External Analysis Business Report

Topics: Geert Hofstede, Inflation, Law Pages: 8 (2168 words) Published: December 21, 2013

1. Introduction
KeepCup Company is an Australia private company, who are working in exporting reusable cups. KeepCup head office, which in Melbourne is recently exploring for the feasibility of introducing their product overseas to German. This business report provides a business analysis and consideration about the external environment in German.

The purpose of this business report is to facilitate KeepCup in order to help the company to make decision for expanding their product exporting to German. The observation will go through on the political, economic, socio-cultural, technological and legal environment of German.

Besides reporting the environment condition in German, this report provide analysis about the external environment in relation to KeepCup. In addition, this business report will highlight the strengths, weaknesses, opportunities and threats according to the external environment in German related to KeepCup. The recommendations on the suitableness of this expansion will be based on the SWOT analysis.

The report found that expanding the product distribution to German is a good decision. The opportunities regarded to German’s external environment supersede the threats. The rapid growth in modern technology, highly economic growth, the socio-culture, also the political environment in German can be a convenience way for the company to operate in German. Also the similarity between Labor and Business Law in German and Australia are considered as opportunities for KeepCup. The threat is contrasted in the some differences in socio-culture. However, it is recommended that KeepCup expand their business to German by exporting their reusable cups because of these findings regarding the strengths, weaknesses, opportunities and threats for expanding to German.

This business report will provide relevant and empirical information on the political, economic, sociocultural, technological and legal environments through out SWOT analysis that impact KeepCup for expanding their business to German.

2. Political Environment
Political Environment consists of the government system, stability, government relation and certain political policies. (Bartol and Martin 1998, 71) 2.1. Government Stability
German has been using democracy ideology from over 60 years ago. This makes a recently, democratic lifestyle and culture is embodied and implemented by every citizen in German (Make It In Germany 2013. The supreme authority in German is divided into 16 Länder and one central state. This kind of political government defined as a Democratic Federalist. Moreover, the stability of the government of German provides a suitable place for operating a business. 2.2. Government Relation

International relation is important for a big nation such as German. German has been joining six different international organization, which are European Union (EU), United Nation (UN), North Atlantic Treaty Organization (NATO), OSCE, World Trade Organization (WTO) and International Monetary Fund (IMF). There are two organizations, which are maintaining about trading relationship and the economic stability, WTO and IMF. With joining these two organizations, German has a good relation in politic issue particularly in the foreign or international trade. German has been joining WTO since 1995, this makes recently German opens their economic for foreign investment (Tatsachen Ueber Deutshland 2013). 2.3. Analysis

According to the stability of the government of German, also the friendly and global political relationship, German is a good place to open a business. These two Political Environment characteristics provide an opportunity for KeepCup because German has a suitable Political Environment for opening business.

3. Legal Environment
Legal Environment contrasts about two major laws, business law and labor law (Bartol and Martin 1998, 71). 3.1. Business Law
German has a low level of corruption. This country ranks 13th within least...
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