Morgan Motor Company: Pestle and Ansoff Analysis for Germany

This report examines Morgan Motor Company's potential for entering the German market. It begins with an overview of the company and its operations, followed by a PESTLE analysis of the German market, considering political, economic, social, technological, environmental, and legal factors. T...Read More

Global Business in
Context

Table of Contents
INTRODUCTION ..........................................................................................................................2
Overview.....................................................................................................................................2
Pestle Analysis of the Germany.................................................................................................2
Recommendation.........................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Globalization is the process in which company expand their business in other country and
they started operating their business on the international Level. International market have more
potential as compare to the domestic market and organizations can earn more profit and increase
their growth. They have to use some market strategies which can be helpful for the company to
expand their business on the global level. There are lot”s of opportunity in the global market but
they have to do marketing in the other countries then only thy can be successful on this market.
It need more capital and proper market entry strategies and with the enter in this market
competition will also increase. This report will cover 'Morgan Motor company' to move in the
Germany market and this report will analyze the market of the Germany and it will cover the
overview of this company , pestle analysis of the company and ansoff as well. This all will be
cover in this report.
MAIN BODY
Overview
Morgan Mother is an British car manufacturing company which was founded in a 1910.
this companies headquarter is in Malven , Worcestershire, United Kingdom. This is one of the
Fastest growing small manufacturer company in UK (Eriksen., 2018). They are selling cars in
the United Kingdom and also giving good competition to the other motor car manufacturing
companies. They are producing almost 800 cars per year and more then 200 employees are
working for this company and waiting time for any customer to get car of this company take
almost 5 to 6 moths. The unique thing about their car is they use wood in their car during
manufacturing process. Giving better facility and comfort to their customer and prices of the cars
are very low. they are giving better facility in low price range. Now they are thinking to enter in
Germany's market to expand their Business.
Pestle Analysis of the Germany
Political Factors
Germany is an democratic country and they have different in the tax stricture. If the
Morgan Motor will enter in the Germany market then they have to pay different different taxes
and this will charge more for this company they bare charging heavy amount on the vehicle This
is could be a competitive advantages for the company. They are taking 10 percent of export duty
for vehicles which is due to the increasing polarity of the motor car in the Germany. this can be
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disadvantage for this company. Because of high tax structure and more export duty this can be
affect on the profitability of this company. With the change of government , tax structure of the
Germany will also change (Steger., 2017). They can face high competition in this market
because Germany is an one of the leading car manufacturer industry in the work this will be
affect on the profitability of the Morgan Motor company. Relation between UK and Germany are
not good and because of this they can charge more and they can take more tax from this
company.
Economical Factors
Germany is an 4 largest economy in the world and most of the employees in the Germany
is employees. Employees in the Germany take high salaries. Germany is the country where
employees get high salaries as compare to the other countries in the world. Because of high
salaries of the labor in this company can surfer from loss and they have to give high amount of
the salaries to their employees in the Germany. Labor rate is very high and they will bring labor
from the other country then they have to pay for their food, leaving and many more. This all will
cost more and this will affect on their profitability.
Social Environment
People in the Germany have high stranded of leaving. They all use famous brand they
buy cars which is already famous in their country. Germany is an one of the most motor car
manufacturer in the world there are many famous brand of the motor car is established in the
Germany (Pieterse., 2019). Morgan Motor is New brand and they do not have that much
reputation in the market. They will take time to establish their business in the Germany and they
have high chances to fail in this market. People in Germany buy a expensive cars and this
company do not make expensive motor cars. It will be hard for them to establish their brand
name in the Germany. They need to satisfy customers from this country and they have develop
their product which can satisfy demand of the Germany people. If they will develop their cars
according to them then it will take high amount of cost in the manufacturing and new design. It
will hard for them to enter in this market.
Technological factor
Germany is an 5 th Best technological country in the all over the world . Morgan Motor
can improve their technology in this country and they can implement this all in low rice they can
develop their cares more better and present their cars in unique ways. They can make new
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product using those technology and increase their productivity more but they have disadvantage
as well because they are leading car manufacturing nation there are many car manufact5ure are
already establish their brand and this company can face major competition in this industry. In
the technology Germany is an best place but there is heavy competition in the market.
Environment factor
Germany is facing problem related to the Pollution. If Morgan Motor wanted to enter in
the Germany market they have to make Vehicle which do not affect the environment (Eriksen.,
2018). This will be good move if they will develop product like this which product less smoke
and if they can develop this skills in their vehicles then they can give better competition to the
others and this can be helpful for them in growth and establish their brand in the Germany
market.
Legal factors
Germany is an legal landscape of the country . From the German low they do do not
compare with the Foreign national and German national concerning with the investment or
companies establishment. They promote all type of business equally and they support every
busyness . It will affect on the company and they can easily establish their business in the
German country because the approach of the German government is very open and regardless of
weather or not the business involve German national or any other foreign country. They have to
follow the rules which other company's are following they do not make different rules for
foreign business. They all are equal for the German government they all have to follow rule
equally.
An soff Matrix of Morgan motor company
Strength
Morgan meters are making are making a Eco friendly cars in all over the world . UK
automotive market have recently developed a new trend of the purchasing cars which is Eco
friendly. They make this new trend because of global concern about a use of the cars with the
high carbon of emission . there are some other countries united states , Europe and many more
have also join this new trend. Because of this trend many people by this Eco friendly cars
(Bourguignon.,2017). this change bring the opportunity for this company and they are give
competition to other big brand. Since this company has align themselves with this market trend,
it is set to gain from increased demand for ‘green’ vehicles. this company is specialist in
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developing a new models of the Hybrid vehicle, which can create a opportunity for them to enter
in the German market . they can get support from the German government because there is to
much pollution. This can create better market for Moron motor company. They are making third
brand name because of the green vehicle and this could help them to give healthy competition to
the other brand in German market.
Threats
This company is specialist in making Eco friendly cars and there are lot’s competitive
pressure coming from this other companies who used to make green vehicles. most of the
companies started making Eco friendly cars and now they all are giving condition to the Morgan
Motors. The pressure which is coming from the competitors are bound to affect on this company
negatively because those competitors are bound to compete with similar market shares as the
company (Rodrik., 2018). Vehicles of the this company is quid expense as compare to the other
Eco friendly vehicles, there are many companies in the German market who started making Eco
friendly vehicles and if this company enters in German market then they face high competition in
third market. Market of the united kingdom is going to be no expansion because of this condition
this company is expected to be face stiff competition from the other hybrid car market.
Opportunity
Due to the increased in the awareness of carbon emissions produced by the transport
industry and other sectors of the economy, there has been an increased in the demand for Eco-
friendly cars .UK Governments are also to be expected to join this debate, with more authorities
expected to introduce regulations regarding the use of high carbon emitting cars which will help
to decrease a pollution in country (Martell., 2016). The UK is no exception. The trend to
purchase more green cars has already been view in most developed economies such as Japan, US
and the wider European continent, with the more people demanding for electric car or green cars
for their daily usage . With the more concern being directed to the effects of environmental
caused by the use of fossil fuel, there is no doubt on that the demand for green vehicles will
increase.
The United Kingdom in regularly investing more money trying to come up with newer
Eco-friendly vehicles to overcome the environmental calamity experienced in the country, in
respect of carbon emission realize from continuing economic activates in the country. co
friendly cars are run with the electricity and they do not need fuel to run. They are giving better
mileage as compare to the fuel cars . company is using bio gas as well (Croucher., 2018). This is
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where the Morgan Motor Company seek to gain prominence because it specialized to produce a
green cars. Moreover, since the trend to buy green cars is only beginning, this Company is bound
to enjoy a very wide market share for green cars. This require projection is expected to sustain
the companies growth into the future. Indeed, this market trend poses a strong opportunities for
Morgan Motor.
Weakness
One of the major weakness will be the expected price of the Morgan life car. Green are
very expensive and not everyone car afford this cars and the Morgan life car will going to be
Exception . there is very less information is available about this car. previous car of this company
take almost 2.5 million pound to build this car.
Recommendation
This company cars is very Eco friendly and they have expand their business in all over
the Uk and other country as well but if they are thinking to establish their business in German
market then this can affect on their probability because there are many famous brand who are
making Eco friendly cars in the German market (Stearns., 2016). They will face to much
competition their because they are selling their cars in high coast, and in a German market there
are many car manufacturer who are making Eco friendly cars in Low price. Company have
chances to fail in German market. They have to give high salaries to their employees. This will
be risky for them to enter in German market.
CONCLUSION
As per the above report has been analyzed the definition of the globalization and this
report has been briefly explain this case study of The Morgan Motors and this report has been
analyzed the political , economical , environmental , technological and legal factors which can
impact on the company during the German market entry, then it has been analyzed the strength ,
weakness , threats and opportunity of the Morgan motor company.
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REFERENCES
Books and Journal
Eriksen, T. H., 2018. Globalization. In Handbook of Political Anthropology. Edward Elgar
Publishing.
Hirst, P. and et.al., 2015. Globalization in question. John Wiley & Sons.
Steger, M. B., 2017. Globalization: A very short introduction (Vol. 86). Oxford University Press.
Pieterse, J .N., 2019. Globalization and culture: Global mélange. Rowman & Littlefield
Publishers.
Crane, D., Kawashima, N. and Kawasaki, K. I. eds., 2016. Global culture: Media, arts, policy,
and globalization. Routledge.
Milanovic, B., 2016. Global inequality: A new approach for the age of globalization. Harvard
University Press.
Bourguignon, F., 2017. The globalization of inequality. Princeton University Press.
Crane, A. and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press.
Rodrik, D., 2018. Populism and the Economics of Globalization. Journal of International
Business Policy. 1(1-2). pp.12-33.
Martell, L., 2016. The sociology of globalization. John Wiley & Sons.
Croucher, S., 2018. Globalization and belonging: The politics of identity in a changing world.
Rowman & Littlefield.
Stearns, P. N., 2016. Globalization in world history. Routledge.
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