Factors to Consider for Business Expansion

This presentation discusses the various factors that businesses should consider when expanding internationally. It covers political, economic, social, technological, legal, and environmental factors and provides ratings for different countries based on these factors. The presentation concludes by recommending Germany and Sweden as potential countries for business expansion.

Business

Table of Content
 Stage One (Identify Screening Criteria)
 Stage Two (Criteria Table)
 Stage Three
 References

Stage One (Identify Screening Criteria)
 Political: Political Factor plays a important role while expanding a business. Government has power to impact
your business say adversely or positively. Companies have to deal with both national as well as international
political issues while expanding internationally political factors are external to business but the organisation
should find how these factor can impact their business.
 Economical: These factors impact companies long-term prospect and according to the economic position of a
country the price can be decided, demand and supply of the product will also depend on economic condition of
the place. Green Chef will check the availability of material at the place where the expansion is to be done.
 Social: Social and cultural factor consist of the forces which affects an organisation externally through people
interferences, health regarding issues, age and gender, boon and boom period, unemployment statistics for an
organisation.

Stage One (Identify Screening Criteria)
 Technological: It is the most important factor for an organisation to be influenced on, it
considers question regarding what and how to make an efficient use of available
technologies into international market.
 Legal: Legal environment is a code if conduct of a business, a legal environment can
directly affect the business and mainly legal environment government direct influence the
external and internal part of business.

Stage One (Identify Screening Criteria)
 Environmental: Environmental factor is one of the crucial factor when the company wants
to expand their business, it can effect many different important aspect of the business. It
includes climate, weather, pollution, availability of renewable goods, environment related
laws, workplace efficiency and existence of biological species.

Stage Two (Criteria Table)
Factors Austria
Rating (1 at the
highest and 6 at
lowest)
Assessment
Political 1 Austria is the democratic country which is Republic and also have a stable
political condition since 1995 and currently it is ranked at sixth among the 58
industrial countries in terms of having competitive business market and
industries.
Economical 3 Austria has the well-developed market economy and its foreign demand is
export and record employment growth. The International Financial crisis and
global economic downturn in 2008 move towards the recession and at that
time the GDP is contracted to 3.8 % in 2009.
Social 2 It represents that the environmental quality living standard culture security
and so on is effective of Austria in terms of having quality of life and for this
the people of Austria having great meal that does not impact their health

Stage Two (Criteria Table)
Factors Belgium
Rating Assessment
Political 6 It is the constitutional and parliamentary democracy and the parliament is
composed by the Chamber of representatives. Moreover, there are 150 presented
that are in the chamber and elected under the proportional voting system.
Economical 4 Belgium is the highly industrialized country but also has lack of natural resources
and for this they import raw material in huge quantity and also import for the
effective raw materials in terms of exporting at the last level.
Social 5 In this it is important for the individuals to speak French who belong from the
government agencies and sit at the top management. Moreover, the Flemish
movement also involve counter for this situation and also refuse for the effective
progress for the official language that can put negative impact on the expansion of
company.

Stage Two (Criteria Table)
Factors Denmark
Rating Assessment
Political 3 Denmark has the political landscape and the long-standing members which is
beneficial from various trade and prominently boost the economy of country.
Economical 2 Denmark also has highest GDP of any country in terms of per capita income as it
allows effective standard of living.
Social 1 Denmark is quite effective for the social order and does not face any sort of
struggle on the grounds of race and religion clashes that helps in boosting the
economic productivity.

Stage Two (Criteria Table)
Factors Germany
Rating Assessment
Political 3 Germany is the federal democratic republic country and imminent changes occur
with the looming shadow of Brexit that put major impact on the political
landscape of country.
Economical 2 Germany is the fourth largest economy in world in terms of nominal GDP
forecast which is around 4.2 trillion and boost the employment rate of country by
offering jobs to individuals.
Social 1 because of effective economic standards and diverse lifestyle depict the majority
of the population is identified from the Christian and Islam. Moreover, Germany
is also known for the hard work effective ethics and punctuality which is
beneficial for company.

Stage Two (Criteria Table)
Factors Luxembourg
Rating Assessment
Political 2 Landlocked country, which discovered by Sweden and France and their political
powers helps this country to run all the operations in successful manner.
Economical 1 Expected Growth rate of this country is 5.66%, which may result into positive
outcomes for expansion related decisions made by organisation.
Social 3 Individuals like to bring changes in their living standards considering different
elements like fitness and so on.

Stage Two (Criteria Table)
Factors The Netherlands
Rating Assessment
Political 2 It represents the membership with the European Union which is beneficial in
terms of favourable regulations considering the travel trade and so on for the
effectiveness of company.
Economical 3 Netherlands has the highest income in the world with the unskilled workforce and
for this respective company need to provide prominent salary wages considering
the highest wage factors that put positive impact on the mindset of employees.
Social 1 The citizens of Netherlands are liberal that occur various issues with in migrants
in terms of understanding their nature and community and for this company face
problem in terms of opting diversity.

Stage Two (Criteria Table)
Factors Sweden
Rating Assessment
Political 1 Sweden is the constitutional monarchy and unitary state which is divided into 21
countries and the governor is appointed for the period of 6 years which is
beneficial for the expansion of company.
Economical 2 The economic condition of Sweden is quite effective and moderate and they also
have prominent Natural sources including hydroelectric power, copper, Forest
Timber uranium and many more.
Social 3 Sweden has the prominently developed state with the effective level of social
spending of GDP that leads to offer smooth and effective functioning of company
within the country.

Stage Two (Criteria Table)
Factors Switzerland
Rating Assessment
Political 3 Switzerland is a federal republic consisting of 26 cantons (federated states) with
the states being able to enjoy fair amount of decentralisation.
Economical 2 0.58 % it is said to be the overall contribution that has been given by Switzerland
in international economy.
Social 1 Switzerland is one of the wealthiest countries in the world where the life
expectancy for men is 81 years, while 85 years for women.

Stage Three
Considering the above-mentioned information, it can easily be said that the two particular potential countries that are suitable for
Hello Fresh to expand its business of Green Chef are Germany itself and Sweden. The reason behind Germany has been taken
into consideration for business expansion is because it is considered to be the fourth largest economy in all over the world which
may definitely give positive results towards productivity and profit margins of Hello Fresh. Thus, it will offer a lot of
opportunities to the company to grow its business operations.
On the other hand, 4.5 % growth rate it was specifically observed in Sweden and this is said to be a crucial element for any
organisation which is looking forward to expand its business to grow itself in an on growing are continuously growing market.
These two Nations will be helping hello fresh to become leader within the market in which it is performing all the operations. As
a result, the company will be able to function in an effective manner and reach out to a greater number of customers. Therefore,
the company is recommended to expand its business in Sweden as well as Germany in order to enhance its overall profitability.

References
 Teece, D.J., 2018. Business models and dynamic capabilities. Long range planning, 51(1), pp.40-49.
 Bocken, N., Boons, F. and Baldassarre, B., 2019. Sustainable business model experimentation by understanding ecologies of business
models. Journal of Cleaner Production, 208, pp.1498-1512.
 Massa, L., Tucci, C.L. and Afuah, A., 2017. A critical assessment of business model research. Academy of Management Annals, 11(1),
pp.73-104.
 Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and organization design. Long Range Planning, 51(1), pp.32-39.
 Kimmel, P.D., Weygandt, J.J. and Kieso, D.E., 2018. Financial accounting: Tools for business decision making. John Wiley & Sons.
 Li, W.C. and Hall, B.H., 2020. Depreciation of business R&D capital. Review of Income and Wealth, 66(1), pp.161-180.
 Ritter, M. and Schanz, H., 2019. The sharing economy: A comprehensive business model framework. Journal of cleaner production, 213,
pp.320-331.
 Laothamatas, A., 2019. Business associations and the new political economy of Thailand: From bureaucratic polity to liberal
corporatism. Routledge.

Thank You