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Pest Analysis Of Siemens

716 words - 3 pages

Siemens AG PESTLE AnalysisPolitical FactorsSiemens AG will be subject to legislation in any country within which they are operating. With the head office in Germany they are subject to German and European corporate law. In the U.K Siemens must obey English legislation specific to that market. For example The Trades Descriptions Act, which states that a company may not falsely advertise any of its products or services.Also effecting the company's operations in Britain are the Sale of Goods Act and the Consumer Protection Acts that enable the consumer to have certain rights if they are supplied with faulty or damaged goods.As a multinational company Siemens will be subject to the fiscal policies employed by governments within a number of countries, furthermore when products are being sold internationally there will also be import and export controls that will affect the company such as tariffs that must be paid.Economic Factors.Siemens AG is particularly exposed to fluctuations in the exchange rate between the USDollar and the euro, because a high percentage of the company's business volume isconducted in the US and has exports from Europe. (SWOT data monitor).The current conflict in Iraq has caused uncertainty in many world markets. The unstable that has come about as a direct result of this can have an effect on Siemens as they have a wide ranging portfolio that spreads across a number of different markets.The ongoing Economic downturn has lead to a decreased capital expenditure from clientsSiemens business has been negatively impacted by the prolonged economic downturnin a majority of its markets worldwide. Investment sentiment continues to be weak for theCompany's customers in important industry segments and regional markets in the US,Europe, Asia and South American (Data Monitor). Siemens' information and communicationsbusiness is particularly affected by the current market conditions in thetelecommunications industry. (Data Monitor)Lenders have said that are to increase the cost of borrowing due to actions of the Bank of England (Anova.com). When it becomes more expensive to borrow money people tend to spend less this is because they have to pay more back in interest. Disposable incomes...

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