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UNIT 5 assignment 2
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unit 5 assignment 2. this includes everything you must add to your coursework. I have clearly spoken about each aspect of this section. received distinction overall.
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Assignment 2, Unit 5Introduction
In this report I will be talking about Greggs, which is a UK business that already
trades internationally. Greggs has two stores in Belgium and trades in multiple
countries around the world such as the United States, Canada and Australia. The
largest bakery chain in the UK is run by Greggs PLC, which specialises in
sandwiches, savoury goods, and other bakery-related items. The two brands under
which operate these business outlets are “Greggs”, which specialises in takeout, and
“Bakers Oven”, which provides in-store dining. There are in-store bakeries at the
company's Bakers Oven locations. The Greggs stores are dependent on sizable
local bakeries that provide a number of retail locations. The company has outlets all
around the United Kingdom. I need to investigate and recommend one country that
Greggs could target for international trade. I will then need to evaluate the cultural
differences that they may experience.
The two countries that I have recommended that Greggs should trade internationally
are Germany and France. Both of these countries have strong markets for the food
culture and industry.
PESTLE analysis for Germany
Political - Germany is a major player in the European Union and a major player in
world politics and the economy. The chancellor is the head of government and has
executive authority, whereas the president is the head of state. In other democratic
parliamentary systems, the director and prime minister have very similar functions.
Businesses' overseas trade with Germany is unaffected by this. In 2022, Germany's
competitive edge in goods trade was offset by a deficit in services trade. The nation
exported items valued at GBP 1.164 billion, suggesting that opening a Greggs store
in Germany would be straightforward in terms of importing and exporting materials.
Regarding Greggs, there may be a good chance to establish a store in Germany.
Germany boasts a diversified population that values high-quality food items and a
robust consumer market. To guarantee compliance, Greggs should take into account
regional rules pertaining to employment and food safety. Furthermore, recognizing
customer preferences and customising product offers to fit regional markets will help
,Greggs succeed in Germany. To stand out in the market, it's also critical to evaluate
the level of competition and generate distinctive selling propositions.
Economic - In terms of economics, Germany possesses the greatest economy in
the world. However, recent drops in manufacturing orders and industrial production
have sparked concerns. Germany's labour market is strong and robust, with a low
unemployment rate and respectable working conditions for both locals and foreign
workers, notwithstanding concerns raised over the years. Germany has a 15%
company tax rate when it comes to taxes. In all, the company tax rate is between
thirty and thirty-three percent. Income taxes paid by employees range from 14% to
42%. A person is required to pay 45% tax if their income is over €270,501. Workers
are required to pay 5.5% of their income tax as solidarity tax, on top of income tax.
The first €9,744 earned annually is tax-free. The economic aspects can present both
advantages and potential difficulties for a company operating in Germany, such as
Greggs. Germany's solid labour market, which features low unemployment rates and
favourable working conditions, presents growth prospects. Concerns over market
demand, though, can be raised by the recent declines in industrial production and
manufacturing orders. In terms of taxation, income taxes in Germany range from
14% to 42%, and business taxes are 15%. Additionally, the United States, France,
China, the United Kingdom, and the Netherlands receive the majority of exports.
Greggs would gain from this since they could save money and taxes on goods
because the UK imports a lot of goods from Germany.But Greggs needs to know
exactly what the German consumer wants, the local market is like, and how the
competition is. Success will depend on how well their products are adapted for the
German market and how well they follow the law.
Social - Germany is renowned for its remarkable social climate, wealth, health,
lifestyle, and educational system. With an 84 million-person population, the nation
has a lengthy life expectancy of 78 years for males and 83 years for women.
Nonetheless, Germany is dealing with certain socio economic issues. Its decreasing
population as a result of having one of the lowest birth rates worldwide is a major
problem. The ageing population that has been brought about by this demographic
trend presents issues with healthcare, pension systems, and the sustainability of the
labour force. Low birth rates can also affect consumer spending and economic
growth. Additionally, Germany's profits and purchasing power have decreased,
which may have an impact on the economy as a whole. Germany has a
comparatively high cost of living due to high costs for housing, healthcare, and
education. On the other hand, the nation also provides excellent public services, an
effective social welfare system, and a high standard of living. Organisation, diligence,
and aiming for perfection are highly valued in German culture. Aspects of life such as
education, business, and personal accomplishments exhibit these principles.
Technological - In terms of the technological environment, people have chosen
Germany as a significant automobile manufacturing country. They are the world's
, most technologically advanced country. Germany is home to several different
industries, including engineering, design, facilities, health and military technology. It
has a long history of invention and research in these fields. The ICT sector in
Germany employs over a million people and accounts for around 14% of the market.
Legal - There are frequently no legal distinctions between German citizens and non-
citizens regarding investments and business formation because of the nation's
unique legal system. When it comes to employment in Germany, all contracts on the
essential components of the job function and what is needed must be presented to
employees. The German government supports the establishment of all businesses.
Environmental - The environmental factor in Germany Their primary industry, which
contributes about 4.5% of the country's GDP, is tourism. Germany is among the
most popular travel locations worldwide. They had about 39.4 million visits in 2019.
Its history, culture, natural beauty, cathedrals, mountains, and a host of other
attractions make it a singular travel destination. In addition to being a stunning
destination, Germany has significant environmental problems. Global warming is one
of the consequences they face, along with the rest of the world. The most significant
environmental problems they face are those caused by burning coal, acid rain,
deforestation, air and water pollution, and vehicle exhaust. Moreover, the company's
environmental component needs to mitigate the impact of its economic operations on
the environment. Climate, weather, energy management, recycling and garbage
reduction, and carbon emissions are all included in this. Greggs is searching for
methods to reduce its carbon footprint. They are focusing on reducing energy
consumption in their retail and building spaces, optimising their supply chain to
reduce transportation-related emissions, and allocating resources to renewable
energy sources. They are also investigating substitute packaging choices and
promoting recycling in an effort to lessen waste and its negative effects on the
environment. Greggs is dedicated to environmental responsibility and is always
searching for methods to reduce its carbon footprint.
PESTLE analysis for France
Political - The stability of the government is one crucial political component.
Businesses may be impacted by changes in governmental leadership or policies. It is
imperative that companies remain informed about any modifications to trade
agreements or legislation that may have an impact on their business operations.
Taxes are an additional factor. The tax system in France is progressive, meaning
that tax rates vary based on an individual's income level. Companies must take into
account the corporation tax rates as well as any prospective modifications to tax
laws that may have an effect on their bottom line. The rules and legislation pertaining
to labour in France should also be taken into account. These regulations safeguard
the rights of employees, but they also have an impact on labour costs and how
flexible an employer's employment policies can be.
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