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Italy. Presented By: Presented to: DeLorean Motor Company. Location. Mathematical Location: 9 degrees east, 45 degrees north Situation: France, Slovenia, Switzerland, Austria Formal Region: Western Europe Functional Region: Milan. Demographic Transition.

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Presentation Transcript
italy
Italy
  • Presented By:
  • Presented to: DeLorean Motor Company
location
Location
  • Mathematical Location: 9 degrees east, 45 degrees north
  • Situation: France, Slovenia, Switzerland, Austria
  • Formal Region: Western Europe
  • Functional Region: Milan
demographic transition
Demographic Transition
  • If a country has a high birth rate and a low death rate, the natural increase rate will obviously rise. If a country has a low birth rate and high death rate, it will decline.
  • Italy is currently in stage 4 of the demographic transition model.
  • The Agricultural revolution elevated the natural increase rate because it made it easier for people to survive off growing food rather than hunting and gathering. The Industrial Revolution made it easier for people to get work done faster and more efficiently.
demographic analysis
Demographic Analysis
  • In Italy, there are many strengths. For example, Italy is excellent in all of these categories, and it has one of the higher populations in the region. With a high population comes a larger labor pool. All the countries have a high literacy rate, which provides an intelligent work force. Countries like Austria, Switzerland, and Slovenia have a lower population. The Human Development Index is considered to be very high for each of these countries. Italy’s main weakness is their Per Capita GDP, which is obviously lower than its neighbors.
economic development
Economic Development
  • Primary: Mainly Agriculture, such as grains, fruits, vegetables, olive oil, soybeans, and meat. Italy is 1st in wine production in the world.
  • Industry: Motor vehicles, chemical engineers, electrical engineers, fashion/clothing design.
  • Services: Service jobs keep tourism going. For example, waiters, chefs, cab drivers, and tour guides.
  • In order to support high end sports auto manufacturing a country must have the human resources that come from a high level of development.
  • Tourism is key to Italy’s economy. It’s the 5th most visited country in the world. When tourists see the array of cars, they want to take one home.
site factors land and labor
Site Factors: Land and labor

Hourly cost of labor

It will cost less to pay workers in Italy

Note: Italy has no minimum wage

It will cost less for Italy factory

site factors resources
Site Factors: Resources
  • List of Inputs: Steel, glass, rubber, electrical components, and plastic.
  • Italy offers 21 auto manufacturers, 19 auto design firms, and 18 auto part supply companies.
  • All European, Middle Eastern, and African auto markets are available for sales.
  • Italy is home to 50% of world-recognized name brand sports car manufacturers.
situation factors
Situation Factors

Miles to Major Markets

All Western European countries are within 1000 miles.

infrastructure transportation
Infrastructure:Transportation

There are many transportation options available

infrastructure communication
Infrastructure: Communication

Note: Italy is the second largest mobile communications market in Western Europe.

taxes
Taxes

Italy does not appear to have a property tax

social stability
Social Stability
  • Human Rights: Freedom of religion is allowed because of the 1947 Constitution of the Italian Republic. Blasphemy is the only rule against the freedom of speech law.
  • Levels of Corruption: The Sicilian Mafia is the main problem in Italy which uses its strength by using scare tactics on innocent people. They also formed their own government party and gained some of its own political power.
  • Political Opposition: Italy has six major parties including the People of Freedom, Democratic Party, North League, Future and Freedom, Italy of Values, and the Union of Christian and Centre Democrats. They also have 28 minor parties.
  • Free and Open Elections: People elect the Parliament and the Parliament elects the President every seven years.

Sicilian Mafia

conclusion
Conclusion
  • Italy would be a great place to build a factory for the DeLorean motor company. Italy is home to the majority of the best-selling sports cars in the world. There is easy access to some of the major markets of the world. The cost to build a factory and employ workers is lower than neighboring countries. The infrastructure for communication and transportation is already well-established. The people of Italy have made themselves known for building popular sports cars. The resources are already in place for building high-end automobiles. All of these factors combined make Italy the perfect place for the DeLorean motor company to be successful.