Ge Pestel Analysis

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Political
Politics highlight the role of nation governments, as the large global company, the firm has to deal with national political systems differently. The difficulties to negotiate with government conditions including tax systems, regulations and restriction which the firm has to adjust the service conditions and product requirements to get into the nation markets. These will be the huge impact which the firm has to be considered properly in order to work well with the governments and reach customer goals. However, The political conflict might have an effect on investment decisions of new entry. For example, according to Dibb and Lyndon, the research say that annually, firms in United States have to hand in tax returns to The Internal Revenue Authority on April 15th as the US government required. The other example is in Thailand. Due to inconsistency of Thai government, there was a political protester occurred in Bangkok public places such as national airport and many other important places which stop and extremely harm the economy. This shows the difference of political stability (Thailand's Protesters Highlight Rifts, 2009).

Economic
The fluctuation of national growth rate and fuel price is significant. It can be the greatly impact on the firm. Operational cost and labor cost have to be considered. The firm has to avoid both of deflation and inflation of every countries because the difference of economic growth and the external factors which will affect the firm such as the unpredictable situation which come from the fluctuation of currency exchange. The different currency exchange rate has an influence on the firm in order to predict an economic performance. The term of trade to comparing import price and export price also have to be considered in order to know the balancing payments which will be the main factor causing the currency exchange rate issue.

Social
It depends on changes of social trend which affect the national demand. There are...
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