PESTLE Analysis

Element Factor Business Impact

Develop the domestic trade in After the trading has been reform in
China
1978, the trading of products and
For the consumer rights
services is growing spectacularly in
protection, after open up china
China. The reform comprises of
door and the economy reform,
motivating the development of
people increase consumer's
private business, foreign trade
awareness and protect their rights.
Political liberalization, foreign direct
(Shaoping G, 2012) If the
investment, and industrial production
consumer protection is
investment as well as the employment
improving, the multinational
profile. From 1979 to 1994, more
companies will get benefits from
than 42 percent Chinese trade rate has
doing business in china: open
been grown up.
market will be prosperity and the
market for the middle level of
consumers are expanding.
However, no matter how develop
the domestic trade is, it is better to
keep the environmental survival
ability for next generations. The
environmental regulations could
keep environmental friendly and
maintain the balance between
trading development and
sustainable development.

China gains tremendous in

Increase the productivity production of agriculture. Even
Recent years, China trade growth though, there are more than half
Economical rapidly. Overall, it can be people rely on agriculture for living,
reflected from industrial sectors. the agriculture sector has less
Since from late 1978, China influence for gross domestic product.
At the same time, labour input
 PESTLE Analysis
becomes market oriented decreases in most of industries, due to
economy. labour productivity improvement and
the migration from rural workers to
urban areas. In the opposite, through
the adjustment of secondary industry
and tertiary industry, they become
unreplaceable roles to GDP. (Ke-sha
G, 2015). It provides activities as
knowledge, skills, as well as
experience, entertainment to improve
the quality of business. (Sasaki H,
2013). Due to its foreign trade
linearization 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 process materials, then
sell the final products.
Distribution income equally The more income distribution
and invest in education expanding, the more motivation for
As to lifestyle changing, economic growth, also can be
nowadays, there are more people obstacle for economic growth.
Sociological choose working at home, it will Unequal income distribution and
be more convivence and easier for poverty will be barriers for china's
employment who want to keep growth. Thus, government need
balance between family and adjust the taxation system, reduce
work. Also, with the number of income difference in different field,
single households increasing, improve the social security for to
company more like to assign this make people life more secure. (Jing
type of employees to work abroad X, 2014).
or other regions where is far away Chinese government encourage
from home. Because they have international schools join venture with
 PESTLE Analysis
less responsibility for family and Chinese public schools to exchange
less homesick. They will easier to culture and learning skills, also as
devote all themselves into work business company, they will
organization business presentation for
and adapt new multicultural work
employment, or assign them to study
environment. (Lu D, 2012).
abroad, to introduce more advanced
knowledge and valuable experience from
people who are from different culture
background.

Chinses government invest The Chinses technology trade of

more in Technology products and services have been
development and innovation for reach to many countries in the world
trade purpose including Egypt.
Chinses government spend large High technology information
amount of money on research, to development has a significant role in
develop and explore high the China trade. As the internet and
technology innovation, also to technology moving forward, it drive
speed the technology transfer. the success of the china trade. The
Technological trade barriers decrease, which
produce more job opportunities in the
field of information Technology.
Moreover, the expenditure of high-
technology consumers is covering all
over the world, such as computer and
networking hardware, software and
services, that is over than $1.4 trillion
in 2005. Also, that worldwide IT
spending increase by 10 % over every
year.
 PESTLE Analysis
Legal When it comes to foreign trade
policy, the private sectors are moving
Chinses government changes
forward fast after 1978 reforms.
the structure of laws for foreign
Foreign trade opening drives foreign
trade and become less strict in
direct investment increasing. In 2008,
term of importing and
the foreign direct investment is up to
exporting goods and services.
108 billion dollars in china. (Yadav
M, 2010).
China: open market will be prosperity
and the market for the middle level of
consumers are expanding.
Environmental Government of China increase their
capital markets are determined expenditure, which could increase
money supply for organization and
by Chinese government
make capital markets boom. Based on
organization performance, the
shareholders will decide to provide
more equity funding or sell the
shares.

The labour market indicates that the

availability of certain skills and the
labour costs at different regions or
industries in China, which are under
the power of the training and
government policies, as well as the
inflation, industries sectors' needs,
and trade unions.

At last but not the least, China focus

on being environment-friendly
society. As china daily said, china
will have an international green
industry expo in Beijing in Nov of
2010, which will let others know
more about domestic corporations
and offer a new stage for them, also
foreign companies are likely to
explore Chinese green market and
develop a green economy in china,
such as clean energy, emission
reductions, low carbon technology
and so on. (Xinhua, July 2010)
 PESTLE Analysis

Element Factor Business Impact

Unstable Politics and Continues

The continuous conflicts in Egypt has
conflicts between the Politicians
dramatically effective the Egyptian
trade which make most of the
businessmen to leave the country as
well as the foreign investment has
Political been decreased due to current
circumstances and the political
conflicts for the rule.

Most of the manufacturing stopped to

exports products and services such as
China during the two revolutions that
happened one year after another
which this leave a big negative impact
to the Egyptian trade (Cairo trade
studies, 2016).
The unemployment was increased as
well as the immigrant of the
workforce to other countries which
this will totally make the trade of the
Egypt in the danger line.

The budget deficit climbed to over

Change the economy system 8% of GDP and Egypt's GDP growth
Economical from being centralised or slowed to 4.6% in 2009,
socialised to be mixed predominately due to reduced growth
Capitalism and Socialism in export-oriented sectors, including
Economy manufacturing and tourism, and Suez
 PESTLE Analysis
Canal revenues. In 2010, the
government spent more on
infrastructure and public projects, and
exports drove GDP growth to more
than 5%, but GDP growth in 2011 is
unlikely to bounce back to pre-global
financial recession levels, when it
stood at 7%. Despite the relatively
high levels of economic growth over
the past few years, living conditions
for the average Egyptian remain poor.
In the past year, the cabinet economic
team has simplified and reduced
tariffs and taxes, improved the
transparency of the national budget,
revived stalled privatizations of
public enterprises and implemented
economic legislation designed to
foster private sector-driven economic
growth and improve Egypt's
competitiveness. Despite these
achievements, the trade is still
hampered by government
intervention, substantial subsidies for
food, housing, and energy, and
bloated public sector payrolls.
Moreover, the public sector still
controls most heavy industry.

The unemployment rate, which has

The Unemployment Rae is averaged more than 10% over a
increasing, the Education and decade, increased to over 12% in
Sociological 200506. With the population
 PESTLE Analysis
healthcare System is growing at 1.8% per annum, the
underdeveloped economic growth of 4.4% is not
enough to curb the unemployment
rate. While the average growth in
employed population during the last
five-year period stood at 2.3%, the
rise in unemployed population has
been much higher during the same
period averaging around 8%. The
high rates of unemployment and
population growth coupled with
meagre wages in most of the public
sector companies contribute to the
poverty levels, with close to 20% of
Egypts population below the poverty
line. A big challenge for Egypt in the
near future will be to create jobs, as
the population within the 2045 age-
group constitutes around 65% of the
total population.

The education indicators of Egypt

project a poor image of the education
system. Only about 58% of the
population is literate and there is a
big difference in the literacy rates for
males and females. Male literacy rate
is around 68%, while female literacy
rate is just about 47%, indicative of
gender disparity. The National
Council for Women, a nodal
government agency that works for
the welfare of women in Egypt, aims
 PESTLE Analysis
to completely eradicate illiteracy
among females.

The healthcare system in Egypt is

underdeveloped with only around
29% of the population covered by
governmental health insurance.
Egypts public healthcare system is
under-funded, with the government
committing only around $1 billion in
200506 for upgrading the healthcare
sector, which represents a meagre
2.7% of the total state budget. The
ministry of health is the largest
institutional financier providing free
healthcare services in Egypt but its
reach is limited. Almost 65% of the
Egyptian people pay for their own
insurance through private and other
health insurance organizations. The
total spending on healthcare in Egypt
is only about 4% of its GDP.

Develop effective strategies to A number of policies have been

attract foreign investment in implemented to attract foreign

the Information Technology investment in IT outsourcing, including

local employment subsidies, lower
outsourcing
corporate taxes and deductions for
training costs. The Egyptian minister of
state for administrative development has
said that 200 government services will
soon be available online through a new e-
government portal. The portal will offer
Technological 70 services in both English and Arabic.
 PESTLE Analysis
Legal
Egypt has been engaged to the
world trade and sinning an
agreement with world
organization trade . Egypt
government facilities and
structure its foreign policy
trade to make more interest to
the country while exporting its
products and services to the
national wide
Environmental
Egypt market is fully
controlled by the govement
According to the Ministry for
Administrative Development, more than
20 government agencies currently offer
services and licenses online.
The Egyptian market is gradually
opening up, especially after signing an
agreement with the European Free Trade
Association (EFTA) in 2006, and a free
trade treaty with the United States. Its
three primary export partners are the
European Union, which represents more
than a third of the trade, United States
and Syria. Its three primary import
partners are the European Union, the
United States and China. Egypt mainly
exports mineral fuels and oil, cotton, iron
and steel. It imports mainly consumer
electronic goods and capital goods,
nuclear reactors and nuclear-powered
boilers, cereals, food products and
chemical products. Import volume has
doubled and is twice the export volume,
a fact which contributed to the
deterioration of the country's trade
balance.
Government of China increase their
expenditure, which could increase
money supply for organization and
PESTLE Analysis
make capital markets boom. Based on
organization performance, the
shareholders will decide to provide
more equity funding or sell the
shares.

The labour market indicates that the

availability of certain skills and the
labour costs at different regions or
industries in China, which are under
the power of the training and
government policies, as well as the
inflation, industries sectors' needs,
and trade unions.

At last but not the least, China focus

on being environment-friendly
society. As china daily said, china
will have an international green
industry expo in Beijing in Nov of
2010, which will let others know
more about domestic corporations
and offer a new stage for them, also
foreign companies are likely to
explore Chinese green market and
develop a green economy in china,
such as clean energy, emission
reductions, low carbon technology
and so on. (Xinhua, July 2010)