SWITZERLANDA country overview : PESTEL Analysis

Presented by- Dhaval Bhatkar

SWITZERLAND FLAG

The White cross on the top of the Red background represents Faith in Christianity.

Now it also represents Neutrality, democracy, peace & refuge.

• Switzerland is a mountainous Central European

country, home to numerous lakes, villages & the

high peaks of the Alps.

• Its cities contain medieval quarters, with landmarks

like capital BERN’S CLOCK TOWER &

LUCERNE’S WOODEN CHAPEL BRIDGE.

• The country is also known for its ski resorts and

hiking trails.

• Banking and finance are the key industries.

• Swiss watches and chocolates are world renowned.

OVERVIEW OF COUNTRY

WOODEN CHAPEL BRIDGE

CLOCK TOWER

SWITZERLAND MAP• Switzerland is located at the central

part of the European continent. • It is a landlocked country: Bordered

by Italy in the south , Germany in the north, France in the west, Liechtenstein and Austria in the east.

• Territory divided into 2 parts by The Alps: The Central Plateau & JURA

• CAPITAL- BERN

• LARGEST CITY- ZURICH

• OFFICIAL NAME- SWISS CONFEDERATION

• CURRENCY-  Swiss franc i.e. CHF 1 CHF = 68.12 Rs.

• POPULATION-  8.081 million

• LITERACY RATE- 99%

• POPULATION- 8,379,477

• AREA- 41,285 km²

ZURICH

FACTS

• SPORTS- Skiing, snow-boarding & mountaineering.

• MUSIC- Music festivals ranging from classical to rock.

• SCENIC BEAUTY- Crystal clear mountain lakes.

SKIING SNOW BOARDING MOUNTAINEERING

•OFFICIAL LANGUAGES- French, German, Romansch, Italian.•GOVERNMENT- Federal state with parliamentary system & direct democracy.•SPECIALITIES- Fresh potatoes & cheese Rosti(roasted potatoes), Fondue(kind of heavy soup consisting melted cheese),Raclette (melted cheese) & more exquisite ingredients like chocolate.

ROSTI FONDUE RACLETTE

SOCIO-CULTURAL FACTORS

Demographic Analysis• Switzerland ranks number 97 in the list of countries by

population.• Population :- Growth rate is 0.71 %.

73.4 % of the population is urban .• Official Languages :- French, German, Romansh, Italian.

although English is becoming increasingly popular.• Religion :- 38% are Roman Catholic, 27% Protestant,7.5% Old

Catholics, 5% Muslim, 0.5% Buddhist,0.5% Hindus, 0.3% Jewish 0.2% Non-christians, & 22% are unaffiliated with any religion.

• Life expectancy :- 82.5 years• According to WHO, Swiss men have the longest life expectancy in

the world.

Family Life• Family size :- Majority couples have 1 or 2 children.• In Switzerland large flats are extremely expensive and

there is shortage of affordable childcare.• Almost half of marriages in Switzerland ends in divorce.• Switzerland has the third highest salary and job security

out of all OECD countries

Education• There are both public and private schools, including many

private international schools.• The Swiss are an educated population in 2015,The Swiss

government forecasts the number of people aged 25–64 with post-secondary education will rise to almost 60 percent in 2040.

• Teachers in Switzerland are among the highest paid.

Culture• Folk Festival :- They perform their dances mainly at folk festivals,

& traditional events (a folk festival at which people wear traditional costumes). One unique dance form is the traditional 'Bödälä‘.

• In which dancers stamp their feet on the floor in an expressive, rhythmical manner.

• Swiss culture is characterized by diversity, which is reflected in a wide range of traditional customs.

National Taste• The Swiss eats more chocolate

than any other nation in the world. On an average 23 pounds of chocolate is consumed by Swiss person in a year.

• Switzerland is the place where you can find the finest quality of cheese. It is home to about 450 varieties of cheese.

Buying Behavior• Swiss luxury shoppers are less interested in buying new

brands and they are more likely wanting to support their local economy.

• Quality is key : The Swiss are more likely to look for value for money rather than design or brand reputation.

Female work force:-• Women earn on average 20% less than men in Switzerland, • Seco encouraging business companies to "appoint more

women to top-level positions".

TECHNOLOGICAL FACTORS

Technological Facts

• Switzerland invests over 3% of its GDP in R&D.• Big technology companies such as Google has set up its

European engineering headquarters in Zurich, and Yahoo also.

• World class institutes such as European Organization for Nuclear Research (CERN) and Paul Scherrer Institute (PSI) are based in Switzerland.

• Switzerland ranks within top 10 in the Global Technology Index, which is a broad assessment of the technological and innovative capabilities of the world’s leading nations.

More facts…

• It has highest number of Nobel prizes – 25 Nobel Laureates with Swiss citizenship which marked the history of Scientific Research.

• The Swiss National Science Foundation is Switzerland’s foremost institution I the promotion of Scientific Research and for the support of scientists and projects.

ECONOMIC FACTORS

• The Swiss economy benefits from high levels of flexibility and institutional strengths that include strong protection of property rights and minimum tolerance for corruption.

• An independent and corruption-free judiciary enforces contracts effectively.

• Openness to global trade and investment has enabled Switzerland to become one the world’s most competitive and innovative economies.

• Switzerland is a modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world.

• Top 3 Trade Partners (2014): Germany, United States, and United Kingdom

• Top 3 Exported Goods (2014): Precious Stones & Metals, Pharmaceuticals, and Industrial Machinery

• Top industries: Machinery, Chemicals, Watches, Textiles

Quick Facts • Population:

– 8.1 million • GDP (PPP):

– $472.8 billion – 2.0% growth– 2.0% 5-year compound annual growth– $58,087 per capita

• Unemployment: – 4.5%

• Inflation (CPI): – 0.0%

• FDI Inflow: – $21.9 billion

POLITICAL & GOVERNMENT FACTORS

Head of Swiss economics deptCurrent President.

• Johann Schneider-Ammann Since, 1st January, 2016

Switzerland's Constitution & Federalism

• The federal constitution defines Switzerland as a federal state composed of 26 cantons

• Switzerland's government, parliament and courts are organized on three levels : A. FederalB. Cantonal (based on 26 cantonal constitutions)C. Communal

Political Map of Switzerland's Cantons

Switzerland's Federal Two-Chamber Parliament

• National Council:- National Council is Switzerland's "house of representatives". The 200 members are elected every four years according to a refined proportional election system, but since every canton forms a constituency and cantons have extremely different numbers of inhabitants, a few smaller cantons may only send one member to the national council, which results in majority elections for these council.

• Council of States: -Council of States represents the cantons (like the U.S. senate). Full cantons send two members, half cantons one, giving a total of 46 members. The rules how to elect the members are made under cantonal legislation, so they may differ from canton to canton. A majority of cantons does elect their members of the Council of States every four years on the same day as the members of the National Council.

Departments and Heads of Switzerland's Administration

Department Head (Minister) Party

Internal Affairs Alain Berset Social Democrats

Foreign Affairs Didier Burkhalter FDP The LiberalsEnergy, Traffic and Environment Doris Leuthard Christian Democrats

Defense and Sports Guy Parmelin Swiss People Party

Justice Simmonetta Sommaruga Social Democrats

Economy and Education

Johann Schneider-Ammann FDP

Finances Ueli Maurer Swiss People Party

INTERNATIONAL TRADING FACTORS

Trade Agreements

●The Free Trade Agreement, 1972

●The Insurance Agreement, 1989

●The Bilateral Agreement, 1999

Imports & Exports

Swiss Imports● Mineral Resources● Machinery● Agricultural products● Cars● Chemicals● Raw materials

Swiss Exports● Watches & clocks● Chocolates● Cheese● Gold● Wine● Medical products● Jewellery

NATURAL FACTORS

Water Resource:-

● Water is chief natural resource.

● The main source of water - runoff from glaciers of The Alps.

● The Swiss have used energy for productive uses.

● Self sufficient to create electricity.

Animal Resource:-

● Large number of Brown Swiss cows.

● Found on slopes of The Alps.

● Quality of milk is unique.

● Excellent quality of cheese is prepared

Land Resource :-

● 11% used for agriculture.

● 30% covered by forests.

● The mountainous landscape is used by tourism industry.

● Lifetime experiences to tourists by adventure sports.

Mineral Resource :-

● Mineral resources are limited.

● Granite, limestone, marbel, gravel & salt are available

● Small deposits of iron and manganese ores are found

RECOMMENDATIONS● Swiss companies could set up their cheese & chocolate

manufacturing units in the state of Gujarat which would help the farmers in Gujarat.

● Indians will get good quality of cheese and chocolates at an reasonable price.

● Production of hydroelectricity power could also be learnt from the Swiss people as India has enough water bodies to produce hydroelectricity.

● The adventure sports could also be promoted in the states like Himachal Pradesh, Uttarakhand so that would help in increasing tourists in India, thus generating income in the country.

● All this factors could help to generate good employment opportunities in our country.

THANK YOU