Doing Business in Common European Space

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Doing Business in Common European Space

• Performed by associated professorVito Bobek,
  Ph.D.
• 
  http//www.uni-mb.si/epfbobekv
• Post-graduate (M.A.) degree at the FEB
• Seminar work (SW) is compulsory
• Title and structure should be approved by
  professor
• SW should be conducted according to guidelines
• SW should be submitted as an attachment by e-mail
  
  vito.bobek_at_uni-mb.si
• Written exam
• Compulsory literature Mercado, Simon, Richard
  Welford, Kate Prescott. 2001. European Business.
  Harlow Pearson Education.
  
  http//www.booksites.net/mercado

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Aim and structure

• Aim
• To raise the key issues facing European business
  today
• To account for and to evaluate some of the
  strategic and operational responses to Europes
  evolving environment
• Structure
• Part I. Changing environments of Europe and
  their implications for business
• Contents of Part I. The
  new European business environment
• Part II. Different strategies pursued by firms
• Contents of part
  II The strategy and structure of European...

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Contents of Part I.The new European business
environment

• Understanding the EU
• The Internal Market
• The - a currency for Europe
• Competition, aid and industry EU policy action
• The European Workforce change and regulation
• The transition economies CEE Aim and
  structure

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Contents of part IIThe strategy and structure of
European business

• Strategy and the Single European Market
• Marketing in the new Europe
• Managing cultural diversity
• Environemental policies and management
• European business competing in the global
  marketplace Aim and structure

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BackgroundsCreation of European Marketplace

• Harmonisation of laws and practices regulating
  commercial activity
• Supranational business regulation
• The EU itself has expanded its role
• Marketing and sales regulation
• Employment law
• Consumer protection
• Taxation

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BackgroundsNew European environment is being
created

• General characteristics of the European
  marketplace
• Bigger (widening and deepening)
• With reduced barriers (regulatory, fiscal,
  commercial,...)
• Globalisation
• Technical revolution (e-commerce, new business
  structures)
• ?
• Key to the future competitiveness
• Operational flexibility
• Innovation
• Market reach
• Business networks

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Business and Economy in the new Europe I

• Objectives
• To define European business and to characterise
  the heterogeneous nature of business in Europe.
  types
• To identify the prime variables which comprise
  the external business environment of (European)
  firms and to identify key features of an evolving
  European commercial environment.
  Business
  environment
• To describe primary characteristics of the
  European economies and to provide a broad
  macroeconomic profile of the EU economies.

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Business and Economy in the new Europe II

• Objectives
• To highlight the interdependence of national
  economies in Europe and to identify major
  regional economic groupings.
• picture
• To provide a core-periphery profile of the EU
  economies and to highlight a dispersal of wealth
  and economic activity across the European
  regions. New Europe
• To establish a foundation for succeeding
  concentrations on aspects of the European
  business environment and strategic management in
  Europe.
  Web sites

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Types of European businesses

• Definition
• International in character or purely domestic in
  scope
• All kinds of businesses
• Terminology
• Basic terms regarding the EU and other regional
  groupings in Europe
• Size structure
• Micro-enterprises (up to 10 employees)
• Small-enterprises (max. 50 employees)
• Medium-sized enterprises (max. 250 employees)
• Large enterprises
• Market scope (international, domestic sectoral
  focus)
• Legal form back

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The evolving European business environment

• National economies are increasingly
  interconnected and interdependent
• Economic policies and policy approaches are
  increasingly interconnected
• Regulatory regime is increasingly European
• E-commerce included in Single Internal market
  rules
• ?
• Part I. of the book
• picture

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The business environment a modelling

• Legal influences Political
  influences Technological influences
• Customers Suppliers
• The firm
• internal environment
• Competitors Human and other
• resources
• Ecological-environmental Socio-cultural
  Economic influences
• Influences influences
• back

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The new European economy

• Post-industrial Europe (services account app. 2/3
  of GDPs)
• Core and periphery
• 208 NUTS II regions
• Ranging from 44 to 192 of average GDP in EU
• Hot banana
• 50 out of 208 are below 75 of average GDP
• 77 out of 89 in CEE are below 75 of average GDP
• Interdependent Europe (70 of foreign trade
  performed with the EU)
• Subgroupings
• back

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Business and Economy in the new EuropeRelated
web-sites I

• The listed URLs cover the different themes
  and concentrations of the chapter with a
  particular emphasis on sources of European
  business news and information. A review of the
  chapter web-collection highlights an array of
  potential information sources on national and
  regional economies, and on European business
  news, rankings and performance.
• Information on the European economies (incl.
  Macroeconomic data)
• EUROSTAT http//europa.eu.int/comm/eurostat
• European commission http//europa.eu.int/comm/econ
  omy_finance
• OECD http//www.oecd.org/publications/figures/inde
  x.htm
• CIA http//www.odci.gov/cia/publications/factbook
• UN/ECE http//www.unece.org/stats/trend/trend_h.ht
  m

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Business and Economy in the new EuropeRelated
web-sites II

• Congress Country Studies http//lcweb2.loc.gov/frd
  /cs/cshome.html
• Newswire
• BBC News (Europe) http//news.bbc.co.uk/hi/englis
  h/world/europe/
• EU Business News http//www.eubusiness.com/
• Price WaterhouseCoopers European economic
  outlook http//www.pwcglobal.com/gx/eng/ins-sol/
  spec-int/eeo/index.html
• BusinessEurope.com (SME news dialogue)
  http//www.businesseurope.com/index.en.jsp
• Companies, profiles, news rankings
• Financial Times European performance league
  http//www.ft.com/euroleague/
• Kompass (the International business search
  engine) http//www.kompass.com/

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Understanding the EU

• Chapter objectives 
• To explain and account for the development of the
  post-war European communities.
  
  picture
• To describe the re-launching of the European
  Communities and the central provisions of the
  Single European Act (1986).
• To examine the Maastricht and Amsterdam Treaties
  and their contribution to European Union.
  
  picture
• To profile key theories of European (political)
  integration and to relate these to the
  integration process.
• To explore the institutional and procedural
  features of the European Union
  
  
  picture
• To introduce forms of EU action and legislation
  and their impact on Europes business
  environments.
  picture

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EU policies impact on business

• Cohesion and regional development
  Research and technological development
• Competition Employment and social
  protection Enterprise
• Energy Industry
• External trade Environment
• Consumer protection Transport
• EU tax laws EU company law
• Economic and monetary policy
• Policies establishing the Single European Market
• On the free movement of persons, capital,
  services and labour
• On the approximation of national laws,
  regulations or administrative provisions directly
  affecting the establishment or functioning of the
  common market

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Understanding the EURelated web-sites

• The Institutions
• EUROPA integrated server of the EU institutions
  http//europa.eu.int/
• Legislative information
•  EUR-Lex (full-text legislative information)
  http//europa.eu.int/eur-lex
• Resource banks and listings of EU information
  sources
• European Information Association (EIA)
  http//www.eia.org.uk/
• European Communities Study Association (ECSA)
  http//www.ecsanet.org/eudoc.htm
• EU News updates
•  EU Observer.com http//www.euobserver.com/
• Agence Europe http//www.agence-europe.com/

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The Internal Market

• Chapter objectives
• To examine the history of market integration in
  the EU, including the Internal Market Programme
  (IMP).
• To outline the different forms of economic
  integration and the stages model of regional
  economic integration.
• To explain how the Single European Market (SEM)
  works and functions.
• To evidence the impact of regional market
  integration on organizational and commercial
  environments in the EU/EEA.
• To assess the costs and benefits of the Single
  European Market for firms and other economic
  agents.
• To evaluate progress with Single Market
  completion and to identify current caveats in the
  internal market system.

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Number of the Directives to be implemented before
end of 2000 per countries
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of Internal Market Decisions not yet transposed
across the whole of Union
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Breakdown of reasoned opinions
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9 free movement of persons

40free movement of goods

47Establishment and provision of

services

22Taxes
14Public
procurement
15Social affairs

8 Consumer affairs

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Breakdown by sector of reasoned opinions
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The Internal MarketRelated web-sites

• European Parliament Single Market Fact Sheet
  http//www.europarl.eu.int/dg4/factsheets/default.
  htm - 3
• EUROPA Internal Market index http//europa.eu.in
  t/pol/singl/index_en.htm
• EU Business News Economy (EU market news and
  related stories)
• http//www.eubusiness.com/
• The European Commission Internal Market
  Directorate-General
• http//europa.eu.int/comm/dgs/internal_marke
  t/index_en.htm
• European Commission 'Single Market Scoreboard'
• http//europa.eu.int/comm/internal_market/en
  /update/score/index.htm
• European Commission 'Dialogue With Business'
  http//europa.eu.int/business/en/index.html
• Green and White Papers (Internal Market)
• http//www.uni-mannheim.de/users/ddz/edz/dok
  u/wirte.html - publi
•  Office for Harmonization in the Internal Market
  http//www.oami.eu.int/

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The - a currency for Europe

• Chapter objectives
• To examine the history of European monetary
  integration
• To evaluate progress towards European Economic
  Monetary Union (EMU).
  
  
• To highlight the ramifications of EMU for
  economic agents in the EU, including public
  authorities, consumers, and business firms.
  picture
• To highlight strategic and technical issues for
  business firms, including euro conversion
  challenges and strategies.
• To assess and evaluate the costs and benefits
  of EMU.
• To discuss the relationship between EMU and tax
  and fiscal systems in the member states.
  
  web-sites

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2002

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The - a currency for EuropeRelated web-sites

• Institutions and Authorities
• EUROPA Euro entry site http//europa.eu.int/eur
  o/html/home5.html?lang5
• EUROPA Euro Links (monetary institutions and
  authorities)
• http//europa.eu.int/euro/html/liens5.html?l
  ang5 - group0
• The European Central Bank (ECB)
  http//www.ecb.int/
• News and Developments
• EU Business News Economic Monetary Union
  http//www.eubusiness.com/emu/index.htm
• BBC News The Euro
• http//news.bbc.co.uk/hi/english/events/the_
  launch_of_emu/euro_home/default.htm
•  Transition aspects
•  Association for the Monetary Union of Europe
  http//amue.if.net/
• Federation des Experts Compatables Europeens
  http//www.euro.fee.be/

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Competition, aid and industry

• Chapter objectives 
• To examine the defence and facilitation of the
  Single Market by EU competition rules.
• To profile the legal basis of EU competition
  policy, including the regulation of mergers and
  acquisitions.
• To assess the relationship between EU competition
  rules and systems of industrial aid and regional
  assistance in the EU-15.
• To review many of the arguments and disputes
  surrounding the granting of aid and subsidies to
  European firms and their industries.
• To characterise the EUs policies on cohesion and
  regional development.
• To account for the development of joint
  policies on enterprise, research technological
  development, and to evaluate their performance.

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Competition, aid and industryRelated web-sites

• European Parliament Policy Fact Sheet
  http//www.europarl.eu.int/dg4/factsheets/en/ - 3
• EUROPA Competition Policy Summary
  http//europa.eu.int/pol/comp/index_en.htm
• EU Business News (Competition News)
  http//www.eubusiness.com/competit/index.htm
• The European Commission Competition
  Directorate-General
• http//europa.eu.int/comm/dgs/competition/inde
  x_en.htm
•  Regional aid/policy
• INFOREGIO http//www.inforegio.cec.eu.int/

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The European workforce change and regulation

• Chapter objectives
• To detail the history of EU social and employment
  policies, their content, mission and legal basis.
• To profile key (EU) legislative initiatives on
  employment and the substance of social action
  programming at EU-level.
• To explain structural change in European labour
  markets and differences in national employment
  systems and policies.
• To address equal opportunities concerns and the
  trend towards labour market feminization.
• To assess systems of industrial relations in
  EU-Europe and features of contemporary unionism.
• To describe and account for new trends and
  practices in industrial production, and their
  contribution to the working experience.

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PUTTING EMPLOYMENT POLICY AT THE HEART OF THE
UNION

• a new chapter on employment
• promoting a skilled and adaptable workforce
• coordinating employment policies across Europe
• encouraging dialogue between employers and workers

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The European workforce change and regulation
Related web-sites

• National policies EU legislation
•  European Commission Employment Social Affairs
  Directorate
• http//europa.eu.int/comm/dgs/employment_soc
  ial/index_en.htm
• EU Business News Employment News
  http//www.eubusiness.com/employ/index.htm
• Industrial Relations
• The European Trades Union Congress (ETUC)
  http//www.etuc.org/
• EIROn-Line (European Industrial Relations
  Observatory) http//www.eiro.eurofound.ie//
  
• ELCID (European Living Conditions Information
  Directory)
• http//www.eurofound.ie/information/elcid.html
  

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The transition economies Central and Eastern
Europe

• Chapter objectives
• To review the central features of economic and
  political transformation in Central and Eastern
  Europe.
• To provide a comparison of the progress in
  market-oriented reforms across the region and to
  highlight general trends in transition within and
  between countries.
• To examine the changing pattern of relations
  between the EU and the Central and East European
  countries, including progress towards
  (eastward) EU enlargement.
• To identify potential business opportunities in
  the region and the different forms of foreign
  direct investment (FDI).
• To examine some of the problems and benefits of
  doing business in Central and Eastern Europe.

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GETTING EUROPE READY FOR ENLARGEMENT

• The Commission will be limited to one member
  from each state
• large states give up their second Commissioner
• voting weights in Council will be readjusted
• number of MEPs limited to 700

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CEE Related web-sites

• Organisations and institutions
• European Commission http//europa.eu.int/comm/enla
  rgement/index.htm
• European Commission (covering the NIS and S-E
  Europe) http//europa.eu.int/comm/e
  xternal_relations/index.htm
• EBRD http//www.ebrd.com/ 
• News services and intelligence
•  EU Business News (Eastern Europe)
• http//www.eubusiness.com/easteuro/index.ht
  m
• Business Central Europe Magazine
  http//www.bcemag.com/
• Central Europe Online http//www.centraleurope.co
  m/
•  Additional links
• Prague/Budapest/Warsaw Business Journal
  http//www.pbj.cz// bbj.hu/wbj.pl
• CEE Business Directory http//www.ceebd.co.uk/cee
  bd/countr.htm