Beruflich Dokumente
Kultur Dokumente
Introduction
This report can be considered as being a complete research of the country, in this case the Czech Republic. The research is destinated to answer the questions/doubts for IK !"s board of directors, in order to ta#e the best decision for in$esting in the Czechs. The information is structured in % parts& first part includes a short description of the Czech Republic, the second part contains the ' (T ) analysis of the country, the third part describes the actual situation of IK ! together with the company"s history and (*+T analysis reported to the country and the last part of the report gi$es the concrete conclusions and recommendations. The ' (T ) analysis of the country was written in order to gi$e clear information about the political, economical and legal situation of the country together with the social and cultural aspects. These aspects are directly in$ol$ed in influencing the good de$elopment of IK !"s future pro,ects in the Czech Republic. The third part will describe the slow beginnings of IK !, pointing out the history of the store. The description goes till nowadays, when IK ! it is a worldwide company, with a great international e-posure and a recognized brand. The analysis of the strengths and wea#nesses related to the threats and opportunities of the country also clears up possibilities which the enterprise has on the Czech mar#et. The last part will include conclusions and recommendations which were noticeable in order to help the company to e-pand in one of the central uropean countries.
*i#ipedia states that since the Czech Republic turned to democracy, once with the separation from (lo$a#ia, the Czechs also adopted democratic $alues in the country. Ietween the other uropean Hnion states, the Czech Republic is classified as ha$ing a high ran#ing on go$ernance indicators such as rule of law, accountability and $oice. !s it is #nown from the article Czech RepublicJ, the Czechoslo$a# Republic was founded in .6 +ctober /5/6 by Tomas ;asary#, bac# then the president of the state. The communist go$ernment fell in the time of the Fel$et re$olution in /565. In /55. too# place the separation of Czechoslo$a# Republic in two independent states& the Czech Republic and (lo$a#ia. In /555 the Czech Republic became member of G!T+ and in .77% the country adhered to the uropean Hnion as a member state. In .77< the Czech Republic ,oined the uropean Hnions" (chengen Treaty of free mo$ement between the H member states. !s it is mentioned in the lines abo$e, the Czech Republic is a democratic country, meaning that it has its own go$ernment, its own rules and it is unrestricted. !ccording to the article Parliament of the Czech Republic the state"s parliament is considered bicameral Atwo chambersB& The Chamber of >eputies and the (enate. The supreme law of the country is considered the Constitution, which was appro$ed by the Czech Gational !ssembly in >ecember /55.. The president of the Czech Republic is considered the official head of the state, but his powers are limited. :or the go$ernment the prime minister is the head. The legislati$e powers are conferred in the bicameral parliament. The Chamber of >eputies has .77 members elected on a period of four years. :or a party to be accepted in the Chamber of >eputies, it must gather at least 2E from the $otes. The Chamber of >eputies is the lowest house of the go$ernment. The senate is the upper house and has in total 6/ members elected for a period of 4 years. The Czech Republic is di$ided into /3 regions with the capital city of 'rague since .777. !fter entering in the uropean Hnion zone in .77%, the Czech Republic had to face many challenges according foreign trade. !ccording to Fladimir Ta- the trade between the H member states would not be considered foreign trade Aestimated around 62E from the total trade of the countryB. The Czech Republic adopted the common trade policy directed centrally from Irussels. The accession of the Czech Republic to uropean Hnion brought not only changes in the trade mar#ets, but also according the labor law. The )abor Code was amended to reflect uropean directi$es in relation to discrimination, employees, redundancies, wor#ing times and many other sub,ects. These changes related mostly to the free mo$ement rights, transnational rights and non discrimination rules.
!ccording to KEuropean Economy NewsJ, the Czech Republic has one of the most flourishing and e$ol$ed economies, with a strong growth, a low inflation and continues to raise its incomes from the foreign in$estments. tructure and policies: :inancial authorities/regulators& Czech Gational Ian#ACGIB !ccording to the !nnual Report A.776B of the CGI, the principal ob,ecti$e is to #eep the stability of the price, by creating low inflation in the financial situation of the state. The ban# has also the ob,ecti$e to de$elop economic growth. The CGI sets the monetary policy and controls the payment system and the balances between the commercial ban#s of the country. The ban# has also the duty to create conditions for sustainable economic growth. It Kcreates ban#notes and manages the money circulationJ. CGI also counts as being a super$isor for the insurance companies, the ban#ing system, pensions and among others the foreign e-change. !s national ban#, CGI pro$ides ser$ices to the state and the public sector. :rom .776 CGI functions independently in the financial sector. Ap.6B (toc# mar#et 'rague (toc# -changeA'( B In >epth ' (T ) !nalysisA+ctober .775B presents '( as being the biggest securities mar#et in the Czech Republic. It is a ,oint stoc# company based on membership principle. +nly '( members are licensed securities dealers and ha$e access to its system. Ap.%/B !e" policies The In >epth ' (T ) analysisA+ctober .775B from >atamonitor stated that the go$ernment too# the responsibility to decrease the budget deficit from %E of the 9>' in .774 to ..3E in .7/7, with e-penditure and the size of the deficit closely tied to the rate of real0term 9>' growth. Ap.32B
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!ccording the data from the Exhibit 1, the 9ross >omestic 'roduct dropped drastically to 0%.7 E in .775. The forecast assumes that in .7/7 the economy of the state will get bac# to /, 2E, growing till ., %E in .7// meaning that the economic situation of the country is gradually reco$ering. !ccording to the In depth 'estel !nalysisA+ctober .775B and from Exhibit 2, the 9>' of the Czech Republic is composed by ser$ices, industrial sector and agricultural sector. Ap.%%B !s it is shown in Exhibit 2, the ma,or sectors which contribute to the growth of the 9>' is the ser$ices sector, with an implication of 47,/E followed by the industrial sector with 3<.4E and the agricultural sector with ..3E.
The country is also well de$eloped in the technology sector, car manufacturing, transport and transportation equipment. 2.2.1.1 'onetar" polic" and interest rates The Czech Gational Ian#"s monetary policy ob,ecti$e is gi$en by !rticle 56 of the Constitution of the Czech Republic and !rticle . of !ct Go.4//553 CoII, on the Czech Gational Ian#. CGI has to #eep price stability and is in$ol$ed in sustaining the economic growth of the country. The Constitution of the Czech Republic proclaims& !rticle 56 LCzech Gational Ian#M A/B The Czech Gational Ian# is the central ban# of the (tate. Its acti$ities are primarily oriented towards currency stabilityD it is possible to interfere with its acti$ities e-clusi$ely on the basis of law. A.B The status, ,urisdiction, and other details are set down by law. !ct Go. 4//553 Coll. on the Czech Gational Ian# declares the following& !rticle .
2.2.1.2 Labor market and #ouse#old )abor :orce (ample (ur$ey stated that the employment decreased to ../E year on year. The total labor mar#et was around 2.3 million in .776. Iy the end of !pril .7/7 there were 3/4.777 foreigners wor#ing in the Czech republic. >ue to the reduction of ,obs in the industrial sector the numbers of employees dropped. The employment rate reaches 4%E, the lowest employment rate since /553. The numbers of unemployment persons reached %<6.777 in the first quadrant of .7/7, the general unemployment rate reaching 6..E in .775. Exhibit ! shows that the unemployment in the Czech Republic will grow.
#raf 1 $a%&stnan'( neza%&stnan' )absolutn&* "raph 1 Employe#, unemploye# $absolutely%
2747 27.7 %567 %5%7 za%&stnan'( emplo"ed %577 %647 %6.7 %<67 %<%7 %<77 %447 %4.7 %267 %2%7 3.N..77< %.N..77< /.N..776 ..N..776 3.N..776 %.N..776 /.N..775 ..N..775 3.N..775 %.N..775 /.N..7/7 +t,rtlet'( (ua rters 467 4%7 neza%&stnan'( unemplo"ed 477 247 2.7 %67 %%7 %77 347 3.7 .67 .%7 .77
zamOstnanP, employed zamOstnanP 0 sezQnnO oRiStOnT, employed 0 seasonally ad,usted nezamOstnanP, unem ployed nezamOstnanP 0 sezQnnO oRiS tOnT, unemployed 0 seasonally ad,usted
E hibit .! ///0czso0cz
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In the simple scoring system means& greenVgood, yellowVa$erage and redVpoor. :rom Exhibit ) can be assumed that the Czech Republic is out of the economic crisis, with a growing economy, with good percentages of interest rates, with a low inflation related to other countries, only the labor mar#et would be a sector for which the Czechs would still ha$e to wor# on.
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Trade 'oint Iei,ing writes that in .775 the Czech economy was in$ol$ed in the recession, with domestic demand, stoc# building and e-ternal balance contributing negati$ely to economic growth. =owe$er, although the inflation decreased significantly at the beginning of .775, positi$ely influencing real disposable income and deteriorating the conditions in the labor mar#et, the pessimistic consumer e-pectations and tight credit conditions will weigh on pri$ate consumption, which is e-pected to remain stable in .7/7. The Czech mar#et is di$erse and contains many industries. Czech traditional competiti$e industries, includes machinery, glass products and some high0tech products, such as electron microscopy etc. Czech !griculture +$er$iew Czech main e-ported agricultural products include& barley, feed, hops, por#, dairy products, mainly imported goods pac#age. Include& nuts, fruits, $egetables, $egetable oil, fish, rabbits, non0alcoholic be$erages, rice, tobacco, coffee, etc. ;a,or trading partners& 9ermany, (lo$a#ia, 'oland, !ustria, Italy, =ungary, the Getherlands and China. Czech :orestry +$er$iew Czech forest is rich in resources, 33E forest co$er, forest area is ..4% million hectares, from which /.5< million public timber hectares, accounting for <%E. The $olume of 4%7 million cubic meters of wood, %<< million cubic meters coniferous forests, accounting for <4./E, broadleaf forest /.%3 billion cubic meters, accounting for ...6E. :orest about 47E of the state, and local ownership of /2.%E, .3./E in pri$ate hands. Czech ;anufacturing +$er$iew /. ;achinery and equipment manufacturing and repair industry
The industry has a long tradition in the Czech Republic and is a $ery important manufacturing sector in the Czech Republic. It co$ers the production technology lead in$estments indispensable types of machinery and equipment, including mechanical power production equipment Ainternal combustion engines, marine engines, etc.B !fter ,oining the H, the Czech industrial sector had to meet the H"s strict en$ironmental and energy standards, many of the original #ey technology transformations, so that the pollutant emissions, energy consumption and economy has become more ad$anced and become the HWs main base of the new energy industry. .. +ffice equipment and computer manufacturing
>ue to historical reasons of isolation from world mar#ets, the Czech office equipment and computer industry in the eighties of last century far behind the technologically ad$anced countries, their products uncompetiti$e in the mar#et. The rapid de$elopment of computer industry in the nineties, the whole global economic integration process, a number of multinational companies in their strategic de$elopment, beginning to consider their production bases to the labor power, better infrastructure and strategic location in the region. Czech Republic became an attracti$e country. :oreign opened Czech Republic before entering the field of office equipment and computer production. The important representation of companies is located in 'ardubice of :o-conn CU and in Rudna the :IC CU.
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?ear .775
;onth Canuary :ebruary ;arch !pril ;ay Cune Culy !ugust (eptember +ctober Go$ember >ecember
-ports /47.37< /4<.7.4 /5%.6<% /<2.6%2 /42.%/< /64./<< /</../% /26.57< /5%.<2. /52.6/5 /5<.<%2 /42...5 /<%..<6 /6%./<5 ./5.23%
Imports /24.344 /2<.45< /<3.626 /4..3<5 /23.422 /42.664 /25.6%5 /%5.2.6 /<<.62. /<5.232 /6..373 /4..465 /25.<.< /45.<3% .7/..4<
Ialance 3.5%/ 5.3.5 ./.7/2 /3.%44 //.<4. .7..5/ //.342 5.3<5 /4.577 /4..6% /2.%%. ..2%7 /%.22/ /%.%%4 /6..46
-ports /<3.2/2 /<..32% /<6.%/2 /<<.%3/ /<7.<.4 /<3.544 /<2.664 /6..475 /6/.7/6 /6/.2/2 /6%.<77 /6/.<47 /5%.366 /57./.3 .77.7<.
Imports /<..</4 /4<.663 /42./67 /4%.7%5 /4..43< /4/./2% /4/./6< /46.%66 /46.433 /42.3.% /<7.%7% /45.527 /6/.<27 /67.%65 /66...3
Ialance <56 %.%</ /3..32 /3.363 6.765 /..6/. /%.455 /%././ /..362 /4./5/ /%..54 //.6/7 /..436 5.433 //.627
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2.+
Demo*rap#ical landscape
In .775 followed a research about the population in the Czech Republic. There are //.27 million people li$ing in the Czech Republic. The ma,ority of inhabitants of Czech Republic are Czech occupies 57.%E seen in Exhibit 0. In addition the other ethnic and immigration account for 5.4E include ;ora$ianD (lo$a#D 'olishD 9ermanD (ilesianD RomaD =ungarian and others. Iecause of the assimilation, the traditional minority li#e 9ermans and 'oles ha$e decreased. =owe$er the other ethnic communities li#e 9ree#s, Tur#s, Italians and ?ugosla$s were found in the capital city. (ince .77<, the population of immigrants is increased nearly by /E of the total population.
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ncyclopedia Iritannica describes in the article Czech Republic1 Cultural 2ife that Kthe territory of the Czech Republic traditionally has been between the 9erman and (la$ lands, and the Czech cultural traditions are a mi-ture of both. Influences from farther afield also ha$e been strong. Fisually the most stri#ing influences are ItalianXin Renaissance and Iaroque architecture, for instanceXwhile literature, music, the $isual arts, and popular culture also are indebted to a $ariety of e-ternal influences. ;ost of the *estern cultural influences on the Czech )ands ha$e passed through a 9erman filter, and for this reason Czech traditions in popular culture are mar#ed by a strong sense of national identity.J =ofstede"s culture dimensions for Czech Republic are gi$en by Exhibit 134 It is analyzed the country conform the power distance, indi$idualism, masculinity and uncertain a$oidance. Countr" C$ec# %epublic PDI ,5 ID3 ,6 '/ ,5 4/I 5+
PDI 7 Po8er Distance 2 The Czech score 2< in power distance. >escribing business situations, the Czech republicans are showing respect to their bosses, and they #eep in mind that the ,ob le$els are not equal. They do not treat their superiors informal, but rather formal. The citizens consider that in business situations, it is not really equality between indi$iduals. ID3 7 individualism 7 Czechs are quite indi$idual persons and they rather prefer to do things on their own than wor# in a team and rely on other persons for achie$ing their purposes. They score 26 at indi$idualism. '/ 7 masculinit" 7 The citizens consider that it stays in their powers to do something for themsel$es. The persons tend to characterize themsel$es as being asserti$e. 4/I 7 uncertain avoidance 2 the Czechs tend to a$oid matters which can cause them problems, they tend to a$oid ambiguity. The Czech population does not ha$e a long term orientation, but rather they focus on things which are achie$able in the appropriate future or ,ust simply focus on the present.
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ducation
The education system in the Czech Republic is dated bac# to /<<%, when compulsory school attendance was established. 'rimary education is compulsory and ta#es nine years, from the age of si- until the age of /2. 'upils ha$e to fulfill the nine0year compulsory school attendance and they can apply for study at a secondary school. The student can lea$e secondary school after completing two to three years of study, which follows with a report and a final e-am together with a $ocational certificate stating their professional capability. This entitles the student to a secondary education with a $ocational certificate. !fter four years of study, a student can complete secondary education with a lea$ing e-amination. The students whom completes secondary education with a lea$ing e-amination, can pursue their tertiary education. Tertiary education includes ad$anced $ocational and uni$ersity education. ;ost uni$ersities ha$e IachelorWs and ;asterWs degrees, lasting for three and respecti$elly two years.
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2313 in#ex of economic free#om characterizes the Czech Republic as being the 3%th freest country for doing business, being the /<th in the uropean mar#et. The foreign and national in$estors are treated the same, most of the companies are in the pri$ate sector. (tarting a business in the Czech republic ta#es appro-imately /2 days, and it gathers a total of 6 procedures. The Czech Republic"s trade policy are gi$en by the uropean Hnion regulations and it is the same as any other member state. Gon0tariff barriers reflects in H and Czech policy including agricultural and manufacturing subsidies, quotas, import restrictions and bans for some goods and ser$ices, mar#et access restrictions in some ser$ices sectors, non0transparent and restricti$e regulations and standards, and inconsistent regulatory and customs administration among H members The Czech Republic is not considered a country with high ta-es. In the case of starting up a business/opening a branch in the Czech Republic, companies tend to rely on the following legal aspects. Commercial Code !ccounting and audit :iscal policies with direct and indirect ta-es )abor Code Trade
Commercial Code: The Commercial Code was re$ised in order to be in harmonization with the uropean Hnion law and international standards, stipulating the following& 0 the headquarters of the businesses are located at the place where the business acti$ity ta#es place, 0 registering in the Commercial Register has constituti$e effect, 0 the documents about the incorporation of the company, annual reports and audit reports must be handed in one copy to the Commercial register. /ccountin* and audit: !ll the accounting registration must be under the >ecree of >ouble ntry !ccounting and the Czech Gational !ccounting (tandards. 9iscal Policies The Czech fiscal policy presents . types of ta-es& indirect ta-es and direct ta-es. The indirect ta-es are as following& ta-es on di$idends for /2E, corporate ta- of income /5E for .7/7, social security ta-es which are for the employer 3%E of the e-penditures, and for employee which is //E from the bruto income. The indirect ta-es are as following& F!T 0 $alue added ta- 1 /5E according the uropean Hnion legislation, and for e-ceptional branches 5E. Custom duties, en$ironmental ta-es, real estate ta-es, road ta-es are also included in the indirect ta-es.
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Tra$el >ocument (ystem states that the Czech Republic is starting slowly to deduct the high pollution dependence. In .77<, according the Czech (tatistical +ffice, 4<,3E of the energy of the country was produced by coal steam, .5,<Efrom nuclear plants and only 3E from recyclable sources.
2.6.1
2.6.1.1 Environmental re*ulations !ccording to the :n #epth PE.+E2 ;nalysis$+ctober .775% pro$ided by >atamonitor, the country already used a multitude of laws and regulations in order to straighten the en$ironmental policies. The laws used are on protection of the air against pollutants, on protection of the ozone layer of the earth, on water, on payments and ta-es for discharging the waste waters into the surface waters, on the protection of the agricultural land fund 2.6.1.2 Polic" The significant features of the ( ' are to protect the nature and the biodi$ersity, to be sustainable for the natural resources and to ta#e care of the hydrographic system. Iesides that the features of the ( ' are to protect against floods and optimization of waste management, to reduce the damages made by human acti$ities and to impro$e en$ironmental standards in order to ha$e a better life quality. Ap.</B
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IK ! was found in /5%3 in (weden. The goal of the company was to Kcreate a better life for e$erybodyJ. The products from IK ! ha$e good quality, design and price. Gowadays, IK ! is the biggest furniture and household products company. (ales include chair/ sofa series, office supplies, bedroom series, #itchen series, lighting series and so on. Size! IK ! has a huge international e-posure. The company has 37% large stores in 3< countries. ;ost of the stores are located in urope, in Hnited (tates, Canada, !ustralia and !sia. The company printed /77 million IK ! catalogs of a collection about /.,777 goods in e$ery year. IK ! has %4 trading companies in3. countries and /,377 suppliers in 23 countries. ;oreo$er, they ha$e .6 distribution centers in /4 countries to supply products for IK ! mar#ets. ?istory! IK ! started /5%3. Ing$ar Kamprad Kbuilt upJ this company in (weden when he was /< years old. The name of IK ! was according to the first letter of his name AIng$ar KampradB, farm A lmtarydB and $illage A!gunnarydB. !t first, Ing$ar Kamprad ,ust sold some small stuff such as pencils, wallets, ,ewelry or anything which he thought it made mar#et demand and it was more cheaper. The first furniture was sold in /5%<. In /522, IK ! started to design their furniture. Ing$ar Kamprad was selling its products in his home or $ia the post. !fter a while he opened his store near his $illage named !lmhult. In addition, !lmhult was the first warehouse for IK ! and became the model for other stores in the future business. In /543 was opened the first IK ! in Gorway. Corporate culture and values: !ccording to the corporate culture of the company it can be considered that the company has an adaptable culture because of its e-ternal focus on the customers. IK !@s products and ser$ices are designed to satisfy the customers needs. The support gi$en by the IK ! wor#ers is also customer oriented. IK ! $alues simplicity, togetherness, cost0consciousness and respect. ).2 Porter:s , forces: !nalyzing the 2 forces in the industry competition for IK !, it can be supposed that there are no threats for new entrants, because entering a furniture retail mar#et in$ol$es a good strategy, good prices and a high demand. Iargaining power of supplier is low, because IK ! does not produce the products in the Czech Republic, but in the affiliate countries for the proper production li#e China or (weden. Iargaining the power of buyers can be considered high, because people are interested in new modern shops, which may create and
E hibit 12! PorterAs 1 forces
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! company should always focus on their target groups" needs. ! company li#e IK ! has to focus on their customers" needs to wor# sufficiently. If a company does not fit to their customers needs, they would not be able to #eep their customer base and if a company loses their customers they probably get ban#rupted after a while. (o the success of IK ! is based on their target group. !s a result IK !"s whole retail branch is designed to fit as perfect to their target group as possible A(trategic Retail ;anagement& .77<, p. /3<B. The entire concept of the IK ! retail stores with childcare, restaurants and information des#s is compiled to shop unstressed and with an open mind. Consequently their customers are willing to spend long time in the store and to get inspired by the many different modern articles offered. !lso IK !"s Ke$erything under one roofJ concept is set up to ensure the customers con$enience and to deli$er their mission Kto create a better e$eryday life for the many peopleJ during shopping at IK ! AIK ! websiteB. IK ! has a big, not $ery specified, target group. ;artenson defined it as Kyoung people in all agesJ A/56<, p./2B. That means IK ! focus on young people and those who are remain young at heart. *hich does not signifies that IK ! only focuses on single or student households, but also on young families. IK ! targets on all educated people with a low to middle income A(trategic Retail ;anagement& .77<, p. /3<B and do not set $alue on status symbols A!benteuer *irtschaft& .773, p./%%B. ?oung people who mo$e out from their parents house and furnish their first own flats, are $ery welcome in IK ! stores. !lso if a couple ha$e a baby, IK ! is $ery attracti$e to them to furnish the baby"s room. +$erall IK ! attracts e$eryone who needs stylish, sturdy furniture for a relati$ely cheap price ACoo#, .773B. !t the $ery beginning Ing$ar Kamprad sold small products li#e pencils, wallets and picture frames AIK ! websiteB. Gowadays IK ! offers a huge range of products to their target group. Ieginning with a soft toy and ending with a prefabricated house. The array of products includes e$erything for #itchen, bathroom and li$ing room. :urthermore in retail shops are offered products for babies and children in all ages. Iaby changing tables for the smallest, different toys for the older ones and modern writing des#s for teenagers. (eniors get less attracted by furniture, but more from the IK ! restaurant which offers traditional (wedish food for a relati$ely cheap price. The population in the Czech Republic fits $ery well to IK !"s target group. The a$erage number of members of a Czech household is ..2/ people, which ha$e a net income per year of 3.5,/5/Y Koruna Aabout Z /.,<37B which probably match to the low and middle income households of their target groups. !lso the well0heeled people are with /5%,/6/ CUK per head not $ery rich. (o se$eral would probably also shop at IK ! stores. :urthermore there li$e many people between .7 and 37 years. Those people are probably K,ust starting outJ and in Kneed of relati$ely cheap, sturdy furnitureJ ACoo#, .773B they could afford at IK !.
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Stren3th Cheap transportation of goods Cheap production costs resulting from quantity discount Iig customer base Competiti$e selling prices asy to access 1 good transport connection )arge and di$erse assortment 'ersonal and -otic contact to customers Construction of stores where real estate prices are low )ow ta-es $erything under one roof Ainc. food court and child care beyond otherB Cpportunities Iooming Czech economy Close to production sites A'oland /< E, Italy 6E, (weden and 9ermany 4 E eachB ;any possible customers in a relati$ely small area Iooming prefabricate house mar#et )ow ta-es AheadquarterB :alling uro e-change rate (table Czech Koruna e-change rate ntry into the uropean Hnion economic growth 1 stability buying power higher because of low inflation cheap wor# wages low costs for ta-es good international trade pri$atization system "nternal En,iron%ent
Threats :inancial crises :alling uro e-change rate aging of population air pollution probable growth of inflation and price increase
IK ! is a well performing global retail company, which opened % new stores only in ;ay .7/7, this success is the result of good strategies. The world biggest furniture mar#et chain"s $ision is Kto create a better e$ery day li$e for the many peopleJ AIK ! websiteB. This $ision they want to achie$e by offering stylish, functional furniture to a price as low as possible so that the many people are able to afford it. To offer cheap prices procures IK ! products a competiti$e ad$antage against other furniture retailers. Combined with style and quality of their articles it secures IK ! a big customer base. Iut to pro$ide such low prices to their customers IK ! has to sa$e money where e$er it goes. IK ! tries to sa$e money in the production, transport and at the stores it sel$es. ! lot of money they sa$e in the production. >ue to the numbers of products IK ! buys e$ery time, they get a high quantity discount from their manufacturers. Iut also IK ! has its own
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1 Sources!
!nnual Reports. An.d.B. Czech Gational Ian#. Retrie$ed Cune 6, .7/7, from www.cnb.cz/miranda./e-port/sites/www.cnb.cz/en/about]cnb/performance/annual]reports/d ownload/$z].776]en.pdf Ian. KIan# of CanadaJ. www.ban#ofcanada.ca , .5th ;ay .7/7, +ttawa& Ian# of Canada CI!, C. I. An.d.B. CI! 0 the world :actboo# 0 Czech Republic. Central Intelligence !gency. Retrie$ed Cune 6, .7/7, from https&//www.cia.go$/library/publications/the0world0 factboo#/geos/ez.html CU C= R 'HI)IC C+HGTR? !G!)?(I(. An.d.B. Iusiness source 'remier. Retrie$ed Cune 6, .7/7, from http&//web.ebscohost.com/bsi/pdf^$idV///_hidV///_sidV2bb.caa.0f2fe0%a360 5a4b0.2e4%47475<6E%7sessionmgr//% Czech Republic. A.7/7B. In ncyclopedia Iritannica. Retrie$ed Cune 76, .7/7, from ncyclopedia Iritannica +nline& http&//www.britannica.com/ Ichec#ed/topic//%5762/Czech0 Republic Chris dwards. A.776B. 9lobal Ta- Re$olution Rise of Ta- Competition and the Iattle to >efend It. *ashington, >.C. & Cato Inst,.776. Czech Republic 0 *i#ipedia, the free encyclopedia. An.d.B. *i#ipedia, the free encyclopedia. Retrie$ed Cune 6, .7/7, from http&//en.wi#ipedia.org/wi#i/Czech]Republic Czech Republic conomy. An.d.B. Tra$el >ocument (ystems. Retrie$ed Cune 6, .7/7, from www.tra$eldocs.com/cz/economy.htm Czech money and -change rate. An.d.B. *orld Trade 9uide. Retrie$ed Cune 6, .7/7, from www.worldtra$elguide.net/country/<./money/ urope/Czech0Republic.html Czech Republic Constitution. An.d.B. Ferfassungsgeschichte. Retrie$ed Cune 6, .7/7, from www.ser$at.unibe.ch/icl/ez77777].html Czech Republic Information on conomic :reedom. An.d.B. Inde- of conomic :reedom& )in# between economic opportunity and prosperity. Retrie$ed Cune 6, .7/7, from www.heritage.org/inde-/country/CzechRepublic >orsch, ;., _ Candl, T. A.773B. !benteuer *irtschaft. <2 :allstudien mit )`sungen.. 9ermany& +ldenbourg. dwards, C. R., ;itchell, >. C., ;itchell, >. K9)+I!) T!8 R F+)HTI+G& The Rise of TaCompetition and the Iattle to >efend ItJ. *ashington >.C.& C!T+ IG(TITHT , .776 mployment and unemployment measured by the )(:. An.d.B. Czech (tatistical +ffice. Retrie$ed Cune 6, .7/7, from www.czso.cz/eng/csu.nsf/informace/azam72/7/7.doc IK ! a !bout IK !. An.d.B. *elcome to IK !.com. Retrie$ed Cune 5, .7/7, from http&//www.i#ea.com/ms/en]9I/about]i#ea/inde-.html
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(ub,ect Pestel Analysis Country conomic features& macroeconomy, mar#et en$ironment, competition resources international scope demographic data ;ar#et analysys and 'orter@s 2 : )egalDbusiness format (ocial aspects Conclusion& +pportunities and threats
Retail for%ula! F description( sizeAuse different criteriaB, etc. F history F international e-posure target groups (trengths and *ea#nesses and Threath found in II analysis F relation of the retail for%ula with econo%ic situation in country
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9ood use of the structure F 'roper introduction F >o findinfs address the original issues for in$estigation^ F :indings are illustrated using clear summary tables and figures F (tatistical data is lin#ed to the te-t F 'roper conclusion 10 (ummary of main points from the research 20 It re$iews the problem statement and the main points )anguage and (tyle F Te-tboo# theory is paraphrased by meand of reporting $erbs F :unctional phrases clarify the logic in the de$elopment of the argument F There are no more than 2 spelling errors F ! professional and formal writing style throughout F Go grammatical errors (ourcing and references F Complete bibliography or list of references F Hse of !'! style of referencing F !$oiding plagiarism Total A>i$ided by /7B
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(ub,ect Content )3roup assess%ent* A con,incin3 presentation of! F The PESTEL analysis F The Retail for%ula
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