Doing Business in Common European Space

1
Doing Business in Common European Space

• Performed by associated professorVito Bobek,
  Ph.D.
• 
  http//www.uni-mb.si/epfbobekv
• Post-graduate (M.A.) degree at the FEB
• Seminar work (SW) is compulsory
• Title and structure should be approved by
  professor
• SW should be conducted according to guidelines
• SW should be submitted as an attachment by e-mail
  
  vito.bobek_at_uni-mb.si
• Written exam
• Compulsory literature Mercado, Simon, Richard
  Welford, Kate Prescott. 2001. European Business.
  Harlow Pearson Education.
  
  http//www.booksites.net/mercado

2
Aim and structure

• Aim
• To raise the key issues facing European business
  today
• To account for and to evaluate some of the
  strategic and operational responses to Europes
  evolving environment
• Structure
• Part I. Changing environments of Europe and
  their implications for business
• Contents of Part I. The
  new European business environment
• Part II. Different strategies pursued by firms
• Contents of part
  II The strategy and structure of European...

3
Strategy and the Single European market

• Chapter objectives
• To provide a clear understanding of the impact of
  external environmental factors on the planning
  and operations of (European) business
  organizations.
• picture
• To show how to conduct environmental audits, and
  to research European markets and developments.
  
  picture
• To establish the links between organizational
  resources (and competencies) and the strategic
  choices of firms.
• To evaluate the strategic options open to firms
  in the Single European Market and forms of
  corporate strategy.
  picture
• To examine the various methods by which companies
  may diversify into new markets in Europe and grow
  their businesses.
• To assess the challenges tied to the
  co-ordination and control of inter-national
  business activities in Europe (and beyond).

4
Environmental scanning -competitive environments

• Threat of new
• entrants
• Industry
• Bargaining power of
  competitors Bargaining
  power of
• suppliers Rivalry among existing firms
  customers
• Threat of
• Substitutes
  next picture

5
Environmental scanning -contextual environments

• Legal influences Political
  influences Technological influences
• Customers Suppliers
• The firm
• internal environment
• Competitors Human and other
• resources
• Ecological-environmental Socio-cultural
  Economic influences
• Influences influences
• back

6
The firms environment threat and opportunity
profile (ETOP I.)

• European strategy development
• Opportunities
• Currency unification Market integration
  Approximation of Common
• technical standards competition
• policy
• Environmental impacts
• Eliminate exchange Lower costs of
  Potential for Eradication
  of
• risks/costs on sales operating across
  standardisation and unfair practices
• in -zone borders
  scale economies
• Removal of state aid
• Facilitates cross- Potential to
  Potential for the
• Border operations rationalise
  business development of
  Liberalisation of
• global brands
  procurement

7
The firms environment threat and opportunity
profile (ETOP II.)

• European strategy development
• Threats
• Price transparency Overcapacity
  Cross-border Hidden
• competition barriers
• Environmental impacts
• Pressure on prices/ Pressure on comany
  Greater incidence On-going market
• margins cost
  structure of firms operating
  differencies arising
• 
  in each others from
  business culture,
• Price discrimination Core markets more
  traditional spheres particularly
• made more competitive and
  of influence standards
  and
• difficult thus less
  attractive
  procurement practices
• Increase potential
• 
  pan-European oper.
  back

8
Strategies for reaching European objectives
Price competition to deter entry
Defence Advertising and promotion to
deter entry Closer concentration on service and
customer need Expansion into niches targeted by
entrants
Expansion Select
targeting
of
overseas markets FDI Licensing and
franchises Increased exporting
Rationalisation Concentrate production in a
smaller number of sites Development of a better
integrating mechanisms Concentrate on core
activities
Mergers and aquisitions JV and alliances
9
Strategy and the Single European marketRelated
web - sites

• Business Regulations (national characteristics)
• UNCTAD/WTO http//www.intracen.org/
• Companies profiles
• Biz/ed company facts http//www.bized.ac.uk/compf
  act/comphome.htm
• Hoovers online company and industry information
  http//www.hoovers.com/
• Financial Times European performance league
  http//www.ft.com/euroleague/

10
Marketing in the new Europe

• Chapter objectives
• To illustrate the role of marketing in (European)
  business organizations and the nature of the
  marketing mix.
  picture
• To examine the analytical and creative processes
  of defining markets and customer groups in
  Europe.
  picture
• To explore the choices concerning the design,
  marketing and delivery of products and services
  in Europe.
• To identify new and best practices in
  European marketing, including trends towards
  relationship marketing.
• To assess issues of pricing, promotion and
  distribution, with reference to current legal
  frameworks.
• To review the growth in direct marketing and
  Internet marketing.

11
The 4 Ps of the marketing mix traditional view

• Marketing mix
• Product Price Promotion Place
• Quality List price Advertising Channels
• Features Discounts Personal sales Coverage
• Options Allowances Sales promotion Locations
• Style Payment period Publicity Inventory
• Brand name Credit terms Transport
• Packaging
• Sizes
• Services
• Warranties
• Returns
• Target market

12
The dimensions of marketingan alternative
framework

• Managing Managing
• communications logistics
• Managing customer Brand
• relationships management
• Managing price Defining the market
• New product development Working with the
  market
• Working with the firm
• back

The firm
The market
13
European marketing changing perspectives I

• Efficiency and responsiveness
• Traditional perspective
• Identify Identify areas Identify Identify
  product,
• differences for product structures promotion,
  price
• between and service for local and distribution
• markets adaptation responsiveness strategies

14
European marketing changing perspectives II

• Efficiency and responsiveness
• New perspective
• Identify Identify areas Identify
  Identify key areas,
• common groups for standardisation structures
  for for problem solving
• between and common practice and
  common
• markets differentiation and efficiency
  development

15
Marketing in the new EuropeRelated web-sites

• Consumer marketing research
• Euromonitor http//www.euromonitor.com
• ESOMAR http//www.esomar.nl
• Mintel http//sinatra2.mintel.com/mintel/main/gui
  defr.htm
• Other links
• Global On-line marketing centre (internet
  marketing)
• http//www.glreach.com/eng/ed.php3
• MELNET (marketing electronic learning network
• http//www.brad.ac.uk/acad/mancen/melnet/index0
  .html

16
Managing cultural diversity

• Chapter objectives
• To examine concepts of culture and its generic
  aspects. picture
• To assess the impact of culture on organizational
  structures, management styles, and work-related
  values.
• To explore issues of cultural analysis, including
  the classification and clustering of European
  cultures.
• To examine the relationship between national and
  corporate culture, and the dimensions used to
  distinguish cultures from one another.
• To identify the challenges of cross-cultural
  management and cross-cultural learning.
• To discuss the impact of Japanese culture and
  management practices on European business
  (culture).
  web-sites

17
Generic aspects of cultural environment

• Language Social organisation
  Values/attitudes
• The law Culture
  Education
• Political Economy Material culture
  Religion
• back

18
Managing cultural diversityRelated web-sites

• Cultural tips and Information
• The web of Culture http//www.webofculture.com/
• Cultural Tips for Doing Business Abroad
  http//www.getcustoms.com/omnibus/dba.html
• Trompenaars Hampden-Turner Intercultural
  Management Consulting
• http//www.7d-culture.com/
•  
• Country data (including social indicators)
• CIA World Fact Book
• http//www.odcj.gov/cia/publications/factboo
  k/au.html
• The Library of Congress Country Studies
  http//lcweb2.loc.gov/frd/cs/cshome.html

19
Environmental policies and management

• Chapter objectives
• To review the nature and scale of environmental
  pollution in Europe, its causes and effects.
• To examine the concept of sustainable
  development.
• To detail the history of EU environmental policy,
  its content and objectives.
• To explore the impact of EU environmental policy
  (and international standards) on business and
  industry.
• To investigate trends in corporate environmental
  management and best practice amongst European
  firms.
• To explore the business and marketing
  opportunities created by growth in green
  regulation and consumerism.

20
Environmental policies and managementRelated
web-sites

• Text featured links
• European Commission Environmental Directorate
  http//europa.eu.int/comm/environment/index_en.htm
  
• European Environment Agency http//www.eea.eu.int
  /
• UN-ECE Environment and Human Settlements Division
  http//www.unece.org/env/
• EU Business News Environment http//www.eubusine
  ss.com/environ/index.htm
•  
• Additional links
• European Federation of Green Parties
  http//www.europeangreens.org/

21
Competing in the global marketplace

• Chapter objectives
• To account for the expansion of the global
  marketplace.
• To examine frameworks for multilateral trade and
  evolving theories of international trade.
• To examine moves toward EU external trade
  liberalization and their impact on indigenous
  firms/industries.
• To assess the impact of EU trade policies on the
  global business environment.
• To review the global position and competitiveness
  of European business.
• To identify options for global corporate action
  and the benefits of global presence.

22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
Competing in the global marketplaceRelated
web-sites

• International business information and research
• GRA Research Hotlinks (links for international
  business research)
• http//www.graj.com/links.htm
• international business trends and links for
  international business research
• http//globalbusiness.about.com/money/globalbu
  siness/
• International Organizations
• International Monetary Fund http//www.imf.org/
• The World Trade Organisation (WTO)
  http//www.wto.org/
• UNCTAD http//www.unctad.org/en/enhome.htm
•  
• Global business data and rankings
• Forbes International 800 http//www.forbes.com/fo
  rbes500/