Group Paper: International Jeans in Denmark
Company: International Jeans Co. –We Export Jeans-
Country of Focus: Denmark
Assessing the Environment
As we look to take our business, International Jean Company, into the ever expanding global market, it’s important that we choose locations that are going to fit our needs. This location selection cannot just be random, nor can it be done hastily. Our time learning how to be International Managers have taught us that only through careful research into many topics like the Environment, the Geography and Climate, the Culture, and Communication, can we really have the information necessary to make an informed decision. Therefore, we began to look at Denmark, and extensively researched the strengths, weaknesses, opportunities, and threats that lay before us here.
Denmark is a small country with a population of just over 5 million inhabitants. It has achieved a remarkable degree of economic success over the last 50 years or so. With GDP per head of around $56,000 the country ranks fifth in the world and ahead of both Japan and Germany in terms of purchasing power. This remarkable economic success has been achieved by the Danes thanks, in no small measure, to their pragmatic business style.(1) According to the Ministry of Foreign Affairs of Denmark, it has the most efficient distribution system, the best labor regulations, and the second highest GDP per person. According to Forbes.com, Denmark is the best country to do business in. The Danish economy's mix of low inflation and low unemployment along with emphasis on entrepreneurship and lower taxes make Denmark an attractive company to business investors and entrepreneurs. These qualities combined with high marks for innovation and technological savvy lift Denmark to the top of the business world. Denmark is a country that is filled with many small and medium sized, independently owned businesses. Compared to the rest of the European Union, Denmark has a significantly less amount of large corporations, with the exception of Spain. They are known for their top quality production standards. Danish companies tend to concentrate on highly specialized products with a high margin production and rely more on product innovation and design instead of improvements in production technology and price competitiveness. Many small and medium sized companies are able to have major control over their market because they base themselves in small towns and rely on relationships with the community. This makes it difficult for large corporations to take their market share. Although Denmark has a significant amount of independent businesses that support its economy, it is highly dependent on foreign trade and international cooperation. Denmark is made up of a highly developed infrastructure, an advanced telecommunications system and a well-educated and stable workforce. Throughout all relevant levels of the workforce, English is spoken and written at an exceptionally good level. This is a very beneficial factor to the role that Denmark plays in the global market. Geographically, Denmark is in the perfect position for international trade. It is in the center of the Scandinavian countries and has easy access to the Northern and Eastern European countries. International surveys show that Denmark has top ratings in transportation, in all modes, energy, communications, and distribution systems. It is also highly rated in product quality, organizational quality, customer relations, credibility, and social responsibility. Denmark’s legal system is very similar to those of other European countries. Foreign business men may find some difficulty in legalities due to the use of civil law system and statutory law. Unlike the common law system used in countries such as the US, the Danish courts are not limited to the strict lettering of the law, but instead the purpose of the statute. This interpretation is also...