The business environment analysis is being termed as a most critical element of business planning and expansion decision. In this regard, the PESTLE analysis examines six critical factors such as political, social, economic, technology, legal and environmental that are playing a critical role in the growth and stability of country. In similar way, SWOT analysis supports in assessing the strength, weakness, opportunity and threat of an organisation or country that may have a significant impact on the efficiency of business decisions. The report applies PESTLE and SWOT analysis of France to support the business expansion decisions of companies like Remoffice. This investigation concludes that France would be emerged as great option for Remoffice to expand business in new locations due stable political and economic system with a significant advancement in new technologies. Business dissertation help is very important for students navigating through such practices, providing them with the most comprehensive insights into strategic processes of decision-making.
The international trade operations play a critical role in influencing the sustainability of business operations. This report applies the PESTLE and SWOT analysis of France to evaluate different elements of business environment (Melo & Stockemer, 2014). This assessment supports the management of Remoffice in the business expansion decisions.
France is being emerged as one the biggest country of Europe and it offers appropriate environment for grow the business operations. In the context of globalisation, the France gas gained a significant a success to attract of foreign companies and investors to manage the business operations in France (Amable, Guillaud & Palombarini, 2012). For the assessment of environmental context, the PESTLE analysis has been emerged as a great tool to evaluate different factors that are having a significant influence over the business planning and decision making (Andersen & Evans, 2018):
The France is termed as the largest country of European Union. The country has stable and strong political system that provides appropriate opportunities to individuals and businesses to stimulation the social and economic growth. It is considered as republic country that is governed by constitution (Adams, 2019). The constitution is also called as Fifth Republic that was being established in 1958 and it offers significant power to parliamentary system so as people get appropriate voting rights and equal opportunities. The President of France is known as head of state and head of executive (Suleiman, 2015). Moreover, an appropriate Council of Ministers supports top authorities in decision making process. This type of political system has been found very effective in establishment a stable environment for businesses. In similar to other republic countries, president appoints the prime minister. Further assessment of political system of France has disclosed that the French parliament is being established with the two houses that are also called as chambers. The lower or the principal house of parliament is termed as the national assembly; and the second chamber is called the Senate (Andersen & Evans, 2018). All members of parliament are elected by general election. In the political system, several parties are going to participate in different elections. Currently, France has been governed by a new political party that is called ‘Les Républicains en Marche’ (LREM) that was found in 2016. Moreover, several other parties such as like LREM and other are working on centre left. For developing an efficient political structure, French government is looking to accept new political and economic reforms for removing the deviations and weakness of existing capitalist system because it has been emerged as key driver of difference between income and wealth of rich and poor people (Amable, Guillaud & Palombarini, 2012). The government of France is focusing to enhance security of citizen so as some new reforms have been considered to protect citizen against terrorism. These practices would provide a secured environment to different companies. Therefore, the management of Remoffice would assess a secured and stable political environment in France and it would enhance overall business capabilities in the business expansion decisions in an efficient manner (Amable, Guillaud & Palombarini, 2012). In the context of political system, Franco-British Chamber of Commerce and Industry is influencing the commercial relationship between countries that plays a critical role in developing a variety of business opportunities in an efficient manner. The French government has adopted the Balance Trade Policies that provides access of French companies in foreign market but also preserves some preferences to manage fair competition among companies (Bocquier & Darmon, 2015). Moreover, the French Government Council is focusing to adopt some trade deference policies to protect some strategic sector by increasing the anti-dumping duties and improving the monitoring of foreign investment. In some trade defence policies may leave some adverse impact on the investment on the foreign companies on some strategic sector (Galbis, Wolff & Herault, 2020). In addition to that, French government removes the tariffs and non-tariffs or other barriers to support the small and medium-sized businesses that would create several business opportunities for small companies. On the other hand, the complexity in labor laws and higher cost of employment along with strict regulatory environment may leave adverse impact on easy of doing businesses practices in country (Jabeur, 2020).
The French economy was being expected to fall towards the bankruptcy in similar to other EU countries during the financial crisis but the strong governmental support or reforms within the financial and banking sector avoided the situation of bankruptcy. However, the France was suffered the economic shrunk within two recessions that was near to 0.2%. However, several other reforms have enhanced the strength of financial system and economic conditions of business (Bocquier & Darmon, 2015). The France the gross domestic product (GDP) was recorded near to 2315.37 billion in 2019 but the outbreak of covid-19 would reduce the country’s GDP by 12.5% that could be near to 2025.95 billion in 2020 (France PESTLE Analysis & Macroeconomic, 2021). However, strong economical potentials will provide new opportunities to companies for expanding the business operations in the country. Moreover, the output gap for France in 2019 was found positive at the rate of 0.113% of the GDP of county. Moreover, France government’s revenue was being estimated at Euro 1266.54 billion in 2019 whereas the total government expenditure was recorded near to Euro 1346.08 billion (Galbis, Wolff & Herault, 2020). Moreover, the assessment of inflow and outflow funds recorded the negative value in the country’s net lending / borrowing negative that is Euro 79.537 billion in 2019 so as it can be stated the government agencies were not found appropriate financial resources for boosting the economic growth of country (Galbis, Wolff & Herault, 2020). However, the new reforms could facilitate business opportunities for companies like Remoffice to initiate the business operations in new emerging markets. Furthermore, the current account balance for France has remained negative since 2014 that was reached near to USD -10.218 billion for the period of 2019 and it has been expected that it would be decreased at a CAGR of 20% and it would be reached at the USD -25.433 billion till 2024 (Adams, 2019). This negative current account balance determines the France is always looking for FDI’s and other overseas of investments so as various international companies could find appropriate opportunities to expand the business in France. Moreover, the report of the World Bank about the ease of doing business has determined that France got ranking of 32 out of 190 countries in 2019 so as the ranking of France was remained unchanged because appropriate government and financial support along with emergence of various business opportunities. The assessment of key GDP drivers of France has determined that the manufacturing industry, service industry and agriculture had a share of 19.5%, 78.8% and 1.7% respectively within of total GDP in 2017 (Adams, 2019). In the context of service sector, office spaces are being perceived as key requirements. Therefore, the high growth of service sector in France could influence the demand of services provided by Remoffice. However, the high taxation rate creates several issues for business communities (Adams, 2019). On the other hand, the French economy has gained a stable growth with manufacturing, It services, electronics, manufacturing machinery, cosmetic and others. Overall, it can be stated that France economy has strong potentials to support international trade and it may leave positive impact over the new businesses from overseas markets.
The evaluation of social factor has disclosed that the total population of France would be increased to 67 million in 2021. It has maintained the highest number of children per women (Demographics in France - Statistics & Facts, 2021). However, the aging has been perceived as the most critical problems identified in French society because the population of people above 65 years is increased to 13.45 million in 2020 that is near to 5.9% of total population of country. However, 17% of population is associated with below 15 (Demographics in France - Statistics & Facts, 2021). The increase in number of old age people puts the health challenges of domestic government. Moreover, the evaluation of rate of urbanisation ha disclosed that 80% of French population is living urban areas that plays a key role in influencing the market demand of different goods and services to manage different lifestyle needs. In addition to that, the global immigrant have played a critical role in developing a multicultural society so as various businesses have found several business opportunities to meet the needs and expectations of people associated with different culture (Kahouli, 2020). However, the disparity in classes has been termed as key drivers of youth clime rate that has been increasing year-by-year. Therefore, companies are facing some issues due regular strikes of worker, low productivity and others. In addition to that, the country has also addressed racial and regional violence that increases the instability within the social structure of country. Apart from that the high unemployment rate is being termed as key problem of French society that may leave adverse impact on the market demand of different products and services along with the GDP growth of country. in 2019, the unemployment rate in France was 8.45% of total workforce (Jabeur, 2020). Moreover, the outbreak of covid-19 has slowdown the economic activities that could increase the unemployment rate that would be increased by 18.73% and total unemployment rate was being reached to 10.39% in 2020 (France PESTLE Analysis & Macroeconomic, 2021). The increase in unemployment could provide an opportunity to companies for assessing the lowcost workforce. As a result of outbreak of Covid-19, the popularity of work from home practices has been enhanced on significant that has reduced the market demand of office spaces. This is because the work from home job operations helps people to attain the goals of social distancing to control the spread of pandemic. During the outbreak of covid-19, 29% of employees in France are involved in the work from home practices since 2019 (The Rise of Remote Work in France: Facts And Figures, 2020). It supports people to manage an appropriate work life balance. Therefore, the availability of workforce may have direct impact over the efficiency of business operations (Denton, Forsyth & MacLennan, 2017). On the other hand, increase in violence based on religion creates the social instabilities that influence the global investors to rethink their investment decisions.
France is being termed as a destination where several contemporary technologies were being evolved like generators, fridge and camera. The country had made a significant investment on research and development of various technologies so as various overseas companies have invested in the country in making of different kinds of manufacturing equipment. However, the outbreak of covid-19 and other conditions have influenced country to manage more investment in health research by providing funding to universities, research organizations, and private companies (Pezzoni, Sterzi & Lissoni, 2012). Therefore, companies would be able to meet funding requirement that are involved in different types of research activities. For stimulating the seamless connectivity, government agencies are providing the high speed internet connectivity to companies that is called ADSL (Denton, Forsyth & MacLennan, 2017). In addition to that, the French companies have maintained a significant investment in development of different types of military technologies so as it has been emerged as key exporter of various military tools such as aircrafts, missiles, submarines, and many more. For assessing the dominance in technology, the country has focused on the research of various contemporary technologies such as AI and others. In similar way, the investment in remote work operations would increase the demand of personal office spaces so as companies like Remoffice would find a significant increment in the demand of their services (Zehr, 2019). Furthermore, the France Government has made a substantial investment in development of digital infrastructure and high-speed connectivity. An efficient digital infrastructure supports the French multinationals to establish a seamless connectivity to support different corporate operations in an efficient manner.
In the context of business environment, an organisation has to follow various legal norms to manage the business operation in France. Companies have to follow Commercial Code of France that is also termed as the Company Act. For dealing with workers, companies that are working in France have to follow the French Labour Laws for determining the work time, leaves and salary payment (Weisz, 2014). In addition to that, companies have to pay appropriate taxation to government that is highest within EU countries. Furthermore, companies have to follow different guidelines of EU for dealing with the domestic and international trade operations.
In the context of contemporary business operations, environmental concerns of country are playing important role in the strategic planning and decision making. The France is facing the most critical problem associated with water pollution as compared to other country. Moreover, the country has faced water contamination by acid rain (Charmarkeh, 2013). It could hamper the overall economic growth of country along with business. In addition to that, one-third of country’s land is associated with the forest so as the prime focus on the country is to create designated nitrate zones. It plays a critical role in influencing the overall economic development. Moreover, France has been addressed as one of the most notorious locations aligned with industrial carbon dioxide. Therefore, government agencies have incorporated different regulations and guidelines to manage the protection of environment in different business operations (Can & Gozgor, 2017). For dealing with environmental issues, new companies have to follow appropriate regulations to control the carbon emission and to increase the usage of green technologies. However, new carbon tax would increase the expenditures of businesses and it also hampers the profitability of companies.
This analysis supports in assessment of strength, weakness, opportunities and threats that are faced by a country and it may have direct impact on the efficiency of business operations:
The stable political system and economic trends are being perceived as key strengths of country. The key driver of French economy is tourism, agriculture, weapon industries and others. It is termed a key exporter of wine, cheese and other food products. The country has been placed as one of top five exporters of weapon and other military equipment’s. The government agencies promote the businesses along with innovations by offering funding and other facilities (Gilpin, 2015). Moreover, service sector is being termed as most important revenue generator of French economy. An efficient health care system provides opportunities for different health researches and other activities. Therefore, new business would find appropriate opportunities for business expansion in France.
There are several issues faced by people associated with different countries in France that could hamper overseas business operations and other activities. In addition to that, the high value French currency increases the cost of international visitors due to high exchange rates. In the context of other western country, workers are taught that ‘customer is always right’ but the French could become rude because they pay extra attention on completion of their tasks. Therefore, companies are facing some issues in developing an appropriate work culture within France (O’neill & Brady, 2012). In addition to that, the administrative operations have been perceived as important weakness of county that leave adverse impact on the business expansion decisions of different companies.
France has been termed as a leader in in pharmaceutical as well as aerospace. The country could explore more opportunities within these industries by establishing new overseas partnership and developing the relationship with various foreign suppliers as wellas business partner partners. Additionally, several other French industries like education, travel along with the digital space management are playing a critical role in stimulating the growth of other sectors (Manias, 2013). The country has managed a significant investment for the advancements of telecommunications services, e-commerce and other online trading, and IT too. Therefore, companies like Remoffice would be able to expand their businesses in France. Moreover, the emergence of various e-commerce platforms has influenced the requirements of products associated with different countries. Therefore, various new companies from overseas markets are looking to expand the business France. In the outbreak of covid-19, the demand of office spaces has been reduced but 50% of total France Population has got first dose of vaccination and 30% of population has got both doses or fully vaccinated (Coronavirus (COVID-19) Vaccinations, 2021). This thing would save the people from the new waves of pandemic. The high rate of vaccination will influence people for returning to office. This thing influences the market demand of office spaces. Moreover, the stress level of people has been enhanced during lockdowns so as people are looking to return their offices after vaccination. Therefore, the management of Remoffice will find a significant increment in the market demand of office spaces.
Social inequalities have perceived as key threat for the society of France because it has increased the crime rates at the young age. Moreover, France has been emerged as an important victim to several acts of terrorism from different Islamic group that has incorporated the social distrust and insecure social relationship (Rai & Kumar, 2015). Moreover, the high unemployment rate could adversely affect the market demand of different goods and services and it could hamper overall economic growth of country. However, the management of Remoffice will find some market competition as a threat because several companies like WeWork and Moring Coworking are offering similar services or working spaces (Manias, 2013). Therefore, Remoffice should have to adopt a distinct marketing approach to influence the perception of target consumers.
As per the above assessment, this investigation concludes that PESTLE analysis and SWOT analysis are playing a critical role in evaluating different elements of business environment along with assessment the strengths and weaknesses of country. The above evaluation concludes that the management of Remoffice should consider the France for the new location of business expansion. This is because the country has stable and strong political, legal and economic structure. However, the management of Remoffice should have some social and environmental issues in the business planning and resource management in France.
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