2. Current Situation
• Weathered Euro crisis and has continued to increase
turnover and reduce costs since 2009
Reference:1
• However net profits have decreased and the company
has began to internationalize more with imports
increasing year on year as well as a new hub in
Germany
• Difficulties expanding into new areas due to the distance
from North America and the local to local market
common in Asia
3. European Market
Flora Holland has seen a rapid increase in imports as a
percentage of sales with 15% of sales being made up
of imports in 2006 and by 2011 this had rose to 25% of
sales (Flora Holland Annual Report, 2011).
Reference 2
4. Necessity of new hubs
• To improve market share and consolidate
markets
• Improves logistics to distant customers
• Access to new markets
• Consolidation of current markets
• Disadvantage is the initial costs, cultural
differences and its risky
5. Political
• There is a big difference between western
Europe/Central Europe and Southern
Europe/Eastern Europe
• Example is Belarus with an authoritarian
leader and human rights abuses
• Some countries still have trade barriers
that make it difficult for foreign companies
Reference 3
6. Economic
• Cheaper labour costs often in Eastern
European countries
• Euro crisis could further damage the
growing markets within Europe
7. Cultural
• Between Holland and Germany there are minimal
differences in culture
• However Poland and the Netherlands have major
differences
Reference 4
8. Recommendations
• We recommend that Flora Holland create
a hub in the port of Rostock
• Advantages are the direct route by sea to
Russia and transporting by ship is up to
70% cheaper than other methods
• Furthermore it is closer to eastern Europe
so the flowers will be easier to transport to
countries such as Poland, Ukraine etc
