International Business Management

The report analyses the external environment of India and Germany with the help of PESTLE framework and geo-political analysis to determine the best location for Telstra's expansion plans. The report concludes that Germany is the more favourable option for Telstra's operations and expansion plans.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
INTERNATIONAL BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the detailed analysis of two countries which have been
considered for the expansion based plans of a global organization. The company
which has been considered for the analysis is Telstra Corporation. The two countries
which have been considered for the analysis are India and Germany. The external
environment of the country is analysed with the help of PESTLE framework. The geo
political analysis of the two countries have also been analysed in the report. The
report has been concluded by deciding that the expansion of Telstra Corporation in
Germany will be more favourable for its proper operations and expansion related
plans.

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Table of Contents
About Telstra......................................................................................................3
Identification of the countries where Telstra can enter......................................3
Study based on the environment of the countries.............................................3
Macro-environmental analysis of India..............................................................3
Geo-political analysis of India............................................................................5
Analysing the business and trade related policies of India...............................5
Risks and opportunities faced by Telstra in India..............................................6
Macro environmental analysis of the Germany.................................................6
Geo-political analysis of the Germany...............................................................8
Analysing business and trade based related of Germany.................................8
Risks and opportunities faced by Telstra in Germany.......................................8
Conclusion.........................................................................................................8
References.........................................................................................................9

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About Telstra
Telstra Corporation Limited which is also known as Telstra is considered to be
the biggest telecommunications organization in Australia which mainly develops and
operates telecommunications related networks in the country. The other major
services that are provided by the organization are thereby based on internet access,
mobile services, voice services and different services and products. The company
has been able to develop a history in the telecommunications market of Australia.
The organization was totally privatised after a change based program had taken
place in the organization in an effective manner. The CEO of the company has not
been able to maintain the revenues and profitability of Telstra Corporation in an
effective manner (Telstra.com.au 2018).
The report will thereby be based on the ways by which Telstra Corporation
can expand its operations in other countries. The countries which have been taken
under consideration for the expansion based operations if Telstra are India in Asia
and Germany in Europe.
Identification of the countries where Telstra can enter
India has been chosen as an option for the expansion of Telstra as the
country has an emerging economy and will be able to provide huge chances of
growth and revenues to Telstra Corporation. The company will be able to expand its
operations and revenues in an effective manner with the help of its services and
products. On the other hand, Germany is a developed country and can be an
effective potential location for the expansion based operations of Telstra
Corporation. The external environment based factors of the counties will thereby be
analysed with the help of PESTLE framework and the perfect area for expansion can
further be selected (Kaur and Dhillon 2017).
Study based on the environment of the countries
Macro-environmental analysis of India
The macro environment of India can be analysed with the help of the PESTLE
framework that is able to provide a clear insight based on different factors that are
able to affect the ways by which organizations can operate in the country.

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Political factors – India has been able to develop an effective powerful
position in the world with the help of large size of its democracy. The political
environment of the country is also considered to be quite stable in nature which can
be helpful for the development of the policies by Telstra. The people of the country
have a democratic will and the government is thereby created with the proper
elections on a local as well as a national basis. The stable political climate has
thereby been developed with the help of high levels of political tolerance in the
country. One of the major concerns in the country is corruption which affects the
stability of the environment (Sahoo, Sahoo and Sahu 2014).
Economic factors – The GDP of India is mainly worth 2.4 trillion Dollars
which has been able to develop the 7th position in the world based on the economy.
The different researches have been able to forecast that the GDP of the country is
expected to grow by around 7% in the coming years. The current rates of corporate
taxes in the country are thereby based on a rate of 30%. India has also acquired the
topmost position in many different industries which operate in the country. The
strong economy of the country can provide effective support to Telstra (Dhanesh
2015).
Social factors – India has a huge consumer based market with the help of a
total population of 1.2 billion. The huge market will be a major opportunity for the
expansion of Telstra Corporation. The cheap labour based opportunities can also be
used by Telstra Corporation in an effective manner. The huge number of
multinationals which have their operations in India have thereby been able to take
effective advantage of the consumer market. The consumers who are present in the
country have variety of choices as they belong to different areas (Saxena and
Shanker 2018).
Technological factors – The technological environment which has been
developed in India is also highly advanced in nature. India has thereby developed
third position in the world based on technological developments. The technological
development of the country is an important part of the opportunities which are
provided to Telstra for its operations in India. The e-commerce based activities are
also quite evident in the country (Chatterjee and Sahasranamam 2018).

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Legal factors – The legal landscape of India is an important factor that can
affect the operations of different organizations. The scope of the business and the
needs are thereby based on the regulations that can be developed by Telstra
Corporation. The foreign investors need to analyse the labour laws and employment
based laws in order to expand their operations in an effective and profitable manner
(Gupta et al. 2016).
Environmental factors – India has been able to make huge progress based
on the different types of industries and organizations which have their operations in
the country. The country has been facing high levels of challenges based on different
environmental factors like, water pollution, air pollution, resource depletion and
floods. Telstra will thereby need to consider the environmental factors in order to
improve its operations and procedures in the telecommunications industry (Ganguly
and Das 2017).
Geo-political analysis of India
The geo political position of India is mainly based on the way by which the
country is positioned in comparison to its neighbouring countries. India is thereby
able to maintain its position in the geopolitical area in spite of the major obstacles
which have been faced with respect to the economic and the political issues as well.
The global influence of India has been increased with the proper improvement of its
position in the geopolitical situation. The country also aims at increasing the
geopolitical reach in order to attract more international organizations. The position
which has thereby been developed by the country will act as a major advantage for
Telstra Corporation (Gupta et al. 2016).
Analysing the business and trade related policies of India
The foreign trade based policies are implemented in India mainly by the
Ministry of Commerce and Industry. The other major ministries which are related to
the development of these laws are, Finance, Textiles and Agriculture based
ministries. The execution of foreign trade related policies is the responsibility of The
Directorate General of Foreign Trade (DGFT) which further operates under
Department of Commerce. The free trade based environment that has been made in
the country will act as a major opportunity for the proper expansion of Telstra in India
(Wheelen et al. 2017).

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Risks and opportunities faced by Telstra in India
Risks – The changes which are continuously taking place in the economic
situation of India and stability of the political environment can act as major risks for
the profitability of Telstra Corporation. The environmental situation also can be
considered as a risk to the ways by which Telstra is able to operate in the country.
Opportunities – Telstra has been provided with huge number of opportunities
in the form of technological advancements and free trade based environment. The
company will be able to increase its revenues based on the huge number of
customers who are present in the market (Saxena and Shanker 2018).
Macro environmental analysis of the Germany
The PESTLE analysis based tool can be used by Telstra in order to analyse
the external environment based factors that are able to affect its operations in
Germany in a positive or negative manner. The country has been considered to be
the fourth biggest economy in the world and has been able to develop effective
standards of living for the people.
Political factors – The political system which has been developed in
Germany is mainly based on the system which is known as the Grundgesetz that
was established in the year 1949. The three major wings which are an important part
of the government based system of Germany mainly include, the executive wing,
legislature wing and the judiciary wing. The value system which is followed in the
country is totally dictated by the government of Germany. The structured government
system which has been developed in Germany is effective for the expansion of
Telstra Corporation (Achterberg et al. 2018).
Economic factors – The levels of raw materials are quite low in the Germany
which can affect operations of different international organizations. Germany has
been able to lead the market based on the production of electricity and natural gas.
More than 70% of the total GDP of Germany is based on the contribution which is
provided by the service sector. The most important products which are thereby
manufactured in the country are based on engineering. The stable economic
situation of the country is a major advantage for the future operations of Telstra in
Germany (Schaltegger, Lüdeke-Freund and Hansen 2016).

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Social factors – Germany has been considered to be the largest EU country
based on the population and it can thereby be described as a multicultural and
modern country. The society can thereby play an important role in the ways by which
the company can gain its effective position in the country. The young people are able
to develop a major part in the society of Germany. The social changes which have
recently taken place in the country are important for the development of the
revenues of Telstra (Ketata, Sofka and Grimpe 2015).
Technological factors – The national technology and science based
activities have been backed by the German government in an effective way. The
private research and national laboratories are also present in the country for the
purpose of conducting these activities. The technological developments are thereby
supported by the country which is a major advantage for the proper operations of
Telstra Corporation in the country. The technologically advanced and peaceful
environment of Germany is a perfect opportunity for Telstra Corporation to expand
its operations (Jenkins and Williamson 2015).
Legal factors – The division of the legal administration process is done in a
manner which is highly influenced by the laws that have been developed by the
European Union. The patents and trademarks which are possessed by the
organizations or brands in Germany are able to enjoy efficient levels of protection.
Telstra can thereby expand its operations in Germany in a safe and protected
manner. The different laws and standards which have been developed in the country
are important for the proper expansion of Telstra (Bottenberg, Tuschke and
Flickinger 2017).
Environmental factors – The environment of Germany has been affected by
the industrialization based activities in the country. The major sources of energy
which are an important part of the environmental factors of the country include,
petroleum, natural gas and nuclear energy. The other major sources of energy also
include, solar, hydroelectric power and wind power. Telstra thereby needs to develop
the products in such a manner which can reduce its effects on the environment
(Hamilton and Webster 2015).

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Geo-political analysis of the Germany
The geo political situation of Germany has been affected by the changes
which have taken place in the laws of European Union after Brexit. Germany has
made many different trade based agreements with other countries in order to
improve its position and relationship as well. The entry of Telstra Corporation in the
telecommunications industry of Germany is thereby based on the major geo political
position which is held by the company in the world (Boasson and Wettestad 2016).
Analysing business and trade based related of Germany
Germany has developed an important part in the operations related to imports
and exports which are performed in the European Union. The Common External
Tariff or CET is applicable in an effective manner in the countries which are a part of
the European countries. Germany is also affected by the application of this law. The
laws are able promote free trade which has further provided opportunities of growth
to Telstra (Hamilton and Webster 2015).
Risks and opportunities faced by Telstra in Germany
Risks – The risks that can be faced by the company in its expansion in
Germany are mainly related to lack of effective raw materials.
Opportunities – The company is also provided with major opportunities which
are related to the advanced technologies and the stable economy of Germany
(Wheelen et al. 2017).
Conclusion
The analysis in the report can be concluded with the statement that the
expansion of Telstra Corporation is highly favourable in Germany. The
technologically advanced environment of the country can be considered to be an
advantage for the operations of Telstra Corporation. The revenues and profitability of
the company will also be increased in an efficient manner with the help of expansion
in Germany.

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References
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