Pest Analysis Croatia

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Pest Analysis Croatia

 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

PEST-Analysis Croatia

 

Content
Introduction………………………………………………………………………………page 3 Political Environment……………………………………………………………………page 4 Economic Environment………………………………………………………………….page 4 Social-Cultural Environment…………………………………………………………….page 6 Technological Environment……………………………………………………………...page 7 References………………………………………………………………………………..page 8

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PEST-Analysis Croatia

 

Introduction
In recent years globalization forced not just companies, but also countries to compete in global markets. The developed nations such as Western Europe and North American countries had to look for the best possible way to secure profits and therefore were looking for partner companies and countries all around the globe. The less developed nations and emerging economies such as the BRIC nations or Eastern and South Eastern Europe nations are particularly willing to become such a partner. FDI, Foreign Direct Investment is what they are looking for, to increase their GDP and higher national income. Whether it is China, known to be the worlds’ workshop of the 21st century, or India known as the IT-ServiceOutsourcing super power, they are all due to the latest developments of going global. The following Analysis will focus on the South Eastern Europe Republic of Croatia and give an overview of its Political, Economical, Socio-Cultural and Technological Environment. As a candidate for European Union (EU), Croatia is increasingly targeting Western European FDI. With its capital Zagreb, being the center of economical and political development, the former Yugoslavian country had to recover from the Balkan wars and position itself newly in international competition. The 4.5 million inhabitants speak Croatian and have German and English as secondary languages from minor school levels on.1 Today there is an especially good connection to Austria and Germany, not just politically but also in terms of trade and economic development.2 Croatia’s Fig.

 1:
 Location
 of
 Croatia
 (CIA
 world
  factbook
 Croatia)

location at the Adriatic Sea (Fig. 1) is a major reason for the increase in tourism and trade earnings. The country

is heavily focusing on further investment in these two business sectors and is able to rely on their good infrastructure of roads and rails.3

1 2

Economist Intelligent Unit, Croatia (2011) German-Croatian Chamber Of Commerce (2008) 3 CIA World Factbook, Croatia (2011)

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PEST-Analysis Croatia

 

Political Environment
The Republic of Croatia is set up as a presidential/parliamentary democracy. President Ivo Josipovic (Social Democratic Party of Croatia, SDP) is the head of state and rules the country from its capital Zagreb. Prime Minister Jadranka Kosor (Croatian Democratic Union, HDZ) is the head of government. The president is elected by popular vote for a five-year term (eligible for a second term); Election was last held on 10 January 2010. The leader of the majority party or the leader of the majority coalition usually appointed prime minister by the president and then approved by the assembly.4 Additional facts: • • • • • Divided into 20 counties Civil law system based on Yugoslav civil codes Part of UN, NATO, WHO, WTO, IMF, and many more EU candidate Constitution adopted 22 December 1990; revised 2000, 2001

Due to the Yugoslav Wars also the Croatian War of Independence took place from 1991 to 1995. Croatia decelerated its Independence on June 25th 1991. Nevertheless, Croatia had to defeat its boarders and indecency against Serbia. It ended with the Erdut Agreement November 12th 1995.5 Today Croatia is seen as a relatively stabile political environment. Due to the participation in the most important global organizations and...
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