Glasgow 2014 commonwealth game

Topics: Tax, Tourism, Inflation Pages: 7 (3114 words) Published: December 7, 2014
Glasgow 2014 commonwealth game
Introduction
The commonwealth game is a well-known special sports event, which take places every four years since 1930. This year, Glasgow will be the host. Germany would be a huge and brand new target for it. There are lots of advantages to expand the German market. So, there will be a P.E.S.T analysis of Germany as follow, which will show the internal, micro and macro marketing environment for the country. Then, the proposal will focus on the 7Ps marketing mix for the Glasgow commonwealth game, which will analyse the aims and target customers for the company. P.e.S.t analysis

First of all, the P.E.S.T analysis of Germany would help the organisation to analyse the marketing environment through political, economic, social cultural and technological sides. Political aspect of Germany

Germany is a federal parliamentary republic country in Europe. Government affairs, such as Foreign affairs, military and currency are under the jurisdiction of federal. The government of Germany could be divided into three main parts- legislature, executive and judiciary. Yet, different departments would response and engage to these components. Federal Parliament responses to legislature, Federal government responses to executive and Federal constitution court responses to judiciary. Then, Germany is VISA free and VISA on arrival access to more than 170 countries. There are no VISA requirements when resident of Germany visit countries such as United Kingdom, Spain and Sweden. Moreover, there are low VISA requirements for EU nationals. Residents from the EU countries only need to bring their ID with them to enter Germany. For non- EU nationals, people are no need to apply for a VISA when they stay less than 90 days in Germany. Since Germany is a part of the European Union, the union had signed some VISA facilitation agreements with different countries, such as the Russian Federation and Ukraine. The agreements simplified the process of applying for the VISA. For example, less documentary evidence required and shorted length of the process. There is a complex tax system in Germany. However, it could be divided into two categories- German taxes and income taxes. Vehicle tax, audiovisual license fee, property tax, VAT, dog tax and church tax are the basic tax the residents from Germany need to pay. The most common one is the VAT. The latest current VAT rate in Germany is 19%, but the VAT for foods, magazines and books is 7%. Corporate tax, personal taxation, double taxation, freelancer tax are included in the income taxes. The corporate tax is charged for businesses. In 2013, the rate was 15%. Then, personal taxes are another typical income tax. The taxation is progressive, which means taxes requirements depends on the income level of a resident. The higher income level represents the higher rate of taxes people need to pay. For example, when the income is between 0-8130 EUR, then they do not have to pay tax. When the income is between 8131 -52881 EUR, people have to pay14% for taxation. Economic

Since the country is a part of the European Union, Germany has to share a single currency with other 17 European countries such as France. The currency named Euro. Then, the exchange rate of EUR to GBP in April 2014 is 1: 0.828. On the one hand, the exchange rate of EUR to U.S dollar in the same period of time is 1: 1.3887. This means people who own Euro would have less purchasing power in the United Kingdom but have more purchasing power in the United States. After that, the disposable income is measuring the amount of money people are able to spend after paying taxes and pension contributions to the local government. The higher amount of disposable income means people have more abilities to buy. The total disposable income of Germany is 440.89 million in 2014, which rose rapidly since 2010. This results shows the resident of Germany have high purchasing power. So, they may have extra money to spend on tourism...
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