European Union Marketing Analysis
Document built with the help of the European MBA class of ESGCI,
PGSM group, Paris. Promotion 2005
MBA group 3
Layout and Edition: Jonathan Ringenbach and Eric Ternier
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Table of content:
Austria ............................................................................................. 4
Denmark ......................................................................................... 12
Estonia ........................................................................................... 14
Finland ............................................................................................ 17
France ............................................................................................. 21
Greece ............................................................................................ 24
Hungary .......................................................................................... 27
Ireland ............................................................................................ 29
Lithuania ........................................................................................ 30
Malta .............................................................................................. 32
Netherlands ................................................................................... 36
Poland ............................................................................................ 38
Romania .......................................................................................... 45
Slovenia .......................................................................................... 54
Spain ............................................................................................... 56
Sweden ........................................................................................... 59
United Kingdom ............................................................................. 61
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By Victor and Dominique
Official German, Slovenian (in
languages Carinthia), Croatian (in
Burgenland), Hungarian (in
Burgenland) Export-oriented country
Capital Vienna Wide-ranging and highly
President Heinz Fischer diverse foreign trade-system
Chancellor Wolfgang Schüssel
EU accounts for some 2/3 o
- Total: 83,858 km² Austria’s foreign trade
- % water: 1.3% Trades with some 150
- Total: 8,175,000 (2004) countries
- Density: 97/km²
Independence 27 July 1955 federal state
Hourly productivity among
- Total $245,3 billion the highest in Europe
Labor cost prices are
Tax : corporate dropping
Very motivated workers
Inflation rate 1.3%
Trades with some 150
Strike days per 1
year Low interest rates
Extensive know-how in East-West
rate 2003 business
Simplified access to the Burse
Very good quality of life, low tax rates, low location rates
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By by Kevin Knight, Chatchai & Francisco Saavedra
Communicating to the Belgian Consumer
Ones success of product/service entrance into the Belgian market is heavily
dependant on a company’s understanding of its product proposition and target group.
While idea generation is promoted within an innovative environment, many are
justifiably rejected, while others are examined and processed for development.
Whether ideas are founded upon ones search for riches or acknowledgement, a
foundation of understanding continues to be essential.
The field of strategic marketing has witnessed the introduction of much terminology,
including; Big Hairy Audacious Goals (BHAGs). Should one wish to associate BHAGs
within the Belgian competitive arena, they may be derived and delivered in terms of;
target, common enemy, role model and internal transformation, whereby each, acts
as a motivation for drive. Consider Sabena’s possible target BHAG; to become the
dominant player in commercial aircraft1. Investigating BHAGs from a common enemy
perspective may illustrate the relation between media rivals, whereby RTK aims to
crush ALK-REIZEN BVBA.
The central focus is an acknowledgment that; despite having great ideas, unless one
is able to communicate there applicability to a target group, the idea will struggle to
not only succeed but survive. This paper is intended to deliver a brief awareness of
Belgium’s cultural influences and consumer lifestyles, to enable a business unit to
utilise effective communication channels for the promotion of products/ services in a
strategic marketing strategy manoeuvre with the assistance of supplementary
The historical factor on Belgians culture and way of life is really descriptive of what
the population is now and how it behaves. Belgium has always been a country of
occupation starting from the Romans to the Spanish, the Austrians, the French, the
Dutch and the Germans; all foreign power. The culture then is very rich and for sure
diverse with two main linguistic communities, Walloon and Flemish.
This occupation has created an indirect consequence in terms of authority, sector in
which Belgians have actually a lack. Because of dependence toward foreign powers
for centuries, Belgians don’t have any form of authority and rules or laws aren’t taken
Sabena; former Belgian airliner which filed for bankruptcy in 1999.
Presentations were created and available for download
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seriously. To give an example, tax evasion has become a really common practice
Belgium has always been one of the richest and most developed countries in the
world. It has experienced a huge artistic development during the medieval and
Renaissance periods that explain Belgians are interested in what happens in the
environment. They are aware of the world in which they live, and are passionate by
In terms of identity and because of the presence of various cultures inside the
country due to the occupation, Belgians are characterized by tolerance and flexibility.
They show openness to external influences, which is a very interesting point for
foreign investors or entrepreneurialism. There is no local desire or shown initiative to
create or establish new companies (in a general point of view). Belgians assume that
no ambitious project can be set up because the country isn’t powerful enough.
Opportunities are definitely missed. One point, representative of the wealth of
Belgium is that from 1985 to 1995, the economy has grown faster than any other rich
country. This is definitely a sign for investing.
Applying Hofstede’s Framework
Hofstede has imagined a matrix that establishes a framework, matching power
distance and uncertainty avoidance. This can apparently seem quite out of context,
but in case where foreign companies might be interested to be present in Belgium,
this framework can reveal passionate and crucial. This matrix is relevant because it
gives details according to strategies. Investing in Belgium, the strategies to use would
be similar to the ones used in the French market for example.
This matrix is really helpful. Cultures and backgrounds can be similar from one
country to another. France, Spain, Greece or Italian cultural behaviors can match the
Belgian’s. This means that a company that is used to do business in France can lead
the same strategy in the Belgian subsidiary. Whereas a German or Dutch company
won’t be able to make it, at least it will encounter more difficulties.
Interesting and useful points
To better segment the Belgium market for a company, some relevant aspects need to
be revealed. Local population appreciates a comfortable life, which means their
purchasing power is quite high. The population as it has been said before is generally
really open-minded and would gratefully accept new entrants on the market. A lot of
things can be done in Belgium, especially in marketing, because of a lack of image
building. The Belgian’s life philosophy is cool and clear enough “live and let live”.
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A lot of things can be done with ambition in Belgium, certainly if we take into account
that the population is focused on arts and literature, and that it is always willing for
Consumer life in Belgium
In recent years, previously run-down parts of the centre have become a magnet for
the young professional with major renovations and industrial spaces coming up for
rent or buy. Grand place seem to be shown the life style with several activities and
Much sought after are St Géry, Ste Catherine and the rue Antoine Dansaert area
leading up to the canal. The Marolles is becoming increasingly popular with a young
urban set. The Sablon and Louise are fabulously upmarket but that is naturally
reflected in price.
Suburb and rural
Many families make the decision to live outside of the city limits in the surrounding
villages, where they can enjoy a rural lifestyle with space for the kids and easy
access to the city. The house which is located by the lake also tend to be high price
similarly as urban area.
Belgium is a pioneer in a cashless society. The Proton card is actually a chip
integrated into your card and is like a rechargeable electronic purse. It is designed to
pay for everyday items such as newspapers and cigarettes, as well as paying the
butcher and the baker.
Belgium presents itself similarly to the other European countries in terms of media
platforms, thereby offering a diverse range of [visual and aural media] and [published
media]. An intensive list can be formulated within each category, for the reason; it is
suggested that considerable attention is focused towards newspapers and television,
thus providing an example of each media. While it is common belief that television
advertising is the most effective method of communication, one must first consider
the target audience. It may be rejected that mass marketing is the best option and
therefore alternative platforms are sought. Focusing on a Belgians average amount
of time viewing television reveals that they spend 19 hours per week, upon
comparison with the United Kingdom (28) and France (27) this is relatively low, thus
questioning the cost effectiveness and ability to reach the target market. One must
therefore expand the research into published media types, such as newspapers,
whereby the distribution target, size and region can be defined (national or regional).
With 43% of the population, Belgium presents itself as a nation hosting the greatest
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share of the population’s confidence in press. Therefore urging a serious
consideration for marketing approach.
As of the richness of Belgian’s cultures, life style and their fast growing development,
Belgians become awareness of world change and seeking more information update.
In which it can be considering as early adopters. The marketers could target Belgian
consumers which can be reached by published medias. And those target consumers
are tending to be opinion leaders.
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By Choaibi Malika & Valensi Neil
• A former British colony.
• Independence in 1960.
• Republic of Cyprus joined the EU on 1 May 2004
Datas about Cyprus
• Location: Middle East, island in the Mediterranean Sea, south of Turkey.
• Area: 9,250 sq. km.
• Coastlines: 648 km.
• The 3rd largest island in the Mediterranean Sea (after Sicily and Sardinia).
• Capital: Nicosia
Population structure : 0-14 : 21%
15 – 64%: 68%
65 & more: 11%
Ethnics groups: Greeks: 77%
Religions: orthodox: 78%
GDP per capita: $ 19,200
• Currency: Cypriot pound (CYP).
• The Greek Cypriot economy is prosperous but highly susceptible to
• Investments: 19.9% of GDP (2003).
• Labor force: 330,000.
• Public debt: 62.3% of GDP (2003).
• Agriculture: potatoes, citrus, vegetables, barley, grapes, olives, vegetables,
• Industries: food, beverages, textiles, chemicals, metal products, tourism,
• Services: tourism, trade, hotels & restaurants.
Current account balance: $-3,543 billion (2003)
Exports: $1.054 billion
Goods: citrus, potatoes, cement pharmaceuticals, clothing and cigarettes.
Partners: UK 32.1%, Greece 9.2% Lebanon 3.5%
Imports: $4.637 billion
Goods: consumer goods, petroleum and lubricants, intermediate goods, machinery,
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Partners: Greece 11.9%, Italy 9.8%, UK 8.3%, Germany 7.5%, Japan 5.6%, France
5.1%, China 4.9% , US 4.2%, Spain 4%
• Telephones: 427,400 main lines in use.
• Telephones : 417,900 mobile cellular.
• Internet users: 220,000.
• Highways: 13,491 km.
• Ports and harbors: 6 (Famagusta, Kyrenia, Larnaca, Limassol, Paphos,
• Airports: paved runways: 13, unpaved runways: 4, heliports: 10.
The marketing view
• The Cyprus market is very small, so Cyprus decided to work hand in hand with
other countries such as Israel.
• Marketing and promotions techniques used in Cyprus are similar to Israel.
• Magazines, TV ad, radio ad and boards are used as pillars for the marketing.
Strategic plan for 2010 for the Cyprus Tourism Organisation (CTO)
Between 2003 and 2010, an implementation plan is forecasted to improve the
tourism in Cyprus.
The course ahead for the tourist industry of Cyprus is charted by the Strategic Plan
for Tourism 2010. This Plan was prepared by the C.T.O after consultation with all the
stakeholders of the Cypriot tourist industry and was approved by the Cyprus
Government. The Plan reaches to introduce sustainability in the tourist development
of Cyprus, which will revolve around two central pillars:
• The cyprus culture.
• The Cyprus environment.
This Plan will enable the repositioning of Cyprus in the global tourist arena as:
• A mosaic of nature and culture.
• A place concentrated in a small, warm and hospitable island.
• The crossroads of three continents.
• Double total revenue from tourism to reach £2 billion in constant prices by the
• offering quality.
• Offering value for money to the visitor.
• A very modest increase in arrivals (ca. 3,5% per annum, to reach 3,5 million
arrivals by the year 2010).
The Strategic Plan consists of:
• A Marketing Strategy.
o The source markets of tourism are prioritised.
o Specific market segments that contribute positively towards the
achievement of its goals were identified and targeted.
o Special tourist products that appeal to them were identified and
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o The Product Strategy was created in order to develop them and making
them available to the market.
• a Product Strategy which aims at offering value for money to the tourist
o The enhancement of the quality of the tourist product.
o The improvement of the contribution of the human factor (through the
promotion of hospitality of the locals and the increase in the efficiency of
labour employed in the tourist industry).
o And the pricing of the product in direct relation to the quality offered.
• a Quality/Value Added Strategy
The strategic plan is:
• The differentiation of the tourist product at the local level.
• The repositioning of the tourist areas so that each develops a distinctive and
Towards this end, consultancy studies are being undertaken, and their findings will
be implemented through a private-public sector partnership.
Pursuance of this plan
• It was recently revised.
• Appropriate follow-up mechanisms are setting up.
• Indicators that will be monitoring the success in the implementation are being
put in place.
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By by Julien Froment & Perla Sitruck
chief of Queen MARGRETHE II
head of Prime Minister
government Anders Fogh
POPULATION 5,3 million
AREA 43,094 sq km
CURRENCY Danish krone (DKK) (0,13451 €)
GDP $167.2 billion (2003
Unemployment rate 6.1%
GDP per capita $31,100
Growth 1,6 %
Exports : $64.16 billion Germany 18.7%,
Exports – partners : Sweden 12.6%, UK
Punctual - Quality
Hard-working - Reliability
Disciplined - Design
Determined - Good value
Aware of environment
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Denmark holds a wide variety of little and medium companies, specialized in
agribusiness (dairy produces, tobacco, beer), manufactured products (machinery
and equipment), and mechanic construction.
Danish products have two main characteristics: design and good value.
Danish economy offers comfortable living standards, a stable currency, and high
dependence on foreign trade.
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By By Gibert AYO and Feng WANG
Location: Eastern Europe
• Area: 45 226 km²
• Land boundaries: 633
• Coastline: 3,794 km
• Natural resources: oil
shale, peat, phosphorite
• Population: 1,341,664
(July 2004 est.)
• Age structure: 0-14
years: 16% (male
110,452; female 104,363), 15-64 years: 67.5% (male 431,493;
female 474,255), 65 years and over: 16.5% (male 72,819; female
148,282) (2004 est.)
• Population growth rate: -0.66% (2004 est.)
• Ethnic groups: Estonian 65.3%, Russian 28.1%, Ukrainian 2.5%,
Belarusian 1.5%, Finn 1%, other 1.6% (1998)
• Country name: Republic of Estonia
• Government Type: Parliamentary democracy
• Capital: Tallinn
• Official languages: Estonian
• Independence: 20 August 1991 (from Soviet Union) National holiday: 24
• Date joined UN: 17 September 1991
• Date joined EU: 1 May 2004
• Suffrage: 18 years of age; universal for all Estonian citizens
• GDP: 17.35 billion (2003 est.)
• real growth rate: 4.7% (2003 est.)
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• per capita: $12,300 (2003 est.)
• composition by sector: agriculture: 4.9% industry: 30.3% services:
• Investment (gross fixed):30.2% of GDP (2003)
• Inflation rate (consumer prices):1.3% (2003 est.)
• Labor force:654,000 (2003 est.)
• Unemployment rate:10.1% (2003)
• Currency: Estonian kroon (EEK)
• Exchange rates: krooni per US dollar - 13.8564 (2003)
• Imports: $5.535 billion f.o.b. (2003 est.)
• Exports : $4.075 billion f.o.b. (2003 est.)
main lines in use: 475,000 (2002)
mobile cellular: 881,000 (2002)
Internet hosts: 82,142 (2004)
Internet users: 444,000 (2002)
• Railways-broad gauge: 958 km 1.520m/1.524m gauge (132 km
• Highways: total: 51,411 km; paved: 10,334 km (including 94 km of
expressways); unpaved: 41,077 km (2000)
• Waterways: 500 km (2003)
• Pipelines: gas 859 km (2004)
• Airports: 29 (2003 est.)
Key Reasons Why You Should Invest in Estonia
Access: Excellent position & seamless business
Performance: Competitive costs & simple low tax
Communication: 498.86 internet connected hosts per 10,000 inhabitants
Quality: Education (Size of international community 3000 people)
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Environment: "warm welcome" to business
Transports & Logistics
• Sea transportation
• Muuga free zone
• Road transport
• Railway transportation
• Air transportation
• 3,3 million tourists a year
• At least 10% of the Estonian economy
• South-Eastern Estonia, natural parks and reserves, enjoy the
• hotels and sanatoriums
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By KOKORA Chantal, FADIL Atikatou & WAN Gu
GDP: 3,1% in 2004
Industrial production growth: 3,8% in 2004
Low inflation: 1,3% in 2004
Unemployment rate: 9% (2003 est.)
Exports - partners: Germany 11.8%, Sweden 9.9%, US 8.2%, UK 8%,
Russia 7.5%, Netherlands 4.8% (2003)
Imports - partners: Germany 16.2%, Sweden 14.1%, Russia 11.7%,
Netherlands 6.3%, Denmark 5.7%, UK 5.3%, France 4.3% (2003)
Europe’s most competitive economy, according to WEF (World Economic
Forum, October 2004).
The only Euroland country in Northern Europe
Number three globally in R&D spending per capita
One of the highest Internet penetration in the world
One of the highest mobile phone penetration in the world
Global leader in electronic banking
National 100% digital fibre-optic network
10% of all Europe's new medical biotechnology companies
Global leadership in silviculture and forest products
Porter's projected innovation index for Finland climbs from position 4 to 2
Strategic geographic position in the New Northern Europe
Most state and EU-sponsored incentive programmers in Finland are intended
to promote investment in economically less developed regions. Such support
is given in the forms of cash grants, loans, tax benefits, equity participation,
guarantees and employee training. Most of the support is for SMEs.
Foreign-owned companies are eligible for government incentives on an equal
footing with Finnish-owned companies.
Establishing a business presence
Four highly promising industries offering good potential today:
Information and communication technology
Environmental technology and services
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An advanced technological infrastructure
Competitive operational costs (compared to the UK, Germany and Sweden)
Transparent business practices
Low levels of bureaucracy
Plenty of room for foreign players
Company ownership does not restrict eligibility for public funding, for example
As a testing ground for new concepts
As a competitive base for targeting EU markets
Marketing channels to third countries
The surrounding economies represent a potential market of 80 million
There are many good companies on the Helsinki Stock Exchange, but their turnover
is minuscule apart from Nokia and the forest industry. When money does not change
hands, share values never go up. As a result, underpriced Finnish top companies
end up in the portfolios of foreign investors.
Corporate tax: 29%
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By by Gregory Holbach & Idriss
Location: Center of Western Europe bordering UK, Belgium, Luxembourg, Germany,
Switzerland, Italy, Monaco, Andorra and Spain.
Area: 547 030 sq km
Land Boundaries: 2889 km
Coastline: 3427 km
Ressources: coal, iron ore, zinc, bauxite, uranium, timber, fish…
Composed of 22 Regions, Overseas Departments and Territorial Collectivities.
- Population: 60 424 213 (+ 0.39%) in 2004
- Age Structure:
0 -14 years: 19%
15 - 64 years: 65%
over 65 years: 16%
- Median Age: 38.6 years
- Life Expectancy: 79.44 years
- Migration Ratio: 0.66 / 1000
- Ethnic Origin: Celtic and Latin, Slavic, North African, African, Indochinese
- Religion: Catholics + 85%
- Literacy: 99% can read & write
- French Republic
- Constitution: 9/28/1958 amended for Maastricht Treaty(92), Amsterdam Treaty(96),
Nice Treaty(2000), Immigration tightening laws(93) and 5-year presidential term.
- Chief of State: Jacques Chirac(UMP)
- Chief of Government: Jean-Pierre Raffarin(UMP)
- Political Parties: Citizen and Republican Movement, French Communist Party, Left
Radical Party, Socialist Party, Greens, National Front, Union for French Democracy
and Union for a Popular Movement..
- Political Pressure Groups: Left learning unions: CGT, CFDT and FO
White-collar & employers unions: CGC and MEDEF
- From Government Ownership and Intervention to more Market Mechanisms.
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- GDP: Total: 1661 trillion $ (7th in the world)
Per Capita: 27 600 $
Composition by Sector:
- Investment: 19.2 % of GDP
- Public Debt: 68.8 % of GDP
- Inflation: 2.6 % in May 2004
- Unemployment: 10 % in January 2005
- Labor Force:
- Current Account Balance: 13.8 billion $
- Export Commodities: machinery and transportation equipment, aircraft, plastics,
chemicals, pharmaceutical products, iron and steel, beverages
- Import Commodities: machinery and equipment, vehicles, crude oil, aircraft,
- Export Partners: Germany 14.9%
- Import Partners: Germany 19.1%
- Industries: machinery, chemicals, automobiles, metallurgy, aircraft, electronics;
textiles, food processing; tourism
France is the Heart of the first market in the world: the UE 25 (40% of worldwide
4th worldwide economic power of goods, 3rd for services and 2nd investor after the US
in the top 4 of entering Investments destination in the world:
2nd after China
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more than 200% total investments growth in less than 10 years
A country of great company and Entrepreneurs:
More than 10 french companies in the international Top 100
The number of company creations growes “quasi exponentialy”
A country of hign R&D and Innovation:
2nd in relative expenses in Europe
2nd in number of researchers in Europe
2nd in number of patents in Europe
A productive and highly skilled workforce:
1st GDP per employee in Europe
3rd %age of 20-24 year old studying in Europe
2nd in number of 20-29 graduated in sciences or techniques per 1000 in
The most attractive metropolis after london in Europe:
Low electricity costs
Lowest phone costs
Good quality and fluid roads
Member of the first stock exchange in Europe
Great Trains, Harbors and Airports Network
The current government has lowered income taxes and introduced measures to boost
employment. The government is focusing on the problems of the high cost of labor and
labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs.
The government is also pushing for pension reforms and simplification of administrative
procedures. The tax burden remains one of the highest in Europe (43.8% of GDP in
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By DIANA DEL MOLINO & MIRIAM TRILLO
conventional long form: Hellenic Republic
conventional short form: Greece
local long form: Elliniki Dhimokratia
local short form: Ellas or Ellada
former: Kingdom of Greece
• Southern Europe, between Albania and Turkey
• Capital: Athens
• Area total: 131,940 sq km water: 1,140 sq km land: 130,800 sq km
• Population 10.6m
• Main languages Greek 99% (official)
• Greece is a parliamentary republic.
• Mr. C. Stefanopoulos is the President of the Hellenic Republic
Currency: euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a
common currency to be used by financial institutions of member countries; on 1
January 2002, the euro became the sole currency for everyday transactions within
the member countries
• Inflation 3.6% (2003)
• Debt - external: $41.9 billion
• Currency: Exchange rate is 340,75 drachmas per 1 euro) 1 Euro (€) = 100
lepta (or cents)
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• GDP per headUS$16,000
• GDP growth 4.3% (2003)
• GDP sources 6.8% agriculture, 22.1% industry, 71.1% services
• Corporate tax rates: 35%
• Individual tax rates: up to 40%
• Other key taxes: Special tax on business income; real estate transfer tax;
surtax on rent from non-industrial property; annual real property tax on
corporations; consumption tax; tax on sale of listed shares; import duties.
• Exports €11.1bn
• Exports - commodities: manufactured goods, food, beverages and fuels.
• Exports - partners: EU 56% (Germany 25%, Italy 11%, UK 8%, France 6%),
• Imports €33.8bn.
• Imports - commodities: manufactured goods, foodstuffs, fuels, chemicals
• Imports - partners: EU 61% (Italy 16%, Germany 16%, France 8%, UK 7%,
Netherlands 5%) US 11%
Business & financing
• Foreign firms almost invariably conduct business via a corporation
• Joint ventures do not constitute legal entities but do represent fiscal entities for
• The unemployment rate was 9.3%. (2004)
• About 35% of the workforce is unionized, with slightly higher rates in
manufacturing and banking.
• Tourism largest and fastest-growing sector 70% of GDP in 2002
– Major source of foreign exchange earnings
– Revenue exceeded $5.2 billion in 1998
• Manufacturier accounts for about 13% of GDP
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• Food Industry one of the most profitable and fastest-growing areas of
manufacturing (export potential)
Potential areas for investment
Industries: tourism; food and tobacco processing, textiles; chemicals, metal
products; mining, petroleum
• Recent investment has focused on the service sector, particularly in banking,
insurance, tourism, retailing, IT and telecoms.
Public Power Corporation
• Largest enterprise in Greece
• Responsible for the electricity in the entire Greek territory
• Investments: 30% annual Greek
• Trades wholesale electricity in Europe
• The government owns 51% of PPC.
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By Fabien DURAND & Charlotte RISPOLI
1. General presentation
Political system: Parliamentary democracy
Population : 10,187,600 (65% in urban areas)
Capital : Budapest (2,200,000 inhabitants)
Area : 93 030 sq.m.
Official language: Hungarian
National Currency: Forint
GDP Growth: 2.9%
Purchasing power parity: $13,900 (UE = $ 25,700 )
Inflation rate: 4.7% (UE = 2% )
Unemployment rate: 5.9%
Minimum legal salary per month : 212 euros
Term of the work time: 40 hours per week
2. Commercial specificities
1) Well target importation and distribution channel
2) Be aware of consumer needs : increasing gap between rich and rest of the
3) Business languages : German (old generation) and English (young generation)
4) Take in consideration entry regulations
5) Be aware of customs systems
3. Marketing issues
- Highly influenced by advertising and attracted by western products
- Following the decrease of incomes : main choice criteria became price
- Consumption habits: average basket at supermarkets is 10€
4. Strengths & opportunities
- Low corporate tax rate : 16% (34,3% in France)
- low cost & qualified workers (especially in innovation sector)
- Increasing investor confidence
- Advantageous geographic location at the very centre of Europe
- Stable political and economic environment
- Supportive and effective legal system
- Competitive operating conditions(e.g. labour, land, energy )
- Foreign Investment Act in 1988
- Legal system: rule of law based on Western model
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- Foreign investment is expected to increase in 2005
- Current growth rates is sustainable in the long run
- Nearly every segment of the economy are opened to foreign investors
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By Charlotte Rispolli
Area: 69,000 sq km
Population: 3.96 million Government: democracy
Capital City: Dublin Language: English, Gaelic
Head of State: President Mary McAleese
Head of Government: Prime Minister Bertie Ahern
Religion: 95% Roman Catholic, 3.4% Protestant
Arable land: 15.2%
Coastline: 1448 km
Member of EU: Since 1973
GDP per capita: US$29,300
Annual Growth: 4.3% Inflation: 4.8% Unemployment rate: 4.7 %
GDP by sector: Agriculture: 5% Industry: 46% Services: 49%
Major Industries: Computer software, information technology, food products,
brewing, textiles, clothing, pharmaceuticals, tourism
Major Trading Partners: EU (Esp. UK, France, Germany, Netherlands), US
Characteristics of the Irish market
40% have less than 25 years old 25% less than 14
Evolution of consumption more oriented to young people
Small market easily mastered Diversified demand
Advantages of this market
•European leader of software & 1st exporter
•Main investment sectors: Pharmaceutical/
New technologies/Financial services
• 1000 successful implementations (500 US, 160 British, 125 French...)
• Public administration easy & efficient
Ireland is a country with a lot of opportunities for investment because the economic
situation is good. Last year, the growth has increased and the inflation where
mastered. Actually Ireland faced to an important workforce immigration.
The consumption is high and new needs appear especially because wants of Irish
people become more closer to European in several sectors: clothing, food, wine…
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By Boris FRANCIOLI & Médoune SYLLA
I- General Overview
Population : 3.5 millions
Territory: 65 200 km2
Capital : Vilnius : 542 287
Languages: Lithuanian 80.6%, Russian 8.7%, Polish 7%, Belarusian 1.6%, other
2.1% Currency : Litas (1 lithuanian Litas = 0.29 €, 0.38USD)
Ethnic Composition: Lithuanians 81.8%, Russians 8.1%, Poles 6.9%, Belarusians
1.4%, Ukrainians 1%, Others 0.7%
Median age : total: 37.4 years, male: 34.8 years, female: 40.1 years (2004
Population growth rate in 2004 (since 2003): -0.33%
Birth rate : 8.49 births/1,000 population
65 years and over:15%
III- Geography Overview
Location: Eastern Europe, bordering the Baltic Sea, between Latvia and Russia
Land boundaries: total: 1,273 km
border countries: Belarus 502 km, Latvia 453 km, Poland 91 km, Russia 227 km
Coastline: 99 km2
Climate : transitional, between maritime and continental; wet, moderate winters and
IV- Cultural and Political Overview
Religion: Roman Catholics accounted for 79% of Lithuania’s population
Government: Democratic state
11 March 1990 (independence declared from Soviet Union);
6 September 1991 (Soviet Union recognizes Lithuania's independence)
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President: Valdas Adamkus (elected in June 2004)
First Minister: Algirdas Mykolas BRAZAUSKAS (since 3 July 2001)
V- Economical Overview
GDP (Gross Domestic Product) in 2003 : 16.27 billion €
Average wages: US$ 416.50 per month
Annual inflation of August 2004 : 2.2%
Unemployment: 6.6% (about 213 000 unemployed)
Foreign Direct Investment: 4.25 billion € (July 2004)
Main investors: Denmark, Sweden, Germany, Estonia, the United States and
VI- Foreign Trades
Main export partners:
Switzerland (11.7%), Russia (10.1%), Germany (9.9%),Latvia (9.7%).
Main import partners:
Russia (22.1%), Germany (16.1%), Poland (5.2%), Italy (4.3%).
Main part of exports in 2003 was directed to the
EU-15 countries with 42% of the total exports
EU candidate countries (19.3 %)
Main part of imports come from
the EU-15 with 44.5% of the total
Main importation products:
mineral products 21%, machinery and equipment 17%, transport , equipment 11%,
chemicals 9%, textiles and clothing 9%, metals 5%
Railways: 1,998 km
Highways: 75,243 km
Waterways: 600 km (2004) J,hj
Pipelines: gas 1,696 km; oil 331 km; refined products 109 km (2004)
Airports:102 (2003 est.)
Airports - with paved runways: 74
Internet host: 67,769
Internet users: 95,700
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By Gaëlle BOURCIER, June SUN & Tianyi ZOU
I General presentation of MALTA
Geography & Population
Southern Europe, Islands in the Mediterranean Sea, South of Sicily (Italy)
3 inhabited islands : Malta, Gozo, and Comino
Capital : Valetta
Area : 316 sq km
Natural resources : limestone, salt, arable land
Population : 396,851 (July 2004)
Religion : 98% Roman Catholic
2 official Languages : Maltese and English
History & Government
Government type : Parliamentary Republik
Independance : 21 September 1964 (from UK)
Legal System : based on English common law and Roman civil law
Chief of State: President Eddie FENECH ADAMI (since 4 April 2004)
Head of Government : Prime Minister Lawrence GONZI (since 23 March 2004)
Economy (2003 est.)
Currency : Maltese lira (MTL)
Exchange rate : 1 MLT = 3.02 $ = 2.31 €
GDP : $7 billion _ GDP per capita : $17,700
Sectors : Agriculture: 3% _ Industry: 23% _ Services: 74%
Inflation rate : 0.4% (EU average 2%)
Unemployment rate : 7% (EU average 9%)
Account balance : negative (-250 million)
Major export partners : Singapore 17%, US 12%, UK 9%
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Major import partners : Italy 19%, France 14%, UK 8.5%
II Marketing concepts in MALTA : Tourism
A case of Malta Tourism
1.Resource of Malta Tourism
•Sunshine, sea, beach,
•Old building、 palace、 big church, hieron
•The best port in Med
Europe Countryside, Europe pearl
2.Facts of Malta Tourism 2004
•Source of tourists
Mainly from EU25
Top 5 countries: UK, France, Germain, Italy, Netherlands
•Average Nights: 9.7 (2004)
•Purpose of trip: Holiday
•Peak Season: July, August
Most people come here for holiday by air in summer
A suffer of sales decline in last decade
Positioning of Malta: Lack of excitement
Mismatch between brand promise and the delivery of product
•Facilities to be improved
•Repositioning of Malta
rather than a sun and sea destination, but its distinguishing characteristics, as an
•To improve value delivery system
•New product development
•Marketing campaign in all core and emerging markets
•To help tourism operators on all folds
6.MTA identified product clusters
The clusters are as follows:
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Music, Theatre and the Arts
Language and Education
Business and Communications
History, Culture, Religion, Architecture
Health, Sports and Wellness
Food and Wine
Hobby holidays and NGO networking
Folklore and People
Leisure and Fun
Cruise Liner Business
Nature, the Environment and
“We need to determine our strengths and weaknesses in these areas and lay out
action plans for each of these within the context of a new strategic plan.”
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2003 1957 854 4347 16102 55294 45557 53455 53442 56517 62532 22778 10764
2004 0 353 2399 19112 30614 24058 34794 39870 45158 45752 32075 10767
2005 3134 4544
Malta -- “The Mediterranean’s mini-Hollywood”
Tourism ←→ Movie Industry
Here you can find out everything you need to know about the stars and directors who
have helped turn Malta into one of the world’s most popular film and television
locations – dubbed “the Mediterranean’s mini-Hollywood” by the London Times.
In the last five years alone, Malta, Comino and Gozo have been home to Hollywood
blockbusters such as “Gladiator”, “U-571”, “The Count of Monte Cristo” and “Troy”
(set to be one of the biggest films of 2004), as well as prestigious period dramas such
as the BBC’s “Byron” and “Daniel Deronda”.
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A “Malta Movie Map” showcases the islands’ starring role in dozens of productions –
so that when you visit the islands on holiday, you can follow in the footsteps of
Russell Crowe, Brad Pitt and Sharon Stone.
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By a Marinova & Tanya Hernández
Political & Legal Environment
•Head of State: HM Queen Beatrix
•Government: Parliamentary democracy
•Seat of Government: The Hague
•Capital City: Amsterdam
•Population - 16,318,199
•Dutch (official language)
– Roman Catholic 31%, Protestant 21%, Muslim 4.4%, other 3.6%, unaffiliated 40%
•GDP: € 454.3 b
•GDP capita: € 28,000
•Growth: GDP -0.9%
•Unemployment rate: 5.3%
•Export € 232.8 b > Import € 205.5 b
•Export destinations: Germany,Belgium, France, UK (EU: 76%)
Bloemenveiling Aalsmeer - world's largest auction (Flower market)
»Bloemenveiling : real name of the market place
»Flora Holland; mainly Dutch producers
•Biotech Industry – 30 % ↑
One of the most important flower market in the world are located in
Netherlands where Dutch people have developed some international
transactions as Flower auction logistics.
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For International Business people and Marketing experts channels of
distribution are a way of succeed. Following is shown : The Flower Auctions –
They made their transactions through : Clock Transactions Electronic
They have MVA delivery messages with all members in the organization
Electronic Data Interchange
Channels of Distribution
5000 •Day-fresh products : point-of-sale as soon
10 000 20 million flowers/day wholesalers &
World Specialized exporters as possible
•Trays, containers and boxes
6.30 and 9.30 am •Uniform & standard packaging
•Unique packaging code
7 Airports - Amsterdam Airport
Railway network – (TGV) 2 802 km of
Few Hours Get t Order Road network - total length 3250 km of
Turnover € 6 m/day
o Sea – Rotterdam ( #1)
80% Kenya, Israel and o River - North Sea ↔ Rhine,
Germany, UK, Zimbabwe, South Maas, Scheldt
•Usual sales tools
•The introduction of new species
•MVA (marketing and sales Aarlsmeer)
•Fairs & Events
•Exclusive Auction Group (clock)
•Via the auction clock
There is not reimbursement
Royal Netherlands Embassy in Paris, France
7-9 rue ÉBLÉ
75007 PARIS, France
Page 37 of 62
By Adrien Guez & Seo Mymtae
Poland is located at the heart of Europe, between Western and Eastern Europe. This
is an excellent location, at the crossing point of the European trading routes, some
kind of bridge here, you know?
Poland is also well served in highways, railways and waterways. Many countries
know they can count on Poland for their business, especially since its recent entry in
the European Union (May 2004) and its membership of NATO (1999)
Poland in Brief!
It’s a Republic, like in France where the President is Aleksander Kwasniewski with
his prime Minister Marek Belka.
They are about 38 Millions inhabitants, and the majority of them are Roman Catholic.
Why? Because the beginning of the Polish State goes back to the 10 th Century when
Christianity was adopted.
The GDP growth is almost 7%, which is much stronger than in Euro Zone (1,3%) and
higher than an average of old 25 EU members (1,6%). Inflation (+0,8%)’s evolution in
unsignificant in Poland. Employment tends to rise slowly nowadays, and the rate of
unemployment of 18% seems to be better now. The most important thing is, since
their membership in EU last year, their exports and imports have increased more
than 20 and 30%! This is very relevant and incredible. Of course, Poland is also one
of the most interesting countries in Europe. Mountains, forests, sandy beaches,
culture and more than thousand years of history!
French investment in Poland:
13,000 french companies export in Poland. French companies employ 150,000
persons in Poland. This fact is due in part to the acquisition of 47.5% of TPSA,
Telekomunikacja Polska, the most important telecommunication group in Poland, by
TPSA belongs to Kulczyk Holding.
Kulczyk Holding is one of Poland's largest capital investors, and one of the Poland's
largest private investor, which is hold by Jan Kulczyk, first fortune in Poland.
Kulczyk Holding S.A.'s largest affiliates include TELEKOMUNIKACJA POLSKA, TUiR
WARTA, Kompania Piwowarska, Autostrada Wielkopolska, Euro Agro Centrum,
Skoda Auto Polska, PTE DOM, POLENERGIA, and PKN Orlen which is Poland's and
Central Europe's largest refiner of crude oil.
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Kulczyk Holding S.A. has also partnered for numerous ventures with international
corporations and banks, including France Telecom, KBC Insurance, Volkswagen
Group, South African Breweries, Strabag, EON Energie, JP Morgan, Chase
Manhattan, Dresdner Bank, Commerzbank, Credit Lyoannais, European Investment
HOW TO APPROACH POLAND?
Poland has one of the most growth rates in European Union with a GDP of 5%.
The monthly average wage is 537€ and the cost of time work is 4.48€.
There are about 3.5 million polish companies.
About the different sectors:
- The Agriculture represents 51% of the country’s surface, 21 % of the working
population and 3% of the GDP. There is a real development of the investment
in this sector, with an increase of the agricultural income, despite is role in
- Also, the manufacturing industry knows a remarkable dynamism, with an
increase of 80% for the car industry, 40% for the agro alimentary and 32% for
the machines and equipment.
- However, concerning the construction industry, the recovery is not yet present
but signs of improvement appear.
SERVICES: (50% of the working population):
This sector is dominated by the foreign investors, big distributors groups as Ahold,
Tesco, Carrefour, Auchan, Casino, Metro AG, Milo, Intermarché, Leclerc: There is a
strong French presence.
There is a strong improvement of the LOW COST air companies (+20%).
The Polish Consumer:
There are 39 millions of people in Poland so 39 millions of consumers.
22% of the population has between 0 and 17 years.
The rural population is 33% and the urban population is 67%.
For 95% of the population, the monthly income is less than 709€/ month and for 4%
the income is between 710 and 1400€/ month.
The interesting sectors in Poland:
Management and Negotiation in Poland:
It is not always easy to get an appointment with a Polish manager. To do it, the use
of personal contact and recommendation make easier these things. The direct
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contact is really recommended. Polish people appreciate the face-to-face discussion
to clarify the business relations and to materialize them. Appointment can be taken
from 8:00 AM, but not after 4:00 PM, unless for dinner. The business dinner is more
important that the business lunch because the Polish take a short break the noon.
They take Vodka, which can lead consequences on the negotiation process. An
interpreter is recommended, however, now in Warsaw, the businesses are deal in
English in many cases. During the negotiation, we have to respect formalism (be on
time at an appointment, information possibly traduced in Polish…), and to conform to
the Polish practices is recommended in business relations. Poles likes in business
relations when you show that you know things that they are proud about their
countries, like Chopin.
ADVICES TO SUCCED IN POLAND:
The Poland Businessman: Direct, Cultivated, Hospitable, Demanding.
Define a development strategy:
a) To position, concentrate on the selected market and not to disperse.
b) to take note and to prepare the approach of the market (population, religion,
organization, tradition, cultures…).
Not to duplicate in Poland what goes to France without holding account of
Take care of the presentation
Prove your interest
Be careful to the “unvoiced comment”
Integrate the human aspects.
Give time and the means (6 to 18 month for ROI).
Speak at least English.
Provide documentation on your company.
Be vigilant on the solvency of your partner.
Open market Bureaucracy
Smartness Miss of productivity
Open mind of the young polish
Poland is one of the youngest countries in Europe : less than 35% of Poles are under
25 years of age! Poland has a productive, efficiency oriented, motivated and highly
skilled labour force with wages significantly lower compared to Western countries. It
costs just $3 an hour to employ a skilled polish worker, much lower than $20 with a
French one! I made a graph here, which represents the labour productivity growth in
2004. Poland is ranked one, 50% better than United States!
For Poland, integration with the EU allows them to accelerate their economic and
- better access for Polish goods & services to the EU market
- increasing the investment attractiveness of Poland
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- improving Poland’s ratings on international financial markets
- the import of modern technologies, thus improving quality
- more possibilities for business co-operation and contacts with EU partners
- Harmonization of Polish laws with those of the EU
The biggest and most dynamic market in Central Europe
Poland is the largest economy in Central Europe
Poland market (40M customers) is larger than those f the Czech Republic, Slovakia
and Hungary combined!
Poland’s average GDP growth amounted to 4,5% in the last 10 years, one of the
most impressive growth rates in the world!
Western demand pattern
In consequence, a large middle class has emerged with the disposable income to
afford a wide range of consumer goods and services. Thus the consumer goods
market is booming, driven by an improvement in standards of living and increased
purchasing power of the population
Bridge between West and East
Poland is a cultural, historical and political bridge between Western and Eastern
Europe. It provides the investors with the opportunity to reach both the developed
markets of the EU and the emerging markets of Central Europe. They can also
benefit from our experience in doing business with the East of Europe
The infrastructure has been improved over the last 10 years to catch up with the
European standards : sea, road, train, air, telecommunications network, etc etc
Investment friendly environment
Poland is politically stable country. Since the return to democracy in 1989, there have
been no serious domestic conflicts, either ethnic or religions
Integration with the world economy
Poland plays a stabilizing role in the region. Membership in NATO (1999) evidenced
the change of political situation, while OECD and WTO accepted Poland as a newly
emerged, fast-growing market economy
Tax incentives in Special Economic Zones
If you chose to invest in a Special Economic Zone, your revenue from business
activities conducted in the zone will be exempted from income tax
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The privatization process of the polish companies was accompanied by a
transformation of Polish industry, in particular under the impulse of the foreign
investors. The development of competition and the evolutions of demand required
the replacement of the traditional bureaucratic structures by the installation of
organizations combining versatility and flexibility. The problems quality is gradually
introduced within the Polish companies, which revolutionizes mentalities and upsets
the organization of the companies. The concept of quality gets along however here
like "total quality: application of the standards ISO 9000, reengineering,
benchmarking. Quality was one of the weak points of the companies under
Communism, and it is with sorrow that the Polish firms manage to demolish
themselves of their practices of "not-quality". Handicapped by their communist
heritage, the Polish companies prove indeed not very competitive. The productivity is
limited by the time and energy lost because of the bureaucratic character of the
structures of the companies, source of bad organization of work and of insufficient
circulation of internal information and coming from outside. In addition, the over
consumption of raw materials and energy harms competitiveness, even if Poland is
rich in energy resources. Lastly, the innovation is slowed down by the insufficient co-
operation between the local institutes of research and development and industry and
SME do not have capacity of financing sufficient to ensure their development.
However, Poland is one of the most interesting European countries to invest because
of the resources and the opportunities.
Finally, the press in Poland is very powerful: For example, the influence of the
famous Gazeta Wiborcza, newspaper which belongs to Agora, the largest media
group in Poland, has the power to make or stop political career. The advertising is
considered as a strong stimulating at the purchase, especially for the launch of
Western products or brands.
To conclude, Poland is probably the most interesting new European country to invest,
because Polish economy is in full rise with a increase of 6% of the GDP. The
European Market is open to the polish companies which are ready to invest and to
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By by Kevin Knight, Chatchai & Francisco Saavedra
Strategic Marketing Management
With an importance continually emphasized throughout management literature, one becomes aware of power in
cultural differences across ‘boarders’. One’s first step as a marketer wishing to access a new market (in foreign
territory) is the need to identify and understand the importance of cultural integration and its impact on
marketing and advertising.3 Indeed; cultural variation has been long examined from both academic and
professional perspectives with concern towards consumer and employee behaviour. Hofsted has provided an
insight into the subject matter with his identification of five factors influencing such behaviour; a strong
understanding can provide an increased marketing efficiency. Our interpretation of past academic findings
provides the base of the information delivered within following report, whereby the Portuguese marketplace is
examined from a cultural behaviour perspective.
[Power Distance], [Individualism Vs Collectivism], [Quantity of Life Vs Quality of Life], [Uncertainty
Avoidance], [Long-Term Vs Short-Term]. An affective answer can only be found once the presence of religion
has been acknowledged and identified.
Following to the study ,in Portugal that has over 50% of its population practicing the Catholic religion, it is
founded that the primary correlating Hofstede Dimension to be Uncertainty Avoidance (UAI) This creates a
highly rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of
uncertainty within the population. And there is also tend to be High Power Distance among European countries.
These societies are more likely to follow a caste system that does not allow significant upward mobility of its
While the framework can provide an advantageous insight, there are further implications, which affect a
marketing strategy. We are now going to define the Portuguese core beliefs of Portuguese people and then their
By history and tradition, Portugal is a catholic country, and religion is a kind of “life guide” in
terms of education roles, government administration and social life. Family has also a huge
importance for Portuguese in term of dependence and social life. Finally the last core belief
would be stationarity. People weren’t use to live with mobility. They use to live traditionally.
Because literacy and education has increased, the Portuguese sees mobility as a very important way of life. It has
already become a secondary belief. The religion has changed its role. It’s no more seen as an education and
guide of life, but just as religion. And finally, the family role, has also changed in responsibilities, such as seen
by western European countries. We see more and more single people rising.
Statement taken exactly, from http://www.geert-hofstede.com/marketing.shtml
Page 43 of 62
Once an investigation of cultural implications has been established, marketers are better positioned to market
within the desired destination. This paper has introduced the reader into existing frameworks and findings to
provide a foundation of knowledge, whereby, further research may begin from the guidance provided.
Page 44 of 62
By Boursier Gaelle & Valensi Neil
Capital: Bucharest Area: 238,391 sq.km.
Area: 228 sq.km. Population: 21,700,000
Population: 1.9 million Counties: 41
GDP growth: 2004: 5,6%
Inflation rate: 2004: 9%
Unemployment rate: 2002: 8,1%
Trade exchange: 2002: - 3986
2003: - 6385.1
FDI annual inflows: 2003: 1574
At the end of July 2004, FDI Inflow increased by 37% as against the same period of
2003, reaching around USD 1600 million.
Advantages of doing business in Romania:
Absence of linguistic barriers
• The English language is spoken by everyone working in the IT&C sector.
• Good knowledge of German language due to cultural and historical reasons
(German minority in Transylvania etc).
• The French, Spanish and Italian language has Latin origin, such as the
• Good frequency of persons speaking Russian, Hungarian, Greek, Turkish,
Ukrainian, Bulgarian, Serbian and other European languages.
In force (regulations and laws, consistent with those in the EU):
• electronic commerce
• electronic signature
• e-tax and e-procurement
• intellectual property rights
• protection of private data
• access to public information
• cyber crime
Page 45 of 62
• transparency at governmental level through electronic means
• Web Accessibility Initiative
• “Look and Feel Standard” for governmental web sites
Foreign investor’s rights
• foreign investment allowed in all sectors of the economy;
• possibility to freely manage the company with full ownership rights;
• full repatriation of capital and profits;
• protection against expropriation and nationalization;
• national treatment for foreign investors;
Reasons to invest in Romania
represents the largest market in SE Europe
characterized by political stability and consensus for EU accession
has sustainable economic growth and declining inflation
has the highest GDP growth rate in the region
is committed to develop a modern economy
was granted by the USA the “Market Economy” status and “Country of the
year” by USTDA
possess competitive high skilled labor force
is committed to continuously improve the infrastructure quality
is granting incentives to foreign investors
has a competitive location, bridging East & West, North & South
The IT&C market
Products and services 2000 2001 2002 2003 2004
Computing equipment 400 460 552 662 794
515 570 684 820 984
Components 632 711 853 1023 1228
Office equipment 16 24 29 35 42
Control and metering
122 132 198 297 445
150 200 240 288 345
IT& C sector in Romania
Page 46 of 62
Expansion of the internal market: 15-20% / year, higher than the GDP growth
(4.5% last year).
Expansion of the IT export: 50-60% / year, higher than total export growth rate
(21.8% last year).
Targets: USD 1 billion, export in 2004 through more aggressive marketing.
Export is a big chance for this sector and for Romanian economy.
SWOT analysis of IT&C sector
Good quality human resource in the sector ;
High qualification level of the working force in big number : among the first in
the world as number of certified specialists in informatics according to “Brain-
Bench”-Global IT IQ report (16 122 diplomas in 2001)
Labor force relatively cheap;
The economy adapting to EU integration and more and more interconnected
with the European economic flows ;
National infrastructure sufficiently developed;
Universities centres dynamics and spread uniformly in the regions;
Supportive Government for the sector in certain key areas.
Romanian business environment still to be improved.
Lack of synchronization between companies, research institutions and public
Little knowledge about foreign markets.
Lack of coagulation at national level of the associations of industries.
Lack of understanding about quality and certification.
Lack of Romanian brands and a national brand for this sector.
Romania is part of EU integration and extension process.
EU attaches great importance to the new economy and to the IT&C sector.
Increase of the managerial and marketing abilities.
Existence of relatively developed electronic and automatic industries which
can be integrated in the sector to meet the digitalization challenges.
Good knowledge of foreign languages which might give opportunities to
develop delocalized call centers and other IT&C services.
Lack of market information and marketing skills.
Lack of coherent sector image.
Lack of networking within the industry.
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Human resources for off-shore outsourcing
Workforce engaged in software export activities: 3,460 (2000) and 4,700
(2002), around 1/4 of total industry employees.
Total software and services industry personnel : 25,000 (2004)
Universities IT graduates yearly: 5,000-6,000.
50% to 66% join the IT industry: 4,800 companies - software and services
370 companies exporting IT services.
250 companies exclusively dedicated to export (> 90% of turnover).
70% of total export.
Attractive and competitive business environment
Romania is ranked before Poland - International Institute for Development
Management, IDM (Lausanne, Switzerland), “world’s competitiveness ranking” study
• GDP’s rate of growth = 5%.
Software industry rate of growth > 25%
Software exports rate of growth > 50%
• Standards of mobile telecommunications: GSM, CDMA & UMTS
• Decrease of piracy rate by 20% Romanian Microsoft branch holds one of the
first places in the world in terms of rate of growth
Developing the infrastructure through industrial parks
Purpose: stimulate the investments for the improvement of the regional
economic infrastructure, especially industrial, scientific and technological
Period of implementation: 2002-2005
Funds allocated from the state budget: ROL 583 billion
Program type: co-financing
The state offers:
- Grants for the beneficiaries;
- Technical assistance for implementing and monitoring the project.
Benefits for entrepreneurs:
- Good location
- Facilities when using the infrastructure and communications
- Payment rates guaranteed by the administrator for a determined period
- Lower fees or free of charge policy for certain services
Export promotion services for IT&C
Efficient management of the outside commercial representatives and of the
business flows in – out and out- in;
Putting in touch outside businesses with inside companies, mainly exporters;
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Assisting in many ways participation in international fairs and exhibition;
Assisting or organizing trade missions abroad;
Study of markets, strategies for target markets;
Regional or branch marketing;
Benchmarking for best promotional practices;
Advisory and consultancy activities for exporters;
Partnerships for export promotion ;
Attracting foreign assistance in export promotion activities;
Trade agreements and turning into account of their provisions in the benefits
Instruments to stimulate IT&C exports by the public sector
From the budget (bounds, direct or indirect payments to exporters);
Fiscal instruments (exemptions, reduction of taxes);
Banking and financial instruments of Eximbank;
Macro-intervention for legal framework (international agreements), trade
representation network, assistance to the businesses etc.
Page 49 of 62
By Anna Marinova & Tanya Hernández
Page 50 of 62
•Area: 49 035 km2
•Time zone: GMT + 1 hour
•Borders: Hungary, Poland, Austria,
Czech Republic, Ukraine
•Administrative divisions on 8 regions
•Languages: Slovak (official), Hungarian
•Religions: Roman Catholic 60.3%, atheist 9.7%,
Protestant 8.4%, Orthodox 4.1%, other 17.5%
•Minority groups: Slovak nationality - 85.5%
Hungarian - 9.7%
Roma - 1.7%
Czech - 0.8%
Others - 2.0%
•Currency: Slovak crown (SKK)
•Exchange rate of the NBS: EUR/SKK 40,822
•Purchasing Power Parity: $72.29 billion (2003
•Purchasing Power Parity: $13,300 (2003 est.)
•Yearly inflation rate 8.3%
•Unemployment Rate in 2003 averaged 15.2%
•Yearly GDP Growth
Political & Legal Environment
•Political system: parliamentary democracy
–Member of OECD - Dec 2000
–Member of the NATO and EU - May 2004
•Legal system: Civil law system based on Austro-
•Protection lows from the EU – price fixing,
•Slovak export and import to selected countries monopolies
•6 International Airports
•Railway network - 3 665 km of railways
•Road network - total length 297 km
Page 51 of 62
•Ship transport -172 km (on Danube River) (2004)
Why invest ?
•Low Income Tax Rate is 19%
•Availability of highly skilled workforce
•Low Labor Cost – 3.26 euro/h
•Strategic Position – geographical, access to 350
million people market
•Several principal transport routes, oil and gas
pipelines cross the territory of Slovakia
Agriculture Products - Grains, potatoes, sugar
beets, hops, fruit; pigs, cattle, poultry; forest
Industries - metal and metal products; food and
beverages; electricity, gas, oil, nuclear fuel;
chemicals; machinery; paper…
Services - Technology & Communications…
Technology & Communications
•Telephone operators :
Main lines - 1,294,700
•Mobile Telephones - 3,678,800
•Internet Providers – 6
–AstraCom Technologies SR, s.r.o
Convergence of Information and Communication –AT&T Global Network Services Slovakia
Technologies –Intercomp Services
•134 048 Telecommunications Internet
•63 533 Households
•Households connected to Internet was 3,81%
“B to B” 468 companies
Page 52 of 62
Per d annual
199 200 thous growth
Domains 1996 Numbe
8 0 and rate %
Poland pl 53.0 131.0 340.0 489.9 12.7 56.0
Romania ro 7.8 23.5 41.5 46.3 2.1 42.7
yu 2.5 7.7 15.0 15.7 1.5 43.9
Slovakia sk 7.9 22.1 37.9 72.6 13.4 55.8
Slovenia si 13.8 22.9 21.9 29.6 14.8 16.5
High Creativity in Mobile Uneven distribution telecom
telecom and Internet services equipment and
sectors skills among social groups
High penetration of personal and geographical
computers in households areas
given income levels High fixed telephone and
High share of internet use internet tariffs for
given income levels citizens
Rrecognition of Internet as a Prevalence of low-speed
prospective investment connections due to policies of
the dominant operator
Universal service legislation Fragmentation of government
New legal framework for e- resources and
business “Acquis 2003” Social economic division
Relatively new “advertising” in Corruption
Page 53 of 62
by Julien Froment & Perla Sitruck
Area: 20,251 sq KMPresident: Janez Drnovsek (elected in November 2002)
Population: 1, 99 million Prime minister: Anton Rop
Slovenia emerged from the communist bloc, now the country's living standards
higher than Portugal and Greece. And Slovenia is the richest East European
Country. But it’s also one of the smallest countries in central Europe.
Slovenia has a 47-kilometre coastline on the Adriatic. It's principal port is Koper.
It joined the European Union in May 2004.
Just a couple of months before EU entry, Slovenia became a member of Nato.
GDP (US Bn): 27,7
GDP growth: 2,5 %
Consumer inflation: 5,6 %
Unemployment: 6.4 %
Largest company 1994
- Revoz Car production
- Petrol Trgovina oil and gaz distribution
- Eles Electricity distribution
- PTT Post and telecommunication
- Gorenje , White goods
Establishing a business presence
Slovenia possessing a very small agricultural and a large industrial sector. A small
privately owned sector, full employment, and a relatively well-educated labor force.
Slovenia has a widely diversified industrial base. One of Slovenia's main sectors is
pharmaceutical, which is dominated by Lek and Krka.
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Wages in Slovenia is high relative to the rest of Eastern Europe. A large number of
factories producing vehicle components (windscreens, seats …). Slovenia is also
home to one major car factory Renault. The country has few natural resources.
Origins of gross domestic product 2003
Agriculture : 3 %
Manufacturing : 28 %
Construction : 6%
Electricity : 3 %
Mining : 1 %
Services : 52 %
Foreign companies regard the political risk of investing in Slovenia as too high.
Another obstacle to foreign investment was the country's privatization scheme
(important incentives to employees to buy shares)
Slovenia needs to continue the stabilization policies and continue building free
market institutions and legislations, privatization and restructuring are the most
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By Grégory HOLBACH & Idriss TOUNKARA
•Area : 504.782 sq km
• Coastline : 4964 km
• Common borders with: Andorra, France, Gibraltar, Portugal and Morocco
• Natural ressources : coal, lignite, iron ore, uranium, hydropower, arable land.
• 19 autonomous communities, the most economicaly important are Andalucia
, Catalunia and Madrid.
•Population : 40.280.780 (July 2004)
• Age Structure :
from 0 to 14 year old : 14 %
from 15 to 64 year old : 68 %
up to 65 year old : 18 %
• Median Age : 39.1
•Growth Rate : 0.16 %
•Life Expectancy : 79.52
•Religion : Roman Catholic: 94 % other 6 %
•Official Language :
Castilian represent 74 %
Catalan represent 17 %
Galician represent 7 %
Basque represent 2 %
•Literacy : 97.9 %
•Constitution of December 6th 1978
•Chief of State: King Juan Carlos I
•Chief of Government: José Luis Rodriguez Zapatero (PSOE)
•National Assembly: 52.29% of PSOE
Plans to :
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•Reduce Government intervention in business
•Combat tax fraude
•Support innovation and R&D
THE SPANISH ECONOMY
Currency : Euro €
Groos Domestic Product (2003)
•Total: 885.5 billion $
•Rate : + 2.4 %
•Per person : 22.000 $
Services represent : 67 %
Industry represent : 29 %
Agriculture represent : 4 %
Inflation rate : 3%
Unemployement rate : 11.3 %
Labour Force Composition :
In Services : 64 %
In Industry : 24 %
In Agriculture : 7 %
Current Account Balance : -23.77 billion $
Public Debt: 62.7 % of GDP
Exportation Partners: France>Germany>Italy>UK>Portugal>US
Importation Partners: France>Germany>Italy>UK>The Netherlands
Budget : Revenues = 330.7 billions $
Expenditures = 335.3 billions $
Investment (Gross fixed) = 25.6% of GDP
(much more than in France, Germany or Norway
Corporate tax : 35%
Fiscal year : calendar year
Telephones - main lines in use:
Telephones - mobile cellular:
Internet country code: .es
9.789 million (2003)
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total: 663,795 km
paved: 657,157 km (including 10,317 km of expressways)
unpaved: 6,638 km (1999)
Ports and harbors:
Aviles, Barcelona, Bilbao, Cadiz, Cartagena, Castellon de la Plana, Ceuta,
Huelva, A Coruna, Las Palmas (Canary Islands), Malaga, Melilla, Pasajes,
Gijon, Santa Cruz de Tenerife (Canary Islands), Santander, Tarragona,
156 (2003 est.)
Example of a Spanish company succeeding in the whole world:
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By Emmanuel Jardin & Daphné Ribière
Country presentation :
Area : 450,000 km 2 (174,000 sq. mi.) The same as Iraq, Cameroon, Spain or
Main cities : Stockholm, Göteborg, Malmö
Number of inhabitants : 8.85 million
Official language: Swedish
Four season : spring, summer, autumn and winter
Form of government : constitutional monarchy; unicameral
Religion : Evangelical Lutheran (94%), Roman
Catholic (1.5%), Other (4.5%)
Business climat :
Currency : Swedish Krona
GDP per capita : 26966 dollars (2002)
Growth : 1.3 % (2003)
Inflation : 1.4 % (2004)
Unemployment : 6,5 % (2003)
Employment structure : Services 59%, Industry 39%
Current account balance : $ 19,560,000,000
Market opportunities :
- Forest products 13,5 % - Forest products 3,5 %
- Mining industries 8,5 % - Mining industries 8,1 %
- Chemical industries 12,8 % - Chemical industries 12,5 %
- Energy products 3,2 % - Energy products 9,5 %
- Mechanical engineering industries 50,5 - Mechanical engineering industries
% 45,5 %
- Other products 11,4 % - Other products 20,8 %
January-November, 2003 :
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- The United States 11,4 % - Germany 18,7 %
- Germany 10,1 % - Denmark 9 %
- Norway 8,4 % - United Kingdom 8 %
- United Kingdom 7,8 % - Norway 8 %
- Denmark 6,4 % - Netherlands 6,8 %
- Finland 5,8 % - Finland 5,6 %
- Netherlands 5 % - France 5,5 %
- France 4,9 % - Belgium 4,2 %
January-November, 2003 :
Access to the market : Member of the EU (duty, rules and regulations) from 1995.
No member of the Monetary Union
Main businesses in Stockolm
Taxes : The VAT is 25 %
Exceptions : foodstuffs products (12 %) and books and magazines (6 %). Rate of
corporate tax : 28 %
Culture : Punctuality, quality and price
Business currencies : Euro, USD o Swedish Krona
Laws : Many laws protect consumers
Other relevant information :
Ports and harbors : Gavle, Goteborg, Halmstad, Helsingborg,
Hudiksvall, Kalmar, Karlshamn, Lulea, Malmo,
Solvesborg, Stockholm, Sundsvall
Railway : 11,481 km (14,268 km for Spain)
Highways : 212,402 km (663,795 km)
Airports : 154 (95)
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By Fabien Durand, Diana Del Molino & Miriam Trillo
United Kingdom of Great Britain includes : England, Scotland, Wales, Nothern Ireland
Population: 60,270,708 (2004)
Economical datas (2003):
GDP growth: 2.2%
GDP composition by sector:
Investment: 16.2% of GDP
Exports - commodities: manufactured goods, fuels, chemicals; food, beverages,
Imports - commodities: manufactured goods, machinery, fuels; foodstuffs
- Provides fast, low-cost delivery in Europe
- UK’s freeway links industrial centres to air and seaports
- The Channel Tunnel links the UK by road and rail to the rest of Europe
- UK’s business environment gives every incentive for companies to grow,
innovate and compete in a global marketplace.
- UK is the most favoured inward investment location in Europe
- Attracting around 40 % of Japanese, US and Asian investment into the EU
- Excellent base to access the European market
Tax & Labour Market :
2 major competitives advantages to invest in UK:
Corporate rate is the lowest from western european countries :
21% < € 435,000 - £300,000 (net profits) 34,3% in France
33% > € 435,000 - £300,000 (net profits)
Liberal labour market: allow employer to adjust easily their labor cost, which
means the ability to fire employees without difficulty and at low cost.
- flexibility of administrations toward economic actors
- flexible job legislation
Good knowledge of english:
- language, culture, humour, cynicism, understatement
- ‘‘yes’’ = maybe ; ‘‘it is very interesting’’ = no thanks
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- avoid speaking about Europe before knowing opinion of the interlocutor
- be patient
no foreign product can, by definition, being better than a British product
- cannot convince a British, at most can persuade it
- necessary to relaunch often your British partners, consistently help
them selling your products well
Get to know your competitors quickly: go to professionnal fairs
- Best way to measure the market in a little time
- Advantage of fairs in UK: accommodate primarly british, while the
exhibitors areyour british and foreign competitors
Specific argumentaire of sale: ask a british company of public relations
- British = non-cartesian tradition which is different from continent
Nothing is sold better than a British product whose qualities are praised by a
- Best technique = conclude a joint venture with a British partner
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