Country Ananlysis Pest

Country Analysis

By: Sumeet. S Asad Khan. Kanchan Sahare 1

The Europe of 27 • Total population: 493 million • 7% of world’s population. • 30% of global GDP. • GDP per inhabitant : EUR 21, 503(2004) • Geographical Area (in 1,000 Km²) 2

Accession negotiations: Chapters 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Free movement of goods Freedom of movement for workers Right of establishment and freedom to provide services Free movement of capital Public procurement Company law Intellectual property law Competition policy Financial services Information society and media Agriculture Food safety, veterinary and phytosanitary policy Fisheries Transport policy Energy Taxation Economic and monetary policy Statistics

19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35.

Social policy and employment Enterprise and industrial policy Trans-European Networks Regional policy and coordination of structural instruments Judiciary and fundamental rights Justice, freedom and security Science and research Education and culture Environment Consumers and health protection Customs union External relations Foreign security and defence policy Financial control Financial and budgetary provisions Institutions Other issues

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Previous enlargements 1951 ECSC: France,Italy, Germany, Belgium, The Netherlands, Luxembourg 1973: Denmark, Ireland, and UK 1981: Greece 1986: Spain and Portugal 1995: Austria, Finland and Sweden 2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia. 2007 Romania and Bulgaria

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The European Union on the map New Member States (2007) Bulgaria, Romania Candidate Countries Croatia; FYROM (Former Yugoslav Republic of Macedonia) - Negotiations not yet started; Turkey Potential Candidate Countries Albania, Bosnia and Herzegovina, Montenegro, Serbia (including Kosovo under UNSCR 1244)

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United in Diversity - The €uro

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True critical Exports of EU • • • • • •

Machinery: All of Europe. Automobiles: The UK, France, Germany, Spain and Italy. Aircraft: France and Germany. Electronics: The Netherlands, Germany and Italy. Military equipment: The UK, Germany, France, Italy. Food products such as wine, pastas, cheese, chocolates, beer and agricultural products: This spans both Western and Northern Europe.

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SWOT Analysis

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Strength 1. 2. 3. 4. 5. 6. 7.

Agriculture based Economy More than 72% population depends directly or indirectly on agriculture. GDP Variety in climates as well as culture in different states providing wide variety in agri products. Sizable and growing market EU-India trade doubled from €28.6billion in 2003 to over €55billion in 2007. EU investment to India has more than tripled since 2003 from €759million to €2.4billion in 2006 and trade in commercial services has more than doubled from €5.2billion in 2002 to €12.2billion in 2006. 9

Trade with EU(2007)

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Weakness 1. By 2010, 70% of Indian population will be youth, migrating from agriculture industry towards urban area due to up-gradation of std of living and education. 2. In addition to tariff barriers to imports, India also imposes a number of non-tariff barriers in the form of quantitative restrictions, import licensing, mandatory testing and certification for a large number of products, as well as complicated and lengthy customs procedures. 3. World Bank ranked India 120 (out of 178 economies) in terms of the 'ease of doing business. 4. Lack of irrigation. 5. Lack of technological Advancement.

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Opportunities • EU is Largest trade bloc in the world. • EU Contributes 30% in World Trade. • A successful conclusion of the Doha round would contribute significantly to a more open and stable environment for trade and investment for both the EU and India. India is also a major player in the DDA negotiations and, as a leader of the group of (advanced) developing countries known as the G20, has been one of the "G4", along with the EU, US and Brazil. • World’s most open market for goods and commodities from developing countries.

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EU/India trade in agricultural products 2002-2006

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Threats • US is the largest exporter of Agriculture product to EU. • Incompetency of indian in implementing the programme design for the development of the agriculture sector. • Transaction of economy from agribased economy to service based economy. 14

14 12 10 8 % 6 4 2 0

Livestock Bovine meat Sheep meat Pig meat Poultry Milk, conc. Butter Cheese Hides & skins Wheat Rice Barley Maize Sorghum Sugar, raw Sugar, refined Coffee, green Coffee, proc. Cocoa beans Cocoa, proc. obacco leaves ilseeds, temp. Oilseeds, trop. Vegetable oils Pulses Tomatoes oots & tubers Apples Citrus fruits Bananas tropical fruits Tea Cotton Average

Possible Change in World Prices from Doha Round

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PEST Analysis of EU

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Political analysis • EU health and safety legislation requires improved training and facilities. • Sophie is an active member of the AFE – an NGO. It promotes eco-tourism. • Sophie has to meet quality standards of the Logis De France. • Development of new motorway and airport. • EC effect the country’s decision. 17

Economical Analysis • Falling housing prices are causing increasing competition and falling holiday rents. • Availability of cheap land increased competition for Les M (Sanctuary). • The Sanctuary may increase labour shortages in the area. • The International Monetary Fund (IMF) indicates that the EU accounts for 31% of the global economic output. • The combined GDP of the EU nations exceed the GDP of the US. 18

Social Analysis • Low wages in rural areas . • Demographic changes have resulted in fewer young employees. • More young people moving to urban centres, such as Lyon. • Legislation to reduce problems of accidents (horse-riding) and improved hygiene with food preparation. • Offering accommodation to international students. • Eco-tourism benefits local communities and has activities that reduce the damage caused to local environment • New motorway and airport improves the infrastructure. 19

Social Analysis •

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Regardless of your place of residence, as a European Union worker you are entitled to take up an activity as an employed person in any Member State under the same conditions as nationals EC law states that any clause of a collective or individual agreement or of any other collective regulation concerning eligibility for employment, employment, remuneration and other conditions of work or dismissal shall be null and void in so far as it lays down or authorises discriminatory conditions in respect of workers who are nationals of other Member States. It is permissible for a level of linguistic ability to be required for access to employment: for instance, a satisfactory knowledge of the national language. The level of knowledge must be proportionate and reasonably necessary for the proper fulfilment of the tasks. National policies for the protection or the promotion of a language in a Member State comply with EC law.

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Social Analysis There are specific rules for certain categories of people, for example: 1. if you are a cross-border worker, i.e. if you live in one EU country but work in another and you go home at least once a week, there are special rules on healthcare and unemployment benefits; or 2. if you are temporarily posted by your employer to work in another Member State, you may, under certain conditions and for a limited period, still be insured in the Member State in which you normally work. 21

Technological Analysis • Technological • Internet and E-Commerce – because more people can book online. It also benefits with eco-tourism. • Setting up a website • Technological advancement in Agriculture. 22

Machinaries • Company name ASK • Product Resistance welding machine 1.Spot welding 2.Seam welding 3.Stretch Formers 4.Body Makers 5.Coolers

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Targeted market • Can Producers. • Merchant Exporters. • Can producers and Can Filling Companies.

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Mode of Export and Payment • FOB • 50% of the payment on placing the order and rest on delivery. • Minimum time required for development of the product is 2 months. • 2 months does not include transportation time. 25

Services • Visit from our side for starting up and enplaning the working. • Replacement of the spare parts except for the controllers, motors, Xsformers. • Spare parts include all the electronic components, Mechnical components for the working.

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Price • • • •

Seam welder ranging from 10 - 20 lakhs. Stretch Former from 10 - 15 lacks. Body Maker ranging form 20 - 30 Lakhs Coolers ranging from 50K to 1 lakh.

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Setup • Mumbai • Initial investment of 50- 60 lakhs. • Break even in 1 year.

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Working of the product

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Thank You

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