Business Issues In GCC And EU

RUNNING HEAD: BUSINESS ISSUES IN GCC AND EU
BUSINESS ISSUES IN GCC AND EU
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS ISSUES IN GCC AND EU1
Introduction:
The aim of this report is to differentiate between the ease of doing business in the
Gulf Corporation Council countries and the European Union countries. Qatar is a member of
GCC and Germany is a member of the EU. A GCC national is interested to expand the
business but that person has to choose the host country between Qatar and another country in
the GCC which can be mentioned to be the Kuwait. Moreover, the comparison will also be
made between Germany and another member of the EU which can be mentioned to be
Austria. In this report, a SWOT analysis will be conducted to identify the business situation
of these four countries. Differentiation between these four countries will be done. Through
this analysis, the GCC national will get a clear idea about the legislative and regulatory
framework of the two countries and additionally the EU individual will also gain an idea
about the possibility of doing business. Potential obstacles for doing business in these four
countries and approaches to manage those identified obstacles will be discussed in this report.
Discussion:
Through SWOT analysis, the present business condition of the GCC countries and the
EU countries will be identified. It will help the nationals to choose the host country for their
expansion.
SWOT analysis of Germany:
The Federal Republic of Germany, a member of the European Union, is located in
Central Europe. The capital of this country is Berlin and the official language of Germany is
German. To understand the strengths, opportunities, weaknesses, and threats of this country,
SWOT analysis can be beneficial. The Austria is the republic of Australia which is
landlocked in the East Alpine country with a considerate southern part in the Central Europe.
In association with this, it has nine federations one of which is Vienna which is the capital of
the country and the largest city.
Germany Austria
Strengths  Strong economy.
 Political stability.
 Appropriate infrastructure.
 Adequate workforce.
 Positive reputation
 Favourable
geopolitical location
 Harmonious people
 Excellent
infrastructure
 Political stability.
 Good relationship
with Germany
Weaknesses  Expensive labour cost.
 High tax rates.
 Slow negotiations.
 Lack of resources
 Dependency on
export
 Dependent largely on
Germany
Opportunities  A leading nation of the EU.
 Available renewable energy.
 Availability of appropriate waste
management infrastructure.
 Location of this country.
 Tax incentives.
 Improvised education
system
 Use of the local
technologies
 Reduction of national
deficit

BUSINESS ISSUES IN GCC AND EU2
 Introduction to the European
market.
 Renewal of political
system
Threats  Intense competition.
 Mature market.
 Crisis of the European Union.
 EU currency crisis.
 National debts
 Lack of qualification
After conducting the SWOT analysis, it can be said that doing business in Germany
can be a beneficial option for the EU national. In case they expand to Austria, then nothing
much will change for them. It can be said that Germany is an all-round powerhouse (Gürel &
Tat, 2017). Any national can get the benefits of political stability, a thriving economy, skilled
labours, appropriate infrastructure, and well reputation of Germany. Though the labour cost
of this country is very high, yet it can be said the national can get the assistance of highly
skilled labour (Gürel & Tat, 2017). When they plan to extend the operations to Austria, the
business environment there is quite lucrative and in association with this, these individuals
will benefit greatly and can consider the expansion easily.
SWOT analysis of Qatar:
The State of Qatar, a member of Gulf Corporation Council, is an independent emirate.
The capital of this country is Doha, and the official language is Arabic. The strengths,
weaknesses, opportunities, and threats of Qatar must be identified. It will help the GCC
national to decide whether expanding business in Qatar can be a good decision or not. The
Kuwait can be mentioned to be a country which is a country in Western Asia and a member
of the GCC. In consideration with this, it shares the border with Iraq and the Saudi Arabia
and has a population of 4.5 million people.