Expanding Business in Germany: A Comparative Analysis

Assessment

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
Company outline.....................................................................................................................................3
Comparison countries (United Kingdom and EU country France) based on global business environment
.................................................................................................................................................................4
Entry model analysis...............................................................................................................................8
Recommendations...................................................................................................................................9
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................11

INTRODUCTION
Many manufacturing companies are expanding their business to other countries in order
to achieve business objectives and can gain large number of customers. In other words, it can be
said that organisation expand their functions and operations because they can earn revenue and
can gain competitive advantage (Dalirazar and Sabzi, 2020). In this report, UK manufacturing
company is taken as a base consideration which is named as Iceland Foods Ltd. The selected
organisation has to expand their business till the year 2022 in one of the European country which
is German. The report includes about why organisation is expanding and why they have chosen
European country to explore their manufacturing business. It also includes the PESTLE analysis
and compare them with both countries which are United Kingdom and European country. There
are some recommendation and entry mode analysis so that they can take effective steps when
selected organisation is expanding their business in German.
MAIN BODY
Company outline
There are various reasons that Iceland manufacturing Ltd is expanding their business in
German because they have to enter into market so that they can export their food items in
different countries. Means this type of expansion help selected company to diversify their
product into different countries. With the help of this they can remain competitive in chosen
industry which lead to increase in sales and revenue of organisation. In this way they can attract
the talented candidates where they are operating or expanding their business which is Germany.
The Iceland manufacturing can improve the reputation of company so that they run their business
in the chosen country which will help them to achieve business objectives. The selected
organisation is expanding their business in European countries because there are various
opportunities available to grow and develop manufacturing business. in Germany there is large
number of customers. so, this is why organisation is expanding their business in European
countries.

Comparison countries (United Kingdom and EU country France) based on global business
environment
PESTEL analysis basically provides a framework that is applied by a manager to have
better analysis about the key elements of the external environment in a more systematic and
effective manner. In other words, it can be said that Iceland manufacturing is a small
organisation as they are expanding their business in other markers. So, they have to analyse and
identify the external factors so that they can effectively operate their business smoothly. The
PESTLE analysis of both countries which are United Kingdom and Germany in context to the
selected organisation which is mentioned below:
 Political factor: The political factor of United Kingdom is that they have stable politics so
that it helps selected organisation to operate their business in an effective manner. But there
are some challenges during the Brexit period as there is many changes in the rules and
regulations so that they can operate accordingly (Damayanti and Rahadi, 2021). It has been
assumed by many people that the leaving of EU by UK would lead significant impact on the
overall growth of the country along with importing its economic condition but still wider and
numerous number of job opportunities would also get open up by the Brexit. It has been also
seen that over the year both have formed a strong and cordial form of relations for which
critics also praise the British government support for making a foreign autocratic supporter of
government. Apart from this, still the UK is the one of the most influencing nation of the
world that have significant impact on other nations along with having a hereditary republic
form of government along with parliamentary democracy. In context to the selected
organisation they have many stores in United Kingdom so that they can easily distribute their
goods and services to customer in an effective manner.
On the other hand, political factor of Germany is a democratic republic with a federal,
legislative, and representative government (Gheibi and et. al., 2018). Though Germany's
President is the country's head of state, the Chancellor is the country's head of government and
retains constitutional powers through the Cabinet. In other representative democracies around the
world, the Chancellor is almost equal to the Prime Minister. By sea, Germany shares a border
with the United Kingdom and Sweden and many other European countries.