What is the pest analysis of HF?

Answer 1

Political

Denmark is a member of the European Union. Import policy of Denmark would be the same as the European Union. (Wikipedia, 2012)

Norway is not a part of the European Union. Norway government is able to set its own import policy or regulations.

Economical

The GDP of Denmark is USD 59,944 per capita (in the year 2012). Tax rate in Denmark is very high. International trade is very important for Denmark. Denmark also exports food to other countries (Wikipedia, 2012). Using its own currency and it is stable.

The GDP of Norway is USD 84,443 per capita (in the year 2012). Although Norway has very strong relationship with the EU, it is not a EU member, which means that any import form the European Union will be charged according to the tariff rate. Economy of Norway relies on Petrol and natural gas export (Wikipedia, 2012). Using its own currency and it is stable.

3.3 Social

HDI (Human development Index) of Denmark in 0.866, which is very high. Denmark has very good social security and welfare. Education level in Denmark is very high (Wikipedia, 2012). People cares about their health. The total population of Denmark is 5,484,7449 (Est. 2012).

Norway has the world's highest HDI which is 0.943. Education level in Norway is also very high due to government support (Wikipedia, 2012). People also cares about their health. The total population of Norway is 4,851,680 (Est. 2012).

Technological

Denmark is advanced in modern agriculture and industry, it is the leading country in wind power plant.

As Norway is based on Petrol industry and Natural Resources such as minerals. The technical level on food technology and agriculture is relatively lower.

Conclusions

As strawberry is a relatively expensive fruit (compared with apple, etc.), the economical level is very important. Both of those countries are highly developed in social and economic. However, Norway is not a member of EU, which means that different policy may be applied on countries form EU. Technological level in agriculture and food in Norway is lower because it relies too much on petrol industry.

All those two countries are using their own currency, which means that the exchange rate is one of the factors that the company should take into consideration.

Soucing conclusion:

According to the information listed above. The United States and Spain could be the sourcing countries of fresh strawberries as they produces and exports a large quantities of strawberries. Comparing these two countries, Spain is a country inside Europe and it is a part of the European Union. The United states is geographical far away from Europe, the food regulation and government policy is different from Spain and the cost on transport may be higher.

Considering our target country are two European countries, Spain could be the sourcing country for fresh strawberry. However, to provide stable and high quality year round supply, some countries which are advanced in protected strawberry cultivation (Such as the Netherlands and Beigium) may also be selected.

PEST

Sweden

Belgium

Political

EU member

Stable political situation

Import law same as EU

EU member

Stable political situation

Import law same as EU

Economic

GDP: $538.237 billion

Currency: Swedish Krona

Per capita: $56,956

Gini: 23(low)

Very High welfare

GDP: $513.396 billion

Currency: Euro

Per capita: $37,736

Gini: 28(low)

Social

Population: 9,540,065

Literacy Percent: 99

High education level

HDI: 0.885(9th )

Population: 11,041,266

Literacy Percent: 98

High education level

HDI: 0.867(18th )

Technological

High agricultural technology

High technology

Comments: Both of Sweden and Belgium are EU member so that the political requirement for importing is same, while the political situation in those two countries is stable. In economic aspects including GDP, per capita and welfare, Sweden is better than Belgium. The currency in Sweden is Swedish Krona and Belgium is Euro. In recent economic crisis, Euro is influenced that its exchanged rate is fluctuant. Considering the last 5 years, the exchange rate of Swedish Krona is much more stable than Euro. Meanwhile, Swedish Krona is not impacted by economic crisis. The people in those two countries focus on food health more in recent years. Finally, both of those two countries are possible for the trade company to extend business. Sweden is recommended more than Belgium.