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International

Business:Education sector

International Business:Education sector PESTLE analysis of CHINA
International Business:Education sector PESTLE analysis of CHINA

PESTLE analysis of CHINA

Presented by ▪ S_uhail Manjardekar ▪ A_teet Rao ▪ S_hardul Thakker ▪ A_mar Itagi ▪ K_unal
Presented by
▪ S_uhail Manjardekar
▪ A_teet Rao
▪ S_hardul Thakker
▪ A_mar Itagi
▪ K_unal Sharma
▪ I_kram Vora

Introduction

Introduction ▪ Capital: - Beijing Largest City - Shanghai ▪ World's second-largest country by land area,

Capital:- Beijing Largest City - Shanghai

World's second-largest country by land area, and the third- or fourth-largest in total area.

Area: Land - 9,596,961 km

Water - 3,705,407 sq. mi

Population:(over 1.3 billion)

Currency: 1 chine's Yuan = INR/CNY = 9.90721

1 CNY = 9.9072 INR

GDP (PPP): 2014 estimate - Total$14.625 trillion

Per capita$10,695

GDP (nominal):

2014 estimate - Total$10.028 trillion Per capita$7,333

Well known for ...

Well known for ... ▪ Technical advancement – scope for e-learning ▪ The Great Wall Of

Technical advancement scope for e-learning The Great Wall Of China Largest population Pandas Jackie Chen and Bruce Lee can be used to promote brand

Political factors

Political factors ▪ Communist party but transforming into democratic . ▪ Single Party socialist state ▪

Communist party but transforming into democratic .

Single Party socialist state

President - Xi Jingping Premier - Li Keqiang Congress Chairman - Zhang Dejiang Conference Chairman - Yu Zhengsheng Only one party ruling therefore stability in country attracting foreign investments

Govt provides incentives and securities to new business.

Complex law for new investors-but stable for long run

Economical factors

Economical factors ▪ GDP:- $11.316 trillion ▪ GDP growth:- 9.5% ▪ Per capita:- $8,394 ▪ Unemployment

GDP:- $11.316 trillion

GDP growth:- 9.5%

Per capita:- $8,394

Unemployment Rate:- 6.1%

Inflation rate:- 3.2%

Exports: $1.581 trillion

Imports: $1.327 trillion

Revenues:$ 972.3 billion

Expenditures:$ 1.137 trillion (2009)

Economical factors ▪ GDP:- $11.316 trillion ▪ GDP growth:- 9.5% ▪ Per capita:- $8,394 ▪ Unemployment

Continued ...

Continued ... ▪ Population below poverty line 10% ▪ Tax rate for foreign investments 30% national

Population below poverty line 10%

Tax rate for foreign investments 30% national & 3% local rate for production business and 20% for others(interest, rent, license, utilization)

Current account balance : $296.2billion (2009) world’s largest

Reserves of foreign exchange :$2.206 trillion (2009)

Labor force: 815.3 million (2010); agriculture 10.2%, industry 46.9%, services 43% (2010 est.).

Labor costs are low, prices of commodity low n stable

2013 china world 2 nd largest economy after US

Social factors

Social factors ▪ 51.27 percent male & 48.73 percent female of the total ▪ population. Literacy

51.27 percent male & 48.73 percent female of the total

population. Literacy rate:- 92.8%

Religions:

Buddhism(50%), Taoism(30%), and Chinese folk religions & others(Muslim 1.5-2%,Christian 3-4%)

The average income in east china is 2.26 times then west of china-scope in east

Chinese prefer first mover.

Age structure (Yrs)

13.26 16.6 0-14 15-60 60+ 70.14
13.26
16.6
0-14
15-60
60+
70.14

Environmental factors

Environmental factors ▪ Over reliance on coal which produces acid rain. ▪ Water shortage ▪ Climate

Over reliance on coal which produces acid rain. Water shortage Climate vary from region to region Natural disasters (floods, earthquakes) Clean energy, low carbon technology

Technological factors

Technological factors ▪ Internet users:-500 million (2011) Railway worlds third largest system ▪ Airports :- 482(2009)

Internet users:-500 million (2011)

Railway worlds third largest system

Airports :- 482(2009)

Roadway 3583,715km(2007) world second largest

China Telecom alone serves 55 million broadband subscribers

Tianhe-1A world’s fastest supercomputer

In 2011, China unveiled a prototype train

Technology is becoming cheaper

Telephone system is on world’s number one

Technological developments

Technological developments Telephones - main lines in use: 294.383 million ▪ country comparison to the world:

Telephones - main lines in use: 294.383 million

country comparison to the world: 1

Telephones - mobile cellular: 859 million

country comparison to the world: 1

Internet Users: 450 million host

country comparison to the world: 1

Computer & Electronics:

China now has the world’s fastest supercomputer, after taking the title from the U.S. in 2012. China’s Tianhe-1A has with 262 terabytes of memory and is housed in 140 refrigerator-sized cabinets. China is the world’s leading electronics exporter, which exported US$933.4 billion worth of mechanical and electrical products in 2011.

Research and development

Research and development ▪ investments in scientific research, spending over US$100 billion on scientific research and

investments in scientific research, spending over US$100 billion on scientific research and development in 2011 alone. Science and technology are seen as vital for achieving economic and political goals, and are held as a source of national pride to a degree sometimes described as "techno-nationalism

China currently has the largest number of active cellphones of any country in

the world, with over 1 billion users by February 2012.It also has the world's largest number of internet and broad band user with over 591 million internet users as of 2013, equivalent to around 44% of its population. A 2013 report

found that the national average internet connection speed is 3.14 MB/s. As of

July 2013, China accounts for 24% of the world's internet-connected devices.