Transcript Doing business in Italy

DOING BUSINESS IN ITALY
Irfan Ali
Christopher Kamt
Chong (Susie) Park
Asahi Suzuki
Introduction




Southern European
Country.
Western Side of the
European Continent
Sicily and Sardinia islands.
Etruscan, Roman, and
Greek Civilizations
influences
Culture
Largely homogeneous in
language and religion
 Diverse: culturally,
economically, and
politically
 Roman, Greek,
Germanic, Celtic,
Norman cultures mixed
up in Italy

Religion
87% of the Italian
population selfidentify as Roman
Catholic
 Famous Roman
Catholic churches
 Vatican City

Language

The official language of Italy
is the Standard Italian, a
direct descendant of Latin

75% of Italian words are of
Latin origin

Variations in the form of
accents and vowel emphasis

Standard Italian is fully
comprehensible to all
throughout the country
Business Culture
Appearance
Fashion design are trademarks of Italy.
Therefore, in the business world, good
clothes are a signature of success.
Men should wear fashionable, high qualit
y suits.
Shirts may be colored or pin-striped wit
h an Italian designer tie.
Women dress in quiet, expensive elegan
ce.
Quality accessories such as shoes and
leather goods will make a good impressi
on with the Italians.
Business Culture Cont
Behavior
“Time is money” is not a common phras
e in Italy.
Foreign businessmen/women should be
punctual for business appointments.
Handshakes are common for both sexes
.
Do not expect quick decisions or action
s to take place.
Italian companies often have a rigid
hierarchy.
It is common for everyone to speak
simultaneously at Italian gatherings.
Do not exchange business cards at soci
Business Culture Cont
Behavior
Italians often have two different business
cards.
Italian cards are often plain white with
black print.
When entering a business function, the
most senior or eldest person present
should always be given special treatment.
When invited to someone’s home, bring
gift-wrapped chocolates, pastries, or
flowers.
If you bring wine as a gift, make sure that
it is of excellent vintage.
Avoid giving anything in a quantity of 17.
Business Culture Cont
Communications or Conversational
Topics
English is spoken by many businesspeople.
Avoid talking about religion, politics, and
World War II.
At social gatherings, it is considered
insulting to ask someone you have just
met about their profession.
Good conversational topics include Italian
culture, art, food, wine, family, and films.
Politics

Parliamentary
democratic republic

House of Freedom
(Silvio Berlusconi)

The Union (Romano
Prodi)
Foreign Investments
Open to foreign investments with few
exceptions
 Same treatment as local firms
 Full foreign ownership
 Benefits are given in form of grants and
loans
 Additional incentives are offered for
investments in suffering regions

R&D, Exports, and Free Trade Zones

R&D – easy term loans and grants

Exports – low interest loans

Free Trade Zones – tax exemption, foreign
employment
Market Share
Before World War II
agriculture
 Since 1950-1990
Industrial 35%
Agriculture 4%
 Diversification from
Food to Textiles to
Automotive to Tourism

GDP/GNP & Trade






GDP/GNP (2004)
$1.609 Trillion
GDP per Capita
$27,700
Exports $336.4 billion
Imports $329.3 billion
External Debt $0.00
Part of EU & G-7
Italian Designers

Armani Collections


Rich Textile
Exceptional Craftsmanship
Super Motor Vehicles

Maserati


Ferrari



Power
World Renown
Super Fast
Lamborghini

Desired Automotive
Imports & Exports

Exports: $371.9
billion
beverages
 motor vehicles
 textiles and clothing


Imports: $369.2
billion



beverages
transport equipment
textiles and clothing
Positioning
Member of G8
 Depending on exporting
manufactured goods.
 Developed industrial
north and less developed
agricultural south.
 Lower interest and
inflation rates.
 15% of unemployment at
south

Economies of Scope

Highly dependant on
exporting brand name
products.
Ferrari
 Frattli Prada
 Giorgio Armani

Inroads in to China
• Set up 30 stores in
China by 2008
•
Conclusions
Italy ranked as the sixth largest economy worldwide in
2004, and is a member of G8 (G7 plus Russia). Foreign
companies have low interest loans. Italy is open to
foreign investments where full foreign ownership of
Italian companies is allowed. And unemployment in the
south can become a good source of human resources
(labor).
Italy has a very similar business culture as United States of
America. Businessmen/women speak English also. This
permits a better understanding between business
partners.
Italy already has a limit on TV advertising, but some
companies are doing a really good profit in Italy. One of
the great examples of International companies is of CocaCola. Italy is one of the largest markets of Coca-Cola.