Transcript Group 4 country presentation

Norway
Team 4:
Becky Tibbenham
Charlotte Windberg
Taylor Jameson
Matt Byler
Summary
 Introduction to Norway
 History
 Demographics
 Culture
 Culture and Business
 Government
 The Economy
 Business Schools
Tromsø
Norway: Climate
 Varies from north to south
and depends on elevation
January
July
Oslo
19
62
Sognefjellhytta
13
42
Tromsø
25
53
Sognefjellhytta
Oslo
Natural Resources
 Richly endowed with natural resources
 Petroleum
 Hydropower
 Fish
 Forestry
 Minerals and mining
 Highly dependent on petroleum sector
 Accounts for half of all exports and 30%+ of total state revenue
 Third-largest gas exporter in world
 Down to 7th globally in crude oil exporter as production declined
Environment
 Environmental Problems
 Water pollution
 Acid rain
 Air pollution
 Government Response
 “Norway is to be an international leader in environmental
policy”
 Working to achieve international agreement on climate
change
 Seeks global emissions cut 85% by 2050
 Wants to ensure polar regions monitored closely
History
 1814
 Part of Denmark
 Naval Blockade by King of Sweden
 Declared an independent country
 Joined with Sweden in union later in year
 1905
 Union was dissolved
 Norway became fully independent
History
 Remained neutral in both WWI and WWII, but occupied
by German forces for most WWII
 1960’s
 Discovery of Oil and Gas reserves
 Became very rich
 Fund extensive social welfare system
Demographics
 Death Rate: One of lowest in world(8.6 for 1,000)
 Women Average Life: 83.1 years
 Men Average Life: 78.6 years
 Birth Rate:10.9 births for 1,000 people
 Growth Rate: 0.33%
Demographics: Population
Norway
Men
Women
United States
0
200
400
(in millions)
Demographics: Population
By Age
Age 0-14
Age 15-64
Age 65+
Demographics: Ethnic Groups
 Five largest immigrant groups:
Polish, Swedish, Pakistani, Iraqi, Somali
 Other immigrant groups: Armenians, Greeks
 Ethnic Issues
 Integration: language problems
 Employment: unusual names do not get interviews
 Crime
Demographics: Class Structure
 Welfare state
 Equitable distribution of wealth
 Responsibility for the less fortunate
 Equal health care, pension, education
 Norwegian values: people, environment
 More equitable than in other countries
Demographics:
Family Structure and Roles
 Number of children: 75% have 1 or 2 siblings, 20% have 0
 Waiting longer: Average age 26 (up 3 years from 1970)
 Children live with biological parents
 Not necessarily married
 46% of children born to unwed parents (1995)
 Parents more physically present
 Maternity/Paternity Leave
 Ten days of leave per year to care for child
 Work-Life balance (less work hours)
Demographics: Religion
 When born, automatically added to list of Protestant
Christians unless “sign out” of the church.
 When baptized, registered as members of Church of
Norway
 Many remain in church to use services, which have
strong cultural standing




Baptism
Confirmation
Marriage
Burial
Demographics: Religion
 Christianity: Evangelical Lutheran Church (82.7%)
 Other religious or philosophical communities (8.6%)
 Roman Catholics
 Orthodox Christians
 Jews
 Hindus
 Buddhists
 Sikhs
 Non-religious (8.7%)
Demographics: Religion
 Least religious country in Western Europe
 Statistics:
 29% Believe in a church or deity
 70% Say they have faith
 32% Practice their faith
 12% Attend church services each month
 26% Atheist
Demographics: Education
 Graduation Rates
 Elementary: 100%
 High School: 90% (within 5 years)
 University: 70% attend, 41% graduate
 Literacy Rate: 99%
 Public education is free, so very few private schools
Demographics: Education
 Higher Education:
 Admissions: General University Admissions Certificate
 Types of Colleges
 Universities
 University Colleges
 Private Schools
Demographics: Education
 Universities: 70 total institutions
 7 universities
 9 specialized universities
 24 university colleges
 Various private university colleges
 Higher Education:
 90% Public Institutions
 10% Private Institutions
Demographics: Education
 Private Institutions
 Primarily in courses that have limited spots in public schools
 Most are foundations, either autonomous or religious
 Pay school fees equivalent to entire cost of education
 Norwegian Loan Fund System
 Apprenticeship Programs
Demographics: Employment
 1980: less than half of Norwegian women were employed
or active job seekers.
 Since 1972, weekly work time for men has decreased by
five hours (a.k.a. they work less)
 1970s to 1983/1984 recession, unemployment near 2%
 2009: unemployment was 3.2%
Demographic: Employment
 Majority of adult
population in Norway
is employed.
80%
 70% women work
50%
 80% men work
 2.3 million person
labor market
70%
60%
40%
30%
Women
20%
Men
10%
0%
United
States
Norway
Culture: Dimensions
Kluckhohn & Strodtbeck
Culture: Dimensions
Hofstede
Power Distance
Individualism
100
80
90
70
80
60
70
60
50
50
40
40
30
30
20
20
10
10
0
0
Norway
U.S.
U.K.
China
Norway
U.S.
U.K.
China
Culture: Dimensions
Hofstede
Masculinity
Uncertainty Avoidance Index
70
50
45
60
40
50
35
40
30
30
20
25
15
20
10
10
5
0
0
Norway
U.S.
U.K.
China
Norway
U.S.
U.K.
China
Culture: Dimensions
Hofstede
Long Term Orientation
120
100
80
60
40
20
0
Norway
U.S.
U.K.
China
Culture: Dimensions
Trompenaar & Hampden-Turner
Culture: Dimensions
Trompenaar & Hampden-Turner
Culture: Values
 Individualistic society: comparable to U.S.
 Value Hard work, honesty, modesty
 Environment-friendly
 Value animal protection
 Health conscious
Culture: Values
 Geographic position: Scandavia
 Jante Law
 High success and achievement negatively portrayed
 Emphasis on collective success
 Gives sense of modesty; Egalitarian outlook
 Negative light on those who do not conform
 Ironic because individualistic society
Culture: Customs
 Greet with handshake, eye contact, smile
 Gift giving only at Christmas or closing deal
 Tipping not expected, but not uncommon
 Holidays





Constitution Day: May 17
Christmas
New Year’s Eve
Midsummer’s Eve (Summer Solstice)
Easter (non-religious)
Culture: Communication
 Language
 Norwegian: 95% first language
 Most fluent in English
 Many speak Swedish, Danish, German, French, and Spanish
 Topics
 Avoid: government, culture, salary, family, personal
background, complaints high cost of living
 Okay: Norwegian culture, politics, nature, environment,
current events, travel
Culture: Leisure & Arts
 Sports
 Skiing: National Sport
 Handball
 Soccer
 Fishing: Deep sea, Freshwater
Handball
 Hiking (autumn, late summer)
 Dog Sledding (winter)
 Scuba Diving
 Mountain Climbing
Culture: Leisure & Arts
 Landscape Painters:
Dahl, Kielland,
Baker, Thaulow
 Karveskurd
(chip carving)
 Rosemaling
(rose painting)
 Most Famous Artist:
Edvard Munch
“The Scream”
Culture: Food & Eating
 Be punctual
 No business discussion during casual dining
 Table manners: use utensils
 Toasts
 Offer to help clean up
 Reciprocate invitation
Culture and Business:
Conflict & Negotiation
 If possible, avoid conflict
 If not possible, deal with directly or have mediator
 Decisions by consensus
 Cost-driven
 Straight-to-the-point
 No bargaining
 No discounts
 Commitments must be honored
Culture and Business: Ethics
 2010 Freedom Score: 69.4 (37th most free in world)
 Transparency International Corruption Perception Index: 14th
of 179 countries
 2010: 10th least corrupt country in world (above US!)
 Corrupt activity: criminal offense
 Freedom to start, operate, and close a business
 Starting business: average of 7 days (world average: 35)
 Obtaining license: less than world average of 18 procedures
 Bankruptcy: Simple and straightforward
Culture and Business:
Impressions of Americans
 Hollywood-like OR fat and lazy
 Friendly but loud
 Only interested in America
 Convenient: Drive-thru restaurants
 Shopping
 These views are similar to what other European countries
believe
Culture and Business:
Impressions of American Businesses
 Efficient
 Individuality, imagination, initiative, inventive,
independence of mind
 Often approving: brainstorming Mecca
 High regard
 Students go to study in the US
 Business schools going to American-style curriculum
Culture and Business:
Business Relationships
 Member of the European Free Trade Association (EFTA)
 Founding member of General Agreement on Tariffs and
Trade (GATT)
 G10 group within WTO
 Traditionally strongest trade relationships with closest
geographic neighbors
Culture and Business:
Business Relationships
 Casual leadership culture
 Low power distance
 Less formal
 Employees’ input valued
 Egalitarian
 Promotions: achievement
 Leader’s Role: Harness talent of employees
Culture and Business:
Management Practices
 Values hard work
 Motivating employees
 Give challenging tasks
 Benefits other than salary (tuition)
 Organizational structure: Depends on size
 Large: Hierarchy
 Small: Flat
Culture and Business:
Women in the Workplace
 Strong presence: 50% of workforce
 Government positions: 50% women
 President of Parliament
 Commissioner of Oslo Police
 President of University of Oslo
 Business positions:
 Executives: 3.5% women
 Middle Managers: 7.5% women
 Work conflicts with “home duties”
Culture and Business:
Human Resources Practices
 Not well trained prior to employment
 Classes very lecture-oriented
 Few presentations compared to USA
 Laws
 No national minimum wage
 Working Environment Act: Safety + Benefits
 Recruiting: Interviews (similar to United States)
 Promotions: Based on individual achievement
Culture and Business:
Human Resources Practices
 Compensation






Base salary
Vacation time: 21 days
Public Holidays
Sick time & Maternity leave
Disability
Extras: bonuses, company car, cell phone, newspaper
 Pension
 National: Required contribution from employer and employee
 Company: Required defined benefit or defined contribution
 New Law 2006: Based on years and salary
Culture and Business:
Business Practice Norms
 Similar to United States
 Clothing dependent on individual company
 Generally less formal
 Business cards: given, but no distinct tradition
 Work week
 40 hours per week
 9 hours per day
 Overtime: 40%+ normal hourly rate
 Sundays and Public Holidays are statutory holidays
Culture and Business:
Business Practice Norms
 Meetings
 Plan early
 Be on time!
 Very little small talk
 Very straightforward
 At beginning, shake hands
 Build trust: Don’t change project
 Emphasize facts, benefits, and profitability
 Show usefulness and technical quality
 Keep deadlines
Culture and Business:
Business Practice Norms
 Dos & Don’ts
 Do be on time
 Do keep to your project’s schedule
 Be careful about culture-related humor
 Don’t give gifts excessively
 Don’t give the hard sell
 Don’t misinterpret their less expressive body language
 Don’t interrupt the speaker
 Don’t complain about the cost of living
 Don’t smoke without asking
Government
 Norway is a unitary constitutional monarchy
 Parliamentary system
 King of Norway is the head of state
 Prime Minister is the head of government
 Similar to UK
 Welfare state
Government
 Rights for people:
 Free public health care free
 Both parents get 12 months paid parental leave
 Pension for everyone
 All children right to kindergarten
 All 16-19 year olds right to 3 years of high school
Government: Legal System
 Main Crime: Economic
 Constitution
 1814
 Three branches: legislative, executive and judicial
 Also mixture of:
 Customary Law
 Civil Law
 Common Law
Government and Business
 US and Norway friendly association
 Foreign Policy Magazine ranks Norway last in its Failed
States Index for 2009, so Norway is the world’s most wellfunctioning and stable country
 Norway will remain among the richest countries in world
for foreseeable future
Government and Business
 Infrastructure
 Domestic & International travel: airlines, buses, trains, car
ferries to other European countries
 Communications: mobile phone coverage, Internet usage
 Technology
 One of most advanced networks in Europe
 Domestic Satellite System
 Advancements in petroleum sector
 Several higher education schools devoted to science and
technology
Government and Business:
Infrastructure Issues
 Energy requirements
 Electricity generation
 99% from 27 million kilowatts of hydroelectric capacity
 850 hydroelectric plants
 Often exports electricity to western Europe
 Top consumer of electricity in the world (per person)
 Renewable Development (soil, biomass, wind)
 Wind Farm Development
 Off western coast
 Invested $4 billion
 4 major wind farms online in last 10 years
Government and Business:
Infrastructure Issues
 Road network most dense on east coast
 Building roads and railroads difficult and expensive
 Rugged terrain
 Water traffic important in many places
 Merchant Marine
 Merchant Marine: 1831 vessels, one of largest in world
 Oslo is the main port
Government and Business:
Infrastructure Issues
Tariffs: Rating of 10 in 1996, down to 4 in 2008
The Economy
 Economy is a developed mixed economy with heavy
state-ownership in strategic areas
 Almost half of the GDP goes back to the national treasury
and is distributed through the state budget. So through
taxes, the government distributes money to the society
through the state budget.
Economic Statistics
(as of July 2010)
10.00%
8.00%
6.00%
Inflation
4.00%
Unemployment
2.00%
0.00%
United States
-2.00%
Norway
Economic Statistics
(GDP Comparison)
16,000
14,000
12,000
10,000
USA (GDP)
8,000
6,000
4,000
2,000
0
2000
2005
2010
(in billions)
Economic Statistics
(GDP Per Capita Comparison)
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
United States
Norway
2000
2005
2009
(in billions)
Economic Statistics
(GDP Sector Comparison)
Norway
United States
Agriculture
Industry
Services
Economy: Taxes
 Income tax: 28%
 Applies to all forms of income of the corporate bodies;
Generally lower than EU average
 VAT tax: 25% standard
 14% for food and drinks
 7% for move theater tickets and public transportation
 Largest source of government revenue
Economy: Currency
 Currency: Norwegian Kroner ($1 = 5.85 NOK)
 Oslo Stock Exchange
 Main market for trading in shares of Norwegian companies
 Petro exchange: driven by oil
Economy: Main Industries
 Shipping
 Forestry
 Petroleum
 Fisheries
 Agriculture has declined
 Public sector among largest as percentage of GDP
Economy: Relationship with EU
 Largest Trade Partner: EU
 Growing stronger
 Diminished trade barriers
 EU becoming stronger
 EU’s 4th largest import partner
 €91.85 billion
 Behind only China, Russia, and United States
 EU’s 6th largest export partner
 €43.58 billion
 Behind United States, Russia, Switzerland, China, and Turkey
Economy: Imports and Exports
 Imports
 Machinery and equipment, chemicals, metals, foodstuffs
 Main partners (2008): Sweden 14.3%, Germany 13.4%, Denmark
6.8%, China 6.4%, UK 5.9%, USA 5.4% Netherlands 4.1%
 Exports
 Petroleum and petroleum products, machinery and equipment,
metals, chemicals, ships, fish
 Main partners (2008): UK 27%, Germany 12.8%, Netherlands
10.4%, France 9.4%, Sweden 6.5%, US 4.5%
MBA Students
 Marius Sebastian Ramnæs
 Kine Sofie Espedal Knudsen
 Frikk Aleksander Brynestad Stokke
 Ann Sofi Grantangen Strysse
MBA Students: Business Schools
 Norwegian University of Science and Technology (NTNU)
 Norwegian School of Economics and Business
Administration
 Norwegian School of Management (BI)
 Buskerud University
Norway vs. USA MBA Students
Part-Time/Full-Time
Norway
USA
Marius
Full-time
Full-time
Matt
Kine
Full-time
Full-time
Taylor
Frikk
Full-time
Full-time
Becky
Ann
Full-time
Full-time
Charlotte
Norway vs. USA MBA Students
Number of Languages
Norway
USA
Marius
2
Norwegian
& English
2
Spanish
& English
Matt
Kine
2
Norwegian
& English
2
Portuguese
& English
Taylor
&
1
(basic Arabic
& Chinese)
Becky
&
2
Norwegian
& English
Charlotte
Frikk
2
Norwegian
English
Ann
2
Norwegian
English
Norway vs. USA MBA Students
Work Experience
Norway
USA
Marius
Grocery store
cashier
4 years
veterinarian
technician
Matt
Kine
3 years in
Shipping
industry
3 years
Agriculture
Taylor
Frikk
Part-time, selfemployed
3 years HR
1 yr teaching
1 yr Bus Intern
Becky
Ann
1 year as
accountant
Charlotte
Norway vs. USA MBA Students
Concentration
Norway
USA
Marius
Control
Theory
General
Business
Matt
Kine
International
Business
General
Business
Taylor
Frikk
Finance
Management
Becky
Ann
General
Business
Charlotte
Norway vs. USA MBA Students
Job Post-Graduation
Norway
USA
Marius
Management
Medical School
Matt
Kine
Continue in
shipping industry
Sales and
Finance
(international)
Taylor
Frikk
Entrepreneurial
Creative/Dyna
mic Job
HR or
Educational
Administration
Becky
Ann
Business
Manager
Charlotte