Pestle analysis for Guangzhou, China
HOW THE FACTORS ARE AFFECTING THE
FACTORS
ENVIRONMENT
Communist party governs Guangzhou. There is a stable
political environment in Guangzhou. Chinese
government is open to all foreign direct investors,
which has resulted in a great economic growth. The
government is taking steps to enforce strict legal
POLITICAL FACTORS systems and hold the global market place.
The infrastructure of Guangzhou is very complex and
consists of services like power, water, telecom,
railways, airports, banking etc. The shipping company
here is ranked as one of the largest and is providing
ECONOMIC FACTORS services to all the major ports of the world (Xinhua net,
2003).
Guangzhou has a population of around 12 million. It is
the third largest city of China. Because of the growing
education, there are more number of students and has
SOCIAL FACTORS increased the literacy rates of around 92.8%.
The health care system in Guangzhou is increasing day
by day.
There are around 500 million Internet users. China has
crafted the world’s fastest supercomputer- Tianhe-1A.
The technology in Guangzhou is very cheap and is
TECHNOLOGICAL
having world’s third largest system in railway networks.
FACTORS
In order to have foreign investors the government of
Guangzhou has set up complete law system. All the
laws are in accordance with the model of the WTO.
Tax incentives for the industrialized segment are
provided for the Promotion of Investment. The sectors
in which the investment can be made in order to earn
LEGAL FACTORS profit are IT, real estate, tourism, environment and
manufacturing.
Shortage of clean drinking water because the industry
effluents are discharged directly into the water bodies
is one of the major environmental factors. There is a lot
of air pollution because the city relies maximum on
ENVIRONMENTAL
coal, which results in high emission of green house
FACTORS
gases.
1. Communist government has maintained stable political environment in
Guangzhou.
2. Shortage of clean drinking water because the industry effluents are
discharged directly into the water bodies.
3. The infrastructure of Guangzhou is very complex and consists of services
like power, water, telecom, railways, airports, banking etc.
4. There are around 500 million Internet users.
5. The health care system in Guangzhou is increasing day by day.
6. All the laws are in accordance with the model of the WTO.
7. The internet in Guangzhou is very cheap.
8. Because of the growing education, Guangzhou has increased the literacy
rates to around 92.8%.
Fig. 1
Refer to Fig. 1, a PESTLE analysis of Guangzhou tourism in China.
(a) Using the statement numbers complete the table below by giving one
statement under each heading.
POLITICAL ECONOMIC
SOCIAL TECHNOLOGICAL
LEGAL ENVIRONMENTAL
[6]
(b) Explain two benefits to countries, such as China, of doing a PESTLE analysis.
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