The Netherlands’ is one of the countries across the globe that present a viable environment to conduct business. The social, political and economic and political environment of the country presents pragmatic business opportunities that allow for economic growth. High level of economic and political stability in the country aloe the businesses to thrive hence translate to economic growth of the country. The main focus of Netherland economic policies is to attract FDI and to support the domestic markets hence creating revenue for corporate profit making. In this regard, the country received about 3.7% of all the FDI stocks internationally. Following this, the disposable income grew by 0.2% in the years 2002 and 2013 and continued to improve at a rate of 1.7% between 2014 and 2017. The wage growth is also expected to improve from 2.1% to 3.0% between 2018 and 2020 respectively. Moreover, the country has attained high level of democracy that significantly help in supporting the businesses since the political risks are minimized. The democracy in the country also improve the employees’ and employers’ input in the organizational success in the economy. Analysing the political ecology in the Netherlands is critical in identifying and understanding the its impacts on the performances of business and human resource management of employees at Package for Puppies. The political environment of the country enhances corporate efficiency and effectiveness by enhancing operation and management strategies of business enterprises. The membership of Netherlands in the European Unions also helps the country significantly in improving its position in the FDI and attract potential investors across the globe to support its economic growth.
HR Consultancy Report: Package-for-Puppies
The economic growth and development currently experienced in Netherlands support its robust labour market. The economic development in the Netherlands is supported by the growing service industry due to its strategic positioning as a coastal country. The government of Netherlands has invested in various sectors within the country to expand its revenue. According to Lane et al. (2018) the Netherlands government has invested in sustainable development goals that are aimed at assisting the country to prioritize on capital expenditure, attract private investment and create job opportunities for its citizens within the private sector. The government is concentrating on tax reforms, which is a strategic measure that will improve consumer spending and redirect the economy towards being sustainable. The country has implemented new policies that attract foreign direct investments (FDI) that contribute towards its growing economy. The Dutch Central Bureau of Statistics (CBS) (2009) reported that the Netherlands economy was the recipient of 3.7% of all the FDI stocks internationally. Although the Netherlands economy is steadily growing, the nation has continuously marketed its economy in an effort to attract capital. In 2009, the Netherlands was considered as one of the leading investors and FDI recipients globally with an estimated $3.0 trillion having gone through the nation (Damgaard et al., 2019). Thus, the country’s economy benefits heavily from inward FDI by engaging real investors and phantom investors and providing them with the chance to contributes towards the growth and development of the country’s domestic economies. The Netherlands provides investors with a great opportunity to benefit from the nation’s growing economy through FDI, which is considered as one of the crucial and legit reinforcements to international economic integration. Global economic integration is important for Netherlands domestic economy since the rise of globalisation has challenged countries to participate in international trade and form sustainable relationships.
The stable political climate in the Netherlands has strengthened its industries’ performance by encouraging trade relations with international organizations. As a result, the country has managed to attract more FDIs to strengthen its economy. The Netherland’s enjoys a peaceful social environment without political instability, which has improved its relations with other European countries. For instance, its membership in the European Union (EU) has enabled it participate in trade activities as a major exporter of perishable and non-perishable goods across the EU. Moreover, its membership to the EU is imperative in enhancing its economic status.
Levels of Poverty and Inequality
The Netherlands has experienced a significant increase in disposable income as the rate in income inequality has remained low in the past decade. According to the IMF report (2019), real disposable income in the Netherlands grew by 0.2% in the years 2002 and 2013 and continues to improve at a rate of 1.7% between 2014 and 2017, whereas it is expected that there will be a wage growth from 2.1% to 3.0% between 2018 and 2020 respectively. Additionally, the Netherlands governments has reduced the tax rates and maximized the tax credits as a measure to significantly reduce the tax burden for each household. This step is aimed at supporting the country’s disposable income, which will see it increase by 2.0% annually between 2018 and 2020 (IMF, 2019).
Employment Legislation and Government Policy
The Netherland has put in place labour and employment laws that are focused on protecting both the employers and employees. The Dutch legislations prohibit employers from discriminating against employees based on any grounds. According to the Dutch Equal Treatment Act and employment laws, discrimination on the following basis is outright illegal: sexual orientation, age, gender, race, nationality and one’s personal beliefs (International Labour Organization, 2014; ICLG, 2020).
Trade Union Membership Levels
Trade unions in the Netherlands play a significant role in representing employees and protecting their rights. Any employee can sign to become a member of the trade union in the Netherlands as there is no fixed number of members that the organization can assimilate. Employees’ interest can be represented through the trade unions as it is involved in joint dismissals, industrial strikes and collective bargaining.
Long Term Consideration
Packages-for-Puppies must implement effective strategies that will ensure that its business operations in the Netherlands survive foreseeable and unforeseeable circumstances in the future. Globalisation has highly influenced the international labour markets, which requires business organizations to develop strategic measures that enable them to adapt to the emerging changes. Bisley (2007, p6) describes globalisation as a “set of social consequences which derive from the increasing rate and speed of interactions of knowledge, people, goods and capital between states and societies.” Therefore, it is crucial that Packages-for-Puppies considers the impact that globalisation will have on its business operations, and implement regulations to counter the challenges and risks involved when it extends to the Netherlands. The economic and political stability in the Netherlands makes it easy for industries and organizations to participate in trading activity within the domestic and international markets – since the nation has a readily available labour market and buyers.
The Netherlands involvement in FDIs has strengthened its position in the international markets hence exposing its domestic markets to the wide array of opportunities available in Europe. Therefore, Package-for-Puppies has the opportunity to profit from the trade activities. However, it is imperative for the organization to consider the increased competition that may emerge within and beyond the Dutch market place. Since the Netherlands is an active participant in the EU, there is likelihood that more organizations from other nations might invest in the same manufacturing industry as Package-for-Puppies. Thus, the competitive aspect will emerge from the production and supply costs, technology adaptation and market response. Additionally, pandemics such as COVID 19 have the potential of affecting the manufacturing, production and supply process; hence the company has to implement effective strategies that would enable it to thrive in foreign markets despite such pandemics that may interfere with its revenue.
In summary, there are several benefits that Packages-for-Puppies will enjoy from conducting business in Netherlands. Reduced income inequality and poverty level in the country present a viable condition for Packages-for-Puppies to maximize on its profitability. Reduction in these parameters helps in increasing household spending hence creating more market for goods manufactured by Packages-for-Puppies. Moreover, the stable political environment in the country create a conducive atmosphere for business success. Business laws in the country promote and support business activities in the country. Again, the political relationship between Netherlands and other nations within the EU present a robust opportunity for business such as Packages-for-Puppies to grow its market share in the country. The country has narrowed the income inequality gap the act that has made its citizens to be empowered to create their own wealth hence high demand for goods and services. Since Packages-for-Puppies is in the manufacturing industry, it will thrive due to supportive labour laws and government policies that support cohesive relationship between employees and employers. The political laws of the country are tailormade to safeguard the interest of both employees and employers within the country. The government has also implemented employment policies that promote equality and protect both the employers and employees from any form of discrimination. Therefore, Packages-for-Puppies has a lot of benefits to enjoy by operating in Netherlands.
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