Lovely Professional University
Department of Management
MGT554: Business Environment
(Topic: Pestle Analysis of Germany)
Two of Germany's most famous writers, Goethe and Schiller, identified the central aspect of most of Germany's history with their poetic lament, "Germany? But where is it? I cannot find that country." Until 1871, there was no "Germany." Instead, Europe's German-speaking territories were divided into several hundred kingdoms, principalities, duchies, bishoprics, fiefdoms and independent cities and towns. Finding the answer to "the German question"--what form of statehood for the German speaking lands would arise, and which form could provide central Europe with peace and stability--has defined most of German history. This history of many independent polities has found continuity in the F.R.G.'s federal structure. It is also the basis for the decentralized nature of German political, economic, and cultural life that lasts to this day.
POLITICAL ASPECT OF THE COUNTRY:
The government is parliamentary, and a democratic constitution emphasizes the protection of individual liberty and division of powers in a federal structure. The chancellor (prime minister) heads the executive branch of the federal government. The duties of the president (chief of state) are largely ceremonial; the chancellor exercises executive power. The Bundestag (lower, principal chamber of the parliament) elects the chancellor. The president normally is elected every 5 years on May 23 by the Federal Assembly, a body convoked only for this purpose, comprising the entire Bundestag and an equal number of state delegates. President Christian Wulff (Christian Democratic Union - CDU) was elected on June 30, 2010.
The Bundestag, which serves a 4-year term, consists of at least twice the number of electoral districts in the country (299). When parties' directly elected seats exceed their proportional representation, they may receive additional seats. The number of seats in the Bundestag was reduced to 598 for the 2002 elections. The upper chamber or Federal Council consists of 69 members who are delegates of the 16 states. The legislature has powers of exclusive jurisdiction and concurrent jurisdiction with the in areas specified in the Basic Law. The Bundestag has primary legislative authority. The upper chamber or Federal Council must concur on legislation concerning revenue shared by federal and state governments and those imposing responsibilities on the states.
Germany has an independent federal judiciary consisting of a constitutional court, a high court of justice, and courts with jurisdiction in administrative, financial, labor, and social matters. The highest court is the Federal Constitutional Court, which ensures a uniform interpretation of constitutional provisions and protects the fundamental rights of the individual citizen as defined in the Basic Law(23 May 1949) become constitution of the united Germany 3 October 1990 . Major political parties: Social Democratic Party (SPD); Christian Democratic Union (CDU); Christian Social Union (CSU); Alliance 90/Greens; Free Democratic Party (FDP); Left Party (LP). Suffrage: Universal at 18.
ECONOMICAL ASPECT OF THE COUNTRY:
The German economy the 5th largest economy in the world and Europe’s largest. Is a leading exporter of machinery, vehicles ,chemicals ,and household equipment and benefits from highly skilled labour force . Embarking on modernization and integration of Eastern German economy-where unemployment can exceed 20% in some municipalities-continues to be costly long term process with annual transfers from the west to east amounting in 2008 to roughly $12 billion. Reform launched by Government of Chancellor Gerhard Schroeder(1998-2005). * Addressing chronically high unemployment and low average growth. * Which resulted to strong...
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