KeepCup Analysis

KeepCup Company is an Australia private phoner, who ar workss in exportation utile cups. KeepCup head office, which in Melbourne is recently exploring for the feasibility of introducing their product overseas to German. This strain compensate countenances a business summary and consideration about the orthogonal environment in German. The purpose of this business report is to facilitate KeepCup in order to help the company to occupy decision for boom outing their product exporting to German.The observation forget go through on the political, economic, socio-cultural, technological and licit environment of German. Besides reporting the environment condition in German, this report raise analysis about the extraneous environment in congeneric 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 blowup will be based on the SWOT analysis.The report install that expanding the product distribution to German is a effectively decision. The opportunities regarded to Germans external environment supersede the threats. The rapid growth in fresh technology, super economic growth, the socio-culture, to a fault the political environment in German can be a convenience sort for the company to race in German. Also the similarity mingled with Labor and Business righteousness in German and Australia atomic number 18 considered as opportunities for KeepCup.The threat is contrasted in the or so 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 instruction on the political, economic, sociocultural, technological and legal envir onments through out SWOT analysis that wedge KeepCup for expanding their business to German.2. Political Environment Political Environment consists of the administration system, perceptual constancy, political relation relation and certain(p) political policies. (Bartol and Martin 1998, 71)2.1. establishment StabilityGerman has been using acres 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 Lnder and one central state. This kind of political government define as a Democratic Federalist. Moreover, the stability of the government of German provides a suitable place for operating a business.2.2. Government Relation global relation is serious for a big nation such as German. German has been link six opposite inter national organization, which be European Union (EU), joined Nation (UN), North Atlantic Tr eaty Organization (NATO), OSCE, World backup Organization (WTO) and International Monetary Fund (IMF). There are some(prenominal) organizations, which are maintaining about trading relationship and the economic stability, WTO and IMF. With association these devil organizations, German has a goodish relation in politic theme 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. AnalysisAccording to the stability of the government of German, similarly 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 source business.3. Legal EnvironmentLegal Environment contrasts about two major integritys, business law of nature and labor law (Bartol and Martin 1998 , 71).3.1. Business equityGerman has a low level of corruption. This country ranks 13th within least corruption country based on the Corruption Perceptions 2012 (Transparancy International 2012). Open international businesses in German are free from teething restriction in the daily business. Overall, the business law in German creates no different or contrast between the local company and foreign company investment or the realised company. Moreover, the reliable laws make the companies able to plan their investments in the strong way (Germany Trade and Invest 2013).Apart from it, the business law in Australia has their own Guidelines and effective and consistent decision. The aim of government regarding to the Guidelines is to give a convinced(p) impact to the business conduct for companies in Australia (Australian Government 2011). Similar with German, Australia withal reason as one of the world least corruption by 2012 (Transparancy International 2012). Australian Governmen t is concerned about corruption. Moreover, community in Australia also considered corruption as a harmful action for the environment (Bowman and Gilligan 2009, 438-452)3.2. wear LawThere are terzetto main points according to similarity of the Labor Law in German and Australia. First of all, the legal functional time for employee in German is eight hours per day (Liliane Jung 2011). Compared with Australia, which is eight hours per day, two countries get the equivalent legal functional hour (Work Place Info 2012). Secondly, the minimum working age in German are strictly applied by the government for employees in German. Hiring children for working, is forbidden by the law as stated in the YWPA (Young Workers Protection Act).Children under 15 years old are not allowed to work (Liliane Jung 2011). The legal age for working in Australia is also above 15 years old (Lawstuff 2010). This makes there is no different between the legal working age in German and Australia. Thirdly, th e working conditions in German are considered as a safe and make working environment. The companies in German take a crap a great indebtedness for a particular large social and community. In order to remedy the working conditions in German, health and safety are considered (Encyclopedia of The Nation 2012). akin with the working conditions in Australia, health and safety are required by the government as stated in National Employment Standards (NES) (AustralianGovernment 2009).3.3. AnalysisAccording to the similarity about the Business Law and Labor Law in German and Australia, both of the laws provide good opportunities for KeepCup in order to expand their business to German. KeepCup can be well adapted to the Germany Laws and regulations because they don not need to totally adapt with the laws in German.4. economical Environment Economic environment take ons the stability of business cycle, exchange score and economic trends which include economic trends and growth (The Bu siness and The Technological Environment 2008, 58-80).4.1. Inflation RateIn July 2013, the pomposity treasure of Germany is at 1.92 percent. Since 1950, the inflation rate of Germany has been fluctuating with average rate at 2.49 percent until 2013. With this percentage of inflation rate, German can be considered as a good place for investment. The current inflation rate shows that the economic condition in German is in a good condition (Trading Economics 2013).4.2. Economic Trends and GrowthGerman is one of the heavily export countries in world (Trading Economics 2013). Since 10 years ago, the GDP of German has been fluctuating. From 2004 savings bank 2008, the GDP of Germany was in positive number. Then in 2008 until 2010, there was an utmost(a) decrease in the GDP of German which reached a peak at approximately -4.0. However, since 2010, the GDP of German has been handout fluctuate at the positive number. Apart from it, recently the government of German is trying to maintain stability of GDP of Germany in the positive number. So, it can be a good condition for foreign investment in German, because they can make much profits if the economic condition in German growth (Randow 2013).4.3. AnalysisIn conclusion, both the inflation rate of German and also the economic trends and growth in German can be a good opportunities for foreign company to invest in German, particularly for KeepCup to expand their business to German.5. Socio-cultural EnvironmentSocio-cultural environment shows how the determine of society influenced the working conditions (The Hofstede Centre 2013).5.1. The Cultural Dimension of Hofstede (The Hofstede Centre 2013)5.1.1. office staff DistanceAustralia and German have a similar index of Power Distance. both(prenominal) countries are considered as Low Power Distance countries. This culture creates a good leadership style between the managers and employees. Participative and democratic leadership are suitable for these two countries. D ecentralized decisions making creates a good collaboration between team members and the leader.5.1.2. Individualism vs CollectivismAlthough the Individualism Index of Australia and German is slightly different, but both countries are considered as individualism country. Australia is to a greater extent individualist than German, it is considered as passing individualism country. Here people are more than focused on their self-skills and individual performances. Moreover, Germany people are slightly more prefer to work as a team rather than working as an individual because the individualism in German is not as high as in Australia.5.1.3. Masculinity and Femininity Both Germany and Australian are considered as masculine. From the business point of view, people in both countries are more focus on performance in working and always try to do the best. Furthermore, with the masculine culture both people from these two countries are considered as hard worker.5.1.4. Uncertainty AvoidanceA ustralia and German have different level of uncertainty neutraliseance. Germany can be considered as risque Uncertainty Avoidance, whereas Australian is medium uncertainty avoidance. With the certain laws and legal policies in German, shows that Germany want to creates certainty by providing details and avoid risks. In contrast, Australian likes to try new things. People sometimes like to take a risk for creating a strategy.5.1.5. Term of OrientationGerman and Australia have the same term of orientation which is Short Term Orientation. In business point of view, both countries are using fast strategy and have a measureable payback. They also make a decision based on the recent condition. Logical thinking is using more than reach the consensus.5.2. AnalysisThere are triple similarities and two differences between Germany and Australian socio-cultural based on Hofstede Cultural Dimensions. Germany and Australian have the similarities in Power Distance, Masculinity and Term of Ori entation. In contrast, German and Australian have the differences in individualism and uncertainty avoidance. However, these socio-cultural dimensions can be opportunities for Keepcup to invest in German, because the similarities are outweigh the differences.6. Technological EnvironmentThe technological environment reflects the current technological groundwork and communication technology (Mosley, Pietri, and Megginson 1996, 82)6.1. Technological Infrastructure German is going fast in improving their infrastructure since last decade. Based on Germany Trade and Invest, now German is the second best quality of infrastructure in the world, because German has some good logistic infrastructures. First of all, is the porthole of Hamburg which the second largest port container in the world. Secondly, are the over 250 inland ports which are providing an efficient logistic distribution. Lastly, is the Frankfurt Airport which is the world seventh largest freightage airport and ninth larges t passenger airport (Germany Trade and Invest 2011). These three logistic infrastructures creates a good opportunities and simplicities for foreign company to distribute their products to German.6.2. conversation NetworkCompared with Australia, German also has an ultra high speed internet with reference optic mesh and also wide range of mobile coverage. These red-brick communication network make the economic transactions and communications to national segment or even international segment easier and more efficient. (SAG Germany 2013).6.3. AnalysisThe civilise technology infrastructure and communication network in German provide an opportunities for KeepCup to do investment in German. The simplicity of the logistic distribution makes KeepCup easily to distribute their product among German. Moreover, the wide coverage area for communication network in German provides and easy way to communicate between client to the company or company to company.ConclusionsBased on the SWOT analy sis above, is highly recommended for KeepCup to expand their business to Germany. The strengths of KeepCup are greater than their weakness. This condition makes KeepCup can be easily to invest in German in this period of time. Moreover, it also supported by the opportunities that extremely dominate the threat that KeepCup will encounter. Is highly recommended for KeepCup to start their investment to German first of all with looking for certain local caf to cooperate with them regarding to sell their reusable cups.9. Recommendations According to the weaknesses and the threat analysis, KeepCup will not be impacted with their weaknesses and threat in German. This happened because the strengths are overcome the weaknesses of KeepCup and the opportunities for KeepCup are outweigh the threat that the company will contend. These conditions provide three recommendations for KeepCup according to their plan to expand their business to German1. KeepCup should expand their business in this per iod of time.2. KeepCup have to eliminate the weakness overcoming them with their strengths.3. KeepCup need to avoid the threats by outweighing them with their opportunities.