PEST Analysis On Spain

Spain
Teaching IT skills
Product
We will set up IT classes available to the people in Spain.
Target students : age 18 and above, unemployed workers.
A skills school to improve work chances for the workers in the future.
First we will teach basic IT skills such as excel spreadsheet. And then
move on to more advanced program (students can choose to) ->
programming.
Scholarships and low prices will be given to students. Get fundings by

the government or other sponsors to work with.
When students finish, we work with other companies and assist

students to get a job.
Social
Demographic
Population: 47,370,542
Dependency ratio is 49.5%
Economically active ratio is 46.2%
Unemployment rate is over 26.6%
Age between 20 and 30s unemployment rate is over

56.6%
Literacy: age 15 and over can read and write

- total population: 97.7%
Consumer attitude and

opinion
General homes consumption and financing rate are on a

downturn due to the long-term business depression.
Spains domestic consumption decreased frequently to
-3.9% in 2013
Consumers believe the economic situation will be better in the future

In 2012 the consumers consumption mentality rate was 40p, which was very low
however from 2013 it is constantly increasing and now it reaches to 83.7p.
Nevertheless still the consumers consumption mentality rate is lower than 100p,
which shows they still have the negative opinion on the situation of the marketplace
consumer buying patterns
Consumers mostly buy IT

products like smartphones,
Tablet PC and products which
are related to health during
the business depression.
Within 12 month 60% of
consumer bought IT products
Although Spain is in long-term business depression,

consumers constantly purchase IT products, accessories,
health related service products and some sports products.
However, products like furniture are rarely purchased by
consumers.
Consumers buying access and trends
Consumers frequently use internet to order products and

search information about the products
The percentage of
consumers
searching about the
products
information on the
internet before
purchasing it in
2013 is 90% which
has increased 22%p
than in 2010.
During the economic depression, IT products are the

best selling products in Spain. 90% of the Spanish
people use the internet to search for their products.
This shows the potential of our company in Spain

because as the time flies by, more and better IT
skills will be needed
Due to the high unemployment rate which is about

26.6%, in the future, our company would have many
students learning IT skills.
Economy
General taxation issues

VAT(Value Added Tax)>(Impuesto sobre el Valor Aadido)
is
a form of consumption tax; a tax only on the value added to a product,

material, or service
In Spain, 21% on most goods and services

10% for reduced rate( Health products and equipment, Passenger transport)
4% for super-reduced rate(books,newspapers, magazines, basic foodstuff,
human medicine)
As a programming educational institution, we should provide

students high quality computers.
However, 21% of taxation on computer is huge.
We might not be able buy top quality computer at the beginning.
We might have to consider leasing some computers.
corporate tax
In Spain, corporate tax is 25%-30%
For educational institution, cooperation tax is 30%
This is relatively low comparing with other MEDC.
However This still might a problem, 30% of

corporate tax at the beginning is quite tough
Interest rates
The benchmark interest rate in Spain was last recorded at

0.50%. From 1998 until 2013, Spain Interest Rate averaged
2.6% and a record low of 0.5 Percent in May of 2013.
The benchmark interest rate in Spain is

definitely going down. The rental fee for
building,
Economic indicator
Leading indicators(LEI):Leading indicators are

indicators that usually change before the economy
as a whole changes. They are therefore useful as
short-term predictors of the economy.
Coincident indicators(CEI):Coincident indicators
change at approximately the same time as the
whole economy, thereby providing information
about the current state of the economy.
The Conference Board LEI for Spain increased for a sixth

consecutive month in September 2013, with stock prices making
the largest positive contribution. Between March and September,
the leading index increased 2.5 percent, slightly above its 2.2
percent increase during the previous six months. In addition, the
strengths among the leading indicators have remained more
widespread than the weaknesses in recent months.
The Conference Board CEI for Spain, a measure of current economic

activity, declined again in September. The coincident economic
index decreased 1.1 percent in the six-month period ending in
September 2013, an improvement from its decline of 2.3 percent in
the previous six months. In addition, the strengths among the
coincident indicators have become more widespread than the
weaknesses in the last six months.
The LEI for Spain has been trending upward during the past
twelve months, and as a result its six-month growth rate has
improved. Meanwhile, the CEI for Spain has been on a
downward trend for more than two years, but its six-month
growth rate has become less negative than earlier this year.
In conclusion, the recent behavior of both indexes suggests

that the current contraction in the economy should continue
to ease and modest economic growth is possible going into
2014.
Both indexes are showing the economic growth.

> More people in Spain are willing to use
money > Therefore we can secure number of
the students to our new school
Associated/dependent
technology
In Spain, as of 2010, 62.6% have access to internet

so they have access to computers. (Although some
may be in cyber cafes). Many consumers will be
familiar with the use of internet and computer.
WE will need to : Buy computers
Should be newest and updated - be in with

computers (programming and basic skills)
Expensive!
Technology
Legislation
Anti Piracy law recently passed.
Make sure students and what we do is not

breaching privacy.
Strict on where we get resources (but has

more procedures and more expensive)
Damage reputation and fine money.
Information and
communication
To communicate with customers we will use

the internet.
Put up websites which gives detailed

information about our classes
Online customer service
But takes more time to set up
Technology development
Technology advances, teaching

programming and basic skills will also need
to keep up.
We will have to update our softwares and

as time goes by, update our computers to
be more advanced.
Politics
Spain
Spain is established as Social and

democratic state
Spain has constitutional monarchy
The president of the Government is elected

by the Congress of Deputies
government policies about

education
Education Law
School Timing:
-The
school year is divided into three terms with a long

summer holiday break of almost three months.
Winter term (September to December).
Spring term (January to Easter).
Summer term (After Easter to late June).
Adult education is addressed to people over 18.
Spain Education System
Vocational training is designed to train specialized,

qualified worker to incorporate into the labor market in
the industry or services sector.
The students need to hold a Certificate which can enroll in
Intermediate Vocational Training (FP)
After the students finished their program, the students
will obtained a technician certificate which allows them to
enter the labor market.
According to the education system, our school have to
provide the Certificate for the students to ensure their
career life.
funding, grants and

initiatives
The funds are mainly provided by the Ministry of Education and

by regional education authorities, the local government will also
contribute the funds.
Private financing- from families or private institutions.
The Spain government decided to cut budget on education. This

means our school is less likely to get grant from the government.
Even though its unlikely to get grant from the government but
its possible to finance fund privately.
regulatory bodies and

processes
The ministry of Education is the body of Central Government

Administration in charge of putting forward and
implementing the common guidelines for educational policy.
Regional Government has the Education Department, it
responsible for school staff and provide education service.
Local government has to cooperate with education
authorities on development of education authorities.
Our school have to corporate with these institutions or
departments in order to ensure the school is running legally
and follow the instructions of the educational policy.
Government term and

change
Organic Law for Improving Education Quality

(LOMCE)-the education reform in Spain, the
teachers salary will be cut. -> we can offer
higher salary to attract the high qualified
teachers to join our school.
Set guidance system from education and labor

authorities, guiding people on the training and
employment pathways. It is issued by the
Ministry of Education.
Teachers qualification
Teachers need to have a engineer or

technical architect diploma.
Our school has to employee the teacher

according to these qualification. Otherwise
our school will be banned by the education
authorities since the teachers are
unqualified.

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Spain

We will set up IT classes available to the people in Spain.

Target students : age 18 and above, unemployed workers.

Scholarships and low prices will be given to students. Get fundings by

When students finish, we work with other companies and assist

Dependency ratio is 49.5%

Economically active ratio is 46.2%

Unemployment rate is over 26.6%

Age between 20 and 30s unemployment rate is over

Literacy: age 15 and over can read and write

Consumer attitude and

General homes consumption and financing rate are on a

Consumers believe the economic situation will be better in the future

consumer buying patterns

Consumers mostly buy IT

Although Spain is in long-term business depression,

Consumers buying access and trends

Consumers frequently use internet to order products and

During the economic depression, IT products are the

This shows the potential of our company in Spain

Due to the high unemployment rate which is about

General taxation issues

a form of consumption tax; a tax only on the value added to a product,

In Spain, 21% on most goods and services

As a programming educational institution, we should provide

In Spain, corporate tax is 25%-30%

For educational institution, cooperation tax is 30%

This is relatively low comparing with other MEDC.

However This still might a problem, 30% of

The benchmark interest rate in Spain was last recorded at

The benchmark interest rate in Spain is

Leading indicators(LEI):Leading indicators are

The Conference Board LEI for Spain increased for a sixth

The Conference Board CEI for Spain, a measure of current economic

In conclusion, the recent behavior of both indexes suggests

Both indexes are showing the economic growth.

In Spain, as of 2010, 62.6% have access to internet

WE will need to : Buy computers

Should be newest and updated - be in with

Anti Piracy law recently passed.

Make sure students and what we do is not

Strict on where we get resources (but has

Damage reputation and fine money.

To communicate with customers we will use

Put up websites which gives detailed

Online customer service

But takes more time to set up

Technology advances, teaching

We will have to update our softwares and

Spain is established as Social and

Spain has constitutional monarchy

The president of the Government is elected

government policies about

school year is divided into three terms with a long

Winter term (September to December).

Spring term (January to Easter).

Summer term (After Easter to late June).

Adult education is addressed to people over 18.

Spain Education System