Paper due on 09/26/2014

timer Asked: Sep 10th, 2014

Question description


            I will give you the executive summary - which I have already submitted - feel free to manipulate in any order that you need to incorporate it into the final paper.

Secondly, will give you the parameters of the project - it can not surpass 5 pages.

Course Project
Strategic Entry Report: Developing a Plan for a Business Operation Abroad


You have been hired by a large U.S. corporation to create a strategic report on establishing a business operation abroad. You have the specific task of providing in your report an overview of the cultural, political, and macroeconomic environment in the target country and region, and estimating the costs and political risks of doing business there. Based on these considerations, you are required to make a clear-cut, yes-or-no executive recommendation on whether to establish a business operation and give reasons for your decision.

This project will be conducted individually. Your assigned target country and industry will be posted to the Forum by your instructor.

First Steps

During Module 1, consult the Forum to find your assigned project theme (country and industry), as posted by your instructor. Start reviewing online resources of business information on your target country and industry. The number of necessary resources is not specified; however, we suggest that you use Jones e-global library® as much as possible. Proactive and independent research of online sources is one of the conditions for successfully completing the project.

Executive Summary

During Module 4, post to the Forum an executive summary. Your summary (without references, tables, or graphs) should not exceed 1 page; and APA style is not required. Your executive summary should argue for or against establishing a business operation in the target country. If you argue for establishing a business operation, describe the form that you think that operation should take (joint-venture, direct foreign investment, etc.), and provide a short analysis of the risks and benefits. If you argue against establishing a business operation, specify your reasons and back them up with specific information gathered from your research. There is no right or wrong answer to each project theme; and it is up to you to defend your decision.

Final Report

During Module 8, post to the Forum your final report. Your report should not exceed five pages in APA style, excluding tables and graphs. The report will start with an executive summary, which can expand on, but not contradict, the summary you provided during Module 4. This should be followed by a short review consisting of:

  • The local political environment and the country’s relationship with the US
  • The local macroeconomic situation and economic attitudes
  • The local business culture in relation to the US, including any language barriers
  • The cost/benefit and risk/benefit aspects of establishing the business operation in the target country
  • A list of online references in APA style

Executive Summary - Already submitted - received a 96 out of 100

  Germany is a European country known for its cultural compatibility to technology and innovation. The business position has been sought here for the feasibility of investment in Munich, Germany. The country is also the hub of various investors as it provides research and development facilities to the government as well as providing a feasible workforce. In order to accurately assess the feasibility of the business, strategic factors such as state of the economy, availability of technology, social and legal environment are important and should be considered accordingly. Due to globalization, there is a great degree of availability involving technology, and diverse ethnic environments, whereby, such attributes can prove  as assets to the company. German workers have distinct features; whereas, each is highly cooperative, and work well in a team environments. Other than socio-cultural aspects, the legal requirements are supportive relative to the business, and the trade environment is governed through WTO and other measures, whereas the local laws are also prevailing factors (Meiners, Ringleb, & Edwards, 2014). The GDP volume of Germany is 3.87 trillion, and GDP growth rate stands in at  -0.2%. Unemployment, at present, is declining as compared to previous years and is currently measured at 4%. Inflation has also decreased and, to date, is 0.8%. Finally, the interest rate is 0.15% (Economic Indicators, 2014). The GDP of the country is voluminous, and it is considered one of the most developed countries in the world. The growth rate is negative, which means that the economy has been sustained at this point. The current unemployment rate stands less than 5%. In addition, inflation, has been trending downward. Present interest rates allow for continuous investment and, as such, fulfill fiscal policy objectives of triggering the economy through increasing investment. Interest rates, to date, have been sustained, and for this reason, macroeconomic dynamics calls for decreased unemployment. These conditions go hand in hand, whereas, investment is decreasing, and due to which, the economic activity is increasing. Presently, the fiscal policy is synergistic to the investment, and the investment could prove prosperous  in Munich, Germany. The decreasing unemployment rate also supports the projection of the interest rate economic elaboration, the decrease in unemployment will result in increased bargaining power of employees as most of the people will be already employed, and new business will be less apt to impose their conditions on new workforce. Inflation, within Germany, is far less, which indicates the effectiveness of the economic policy of Munich. In measuring the significantly lower interest rates, discover unemployment is less, and consequently, the inflation should increase, however due to governmental intervention, the economy continues to demonstrate consistent growth. Conditions, as such, are indicative of adverse impacts relative to inflation and, in return,  increase profitability of manufacturing business where costs associated with resources will not increase. In order to adapt to German business practices will need to gain a level of expertise concerning manufacturing and manufacturing operations, whereby, a joint venture becomes more conducive. Acquiring, expert manufacturing practices, will provide an early competitive industry advantage to the organization. Cultural diversity, within the target country, is considered as a supporting factor in most present business and considered as a viable asset. Other factors, such as, the local and

power culture should not be used, as it could, ultimately result, in irreparable conflict between corporate headquarters and the Munich local workforce. The social, cultural, legal and environment factors are well established and, as a result, supportive for the expansion strategy, and most decisively, the macroeconomic factors are align to the investment. It is for these very reasons the company should move forward with the  business decision to fully  invest in Munich, Germany.

Works Cited

EconomicIndicators. (2014). Germany | Economic Indicators. Retrieved 8 28, 2014, from

Meiners, R. E., Ringleb, A. H., & Edwards, F. (2014). The Legal Environment of Business. Cengage Learning.

Here is the professors comments - 

Hi Michael, I largely agree with the spirit of the analysis and thank you for your time and effort in summarizing info so well. The report opens avenues to an extension and final reporting in week 8. Language, transportation and cultural setting are the key few points that set Germany apart from other potential European location. Although English is spoken in many other locations it is the one of the primary languages used in large German cities and will fit well with the majority of the people we transplant in Southern Germany from the US. The atmosphere and culture of Munich is somewhat close to that which we know in the US which should make for the easiest change over in people relocating from the US as well. Transportation in Germany overall is also an exceptional plus as things like the autobahn is what our freeway system is based on in the US. As biotechnology is already a very established and a rich environment currently in Southern Germany this will be an additional win. The over 500 biotechnology companies, with annual revenue of over 1.5 billion euros that are supported by over 13,000 staff members are a great atmosphere to locate our new biotech location within. Having this many people and overall talent targeted at our industry will help us being located in Munich. MIRO

Let me know if you need anything in addition.

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