Module5-2MilestoneTwo-ZacharyHiggs.docx

INT 220 Business Brief Template
Course Project

Overview
SNHU baseball bat company will have a growth potential if it expands its operations into global markets since it will not operate at a loss, unlike when it is a Domestic business. This potential in the company’s growth will be realized through the expansion of its operations into the global markets. This brief will highlight the significance and reflections of the SNHU baseball bat company expanding its operations into the international markets. It will also provide the company’s leadership team with vital information concerning the considerations and the drivers for global expansion that will allow them to decide if the expansion is advantageous to the company. (Worm & Tittensor, 2018)

Section One: Drivers for Global Entry

Country Selection: I have carefully chosen the German market as the company’s potential global market. By expanding the domestic business operations into global markets, the SNHU baseball bat company will have the benefits such as a competitive advantage over competitors, diversification in the workforce, access to new markets, and an increase in foreign investment opportunities.

Purpose of Global Expansion: Globalization refers to the interconnection between the world economy, the people, resources, and the government. It is the creation of an interconnected economy through the movement of goods and services throughout the global markets from one point to the other. It has been brought by the improvements in technology, transport and communication means. For a company to successfully expand its operations to the global markets, it must set a strategic plan. It means that the company must have its priorities, aims, and the necessary resources to ensure that the set goals are met (Worm, & Tittensor, 2018). The company’s marketing strategies, human resources, and supply chain management should also be included in the strategic plan.

Business Impacts of Global Business: Unlike the domestic market, operating in a global market has some challenges, such as communication challenges due to the language barriers and cultural differences in different regions. It is because it is easy to communicate with employees or customers and to conduct market researches while in domestic markets (Hernández-Pozas, 2018). By expanding into global markets, SNHU baseball bat company will have to predict the market cycles of different regions, and therefore this will be an advantage for them to have growth opportunities when the other market type is falling. This is the impact of having multiple markets and the ability to equalize all of these market cycles.

Societal Impacts of Global Business: Globalization has social impacts such as environmental protection, infrastructure advancements, and fair trade and labor practices. For instance, the societal impact of expansion into the German market is the infrastructure. This is because its European location is considered to be the critical transportation corridor supporting both the east/west and the north/south routes through land and water means. (Bevanger, 2018)

Cultural Considerations for Global Business: The differences in cultures are the most vital factors in domestic and global markets. It is because the actions involved in the domestic markets must be against or even offensive to the global market rules. For a successful expansion into the international market, communication methodologies should be considered as an essential aspect. The SNHU baseball bat company should therefore comply with the legal considerations of the global market economy. It should be able to understand and adhere to the set laws, regulations, and tax rates of the market economies that it runs its operations (Bevanger, 2018). Expansion of operations into the global market would increase the company’s supply chain and increase the opportunity to raw materials at a relatively low cost. It will also increase the diversification in the company’s workforce and increase its chances of investing in foreign regions.

Section Two: Market Profile
Complete the tables below to use data and statistics to support your comparisons. Words, phrases, and numbers should be used to complete the tables, not complete sentences.

Cultural Profile

Category

United States

Germany

Commonly Spoken Languages

English

German

Commonly Practiced Religions

Christianity

Christianity

Power Distance Index (PDI)

40

35

Individualism Versus Collectivism (IDV)

91

67

Masculinity Versus Femininity (MAS)

62

66

Uncertainty Avoidance Index (UAI)

46

65

Long-Term Orientation Versus Short-Term Normative Orientation (LTO)

26

83

Indulgence Versus Restraint (IVR)

68

40

Political and Economic Profile

Category

United States

Germany

Political System

Federal Constitutional Republic

Federal Parliamentary Republic

Current Leaders

Joe Biden, President

Frank-Walter Steinmeier, President

Economic Classification

(G7) Major Developed

(G7) Major Developed

Economic Blocs Impacting Trade

Member of WTO and NAFTA

Member of WTO and EU

Gross Domestic Product

$19,490,000,000,000

$4,199,000,000,000

Purchasing Power Parity

$59,800

$50,400

Gross Domestic Product Per Capita

$59,800

$50,800

Human Development Index

0.92

0.94

Gender Development Index

0.991

0.968

Gender Empowerment Measure

0.762

0.832

Human Poverty Index

0.924

0.936

Due to various cultural diversity, a few of the significant distinctions between the U.S. and Germany must be noted: German business is often centered on brand attributes presented in a reasonable tone. In contrast, American business is centered on product advantages expressed in a more casual tone. Because the German market is much more corporate, marketing techniques must use official tones in an impersonal approach that attempts to enlighten customers rather than the traditional American casual, friendly methodology. Furthermore, Americans are more concerned with beauty, accessibility, and the brief enjoyment that a commodity may bring than Germans, who are concerned with performance and consistency. Germans place a high value on timeliness; tardiness is regarded impolite, but Americans are regularly late, which is considered to be appropriate conduct (Breitbarth et al., 2017). Americans appreciate their boundaries, but Germans tend to stand nearer together throughout chats and are not afraid to confront them. German networking events, interactions, and events are more officially organized, precise, and concise, whereas Americans are more casual. As a result, a comprehensive marketing approach would consider regional variations in Germany, the requirement for excellent quality, competitive price, and expert product representation pre and post purchases.
The American Government is a Democrats Federal State founded on the constitutional, and President Joe Biden presently governs it. The United States government is made up of three sections: legislature, executive, and judiciary. The legislature creates regulations, the executive branch implements them, and the federal court judges them. Germany is a Federation Parliamentarian State, with legislative authority delegated to parliament and a designated representative made up of regional powers (Godfrey, 2017). Germany is notorious for having complicated administrative, legislative, and taxation frameworks. As an Eu, Germany has an extra layer of standards and procedures that must be studied and followed. The United States and Germany are both categorized as big industrialized countries, and both are among some of the largest economies in the world. Germany’s primary exports are autos, machines, and metal, and it has low and stable inflation.
Furthermore, Germany is among the significant trading marketplaces in the Euro Zone, with high employment expenses and restrictive labor rules. The U.S. produces investment and commercial products, machines, foodstuffs, and popular culture products such as digital content. The two governments have a long-standing economic relationship, and the German market is enticing to U.S. business organizations since it has a massive market. While the tax burden in Germany is significantly more incredible, the employment market is resourceful and knowledgeable, and business obstacles are known to be associated with E.U. policies and guidelines. Besides, Baseball is presently a small game in Germany. Thus, there is an ample opportunity for increased market share through specialized business models. In contrast, Germany is home to about 34,000 army personnel (Kang, 2020). Concise latest projections of non-military American support workers and other U.S. nationals living in Germany were unknown; however, according to German authorities, more than 100,000 Americans lived in Germany in 2013.
As per exporting estimates, Germany is among the world’s leading economies and the E.U.’s most substantial consumer base, making it significantly appealing to U.S. enterprises seeking growth. Since Germany follows the E.U.’s regulations and limits, economic difficulties are comparatively modest. Globally, there has been significant growth in harmonizing legislation and requirements to encourage international trade. Because the United States and Germany are both mature economies and members of the World Trade Organization, policy and institutional issues are relatively minimal. Because the SNHU Baseball Bat Company has already been compelled to conform with GDPR, strategic alignment with the E.U.’s information security rules is seen as a non-factor. Also, the United States and the European Union have had regulatory arrangements for far more than two decades, which helps in compliance and promotes speedier and more secure commerce (Knop, 2019). The high price of the products in Germany is countered by a large workforce and a qualified labor population. Germany is quite comparable to the United States in so many aspects, particularly in that requirements and needs vary by area; an effective growth into the European market ought to take these geographical preferences into account when developing marketing tactics.

Section Three: Market Considerations
Complete the table below to support your explanations using current exchange rates.

Exchange Rates

Category

The U.S. Dollar

Germany

Exchange Rate

1 USD

0.82 Euro

Legal and Regulatory Considerations
As of Wednesday, June 2nd, 2021, the current exchange rate is 1 USD. Dollars are comparable to 0.82 Euros; therefore, $100.00 is comparable to 81.73 Euros, and 100 Euros are comparable to $122.19. Currency fluctuations help in determining a nation’s or collective’s fiscal viability, like in the case of Europe, and are impacted by elements which including rising prices, borrowing costs, government stability, and, as shown in previous quarters’ domestic and international health disease outbreaks.
Administrative and logistics factors for functioning in the German market must adhere to governmental legislation. The employment act in Germany requires at least three weeks of holiday each annually, a regular work time limit of 8 hours, six weeks of standard wage continuance for illness, and considerable worker protections regarding arbitrary dismissal. Because of cultural variations between the United States and Germany, organizational culture is an essential concern (POUSHTER & MORDECAI, 2020). German company governance is extremely official; thus, to be a good manager with German staff, responsibilities, obligations, and precedence must be precisely articulated. Germans often conform to predefined regulatory requirements, like communicating directly, and are particularly attentive to time constraints.
Selling, Contract manufacturing, Collaborating, and Systematic Agreement, Consolidations, and Greenfield Investments are conventional techniques of entering overseas markets. Low prices and relatively safe options of admission are preferred centered on German culture and the fact that baseball has not been a widely famous attraction. Export will be the preferable option for entering the German market since it allows for faster entrance and lesser risks. The downsides of selling are a lack of accountability and a lack of local expertise. Licensing and franchising are the two modes of entrance that offer the benefits of quick access and minimal risk. The downsides include compliance with government regulations, less management, and the possibility of the licensee becoming a rival. The third alternative is to form a partnership or a bilateral agreement (Fedorova, 2017). This option offers the benefits of lower investment financial risks and the impression of becoming a local organization. Consequences include corporate integration challenges and increased entrance fees for export and licenses.

References

Bevanger, K. (2018). Global biodiversity threats and development trends. Global Biodiversity, 1-32. https://doi.org/10.1201/9780429487743-1

Breitbarth, T., Kaiser-Jovy, S., & Dickson, G. (2017). Global golf business and management. Golf Business and Management, 2-19. https://doi.org/10.4324/9781315665269-1

Fedorova, A. (2017). Labor relations trends in employee evaluations: Country to country comparison. https://doi.org/10.15405/epsbs.2017.02.12

Godfrey, J. (2017). Events, situations, advantages and disadvantages. The Business Student’s Phrase Book, 49-57. https://doi.org/10.1057/978-1-137-58708-4_7

Hernández-Pozas, O. (2018). Global cultural systems, communication, and negotiation. The Palgrave Handbook of Cross-Cultural Business Negotiation, 117-137. https://doi.org/10.1007/978-3-030-00277-0_6

Kang, J. (2020). International comparison and experience reference for building an innovative country. Fiscal Policy and Institutional Renovation in Support of Innovative Country Building, 72-124. https://doi.org/10.4324/9781351264648-4

Knop, K. (2019). Foreign relations law. The Oxford Handbook of Comparative Foreign Relations Law, 43-61. https://doi.org/10.1093/oxfordhb/9780190653330.013.3

POUSHTER, J., & MORDECAI, M. (2020, August 17). Americans and Germans differ in their views of each other and the world. Pew Research Center’s Global Attitudes Project. Retrieved June 2, 2021, from https://www.pewresearch.org/global/2020/03/09/americans-and-germans-differ-in-their-views-of-each-other-and-the-world/

Worm, B., & Tittensor, D. P. (2018). Drivers and predictors of global biodiversity. A Theory of Global Biodiversity (MPB-60), 56-92. https://doi.org/10.23943/princeton/9780691154831.003.0003

Worm, B., & Tittensor, D. P. (2018). undefined. A Theory of Global Biodiversity (MPB-60), 56-92. https://doi.org/10.23943/princeton/9780691154831.003.0003

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