Business Environment Assignment - LEGO COMPANY
Added on 2020-11-12
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LEGO COMPANY IN GERMANY/REPORT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1Introduction to company..............................................................................................................1Allocated business environment..................................................................................................2Applying analytical approach......................................................................................................4Implication of appropriate data with examples...........................................................................5CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONThe impact of organisation which are approaching towards becoming global leader haveimpact on the nation economy. Therefore, there are various multinational organisations whichare being operating activities in the world and have supported the national economic scale. In thepresent report, there will be suggestion given to the LEGO toy company of Denmark whichoperate the business in Germany. However, there will be analysis over the business environmentas well as implication of various analytical approaches which will help the managerialprofessionals in analysing the efficiency of business as well as market scenario to makecorrective actions. This whole study is based on foreign direct investment which is used asmethod of entering a new market by investing in the other country for expanding the business orestablishment of new business in that country. Foreign direct investment assist in increasing themarket share of company by investing in other country to expand their business or increase theircustomer base through providing their products and services in the allocated country. LEGO byusing the foreign direct investment can enter the new market in Germany for enhancing theirprofitability by identifying the scope of their business in Germany. MAIN BODYIntroduction to companyLEGO company have been engaged in operating the construction of plastic toys as statedin Denmark since 1949. This organisation have been spread widely in various nation as perdeveloping the toys with considering the proper quality such as use of good quality plastic,recycling the plastics etc. Thus, as per initiating the business Germany there will be requirementof analysing the market conditions such as consumer preferences, competitors, governmentalregulations and various legal aspects. LEGO is going to expand their business in Germanythrough use of foreign direct investment which will assist in entering the new country with theirexisting operations. Foreign direct investment is the way which will assist LEGO to enter in theGermany market for increasing their profitability and achieving market share in manufacturingindustry in that company. LEGO through analysing the business environment will be able toadopt to the changes and get the ideas regarding the issues which will be faced by the companyduring their expansion in Germany. 1
Allocated business environmentBy considering the consistency in improving the operational activities of the business on whichthere must be ascertainment of various analytical methods which would lead the firm in retaininghigher success. It includes various models that will bring a clear look through of organisationalconcepts and making corrective actions (Mets, 2018). The following the external environmentof the Germany for identifying the factors which may affect the business environment in theiroperations to reduce the changes of threat and provide the competitive advantage to the firm byunderstanding the business environment in Germany. By using the Pestle analysis company willbe able to understand the factors which have their influence on the business operation inGermany so that the firm is able to make decision regarding the foreign direct investment in theallocated country.PESTLE AnalysisThis is the external analysis over operational aspects of organisation which have been relatesto corporate environment in Germany.Political: This is the factor which indicates political influences of a nation over thecompanies which are being operating or planning to operate. It consists of analysing thegovernmental policies, rules, regulations and various legal aspects based on the process onwhich a business would perform (Phadermrod, Crowder and Wills, 2019). As perconsidering the political influences of LEGO company on which it can be said that,professionals have been engaged in managing the neutrality in politics which has beendemonstrated as core value of organisation. The political environment to Germany is stablewhich means there are not more changes in the taxation and other polices of government. Itmeans LEGO will have smooth operation sin investing in Germany.Social: In this aspect there must be consideration over the social, cultural and traditionalvariations in each country would affect the business operations. Germany have been denotedas socially dynamic nation on which one would have better operational practices, in relationwith the social approaches by LEGO company on which it can be said that, the company isoperating a foundation which encourages learning of children through playing activities(Sammut‐Bonnici and Galea, 2015). Therefore, implicating the dynamic social culturewhich influences children away from traditional toys.2
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