Essay on Boots Company in Germany Report
Added on 2020-06-04
16 Pages3378 Words64 Views
Boots Company -Developing inGermany
TABLE OF CONTENTSINTRODUCTION:..........................................................................................................................1Background of Boots .............................................................................................................1Background of Germany .......................................................................................................1Application of an appropriate analytical approach.................................................................3Data and examples..................................................................................................................8CONCLUSION: ..............................................................................................................................8REFERENCES:.............................................................................................................................10
INTRODUCTION:Every business needs to analyse market conditions and business environment in order tosurvive in the market. They need to analyse what factors will affect them to grow and develop.By analysing factors, strategies and plans are developed. These strategies help in expanding thebusiness operations in various countries (Botha, Kourie and Snyman, 2014). Moreover, everybusiness goal is to expand and grow in various countries to earn more profits. It is only possibleif country’s environment is fair enough to do business. This report will focus on how internal andexternal environment of business affects its growth. Also, which factors needs to be determinedto identify growth opportunities. For undertaking this report, the organisation selected is Boots. The cited firm belongs topharma sector and operates in UK. The existence of company on such a national level requireseffective business strategies to grow and develop (Moroni, Arruda and Araujo, 2015). Thus,this report will help in developing a relevant one for the cited establishment.Background of Boots The company belongs to pharma sector and having its business operations within UK. Itis the leading health and beauty retailer in UK. It is a pharmacy chain that is having more than2500 stores within UK. Its stores are located in high street market and shopping centres. Its mainproducts are related to beauty and healthcare as well as provide various services (Bah, and Fang,2015). Along with this, there are many products sold by company such as medicines, food anddrink meals. Company is also having its own retail website. It contains a loyalty card programmecalled as Boots advantage card. It usually focuses on high class customers that are able topurchase their products. In the recent scenario, it has focused on people who are very consciousabout their health and beauty. Boots have also opened their stores in countries like Thailand andRepublic of Ireland. It is growing at a fast rate and generating huge revenues. In 2007, companycollaborated with US largest drug store chain Walgreens. They purchased 45% stake in Boots.They formed an alliance known as Walgreens boots alliance. In US, it is they are having storesby Walgreens and in UK by Boots (Savrul, Incekara and Sener, 2014).Background of Germany Germany is a country that is having high growth rate and GDP. Its economic growth isincreasing every year with the development of country and people. Due to continuous innovation1
in technology, many big companies have focused towards Germany to develop their business.This is also due to the fact that Volkswagen who is auto mobile leader in the world is a Germancompany. Besides this, the market condition and business environment of country is suitable fordong business. The income level and lifestyle of people have arisen. This is the reason whypeople needs have increased (Eling and Schaper, 2017). They are demanding high qualityproducts to satisfy their needs. Germany follows same policies and regulations that has beendeveloped by EU. This makes it easy for companies to trade with other European nations. Also,increase in innovation in Germany have companies. Trade policy, tariffs, import export policy,etc. all are been effective thus providing stable business environment. Besides this, the exports ofproduct from Germany has increased to a great extent. It is expected to rise in the future. The service sector of Germany accounts for 68.7% of GDP. Along with this, more than3.6 million small and medium enterprise companies exist there. They are providing employmentto almost 68% of workers in Germany (Virglerová, Dobes and Vojtovic 2016). This is the mainadvantage for Boots to expand business. Trade policy- Germany follows the trade policy that is developed by European union. This hasallowed company to trade freely with EU countries. Also, currency rate is common so it becomeseasy to trade in common current rate. This provides stability in maintaining capital and cash.Political outline- The current political state of Germany is their President is Frank WalterSteinnmeier and chancellor is Angela Merkel. It is having 16 states or provinces. This shows thatnation is having a suitable political condition that favour Boots for doing business (Bartz andWinkler, 2016).Along with this, many new industries have been set up recently in Germany. It hasboosted its GDP and provided employment to people. The service sector is at boom. Also,various new measures are taken by government to support small and medium enterprises. Thishas improved their growth in many areas. Apart from this, current business environment ofnation is very good for doing business. It consists of diversified culture people who are havingdifferent needs and demands (Ketata, Sofka, and Grimpe, 2015). They health sector of nation isimproving as measures are been taken by government. 2
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