Research Methodology

A STUDY ON P.E.S.T.L.E.
ANALYSIS
WITH RESPECT TO SWITZERLAND
CHAPTER I
1.1 GENERAL INTRODUCTION OF THE PROJECT
Todays lifestyle and development has become global. No country is developed today
without the dependency and help of another country. Economically also one country differs
from the other because of the products and resources it has to offer and has in abundance. In
order to develop as a nation and improve the standard of living and in order to have all
resources possible International business is the only way to improve the status of the country.
Globalization and International business have improved the status of the whole world as
countries are conducting business overseas and sharing their resources with each other to help
support and development and innovations.
With the occurrence of International business the demand of different foreign resources
rose, countries became more developed and richer through exports, the lifestyle and standard
of living of domestic population started improving through the new ideas and creativity of
other countries. This not only affects a single country but each business across borders affects
the entire worlds functioning. A disaster in Japan due to Earthquake and nuclear activities
affected even USA, India, etc as their demand of resources from Japan were very high and
dependent.
This project is about International Business and the idea and concept of starting a
business not in the domestic market but in the foreign market that is doing business overseas.
In this project, the research is about another country like Switzerland that is different
politically and culturally and its other condition and whether it will be feasible to start a
business and what type of business. This project is a research on the PESTLE Analysis of
Switzerland and the positive and negative aspects of Switzerland as a foreign country in
starting business there.
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A STUDY ON P.E.S.T.L.E. ANALYSIS

1.2 OBJECTIVES OF STUDY

1. To know about International Business.
2. To know about P.E.S.T.L.E. Analysis
3. To know about Switzerland as a foreign country.
4. To know various aspects of Switzerland through P.E.S.T.L.E. Analysis.
1.3 SCOPE OF STUDY

The scope of study is limited to Switzerland (the Swiss Confederation) a country of Europe.
Switzerland is one of the ultimate tourists destinations. Switzerland has a
population of about 7.9 million. Foreigners account for around 22% of the
resident population. The average age is increasing, as people live longer and
have fewer children. Lifestyles are changing as the Swiss adapt to new demands.
Switzerland is a country where nature survives with technology.
1.4 RESEARCH METHODOLOGY

1.4.1 STATEMENT OF PROBLEM
Due to the increasing globalization and demand for foreign goods doing business in
domestic market is not the sky limit in business. In order to survive as a nation and as a
business it has become a major opportunity of starting business across borders. The way
Switzerland is developing the scope and return in doing a business there is quite appropriate
but a difficult task and very competitive. Hence this research is being conducted to know
about Switzerland country as a whole and the feasibility of starting a business in the Swiss
Confederation.
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1.4.1 COLLECTION OF DATA

SECONDARY DATA
Secondary data is the data which has already been collected by someone
before. Secondary data is secondary in nature and in the shape of finished
product.
Secondary data are collected as to have accurate results and facts. The
required secondary data is collected from various books, journals, newspapers
and internet.
Secondary data is also known as published data which has been collected
for the project. This data collected is the type of data used for the research of the
project and is used to provide detailed and accurate data. Secondary data in this
project will be the International Business, Switzerland, P.E.S.T.L.E. Analysis of
Switzerland.
RESEARCH INSTRUMENT
The research instrument for this study is the Internet and reference books.
This instrument of data collection is the most popular. This instrument is
used to conduct a research by private individuals, research workers and public
and private organizations and even by Governments. It provides all facts,
examples and accurate data for the project.
1.4.2 RESEARCH LIMITATION
Time and cost being a major constraint.
Research is only conducted through the Internet and reference books.
Research was limited to Switzerland.
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CHAPTER II
INTERNATIONAL BUSINESS
International business is a term used to collectively describe all
commercial
transactions
(private and governmental, sales, investments, logistics,and transportation) that
take place between two or more regions, countries and nations beyond their
political boundary. Usually private companies undertake such transactions for
profit; governments undertake them for profit and for political reasons.
International Business is also known, called or referred as a Global
Business or as International Marketing. It refers to all those business activities
which involve cross border transactions of goods, services, resources between n
two or more nations. Transaction of economic resources include capital, skills,
people etc. for international production of physical goods and services such as
finance, banking, insurance, construction etc.
A business that is primarily based in a single country but acquires some
meaningful share of its resources or revenues (or both) from other countries is
known as the trade or business between two countries. In simple words,
International Business is any firm that engages in International trade or
Investment.
Areas of study within this topic include differences in legal
systems, political systems, economic policy, language, accounting standards,
labor standards, living standards, environmental standards, local culture,
corporate culture, foreign exchange market, tariffs, import and export
regulations, trade agreements, climate, education and many more topics. Each
of these factors requires significant changes in how individual business units
operate from one country to the next.
Studying international business is important because:
Most companies are either international or compete with international

companies.
Modes of operation may differ from those used domestically.
The best way of conducting business may differ by country.
An understanding helps you make better career decisions.
An understanding helps you decide what governmental policies to support.
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Why International Business?
The company is responding to demand and in order to develop it discover

in another location.
It sees its competitors going to a particular place.
More positive aspects in that particular foreign country compared to
domestic to start a business.
A whole new market in another country with high demand.
Availability of resources faster and cheaper in the foreign country.
Help the company in development and advancement and better study of
the market and Trend analysis.
CHAPTER III
P.E.S.T.L.E. ANALYSIS
PESTLE is an analytical tool which considers external factors and helps to think
about their impacts. It is a useful tool for understanding the big picture of the environment
in which one wants to operate. By understanding your environment, you can take advantage
of the opportunities and minimize the threats.
It provides the context within which more detailed planning can take place to take
full advantage of the opportunities that present themselves.
In contrast to SWOT, PESTLE encourages thinking about the wider environment and
what might be happening now and in the future which will either benefit or be of
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disadvantage to the organization, individual etc. Its a kind of radar which picks up trends and
developments in the external environment which can be used to inform longer term planning
and strategy making.
POLITICAL:
Government type and stability
Freedom of the press, rule of law and levels of bureaucracy and corruption
Regulation and de-regulation trends
Social and employment legislation
Tax policy, and trade and tariff controls
Environmental and consumer-protection legislation
Likely changes in the political environment
ECONOMIC:
Stage of a business cycle
Current and projected economic growth, inflation and interest rates
Unemployment and supply of labor
Labor costs
Levels of disposable income and income distribution
Impact of globalization
Likely impact of technological or other changes on the economy
Likely changes in the economic environment
SOCIOLOGICAL:
Cultural aspects, health consciousness, population growth rate, age distribution,
Organizational culture, attitudes to work, management style, staff attitudes
Education, occupations, earning capacity, living standards
Ethical issues, diversity, immigration/emigration, ethnic/religious factors
Media views, law changes affecting social factors, trends, advertisements, publicity
Demographics: age, gender, race, family size
TECHNOLOGICAL:
Maturity of technology, competing technological developments, research funding,
technology legislation, new discoveries
Information technology, internet, global and local communications
Technology access, licensing, patents, potential innovation,
replacement
technology/solutions, inventions, research, intellectual property issues, advances in

manufacturing
Transportation, energy uses/sources/fuels, associated/dependent technologies, rates of
obsolescence, waste removal/recycling
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LEGAL:
Current home market legislation, future legislation
European/international legislation
Regulatory bodies and processes
Environmental regulations, employment law, consumer protection
Industry-specific regulations, competitive regulations
ENVIRONMENTAL:
Ecological
Environmental issues, environmental regulations
Customer values, market values, stakeholder/ investor values
Management style, staff attitudes, organizational culture, staff engagement
CHAPTER IV
SWITZERLAND
Switzerland in its full name the Swiss Confederation is a federal republic
consisting of 26 cantons, with Bern as the capital and seat of the federal
authorities. The country is situated in western Europe, where it is bordered
by Germany to the north, France to the west, Italy to the south,
and Austria and Liechtenstein to the east.
Switzerland is a landlocked country geographically divided between
the Alps, the Swiss Plateau and the Jura, spanning an area of
41,285 km2 (15,940 sq mi). While the Alps occupy the greater part of the
territory, the Swiss population of approximately 7.9 million people is
concentrated mostly on the Plateau, where the largest cities are to be found.
Among them are the two global cities and economic centers
of Zurich and Geneva.
The Swiss Confederation has a long history of neutralityit has not been
in a state of war internationally since 1815and did not join the United
Nations until 2002. It pursues, however, an active foreign policy and is frequently
involved in peace-building processes around the world. Switzerland is also the
birthplace of the Red Cross and home to a large number of international
organizations, including the second largest UN office. On the European level, it is
a founding member of the European Free Trade Association and is part of the
Schengen Area although it is notably not a member of the European Union, nor
the European Economic Area.
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In nominal terms, Switzerland is one of the richest countries in the world

by per capita gross domestic product, with a nominal per capita GDP of $75,835.
In 2010, Switzerland had the highest wealth per adult of any country in the world
(with $372,692 for each person). Switzerland also has one of the world's
largest account balances as a percentage of GDP. Zurich and Geneva have
respectively been ranked as the cities with the second and third highest quality
of life in the world. In 2010 the World Economic Forum ranked Switzerland as the
most competitive country in the world, while ranked by the European
Union as Europe's most innovative country by far. The Gross Domestic Product
(GDP) in Switzerland expanded 0.2 percent in the third quarter of 2011 over the
previous quarter. Historically, from 1980 until 2011, Switzerland's average
quarterly GDP Growth was 0.40 percent reaching an historical high of 2.10
percent in June of 1989 and a record low of -1.10 percent in December of 2008.
Switzerland's economy has low unemployment, a highly skilled labor force, and a
per capita GDP among the highest in the world. Its policy of long-term monetary
security and bank secrecy has made Switzerland a safe haven for investors,
creating an economy that is increasingly dependent on a steady tide of foreign
investment. Because of the country's small size and high labor specialization,
industry and trade are the keys to Switzerland's economic livelihood. This page
includes: Switzerland GDP Growth Rate chart, historical data, forecasts and news.
Switzerland's ecosystems can be particularly fragile, because of the many
delicate valleys separated by high mountains, often forming unique ecologies.
The mountainous regions themselves are also vulnerable, with a rich range of
plants not found at other altitudes, and experience some pressure from visitors
and grazing. The climatic, geological and topographical conditions of the alpine
region make for a very fragile ecosystem that is particularly sensitive to climate
change.
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Swiss Confederation
Flag
Coat of arms
Motto: Unus pro omnibus, omnes pro uno (traditional)

(Latin: One for all, all for one)
Anthem: Swiss Psalm
Location
of Switzerland (green)
in Europe (dark grey)
[Legend]
Capital
Largest city
Official language(s)
Demonym
Government
Federal Council
Bern (de facto)
4657N 727E
Zurich
German (63.7 %),French (20.4 %),Italian (6.5 %),Romansh
(0.5 %)
Swiss
Federal republic, with directorial system and direct
democracy
Doris Leuthard Eveline Widmer-Schlumpf Ueli Maurer
Didier Burkhalter Simonetta Sommaruga
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Johann Schneider-Ammann Alain Berset

Federal Chancellor
Corina Casanova
Legislature
Federal Assembly
Upper house
Council of States
Lower house
National Council
Independence
Foundation date
Recognized
Restored
1 August 1291
24 October 1648
7 August 1815
Federal state
12 September 1848
Area
Total
41,285 km2 (133rd) 15,940 sq mi

Population
2010 estimate
2000 census
Density
7,866,500 (95th)
7,452,075
188/km2 (65th) 477.4/sq mi
GDP (PPP)
2011 estimate
Total
$321.898 billion[4] (36th)
Per capita
$45,265[4] (8th)
GDP (nominal)
Total
2011 estimate
$512.065 billion[4] (19th)
Per capita
$75,835[4] (4th)
Gini (2000)
33.7 (medium)
HDI (2011)
0.903[5] (very high) (11th)
Currency
Swiss franc (CHF)
Time zone
CET (UTC+1)
Drives on the
ISO 3166 code
Summer (DST) CEST (UTC+2)
right (trains: left)

CH
internet TLD: .ch
calling code: +41
CHAPTER V
P.E.S.T.L.E. ANALYSIS OF SWITZERLAND
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POLITICAL AND LEGAL FACTORS :

The Federal Constitution adopted in 1848 is the legal foundation of the
modern federal state. It is among the oldest constitutions in the world. A new
Constitution was adopted in 1999, but did not introduce notable changes to the
federal structure. It outlines basic and political rights of individuals and citizen
participation in public affairs, divides the powers between the Confederation and
the cantons and defines federal jurisdiction and authority. There are three main
governing bodies on the federal level:
The bicameral parliament (legislative),
The Federal Council (executive)
The Federal Court (judicial).
The Swiss Parliament consists of two houses: the Council of States which has 46
representatives (two from each canton and one from each half-canton) who are elected under
a system determined by each canton, and the National Council, which consists of 200
members who are elected under a system of proportional representation, depending on the
population of each canton. Members of both houses serve for 4 years. When both houses are
in joint session, they are known collectively as the Federal Assembly. Through referendums,
citizens may challenge any law passed by parliament and through initiatives, introduce
amendments to the federal constitution, thus making Switzerland a direct democracy.
The Swiss Federal
Council in 2012 with
President
The Federal Palace, seat
of the
Eveline
Widmer-Schlumpf (in
the middle).
Federal Assembly and
the Federal Council
The Federal Council constitutes the federal government, directs the federal
administration and serves as collective Head of State. It is a collegial body of seven members,
elected for a four-year mandate by the Federal Assembly which also exercises oversight over
the Council. The President of the Confederation is elected by the Assembly from among the
seven members, traditionally in rotation and for a one-year term; the President chairs the
government and assumes representative functions. However, the president is a primus inter
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pares with no additional powers, and remains the head of a department within the
administration.
The Swiss government has been a coalition of the four major political parties
since 1959, each party having a number of seats that roughly reflects its share of
electorate and representation in the federal parliament. In the 2007 Federal
Council elections the seven seats in the Federal Council were distributed as
follows: 2 Social Democrats (SPS/PSS), 2 Liberal Democrats (FDP/PRD), 2 Swiss
People's Party (SVP/UDC), 1 Christian Democrats (CVP/PDC).
The function of the Federal Supreme Court is to hear appeals against rulings of
cantonal or federal courts. The judges are elected by the Federal Assembly for six-year terms.
The Swiss Confederation consists of 26 cantons:
Canton
Capital
Canton
Capital
Aargau
Aarau
* Nidwalden
Stans
*Appenzell
Ausserrhoden
Herisau
*Obwalden
Sarnen
*Appenzell
Innerrhoden
Appenzell
Schaffhausen
Schaffh
ausen
*Basel-Landschaft
Liestal
Schwyz
Schwyz
*Basel-Stadt
Basel
Solothurn
Solothu
rn
Bern
Bern
St. Gallen
St.
Gallen
Fribourg
Fribourg
Thurgau
Frauenf
eld
Geneva
Geneva
Ticino
Bellinzo
na
Glarus
Glarus
Uri
Altdorf
Graubnden
Chur
Valais
Sion
Jura
Delmont
Vaud
Lausan
ne
Lucerne
Lucerne
Zug
Zug
Neuchtel
Neuchtel
Zurich
Zurich
*These
half-
cantons are represented by one councillor (instead of two) in the Council of States.
The cantons have a permanent constitutional status and, in comparison with the
situation in other countries, a high degree of independence. Under the Federal Constitution,
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all 26 cantons are equal in status. Each canton has its own constitution, and its own
parliament, government and courts. However, there are considerable differences between the
individual cantons, most particularly in terms of population and geographical area. Their
populations vary between 15,000 (Appenzell Innerrhoden) and 1,253,500 (Zurich), and their
area between 37 km2 (14 sq mi) (Basel-Stadt) and 7,105 km2 (2,743 sq mi) (Graubnden).
The Cantons comprise a total of 2,889 municipalities. Within Switzerland there are
two enclaves: Bsingenbelongs to Germany, Campione d'Italia belongs to Italy.
In a referendum held in the Austrian state of Vorarlberg on 11 May 1919 over 80% of
those voting supported a proposal that the state should join the Swiss Confederation.
However, this was prevented by the opposition of the Austrian Government, the Allies, Swiss
liberals and non German-speaking Swiss.
Direct democracy
Swiss citizens are subject to three legal jurisdictions: the commune, canton and
federal levels. The 1848 federal constitution defines a system of direct democracy (sometimes
called half-direct or representative direct democracy since it is aided by the more
commonplace institutions of a parliamentary democracy). The instruments of Swiss direct
democracy at the federal level, known as civic rights (Volksrechte, droits civiques), include
the right to submit a constitutional initiative and a referendum, both of which may overturn
parliamentary decisions.
By calling a federal referendum a group of citizens may challenge a law that has been
passed by Parliament, if they can gather 50,000 signatures against the law within 100 days. If
so, a national vote is scheduled where voters decide by a simple majority whether to accept or
reject the law. Eight cantons together can also call a referendum on a federal law.
Similarly, the federal constitutional initiative allows citizens to put a constitutional
amendment to a national vote, if they can get 100,000 voters to sign the proposed amendment
within 18 months. Parliament can supplement the proposed amendment with a counterproposal, with voters having to indicate a preference on the ballot in case both proposals are
accepted. Constitutional amendments, whether introduced by initiative or in Parliament, must
be accepted by a double majority of both the national popular vote and a majority of the
cantonal popular votes.
Chief of state: President of the Swiss Confederation Eveline WIDMERSCHLUMPF; Vice President Ueli MAURER; note - the president and vice president
were elected to office on 14 December 2011 and will take office 1 January 2012;
the president is both the chief of state and head of government representing the
Federal Council; the Federal Council is the formal chief of state and head of
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government whose council members, rotating in one-year terms as federal

president, represent the Council
Head of government: President of the Swiss Confederation Eveline WIDMERSCHLUMPF; Vice President Ueli MAURER; note - the president and vice president
were elected to office on 14 December 2011 and will take office 1 January 2012
Cabinet: Federal Council or Bundesrat (in German), Conseil Federal (in French),
Consiglio Federale (in Italian) is elected by the Federal Assembly usually from
among its members for a four-year term
Eveline WIDMER-SCHLUMPF elected president; number of Federal Assembly votes
- 179 of 239; Ueli MAURER elected vice president.
Political parties and leaders :
Christian Democratic People's Party (Christlichdemokratische Volkspartei
der Schweiz or CVP, Parti Democrate-Chretien Suisse or PDC, Partito Popolare
Democratico Svizzero or PPD, Partida Cristiandemocratica dalla Svizra or PCD)
[Christophe DARBELLAY]; Conservative Democratic Party (BuergerlichDemokratische Partei Schweiz or BDP, Parti Bourgeois Democratique Suisse or
PBD, Partito Borghese Democratico Svizzero or PBD, Partido burgais democratica
Svizera or (PBD)) [Hans GRUNDER]; Free Democratic Party or FDP.The Liberals
(FDP.Die Liberalen, PLR.Les Liberaux-Radicaux, PLR.I Liberali, Ils Liberals) [Fulvio
PELLI]; Green Liberal Party (Grunliberale or GLP, Parti vert liberale or PVL, Partito
Verde-Liberale or PVL, Partida Verde Liberale or PVL) [Martin BAUMLE]; Green
Party (Gruene Partei der Schweiz or Gruene, Parti Ecologiste Suisse or Les Verts,
Partito Ecologista Svizzero or I Verdi, Partida Ecologica Svizra or La Verda) [Ueli
LEUENBERGER]; Social Democratic Party (Sozialdemokratische Partei der Schweiz
or SPS, Parti Socialiste Suisse or PSS, Partito Socialista Svizzero or PSS, Partida
Socialdemocratica de la Svizra or PSS) [Christian LEVRAT]; Swiss People's Party
(Schweizerische Volkspartei or SVP, Union Democratique du Centre or UDC,
Unione Democratica di Centro or UDC, Uniun Democratica dal Center or UDC)
[Toni BRUNNER]; and other minor parties.
Legal system : civil law system; judicial review of legislative acts, except for
federal decrees of a general obligatory character
International law organization participation :
jurisdiction with reservations; accepts ICCt jurisdiction
accepts compulsory ICJ
Suff rage :18 years of age; universal

Advertising laws:
The most important law regulating advertising in Switzerland is the Federal Law
against Unfair (UWG), which bans any unfair and wrong behaviour or business
conduct that is deceptive or in any way contravenes the principle of good faith.
Self regulation plays an important role in Switzerland. The Swiss advertising
industry has adopted its own canons of professional ethics in the Principles of the
Swiss Commission for Integrity in Advertising. Also the International Chamber of
Commerces International Code of Advertising Practice (ICC Code) is relevant.
The constitution protects the physical, mental and moral development of
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children. However, Switzerland has no specific law that deals with advertising to
children. There is legislation covering advertising to children in certain media and
for specific products. Television and radio advertising in particular is subject to
special regulation designed to protect children and young people. The selfregulation of the advertising industry includes rules for advertising to children
but they are basically identical to the relevant legislation. The federal law
concerning television and radio regulates advertising aimed at children and
adults. For the protection of all, the advertising of alcoholic beverages and
tobacco products is prohibited on television and radio. Advertising to children has
to avoid anything that might harm their interests and must not take advantage
of their deficiency of judgments and experience. The Federal Council is
empowered to issue further regulations to protect children. So far it has not
exercised this right.
Cinema: To protect children, the tobacco industry bans advertising in cinemas
before 7 pm and commercials are limited to two per movie. The advertising of
alcohol is generally permitted unless the majority of viewers are children.
Tobacco: Tobacco advertising is regulated by the federal law concerning
foodstuffs, the federal law concerning television and federal directives about
tobacco. Tobacco advertising is generally allowed if the advertising is socially
responsible and does not encourage excessive smoking. It is prohibited to create
ads for tobacco products aimed at children under the age of 18.
Alcohol: Alcohol advertising is generally allowed if the advertising is socially
responsible and does not encourage excessive drinking. Advertisements that are
aimed at children under the age of 18areprohibited by the Federal Law of
Foodstuffs. As mentioned before the advertising of alcohol is prohibited on
television and radio.
Medicine: Advertising to the public of prescription-only pharmaceuticals is
prohibited in Switzerland. Advertising for pharmaceuticals that can be sold over
the counter is restricted. The advertising should not lead to excessive, wrong or
inappropriate use of pharmaceuticals, but there is no specific legislation
concerning young people.
Books and magazines: There is no specific legislation in this area except that the
advertising of tobacco and alcoholic beverages is prohibited in books and
magazines for the young. Additionally, the Swiss Penal Code bans books and
magazines that contain pornography and violence.
Toys: There is no special law relating to toy advertising, except that alcohol and
tobacco advertising is prohibited on toys. Apart from that, general legislation
must be respected for example, the advertising must not be misleading.
Advertising to children is very liberal in Switzerland. Apart from the small amount
of legislation mentioned, advertising to children has not been a topic of much
interest for the industry or politicians. Because the Swiss advertising industry has
adopted its professional ethics and the Swiss Commission for Integrity in
Advertising controls the advertising and punishes infringements of the rules, the
system of self-regulation works well. Therefore there is no discussion in
Switzerland to release further restrictions with regard to advertising to children.
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As a result of this self-regulation there are rarely any judgments by the Swiss
courts concerning advertising.
Goods Subject to Import Controls:
The following goods are restricted by law and subject to import approval and/or
must meet other regulatory requirements but are acceptable for importation on
FedEx Express International Priority Service:
Milk and dairy products including cheese

Cereals and forage products
Meat, game, seafood
Foodstuffs
Drugs and other chemicals
Alcoholic beverages
Precious metals, watches, jewellery.
Standards: Switzerland has formally subscribed to ISO 9000 and has announced
its intention to follow all subsequent ISO 9000 standards. Products meeting WTO
standards of labelling and marking should have little difficulty in complying with
relevant Swiss regulations. Swiss Association for Standardization (SNV) is the
government office in charge of enforcement of regulations on marking, labelling
and quality controls.
Labelling/Marking: Consumer goods must be marked with the country of

manufacture prior to sale. Packaged goods must also indicate the quality of
purity, the ingredients and the net weight of measure of the contents.
Rules of Origin: Switzerland uses the World Trade Organization's rules of origin to
determine the country of origin for goods transported internationally. The country
of origin can affect whether or not a good is subject to particular regulatory
requirements. It is also a key factor in determining duty rates (some goods are
eligible for a reduced rate; some goods are subject to additional charges such as
anti-dumping and countervailing duties).
When exported goods are subject to regulatory controls and an export license or
permit is required, the exporter is responsible for requesting export permission
from the appropriate department or agency. Some regulated goods are eligible
for a weight tolerance exemption that allows exportation of shipments of low
weight without a license or permit. Although tolerance limits are generally based
on gross weight, Customs does authorize tolerance exemption for some goods
based on net weight. Goods Subject to Export Controls
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The following goods are restricted by law and subject to export approval and/or
must meet other regulatory requirements but are acceptable for exportation on
FedEx Express International Priority Service:
Certain agricultural goods
Goods that have both military and civilian uses (i.e. "dual-use")
Drugs and other chemicals
Fuels
Certain knives (HS#8211)
Motors, turbines (HS8409->)
Certain articles made of steel/Iron, Copper
Radar and other navigation devices
Vehicles (ground, air, water)
ECONOMIC FACTOR:
Switzerland has a stable, prosperous and high-tech economy. In 2011, it was ranked as being
the wealthiest country in the world in per capita terms (with 'wealth' being defined to include
both financial and non-financial assets).Switzerland also has the highest European rating in
the Index of Economic Freedom 2010, while also providing large coverage through public
services. The nominal per capita GDP is higher than those of the larger Western and Central
European economies and Japan (and indeed one of the highest in the world). The Swiss franc
remains one of the world's strongest currencies with the lowest inflation rate (rising to an
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estimated 0.7% for 2011). In fact, Switzerland holds the record as being the country with the
lowest rate of inflation for both the 19th and 20th century (i.e. when viewed from both a short
and long-run perspective): since 1880 Swiss annual inflation has on average been a mere
2.2%, to be compared to 2.6% in the United States which is the closest contender. Likewise,
in an international comparison with 13 other OECD countries since 1880, Switzerland once
again comes out on top with an annual average inflation rate of a mere 1.5% (excluding the
years of the two world wars and their immediate aftermath). Indeed, even focusing on the
period following the creation of the Swiss National Bank and Switzerland is again the best
performer, with an average inflation of 2%.
Greater Zurich Area, home to
1.5
The Omega Speedmaster,
a Swiss-made watch worn on the
moon
million inhabitants and 150,000
during the Apollo missions. In terms
of value, Switzerland is companies, has taken top position
responsible for half of the world production of watches
in some life quality surveys.
If adjusted for purchasing power parity, Switzerland ranks eleventh in the world in terms of
GDP per capita, according to the CIA World Factbook (ranking just behind a few oilproducing countries and microstates which act as tax-havens with no robust manufacturing
sector). The World Economic Forum's Global Competitiveness Report currently ranks
Switzerland's economy as the most competitive in the world. For much of the 20th century,
Switzerland was the wealthiest country in Europe by a considerable margin. This trend
continues into the 21st century: in 2010, the Global Wealth Report by Credit Suisse Research
Institute found that Switzerland has the highest average wealth per adult at $372,692,
followed by Norway, Australia and Singapore at $326,530, $320,909 and $255,488
respectively, with wealth defined by the value of financial and non-financial (such as real
estate) assets. In 2005 the median household income in Switzerland was an estimated
95,000 CHF, the equivalent of roughly 100,000 USD (as of December 2010) in nominal
terms.
Switzerland is home to several large multinational corporations. Also notable
are UBS AG, Zurich Financial Services, Credit Suisse, Swiss Re, and The Swatch The
largest Swiss companies by revenue are Glencore, Nestl, Novartis, Hoffmann-La
Roche, ABB and Adecco.h Group. Switzerland is ranked as having one of the most
powerful economies in the world.

Chemicals, health and pharmaceutical, measuring instruments, musical
instruments, real
estate, banking and insurance, tourism,
and international
organisations are important industries in Switzerland. The largest exported goods are
chemicals (34% of exported goods), machines/electronics (20.9%), and precision

instruments/watches (16.9%). Exported services amount to a third of exported goods.
Page | 18

Around 3.8 million people work in Switzerland. Switzerland has a more flexible job
market than
neighboring
countries
and
the unemployment rate
is
very
low. Unemployment rate increased from a low of 1.7% in June 2000 to a peak of 4.4%, as
of December 2009. Population growth from net immigration is quite high, at 0.52% of
population in 2004. Foreign citizen population is 21.8% as of 2004, about the same as in
Australia. GDP per hour worked is the world's 17th highest, at 27.44 international
dollars in 2006.
Switzerland has an overwhelmingly private sector economy and low tax rates by
the Western World standards; overall taxation is one of the smallest of developed
countries. Switzerland is an easy place to do business; Switzerland currently ranks 27th of
178 countries in the Ease of Doing Business Index. The slow growth Switzerland
experienced in the 1990s and the early 2000s has brought greater support for economic
reforms and harmonisation with the European Union. According to Credit Suisse, only
about 37% of residents own their own homes, one of the lowest rates of home ownership in
Europe. Housing and food price levels were 171% and 145% of the EU-25 index in 2007,
compared to 113% and 104% in Germany.
Agricultural protectionisma rare exception to Switzerland's free trade policieshas
contributed to high food prices. Product market liberalisation is lagging behind many EU
countries according to the OECD. Nevertheless, domestic purchasing power is one of the
best in the world. Apart from agriculture, economic and trade barriers between the European
Union and Switzerland are minimal and Switzerland has free trade agreements worldwide.
Switzerland is a member of the European Free Trade Association (EFTA).
The major well known companies of Switzerland:
Tissot
Tag Heuer
Logitech
Lindt Sprngli
Nestl
Omega
Victornox
note: data are in 2011 US dollars
Page | 19

GDP (purchasing power parity) :
>$340.5 billion (2011 est.) country comparison to the world: 38

>$333.2 billion (2010 est.); >$324.5 billion (2009 est.)
GDP (offi cial exchange rate) :
$665.9 billion (2011 est.)

GDP - real growth rate :
2.1% (2011 est.)

GDP - per capita (PPP) :
$43,400 (2011 est.) country comparison to the world: 14

GDP - composition by sector :
agriculture: 1.2%
industry: 27.5%
services: 71.3% (2011 est.)
Labor force :
4.27 million (2011 est.) country comparison to the world: 84

Labor force - by occupation :
agriculture: 3.4%
industry: 23.4%
services: 73.2% (2010)
Unemployment rate :
3.1% (2011 est.) country comparison to the world: 26 3.9% (2010 est.)
Population below poverty line :
6.9% (2010)
Household income or consumption by percentage share :
lowest 10%: 7.5% highest 10%: 19% (2007)

Distribution of family income - Gini index :
33.7 (2008) country comparison to the world: 97 33.1 (1992)

Investment (gross fi xed) :
21.1% of GDP (2011 est.) country comparison to the world: 102

Taxes and other revenues :
33.3% of GDP (2011 est.) country comparison to the world: 74

Infl ation rate (consumer prices) :
0.4% (2011 est.) country comparison to the world: 6 0.7% (2010 est.)
Central bank discount rate :
0.5% (31 December 2010 est.) country comparison to the world: 133
0.75% (31 December 2009 est.)
Agriculture - products :
grains, fruits, vegetables; meat, eggs

Industries:
machinery, chemicals, watches, textiles, precision instruments,

tourism, banking, and insurance
Stock of direct foreign investment - at home :
$580.2 billion (31 December 2011 est.)

country comparison to the world: 11
$576.2 billion(31 December 2010est.)
Stock of direct foreign investment - abroad :
Page | 20


country comparison to the world: 7
Exchange rates :
Swiss francs (CHF) per US dollar - 0.8723 (2011 est.); 1.0429 (2010 est.)
Page | 21

SOCIAL FACTOR:
Official languages in
Switzerland:
German (63.7%; 72.5%)

French (20.4%; 21.0%)
Italian (6.5%; 4.3%)
Romansh (0.5%; 0.6%)
Switzerland lies at the crossroads of several major European cultures that

have heavily influenced the country's languages and culture. Switzerland has
four official languages: German (63.7% total population share, with foreign
residents; 72.5% of residents with Swiss citizenship, in 2000) in the north, east
and centre of the country; French (20.4%; 21.0%) to the west; Italian (6.5%;
4.3%) in the south. Romansh (0.5%; 0.6%) .
The German spoken in Switzerland is predominantly a group of Alemannic
dialects collectively known as Swiss German, but written communication
typically use Swiss Standard German, whilst the majority of radio and TV
broadcast is now in Swiss German as well.
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
Name
Zurich
Geneva
Basel
Berne
Lausanne
Winterthur
Lucerne
St. Gallen
Lugano
Biel/Bienne
Thun
Kniz
La Chaux-deFonds
14
Schaffhausen
15
16
17
18
19
20
Fribourg
Vernier
Chur
Neuchtel
Uster
Sion
Canton
Canton of Zurich
Canton of Geneva
Basel-Stadt
Canton of Bern
Vaud
Canton of Zurich
Canton of Lucerne
Canton of St. Gallen
Ticino
Canton of Bern
Canton of Bern
Canton of Bern
Pop.
372,047
191,803
169,536
133,920
127,821
101,203
77,491
72,959
54,667
51,203
42,623
39,102
Canton of Neuchtel
37,523
Canton of
Schaffhausen
Canton of Fribourg
Canton of Geneva
Graubnden
Canton of Neuchtel
Canton of Zurich
Valais
34,943
34,897
33,811
33,756
32,973
32,285
30,363
Page | 22

Health: Swiss citizens are required to buy universal health insurance from private insurance
companies, which in turn are required to accept every applicant. This system permits access
to a broad range of modern medical services. The healthcare system compares well with other
European countries and patients are largely satisfied with it. In 2006 life expectancy at birth
was 79 years for men and 84 years for women. It is among the highest in the world.
Urbanization: Between two thirds and three quarters of the population live in urban areas.
Switzerland has gone from a largely rural country to an urban one in just 70 years.
Switzerland has a dense network of cities, where large, medium and small cities are
complementary. The plateau is very densely populated with about 450 people per km 2 and
the landscape continually shows signs of man's presence. The weight of the largest
metropolitan areas, which are Zurich, GenevaLausanne, Basel and Bern tend to
increase.
Religion:
Switzerland
has
no
official state
religion,
though
most
of
the cantons (except Geneva and Neuchtel) recognize official churches, which
are either the Catholic Church or the Swiss Reformed Church. These churches,
and in some cantons also the Old Catholic Church and Jewish congregations, are
financed by official taxation of adherents.
Christianity is the
predominant religion of
Switzerland, divided
between the Catholic
Church (41.8% of the
population) and various
Protestant denominations
(35.3%). Immigration has brought Islam (4.26%) Eastern Orthodoxy (1.8%), NeoPietism (0.44%), Pentecostalism (0.28%),Methodism (0.13%), the New Apostolic
Church (0.45%), Jehovah's Witnesses (0.28%), other Protestant denominations
(0.20%), the Old Catholic Church (0.18%), other Christian denominations
(0.20%). Minor non-Christian minority groups
are Hinduism (0.38%), Buddhism(0.29%), Judaism (0.25%) and "other religions"
(0.11%). 4.3% did not make a statement. The 2005 Euro barometer poll found
48% to be theist, 39% expressing belief in "a spirit or life force", 9% atheist and
4% agnostic. Greeley (2003) found that 27% of the population does not believe
in a God.
The country is historically about evenly balanced between Catholic and
Protestant, with a complex patchwork of majorities over most of the country.
Page | 23

Culture: Three of Europe's major languages are official in Switzerland. Swiss

culture is characterised by diversity, which is reflected in a wide range of
traditional customs. A region may be in some ways strongly culturally connected
to the neighbouring country that shares its language, the country itself being
rooted
in
western European
culture.[149] The
linguistically
isolated Romansh culture in Graubnden in eastern Switzerland constitutes an
exception, it survives only in the upper valleys of the Rhine and the Inn and
strives to maintain its rare linguistic tradition. Among the most important cultural
performances held annually are the Lucerne Festival, the Montreux Jazz
Festival and the Locarno International Film Festival.
Alpine
symbolism
has
played
an
essential
role
in
shaping the history
of the country and
the Swiss national
identity. Nowadays
some concentrated
mountain
areas
have a strong highly
energetic ski resort culture in winter, and a hiking (wandering) or Mountain
biking culture in summer. Other areas throughout the year have a recreational
culture that caters to tourism, yet the quieter seasons are spring and autumn
when there are fewer visitors. The alphorn, a trumpet-like musical instrument
made of wood, has become alongside yodeling and the accordion an epitome of
traditional Swiss music.
Literature, Education and Science: As the Confederation, from its foundation in
1291, was almost exclusively composed of German-speaking regions, the earliest
forms of literature are in German. In the 18th century French became the
fashionable language in Bern and elsewhere, while the influence of the Frenchspeaking allies and subject lands was more marked than before.
Some of the Swiss scientists who played a key role in
their discipline (clockwise):
Leonhard Euler (mathematics)
Louis Agassiz (glaciology)
Auguste Piccard (aeronautics)
Albert Einstein (physics)
Education in Switzerland is very diverse because

the constitution of Switzerland delegates the authority for the school system to
the cantons. There are both public and private schools, including many private
international schools. The minimum age for primary school is about six years in
Page | 24

all cantons, but most cantons provide a free "children's school" starting at four or
five years old. Primary school continues until grade four, five or six, depending
on the school. Traditionally, the first foreign language in school was always one
of the other national languages, although recently (2000) English was introduced
first in a few cantons. At the end of primary school (or at the beginning of
secondary school), pupils are separated according to their capacities in several
(often three) sections. The fastest learners are taught advanced classes to be
prepared for further studies and the matura, while students who assimilate a
little bit more slowly receive an education more adapted to their needs. There
are 12 universities in Switzerland, ten of which are maintained at cantonal level
and usually offer a range of non-technical subjects. The biggest university in
Switzerland is the University of Zurich with nearly 25,000 students. International
Institute for Management Development (IMD) are the leaders. Switzerland has
the second highest rate of foreign students in tertiary education, after Australia.
Sports: Skiing, snowboarding and mountaineering are among the most popular
sports in Switzerland, the nature of the country being particularly suited for such
activities. Winter sports are practiced by the natives and tourists since the
second half of the 19th century with the invention of bobsleigh in St. Moritz. The
Mrren hosted the second Winter Olympic Games in 1928 and the fifth edition in
1948. Many Swiss are fans of football and the national team or 'Nati' is widely
supported. Switzerland was the joint host, with Austria, of the Euro
2008 tournament. Many Swiss also follow ice hockey and support one of the 12
clubs in the League A. In April 2009, Switzerland hosted the 2009 IIHF World
Championship for the 10th time. The largest, Lake Geneva, is the home of the
sailing team Alinghi which was the first European team to win the America's
Cup in 2003 and which successfully defended the title in 2007. Tennis has
become an increasingly popular sport, and Swiss players such as Martina
Hingis and Roger Federer have won multiple Grand Slams.
Motorsport ra
cecourses
and
events were banned
in
Switzerland
following
the 1955
Le
Mans
disaster with
exception to events
such as Hillclimbing.
However, this ban was
overturned
in
June
2007. During this period,
the
country
still
produced
successful
racing drivers such as Clay Regazzoni, Sebastian Buemi, Jo
successful World Touring Car Championship driver Alain Menu.
Siffert and
Page | 25

Cuisine: The cuisine of Switzerland is multi-faceted. While some dishes such

as fondue, raclette or rsti are omnipresent through the country, each region
developed its own gastronomy according to the differences of climate and
languages. Their specialities in Dairy products such as cheese. Chocolate had
been made in Switzerland since the 18th century but it gained its reputation at
the end of the 19th century with the invention of modern techniques such
as conching and tempering which enabled its production on a high quality
level(LINDT).
Etiquettes: Respect for privacy and discretion are key values in social interaction.
In public spaces such as trains, strangers normally do not speak to each other.
Kindness and politeness in social interaction are expected; in smaller shops,
clients and vendors thank each other several times. Cultural differences between
the linguistic regions include the more frequent use of titles and professional
functions in the German-speaking region, and the use of a kiss rather than a
handshake in the French-speaking region.
Secular celebrations: Celebrations and official holidays differ from canton to
canton. Common to the whole country are National Day (1 August) and New
Year's Day (1 January); religious celebrations shared by Protestants and Catholics
include Christmas (25 December), Good Friday, Easter, Ascension, and
Pentecost.
Page | 26

ENVIRONMENTAL AND TECHNOLOGICAL FACTORS:

Switzerland's ecosystems can be particularly fragile, because of the many
delicate valleys separated by high mountains, often forming unique ecologies.
The mountainous regions themselves are also vulnerable, with a rich range of
plants not found at other altitudes, and experience some pressure from visitors
and grazing. The climatic, geological and topographical conditions of the alpine
region make for a very fragile ecosystem that is particularly sensitive to climate
change.
Electricity generated in Switzerland is 56% from hydroelectricity and 39%
from nuclear power, with 5% of the electricity generated from conventional
power sources resulting in a nearly CO2-free electricity-generating network. On
18 May 2003, two anti-nuclear initiatives were turned down: Moratorium Plus,
aimed at forbidding the building of new nuclear power plants (41.6% supported
and 58.4% opposed), and Electricity Without Nuclear (33.7% supported and
66.3% opposed).
The former ten-year moratorium on the construction of new nuclear power
plants was the result of a citizens' initiative voted on in 1990 which had passed
with 54.5% Yes vs. 45.5% No votes. A new nuclear plant in the Canton of Bern is
presently planned. The Swiss Federal Office of Energy (SFOE) is the office
responsible for all questions relating to energy supply and energy use within
the Federal
Department
of
Environment,
Transport,
Energy
and
Communications (DETEC).
The
agency
is
supporting
the 2000-watt
society initiative to cut the nation's energy use by more than half by the year
2050. On 25 May 2011 the Swiss government announced that it plans to end its
use of nuclear energy in the next 2 or 3 decades.
The densest rail network in Europe of 5,063 km (3,146 mi) carries over
350 million passengers annually. In 2007, each Swiss citizen travelled on average
2,103 km (1,307 mi) by rail, which makes them the keenest rail users. Swiss
private-public managed road network is funded by road tolls and vehicle taxes.
The Swiss autobahn/autoroute system requires the purchase of a vignette (toll
sticker)which costs 40 Swiss francsfor one calendar year in order to use its
roadways, for both passenger cars and trucks. The Swiss autobahn/autoroute
network has a total length of 1,638 km (1,018 mi) (as of 2000) and has, by an
area of 41,290 km2(15,940 sq mi), also one of the highest motorway densities in
the world. Zurich Airport is Switzerland's largest international flight gateway,
which handled 22.8 million passengers in 2010. The country is heavily active in
recycling and anti-littering regulations and is one of the top recyclers in the
world, with 66% to 96% of recyclable materials being recycled, depending on the
area of the country.
Page | 27

Switzerland has one of the best environmental records among nations in

the developed world; it was one of the countries to sign the Kyoto Protocol in
1998 and ratified it in 2003.In many places in Switzerland, household garbage
disposal is charged for. Illegal disposal of garbage is not tolerated but usually the
enforcement of such laws is limited to violations that involve the unlawful
disposal of larger volumes at traffic intersections and public areas.
Research and Development (R&D) and Innovation in Switzerland
Choosing a destination for higher education is a crucial step, and it is
essential to do the best choice possible and target outstanding institutions in the
field you are interested in. Quality of universities results of different factors, one
of them being the priority that a country has put on Research and Development
(R&D). Traditionally, Switzerland has given great importance to R&D, and
established a favorable environment for universities to develop and reach high
quality standards. The Swiss commitment to R&D is illustrated by the Table
below, which reports a cross countries comparison of gross domestic
expenditures on R&D as a percentage of the gross domestic product (GDP).
Science and technology in Switzerland play an important role in economy
as very few natural resources are available in the country. The Swiss National
Science Foundation, mandated by the Federal government, is the most important
institute promoting scientific research.
GREEN TECHNOLOGY
What role can a small country like Switzerland play in resolving global climate
and energy problems? Every month swissworld.org will document some of the
innovative solutions developed by Swiss scientists, architects and engineers.
Water vortices: a new source of alternative energy
Switzerland has emerged as a world leader in renewable energies. As
innovative ideas are hatched, researchers seek out technologies and techniques
to put them into practice. In 2009, the only gravitation water vortex plant in
Switzerland to date was commissioned in the village of Schftland (canton of
Aargau). The future is looking bright for this new form of hydroelectric power
generation.
Gravitation water vortex plants are built directly on top of the river bed. A
gravitation water vortex plant functions differently from traditional hydroelectric
facilities. It has a rotation tank equipped with a central outlet above which a
stable, symmetrical vortex forms. It then drives the turbine thanks to the
gravitational force between the turbine and the outlet. With 20 rotations per
minute, the turbine powers the generator, which transfers the resulting
electricity to the power grid.
Page | 28

Out of sight, out of mind what happens to our rubbish?

The Swiss lead the world when it comes to recycling, whether glass, aluminium,
PET bottles, paper, vegetable and garden waste, or electrical and electronic
goods. All other waste is put into refuse sacks, some which are more colourful
than others. These are then incinerated at a local waste incineration plant,
generating electricity as well as energy for district heating systems.
Wind energy clean power

generated by the force of
nature
At an altitude of 2332 metres,
Gtsch in the canton of Uri is
home to Europes highest wind
farm
Geothermal energy: the

heat is on in St. Gallen!
In November 2010, after a
series of feasibility studies
it was decided to build
Switzerlands first ever geothermal power plant in the city. The
deep drilling work will begin in January 2012 if on schedule will
start in 2014.
Where theres muck, theres gas SwissFarmerPower

enterprising local farmers came up with an innovative plan
to build a biogas plant. In 2010, their efforts were justly
rewarded, when they won the Watt dOr, the Swiss Energy
Prize, in the Renewable Energies category.
Clean drinking water thanks to nanotechnology

Water from the Gand Springs, which are near the Findel Glacier, 2280
metres above sea level, is perfectly hygienic, but it contains too much sulphate,
giving it an unpleasant taste, and the high calcium content clogs up boilers,
washing machines and dishwashers. Nevertheless, thanks to nanotechnology,
these springs have been providing clean drinking water since 2006 through
reverse osmosis.Water supply nanofiltration facility in Zermatt (Valais): In the
Page | 29

pipes, the source water is passed through the microscopic pores of the
membranes.
A Swiss solution to tackling oil

spills
Oilskill is a non-woven
polyester-based fabric that is
similar to the thermal fleeces much favoured by outdoor enthusiasts. Thanks to
an innovative treatment with a special chemical compound, engineers from the
Swiss firm HeiQ have managed to create a fabric that simultaneously combines
the properties of a sponge with those of an oilskin, i.e. it attracts and absorbs oil
but repels water.
Eco-neighbourhoods:
Paving
the way for a 2000-watt
society
CityCat
H2:
a
hydrogenpowered street sweeper that
cleans green
Solar Impulse, the zero-fuel

airplane
with
photovoltaic
panels charging batteries
Minergie
the
building
standard for the homes of
tomorrow
Headquarters of a major
insurance company in St.
Gallen. This Minergie-certified
building was designed by the
renowned architects from Basel, Herzog and De Meuron, and is physical proof
that ecological efficiency and cutting-edge architectural design are not
necessarily mutually exclusive. Built using high-performance insulation and
Page | 30

glass, the house derives all its energy needs from solar power and from the heat
emitted by its residents and the appliances they use.
Sun, sea and ecology: the PlanetSolar catamaran

PlanetSolar is the largest solar-powered boat ever built
Environment
Switzerland's ecosystems
can be particularly fragile,
because of the many
delicate valleys separated
by high mountains, often forming unique ecologies. The mountainous regions
themselves are also vulnerable, with a rich range of plants not found at other
altitudes, and experience some pressure from visitors and grazing. The climatic,
geological and topographical conditions of the alpine region make for a very
fragile ecosystem that is particularly sensitive to climate change.
CONCLUSION
The Positive Aspects Of Switzerland That Are Favorable To Start A Business:
Clear legislation: No lawyers to pay for standard contracts(direct face to face contract)
Helpful tax authorities and labor offices: The informative variables such as offices,
help lines, etc are totally updated and effective when help needed.
Low income taxes: incentives to do a good business reducing cost on taxes and
increasing savings.
Direct Democracy: its a peoples country everyone has a right to speech and
approaches the government so laws made for the people, by the people and of the
people.
Low Inflation Rate: therefore the demand and value of currency both balanced and if
value of prices are good then unemployment reduces (Everyone earns).
High GDP: high growth means better development and lifestyle, better market with
high demand.
Developed Sectors: Agricultural or industrial, all sectors are developed which is
helpful as a support to learn and start a business as machinery, information all are
available and efficient.
A Lively Active Society: the people of Switzerland are very active and timely
organized so the employees of the business will not be lethargic but will be well
organized.
Very well developed transport system: the transport system is well developed and on
time which affects the functioning the business as materials or labour both are
transported fast and according to the time schedule.
Page | 31

Innovation and R&D: Switzerland is one country that survives on R&D and
innovation, its technology and ideas are up to date and environment friendly and this
helps any business as new ideas in technological advancement will make the company
more efficient and richer.
English is commonly used therefore conversing and gathering information is easier.
Best universities that help train the employees for the company.
An Eco Friendly country: Affects a business as the machinery or equipment will be
non polluting which will keep the society, employees healthy.
The Negative Aspects Of Switzerland That Our Unfavorable For Starting A Business:
Too Many Laws: country is divided in many different cantons each having their own
laws and lifestyle so it becomes difficult to start a business as one has to be sure that
the type of business matches that canton. Branching out business becomes difficult as
barriers of communication.
Random climate: Since Switzerland is a country surrounded by mountains and the
Alps, determining the climatic conditions are difficult and unpredictable therefore
whatever business starts has to bear costs to be able to work throughout the year.
High competition: Switzerland is a very well developed economy. All sectors whether
agricultural or industrial or manufacturing sectors all have giant companies where
their market status is the highest in the country and some even in the world like
Swatch, Tag Heuer, Logitech etc therefore trying to compete at small scale or large
scale both are difficult and risky.
Difficult to attract employees: Since it is a developed country here the
employees prefer working in well known and established companies rather
than new companies.
Difficult to receive financing or loans: here the methods of acquiring loans
are difficult as the laws are strict and inspection done is quite rigid so the
new business has to have their own financial capital.
No cheap labor available: Since there are many giant companies and it
being a developed economy the quality of labour will be the best but very
expensive.
Page | 32

In conclusion, the opportunity and the idea of starting or expanding a business in

Switzerland has heavy initial investment and blocking of major capital but yet it
is quite beneficial and effective as in the long run the business will be a giant one
with many customers and an international brand name.
BIBLIOGRAPHY
Francis Cherunilam, International Marketing, 10th edition, Himalaya Publishing
House Pvt. Ltd. Mumbai- 04.
Jonathan Steinberg, Why Switzerland?, Second Edition, Cambridge University
Press
http://www.swissworld.org/media/political_system_2011/?lang=en
http://www.swissworld.org/en/switzerland/swiss_specials/green_technology/overvi
ew/
http://ivythesis.typepad.com/term_paper_topics/2010/03/pest-analysis-in-thebrazilian-market.html
http://en.wikipedia.org/wiki/Switzerland
www.cia.gov
Page | 33

www.infoplease.com
www.businessdictionary.com
www.gala-market-law.com
Page | 34

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A STUDY ON P.E.S.T.L.E.

A STUDY ON P.E.S.T.L.E. ANALYSIS

1.2 OBJECTIVES OF STUDY

4. To know various aspects of Switzerland through P.E.S.T.L.E. Analysis.

1.3 SCOPE OF STUDY

1.4 RESEARCH METHODOLOGY

A STUDY ON P.E.S.T.L.E. ANALYSIS

1.4.1 COLLECTION OF DATA

1.4.2 RESEARCH LIMITATION

Time and cost being a major constraint.

Research is only conducted through the Internet and reference books.

Research was limited to Switzerland.

A STUDY ON P.E.S.T.L.E. ANALYSIS

Most companies are either international or compete with international

A STUDY ON P.E.S.T.L.E. ANALYSIS

Why International Business?

The company is responding to demand and in order to develop it discover

A STUDY ON P.E.S.T.L.E. ANALYSIS

technology/solutions, inventions, research, intellectual property issues, advances in

A STUDY ON P.E.S.T.L.E. ANALYSIS

A STUDY ON P.E.S.T.L.E. ANALYSIS

In nominal terms, Switzerland is one of the richest countries in the world

A STUDY ON P.E.S.T.L.E. ANALYSIS

Motto: Unus pro omnibus, omnes pro uno (traditional)

Bern (de facto)

A STUDY ON P.E.S.T.L.E. ANALYSIS

Johann Schneider-Ammann Alain Berset

41,285 km2 (133rd) 15,940 sq mi

$321.898 billion[4] (36th)

0.903[5] (very high) (11th)

Swiss franc (CHF)

Summer (DST) CEST (UTC+2)

right (trains: left)

internet TLD: .ch

calling code: +41

A STUDY ON P.E.S.T.L.E. ANALYSIS

POLITICAL AND LEGAL FACTORS :

A STUDY ON P.E.S.T.L.E. ANALYSIS

A STUDY ON P.E.S.T.L.E. ANALYSIS

A STUDY ON P.E.S.T.L.E. ANALYSIS

government whose council members, rotating in one-year terms as federal

accepts compulsory ICJ

Suff rage :18 years of age; universal

A STUDY ON P.E.S.T.L.E. ANALYSIS

A STUDY ON P.E.S.T.L.E. ANALYSIS

Milk and dairy products including cheese

Meat, game, seafood

Drugs and other chemicals

Precious metals, watches, jewellery.

Labelling/Marking: Consumer goods must be marked with the country of

A STUDY ON P.E.S.T.L.E. ANALYSIS

Certain agricultural goods

Drugs and other chemicals

Certain knives (HS#8211)

Motors, turbines (HS8409->)

Certain articles made of steel/Iron, Copper

Radar and other navigation devices

Vehicles (ground, air, water)

A STUDY ON P.E.S.T.L.E. ANALYSIS

powerful economies in the world.

chemicals (34% of exported goods), machines/electronics (20.9%), and precision

A STUDY ON P.E.S.T.L.E. ANALYSIS

A STUDY ON P.E.S.T.L.E. ANALYSIS