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In this study I will be look intoing the hazard of spread outing the automotive industry from the UK to the Netherlands. I will be traveling through all the necessary stairss that need to be taken in order to do certain that the concern runs good in the Netherlands. The company I chose is Lucardi because it is a really fast turning company within the UK. And they would wish to spread out and I think that Holland is the best state to get down a concern within the European Union.

Netherlands Besides known as Holland is a really little state with a population of 16,847,007 ( July 2011 est. ) million dwellers. The temperate ; Marine ; cool summers and mild winters

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Netherlands economic system is the 16thA largest in the universe with a GDP that is 4 % higher than the EU norm. The Netherlands is located in North West Europe and is bordered by the North Sea, Belgium andA Germany. The Netherlands is a low-lying state, with approximately 25 % of its country and 21 % of its population located below sea levelA and 50 % of its land lying less than one metre above sea degree. However, most of the land country is level and therefore arable. Netherlands economic system is considered to be an unfastened economic system, with minimum intervention from the authorities

The Netherlands benefits from its location and is an active trade spouse with Germany and theA UK. It is besides one of the most visited tourer finishs in Europe and additions foreign exchange through touristry.

GDP – ( buying power para )

$ 680.4 billion ( 2010 est. )

669 billion ( 2009 est. )

696.1 billion ( 2008 est. )

GDP -per capita ( PPP )

$ 40,500 ( 2010 est. )

$ 40.000 ( 2009 est. )

$ 41.800 ( 2008 est. )

GDP – composing by sector

Agribusiness: 2.6 %

Industry: 24.9 %

Servicess 72.4 % ( 2010 est. )

The best characteristic of the Netherlands economic system is its low unemployment rate. Harmonizing to Eurostat, the unemployment rate in the Netherlands is merely 3.3 % ( 2009 ) . This is the lowest rate in the EU. However, about 1.05 % people live under the poorness line.

Age construction

0-14 old ages: A 17 % ( male 1,466,218/female 1,398,463 )

15-64 old ages: A 67.4 % ( male 5,732,042/female 5,624,408 )

65 old ages and over: A 15.6 % ( male 1,141,507/female 1,484,369 ) ( 2011 est. )

Nederlands economic system besides benefits from the presence of one of the largest natural gas Fieldss. With oil and energy monetary values projected to travel up, the Netherlands can anticipate fast paced growing in times to come. All these factors make Holland even more attractive for investors.A

Entering the Dutch market

Knowing how to come in the market is of import particularly in the automotive industry. There are several ways to perforate the market such as utilizing an abroad agent who really start researching and happening out whether it is suited to set up a concern at that place. Another option would be to get down a joint venture with a local auto concern. Holland is non really celebrated for their autos but their adjacent state Germany is this could be a great chance to get down selling the autos in a joint venture with for illustration BMW or Mercedes. These good known auto makers could increase the trade name image. With the automotive industry it is non easy to be recognized because the competition Is excessively high. The cleverest manner to come in the market is to open a venture and transport twosome of autos at that place to advance.

Customers will non easy enter and get down purchasing so an appropriate selling scheme is needed to pull the client. One great manner is to advance with advertizement and engage off locales to give the clients the chance to prove thrust and supply them information about the autos. it is of import to set autos that target different age groups. For illustration for the younger people more clean autos and for the older autos that are comfy and more fuel efficient.

Business Hazard

Hazard can be defined as the unexpected alterations that have an inauspicious impact on a house ‘s hard currency flow, value or profitableness. Hazards can be defined into three different classs: house particular hazard, industry specific hazard and macroeconomic hazard.

Get downing a concern from abrasion in another state may be a batch of clip and money. It is necessary to cognize all the hazards involved before really get downing the concern, particularly when the adjacent state is good known for their high quality autos. But at the same clip it might be an advantage.

The planetary economic and fiscal crisis has led to fall in demand for cars and commercial vehicles in 2009. But that does non needfully intend that the company will lose money in Holland. The demand for smaller autos which are more economical has increased.

To make value, companies need to take hazards, but they try to avoid those hazards that carry no compensation addition. Two companies are rarely exposed to the same hazard. Whenever a company is running a concern overseas, the company is exposed to different classs of hazard such as commercial hazard, fiscal hazard, state hazard and foreign exchange hazard.

SWOT analysis


The autos are low-cost

GDP per household is high

Stable economic system

Cost advantage

Specialist selling expertness



Lack of selling expertness


developing market in Holland

a market that is led by weak rival in Holland


monetary value wars

increased trade barriers

a possible new revenue enhancement on autos

a new rival

new ordinances

PESTLE analysis


The tendency towards ‘more market less authorities ‘ will give consumers and environmental organisations an of import function in supervising the market. The duty of the authorities on environmental and wellness nevertheless leads to a state of affairs that the authorities is more irresponsible but at the same clip the state of affairs is traveling the right way.A ThisA isA alreadyA the caseA with environmental problemsA in theA field ofA H2O, A fertilizerA andA pesticides.

Besides inA the fieldA ofA wellness, theA authorities demands, A the compulsory debut ofA a quality system forA companiesA inA theA foodA industry. However, there isA stillA otherA wellness and safetyA legislationA which shouldA ensureA aA good working environmentA ( Meulenberg, A 1996 ) .


The Netherlands is to a great extent industrialized. The chief industries are crude oil, nutrient processing, refinement, chemicals, metal merchandises, electrical machinery and electronics.

The state ‘s few natural resources include coal, natural gas, and crude oil. A considerable sum of the state ‘s wealth is contributed yearly by fiscal and transit services

Amsterdam is one of the universe ‘s major fiscal centres, and Rotterdam is one of the universe ‘s busiest ports

The Netherlands has a big foreign trade. The chief exports are machinery, chemicals, natural gas, processed nutrients, and horticultural merchandises

Imports include machinery, transit equipment, chemicals, fuels, groceries, and vesture. The chief trading spouses are Germany, Belgium, France, and Great Britain.


Demographic alterations – the population aged 65 old ages and older, in comparing with the per centum of the population aged 20-64 old ages shall increase from 20.8 % to 36.4 % -37.3 % from the period 1990 to 2006-2015 harmonizing to “ Centraal Planbureau ” . Although the diet of aged is reasonably similar to that of the remainder of the population. The energy demand of aged people is somewhat lower than those in younger age groups and the demand for nutrient with higher food denseness is somewhat higher.

One-and two-person families – the per centum of one and two -person families will increase harmonizing to GFK in the Netherlands from 57 in 1986 to 67 in 2000. This tendency towards smaller family, demand for convenience in purchase, readying and ingestion of nutrient will increased. The lower domestic ingestion for individual individual families will excite demand for little bundles.

Better instruction – the consumer of the hereafter is better educated: the per centum of people with vocational or higher instruction in the Netherlands amounted to 31.7 % in 1986 and 41 % in 1995. This tendency in instruction leads to a more informed and critical consumer.

Leisure – the turning sum of leisure clip has an of import influence on consumer behaviour. The figure of portion clip occupations in the Netherlands will increase. One should nevertheless recognize that the turning sum of free clip on consumer equally distrusted. While some consumers have much free clip because there is deficient employment, others in their are map overloaded with work. Typical of the consumer relationship is that the consumer in a assortment of and spend rhythm ended.


Information engineering – the coming of information engineering offers new chances for production, selling and logistics

The Netherlands hosts the largest Internet hub in Europe

The Netherlands is ranked extremely in footings of energy substructure, fresh H2O conveyance, gas substructure and telephone web. It besides ranks among top EU states for the velocity, quality and dependability of its overseas telegram and digital systems, every bit good as its telecommunications web


Prostitution in the Netherlands is legal. Operating a brother is besides legal in Holland but a batch have been closed down due to condemnable activities. But the ruddy visible radiation territory attracts a batch of tourers worldwide.

Another thing that is legal in Holland is coffee stores where they sell soft drugs such as hemp. The Dutch believe that it will cut down the usage of drugs if made legal. And besides to maintain the drug users of the streets.


Several surveies indicate a steady growing of prosperity in western states. For the Netherlands “ Central Planning Bureau ” expect for the period 1991-2015 a growing of private ingestion from 2.0 % to 3.6 % per twelvemonth

The growing outgo on nutrients is somewhat lower estimation, 1.6 % – 2.6 % per twelvemonth. Another of import development in the planetary economic system is more unfastened international markets and the internationalisation of concern, including agribusiness and agriculture. The Maastricht Treaty and the GATT Uruguay Round achieved more unfastened markets for agribusiness merchandises


Holland offers a strategic location in Europe. Many companies have already established their concerns in Holland and have succeeded. All the companies were non needfully from the automotive industry but were all from different sectors such as manner, logistics, telecom, eating houses etc. this merely shows that so many different markets succeeded and could intend that the automotive industry could win

They have an international concern environment it would non be hard to hold contacts all around the universe. Particularly when the adjacent state is Germany, Germany is good known for their high quality autos. And Lucardi could gain from that

Superior logistics and engineering substructure could be really utile when set uping a concern in Holland. It could salvage the company a batch of money when it comes to logistics because Holland has one of the biggest sea portals of the universe. It would be easy to transport autos off to other continents.


While making this research I have found so much information on making concern in Holland and came to a decision that there is a batch of chance in Holland even though the crisis is still about. The automotive industry in Holland does non hold a batch of competition within the state. But the chief competition comes from Germany but when the right market scheme is used. They could do good usage of the state of affairs.


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