PESTEL analysis of France
This is a detailed PESTEL analysis of France. The aim of this article is to explore some of the political, economic, social, technological, environmental, and legal factors that affect France today. France is officially known as the French Republic. It is a very powerful player on the global political stage.
Political factors affecting France
France is one of the most important countries in the Western world and plays a highly significant role in international affairs. It is a founding member of the United Nations and serves as one of the permanent members of the UN Security Council.
France plays a key role in the European Union as one of the leading member states. It is also one of the major allies of the United States. However, many analysts argue that a strong relationship and alliance between France and Germany may serve as an alternative to the American hegemony.
France maintains good bilateral relations with the UK even though the historical ties between the two have been marked by many challenges. It has also built an influential presence across the Middle East. However, it is worth mentioning that some of its foreign policies have drawn widespread criticisms.
France enjoys a good political stability. However, it has recently faced a number of law-and-order challenges. Weekly protests over a number of issues have been very regular in the last few years. These have disrupted businesses and affected the confidence of both local and international investors badly.
Economic factors affecting France
Economic environment is another key area of discussion in this PESTEL analysis of France. France is one of the top ten economies in the world. It contributes immensely to the GDP of the Euro area (Focus Economics, 2021). Its closest trading partner is Germany.
In addition to the UN, European Union, and Eurozone, France is also a member of G7, NATO, WTO, and OECD. It houses some of the largest companies in the world e.g. AXA, L’Oreal, EDF, Carrefour, LVMH, PPR, Areva, Veolia Environnement, JCDecaux, and Air France, to name but a few. The operations of these companies demonstrate that the French economy is very diversified.
France has a highly developed and diversified economy. It is famous for its excellence in cosmetics and luxury products. It is also one of the global leaders in the automotive, aerospace and railway industries. However, it is worth mentioning that services are the main player in the French economy.
The GDP of France is expected to reach around $2973.00 Billion US dollars by the end of 2023 (Trading Economics, 2023). The economy rebounded quickly following the recent global lockdown challenges (OECD, 2022).
France’s financial services sector has grown significantly over the years. Likewise, high-value food & drink, and leisure & tourism industries are also doing very well. In fact, France is one of the top tourist destinations in the world. It is known for its stunning scenery, rich culture, and vibrant cities. In addition, it is home to some of the best museums, galleries, and monuments in the world.
Social factors affecting France
France is one of the most modern countries in the world. It has a total population of 65.5 million (Worldometer, 2023). The population is very diverse, with people of many different backgrounds and origins. The life expectance for men is 79 years and 85 years for women (BBC, 2023).
France is famous for its cuisine, fashion, perfume, cars, culture, and language. No wonder why it is the most visited tourist destination. It is also interesting to note that French is the second most widely learned foreign language in the world.
The French culture is renowned for its sophistication and elegance. The country is home to some of the greatest writers, painters, musicians, and filmmakers in the world. French cuisine is very renowned, and its fashion industry is one of the most influential in the world.
Education in France is free and compulsory for children aged 6 to 16. In addition, higher education is free for students who meet certain requirements. France has a number of prestigious universities, including the Sorbonne in Paris, and the École Normale Supérieure.
While many French citizens enjoy high living standards, France is not without social challenges. The unemployment rate is high and industrial strikes, demonstrations, and labor unrest are common in France. Likewise, anti-immigration sentiment is rife with some spheres of the French society.
France also needs to work more to deal with the issues of discrimination. A recent study conducted by INSEE and CRAN has found that the vast majority of Black or mixed-race French people have been victims of racial discrimination.
Technological factors affecting France
Technological environment is the next element to discuss in the PESTEL analysis of France. France is one of the most technologically advanced countries in the world. It has a remarkable history in the areas of science, IT, and space technology.
In fact, France launched its first satellite more than 50 years ago. With this, it became the third nation to launch its own satellite, and the sixth nation to have a satellite in orbit after former Soviet Union, USA, Canada, UK, and Italy.
The French government has invested heavily in research and development and has established a number of technology hubs throughout the country. In addition, the country is home to a number of tech giants.
The usage rate of the Internet is stunning in France. However, competing with London to draw the attention of start-ups, venture capitalists and some of Silicon Valley’s biggest names is a big and on-going challenge for Paris. Likewise, shortage of computer engineers is also challenge.
Environmental factors affecting France
France is the most visited country in the world with 66.6 million tourists visiting it in 2022 (Hughes, 2023). The stunning sights and sounds of places like Eiffel Tower, Louvre Museum, Palace of Versailles, Côte d’Azur, Mont Saint-Michel, Provence, Chamonix-Mont-Blanc, Brittany, and Rocamadour entice people from around the world to visit the country.
However, there are some environmental challenges that have raised concerns among the French residents and tourists. For example, air pollution is a significant environmental problem in France, so is water pollution. Other environmental concerns are but not limited to natural disasters, household waste, noise pollution, and the erosion of biodiversity.
Legal factors affecting France
Legal environment is the last element to discuss in the PESTEL analysis of France. A detailed discussion on the French legal environment is beyond the scope of this article. Therefore, the article touches briefly on some aspects of the employment laws in France. 0
The legal length of the working week is 35 hours in all types of companies. However, many people work more than that. The French employment law has provisions for employee overtime, annual leave, sick leave, maternity leave, paternity leave, sabbatical leave, and some others.
The judiciary in France is independent, and the court system is divided into civil, commercial, and criminal courts. The highest court in the country is the Court of Cassation.
Summary of PESTEL analysis of France
In conclusion, France is a beautiful and vibrant country with a rich history, culture, and cuisine. It is known for its stunning scenery, vibrant cities, and prestigious universities. It is a leader in the field of technology, and an important member of the European Union.
From its geography and population to its economy, religion, and education, France is a fascinating country with a lot to offer. It is an ideal destination for tourists, and a great place to call home. However, it faces lots of challenges in different fields.
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Last update: 17 February 2023
BBC, 2023) France country profile, available at: https://www.bbc.co.uk/news/world-europe-17298730 (Accessed 17 February 2023)
Focus Economics (2022) France Economic Outlook, available at: https://www.focus-economics.com/countries/france (Accessed 17 February 2023)
Hughes, R. (2023) Which two EU countries are battling for the title of world’s most visited destination? Available at: https://www.euronews.com/travel/2023/01/12/which-two-eu-countries-are-battling-for-the-title-of-worlds-most-visited-destination (accessed 17 February 2023)
OECD (2022) France – Economic forecast summary (May 2018) http://www.oecd.org/economy/france-economic-forecast-summary.htm (Accessed 17 February 2023)
Trading Economics (2023) France GDP, available at: https://tradingeconomics.com/france/gdp (Accessed 17 February 2023)
Worldometer (2023) France population, available at: https://www.worldometers.info/world-population/france-population/ (accessed 17 February 2023)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.