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Mercedes Company In China Pest Analysis Essay

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SECTION 1: PEST ANALYSIS Environmental analysis is the study of strategic tool management to pinpoint both external and internal environmental factors, which are powerful strategies, which can influence the entire organisation’s performance operation. It is very important for every business to consider the range of environment analysis in order to make any decisions. As we know, the successful business strategic planning will only be achieve if the organisation has intelligence knowledge of both the internal and external environment in which it operates in. here, PEST factors need to be analyse for the business company to make future strategy, forecast the trends and learn for the past mistakes. Hence, this analysis assignment will examine how this PEST factors potentially affect the selected company and the chosen country that is Mercedes Company in China. China is consists of one-fifth of the world’s population with 1.3 billion people, it is one of the fastest- growing regions …show more content…

This theory was discovered by American Michael Porter which can provide a simple basic perspective to analysing the competitive power and threat position of a corporation or business organisation. It is powerful tool for understanding where power lies in a business situation because it helps you understand both the strength of your current competitive position, and position that you are considering moving into. The forces also provide strategy, plans, and making investment decisions about a business or organisation. There five important forces that determine competitive power in a business situation such as: Threat of New market entrants, Competitive rivalry between suppliers, bargaining power of buyers, Power of supplies and Threat of substitute products (including technology

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