Economic, political, legal and technological environment

Democracy in Germany

Democracy is practiced in Germany. The Grundsegetz political system, which was established by the constitution in 1949, governs the country. The German constitution establishes the essential framework of the government as well as the principles that the country should uphold. The primary source of authority for granting company licenses is the constitution.

Economy of Germany

Germany is unable to produce its completed goods due to its lack of readily available raw materials. One of the few places where Germans may get electricity is from lignite-burning power plants. Germany imports an estimated two thirds of its energy, hence there aren’t many processing facilities there. The service sector gives about 70% of the country’s GDP. Most of the products in Germany result from engineering fields such as automobiles, machinery, metals, and chemical goods and therefore presents a good opportunity to establish MNC branch for winter sports gear in the country.

Technological Factors

Germany supports national science and technology in several ways. It has some of the independent laboratories and leads 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 EU has noteworthy since 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.

Legal Factors

Law enforcement is divided into three levels in Germany; federal, state and local. In surveys regarding political and legal stability, foreign investors put Germany second after Britain. The legal stability of Germany attracts foreign companies thus benefitting entrepreneurial activities in the country (Abishek, 2017).

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 tak8ng less and giving more to the society. Some of the three European Nations that were in top 20 in developing corporate social responsibilities includes Denmark, Sweden, and Finland. It is important to adopt the social responsibility plan with the best legal framework as worked on by European Nations. 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. 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 that scores 35. Germany is a society with a true focus on the parent-children relationship rather than aunts and uncles who are most common.

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 is based on the cultural upbringing (Shina, 2015). How people communicate in a multicultural organization can set the tone for the foundation of a learning culture. In doing away with communication challenges, it is important to promote a work environment that supports customer and business needs.

A productive workforce signifies creating an environment that supports diversity while balancing the pressures of management at the same time (Shina, 2015). 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 modern styling. Germans are responsive to high technology U.S. products such as sports items. German markets are decentralized and are characterized by diverse interests. The strategy used in entry need to take into account the regional differences as part of the market presence. There needs to be experienced representation since the competitors are domestic.

Motivation Plan

Staff is the driving force of every business enterprise and need to be perceived as an inevitable element that influences the success of the business. While managing human resources, there is need to keep motivation in mind and makes one of the fundamental functions of management. Motivation is the ability to motivate 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.

Plan for Selection of an Expatriate VP

Selecting candidates for international moves is critical than ever for companies being established in new countries. Many companies are struggling to select assignees to implement their best practices and select the right candidates in the process to implement their strategies. While selecting an expatriate, there is need to consider cultural adaptability in the assessment process. Perhaps, it is more important to incorporate effective assessment tools to bridge the gap between talent management and selection process.

References

Abishek Puri. (2017). PESTEL Analysis of Germany. Retrieved on 21 Dec 2017

from https://www.scribd.com/doc/137312288/Pestel-Analysis-of-Germany

Shina Neo. (2015). Strategies for Effective Cross-Cultural Communications within

the Workplace. Retrieved on 21 Dec 2017 from https://www.trainingindustry.com/blog/performance-management/strategies-for-effective-cross-cultural-communication-within-the-workplace/ s