Austria is one of the best places to start a new business, not just because of the stable political system but also because of its business friendly tax system. The PESTLE Analysis shows the most important political, economic, social, technological, legal and ecological aspects about the Austrian market. Hofstede’s Five Dimensions show how the Austrian population sees itself and how they work together. When we have a look at the SWOT Analysis we will see the strength, weaknesses, opportunities and threats AmRest will have when it tests this market. This report will also highlight a possible strategy of how to enter the …show more content…
The population is independent, everyone has the same rights, there are many management facilities. The political power is decentralized. However, the attitude towards managers and CEOs are mainly informal and on a first name basis.
Individualism vs. Collectivism
Austria is considered to be a Individualism country. It means that the people look after themselves and after their family. So they have a loosely-knit social framework. The employer-employee relationship is a contract based on mutual advantage.
Masculinity vs. Feminity
Austrian people are driven by competition and success. They live in order to work. Furthermore conflicts are resolved by fighting it out, a good example for this is during the election time when there are television word battles between the candidates.
Uncertainty Avoidance
The Austrian population avoids uncertainty. They have a certain need for rules and a big motto is “Time is money”. They are driven by an inner urge to be busy and work hard, be precise and punctual. Also security is a very important factor in their daily life.
Long-term orientation vs. short-term
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Its already existing distribution and sales networks in Central Europe make AmREst to one of the largest independent restaurant operator in this area. Also, it is a well-recognized company with an international presence especially well in Poland, Czech and Hungary. In addition to that the power brands that AmRest operates, like Kentucky Fried Chicken, Pizza Hut, Burger King or Starbucks which are based on solid franchise and joint venture partnerships show high revenues for the company. Furthermore the company is very customer focused. However the biggest strength is the unique proposition “Through our ‘Everything is Possible’ culture, every day over 21 thousand AmRest employees in 12 countries deliver delicious food and exceptional service at affordable prices” (adapted AmRest Holdings SE Fact