This report shows that AAM will be entering the German market and will not be entering the markets in The Netherlands and Switzerland. The data and analysis in this report shows that Germany offers many opportunities for the development of AAM. Germany's agricultural profile presents the best outlook for AAM as agricultural profits are rising with a low risk environment. This country is also very supportive of foreign investment. The Netherlands and Switzerland were not chosen because they did not meet the criteria set by AAM, and would be inappropriate for the product. Direct export appears to be the most effective method of developing and adapting an international strategy as it allows lower costs to AAM, and be able to meet the demand of customers. This strategy enables AAM to have the entire control of production and management quality and intellectual property. AAM are confident, this plan will provide growth in revenue and profits.
[...] This shows they are always after something better and makes quality of the upmost importance to the German people. The interlinking of the BMBF (Federal Ministry of Research and Education) programs enables small businesses to gain access to pioneering technologies (IIG, 2007) This would be quite appealing to the company as they might even gain insights on how to improve the product Legal As Germany is part of the European Union, its laws must comply with the conditions of the community legislation. [...]
[...] The product is durable, low-weight, simple and safe to assemble and operate, while also being reliable and with a lower cost of ownership through efficient design features. Agricultural equipment is large and heavy, and although our design aims to minimise these issues, it is still relatively cumbersome to transport. Quality control and intellectual property management are strong values of company. Manufacturing will take place in Australia and will be exported to the country of choice, transported by ship because of the size and weight of the product. [...]
[...] Approximately 20% of the population were born overseas. It is also ranked 9th in the world on the Human Development Index Technological Engineering, pharmaceuticals, chemicals, tourism and banking are Switzerland's most important industries. Service occupations account for 69% of the labour force, with industrial jobs coming in second with 26%. Most global trade is in the form of services or tertiary industries, and most manufacturing/secondary industry trade is in high-tech sectors, but with economic growth peaking at in 2000 and slowing since (OECD, 2007) Legal Switzerland's legal system is unique in it's method of involving the population at many stages in the legislative process. [...]
[...] The reality shows that Dutch authorities have placed importance on declining trade's taxation so as to welcome foreign investments such as products (corporate tax rate) and capitals (dividend tax) to name a few. Notably, agricultural equipments do not require a particular policy of importation from Australia to the Netherlands (European Union 2007) Environment: The Dutch management style focus on opened dialogues, entrepreneurship, with a high priority for multimedia communication technologies (Australian Government 2007). The low price value is considered as the main attribute of purchase (FITA 2007), resulting in an important interest to realize economies of scale in agricultural machineries' trade. [...]
[...] Germany's government also has a strong agricultural program in place to help out their farmers compete against other east European countries Economical Germany is currently experiencing a rather slow rate of GDP growth at the moment with growth at only this is due to weak domestic consumption and low investments. Unemployment remains quite high in Germany with being unemployed and the inflation rate is remaining a quite steady 2%. The GDP for agriculture is staying at Germany has quite a FDI as the government heavily supports it, with the country being ranked 123/141 in the world (FITA, 2007). [...]
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