Pest Analyze of Cosmetics Business in China.

2559 Words Dec 27th, 2012 11 Pages
PEST analyze of cosmetics business in China.

In order to reserve the objectiveness of value judgment, simultaneously, to give effective advice to the company which we selected before, we decided to use PEST to analysis environment in cosmetics industry.

P
“P” means political. Generally, politics will give great impact on firms’ activities. The factor includes political institution, policy and law. These elements usually influence company’s operation, thus, the enterprise should pay attention to several issues bellow: * Whether the political environment is stabilizing? * Will government policy influence laws that regulate or tax your business? * What is the government's position on marketing ethics? * What is the
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Recently, State administration of taxation today said, according to the ministry of finance and the state administration of taxation about advertising and business spending publicity expenses deducted policy in the notice of the provisions of article 1, cosmetics manufacturing and sales, pharmaceutical manufacturing and beverage manufacturing (do not contain alcohol manufacturing) enterprise happen advertising and business publicity expenses spending, not more than the sales (business) income 30% is allowed to deduct the part. In addition, excess portion will deduct after tax year carried forward. This policy has been executing since January 1, 2011 to 31 December 2015.
There is no doubt that this policy will contribute to increase the enterprise’s profits, and extend its production. While, there still another issue need to be solved right now. In recent years, more and more cosmetics’ enterprises have been established in China, especially, a lot of famous cosmetics company gradually into Chinese market. Simultaneously, a series of problems have appeared, such as excess levels of heavy metal. Thus, State Food and Drug Administration said that, according to the Cosmetics safety technical specifications, the new technical specifications for the product sets the lead, the arsenic residue limits respectively from the current 40mg/kg, 10 mg/kg, adjust to 10 mg/kg, 4 mg/kg. This means that the content of…