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Doing Business in Common European Space

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Title: Doing Business in Common European Space


1
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

2
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...

3
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

4
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

5
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

6
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

7
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.

8
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

9
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

10
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

11
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

12
  • back

13
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

14
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

15
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/

16
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

17
  • back

18
  • back

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21
  • back

22
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

23
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/

24
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.

25
Number of the Directives to be implemented before
end of 2000 per countries
26
of Internal Market Decisions not yet transposed
across the whole of Union
27
Breakdown of reasoned opinions
28
9 free movement of persons

40free movement of goods

47Establishment and provision of

services

22Taxes
14Public
procurement
15Social affairs

8 Consumer affairs

35environment
Breakdown by sector of reasoned opinions
29
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/

30
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
  • back

33
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/

34
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.

35
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/

36
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.

37
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

38
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

39
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.

40
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
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