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DOING BUSINESS IN ITALYDOING BUSINESS IN ITALY
Irfan AliIrfan Ali
Christopher KamtChristopher Kamt
Chong (Susie) ParkChong (Susie) Park
Asahi SuzukiAsahi Suzuki
IntroductionIntroduction
Southern European Southern European Country.Country.
Western Side of the Western Side of the European Continent European Continent
Sicily and Sardinia Sicily and Sardinia islands.islands.
Etruscan, Roman, and Etruscan, Roman, and Greek Civilizations Greek Civilizations influencesinfluences
CultureCulture
Largely Largely homogeneous in homogeneous in language and religionlanguage and religion
Diverse: culturally, Diverse: culturally, economically, and economically, and politicallypolitically
Roman, Greek, Roman, Greek, Germanic, Celtic, Germanic, Celtic, Norman cultures Norman cultures mixed up in Italymixed up in Italy
ReligionReligion
87% of the Italian 87% of the Italian population self-population self-identify as Roman identify as Roman CatholicCatholic
Famous Roman Famous Roman Catholic churchesCatholic churches
Vatican CityVatican City
LanguageLanguage The official language of The official language of
Italy is the Standard Italy is the Standard Italian, a direct Italian, a direct descendant of Latindescendant of Latin
75% of Italian words are 75% of Italian words are of Latin originof Latin origin
Variations in the form of Variations in the form of accents and vowel accents and vowel emphasisemphasis
Standard Italian is fully Standard Italian is fully comprehensible to all comprehensible to all throughout the countrythroughout the country
Business CultureBusiness CultureAppearanceFashion design are trademarks of Italy.
Therefore, in the business world, good clothes are a signature of success.
Men should wear fashionable, high quality suits.
Shirts may be colored or pin-striped with an Italian designer tie.
Women dress in quiet, expensive elegance.Quality accessories such as shoes and leather goods will make a good impression with the Italians.
Business Culture ContBusiness Culture ContBehavior“Time is money” is not a common phrase in Italy.
Foreign businessmen/women should bepunctual for business appointments.
Handshakes are common for both sexes.
Do not expect quick decisions or actions to take place.
Italian companies often have a rigid hierarchy.
It is common for everyone to speak simultaneously at Italian gatherings.
Do not exchange business cards at social occasions.
Business Culture ContBusiness Culture ContBehavior
Italians often have two different business cards.
Italian cards are often plain white with black print.
When entering a business function, the most senior or eldest person present should always be given special treatment.
When invited to someone’s home, bring gift-wrapped chocolates, pastries, or flowers.
If you bring wine as a gift, make sure that it is of excellent vintage.
Avoid giving anything in a quantity of 17.
Business Culture ContBusiness Culture Cont
Communications or Conversational Topics
English is spoken by many businesspeople.
Avoid talking about religion, politics, and World War II.
At social gatherings, it is considered insulting to ask someone you have just met about their profession.
Good conversational topics include Italian culture, art, food, wine, family, and films.
PoliticsPolitics
Parliamentary democrParliamentary democratic republic atic republic
House of Freedom (SilHouse of Freedom (Silvio Berlusconi)vio Berlusconi)
The Union (Romano PrThe Union (Romano Prodi)odi)
Foreign InvestmentsForeign Investments
Open to foreign investments with few Open to foreign investments with few exceptionsexceptions
Same treatment as local firmsSame treatment as local firmsFull foreign ownershipFull foreign ownershipBenefits are given in form of grants Benefits are given in form of grants
and loansand loansAdditional incentives are offered for Additional incentives are offered for
investments in suffering regionsinvestments in suffering regions
R&D, Exports, and Free Trade R&D, Exports, and Free Trade ZonesZones
R&D – easy term loans and grantsR&D – easy term loans and grants
Exports – low interest loansExports – low interest loans
Free Trade Zones – tax exemption, Free Trade Zones – tax exemption, foreign employmentforeign employment
Market ShareMarket Share
Before World War II Before World War II
agricultureagriculture Since 1950-1990 Since 1950-1990
Industrial 35% Industrial 35%
Agriculture 4%Agriculture 4% Diversification from Diversification from
Food to Textiles to Food to Textiles to
Automotive to Automotive to TourismTourism
GDP/GNP & TradeGDP/GNP & Trade
GDP/GNP (2004) GDP/GNP (2004) $1.609 Trillion $1.609 Trillion
GDP per Capita GDP per Capita $27,700$27,700
Exports $336.4 Exports $336.4 billion billion
Imports $329.3 Imports $329.3 billionbillion
External Debt $0.00 External Debt $0.00 Part of EU & G-7Part of EU & G-7
Italian DesignersItalian Designers Armani CollectionsArmani Collections
Rich TextileRich Textile Exceptional Exceptional
Craftsmanship Craftsmanship
Super Motor VehiclesSuper Motor Vehicles MaseratiMaserati
PowerPower FerrariFerrari
World RenownWorld Renown Super FastSuper Fast
LamborghiniLamborghini Desired AutomotiveDesired Automotive
Imports & ExportsImports & Exports
Exports: $371.9 Exports: $371.9 billion billion beverages beverages motor vehicles motor vehicles textiles and clothing textiles and clothing
Imports: $369.2 Imports: $369.2 billion billion beveragesbeverages transport equipment transport equipment textiles and clothingtextiles and clothing
PositioningPositioning
Member of G8Member of G8 Depending on exporting Depending on exporting
manufactured goods.manufactured goods. Developed industrial Developed industrial
north and less north and less developed developed
agricultural south.agricultural south. Lower interest and Lower interest and
inflation rates.inflation rates. 15% of unemployment 15% of unemployment
at southat south
Economies of ScopeEconomies of Scope
Highly dependant Highly dependant on exporting brand on exporting brand name products.name products. FerrariFerrari Frattli PradaFrattli Prada Giorgio ArmaniGiorgio Armani
• Inroads in to ChinaInroads in to China• Set up 30 stores in Set up 30 stores in
China by 2008China by 2008
ConclusionsConclusions
Italy ranked as the sixth largest economy worldwide in Italy ranked as the sixth largest economy worldwide in 2004, and is a member of G8 (G7 plus Russia). 2004, and is a member of G8 (G7 plus Russia). Foreign companies have low interest loans. Italy is Foreign companies have low interest loans. Italy is open to foreign investments where full foreign open to foreign investments where full foreign ownership of Italian companies is allowed. And ownership of Italian companies is allowed. And unemployment in the south can become a good unemployment in the south can become a good source of human resources (labor). source of human resources (labor).
Italy has a very similar business culture as United Italy has a very similar business culture as United States of America. Businessmen/women speak States of America. Businessmen/women speak English also. This permits a better understanding English also. This permits a better understanding between business partners.between business partners.
Italy already has a limit on TV advertising, but some Italy already has a limit on TV advertising, but some companies are doing a really good profit in Italy. companies are doing a really good profit in Italy. One of the great examples of International One of the great examples of International companies is of Coca-Cola. Italy is one of the largest companies is of Coca-Cola. Italy is one of the largest markets of Coca-Cola.markets of Coca-Cola.