Global Business in Context

Global Business in Context

Table of Contents
INTRODUCTION...........................................................................................................................1
Company outline..........................................................................................................................1
Comparison of UK with EU country...........................................................................................2
Appropriate mode of entry in the new market.............................................................................6
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global business refers companies that operate facilities in many countries around the world
(Peng, 2016). This present study is based on Alpha manufacturing that offers qualitative and cost
effective metal fabrication services. It is going to analyse external environmental factors of the
country in which Alpha manufacturing wants to expand its business. The main reasons behind
comparing external environmental factors of both countries where it operates business and where
it wants to expand business it can take better decision and can know as selected country can be
beneficial for it or not. Lastly, it will discuss some modes of market entry through which it can
enter into new market in an effective manner.
Company outline
In the context of ALPHA manufacturing it can be said that it is a small award winning UK
based custom metal fabrication company. It is the member of Bri-stor group and it is mainly
famous for providing or offering qualitative fabrication in cost effective manner. This company
was founded in the year of 1989. One of the main key of its success is ability of using latent
technology in an effective manner. It is also found that it helps country in improving economic
condition by providing employment opportunity and it has around 100 employees (Alpha
Manufacturing and design LLC, 2016). It produces and provide qualitative sheet metals
fabrication to customers and other main reason that has made it successful is experience of
producing qualitative sheet mental. It wants to compete with other players in the market and for
this it wanted to expand its business in mainland Philippines and Germany. There are several
reasons of expanding business in Germany. It has several departments like marketing, research
and development, production and others that help this company in accomplishing its goals (Li
and et.al., 2018). For more knowing about effectiveness of Germany and country where it wants
to expand it requires detailed analysis of some political factors. Innovation and creativity is main
pillar of its success that can help it out in successful expansion in Germany.
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Comparison of UK with EU country
In regards to German manufacturing where Alpha manufacturing wants to expand its
business it is found that this country has around 2.6% of world production in metal or steel.
Annual production of Germany in steel sector is around 44 million tonnes in the year of 2014. In
regards to steel manufacturing, this country is accounted as the world’s 7th largest steel producer.
It is the reason of Alpha manufacturing of selecting this EU country and by expanding business
in this country it can compete with other international companies and can provide more
employment opportunity. For more knowing effectiveness it is required comparing external
environmental factors of the UK with Germany. Comparison of such factors is:
Political: In regards to Germany it is found that it is dominated by Christian and social
democratic union since 1949. This dominant behaviour affected many of the businesses and its
performance to the great extent. But now some changes have been made in this factor that is
beneficial especially for manufacturing businesses. Current political stability and lack of biased
behaviour, integrity, positivity and honest behaviours of politicians can be profitable for
manufacturing companies. It is also found that companies are legally bound to enforce bribe,
corruption and other acts that can protect them against lawsuit (Eigner and et.al., 2019). It is also
found that Germany is maintaining good relation with other countries like France. These taxation
policy and all acts can help Alpha manufacturing in expanding business effectively. This
alliance is making Germany able to become the most powerful country in the European Union
and Alpha manufacturing can take advantages of it as it can import raw materials and can also
attract global customers in an effective manner.
In regards to UK it is found that it is one of the most powerful courtiers in the world. It is
a modern parliamentary democracy. It is also found that companies think many of the times
before expanding business in this country because of this political factor. All other eternal
environmental factors like economic, technological and social factors also can be influenced by
this political factor. There are some important factors that are being considered by companies
such as: trading policy, funding, grants and initiatives. All these factors are important factors
since Britain is an economic recession. Manufacturing companies require grants and funds from
the government because of economic recession. Due to some economic problems and increasing
rate of unemployment rate, government does not distribute grants and funds among all sectors of
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