Sweden entry

Junior (College 3rd year) ・Business ・APA ・5 Sources

Since Sweden provides a competitive and corrupt-free economy to new outputs, talents, technologies, and inventions, it is viewed as an appealing investment location by the majority of multinational firms worldwide. Sweden is the most important location in the Baltic Sea because it is appealing, serves as a gateway to Northern Europe, has low company tax rates, no withholding taxes on bonuses, and has a favorable holding corporate structure, all of which make it desirable for conducting business.

When combined with an educated workforce, great telecommunications infrastructure, and a stable political environment, Sweden has become a more attractive country for most American establishments seeking new markets and existence in the Nordic area. According to World Economic Forum of 2011-2012, Sweden graded 3rd in over 140 nations for overall competitiveness and efficiency. Just like Switzerland, Sweden has placed more emphasis on generating the conditions for an innovation-driven progress. The quality of civic institutions is regarded highly with a high mark of effectiveness, transparency, as well as trust. The country boasts a steady economic environment with a sensible budget and possible debt levels. These features make Sweden one of the busy and competitive markets of the world according to World Economic Forum. According to Transparency International, Sweden rated as one of the corrupt-free nations in the sphere emerging fourth in the process. Sweden economy would benefit from this global expansion venture that the company intends to roll out within a couple of months. 

Like many other European Union countries, Sweden has been affected by the financial disaster. Swedish GDP was affected harshly in 2009 but recovered in 2010, and it has been on an upward curve since.  Sweden ranks excellent on the list of most desired places in Europe to capitalize because the progression rate is higher compared to other EU; higher level trade; sound finance; international confidence is high in the long-term feasibility of the national budget.  The government on the other hand, through modernization strategy to increase the business environment for investors. Sweden devotes the highest sum per capita on exploration and development in Europe, and the assembly approved recently record level of expenditure on research. Some prominent business, as well as party leaders, supports the innovation for growth project (The labor market and labor market policy in Sweden, 1993). 

The investors conducted survey recently to rank the investment environment in Sweden, and it showed even results: well able and educated staff; low taxes to business; excellent organization; and access to resources. On the contrary, there is the negative side that should be noted: higher labor cost; inflexible labor laws; high individual taxes; and the high cost of living in Sweden. In the Nordic markets, management and labor regard each other in a consensual manner. The labor market relations characterize the mutual respect for a discussed contract. Labor unions are adaptive to new technology. They have implemented business explanation and favor the employee learning as well as technical development. 

The Swedish specialists have implemented various alterations to improve the business, supervisory environment that aids inflow of investments. Until the mid-80s, the tactic to a direct venture from overseas was preventive and governed by a scheme of laws and guidelines. By entering the European Union, Sweden has significantly improved regarding investment climate to attract foreign stakeholders to the nation (Pilbeam, 2007).

The Swedish establishments are actively seeking means to make sure that there is broader ownership in Swedish industries which increases competition and market efficiency. As a result, foreign ownership has overgrown. International firms now employ more than 25% of the Swedish workforce. To an extent, the United States is the most significant global employer in the nation.

In the 90s, Sweden made significant progress by liberalizing its product and markets making it leading reformist. The reforms have led to more efficient sectors and lesser prices. Regulation of foreign companies dealing with financial services has been liberalized, and that they have to meet with the laid down rules touching on them. 

The legal aspects provide various methods under which trade can be planned. The difference amongst these is whether the founder capital is theirs and the extent the initiator is accountable for the company liability. In this instance, our company meets all these obligations, hence making the process a much more comfortable(The labour market and labour market policy in Sweden, 1993).  The Swedish Law on foreign investors states that a branch must have a head which stays within the European commercial area to run the industry. In this case, the company must oblige and get a person with the said qualification. All the market are required to register in Sweden to obtain legal protection. 

Sweden tax structure is a straightforward given that corporate tax levels are low compared to other countries. The nominal rate of tax stands at nearly 27%, and this makes business easy to run given the incentives. Some companies can have the price lowered even further down to a minimum of 25 percent on annual deductible appropriations of their pretax profit. There are those who can make before-tax allocations for any untaxed assets that are subject to levy when applied. These untaxed funds can be used to insure losses when it happens.

The tax regime makes Sweden a favorable jurisdiction to most companies planning to venture into that market. The tax relief to foreign workers also makes up for a more competitive market. The dividends paid by overseas investors in Sweden are not substance to taxation only bonus dispersed to the international shareholder is subjected to a 30 percent cover-up tax under the local law, except if exempted or taxed at a lesser rate under the agreement.

Profits attained may be sent abroad minus being subjected to any tax other than the business income tax. It is because Sweden doesn’t have the controls to check on that. 

Swedish companies have a long stance on being active in corporate social responsibility work, so viewed as a pioneer in the field. The foreign companies intending to start operations within its jurisdiction have to comply with these rules, or else, they are deemed not fit to begin operations. It is in this regard that the company view Sweden as the destination for every potential investor. The company must focus on how best to meet this new demand by Swedish authorities to make an informed decision on the importance. As a sports gear enterprise, the company ought to involve the locals in dealings that help improve the livelihood of the surrounding neighbors and society at large. Initiatives like increase awareness in protecting the environment to curb the firm should adopt the ever-changing climatic conditions.

Country profile

According to power distance, Sweden scores low. Power is regionalized, and the directors depend on the skill of team members. Employees anticipate being asked in every instance. They do not like control and the attitude towards superiors is informal. They have a direct and participative form of communication. Compared to the United States which deal with the fact that individuals within any given society are not equal. They see everybody as unique and that each person exerts power over another person. The power someone possesses can influence people’s ideas and behavior (Hoppa & Hofstede, 2004).

Sweden is regarded as an individualist society with a score of 71 in Hosfstede ranking. There is a loosely joined social context where persons take care of themselves and close families. As a consequence, Americans are not reluctant about approaching their colleagues to obtain info. In any business sphere, the staffs are required to be independent and display initiative. The human resource works within an exchange-based world where hiring, promotion, and other decision are based on merit alone (Hoppa & Hofstede, 2004). 


in Sweden, the organization needs to liaise with relevant authorities and get the necessary documents (Pilbeam, 2007). Given the nature of operating a business in Sweden, the company would find it easy to set base in the capital since it provides a better opportunity to get a slice of the market. The company should try as possible to get the best workforce from the available pool of professionals who understand the market dynamics and drive the sales higher.

Entry strategy

For the company to have a foothold in Sweden, it should work with proximity with the embassy, as this would provide a clear pathway in accessing the market and setting up operations. Through the exchange program, those with prior knowledge of the market should be employed considering the experience needed. Once the business is operational, locals should be hired to cover direct sales since they are better placed in exploring the market.

Risks involved

In every venture, there are risks associated with it. For this case, it is a new venture in a foreign market, hence understanding it makes it easier to deal with any challenges expected. The language barrier is the first challenge since most locals speak Swedish consequently communicating in English can prove to be a problem. Another challenge is the perception of the product expected in the region (Mead, 2007). Some might choose to maintain the status by buying local products at the expense of foreign product even if it is of higher quality. Through analysis of the market, the organization can plan the mechanism to tackle the challenges and address the emerging issues promptly.

Motivational plan

The theories attempt to explain what motivates a person to behave in a way. These approaches when applied to any workplace environment changes the way workers do their job. A good plan should involve both the monetary and non-monetary incentives aimed at boosting the morale of workers. For this instance, expatriates who choose to undertake the assignment in Sweden are given preferential treatment that motivates them to take the step of moving abroad. 

Selecting an expatriate

Recruiting the best vice president for the assignment should be done by the company’s policy while also looking at the requirements of the host country. Pure merit should be followed in this case, and all the parties should be considered for the opportunity. When the company can’t find a right person, an initiative to train locals in the company’ terms of work can be utilized since the process can be achieved more smoothly without hindrance. 


Hoppa, J., & Hofstede, G. (2004). Implications of Hofstede dimensions of cultural variability for first contact situations.

Mead, R. (2007). International management. Malden (Mass.): Blackwell.

Pilbeam, A. (2007). International management. Harlow: Pearson Education.

The labor market and labor market policy in Sweden. (1993). Stockholm.

WORLD ECONOMIC FORUM: Challenges and Opportunities. (2009). Africa Research Bulletin: Economic, Financial and Technical Series, 46(5), 18267A-18268A. http://dx.doi.org/10.1111/j.1467-6346.2009.02370.x

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