legal framework for<br />
contract enforcement<br />
<strong>in</strong>tervention <strong>in</strong> the free<br />
market<br />
- Culture (gender<br />
roles, etc.)<br />
<strong>of</strong>fer<strong>in</strong>g<br />
- Impact on cost<br />
- Intellectual property<br />
protection<br />
- Comparative advantages<br />
<strong>of</strong> host country<br />
- Entrepreneurial<br />
spirit<br />
structure<br />
- Impact on value<br />
- Trade regulations &<br />
tariffs<br />
- Exchange rates &<br />
stability <strong>of</strong> host country<br />
currency<br />
- Attitudes (health,<br />
environmental<br />
cha<strong>in</strong> structure<br />
- Rate <strong>of</strong><br />
- Favored trad<strong>in</strong>g<br />
partners<br />
- Efficiency <strong>of</strong> f<strong>in</strong>ancial<br />
markets<br />
consciousness, etc.)<br />
- Leisure <strong>in</strong>terests<br />
technological<br />
diffusion<br />
- Anti-trust laws<br />
- Infrastructure quality<br />
- Pric<strong>in</strong>g regulations<br />
- Skill level <strong>of</strong> workforce<br />
- Taxation-tax rates<br />
and <strong>in</strong>centives - Labor costs<br />
- Wage<br />
legislation-m<strong>in</strong>imum<br />
wage and overtime<br />
- Bus<strong>in</strong>ess cycle stage<br />
(e.g. prosperity, recession,<br />
recovery)<br />
- Work week<br />
- Economic growth rate<br />
- Mandatory employee<br />
benefits<br />
- Industry safety<br />
regulations<br />
- Discretionary <strong>in</strong>come<br />
- Unemployment rate<br />
- Inflation rate<br />
-Product label<strong>in</strong>g<br />
requirements<br />
- Interest rates<br />
Source: David Jobber, 2004<br />
- 35 -
Change language