Global Business in Context

Global Business in
Context

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................2
ASPECT 1........................................................................................................................................2
ASPECT 2........................................................................................................................................3
ASPECT 3........................................................................................................................................5
ASPECT 4........................................................................................................................................6
Recommendation....................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Globalization is the process in which company expand their business in other country and
they started operating their business on the international Level. International market have more
potential as compare to the domestic market and organizations can earn more profit and increase
their growth. They have to use some market strategies which can be helpful for the company to
expand their business on the global level. There are lot”s of opportunity in the global market but
they have to do marketing in a other countries then only they can be successful on this market.
They need more capital and proper market entry strategies and to enter in a global market This
report will cover the strategies to enter in German market for 'Morgan Motor company' and this
report will analyze the market of the Germany and it will cover the overview of this company ,
with this all report will cover pestle analysis and Ansoff matrix of the German Market . This all
will cover by this report.
ASPECT 1
Political Factors
Germany is a democratic country and Germany Market have interest tax stricture If this
company wants to enter in a German market then they have to pay more tax to the German
government. Different market means different in their tax structure. But German government
takes 10 percent of export duty for vehicles which is due to the increasing polarity of the motor
car in the Germany. this can be disadvantage for this company. Because of High tax and more
export duties can have effect on the company's profitability. With the change of government, tax
structure of the Germany will also change (Steger., 2017). They can face high competition in this
market because Germany is an one of the leading car manufacturer industry in the work this will
have effect on the probability on the profitability of the Morgan Motor company. Relation
between UK and Germany are not good and because of this they can charge more, and they can
take more tax from this company. Germany is an legal landscape of the country . From the
German low they do not compare with the Foreign national and German national concerning
with the investment or companies establishment. They promote all type of business equally, and
they support every busyness . It will effect the company, and they can easily establish their
business in the German country because the approach of the German government is very open
and regardless of weather or not the business involve German national or any other foreign
country. They have to follow the rules which other company's are following they do not make
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different rules for foreign business. They all are equal for the German government they all have
to follow rule equally. Germany is democratic country with the federal government, and they are
having three different levels of the government and one of them is state level government, local
government and Federal level. The government at the local level decide the business politics of
the location which also included taxation under it. And they are also a prominent member of the
international companies like UN and IMF. If company will establish their business on the local
level of the German market then they have to may tax to the local government. Local system of
this market prescribed strict labor rules and regulation and it will be important for the Morgan
moter to follow the legal rules of the government, and they have to pay minimum wages
according to the labor low of the German government. The German low will also make it
compulsory for the Morgan Motor company to publish their financial report ever if they are not
publicly listed. This all political factors will effect the Morgan Motors.
Illustration 1: (PESTEL analysis of Germany, 2019)
ASPECT 2
Economical Factors
Germany is an 4 largest economy in the world and most of the employees in the Germany
(why is needed the repetition of Germany here for?) is employees. Employees in the Germany
take high salaries. Germany is the country where employees get high salaries as compare to the
other countries in the world. Because of high salaries of the labor in this company can surfer
from loss and they have to give high amount of the salaries to their employees in the Germany.
Labor rate is very high and they will bring labor from the other country then they have to pay for
their food, leaving and many more. This all will cost more and this will affect on their
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