Global Business in Germany: Factors to Consider

Global
Business
In Context

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Overview of company..............................................................................................................................3
Business environment.............................................................................................................................3
Aspect 1: Political aspect in Germany......................................................................................................3
Aspect 2: Economic aspect in Germany...................................................................................................4
Aspect 3: Legal aspect in Germany..........................................................................................................5
Aspect 4: Technological aspects in Germany...........................................................................................6
Aspect 5: Environmental aspects in Germany.........................................................................................6
Recommendations.......................................................................................................................................7
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Global business refers to international trade in which an organization which is based in a
particular country can trade with other companies in different parts of the world (Bhagra and
Sharma, 2018). Globalization has made it possible to conduct global business. This assessment is
based on Morgan Motors which is a British company dealing in manufacturing of cars. Morgan
Motors Company is considering moving its production to Germany. Therefore before it does so
it has to consider various aspects. These aspects relate to the business environment of Germany.
Thus a detailed discussion will be made on these aspects in this report.
MAIN BODY
Overview of company
Morgan Motor Company is a British motor car manufacturer which has its headquarters
in Malvern, United Kingdom. It produces cars suiting to the tastes and preferences of a wide
variety of customers.
Business environment
Business environment is the sum total of all the external as well as internal factors which
are facing a business enterprise. Morgan Motors’s decision to move on to Germany will be
impacted by the influence of business environment factors in Germany.
Aspect 1: Political aspect in Germany
Political climate can influence the decision-making of any enterprise (Brannen, Piekkari
and Tietze, 2017). Germany is a federal republic consisting of 16 states. The power here is
distributed between the federal and state government. The head of the government here is the
Chancellor who is chosen by the Federal Assembly for four years. Thus, Germany is a
democratic country.
For Morgan Motors, it becomes highly necessary to consider the political aspects of
business environment in Germany before expanding its operations there. There is also political
risk present in Germany. However it is quite low. Germany has faced a blow after the
implementation of Brexit as its trade relations with the U.K. have been impacted due to its
implementation. However, because of stable currency value and a massive base of customers
present in the country who have a demand for the cars produced by the company the political
conditions in the country can be termed as relatively stable for doing business. Therefore,
expanding business in the country has proved profitable for many of the businesses. Thus, after
considering these factors Morgan Motors can determine whether moving the production in
Germany would be feasible for it or not.
The detailed political framework for Germany has been provides as follows-