4 Country analysis

After careful consideration and founding out that expanding Verdant Leisure in another country is a
good decision it is important to find an appropriate market. In the Export Policy it can be seen, that
Verdant Leisure is only operating in the United Kingdom. Despite this the company is developing
extremely fast and with great success.For this reason, in this section below you will see European
countries being evaluated in order to find the most suitable market. After finding an appropriate
country , a significant aspect is to set up the company’s value chain. Moreover based on factors that
determine the selected country we will see if it’s worth expanding there.

With the aim of analysing and selecting potential countries as new markets, a three-phase filter
model is used in order to evaluate the most attractive countries based on various criteria.

Pre filter:

Country Numbers of Corporate Human Natural disaster

people who income tax % development index
visited 2017 index 2018
2017
France 86.9 33.33 0.901 2.6
Spain 81.8 25.40 0.891 2.3
Italy 52.3 24 0.880 2.7
United Kingdom 37.7 19 0.922 1.9
Belgium 8.4 35.55 0.916 2.1
Germany 37.5 31.5 0.936 2
Iceland 2.2 No data 0.935 1
Greece 27.2 29 0.870 2.9
Hungary 12.5 9 0.838 1.9
 The Netherlands 17.9 25 0.931 1.4
Portugal 21.2 22.5 0.847 1.6
Russia 24.4 No data 0.816 4.4

Note: WEIGHT PART INCLUDE FOR 8 COUNTRIES

Corporate income tax 2017

With our group we removed the transportation costs because we are building new parks and we
decided that it is better to include the corporation income tax.

HDI

Human Development Index and its components, ranks countries by 2017 HDI value and details the
values of the three HDI components: longevity, education and income. A country scores higher HDI
when the life expectancy at birth is longer, the education period is longer, and the income per capita
is higher. (Work for Human Development, 2015)

Natural Disaster Index

This index rates the countries according to the likelihood of being exposed to earthquakes, floods,
tsunamis and hurricanes. The higher the percentage shown in the table, the higher the chance of a
natural disasters

Conclusion:

Comparing and weighing the data gathered based on the criteria above, 8 countries have been
selected for their market attractiveness: Germany, Austria , Italy, Switzerland , Denmark , France,The
Netherlands , Ireland
United Kingdom, Russia, Greece, Iceland have been rejected for the high costs of transport and high
natural disaster predisposition.

Country Political stability Economic growth Social FDI Confidence

average index (- (%) 2017 globalization Index 2017
2.5 weak; 2,5 index (0-100)
strong) 2017 2017
Germany 0.58 2.2 88.17 1.86
Belgium 0.42 1.7 90.5 1.44
Spain 0.27 3.0 85.3 1.60
The Netherlands 0.92 2.9 90.97 1.55
Hungary 0.81 4.1 85.13 No data
France 0.21 2.2 87.2 1.71
Portugal 1.08 2.8 83.52 No data
Italy 0.24 1.6 82.59 1.56

Conclusion: Germany, Italy , France and, Ireland have strong political stability, high economic growth
and are countries where investors are considered to be very confidant.

In addition we chose this countries because of their demographic data such as population size,
urbanization, education because their index is really high and positive. Moreover the climate in these
countries can be beneficial for building new parks as people more and more are searching for both
nice holidays in the mountains and near the sea.

Country Services 2017 Household Imports (%) Government Corruption

consumption of GDP 2017 debt of GDP perceptions
(billion USD) (%) (Transparency),
2017 2015 (100 = no
corruption)
Germany 68.6 2,671,915.59 39.5 60.9 81.00
Italy 73.9 998,635.99 28.2 132.2 50.00
Ireland 60.2 569,735.71 89.5 64.8 73.00
France 78.8 2,005,132.04 32.0 98.4 70.00

Evaluation form

Country 1 2 3 4 5
attractiveness Very poor Poor Medium Good Very good

Estimated market Ireland Italy France

size Germany

Estimated market Ireland Italy France

growth Germany
Buying power Italy France
 Ireland Germany
Ireland
Average industry Italy France
margin Ireland Germany

Competitive Italy France

conditions Germany Ireland

Market France
prohibitions Germany Ireland
Italy
Political/economic Italy France
stability Germany
Ireland

https://www.ey.com/en_gl/attractiveness

Conclusion: France seems to be the most attractive market to penetrate. Despite the high
transportation costs, the overall evidence and statistics have shown a well-developed nation that has
achieved a steady growth, low unemployment, competitive economy and rapid advances in
technology. In addition, France’s attractiveness to foreign investors recovered significantly in 2017
and the start of 2018 and it regained its place among Europe’s FDI leaders. (June 2018).