Global Business In Context

Global Business In Context
1

Table of Contents
INTRODUCTION.......................................................................................................................................3
Background of Alpha Manufacturer........................................................................................................3
Overview of German manufacturing industry.........................................................................................4
Business environment of Germany that can affect .....operations and performance................................4
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11
2

INTRODUCTION
Business environment is a marketing term which refers several internal and external
factors and forces that affects an organization’s ability to maintain and well as build successful
customer experience (Bah and Fang, 2015). It is made up of several factors which may be
internal and external such as: political, social, environmental, strengths and weaknesses of the
company etc. This study is based on Alpha manufacturing which is a UK based custom metal
fabrication company which offers cost effective, qualitative fabrication services. This study is
going to show several external environmental factors and their critical impacts on the
performance and growth of the company. With the help of PESTLE analysis model, alpha
manufacturing analyze all external factors and their impacts for taking competitive advantages
and becoming success in Germany market by expanding its business. Further, it will also show
some strengths and weaknesses of the company which helps it out in reducing negative impacts
of external factors and make them in its favor. There is a strong interrelationship between
internal factors and external factors and by improving internal factors, company take advantages
of external environment.
Background of Alpha Manufacturer
Selected company for this study is Alpha manufacturing who is a small manufacturer and
a member of the Bri-stor group, fabricating sheet metal in the UK. It designs as well as produces
sheet metal components and assemblies. It is established in the year of 1989 and give
employment opportunities to approximate of 100 people. It is stated that it utilizes and makes an
effective use of leading technology. It manufactures variety and diverse range of products with
the main aim of satisfying customers by producing sheet metal fabrication. It has a great
experience which made it able to grow and it is the reason it now wants to expand its business
internationally and Germany (Alpha Manufacturing, 2019). For accomplishing its goal and
taking competitive advantages irt is now focusing in increasing and strengthening skills of its
employees and wants to make them more compatible to others. By doing so, it can bring
innovation and creativity in its products and services which can help it out in making success in
Germany and in the heart of people. There are several departments in this company who are
3

specialize in their work and due to increasing demand of its products it wants to expand its
existing weld department and that is why it is looking for the right candidate.
Overview of German manufacturing industry
In the context of Germany it is stated that this country has approximate of 2.6% of world
production in steel and metal. Steel industry in Germany is mainly responsible for about 30% of
the value creation that is being achieved by the European steel industry. Most of the customers
come from automotive and construction industry. This country runs mainly 4 groups that run
different sites of the country. Annual production of steel in Germany is accounted about 43
Million tones of crude steel in the year of 2014. It is considered as the world’s 7 largest steel
producer and the largest in the European. This is the main reason of Alpha manufacturing to
expand its business and attract customers of their to the great extent by providing them variety of
innovative and creative products. In addition, it is also stated that about 2/3 of steel in Germany
in produced in integrated steel mills and rest of the steel is produced through the electric steel
route (Steel manufacturing industry in Germany, 2018). Most of its products are flat. Stainless
and alloyed steel make up to 50% of total production. This data shows that Germany has a great
manufacturer and also the best place to expand company.
Business environment of Germany that can affect .....operations and performance
Business environment is made of 2 environments such as internal and external. Internal
or within business environment includes all those factors which are in the control and in the hand
of businessman such s its company’s strengths, weaknesses, opportunities and threats. Some of
its factors have linked with external factors. On the other hand, external factors include those
factors that are not in the hand of business man to control but their some activities can make all
factors in their favor. Examples of external factors includes: Political stability/instability,
economic conditions, social factors like market trends, changes in needs and demands of
customers etc. technological factors like using of advanced technology by same industry of
companies and people (Omsa, Ridwan and Jayadi, 2018). All these factors have great positive
and negative impacts but people’s activities and performance can change the current situations of
all factors For example: If there is a political instability and economic crisis but efforts of
companies and collaborations of companies can make all situations in their favor. As like this, by
focusing on improving quality of services and products it can satisfy social factors and
4