Critical Evaluation of Internationalizing Business Operations in Germany

This study critically evaluates the aspects of Germany's business environment that must be considered when deciding to internationalize business operations. It examines the manufacturing business in Germany and highlights current trends, risks, and potential changes.

Critically evaluate

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Global business helps in operating business in various foreign countries across the globe.
It helps in selling products worldwide. Airdri limited company is a small medium enterprise in
UK where they tend to focus on carrying out manufacturing operations associated with hand
dryers. This study will highlight on varying out the business operations on the Germany in order
to gain higher market share. This study will critically evaluate what particular aspects of
Germany’s business environment must be taken into account when assessing the decision to
internationalise business or not. Furthermore, this study effectively outlines the effective features
associated with the manufacturing business. This study helps in critically examining the
Germany business environment in order to effectively carry out business operations. This helps
in critically examining the concept associated with internationalization of the business. This
study also helps in highlighting the current trends, risk and potential changes associated with
while internationalizing the operations of the business.
MAIN BODY
Schmid, (2018) sought to determine the fact that, manufacturing business is referred to as an
effective business where they tend to focus on effectively using various parts, components and
raw material in order to make the desired finished goods. These manufactured finished goods
help in selling goods directly to the consumers in order to make a different set of products. Small
manufacturing company tends to deal with retail operations. Small business is referred to as the
independent organization where the owner of the company requires less workforce, less capital
and low cost machinery in order to carry out business operations. In the small manufacturing
company 500 employees or less in the organization is considered to be an effective example of
small business. Airdri limited company is a small medium enterprise in UK who considers to
carry out its business operations in the Germany which in turn helps in attaining economies of
scale and carrying out various business operations. Airdri limited company tends to focus on
effectively moving the production of the business to Germany in order to expand its business
operations and attaining higher market share and profitability. The manufacturing, production
and warehousing department of the company has been moved to the Germany. Audretsch,
Lehmann and Schenkenhofer, (2018) argued that, Manufacturing and production department is
mainly associated and linked with the manufacturing of particular goods and services of the
Airdri limited company. Warehousing department is mainly linked with the storage of the goods
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which have to be offered to the end customers. Warehousing department mainly covers large
range of important functions which mainly includes receiving, fulfilment and distribution
process. Manufacturing and production department process mainly comprises of casting,
moulding, joining, machining, shearing and forming in order to deliver products to the end
customers.
Mayer, and et.al., (2017) evaluated that, critically evaluate is mainly linked with
effectively providing verdict or opinion set of some specific research findings. It tends to focus
on providing opinion to the particular extend based on the particular research finding or
statement which is true. This is very useful in critically evaluating the various components
associated with the manufacturing industry and also helps in determining the factors which is
mainly linked with the economy and business environment conditions of Germany. Business
culture in Germany is mainly linked with various characteristics which mainly comprises of
business etiquette, work life balance, business communication, social media guide, etc. The
German economy is considered to be one of the fifth largest in the world which mainly comprise
or accounts for 1/5th of the European Union’s GDP. Germany is also considered to be one of the
largest European trading partners in United States. It is also considered to be as the sixth largest
market for exports in U.S. One of the most effective marketing strategy is mainly linked with the
production of highly innovative products and services. Germany is referred to as the primary
economy of the UK. It has been performing dynamically well because of country’s vulnerability
associated with the domestic structural problems, outside shocks, domestic structural problems,
etc. The country tends to focus on complying with the new technologies and favouring
investment. This in turn is considered to be very useful in diversifying the economic structure of
the economy. Landau, and et.al., (2016) argued that, German country tends to focus on posing
several challenges associated with posing relative formal trade or investment barriers to the U.S.
German is considered to be dominated by the manufacturing industry. It has been evaluated that,
the German economy is considered to be highly developed in the social economy. It is
considered to be one of the largest national economy in Europe. It tends to have one of the fourth
largest GDP in the world. The major trading partner countries mainly comprise of France, China,
United States, Netherlands, United Kingdom, etc. Employment in Germany tends to rise which
in turn leads to higher operational growth and sustainability for the business. Compliance with
the rules and regulations of the Germany. This in turn helps in effectively carrying out various
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operations of the business in a smooth and legal manner. Middermann, and Rashid, (2019) said
that, Germany is considered to have top economic power in Europe and tends to be at the fourth
level globally. In the year 2018, the GDP of the economy tends to increase by 1.9%. The growth
rate associated for the year 2019 is expected to increase by 1.9% and for the year 2020, it is
expected to increase by 1.6%. Unemployment of the economy is expected to fall by 3.4% in the
year 2019 and is further expected to reduce by 3.3% in the year 2020. Germany is considered to
be one of the wealthiest country in the world.
Dameron and Durand, (2017) sought to establish the fact that, Germany business culture
is mainly linked by the perfectionism, organization and planning. Business relations are
considered to be very formal where they tend to largely reflect the values associated with the
punctuality, order and privacy. The decision making process is mainly linked with the top
authorities of the company. Germany tends to hold a pre-eminent position which tends to drive
various forces which is mainly associated with the power and leadership. Germany is referred to
as one of the most highly attractive market where they tend to provide highly attractive market
for the particular products and services. Germany is considered to have largely sophisticated
customer base where the individuals tend to have high degree of disposable income. It also tends
to provide large manufacturing base for the Airdri limited company. Mayer, and et.al., (2017)
evaluated that, The key business values and etiquettes associated with the German business is
mainly linked with the professionalism, formality, fairness, loyalty, bluntness etc. This in turn is
considered to be very useful in effectively carrying out the business operations which in turn
leads to higher sustainable growth and efficiency. Manufacturing system mainly comprise of
material handling system, production machine, computer system, coordination, human workers,
etc.
Castaño, Méndez, and Galindo, (2016) sought to establish the fact that, Germany
business environment components is mainly linked with economic factors, technological factors,
social factors, demographic environmental factors, etc. The economy of the company is mainly
linked with social market economy. Germany is considered to be the world leader in innovation,
engineering and technology. This in turn will be useful for the Airdri limited company to
effectively carry out its business operations which in turn results in higher operational growth
and efficiency. Germany is considered to be one of the most effective measure where they tend
to be environmentally friendly, material efficient, waste management and recycling, high
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sustainable water management and energy efficiency. This in turn largely influence the
operations of the business where they in turn affects the business operations. Resource efficiency
and environmental technology tends to act as a catalyst to competitiveness and modernization of
the economy. This is considered to be one of the great measure for Airdri limited company to
effectively carry out the business operations which in turn helps in effectively operating small
manufacturing company in the German market. Germany is considered to be strong in research
and development, exporting, innovation, etc. This in turn helps in effectively carrying out its
business operations which in turn leads to higher sustainable growth. Bose, (2016) argues that,
there are several challenges which is mainly linked with doing business in Germany mainly
associated with making funds available or granting of credit, complying with laws and policies
and protecting investors. Trading across borders, payment of taxes and protecting investors are
considered to be one of the major business challenge which is mainly associated with carrying
out business operations in UK. Pinho and Pinheiro, (2015) sought to determine the fact that,
Complying with EU German standards are considered to be one of the serious measure who tend
to focus on effectively carrying out business operations. Germany tends to focus on effectively
carrying out the business operations where they intend to focus on maintaining trade relations
which is mainly linked with effectively carrying out several business operations. Germany is
considered to be one of the democratic republic which helps Airdri limited company to
effectively carry out the business operations. Green and safe working environment is considered
to be one of the crucial measure which in turn helps in carrying out the production of the
business with utmost accuracy. Germany tends to effectively maintain a surplus with various
members of the Europe. The key principal export marketers are United States, France,
Netherlands, United Kingdom, Italy, etc. The government of the Germany tends to effectively
carrying out its business operations where they intend to focus on effectively carrying out the
business operations.
Dabić and Lamotte, (2017) evaluated that, business tends to Internationalizing their
business due to various reactive reasons which is mainly linked with the increasing sales. It is
referred to as an innovative and diversifying tool where they intend to focus on effectively
carrying out the operations of the business. This is an effective measure which helps in
increasing the customer base and also helps in getting close to the clients. Germany tends to have
a strong economy which in turn helps Airdri limited company to possibly increase the sales,
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diversifying the business operations, attainment of economies of scale, reduction in the labour
cost, etc. are considered to be one of the most effective measure which in turn are considered to
be one of the effective factors in order to internationalize the business operations.
Internationalization of the Airdri limited company helps the small manufacturing company in
effectively taking advantage of the other market development and growth. It helps in moving
value chain to one of the most competitive region where they have lower manufacturing and
production cost. Attainment of economies of scale is considered to be one of the most crucial
measure where they mainly focus on attaining higher market share and profitability for the
business. It also helps in overcoming the differences and exploiting the differences which in turn
helps in optimizing the use of resources. Kahiya, (2019) said that, internationalizing of the
company is mainly referred to as an effective mode to introduce the business to several business
markets. This can be done by effectively developing the innovative products and services which
in turn helps on satisfying the local requirements of the specific market. This leads to increasing
involvement which is mainly associated with the internationalization of the enterprise in the
foreign markets. The expansion of the business through internationalization helps in expanding
the business capabilities beyond the national market. This is referred to as a global strategy
where the firm tends to rely on low cost structure and also tends to focus on determining the
selected foreign market where the company can attain higher operational goals. The
internationalization of SME is considered to be an effective process because it is classified into
several stages. Stages of internationalization is mainly characterized into re-increasing,
decreasing and increasing commitment to the foreign markets.
Sasi Sperling and Arenius, (2015) sought to determine the fact that, company tends to
internationalize their business due to various reactive reasons. This helps company to have
access to the higher customer base. It also tends to provide an effective ability to increase the
employment capability which in turn helps in improving the economic condition of the country
where the business tends to expand its operations. Internationalization helps in exposing to
foreign business market where they tend to effectively carry out several business operations with
utmost accuracy and efficiency. Internationalization is considered to be very useful because it
helps in learning new culture and improving the reputation of the company. The main reason
behind internationalization of the company is mainly associated with effectively gaining access
to the knowledge and resources of the foreign market. The company can effectively
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internationalize their business by effectively choosing an expansion country, carry out strategic
market analysis, planning market entry and market position, considering target market,
determining core competencies, fine tune the products and services, analysing the value chain
option and analysing the supply chain. Internationalization of the business is mainly linked with
the easier cash flow management and also have greater access to the export financing and export
risk management. Internationalization helps in providing higher standard of living to the
individuals and in turn also helps in rapid industrial growth. It also leads to better utilization of
the resources and also results in international cooperation. Airdri limited company tends to carry
out its business operations in the United Kingdom. It has not been internationalized earlier and it
intends to carry its business operations in the Germany. Moving production to the
Germany helps in attaining various benefits to the study. This in turn helps in effectively
determining the various operations which in turn leads to higher sustainable growth and
efficiency. Pinho and Pinheiro, (2015) sought to determine the fact that, Moving of production
to the Germany helps in attainment of economies of scale by effectively utilizing the resources of
the economy. Resources are effectively used because it helps in transforming the inputs into the
outputs which are to be effectively delivered to the end customers. Internationalization is
considered to be as an effective term which is used to describe the products and services in a way
which in turn helps in carrying out the business operations in a sustainable and efficient manner.
For example: Apple is considered to be one of the international company where they tend to
focus on effectively selling the products and services to the various international market globally.
Apple company tends to have geographical coverage in 25 countries worldwide with
approximately 506 stores. For example: Uniliver company tends to expand their business
operations globally by effectively determining and critically analysing the global market. It is
considered to be one of the largest manufacturing company who tends to carry out operations all
across the globe. It tends to follow a global strategy. I also tend to comply with the competitive
strategy in all the foreign markets where they focus on effectively carrying out the business
operations. For example: Rio Tinto is considered to be one of the leading international company
who tends to focus on extracting the efficiency improvements. This helps in improving the entire
value chain which in turn results in incremental free cash flow for the business. It tends to adapt
to improved technology where they are carrying out several business operations in a systematic
and efficient manner. For example: GlaxoSmithKline is considered to be one of the growing
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global pharmaceutical company where they currently intend to carry out the business operations
in around 150 countries. It tends to have 89 manufacturing research centres and locations across
Belgium, U.S., UK, and across various countries. GlaxoSmithKline internationalization process
in turn is mainly associated with the product life cycle theory. This in turn helps in explaining the
possible and current foreign direct investment flows. This is an effective strategy which in turn
helps in reflecting the customer behaviour, market environment and technological advancement.
This helps in evaluating the past strategies and also helps in effectively taking strategic decision
which is mainly linked with carrying out business operations.
Rexhepi and et.al., (2017) said that, company tends to Internationalize the business
because it helps in effectively occupying the foreign market and attain higher operational goals
and productivity. Airdri limited company must focus on effectively evaluating the several
factors associated with the internal and external business environment of the Germany. This in
turn leads to higher operational growth and efficiency. Airdri limited company must focus on
critically examining and evaluating the various operations of the business. It will help in
effectively adapting to the innovative and advanced technology and also have greater access to
the operations of the business. The company should focus on critically evaluating the various
Legal laws, policies, taxation regulations in order to effectively carry out the business operations.
Airdri limited company tends to focus on creating several business operations where they tend to
focus on effectively carrying out manufacturing business where they will focus on examining the
business environment of the Germany.
CONCLUSION
From the above conducted study it has been summarized and concluded that, manufacturing
business tends to effectively utilize various parts, components and raw material in order to make
the desired finished goods. It has been examined that, Manufacturing and production department
process mainly comprises of casting, moulding, joining, machining, shearing and forming in
order to deliver products to the end customers. The German economy is considered to be one of
the fifth largest in the world which mainly comprise or accounts for 1/5th of the European
Union’s GDP. The major trading partner countries mainly comprise of France, China, United
States, Netherlands, United Kingdom, etc. It has been summarized that, Germany business
environment components is mainly linked with economic factors, technological factors, social
factors, demographic environmental factors, etc. Internationalizing of the company is mainly
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referred to as an effective mode to introduce the business to several business markets.
Internationalization helps in exposing to foreign business market.
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REFERENCES
Books and Journals
Audretsch, D.B., Lehmann, E.E. and Schenkenhofer, J., 2018. Internationalization strategies of
hidden champions: lessons from Germany. Multinational Business Review.26(1). pp.2-24.
Bose, T.K., 2016. Critical success factors of SME internationalization. Journal of Small Business
Strategy. 26(2). pp.87-109.
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2016. Innovation, internationalization and
business-growth expectations among entrepreneurs in the services sector. Journal of
Business Research.69(5). pp.1690-1695.
Dabić, M. and Lamotte, O., 2017. Internationalization of Central and Eastern European firms:
trends and strategies. European Business Review.29(2).
Dameron, S. and Durand, T. eds., 2017. The Future of Management Education: Volume 1:
Challenges Facing Business Schools Around the World. Springer.
Kahiya, E.T., 2019. Context in international business: Entrepreneurial internationalization from a
distant small open economy. International Business Review, p.101621.
Landau, C and et.al., 2016. Institutional leverage capability: Creating and using institutional
advantages for internationalization. Global Strategy Journal.6(1).pp.50-68.
Mayer, M and et.al., 2017. Diversification and internationalization in the European single
market: the British exception. Business history review. 91(2). pp.279-299.
Middermann, L.H. and Rashid, L., 2019. Cross-Country Differences in Entrepreneurial
Internationalization Tendencies: Evidence from Germany and Pakistan. Administrative
Sciences.9(3).p.54.
Pinho, J.C. and Pinheiro, M.L., 2015. Social network analysis and the internationalization of
SMEs: Towards a different methodological approach. European Business Review. 27(6).
pp.554-572.
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Rexhepi, G and et.al., 2017. Models and strategies of family businesses internationalization: A
conceptual framework and future research directions. Review of International Business and
Strategy. 27(2). pp.248-260.
Sasi, V., Sperling, G. and Arenius, P., 2015. Rapid internationalization of born global firms-do
local networks have an IMPACT. In ICSB World Conference Proceedings (p. 1).
International Council for Small Business (ICSB).
Schmid, S., 2018. Internationalization of Business. Springer International Publishing.
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