Pentagon Plastics: A Report on German Market Expansion Strategy

This report examines Pentagon Plastics' potential expansion into the German market. It provides a company outline, rationale for choosing Germany, and analysis of the political stability, economic structure, legal landscape, and technological factors. The report compares the plastics industry in Germany and the UK, highlighting Germany's strong position in polycarbonate infusion molded machines and its commitment to recycling. It assesses political risks, economic conditions, and major industries in both countries. Furthermore, the report discusses entry mode options, focusing on exporting, and provides a recommendation for Pentagon Plastics' expansion strategy. The conclusion summarizes the key findings and emphasizes the importance of strategic planning for successful market entry. Desklib provides students access to a wide array of similar solved assignments and project reports.

Project

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................1
Company Outline.........................................................................................................................1
Why Expansion in Germany........................................................................................................2
Political Stability and Risks.........................................................................................................8
Economic Structure and Major Industries...................................................................................9
Legal landscape...........................................................................................................................9
Technological factors.................................................................................................................10
Entry Mode Analysis.................................................................................................................10
Exporting...................................................................................................................................11
Indirect Exporting......................................................................................................................11
Recommendation...........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Small and medium enterprises are very crucial as well as critical for each and every
country as they contribute to the economy and development of the nation so that it can stand well
ahead of all its competitors all around the globe (Ahani, Rahim and Nilashi, 2017). Pentagon
Plastics is a forward-thinking plastic infusion moulded company situated in Crawley,
Southampton, UK. Designing support, manufacturing, tooling, compression moulding, and
subsequent sculpting activities are all available at Pentagon Plastics. As a customized polyamide
item maker in the United Kingdom. They deal with a diverse variety of sectors, from healthcare
and aviation to architecture and defence, aim of providing moulded manufacturing and repetitive
manufacturing of injections moulding products.

Main Body
Company Outline
Pentagon Plastics, injections moulded and manufacturing expert, just attended a visit for
BPF corporate partners to exhibit the corporation's development and expansion.
The tour that was previously organised by Amaray and The Stewart Group allows
companies to share respective infrastructures and capabilities as well as concerns facing the UK
industrial sector.
Throughout the event, attendees listened Dr Sara Cammarano of the BPF speak about
wellness in the polyethylene industry. The BPF has indeed been focusing on administration
quality in the industry from October 2010.
Christopher Moore of RJG addressed the problem of skills constraints in a subsequent
presentation, which included methods such as providing more training and internships,
producing knowledge, and generating internal employees (Ahmad and Atniesha, 2018).
“It had always a pleasure to organize a BPF inspection of the facility, and we have been
pleased to be invited by the organization. Paul Edwards, the Pentagon's General Manager, stated,

"It's been such a fantastic ability to demonstrate off our personal development and success
throughout the last six years."
The Pentagon Plastics Corporation subsequently stated that they could increase by 12,000
residential units by acquiring the neighbouring plant. Phoenix Engineering 2009 (also subsidiary
of the Pentagon Plastics Corporation) and a number of other businesses in Sussex call this
production site residence.
Pentagon Plastics will increase its production capability to much more than 25,000
residential units by purchasing this property. This £750,000 bet is said to be self-sustaining due
to operating capacity.
This announcement comes after a successful year for the company, which included a
major rebranding, receiving the Investments in Young People Competition, and also being
selected a contender in the Business Organisation of the Year Accolade for the Gatwick Gold
Enterprise zone.
The Pentagon has nine amazing equipment that can generate plastic projectiles varying in
weight from 1/2g to 500g in polycarbonate materials with melting temperatures varying from
150°C (e.g., PP) to 390°C (e.g. PEEK). Such devices are usually mechanised, but not always,
because whenever manufacturing quantities are low enough and that there is an unusual need for
it, components could be removed by an employee (Almomani, Basri and Gilal, 2018).
Why Expansion in Germany
Getting this level of establishment and ferocity in one organisation could even benefit
other organisations. For example, if the Pentagon expands in any EU sovereign country, such as
Germany, Germany would have a stronger position in the global plastics market. From what I've
seen, Germany is the leading EU country in attempting to introduce in polycarbonate infusion
moulded machines.

The European polymers sector is under challenges on several facets as K 2019
approaches. The industry is chugging forward with it; the United Kingdom's postponed
departure from the EU is causing unrest; significant traditional foreign marketplaces are
trembling; and purchasers' stabilising points of view on polymers containers are spurring rushed
– and in certain cases, badly evaluated moves among legislators laying out a path to the Circular
Economy (Bakri, 2017).
Germany vs UK
The German financial system, which is often seen as Europe's driving power, is in a
precarious position, with commerce from and importation into the country both declining in
recent months. Only Portugal is in a particular field among the 4 largest sectors of the economy.
According to some economists, the eurozone's GDP would grow in the year and, however the
amount would be small. Furthermore, in March, UK manufacturing became faster than it had
previously in over a year – to a significant degree because companies had already been
stockpiling goods in anticipation of Brexit.

Transactions in the German polymers processing business grew by even more than 3% a
year earlier, roughly double as fast as GDP, according to Oliver Mollensdadt, former head of
GKV, the German Organization of Polymers Adapters (GKV). “As the industry evolves in an
extremely volatile global context, this really is impressive,” he adds (Biggeri, 2020).
The cutting-edge polymers sector being born in the UK in the nineteenth era, and it's no
surprise that now the UK is becoming a creative force in the global polymers sector. The UK
polymers sector is a global pioneer, attempting to keep the innovation at the frontline and
establishing a major UK stakeholder capability. It employs around 182,000 people and has an
annual transaction volume of over 23.5 billion pounds. The company is a global leader in three
key sectors which comprise up the polymers industry: material and additional component
manufacturing, ingredient converters, and mechanical equipment. There are approximately
6,200 companies working in the UK polymers sector, with roughly 5,200 of them classified as
"producers" of polymer products (Charoensukmongkol, 2016).
From the manufacturers of polymers building ingredients and additional chemicals to
the final user, the industry has a difficult and detailed distribution network (client ventures).

Numerous different groups, such as vehicle divisions and commerce bundles, have completely
remarkable value chains.
From 2009, the polymers industry in the United Kingdom, like most other industries,
has undergone a level of unification. As could be observed in the graph below, the overall
quantity of polymer processing has decreased by 7%, but circulation has increased by 18%.
The polymers business in the United Kingdom is incredibly creative and, as a result,
pretty severe. While comparing the statistic to the whole circulation of the polymers sector, it can
be shown that the UK plastics sector does exceptionally however when compared to other
European exporting countries. Polymer and plastics components were among the UK's top ten
exporters in 2015, at £7.5 billion.
This same reasoning has sparked initiatives in Germany and the UK to address the
problem by repurposing as much polyethylene garbage as possible in households, businesses,
and construction sites. Plastics makes up 41% of Europe's trash, and with the continent's
population at less than 10% of the global total, it's hardly surprising since they send off 22% of
the globe's disposable plastics (Chowdhury and Alam, 2017).

The German trash management system collaborates alongside numerous organisations
and influences to repurpose roughly 63 % of the country's plastics wastes, which is used in a
range of modes and constructions. Probably one of the best methods would be to use recycled
substances as a substitute for energy products such as gasoline and hydrocarbons. The vapour
produced by such consumption processes is used to generate electricity in Germany and in the
nation's massive manufacturing infrastructure. It's possible that Germany's conscious
commitment to treating its internal garbage is a consequence to the country's massive
manufacturing and assembly sector, and if that's the fact, it deserves a heap of credit. Each day,
the United Kingdom produces up to 9 million tonnes of plastic that equates to about 20 kg per
person. Clearly, the exceptional amount of trash is generated by organisations, especially the
construction industry, instead of by domestic household groups (Gulsoy and Kulluk, 2019).

Despite the fact that several operations have indeed been carried out over the years to
increase the connection of our nation's reuse infrastructure, we have only now gotten at the
devastating level of 22 percent (reusage). This places us in the same boat as some other
European countries that have a 37.2 percent polymer reuse percentage.
All factors altogether, it's comforting to know that many groups, especially those who
work with recycling vegetation, won't ought to adjust existing plans because there would still be
plenty of material to reuse. The United Kingdom could hold out hope even with more freedom
to make their own rules; it could change direction and emerge 1 of Europe's finest recycling
centres.
Political Stability and Risks
Migrants from every country in the EU are concentrated in Germany. New legislation
enables it much easier for qualified immigrants to come into the country and obtain employment
permits, but also leave it more difficult for those seeking asylum. After the temporary ban on
relative reunion expired in 2018, Berlin expects up to 300,000 frequencies to come into the
country.
In its efforts to rebuild north-eastern Germany, the government is confronted with a slew
of challenges. Berlin is aiming to shift €80 billion (about US$87 billion) in state support and
economic subsidies to the north east on a steady basis through 2021. Despite of such financial
trades, north-eastern Germany's GDP per capita is currently only approximately 70% of that of
southern Germany (Ham, Choi and Lee, 2017).
The United Kingdom is among the most affluent and compelling nations in the globe,
with a massive challenge ahead of it on the international scene. It is one of the 5 permanent
members of the UN Security Committee, including some of the founding members of the
NATO, and a member of the G8. Despite being a member of the EU, it has a conservative
approach to dealing with the problem of European integration. The Scottish Nationalist Parties
(SNP) gained a huge majority in the May 2011 Scotland government elections, and is planning a
presentation on liberty in September 2014. Regardless, independence is a long way off, and
further degeneration of powers is a distinct possibility.
Geopolitics will predominate the risk situation in the Middle East. At the time of
composition it might be appear as to be following the increase in the following manner with
significant section in the early 2020, that might be termed as the targeted. Hence, The United

Kingdom is termed as an effective section to maintain the wide term of a potential section of the
task as per to its international section behind the basic term of motive. It will involve the most
durable section with permanent terms of the UN Security that might be involve in some of the
members or candidates in the government in the following nation. It will define as the suitable
field of area that will include the basic section that has been maximised the role in the Middle
East to be continue it by the global manner. For example, its support for the other nation's
government. As the US presidential election that will plays out and have high term of the
attention that will be placed on various sections in the United Kingdom to attempts and will
interfere it as the motive to deliver the field that did it before in the orientation or straining
relations further. In Europe, although the UK left the EU on January 31, its future relationship
with the EU — from economic to political to security — will take years to address. Among the
sectors with strong potential are information and communication technologies, biotechnologies,
aviation, renewable energies and defence. 2020 was a hard year for the UK’s secondary sector:
data from the ONS shows that at the end of October manufacturing output remained 6.6% below
its February 2020 levels, same as for construction output (-6.4%), with production industries as a
whole remaining 4.4% below their February 2020 level.
Economic Structure and Major Industries
For a long time, the true assessment of commercial energy utilisation has witnessed only
modest growth. In 2019, improvements of 1.6 percent were achieved, while a drop of 5.5 percent
is expected in 2020.
COVID-19-related temporary economic crises, lockdowns, and societal segregation
restrictions have limited expenditure.
In 2019, the unemployment rate was 3.1 percent, and it is expected to rise to 4.3 percent
in 2020. Unemployment had stayed considerably lower as a result of the creation of supported
short-term progress reports. The company continues to grow again in August, and the percentage
of jobs relying on the short-term job conspiracies had started to decline from its peak of
6,000,000 in April-May.
Additional regulation allows the government to exert considerably tighter supervision
over speculative mechanisms such as diversified partnerships, commercial valuation companies,
and financial market assistance (Sala, Landoni and Verganti, 2016). More consolidation and