Peru Pest Analysis Essay

This research document is a general over view of Peru with emphasis on Politics, Economy, Social, and Technology of the country. In researching Peru, I have found many interesting facts and have learned many fascinating things about this country’s deep heritage. Peru is a country with a lot of potential when it comes to the business world, in this document I hope to show that. The History of Peru The United States Government has this to say about the Peruvian history, “When the Spanish landed in 1531, Peru’s territory was the nucleus of the highly developed Inca civilization.

Centered at Cuzco, the Incan Empire extended over a vast region from northern Ecuador to central Chile. In search of Inca wealth, the Spanish conqueror Francisco Pizarro, who arrived in the territory after the Incas had fought a debilitating civil war, conquered the weakened people. The Spanish captured the Incan capital at Cuzco by 1533, and consolidated their control by 1542. Gold and silver from the Andes enriched the conquerors, and Peru became the principal source of Spanish wealth and power in South America.

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Pizarro founded Lima in 1535. The viceroyalty established at Lima in 1542 initially had jurisdiction over all of the Spanish colonies in South America. By the time of the wars of independence (1820-24), Lima had become one of the most distinguished and aristocratic colonial capitals and the chief Spanish stronghold in the Americas (along with Mexico City). ” I looked at this and decided it was unjust. Not only does it not discuss its pre-Columbus history, it also doesn’t talk you about the great people known as the Inca.

The Inca Empire was the largest empire ever to exist in pre-Columbian America. You can turn on the discovery channel right now, and most likely see them promoting their new Inca documentary. There are a lot of films about the Inca Empire, and for good reason. We are still learning things about the Inca today. Most ancient civilizations can be studied in 10 to 20 years and today’s researchers will know everything about them. The Inca are different. The Inca had no written language, what so ever.

The country of Peru has a great heritage which needs to be brought up in this paper. One of the main reasons history is so important in a paper about international business is that a civilizations history makes their culture what it is today. And as I have learned in this class you cannot do business with people when you do not know their culture. Another major factor of doing business with someone from another country is knowing their geography. Peru on the Map Peru has many advantages, such as its rich amount of copper, silver, lead, zinc, oil and gold.

It also is in a great location, in Western South America, Bordering the South Pacific Ocean, Between Chile and Ecuador. This country offers many PROs to going here; the geography is one of them, having a border to the Pacific for exporting any product we chose to make there. The Politics of Peru “Peru Politics is the most changeable one in the South American Politics and it had diversified a lot in the recent years. Election in Peru is directly headed by the President (head of the state) and by the legislature. The president is further elected by the people for five years.

Multi-party system is followed by the Peruvian government and this process hampers one party to influence any decision making scenes, so collaboration is seen between all the parties. National jury of the electors along with the office of electoral processes takes the charge of the whole election process on the Peru politics. Political parties in Peru are further categorized under three sub categories and they are Peruvian Aprista Party members, Trotskyist organizations of Peru and Youth wings of political parties in Peru and all of them perform the Peruvian Politics in a cohesive manner.

Foreign relation in Peru is also good and the year 1998 witnessed a major peace agreement between Peru and Ecuador and this has almost resolved the differences and conflicts between the nations . Peru is also the member of the United Nations since 1949 and it’s even planning to fully integrate in Andean Free trade area. ” This overview of Peruvian politics shows that many of the government structures that the U. S. has Peru has as well. This makes Peru a bit easier of a country to expand to. Omnipresent Industries could easily send an existing employee to the country with a Peruvian liaison.

Another that must be looked at when expanding to a new country is how the Country itself feels about an inflow of foreign companies. “The solid and stable economic position recently earned by Peru, as a result of the economic stabilization and structural reform process applied in the early ‘90s, and the implementation and execution of an adequate legal framework that strengthened the respect, guarantee and protection of investments, were determining factors for the creation of an appropriate climate for investment.

In addition, the Peruvian Government has adopted a free market economic regime, understanding that the private sector can collect capital more efficiently and administrate its resources more efficiently than the public sector. Thus, according to article 60 of our Constitution the State may carry on business activity if expressly authorized by law and only in cases of high public interest or clear national convenience, and if no private individual or entity is interested in carrying on said investment.

The State is, therefore, basically limited to devote its resources to essential social and regulatory functions. As a consequence of the above, the Peruvian government is continuing in its effort to attract the inflow of foreign capital by bringing down the possible barriers to inbound investment. ” As seen in this quote the country looks like a great future location for Omnipresent, but we most look to see if other U. S. Businesses have seen Peru as a great growing location.

These facts show us Peru is a great place to expand, But more factors must go into deciding if this is a good fit for Omnipresent. One of which is political stability, which Peru would be a had many problem with in the 1990s, but for the past ten years Social and Labor Of Peruvian People Like many countries that are just starting to grow economically there are problems. One of the main problems that U. S. companies see when expanding to a lower developed country is the labor laws. This, however, is a good thing when it coming to the company’s bottom line. The labor movement recognizes the stalemate within national level decision-making bodies, such as the National Labor Council, which have not been able to move forward on passing a national minimum wage, and the Congress, which has opened debate on a number of pro-worker bills only to have them die in committee. In response, there is an increasing emphasis on building up regional labor federations and using these groupings to push for strengthened local enforcement and accountability on the part of employers and the government. The Labor

Ministry has supported the development of tripartite Regional Labor Councils as well as increased coverage by labor inspectors in the regions. It remains to be seen whether the various confederations within the labor movement will cooperate to serve as a unified labor front for engaging with their counterparts in the Regional Labor Councils. Nonetheless, in spite of recent positive signs coming from the Labor Ministry, only a coordinated, grassroots demand from workers from around the country will generate the momentum to push for the legal reform and political will necessary to meaningfully improve enforcement of worker rights in Peru. This Overview by The Solidarity Center shows us that Peru, for now, is a place that we can help develop and also have a. increase in profit because of their lower wages. This quote also shows that things are in motion to raise wages. This, to me, is still a positive we can still pay the Peruvian employees that we are planning on hiring more than many other companies in Peru at this time can pay. We can help improve these Labor Laws, but still make a profit, Omnipresent also can make sure people in the U. S. sees the work we are putting into helping the Peruvian people, which makes for good Public Relations.