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Doing Business in Europe

The European Union is a known trade advantage all around the world. The economic

enhancement it made has created possibilities for companies and economies alike. Synop6 is

one of those strong beneficiaries which have a very strong influence since the Common EU

Legislation. Having this feature, it is and will be imperative for any company of a related

industry to have a reasonable benefit of the EU. The EU offers a very convenient advantage

of trade which reduces tax and also some common formalities when goods cross from border

to border. Having in view of the future prospects of such a venture and growing trade and

economic problems, Synop6 should expand towards Eastern Europe to expand its operations.

It is crucial for Synop6 to prepare for certain precautions before venturing into this

expansion. The reason being, there are major risks that need to be hedged. There are some

internal problems which should be pointed out.

Internal Problems:

The size of the company gives it advantage of being highly responsive to changes in

environment. Although changes at such macro level are very demanding, given the limited

resources currently, including valuable time. As new member countries join the EU, Synop6

will have to research for each country, it being a research company for its clients. But given

the rise of 10 countries of the EU has costed heavily for the company, and will become

difficult for Synop6 to sustain itself. The internal staff is not yet trained to deal with newer

countries, which involves hiring translators, and education about their business practices.

Synop6 must begin from being aware of the environment as much it can from its

limited resources.

Strengths:

• Free trade barriers between EU Member countries

• Growing demand for Synop6 services, result of exploring newer resources


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• Germany being strong clients of Synop6, offering reasonable sustenance to rising

costs

• France is the largest investor among all in the EU

Weaknesses:

• Lack of financial and informational resources, as against the cost of verifying accurate

information

• Oil dependency from Russia, particular resources in high demand are becoming

dependent on fewer sources

• Staff not prepared for newer clients

• Limited resources for handling more clients

Opportunities:

• Venturing into Eastern Europe:

o Cost reduction, finding cheaper sources of raw material in demand

o Greater market coverage, exposure to new potential clients

o Help diversifying for Small businesses (SMEs)

o Poland Importing excessively for Development projects

o Development of Nuclear policy, creating an opportunity for a new resource

with a growing demand, especially from France

o Special Economic Zones (SEZs) in Poland, they offer less trade barriers and

some land to establish as Poland is centrally located in Europe

Threats:

• Limited time, danger of new entrants of the same industry to take up potential clients

• Inherent problems:
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o Political insecurity, countries which have a history of political turbulence

could tend to create hurdles while trade

o Resources dependency, countries may have a dominating export of a particular

resource not easily/cheaply available from other countries

• Risk of not fulfilling client demands

• Non-credible sources of research information, resulting to damaging client services

Suggested Solution:

Given the environment circumstances, Synops6 will have to make efficient use of its

resources to survive and also gain the opportunity. There are a number of opportunities that

could arise from entering Eastern Europe to do business. The major precaution that remains is

the uncertainty of cost while establishing itself further. He objective will only be reached if

the company runs another diversified approach while expanding to the Eastern EU. Ideally

Poland poses to be a strategic location for settling a business because it has links to countries

from all its borders, there becomes a lucrative ground for doing multinational business. The

facility of Special Economic Zone allows a designated area in which manufacturing and

distribution activities on preferential terms. Currently they are 14 of them in Poland. This will

offer immediate exposure to foreign establishments, without incurring the cost of

approaching country to country for clients and sources for required demands.

It is critical to act fast because there will be newer companies which will be looking for

the same opportunity. Acting fast would not only offer immediate new clients but also save

Synops6 from losing potential share of clients within the European Union. Therefore taking

advantage of a possible future hub of the EU’s manufacturing industry.

Secondly, Synops6 still currently has relevant research for emerging countries of the EU,

it is important to bank on them and choose the current most trusted countries to begin their

venture. Currently France is liaise clients with the help of Synops6 (Case Study, Page 297).
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This is a sign of a potential new opportunity for the company. The Czech Republic now run 2

nuclear plants that generate enough power to export it. It can enter the Nuclear Policy from

the Czech Republic to have an exclusive advantage to connect supplier to manufacturer and

thus offering a sure-shot profit venture.

Thirdly, Hungary faces excess demand for oil and natural resources and therefore is a

potential client for such suppliers that can offer those resources. This will further reduce

dependency on Russia and will offer a focused approach towards researching. That is, it can

research for those economies that are known to be generally strong for oil production or large

oil reserves and also other resources in demand.

Conclusion:

This approach will not only be a lucrative venture but a safe play as well. The only other

cost that remains is to train or hire such people who can help integrate and improve

communications with other member countries. While this expansion progresses, Synops6 will

need to develop into a partnership or a corporation in order to decentralize its functions. So

far the European Union Council is working on the EU Regional Cohesion Policy (Chapter 7,

Economic survey of the European Union 2007) which proves implications about this going

towards a stronger economic goal.


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Bibliography

Organization for Economic Cooperation and Development. Economic survey of the

European Union. 2007.

Science Direct. <http://www.sciencedirect.com/science?

_ob=ArticleURL&_udi=B6V2W-4S9NGDY-

1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_vers

ion=1&_urlVersion=0&_userid=10&md5=02eaa0f66c2619802f423bfbb8a13e36>.

Special Economic Zones. <http://business.poland.com/special-economic-zones/>.

Suder, Dr Gabriele. "Synops6 International: A Company." (n.d.).

World Nuclear Association. <http://www.world-nuclear.org/info/inf90.html>.