Eurocopter (Global/National Environment)

Eurocopter, a subsidiary of the European Aeronautic Defense and Space Company, was formed in 1992 as a merger of the German Daimler-Benz Aerospace AG (DASA) and the helicopter divisions of French Aérospatiale. The company has produced about 9,800 helicopters, which are used in 140 countries around the world.
There are a few political factors that affect Eurocopter. The company produces helicopters that are used in war, so the political climate affects how much a company such as Eurocopter would produce. If World War Three was suddenly to begin, the production of helicopters would certainly increase, while if world peace was to happen tomorrow, the production of helicopters would most likely tail off. The other main political factor that affects how a company like Eurocopter sells its product is the political situation between Germany and the country to which they are trying to sell a helicopter. Middle Eastern countries probably aren’t buying their product, since they would not want to use western products, and since Germany would probably not want to help someone that could possibly attack them with the very helicopters that were sold.
The number one economic factor that affects Eurocopter is the exchange rate with the Euro. Depending on how strong a currency is in relation to the Euro could depend on whether or not it would be profitable to sell their product there, or if they wanted to set up production facilities in the country. The other economic factor that affects Eurocopter is import and export taxes. The company might have to charge more to import the product to a country with a large import tax, so that they can still maintain profit. They might also want to set up a production facility that has a low export tax, so that it is less expensive to export the product to the seller.
There are not many social factors that affect Eurocopter. The only real social factor is a country’s emphasis on safety. Europe has placed large importance on safety, and Eurocopter produces safe, reliable helicopters.
Technological factors are always affecting something like helicopter manufacturing. As new technologies are made like better RADAR, better communication devices, and stronger materials, Eurocopter will be sure to implement them into their helicopters to get an edge on any competitors. One of the most promising future products that Eurocopter is working on is the hybrid plane and helicopter. The device takes off like a helicopter but flies like a plane, combining the best of both airborne devices. However, the technology is not fully developed yet, which shows why future technological prospects are so important to Eurocopter.
All of these factors are of interest to business and engineering students, because these factors exemplify how a company must change to keep up with competitors. PEST factors are constantly evolving, which means a company must constantly adapt to stay profitable and in business. Eurocopter has done well at adapting to these factors and have emerged as the leaders of their field, causing them to be a great company to study for business and engineering students.