The Technological, Political, Legal, and Economic Environments
Political
Democracy is a feature of Germany. Under Grundsegetz, which was created in 1949, it operates under a political system. The essential framework of German government is reflected in the constitution, which also establishes the principles that the country should uphold. Additionally, it is the principal authority that issues licenses to companies.
Economic
Germany cannot produce its final goods because it has a scarcity of raw materials. It is one of the few places where Germans can get energy and has lignite-burning power plants. The nation doesn't have many processing factories because it imports approximately two thirds of its energy. The service industry generates 70% of the Germany GDP. Most of the products in the country result from engineering fields such as automobiles, machinery, metals, and chemical goods. They, therefore, present a good opportunity to establish MNC branch for winter sports gear in the country.
Technological
Germany encourages scientific and technological development in various manners. It has some of the independent research centers and contributes to an industry that supports research and development. Ministry of Science and Technology coordinates priorities of the national programs in the country. Germany’s position in EU has been noteworthy in science and technology components, and therefore, a plant manufacturing winter sports gear would be appropriate. Germany is also an advanced country and spends a lot of money on research and development with emphasis on sports culture (Simpson, 2014).
Legal
Law enforcement is divided into three levels in Germany, federal, state, and local. In studies regarding political and legal stability, foreign business enterprises classify Germany as a country with good performance, second best after the United Kingdom. Legal stability of Germany draws foreign investors, thus benefitting from entrepreneurial activities in state.
Plan for Social Responsibility and Sustainability
Social responsibility is increasingly confronted with the question how to make a better and a happier society. Research reveals that one of the ways to do so is through taking less and giving more. Some of the three European Nations that were in top 20 in developing corporate social responsibilities include Denmark, Sweden, and Finland. It is important to adopt the social responsibility plan in Germany with the best legal framework, as worked on by European Nations (Institute of Medicine (US), Roundtable on Environmental Health Sciences, Research, and Medicine, 2007). There needs to be a legal obligation to the businesses that make billions of profits in their revenue.
Germany Profile in Comparison with the United States
In all the countries, the fact that every individual is unique implies that all are unequal in the degree in which power is exerted. According to Hofstede theoretical framework, the individualism dimension establishes that the degree of interdependence maintains among members of the society. The U.S. has a fairly low score on Power Distance (40) in combination with 91 cultures. Germany, on the other hand, is decentralized and supported by strong middle class with power distance of 35. It is a society with a true focus on the relationship between children and parents.
Recommendations for Cross-Cultural Communications and Negotiations
Communication with one another is often taken for granted. Similar to everything that is learned and making interpretations, the creation of assumptions and formation of decisions are based on the cultural upbringing. How people communicate in a multicultural environment can set the tone for the establishment of a workplace culture. In doing away with communication challenges that may arise in Germany, it is important to promote the conditions capable of supporting customer and business demands. Performing employees signify creation of an environment that encourages diversity while handling the pressures of management at the same time. Several resources provide tactics for communication in a cross-cultural environment. While interacting with others; it is important to keep an open mind, have knowledge of cultural background, and listen actively and watch non-verbal communications.
Entry Strategy
The most successful entry strategy would be offering innovative sports gear products that feature high quality and items designed in modern styles (Hardman & Naul, 2005). Germans are responsive to highly technological U.S. goods such as sports items. The markets of the former are decentralized and are characterized by diverse interests. The strategy used in entry needs to take into account the regional differences as part of the market presence. There needs to be experienced representation, since the competitors are domestic.
Political Risk and Government Relations
International firms are becoming more competitive and profitable with many risks accompanied to internationalization. Some of the major risks that may emerge from the political situation of MNC operation in Germany include terrorism that qualifies to be a worldwide concern. It can create barrier in the survival of MNC.
Plan for Motivating and Leading Workers
While managing human resources, there is need to keep motivation in mind, as it makes up one of the fundamental functions of management. It is the ability to inspire and reward a worker. Therefore, remuneration is the main element of motivation process that should not be easily forgotten by a manager while creating a list of motivators. Employees assigned to work in Germany should be adequately rewarded in terms of remuneration to boost their moral and performance (Simpson, 2014). The plan would employ Hertzberg’s two factor theory that implies that there is need to improve both hygiene and motivator factors for a happy and most productive workforce. It emphasizes that workers need to feel appreciation and support as an incentive.
Plan for Selection of an Expatriate VP
Selecting candidates for international moves is more critical than ever for companies being established in new countries. Many organizations are struggling to select assignees to implement their best practices and choose the right candidates in the process to realize their strategies. While selecting an expatriate in Germany, there is need to consider cultural adaptability in the assessment process. Perhaps, it is more important to incorporate effective tools to bridge the gap between talent management and selection process.
References
Hardman, K., & Naul, R. (Eds.). (2005). Sport and physical education in Germany. New York, NY: Routledge.
Institute of Medicine (US), Roundtable on Environmental Health Sciences, Research, and Medicine. (2007). Global environmental health in the 21st century: From governmental regulation to corporate social responsibility: Workshop summary. Washington, DC: National Academies Press.
Simpson, C. V. J. (2014). The environment for business in Germany. Civitas: Institute for the Study of Civil Society. Retrieved on December 21, 2017 from http://www.civitas.org.uk/pdf/BusinessInGermany.pdf
