Transcript THE MIDDLE EAST ECONOMY - Bar

COMPETITIVE ADVANTAGE IN ISRAEL
Factor Conditions & Government
• High Education Level
• Motivated Labor Force
• Well Developed Infrastructure
• Knowledge
• Capital Resources
• Lack of Transparency
• Incentives for Investment
Demand Conditions
• Public Sector Dominance
• Concentration in Private Sector
• Decreasing Role of Government
Strategy, Structure & Rivalry
• High Exposure to Competition
• Targeting Export markets
• Good Work Relations
• Planning Short Term
Related & Supporting Industries
• Micro Electronics
• Industries Related & Supporting
Agriculture
• Defense
COMPETITIVE ADVANTAGE IN EGYPT
Factor Conditions & Government
• Physical Resources
• Strategic Location
• Moderate Climate
• Low Cost labor Force
• Shortage of Skilled Labor
• Weak Infrastructure Services
• Bureaucracy
• Weak Financial Sector
Demand Conditions
• Lack of Sufficient Market Information
• Weak Marketing & Distribution
Strategy, Structure & Rivalry
• Vertical Integration
• State Owned Enterprises
• Increasing Private Sector
Participation
Related & Supporting Industries
• Textiles
• Household Equipment
• Food Processing
• Tourism
• Engineering Construction
COMPETITIVE ADVANTAGE IN JORDAN
Factor Conditions & Government
• Few Natural Resources
• Shortage in Skilled Labor
• Young Population
• Well Developed Transportation
• Good Banking System
• Stabilization Policy
Strategy, Structure & Rivalry
• Monopolization in Key Sectors
• State Owned Companies
• Gradual Privatization
• Support to Export/Investment
Demand Conditions
• Lack of Sophistication
• Concentration, 80% Amman/Jordan
Valley
Related & Supporting Industries
• Potential Cluster in Phosphates
• Limited Specialized Manufacturing
COMPETITIVE ADVANTAGE IN THE
MIDDLE EAST
Factor Conditions & Government
• Egypt lowest labor cost
• PA highest labor cost
• Jordanian universities not adapted to
needs.
• Israeli high skilled labor,
• Knowledge sharing (QIZ)
Strategy, Structure & Rivalry
• Competition between
Jordan, Egypt and PA on
Israeli contracts
• Israeli new specializations,
product differentiation
Demand Conditions
• Mutual impact of demand
sophistication (irrigation)
• Economies of scale for Israeli
producers
• Arab software
Related & Supporting Industries
• Textiles (Egyptian upper level)
• Mining ,Chemicals(Phosphates)
• Tourism
6.
Competitive Strategy
PERIODS OF DEVELOPMENT
Keegan
Porter
Stage 1
Very Low
Stage 2
Low
Phase I
Factor
Driven
Phase II
Investment
Driven
Period I
Basic
Period II
Low Cost
Input
Phase III
Innovation
Driven
Stage 3
Medium
Stage 4
High
Period III
Specialized
Period IV
Innovate
IDENTIFICATION PARAMETERS
COUNTRY LEVEL
FIRM/SECTOR LEVEL
PRODUCT
LEVEL
RELATIVE IMPORTANCE OF FIRM IDENTIFICATION
PARAMETERS IN EACH PERIOD
Research
Manufacturing
Marketing
High
Medium
Marketing
Manufacturing
Research
Low
Period I
Period II
Period III
Period IV
RELATIVE IMPORTANCE OF PRODUCT IDENTIFICATION
PARAMETERS IN EACH PERIOD
Quality
Attributes
Design
Price
Efficiency
High
Medium
Efficiency
Price
Design
Low
Attributes
Quality
Period I
Period II
Period III
Period IV
PERIOD OF DEVELOPMENT OF INPUT AGRICULTURA
BASED INDUSTRIES ACCORDING FIRM/PRODUCT
INDENTIFICATION PARAMETERS
Period III
Input ABI
Period IV
High
Medium
Efficiency
Price
Design
Period IV
Attributes
. Quality
Marketing
Manufact
Research
Low
Period III
PERIOD OF DEVELOPMENT OF OUTPUT
AGRICULTURAL BASED INDUSTRIES ACCORDING
FIRM/PRODUCT INDENTIFICATION PARAMETERS
Period III
Output ABI
Period IV
High
Medium
Efficiency
Price
Design
Attributes
. Quality
Marketing
Manufact
Research
Low
Period IV
Period III
FORCES DRIVING INDUSTRY COMPETITION
Potential
Threats
Entrants
Bargaining Power
Bargaining Power
Suppliers
Industry
Competitors
Substitutes
Threats
Buyers
7. Business Culture
SOCIAL AND CULTURAL
ENVIRONMENTS
Culture = Way of Living
Culture universals: George P. Murdock, common
denominator of culture: global not uniform
Athletic sports, body adornment, cooking, rituals,
religion, family feasting, medicine, meal time.
Edward T. Hall: Low context culture (paper work,
US), High context culture (persons’ value, JapanSaudi Arabia)
CONTEXT ORIENTATION IN MAJOR
CULTURES
High Context
Japan
China
Arab
United States
Scandinavia
Germany
Low Context
THE CULTURE ENVIRONMENT
ESSENCE OF
THE CULTURE
Artifacts
hearm smell,
taste, touch
Human
Nature
Values
Rules
Assumptions
Roots
Relationship
Environment
Activity
Truth
Lazy
Rights
Dominate
Create Plan
Objective
Value
Obligations
Submissive
React
Social
IMPACTS OF CULTURE ON
MANAGERIAL BEHAVIORS
Culture Context
Explicit
Implicit
Negotiations
Planning
Non Task Time
Time, Location
Short Formal
Long Informal
Participants
Decision Making
Same Level Large
Position
Relevant level Small
Consensus
HOFSTEDE’S CULTURAL
TYPOLOGY
Power
Distance
Equal
Power
Distance
Unequal
Individual
Masculinity Uncertainty
Collectivist
Femininity Predictability
HOFSTEDE INDEX
Power
Individualism
Distance
Germany
U.K.
France
Japan
USA
Arab
Countries
Israel
Masculinity Uncertainty
Avoidance
35
35
68
54
67
89
71
46
66
66
43
95
65
35
86
92
40
80
91
38
62
53
46
68
13
54
47
81
EMERGING CULTURAL PROFILES
Uncertainty Avoidance
Low(Formalization)
Village Market(Anglo-Nordic) Family (Asian)
Decentralized, Entrepreneurial, Centralized, Paternalistic,
Flexibility, Delegation, Output Loyalty, Personal relations
Control
Well-oiled Machine (German) “Pyramid of People”(Latin)
Decentralized, Narrow Control, Centralized, Elitist, Less
Compartmentalized, Routines
Delegation, Input Control
& Rules
High
Low
Hierarchy
High
HOFSTEDE’S MAPS
Uncertainty Avoidance
Low
DEN
SEW
IRE GBR
NZL NOR
USA CAN
AUT SWI FIN
GER, ISR
SIN
HOK
IND MAL PHI
IRA THA PAK
JAP SPA KOR
TUR FRA MEX POR
High
Small
Power Distance
Large
CULTURE & BUSINESS PROCESSES
Policy & Procedures:
US, low u.a., high formal
reporting
UK, low u.a., detailed jobs
description
Germany, high u.a., well
internalized
Systems & Controls:
French = control(hierarchy),
British=coordinate)
US-UK reporting procedures
French: hiring elites
German operational planning
Planning strategic(UK)
Information &
Communication:
French: Compartmentalized
Sweden: Communication
open informal, transparency
Decision Making:
Participation in decision
making (Sweden, Germanyless hierarchy)
PDG in France –Italy
(Zanussi)
9. Customs Theory and Trade
Agreements
CUSTOMS IMPACTS
TAX
LOCAL
MANUFACTURER
PROTECTION
LOCAL CUSTOMER
PURSHASING
POWER
INCOME
ALLOCATION
CHANGE
PARTIAL EQUILIBRIUM
ANALYSIS OF A TARIFF
Price
S
D
Pw1
Sw1
Pw2
Sw2
Q2
Q4
Q4
Q1
Quantity
IMPACT OF CUSTOMS UNION
AGREEMENTS
Product
Local
Country
Foreign
Partner
Country
Foreign
Third
Country
A Cost
Prior CU
After CU
20
20
20
14
21
14
12
18
18
B Cost
Prior CU
After CU
17
17
17
12
18
12
14
21
21
Trade
Flow
Results
Import
Source
Change
Trade
Diversion
Import
Trade
Creation
INTERNATIONAL ECONOMIC INTEGRATION
FREE TRADE AGREEMENT
Abolition of Tariifs & Quota
CUSTOM UNION
Abolition of Tariffs & Quotas
Common External Tariffs
COMMON MARKET
Removal of Restrictions
on Factors Movements
ECONOMIC UNION
Harmonization of
Economic Policy
MONETARY UNION
Common Monetary
Policy
10-11. The European Union
THE EUROPEAN UNION MILSTONES
•
•
•
•
1945 Two Super Powers
1948-52 Marshall Plan
1951 Schuman Declaration
1951 Paris Agreement
ECSC
• 1957 Roma Agreement EC
• 1968 Custom Union
• 1985 Cockfield’s White
Paper
• 1987 Single European Act
• 1991 Maastricht Treaty
• 1992 SEA Implementation
• 1997 Amsterdam Treaty
• 1999 Monetary Union
• 1999 Nice Treaty
• 2002 Euro
ENLARGEMENT OF THE
EUROPEAN UNION






1956: Germany, France, Benelux, Italy
1971: UK, Ireland, Denmark
1981: Greece
1986: Spain, Portugal
1995: Sweden, Austria, Finland
2004: Poland, Hungary, Tchek Republic,
Cyprus, Slovakia, Malta, Slovenia, Lithuania,
Latvia
POLITICAL GROUPS IN THE E.U. PARLIAMENT
-DEPPE Group of the European People's Party
and European Democrats
PSE
Group of the Party of European Socialists
ELDR
Group of the European Liberal, Democrat and
Reform Party
Verts / Group of the Greens/European Free Alliance
ALE
GUE Confederal Group of the European United Left/Nordic
NGL
Green Left
UEN
Union for Europe of the Nations Group
EDD
Group for a Europe of Democracies and Diversities
NI
Non Attached
THE INSTITUTION OF THE
EUROPEAN UNION
THE COUNCIL
• Commission Proposals
• Legislative Power
• Co-decision with the
Parliament
• Foreign & Security
• Ministers
• The European Council
THE COMMISSION
•
•
•
•
•
Executive Power
Proposes Amendments
Manages Policies
Controls Policies
Implementation
President(Prodi) + 20
Ministers, 24 DG
QUALIFIED MAJORITY
Germany, France, Italy, United Kingdom
10 votes
Spain
8 votes
Belgium, Greece, Netherlands, Portugal
5 votes
Autriche, Suède
4 votes
Danmark, Finland, Ireland
3 votes
Luxembourg
2 votes
Commission proposals must receive 62 votes out of a total of 87 in
order to be approved. To amend a Commission proposal without the
Commission’s consent, unanimity among Council members is
required
POLICIES AND DGS
•
•
•
•
•
•
•
•
•
Agriculture
Audiovisual
Biotechnology
Civil Society
Competition
Consumers
Culture
Custom Union
Economic & Monetary
Union
• Education & Training
• Employment &Social Affairs
• Energy
• Enterprise
• Environment
• Fisheries
• Food Safety
• Freedom, Security & Justice
•
•
•
•
•
•
•
•
•
Information Society
Internal Market
Public Health
Regional Policy
Research & Development
Space
Sport
Taxation
Trans European Networks
• Transport
• International Affairs:
Development,
Enlargement, External
Assistance, External Trade
Foreign Policies,
Humanitarian Aids
• Institutional Affairs
• Finance: Budget, Fraud,
Public Procurement
THE PARLIAMENT
• Legislative Power co
decision with the Council
• Assent Procedure(int.)
• Adoption of the Budget
• Approval of the
Commission
• Participation to the
European Council
THE COURT OF
JUSTICE
• 13 Judges for 6 years
• Request from Private,
Country, Firm
• Unique Legal Power
THE EUROPEAN UNION PARLIAMENT 1999-2004
Tot
al
PPE-DE 6
1
53
9
28
21
5
34
2 9
7
9
5
7
36
232
PSE
5
3
35
9
24
22
1
16
2 6
7
12
3
6
30
181
ELDR
5
6
1
8
1 8
5
4
11
52
2
2
1 4
2
2
6
45
6
1
1
3
Verts/
7
ALE
GUE/
NGL
UEN
EDD
NI
Total
3
4
1
7
7
9
4
11
1
3
4
9
2
25
4
16
99
25
1
12
64
87
6
2
2
2
10
22
3
5
11
15
87
43
6
31
21
25
16
22
2
18
2
33
87
626
THE ECONOMIC &
SOCIAL COMMITTEE
THE COMMITTEE
OF REGIONS
• Representative of Economic
Forces
• 222 Representatives
• Sectorial Commissions
• Social & Economic
Commissions
• Consultative Power
• 222 members
• Trans European Network,
public, Health, Education,
Economic Cohesion
Court of Justice
President
(6 chambers each comprising 3 or 5 juges)
•Action for failure Treaty obligations
(Commission against a Member State or Member State against
another Member State)
•Actions for annulment
(judicial review of the legality of Community acts)
•Actions for failure to act
(against the Parliament, Council or Commission
•Actions for damages
(against Community institutions or servants)
•Preliminary rulings on the interpretation or validity of
Communitylaw
(references from national courts)
•Appeals against judgments of the Court of First Instance
COMPETITION AND EUROPEAN LAW