PEST analysis of Siemens

Topics: Economics, Monetary policy, Economy Pages: 3 (703 words) Published: February 20, 2005
Siemens AG PESTLE Analysis

Political Factors

Siemens 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 US

Dollar and the euro, because a high percentage of the company's business volume is

conducted 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 clients

Siemens business has been negatively impacted by the prolonged economic downturn

in a majority of its markets worldwide. Investment sentiment continues to be weak for the

Company's customers in important industry segments and regional markets in the US,

Europe, Asia and South American (Data Monitor). Siemens' information and communications

business is particularly affected by the current market conditions in the...
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