Chapter 2: Diagnosing Industry Globalization PotentialChapter 5: The Turkish CoffehouseChapter 6: The Brazilian SambaChapter 7: The Polish Village Church Christi Felton Vic Ashdown Lydia Palma
Turkey Facts • Turkish people, also known as the "Turks" • Former lands of the Ottoman Empire • Referred to as the cradle of civilization • Turks have never been conquered or colonized in the modern era • Turkey as we know it was established in 1923 as a secular democratic nation • About 72.3 million people; 80% are Turkish and 20% Kurdish • 99% of Turks are Muslims • All these influenced the customs, language and trade practices by the Turkish
Facts • Turkey is the world's 37th largest country in terms of area at 302,535 sq mi. • Language is Turkish • Todays Capital is Ankara • Tourism has become a huge part of their Economy • Agriculture is still the Largest major pillar for Turkey
History • Constantine the great named Constantinople the capital of the Empire • Arabs relocated westward and by 700ce the empire included Anatolia, Greece, Syria, Egypt, Sicily and Balkans, most of Italy and some North Africa. • During the Crusades, Turkish gazis or Islamic warriors fought to build the Ottoman Dynasty. • The Ottoman conquered Constantinople which is now Istanbul and was rebuilt as the capital. • http://www.youtube.com/watch?v=vankaSlfSr0
History • The Ottoman Empire reached its peak of wealth and power under the rule of Suleiman the Magnificent. He controlled present day Turkey, Iran, Iraq, Egypt, Israel, Syria, Kuwait, Jordan, Saudi Arabia, Albania, Algeria, Libya, Tunisia, Greece, Bulgaria, Sudan, Romania, Hungary, Yugoslavia, Czechoslovakia, Ethiopia, Somalia, and the Soviet Union! • His empire reached into 3 continents! • http://youtu.be/4H2pW_rjEoY
Politics • Democratic, Secular, constitutional republic • Member of NATO and the EU (European Union) • Charter member of the United Nations • Parliamentary Representative Democracy • The Turkish Armed Forces is the second largest in NATO after the US. Its also considered to be the strongest military power of the Middle East (besides Israel)
Culture • Strong separation of state and religion (at one time the country closed all religious affiliated schools, they were brought back in in the 1950’s) • Veils for women and fez for men were abandoned in the shift from Islam to secularity. • Most of their values and beliefs are from the Islamic faith • Hospitable group • Rural and city life (very westernized in the larger cities) • Not time conscious • Value the youth
Coffee House • Turkish coffee was introduced during the Ottoman empire. It was traded on the Silk Road trade. • To encourage trade Turks would offer hospitality and hostels for travelers • According to the strictest rule of the Koran the sultans forbade the drinking of coffee because it was a drug. However it became so popular that the palace allowed its consumption.
Coffee House • A place where men assemble (sometimes instead of pray time). It’s the center of everyone • At most Coffee house’s Turks bring in food, like flat bread and baklava • You can get coffee or tea and water. The coffee is “muddy”. • Women are allowed in the Coffee house but most have it in Privacy of their own home
Women • 1925 the wearing of the veils by Turkish women was officially discouraged. • However you will notice most Turkish women today still wear the head scarfs of the Muslim tradition. • Unmarried women are supervised closely by families even the Urban women. • Women often take care of not only the housework and children but often the elderly. They do not have homes for the elders in Turkey
Women • Allowed to influence the husbands decisions but can only quietly oppose • Turkey has low scores on the dimension of gender egalitarianism practices. In public its usually 2 women to every 8 men. • Strong emotional inner strength • Most are happy with their way of life • Allowed to have jobs, however most stay home and weave carpets, do ceramics and mosaics and sell them to tourist. • Urban women are equally educated have more of a say in the decisions • One of the first countries to allow women to vote
Education • Education for the masses • High respect for educators • Teach math, sciences, history, Turkish (and one other language either English, French or German), art, music, physical education and Morals! • Tested for each level of school • Parents will sacrifice for Tudors and special school, any way to help/make their children succeed.
Economy • Turkey has the worlds 15th largest GDP 1.116 trillion • Tourism has been one of their fastest growing parts of their economy • Agriculture is the largest at 9% of the GDP • The automotive industry is on the rise its 6th in largest in Europe • Has a free trade agreement with the European Union
Comparisons Ethiopia • Ethiopia was part of the Ottoman Empire • Their relationship is described as excellent both politically and economically • In 2008 the two counties made a trade agreement. • Agriculture and Tourism • Turkey owns textile factories in Ethiopia • Turkey is sharing its experience and providing assistance to ongoing efforts to rehabilitate and extent Ethiopia's railway system.
Chapter 2 IncorporationCost Globalization Drivers • Global Scale Economies – applies when single country markets are not large enough to allow competitors to achieve optimum scale • Steep experience curve effect – • Sourcing Efficiencies – the market for supplies may allow centralized purchasing to achieve savings in the cost of production
Favorable Logistics – a favorable ratio of sales value to transportation cost enhances the ability to concentrate production. It also increases rivalry among existing competitors by expanding the geographic scope of competition. • Difference in country costs (including exchange rates) – differences in country cost can provide a strong spur to globalization. Concentration of activities in low cost or high skilled countries can increase productivity and reduce cost. • High Product Development costs – This is relative to the size of national markets and can act as a driver to globalization. • Rapidly Changing Technology –in products or processes, usually accompanies high product development costs, and in itself already increases industry globalization potential.
References • http://en.wikipedia.org/wiki/Ethiopia–Turkey_relations • http://en.wikipedia.org/wiki/Turkey • http://www.eubusiness.com/europe/turkey/econ • https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html
BRAZIL - Preview • Quick Facts • History • Geography • Culture • Economy • Business in Brazil • Similarities to Ethiopia • Holiday Inn
Quick Facts Total Population: 192,376,496 Ethnic Groups: 47.73% White 43.13% Brown (Multiracial) 7.61% Black 1.09% Asian 0.43% Amerindian Size: 3,287,597 sq mi (5th in world) Language: Portuguese Religions: 73.8% Catholic 15.4% Protestant 7.4% No Religion 1.3% Spiritualism Brazil Entymology: Brasilwood
History • Colonized by Portugal in 1500 • Portuguese fleet led by Pedro Cabral • Natives were incorporated in society, enslaved, or exterminated • Fought with other colonies (British, Spanish, and French) until 1777 creating current borders
Portuguese royalty fled Napoleon in 1808 establishing Petrópolis (RJ) • Brazil elevated to sovereign kingdom and housed Portugal’s government until 1822 • 1822 saw royalty return and an effort to return Brazil to a colony again • Pedro, Portugal’s prince revolted with Brazilian people and became first emperor
Present-Day Politics • Monarchy was overthrown in 1889, country entered turbulent with mixed efforts at democracy broken up by long periods with dictators • General Ernesto Geisel, “slow, gradual, and safe” approach to democracy • Country slowly began to modernize its infrastructure and progress economically • Current President, DilmaRouseff, is the country’s first female president (36th)
Geography • Brazil is slightly smaller than US • Contains many of the same climates as US but in different proportions • Pico de Neblina is the highest point at 9823 ft. • Amazon basin is largely unpopulated and considered to have the richest biodiversity in the world • Other major landmarks include the Iguazu Falls and the Serra do Mar mountains
Brazilian Culture • Strong European, African, and Indigenous influences • When you think of Brazil, you should think of: http://www.youtube.com/watch?v=A7auPPIO5mU&feature=related http://www.youtube.com/watch?v=aqm5zavFlM0
Economy • GDP – $2.284 Trillion (8th) • Labor Force – 104.3 million (6th) • Population below poverty line – 26% • Part of G20 • Unemployment Rate – 6.1% • Inflation Rate – 6.9% • Export partners - China 15.2%, US 9.6%, Argentina 9.2%, Netherlands 5.1%, Germany 4% (2010) • Exchange Rate – 1.7 real/dollar • Sector Composition – agriculture: 5.8% industry: 26.9% services: 67.3% (2011 est.)
http://www.youtube.com/watch?v=6T041Fgbt7g&feature=related Business in Brazil • São Paulo is the largest city and considered the business center for Brazil • Brazil was one of the first to emerge from the 2008 recession • Attracts foreign investors because of its high interest rates • Considered the most developed South American country • Country continues to focus on stable growth
Applications to Ethiopia • Much like Brazil, Ethiopia is a popular tourist destination • Some drawbacks include regional instability, lack of infrastructure, and widespread poverty • Despite being a landlocked country, it has much to offer: • System of National Parks • Biggest Cave in Africa • Great Biological Diversity • Several Historical Cities and Sites
Holiday InnGetting to Know the Company • InterContinental Hotel Group out of Denham, UK • Includes ~3800 hotels, none of which operate in Ethiopia • Present in eight African countries, the closest being Eritrea and Kenya • Holiday Inn Brands include: • Holiday Inn (HI) • HI Hotels and Resorts • HI Club Resorts • HI Express
Holiday Inn In Ethiopia • Holiday Inn Hotels and Resorts probably the best fit for Ethiopia • Closest location is in Jordan (Dead Sea) • No resorts in Africa • Main competitors are Hampton Inn, Hilton*, and Marriott* • Possibly consider Addis Ababa or Gondar
Review • Quick Facts • History • Geography • Culture • Economy • Business in Brazil • Similarities to Ethiopia • Holiday Inn
Sources • https://www.cia.gov/library/publications/the-world-factbook/geos/br.html • http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071025_259337.htm • http://nazret.com/blog/index.php/2009/12/05/how_brazil_transformed_itself_lessons_fo?blog=15 • http://en.wikipedia.org/wiki/Brazil
Poland Facts Capital of Poland is Warsaw Poland people are called “Poles” Population is 38,441,558. Poland ranks 34th in the World based on population. Majority of population is Polish – 96.7% Majority of Poles are Roman Catholic – 89.8%
Area: 312,685 sq. km – ranks 70th in the world • Slightly smaller than New Mexico • Boarder Countries: Belarus 605 km, Czech Republic 615 km, Germany 456 km, Lithuania 91 km, Russia (Kaliningrad Oblast) 432 km, Slovakia 420 km, Ukraine 428 km
History • During the 16th Century Poland was large and powerful. • State was ran by parliament used liberum veto – which meant that any member of parliament could defeat any legislation with one vote. • Poland then became dominated by its three strong neighbors – Russia, Prussia and Austria • http://www.youtube.com/watch?v=C4v7jwwGqEw&t=8s
History • World War II killed about 30% of Poland’s population. • Communism was adopted as the state ideology in 1948 • In 1989 Communism was overthrown and today has a Republic Government
Religion • Catholic Church plays a prominence importance on the Polish people’s lives. • Celebration of “name days”, rather than birthdays – to celebrate the saints that many Poles are named after.
Culture • Poles value ownership of property and take great pride in their possessions. • In many Poland homes there is a special room for visitors to sit in so the owner of the home can entertain them and show off their possesions. • Houses are built in steps: • Step 1 – habitable (families live in this section) • All of floors of the house will be built when more money is available
Culture • Bribery very common in everyday life and workplace. • Poles are proud people and it is reflected in their clothing. • Young Poles is cities wear designer fashions • Older Women wear Communist-era coat with a pink/purple hat • Village women wear scarves on their heads, differ in design based on which region of Poland they live in.
Economy • GDP: $765.6 Billion (21st) • Labor Force: 17.93 million (34th) • Unemployment: 12% (126th) • Population below poverty line: 17% • Sector Composition: • agriculture: 3.4% • industry: 33.6% • services: 63% • Exports: $197.1 billion (29th) • Partners: Germany 26.9%, France 7.1%, UK 6.4%, Italy 6.3%, Czech Republic 6.2%, Netherlands 4.3%, Russia 4.1% • Imports: $217.9 billion (23rd) • Partners: Germany 29.1%, Russia 8.8%, Netherlands 6%, Italy 5.8%, China 5.6%, France 4.5%, Czech Republic 4.2%
Business Etiquette Shake hands with everyone upon arriving and leaving. Handshakes are quite firm and eye contact is valued. Wait for a woman to extend her hand. Some older businessmen may kiss a woman's hand upon meeting. Do not imitate this behavior as it may be seen as you poking fun.