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Effect of Macro-economics on companies

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Effect of Macro-economics on companies
1. Introduction and Objectives
This is a report about the macro-economic environment of Germany in which Bayer AG (Bayer) was founded and listed in the European Stock Exchange vis-a-vis the macro-economic environment of China in which Bayer has a significant market and operations. This report examines and provide an insight on market structures in which Bayer operates, the impact of the macro-economic of Germany and China on Bayer’s economic activities and the monetary, fiscal and foreign trade policy and their impact on Bayer. This will assist Bayer to make strategic business plans includes major investment and expansion based on the above economic and market factors.
Background of Bayer
In fiscal year 2013, Bayer employed 113,200 people and had sales of €40.2 billion. The figure below shows the key figures of Bayer (revenue & employee) by key geographical regions.

Bayer is a global enterprise with 3 core competencies. Bayer AG, Leverkusen, Germany, acts as a strategic management holding company which defines the values, goals and strategies of the entire Group.

Bayer Financial Performance Summary
The following is an excerpt of the five years summary of Bayer Group financial performance with about 88% of Bayer sales outside Germany.

The following table provides Bayer’s regional breakdown of external sales by market and of intangible assets, property, plant and equipment. China forms a significant part of Bayer overall market as well as emerging markets for growth.

Bayer in China
Bayer's links with Greater China go back to 1882 and it now employs around 13,000 people. The signing of a broadly based cooperation agreement between Bayer and the Ministry for Chemical Industry in 1993 laid the foundations for expanding business activities in China. In 1994, Bayer (China) Ltd. was established as a holding company in Beijing to coordinate technology transfer and market development, and support the preparation and implementation of joint venture

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