Biotechnology in Southern Germany

Biotechnology in Southern Germany

When thinking about bringing new business into a new country there are certain issues a company will have to look at. Finding the right location, policies within that territory, and any government regulations that will pertain to your industry. Our company is a biotechnology, which is going to break ground in southern Germany. Southern Germany, which includes most of Baden-Württemberg, much of northern Bavaria, and portions of Hesse and Rhineland-Palatinate, Bavaria is a growing area for biotechnology. European ranking tables put the Bavarian capital in fourth place, after Cambridge, Copenhagen and the Basel/Zurich cluster in Switzerland. In Germany, Munich leads the biotech field. (muenchen, 2012).

It is highly recommendation to set forth a plan to enter this market. Competitors are zero to none as of right now in this industry. This will be attractive to investors since it is a promising market. Munich is the capital of the state of Bavaria and is located just a few hours from the sun-drenched cafes of Italy and the glacier-encrusted peaks of the Alps. With more than 90 biotech companies, Munich hosts the largest cluster of such firms in Germany, according to biotechnologie.de. "Munich is definitely the most advanced in the biotech field," says Mannhardt. Among its prestigious universities and research institutions are the Ludwig Maximilian University and the Max Planck Institute for Biochemistry (MPIB). (newscientist, 2007). With such advancements there is opportunity for training and development. Once there is a well-trained staff there is room for a larger profit on return. Just as much as we spend in training we should expect back in profit.

Starting as direct foreign investor with a solid platform would be the recommended route to take. By doing so once the company has full success all profits will remain in house.

Political Environment

Germany sets itself aside from other European countries by speaking the common language as the United States. Culturally it has also made advancements, which will allow for easier business affairs. The United States is committed to preserving peace and security in Europe, and U.S.-German relations have been a focal point of U.S. involvement in Europe since the end of World War II. Germany stands at the center of European affairs and is a key partner in U.S. relations with Europeans in the North Atlantic Treaty Organization (NATO) and the European Union. U.S. policy toward Germany is to preserve and consolidate a close and vital relationship with Germany, not only as friends and trading partners, but also as allies sharing common institutions. The United States recognizes that the security and prosperity of the United States and Germany significantly depend on each other. The bilateral political, economic, and security relationships are based on close consultation and coordination at the most senior levels, and the United States and Germany cooperate actively in international forums. (stategov, 2012). With certain policies in place it makes matters more amicable between nations to engage in business.

Macroeconomic situation and perspectives

Germany has been shielded from Europe's economics crisis until now, it is being reported that there has been a slow down in production, which is starting to be apparent in Germany's economy. This will not gain the confidence from many investors if it should continue. Although biotechnology is a growing and well-established field no one wants to invest in a risky market. Germany, Europe's biggest economy, no longer appears immune from the crisis engulfing some smaller members of the EU. (Moneycnn, 2012). Businesses are being conservative in unsteady markets since they have too many examples on failed or near failed ventures, i.e. the automobile industry.

Business culture

Business ethics and business culture will vary from one company to another; now take into account the differences from one country to the next. These differences if not worked out could cause issues among partners. In the field of biotechnology there is a lot of research involved and long hours developing