Chapter 2: Diagnosing Industry Globalization Potential
Chapter 5: The Turkish Coffehouse
Chapter 6: The Brazilian Samba
Chapter 7: The Polish Village Church
Christi Felton
Vic Ashdown
Lydia Palma
Republic of Turkey
Turkey Facts
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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
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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
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 Incorporation
Cost 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/eco
n
• https://www.cia.gov/library/publications/theworld-factbook/geos/tu.html
Brazil
BRAZIL - Preview
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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, Dilma Rouseff, 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
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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.)
Chapter 2 Notes
Government
Globalization Drivers
- Favorable Trade
Policies
- Compatible
Technical Standards
- Common
Regulations
- Government-owned:
• Competitors
• Customers
- Host Government
Concerns
http://www.youtube.com/watch?v=6T041Fg
bt7g&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:
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System of National Parks
Biggest Cave in Africa
Great Biological Diversity
Several Historical Cities and Sites
Holiday Inn
Getting 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:
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Holiday Inn (HI)
HI Hotels and Resorts
HI Club Resorts
HI Express
Chapter 2 Notes
Cost Globalization Drivers
- Scale vs. Scope
- Steepen the
Experience Curve
- Gain Sourcing
Efficiencies
-Different country cost
spurs globalization
-Logistical Awareness
• Lowers cost
• Lowers barriers
-High Development Cost
-Fast Changing
Technologies
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
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Quick Facts
History
Geography
Culture
Economy
Business in Brazil
Similarities to Ethiopia
Holiday Inn
Sources
• https://www.cia.gov/library/publications/theworld-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?bl
og=15
• http://en.wikipedia.org/wiki/Brazil
Poland
http://www.youtube.com/watch?v=qMNMeJqG7U&t=5s
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
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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.
Business in Poland
• Market system divided between genreational
and geographical lines.
• Marriott recruiters looked for young Poles to
hire who did not have any experience.
▫ Managers of Marriott wanted to be able to make the
young Poles believe in capitalistic incentives rather
than Communism
• Entreprenuership has been
the heart of Poland since 1989
▫ Poles know how to survive during
their economic hardships
Chapter 2 Incorporation
Market Globalization Drivers
• Common Customer Needs & Tastes: the extent to which
customers from different countries want the same things in
the product or service
• Global Customers and Channels: customers buy on a
centralized or coordinated basis for decentralized use,
selection of vendors is done centrally.
• Transferable Marketing: makes it easy to expand participation
in countries. (Marriott – Poland, Holiday Inn – Ethiopia)
• Lead Countries: innovation in products can be concentrated
in one or few countries due to the presence of innovative
competitors.
Ethiopia Competitive Globalization
Drivers
• Two Way trade (Turkey and Ethiopia have a free
trade agreement)
• High exports and Imports
• Competitors from different continents
• Interdependence of countries
• Competitors globalized
• Transferable competitive advantage
Sources
http://www.eubusiness.com/europe/poland
https://www.cia.gov/library/publications/theworld-factbook/geos/pl.html
http://www.kwintessential.co.uk/resources/g
lobal-etiquette/poland.html