Modern business operations in the Czech Republic

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Modern business operations in the Czech Republic

• ..since 1989

2
An appreciation of dates

• Pre 1914
• Austro-Hungarian empire Czechoslovakia created
  1918
• 1918-1939
• 1939-1945
• German occupation
• 1945-1989
• Communist regime (Influenced by Russia)
• Prague spring 1968
• Velvet revolution November 1989
• Post 1989

3
Traditional industries (1)

• Heavy industry
• Engineering
• Skoda
• Tesla
• Mining
• Black coal
• Soft coal
• Clay
• Graphite
• Silver ? Uranium

4
Traditional industries (2)

• Specialised
• Chemical
• Medical
• Shoes
• Glassware
• Contact lenses
• Films
• Musical instruments
• etc, etc, etc

5
Traditional industries (3)

• Other
• Brewing
• .also, wines and spirits
• Agribusiness
• Livestock ? milk/cheese/meat
• Timber
• Fruit/vegetables
• etc, etc, etc

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During the years up to 1939

• Czech business was oriented towards the west
• Czechoslovakia was the 10th most developed
  industrialised country in the world

7
After 2nd World War

• Communist era
• Czechoslovakia became the workshop of the Soviet
  bloc
• 70 of exports went to Soviet bloc
• Series of yearly and 5-yearly plans

8
In more detail.in 1974

• Skoda
• Tesla
• Bata

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In more detail.in 1974

• Skoda
• Tesla
• Bata

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Europe in the 1970s
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Europe in the 1970s
30
70

• Europe 1978 Czechoslovakia was considered the
  workshop of the Soviet bloc

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Europe in 1990
30
70
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Europe in 1990
30
70
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Europe in 1993
Lost exports eastwards
30
70
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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Europe in 1993
Czech (and Slovak) Republics have to look for
other markets
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After 1989

• Local companies needed to find new business
  partners
• Foreign trade re-oriented towards western markets

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Nowadays

• European Union is the biggest trade partner
• In 2005, more than 84 exports went to the EU-15
  countries
• Sharp increase of foreign investment, especially
  from Germany

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Current Czech manufacturing industries include

• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices

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Automotive industry in the Czech Republic
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Automotive industry in the Czech Republic
Passenger car production (per 100
residents) Source Automobile Industry 4/2006
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Some recent foreign investments in the Czech
automotive industry

• Volkswagen sole owner of Skoda
• Toyota-Peugeot-Citroen
• Iveco

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Some Czech automotive component suppliers
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Current Czech manufacturing industries include

• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices

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Aerospace industry in the Czech republic

• 10,000 people working across the country

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Current Czech manufacturing industries include

• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices

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Electrical engineering and electronics
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Examples of who does what(1) consumer
electronics

• Panasonic
• flat-panels
• TVHitachi
• flat-panels
• TVIPS Alpha
• LCD modules
• Bang Olufsen
• various consumer electronics
• Candy
• refrigerators

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Examples of who does what(2) automotive

• Kostal
• electronic modules
• Visteon/Autopal
• lighting
• Tyco Electronics
• various components
• Siemens VDO
• Automotivecontrol modules, sensors, panels

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Examples of who does what(3) IT

• Foxconn
• PC routers
• Asus
• PC
• High-tech repair centre
• FIC
• PC
• Inventec
• PC

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Current Czech manufacturing industries include

• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices

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High-tech engineering

• Between 80 and 90 of production is exported
• RD driven
• Includes
• Instrumentation
• Machine tools
• Railway industry

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Instrumentation

• Around 4,000 specialised workers in this sector,
  eg
• Central Bohemia region 13.9
• Siemens and Linet
• Olomouc region 12.5
• Meopta optics and Invensis appliance controls
• Prague 12.4
• Honeywell

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Machine tools

• Approx 50 companies
• About 90 of production are specialist cutting
  machines. Approx 80 are exported to
• (mostly) Germany
• Other EU countries
• US Canada
• and China, Russia, India and South America

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Railway industry

• (Includes tramways)
• Three large factories Prague, Plzen and
  Koprivnice
• 30 turnover is exported worldwide

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Current Czech manufacturing industries include

• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices

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Life science and Medical devices

• Life science
• Especially Biotech and pharmaceutical industries
• Medical devices, eg
• Hospital beds
• Ventilators
• X-ray equipment
• Dental technology
• Mobile hospitals
• Technical gases

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Modern Service businesses in the Czech Republic
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A few statistics
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A few statistics

• 56 of all employees are
• in the service sector
• 53 of those are women

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The main service industries
Jachymov Radon Spa

• Tourism
• Retail
• Accommodation
• Boarding
• ie Restaurants and catering
• Banking Finance
• Post and Telecommunications

Karlovy vary spa
Beer spa
Czech chata
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Other service industries

• Information services, guides, translators
• Cultural (Concerts castles programmes)
• Health (Private public insurance
  prescriptions alternative treatments)
• Transportation (city transport taxis car
  rentals international logistics)
• Libraries (including e-government)
• Cleaning (Public and private buildings and
  households)
• Education (includes specialised education)
• Consultants (entrepreneurial opportunities eg
  HR)
• Legal
• Real estate

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Some service businesses in Prague

• Business process outsourcing
• Accenture Ariba Infosys
• IT and Logistics
• DHL Fedex IBM Tesco
• Customer support centre
• GE Bank Icon Lufthansa Phillips Team Trackers
• Shared services centre
• Exxon Mobil Johnson Johnson Siemens Tesco
• High-tech repair centre
• Symbol technologies

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Links

• Czech Statistics Office http//www.czso.cz/eng/
  redakce.nsf/i/home
• Czech Republic (Official website)
  http//www.czech.cz
• About Czech service industries (you can open this
  website with confidence Richard) http//tin
  yurl.com/35wdx5

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Thank you!