Transcript Group 3 Second Presentation

By: Dennis, Chris, Sean, Matt
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100th smallest country in the world
Population is around 7,353,985 (growth rate
is 1.6%
Life expectancy is 81 years of age
Jerusalem is the capital city with population
of 695,500
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Land area: 7,849 sq mi; total area: 8,019 sq
mi
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Lies on the eastern coast of the Mediterranean.
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260 miles in range from north to south and 60
miles from east to west.
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Shares borders with Arab nations of Lebanon,
Syria, Jordan, and Egypt.
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Landscape ranges from mountains to plains with
more than 15 distinct geographical regions.
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Has fertile green areas and also has vast desert
areas.
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http://www.youtube.com/watch?v=LaOnWAF
4xsA&feature=related
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JULY 1882
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1883
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1909
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1910
Beginning of First Aliyah, BILU pioneers arrive in
Palestine
Baron Edmond de Rothschild begins support of
Jewish settlement in Palestine; Founding of
Hovevei Tzion movement in Odessa
Founding of Tel Aviv - the first modern all-Jewish
city
Founding of Degania - the first Kibbutz
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NOVEMBER 1917
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DECEMBER 1917
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1936-1939
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MAY 1948
British issue Balfour Declaration, recognizing the
right to a Jewish homeland in Palestine
British conquest of Palestine
Arab revolt
Creation of the State of Israel; U.S. and Soviet
Union extend recognition; Creation of Israel
Defense Forces
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Hebrew word for communal settlement.
A unique community or society dedicate to
mutual aid and social justice.
Socioeconomic system based on the principle
of joint ownership of property, equality, and
cooperation of production, consumption, and
education.
The idea that everyone has a specific talent
and it is used for the good of all. This is very
specific to the Jewish people.
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Kibbutz is like the total overall attitude of the
Jewish people. The group is more important than
the individual.
Even early settlers in Palestine believed in this
socialistic approach to help them settle land and
establish their community.
Most all decisions are made by the committees of
which the secretary is the highest position in the
Kibbutz. Other positions include treasurer and
work coordinator are all full-time, while others
help on committees in addition to their other
jobs.
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Members are assigned to positions for various
lengths of time, while routine functions (kitchen
and dining hall duty) are performed on rotation.
Each branch of the Kibbutz has an economic
coordinator in charge of organizing the work of
the different branches and for implementing
production and investment plans.
Women are equal participants in the labor force
but tend to stay away from more traditional male
roles such as agriculture and industry. They stick
to education, healthcare, and other services.
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http://www.youtube.com/watch?v=D5aPU7K
WqJw&feature=related
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Israelis are main nationality
Jews and Arabs major ethnicity followed by
Americans and Circassians
Main language spoken is Hebrew and Arabic
followed by English and Russian.
Religion
Jewish
Muslim
Unclassified by choice
Christian
Druze
Population
5,569,200
1,240,000
289,800
153,100
121,900
% of total
75.5%
16.8%
3.9%
2.1%
1.7%
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Israel is governed by a multi-party parliamentary system. The President
of the state of Israel fulfills mainly ceremonial duties and is not a part of
the three branches of government.
Current President: Shimon Peres
1. The legislative authority: The Knesset (Israel’s Parliament), includes
120 members elected for a term of four years in nationwide elections.
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2. The executive authority: The government headed by the Prime
Minister. The Prime Minister is elected in nationwide elections for a
period of four years. All recent governments were formed by a coalition
of parties. The Ministers that head the government ministries are
appointed by the Prime Minister generally from among the ranks of the
parties in the coalition.
Prime Minister: Benjamin Netanyahu
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3. Judicial branch
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Israel plays host to many different religions so
business practices are tailored toward those.
First meeting business dress is expected or how
you would dress in your home country but after
first meeting business casual (polo shirt and nice
pants) is preferred.
Know colleagues religious views - dress code
differs for business people interacting with
religious Israeli colleagues. In this case, business
people should dress conservatively. Women
should cover their elbows and knees. Men
should wear white shirts and dark suits.
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Know language and if at all possible have a
translator to help break that barrier.
Always have an agenda since Israelis have
such hectic schedules.
Use sir names to address someone but then
quickly move to first names to make the
meeting more comfortable.
Also Israelis love to talk and love to talk
about you so feel free to speak about yourself
to make the atmosphere more comfortable.
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The official work week is Sunday to Thursday.
The Jewish Sabbath starts at sunset on Friday
and lasts until sunset on Saturday. Muslims
do not work on Friday. Some Christians do
not work on Sunday.
Expect to be interrupted. Israelis do not see
this as rude. Israelis speak in a
straightforward way and sometimes answer
questions that were asked of someone else.
Please do not be offended by this speech
pattern.
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Provide engraved business cards. They will
impress your Israeli colleagues. Please
thoroughly read any business cards that you
receive before putting them away. Go that
extra mile and impress your Israeli colleagues
by providing them with a Hebrew translation
of all your pertinent documents.
Please print business materials in English.
This is the official language used in Israeli
business interactions.
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Meeting protocol varies depending on the religion of
your colleagues. If your colleagues practice Orthodox
Judaism, women should refrain from any physical
contact with males.
Please do not schedule meetings in September or
October. Many Jewish holidays occur in these months.
Also please be aware that business hours are
shortened for Muslims in the month of Ramadan.
During Ramadan, Muslims fast during daylight hours.
Please do not bring up the Arab-Israeli conflict or the
Holocaust when speaking with Israeli colleagues.
To avoid embarrassment, please be aware that many
Israelis keep kosher. Learn proper kosher practices.
You will not be served meat and dairy during the
same meal, nor will you be served pork or shellfish.
GDP
GDP
per capita
Industries
Israel
235 billion
Chile
249 billion
32,298 (27th)
14,412 (30th)
high technology
copper, fish
products (aviation),
processing,
communications, computer
steel,
aided design, manufacturing, iron, wood,
medical electronics, wood,
cement,
tobacco
textiles
Israel
Exports
Imports
machinery,
equipment,
cut diamonds,
agricultural products,
textiles, apparels
Chile
copper, fruit,
fish products,
chemicals,
electrical equip.,
paper, pulp,
wine
raw materials,
petroleum,
military equipment,
chemicals,
rough diamonds, fuels
electrical equip.,
consumer goods
telecom. equip.,
vehicles
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Economic growth rate is around .20% per year
for Israel and 1.70 per year for Chile
Unemployment rate is 7.60% for Israel and
9.60% for Chile
301,225 sq. km. about the size of Georgia and Florida combined
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Population about 60.6 million
5th highest population density in Europe (200 per
square kilometer)
Growth rate 0.04%
GDP 1.63 Trillion …
Euro = 1.33 US dollars
Natural resources: fish and natural gas
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16 year compulsory education
Literacy rate of 98%
Life Expectancy
Men 79.1 yrs
Women 84.3 yrs
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25 million
Services – 67%
Industry and commerce – 29%
Agriculture – 4%
Unemployment rate is 8.5%.
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Roman Catholic (majority)
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Poetry, Painting, sculpture, and architecture
da Vinci
Raphael
Fra Angelico
Michelangelo.
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WWI renounced its alliance with Germany and
Austria Hungry
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1922 Mussolini
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1940’s
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Italy has been a democratic republic since June 2,
1946, when the monarchy was abolished
The constitution came into force on January 1,
1948.
Giorgio Napolitano
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Began around the 1600’s
Monteverdi, Handel, Gluck, Mozart, Rossini, Bellini,
Donizetti, Verdi and Puccini
http://www.youtube.com/watch?v=c7O91GDWGPU
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Musical term originally applied to the instrumental
introduction to an opera
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Typically 5 minutes long
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Somber, cheerful, reflective …
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Quick, moderate, or slow
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North a little less
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South more involved (3rd times the charm)
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Animated and Expressive
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The crowds opinion
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Appearance
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Embellishing
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The finesse that Italians use to deal with
situations delicately without offence. Turning
life into a work of art.
La bella figura “confident, knowing, capable
face to the world”
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Wear good cloths, have a nice car, dine at
expensive restaurants
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“all citizens are invested with equal social
dignity”
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Civilta (norms include, style of dress,
manners, and participation in local
community)
Respect
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Their language is the most beautiful in the
world
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Bel canto
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Loud!
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Simultaneously
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Hands do talk in Italy!
Natural and instinctive movement the can be
understood
Small lies can be justified to give pleasure, provoke
emotion, or prove a point.
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Feelings a emotions need to be expressed
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How do you feel?
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Piazza
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No privacy
Piazza San Pietro
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257 inhabitants per café and restaurants in
Italy
451 Britain
558 Germany
778 Spain
795 France
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Close and emotional
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Pamper the children
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Important for handling problems
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Business and family
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Father and Mother
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The Italian economy has changed
dramatically since the end of World War II.
From an agriculturally based economy, it has
developed into an industrial state ranked as
the world's eighth-largest market economy.
Global market
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Italy continues to deal with budget deficits
and high public debt.
Italy's economic growth averaged only 0.8% in
the period 2001-2008
$363 billion in underground economy
transactions 18% GDP per year
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Clear, Exact and polished
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Italians expect good faith bargaining
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Foreign businessmen/women should be punctual for
business appointments, although the Italian executive
may not be.
Handshakes are common for both sexes, and may
include grasping the arm with the other hand.
Do not expect quick decisions or actions to take place
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Italian companies often have a rigid hierarchy
It is common for everyone to speak simultaneously
at Italian gatherings. This applies to business
meetings as well as social events.
Do not exchange business cards at social occasions
When entering a business function, the most senior
or eldest person present should always be given
special treatment.
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Fashions and fashion design are trademarks of
Italy. Therefore, in the business world, good
clothes are a signature of success.
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Men should wear fashionable, high quality suits.
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Shirts may be colored or pin-striped, and they should
be paired with an Italian designer tie.
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Women dress in quiet, expensive elegance.
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Quality accessories such as shoes and leather goods
will make a good impression with the Italians.
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Republic
756,945 sq. km
Population 17 million
GDP 250.9 billion
Class Structure
Chile
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Republic
301,225 sq. km
Population 66.6 million
GDP 1.63 Trillion
Loose Class structure
Italy
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First meeting build
relation ships
Schedule not very
Structured
Interruptions are
common
Chile
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North more straight to
the point, South need
to build a relationship
Never be Late
Everyone talks at the
same time
Italy
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Area: 32,547 square kilometers (12,566 sq.
mi.), about the size of Maryland.
Cities: Capital--Brussels (pop. 1,089,538).
Other cities--Antwerp (483,505); Ghent
(243,336); Charleroi (202,598); Liege (192,
504); Bruges (116,741); and Namur
(108,950).
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GDP (purchasing power parity, 2011 est.): €352 billion (approx. $467 billion).
Annual real growth rate (2011 est.): 2.5%.
Per capita income (PPP, 2010 est.): €35,238 (approx. $48,535).
Natural resource: Coal.
Agriculture: (1% of GDP) Products--livestock, including dairy cattle, grain,
sugarbeets, milk, tobacco, potatoes, and other fruits and vegetables.
Industry: (24.3% of GDP) Types--engineering and metal products, motor vehicle
assembly, transportation equipment, scientific instruments, processed food and
beverages, chemicals, basic metals, textiles, glass, petroleum.
Trade: Exports (2011 est.)--$263.7 billion: transportation equipment, diamonds,
metals and metal products, foodstuffs, chemicals. Export partners--Germany
19.6%, France 17.7%, Netherlands 11.8%, U.K. 7.2%, U.S. 5.4%, Italy 4.7%. Imports
(2010 est.)--$261 billion: machinery and equipment, chemicals, diamonds,
foodstuffs, pharmaceuticals, transportation equipment, oil products. Import
partners (2010 est.)--Netherlands 17.9%, Germany 17.1%, France 11.7%, Ireland
6.3%, U.S. 5.7%, U.K. 5.1%, China 4.1%.
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Population (July 2011): 10,431,477.
Annual population growth rate (2011): -0.04%.
Density: 830.1 per sq. mi.
Religions: Predominantly Roman Catholic, with
Protestant, Jewish, Muslim, Anglican, Greek and
Russian Orthodox, as well as secularism, "recognized"
religions receiving government subsidies.
Languages: Dutch, French, German. Linguistic
regions--(Dutch-speaking) Flanders 57.7%; (Frenchspeaking) Wallonia 31.6%; (legally bilingual) Brussels
Capital Region 10%; German-speaking 0.7%.
Education: Literacy--99%.
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Parliamentary democracy under a constitutional
monarch.
Independence: 1830.
Constitution: 1994 (revised).
Branches: Executive--King (head of state), Prime
Minister (head of government), Council of Ministers
(cabinet). Legislative--bicameral parliament (Senate
and House of Representatives).
Major political parties: Christian Democratic, Liberal,
Socialist, Green, Flemish nationalists (New Flemish
Alliance), Flemish far right (Vlaams Belang).
Suffrage: Over 18, compulsory.
Political subdivisions: Ten provinces, three regions,
three communities, 589 municipalities.
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http://www.youtube.com/watch?v=Rk7nFR9o
Bus
http://www.youtube.com/watch?v=Sxb2BPsSTw
s&feature=related
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Flemish lion a symbol
of resistance to French
domination for
hundreds of years.
Consider themselves to
be a nation.
Dutch Ancestry
Flemish
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Failed attempts at a
unified government
Wallonians consider
themselves Belgian.
Rooster symbol for the
Wallonian flag
French Ancestry
Wallonians
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http://www.youtube.com/watch?v=LSNnpD6
pRx0&feature=related
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Right to privacy and
own opinions held
sacred.
Very reserved
Homes are kept
under lock and key.
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Belgians tend to be
very individualistic.
Family meals highly
cherished.
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Number of Explicit
rules
Formal titles are used
in many business and
social settings
Monsier or Mijneer
for a man
Madame or Mevrow
for married woman
Mademoiselle or
Jevrow for single
woman
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With Flemish, use Mr.
Ms. Miss, or Mrs. in the
preferred form.
Freedom of religion
and thought is
recognized by the
Belgian Constitution.
The vast majority of
the Belgian population
profess to be Roman
Catholics. In Brussels,
most other Religions
are present.
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Schooling is compulsory
in Belgium between the
ages of 6 and 18.
However, from the age of
15, it is possible to
combine school
attendance with parttime work. The education
system in Belgium is
broadly organized as
follows:
Primary education,
lasting six years
(between the ages of 6
and 12), provided at a
primary school
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Secondary education,
also lasting six years
(from 12 to 18); a
distinction is made
between technical and
more general secondary
education
Higher (university) or
further education, lasting
from two to seven years,
depending on the course
of study
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With a rise in the
life expectancy,
40% of the
population is now
actively working
Standard of living
one of the highest
in Europe
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The standard
maximum working
week is 38 hours,
with a maximum of
8 hours per day.
A 15-minute break
must be given for
every 6 hours of
work
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Belgium’s
workforce is
characterized by its
labor ethics,
motivation, staff
loyalty and high
quality at both blue
and white collar
levels
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Subordinates refer to
managers using
formal titles and Last
Names
Wealth to be shared,
not flaunted
Tend to be more
cooperative in
nature.
No time limit for
eligibility for
unemployment
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Social right for every
person to have a
certain standard of
living
One of the Highest
Tax Rates in Western
Europe (Social
Programs)
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Handshakes are the
norm unless the
two parties are
good friends.
Shake Hands with
Everyone.
Gifts should be
given with every
meeting
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Almost all social
gatherings are
formal.
Wait until everyone
is served, then
eat/drink.
Always call before
visiting.
(The professor light
test) Green, Yellow,
Red
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The monarchy and Brussels are untouchable
European unification and the EU are to be
advocated without any reservation.
The authority of NATO and the American ally
may be the subject of frequent criticism
Prosperity is to be shared and not to be used
as justification for confrontation or class
struggle
Privacy and personal liberty are not to be
impeded in serious ways.
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Recognize their place in the EU as one of the
key players
Emphasize the role of coordinator and
peacemaker worldwide
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Making Global
Competitive Moves
in Belgium
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Actual and potential
global competitors
need to be
identified
Worldwide
competitive
strategy should be
developed for each
one
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Key choices include
(Attack, Avoiding
Direct Competition,
Cooperate, and
Acquire).
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Must determine what
specifically to attack
in a competitor
Simultaneous attack
can overwhelm both
you and competitor
Must make
competitor
accumulate loss-ofposition
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Must depend on long term sustainability
conditions that allow protection from global
competition.
Must predict what the other competition is
doing with their resources
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Joint ventures
Can possibly limit growth potential
Good for tackling a market that is not well
known.
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Most effective means of elimination the
competition
Fills out geographical coverage
Pay a premium for companies that
strengthens their position in key countries,
improve geographical balance, or strengthens
other aspects of global strategy
Population:
17.2 million
GDP (PPP):
$257.9 billion
5.3% growth
3.3% 5-year compound annual
growth
$15,002 per capita
Chile
Population:
10.4 million
GDP (PPP):
$ 467 billion
2.5% growth rate
 Per capita income (PPP, 2010
est.): €35,238 (approx.
$48,535).
Belgium
Capital: Santiago
Area: 302,778 square
miles (756,945 sq km)
Bordering
Countries: Peru and
Bolivia to the north and
Argentina to the east
Coastline: 3,998 miles
(6,435 km)
Highest Point: Nevado
Ojos del Salado at
22,572 feet (6,880 m)
Chile
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Area: 32,547 square
kilometers (12,566 sq.
mi.), about the size of
Maryland.
Cities: Capital--Brussels
(pop. 1,089,538). Other
cities--Antwerp
(483,505); Ghent
(243,336); Charleroi
(202,598); Liege (192,
504); Bruges (116,741);
and Namur (108,950).
Belgium
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Very agriculturally
based country
Chile is the home of
two Nobel Prize
winning poets,
Gabriela Mistral(1945),
and Pablo
Neruda(1971).
Main religion is
Roman-Catholic
Chile
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Country based heavily
in coal
Home to two famous
characters Pierot and
Tin-Tin
Main Religion is
Roman-Catholic
Belgium
Yip and Hult
1)
2)
3)
4)
5)
Building Global Market Participation
Designing Global Products and Services
Locating Global Activities
Creating Global Marketing
Making Global Competitive Moves
 Often the most forgotten, but certainly one of the most
important
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It means integrating competitive moves
across countries or regions rather than
making moves one country or region at a
time.
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Match the following key features with their
proper definition
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Cross-area subsidization
Use of counterparries in countries
Globally coordinated sequence of moves
Targeting of actual and potential global competitors
Developing plans for each competitor
Preemptive use of global strategy
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Short lecture
6 key features
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We will do #1 (subsidization) as an example
Group 1 – counterparries
Group 1 – sequence of moves
Group 2 – targeting competitors
Group 4 – plans for each competitor
Preemptive use of global strategy
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You will have a handout of the slides
10 minutes to collaborate
5 minutes to present
◦ Key feature
◦ Definition
◦ Your company / country
 How to apply this feature
 Struggling? Use other examples!!!

Using profits from one country or region in which
a business participates to subsidize competitive
actions in another country or region
This is perhaps the key requirement of a global
strategy
 Your other lever advantages cannot be fully
utilized unless you’re willing to do this
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and paramount to all global strategies is your ability to
constantly evaluate and make changes as needed
It’s a long-term portfolio strategy that needs short-term
modifications to perform best
Defending against a competitive attack in one
country or region by countering in another
country or region
 Such a move needs to be used where it will hurt
your competitor the most
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Quite often in the home country of each
The Cola Wars
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A company needs a large enough presence in
key countries and regions to be able to make a
counterparry effective
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Simultaneous or planned sequence in which
competitive moves are made in different
countries or regions in the same business
Globally integrated competitive strategy requires
that competitive moves be coordinated across
countries or regions in their timing
Not necessarily at the same time
Makes the best use of resources
Allows you to be better prepared for a counterattack
Gives the company leverage and EXPERIENCE
 Also adds to the company’s knowledge economy
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Identifying actual and potential global
competitors and selecting an overall posture—
attack, avoidance, cooperation, or acquisition—
for each
Targeting one competitor in many countries vs.
targeting several competitors in a few countries
 A multilocal approach to competitive strategy
usually results in targeting several competitors –
so select your targets based on a global view
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Remember Chapter 3???
1)
2)
3)
4)
Attack
 Global instead of local plan
 Sequential coordination -> not simultaneous
Avoid direct competition
 Simplest way is retreating into multilocal protected niches
 A globally coordinated approach to avoiding competition may hold
better hope of sustainability
Cooperate
 Via international joint ventures and alliances
 Can provide defenses and capabilities - but can also hinder
opportunities
 Hard enough as a wholly owned – but external partners?
Acquire
 The most effective means of eliminating competition.
 Added benefit of filling out geographic coverage.
 As you make acquisitions, be sure to identify and acquire with a
globally competitive mindset.
 Don’t look at what it can only do in the context of the specific country,
but rather how it strengthens your total global competitive advantage
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Analyze Strengths, Weaknesses, Opportunities, and
Threats for each global competitor in each major country
or region
 Then develop a competitive plan of action for each
country/region-competitor combination
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A more specific plan than just your individual global
competitors
Start with a SWOT analysis
 Then decide what to do
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Attack
Defend
Avoid direct competition
Stay out
Preempt
Cooperate
Acquire
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Being the first competitor to make use of a particular
element of global strategy—global market participation,
global products, global activity location, and global
marketing
First to reach global market participation gets the
advantage – and the benefit of scale
First to introduce a globally standardized product gets the
advantage of setting industry standards and customer
expectations and preferences
For activity location, the first to get there reaps early cost
and quality advantages that may be difficult for others to
match
First to global marketing can build image and preference
leads that are difficult to dislodge
Group 1 – counterparries
Group 1 – sequence of moves
Group 2 – targeting competitors
Group 4 – plans for each competitor
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Using profits from one country or region in
which a business participates to subsidize
competitive actions in another country or
region
Advantage cannot be exploited unless global
resources can be selectively focused on
points of competitive pressure or
opportunity.
Constantly reevaluate – must remain flexible
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European and North American markets strong
South American markets burgeoning
Take excess cash from your “cash-cows”
◦ Move it to jumpstart your “wildcats”
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Revaluate in an ongoing manner – be flexible
and ready to make changes!!!
But be careful! There are potential
demotivating factors of openly
acknowledging your “dogs” and “cash cows”
and “stars”
Group 1 – counterparries
Group 1 – sequence of moves
Group 2 – targeting competitors
Group 4 – plans for each competitor
Being the first competitor to make use of a
particular element of global strategy—global
market participation, global products, global
activity location, and global marketing
 First to reach global market participation
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McDonald’s
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First to introduce a globally standardized product
Hilton is an excellent example of this
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Activity location
Citibank & Banamex
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First to global marketing
Coca-Cola
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Require coordination and agreement among
country and/or regional managers.
In some cases it also requires country and/or region
sacrifices for the sake of the worldwide business.
Not making global competitive moves can be
particularly damaging in the long term for a
business’s worldwide competitive position.
 It is critical for senior management to design and
implement a system to both recognize the need
for globally integrated competitive moves and
achieve cooperation among different countries
and regions
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