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INDIVIDUAL ASSIGNMENT GLOBAL

MARKETING
Fabio Massimo Benassi

BRIEF INTRODUCTION OF PESTEL ANALYSIS

To analyse the business trend, it is better to rely on accurate and timely analysis. There are various
methods to acknowledge the situation of a particular country, however one of the most complete
is the PESTEL analysis, which is an acronym:

• Infrastructure • Emerging
• Government type technolgies, web
Politics and policy Technology • Information and
• Funding, grants and communication
initatives • Level of innovation

• Economy growth • Weather, green and

• Inflation and ethical issues
Economy interest rates Environment • Pollution, waste,
• Labour and energy recycling
costs • Climate

• Population, • Regulation and

education, media standardization
• Lifestyle, fashion, • Employment law
Social culture
Legal • Copyrights,
• Health consumer
consciusness protection
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First country: Chile

Chile is a country located in the extreme southwest of America. It has a total area of 765,625
km². Its 18,580,000 inhabitants have one of the highest life quality in Latin America.

POLITICAL FACTORS
The Republic of Chile is a unified democratic state of a presidentialism nature, consisting of several
autonomous institutions that are part of a constitutional scheme. After the independence, Chile
had a very active involvement in his foreign affairs. Taxes follow an international regulation with
restrictions regarding trades.
The government biggest economic aim is to maintain a neoliberal economic that favours foreign
investment and international trade. Regulation of the Chilean economy by the government is
limited. The government is increasing the amount of foreign investment in the country by
introducing rules that permit privatization of Chilean state-owned ports, water-treatment facilities
and private investment in the construction.

ECONOMIC FACTORS
Chile’s economy is dominated by the industrial and services sectors which together
contribute to 96% of the GDP. Chilean GDP is 298,20 Billion USD and it is the 0.38% of the
world economy. Per capita GDP was estimated at USD 15130. Inflation Rate in Chile is around
2.49 %. An 18% VAT is applied to all sales transactions and accounts. There is a tariff (6%) on
almost all imports from countries that have not signed the free trade agreement with Chile.
Personal income taxes are applied only to individuals making more than US$ 6,000 per year.
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SOCIAL FACTORS
Spanish is the official language in Chile. Ethnic groups inside the country are the following:
white and white-Amerindian 95%, Amerindian 3%, other 2%. The most important religions
are: Roman Catholic 89%, Protestant 11%, Jewish NEGL%.
Family occupies a central role in Chilean life and frequently congregates for celebrations.
Family and business are linked, in fact many small firms are 100% family run.
Today Chile’s social structure can be roughly divided into three classes and it is possible to
move either upwards or downwards depending on salaries.
The Chilean health system has a strong private component.
Businesses have discounts on tax for their donations to educational institutions.

TECHNOLOGICAL FACTORS
Chile has taken the lead regarding the technological development in Latin America. Total
expenditure per inhabitant in Information and Communications Technologies rose by 19.2%,
reaching US$ 442, higher than all of the other countries in the region.
In the last years Chilean government has created a link between national R&D institutions and
private industry, allowing private companies to reduce their research cost s and benefit from
government R&D.
In 2010, the Chilean Government created a program called Start-Up Chile that aims to attract
foreigners, high-potential entrepreneurs to start their businesses in Chile with the end goal of
converting Chile into the innovation and entrepreneurial hub of Latin America .

ENVIRONMENTAL FACTORS
Chile's length causes considerable climatic differences between the various regions. The
northern regions of Chile, almost entirely desert, are some of the driest regions in the world.
In the central ones, instead, temperatures are Mediterranean, with cool summers and mild
winters. The southern regions are characterized by great rainfall, intense cold and strong
winds.
Chile's main environmental problems are deforestation and the resulting soil erosion .
Water and air pollution from industry and transportation are really strong in urban centres.
Chile is one of the major mining countries of the world and big-scale mining represents an
important environmental challenge for the government, since it is really pollutant.
Lack of water affects many local communities, not only for the persistent drought but also for
structural problems in the policies governing the exploitation of natural resources.

LEGAL FACTORS
The current constitution was approved on September 11, 1980 by the military regime of Augusto
Pinochet. Civil law was influenced by west European legal system. Judicial review of legislative acts
shall be carried out by the Constitutional Court. The majority of licences is specially used by
Chilean universities and companies in the mining and chemical industries.
Labour laws are applied to both national and foreign citizens who are employees in Chile. Foreign
laws are used in labour relations with foreign countries.
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SUMMARY REPORT
Chile should develop the venture capital market and promote innovative entrepreneurship. There
are great opportunities in the energy sector, in particular in renewable energy, in the
infrastructure sector, in the agro-industry and in the biomedical sector. Chile is characterized by its
political and macroeconomic stability, with a high degree of efficiency and a high level of
investment protection. Chile, due to the large number of trade agreements signed (26 agreements
in force) can be considered as a 'platform country' from which it is possible to reach important
markets, such as Latin America and the Asia-Pacific area.

Second country: Rwanda

Rwanda is in East Africa. It borders with Democratic Republic of Congo to the west, Uganda to
the north, Tanzania to the east and Burundi to the south: it has a total area of 26,338 km².
Rwanda’s economic growth, as shown by trends in real GDP, is rising, thanks to the good
performance of the tertiary and secondary sectors.

POLITICAL FACTORS
From a political point of view, Rwanda had to deal with years of huge instability; this has led
to internal struggles between different ethnic groups, until the bloody genocide in 1994,
when almost one million people of the Tutsi ethnic group were massacred by the Hutus.
Rwanda is a member of the UN, the African Union, of the WTO and, since 2009, of the
Commonwealth of Nations. Rwanda is a presidential republic with a bicameral parliament.
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ECONOMIC FACTORS
Rwanda is one of the poorest states of the world: it has a poverty index of 44.5%. The causes
of this economic weakness are the distance from the sea, the economic dependence on tea
and coffee export and the precarious political situation. Despite recent attempts to boost the
economy by improving local infrastructure, the Rwandan state is still heavily dependent on
foreign funding from EU countries. The Rwandan government under the actual president
Kagame has tried to expand the national economy doing international investments, reducing
corporate taxes and eliminating taxes on exports.
Rwanda's real GDP was around RWF 6304 billion in 2018 whereas the nominal GDP was RWF
6618 billion. This resulted in GDP deflator (104.981). Per capita GDP was estimated at USD
729.

SOCIAL FACTORS
There are 12,120,667 Rwandan inhabitants. The population density is among the highest on
the African continent because of the healthy climate. The most common ethnic group is Hutu
(84%), followed by Tutsi (15%) and Twa (1%).
The official languages are Kinyarwanda, Swahili, French and English. With the intensification
of relations with the United States of America, English has become the official language of the
school system. The literacy rate among adults in Rwanda is 70.7%, one of the best among the
countries with low human development index.
Thanks to an important battle for gender equality Rwanda has the highest percentage of
women in parliament in the world.

TECHNOLOGICAL FACTORS
There is a constant rise of technology and information. However, this does not get rid of the
fact that the country is still facing many technological difficulties: in fact, only 3.1 % of the
people uses Internet and less than 0.5% has a personal computer.
Government policies to promote the technology and communications sectors are also
stimulating entrepreneurial creativity: the government ambition is to transform Rwanda into
the "Singapore of Africa", a regional high-tech hub.

ENVIRONMENTAL FACTORS
The territory is mainly mountainous. The mountain range acts as a watershed between the
basins of the two major rivers in the area, which are Nile and Congo. Rwanda is located in the
equatorial belt, but, thanks to its altitude, has a temperate climate, comparing it among the
healthiest African countries. The country is full of protected areas and natural reserves.
Biomass is the principal source of energy since it provides 94% of national needs. Wood fuel
and plant residues are used for cooking and in industries as a source of primary energy. The
waste management is an important environmental challenge, particularly in urban areas.
However, the Kigali Master Plan 2040, a sustainable urban planning is now taking place in t he
capital city.
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LEGAL FACTORS
Rwandan law is inspired by the Belgian model.
The Constitution of the Republic of Rwanda constitutes the basis for the legal framework for
the protection and safeguarding of the environment. This constitution provides a framework
for the formulation, review and updating of sectoral laws for a better protection of the
environment, as well.

SUMMARY REPORT
Environmental protection must be one of the pillars of the vision for the future. The
Government goal is to build a nation in which the pressure on natural resources, particularly
land, water, biomass and biodiversity, is significantly reduced; and in which the management
and protection of these resources are rational and well-regulated, in order to preserve the
basic wealth necessary for sustainable development.

Third country: Vietnam

Vietnam is a state in Southeast Asia. In the North, shares a long borderline with China.
Vietnam borders with the Gulf of Tonkin in the East, the South China Sea in the Southern East,
the Gulf of Thailand in the Southern West, Cambodia and Laos in the west, with a total area
of 331,689 km². The country is experiencing a rapid economic and social growth, which over the
last two decades has stabilised at 8% of GDP on an annual basis, reducing poverty and promoting
wage growth.
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POLITICAL FACTORS
Vietnam is a constitutional socialist republic; the current head of state is Nguyễn Phú Trọng,
who is also General Secretary of the Communist Party of Vietnam. The Vietnam Communist
Party is a political organization, it plays a critical role in the political and legal life of the
country.
Vietnam's foreign policy is open to all countries in the world, with whom has commercial and
diplomatic relations.

ECONOMIC FACTORS
In 1986, the government launched a series of economic and political reforms called Đ ổi mới,
which opened Vietnam to the free market and to the world economy.
Vietnam’s real GDP was around VND 3054470.219 billion in 2018 and the nominal GDP was
VND 4502732.989 billion. This resulted in a GDP deflator (147.415). Per capita GDP was
estimated around USD 2173.27.
The most profitable and developed sectors in the country are: construction and
infrastructure, furniture and textiles, footwear and agricultural products.

SOCIAL FACTORS
There are 94,587,667 inhabitants in Vietnam. The population density is among 270 ab/km².
It is largely composed of young people. One of the government aims is to reduce the rate of
population growth.
The majority of the Vietnamese population is Buddhist. The official spoken language is
Vietnamese.
In Vietnam, all schools were nationalised after the reunification of the country and education
was made compulsory and free. 90% of the population has access to the national health
system, a high result compared to other developing countries.

TECHNOLOGICAL FACTORS
Vietnam is far behind in the technological development (102nd in the world).
Vietnam ranks comparatively well on innovation and sophistication factors suggesting
promising potential for the future and Ranks 76th on innovation.
Vietnam’s ICT market is expected to continue its growth between 2018 and 2020, due to the
government desire to turn Vietnam into an ICT power.

ENVIRONMENTAL FACTORS
The territory is characterized for 80% by hills and mountains with a thick vegetation, while
only the remaining 20% is made up of flat areas.
Vietnam has considerable energy resources such as oil, gas and coal and its 41,000 km long
waterways provide the basis for hydropower. The country is rich in minerals.
According to the State of the Environment 2011 published by the government, the main
issues are land degradation, forest degradation, water and air pollution. More recently,
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climate change was added as a major concern because Vietnam is considered to be one of the
most seriously impacted by climate change.

LEGAL FACTORS
Vietnam has signed its Constitution in 1992 to reinforce its legal institutions and to operate
its party-led economic reform, in order to create a favourable environment for the
development of a multi-sector market and investments.
Vietnam has signed and acceded to various bilateral and multilateral arrangements o n
investment, such as agreements for the promotion and protection of trades with 46 countries
and territories.

SUMMARY REPORT
A great abundance of youth labour, good education and Asian discipline, combined with a vibrant
commercial culture, make Vietnam one of the countries with the best prospects for economic
growth in the next decade.
Despite the complicated global scenario, the economic outlook remains favourable. Positive
elements of Vietnam are political stability, continuing economic growth and domestic
consumption thanks to the young population.
Other factors to consider are: the decreasing inflation, projects privatisation and opening up to
foreign investment, the wide availability of agricultural products and natural resources and
significant potential in the tourism.