Doing Business in Europe

Doing Business in Europe

A M Bonin

Jones International University

October 19, 2013

Introduction

In this report four locations were researched; London, Paris, Munich and Budapest; as to the feasibility of choosing which location I would advise the CEO to open a small European corporate office. The company's new location would house 10-12 employees three of which will be expatriated from the US. All other employees would be hired locally. The corporate office will deal with the regulatory, the legal affairs and the local sales strategies.

After in-depth analysis of the four locations' research, Munich Germany would be my recommendation to the CEO

This report was created to provide information to the CEO on the findings of my research in which our company will open a small corporate office in Munich.

There were many factors to consider when choosing the correct location. The company will expatriate three employees and the transition the employees and their families undergo should be taken into consideration. We will discuss the culture, language barriers and quality of life associated with the proposed location. This report will also look at the infrastructure and the reasons I have chosen Munich for the corporate office.

Executive Summary:

Germany has a strong reputation within the Biotechnology field. Munich is considered to be the top location in Germany for the Biotech industry. Germany has approximately 385 medical biotech companies which employ about 36,000 people. Munich has organizations which are currently involved in the research of small molecule drugs to treat specific cancers and inflammatory diseases in the elderly. This is one main focus our company is looking into opening a corporate office. Germany's health care sector is a highly attractive market with significant growth opportunities. A steady increase in life expectancy levels has resulted in a rise in chronic and age-related illnesses. (German Trade, 2013). With its many colleges and universities comprised of research for biotech and life sciences two major universities located in Munich, LMU Munich and TUM were designated "Excellence Universities by the Federal Government." Munich fosters an environment conducive for research which is conducted at the highest level. Political and financial incentives are encouraged, and this would be an ideal location due to the investor-friendly climate.

According to the Mercer's 2012 Quality of Living Survey, Munich was ranked number fourth worldwide, while Boston Massachusetts was ranked 35th on the scale. This would be an excellent location for our four employees' expatriating from the US, because both German and English are spoken throughout the country. Within the school systems students are taught both languages, a major plus for any employee who will have children attending the Munich school systems. "Munich is a modern cosmopolitan city with a big heart and a long heritage. Though Munich may seem to be a busy, easygoing community, it is still tranquil." (Munich Traveler). Munich looks to be a very welcoming community for foreigners. Catholicism seems to be the predominant religious faith in Munich, but also celebrates various other religions such as Christianity, Islam and Judaism. Church and state are still closely tied, and people have the option of declaring which religion they can put on their tax forms. If a person does this, they will have a religious tax extracted from their income. Since Boston Mass is considered a historical city it may seem to mimic similar qualities that Munich has, and would be an easy transitions for employees and their families to relocate to.

Another area to be addressed is the ease of doing business, which is based on the international survey "Ease of doing business index." This index ranks economies from 1 to 185, with the first place being the best. A high ranking (low numerical number) means that the regulatory environment is conducive to business operations. The index averages the country's