Gripple Company Growing into Germany

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Global Business in Context
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Introduction
In the current competitive business environment, all companies both small and large size
desire to venture into the international market to attract more customers; however some always
result into failure or collapse of the business (Bhandarker, 2014). The failure might result from
the unseen challenges that might be as a result of internal or external factors such as political
instability, consumer behavior, competition business culture, risk management, infrastructure,
technology, a difference of cultural compositions as well as inadequate market research. Market
entry strategy refers to the planned distribution and delivery method of products into the new
targeted market by an organization and includes joint venture, franchising among many others.
Business culture refers to the norms and values that determine the behaviour of the organization
towards the achievement of a goal. Economic growth and status determine the purchasing power
of consumers that determine the daily sales of business organizations. Strong GDP provides good
business environment than weak GDP. The current paper thus focuses on exploring various
factors need to be considered by Gripple Company needs to enhance its expansion into the
Germany market.
The nine critical aspects that need considerations are Legal and political aspects, Market
entry strategy, Business environment and culture, Socio-cultural factors, Competition, Risk
management, Infrastructure and Technology, and Economic stability. The most critical factors
under consideration are:
Overview of ‘6 non-critical
a) Germany Risk management

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Country risk management refers to the ability of country to control factors that adversely
affects the paying capability of an investor and is categorized into a of scale of 1-5. Those with
scale one is always perceived to be more stable environment than those with a score of 5. About
country risk management category, Germany has a score of 1 due to the low level of risk in
various aspects such as political, financial and economic.
b) Socio-cultural factors
The socio-cultural factors affect the business environment that dictates the operations of
every organisation. Cultural factors entail beliefs, ethics, and races among many others. This
culture according to Hofstede cultural aspects dictate decision making as well as buying
behaviour of the society.
c) Infrastructure
Organizations depend on different infrastructure such as roads to conduct their activities
efficiently (Breidenbach & Mitze, 2015). Manufacturing organization needs to transport various
raw materials and finished products to various destination; thus with good infrastructure, new
entrants find it easy as the cost is low.
d) Technology
Business organizations depend on technological elements to facilitate business operations.
Advanced technological operations ease communication, production and service providence.
Countries with developing technological have better business environment than countries with
low technological development.

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e) Consumer buying behaviour
a. The successor of an organization depends on consumer buying behaviour. In
developed countries, consumers tend to have strong purchasing power than in
underdeveloped countries thus enhance the revenue collection of the company
(Lazell, 2016). Countries with numerous organizations affect the buying
behaviour as they provide wide range of products to consumers to choose from
depending on the quality of product, price, and services.
f) Competition
a. Competition depends on the number of product suppliers against the number of
consumers. When the suppliers are higher than consumers, then the business
organizations tend to face stiff competition from the one another as each is trying
to capture the attention of the large market to enable its relevancy in the market
(Muiño & Núñez 2016). The stiff competition reduces revenue collection; thus in
the long term leads to the collapse of the business.
Figure 1: Shows Internal and External Factors contributing to the success of international
organization, obtained from (Bhandarker, 2014).