Critical Evaluation of German Business Environment for Loynds

Running head: MANAGEMENT
Global Business
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Executive Summary:
The aim of the report is to provide an insight into the critical evaluation of the aspects of
business environment of Germany to analyze the decision of a small UK manufacturing unit,
Loynds to relocate to the concerned location thereby assessing the decision to internationalize.
The report commences with a market overview of Germany along with an evaluation of the
political, economic, social, environmental and legal. The findings show that Germany provides
an ideal ambience to the manufacturing firm of UK to flourish. The report also puts across an
example for better understanding the business scenario in Germany.

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Table of Contents
Introduction:....................................................................................................................................3
The Overview of the Market:..........................................................................................................3
Factors in German Business Environment a Company Needs to Consider Before Making Entry. 5
Convenience of Doing Business in Germany in terms of Incentives for Start-ups.........................6
Access to Supplies and Export of Goods.........................................................................................7
Convenience in finding the Required Skills....................................................................................8
Example:..........................................................................................................................................8
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

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Introduction:
The report aims at providing a review of a Loynds, small manufacturing firm of United
Kingdom (UK) that plans to move its production to a German location in the year 2019. The
report provides a critical evaluation of the specific aspects of business environment of Germany
that the firm needs to consider while accessing the decision of internationalization. The report
carries out the analysis by using various examples. Germany is situated in the north of central
Europe and covers closer to 356,750 square kilometer. The country shares its borders with
Belgium, Austria, Denmark, Czech Republic, France, Denmark, Poland, Luxembourg,
Switzerland and Netherlands. The country is positioned strategically amidst the active trading
zones of the world. It can be said that Germany has easier access to Nordic countries and United
Kingdom. The country has a population of over 80 million people and is one of the biggest
economies in realistic terms. It is also considered as one of the top exporters of the world. A 20th
rank as marked by World Bank and 25th in Index of Economic Freedom holds testament to the
forward looking approach of Germany towards business, openness to the global commerce,
protection to the intellectual property rights and regulatory business environment.
The Overview of the Market:
According to Breyer and Gerlach (2013), small UK firms like Loynds that is planning to
move its production to a location in Germany in the year 2019 should undertake a detailed
review of the market. As far as the economy of Germany is considered it is the fourth largest in
the world and account for over one fifth of the GDP of the European Union (Dustmann et al.
2014). It is one of the largest trading partners for United States and has sixth largest market for
the exports of USA. The social market economy of Germany follows the principles of free