Post on 08-Jan-2017
INTERNATIONAL BUSINESS DEVELOPMENT STRATEGIES
Lylya Djenane – Sixtine Boulard- Névine Chatila – Axel Barat
Agenda
Context Project Presentation Parameters of influencing costs Quality Operation and ranking Risk analysis Corruption Analyze results Matrices Conclusion
CONTEXT
E Tree is a social company which aims to promote environmental awareness and sustainability, to create a link between the community environment.
Powered by solar panels directly from the sunIndependent unit that produces green energyProvide a wide variety of services
Docking station to charges smartphones, tabletsNight illuminationFree Wi-FiA water trough the animals
PROJECT PRESENTATION
TURKEY
ISRAELTUNISI
A
TUNISIA
Area: 163 610 M²Population: 10 982 754GPD: 47 Bn (2014)GDP Growth: 2,6%% Unemployment:
15%
TURKEY
Area: 783 762 M² Population: 747 242
691GPD: 799,5 Bn (2014)GDP Growth: 3,0%% Unemployment:
9,3%
ISRAEL
Area: 20 770 M²Population: 8 334 000GPD: 304,2 Bn (2014)GDP Growth: 2,8%% Unemployment:
5,3%
ISRAEL
P Does not have peaceful relation with PalestineRepresentative democracy
E Natural resources: 77Bm (2012)Israel export reached 64,74Bm (2012)
S 75,5% of the population are Jewish – 20,6% Arabic 92% of Israelis live in urban areas
T Leader in water technology90% of Israelis homes use solar energy
E Does not have peaceful relation with PalestineR&D represent 4,7 of its GDP
L Unemployment represent 5,3% Tensions and conflicts with the others country
ISRAEL
STRENGTHS
Israel’s workforce is highly educatedMajor industries include high-skill manufacturingIsrael’s start-up scene has been described as “The world’s other Silicon Valley”
WEAKNESSES
Israel lacks a global banking presenceIsrael processes little in the way of natural resourcesThe domestic market is small, so companies must focus internationally
Technology
Health care
Security
OPPORTUNITIES
Almost 40% of Israelis report considering emigrationHostile relationships with neighbouring countriesOn-going unrest and the constant possibility of war
THREATS
TURKEY
P Policies on liberalisation Turkey has known violent terrorist attack
E High flow of foreign investments7th economy of Europe
S Important growth of young population High level of unemployment Religion: Islam and Christianism
T Significant development for Information Communication and Technology Low expenditure cost on Research and Development
E Affluent natural resource Ranked as the 9th on biodiversity throughout Europe High pollution level – Use of chemical and detergents products
L Unemployment represent 9,3%Comprehensive legal structure Robust framework for the business entities
TURKEY
STRENGTHSRapid credit growth in the economy Entrepreneurial business expansion.Steady regulatory improvements make it easier to set up and run a business in the countryGovernment helps and supports start-up businesses
WEAKNESSESInnovation is weakened by the lack of intellectual property rights protection
The desire of investing is still weak compared to other big markets
Located between key markets (Europe, the Middle East, Russia, Central Asia)High evolution of the Turkish Economy these last 10 years Potential of growth in many industries.Turkey bet on technology researches Possibility of expansion
OPPORTUNITIES
Dangerous borders (especially with Syria now)Very competitive environment for entrepreneurs because of a strict slowdown of the economic growth recently.Lack of the skills given by the education system Harder to innovate
THREATS
TUNISIA
P Constitutional Republic, with guarantees rights for women Included in the European Union’s European Neighbourhood Policy (ENP)
E EU’s 30th largest trading partnerOne of the most competitive economy of Africa and the 40th in the world; quite high unemployment rate (15,2%)
S A mixed culture98% of Arab populationHigh education level (6% of the GNP)
T Electricity used is produced locallyFew investment in research and development
E Between tropical and temperate climate ; Humidity and dryness alternateThe water is unequally shared out, rare resource
L Consumer protection law, environmental etc. very strict
TUNISIASTRENGTHS
Strong relations with the European UnionThe government help and supports outsourcing and offshore activitiesHigh education Level
WEAKNESSES
Very few investment in Research & Development
Weak economy of scale
It is a growing economyStrong development of democratic principlesNew recent regulations to facilitate trade by reducing trade barriersEconomy of scale
OPPORTUNITIES
Strong competition between local and international companies To build a start-up becomes very difficult.Progress on trade facilitationGrowing bargaining powers of customers
THREATS
PARAMETERS OF INFLUENCING COSTS
Tunisia Turkey Israel
5.30%
7.14%
-0.40%
Inflation 2015Inflation 2015
Tunisia Turkey Israel
38 34
109
Getting Electricity Rank 2014Getting Electricity 2014
Tunisia Turkey Israel
25%20%
27%
Taxe Rate %Taxe Rate %
PARAMETERS OF INFLUENCING COSTS
Tunisia Turkey Israel
15.418.1
23.2
Profit tax (% of commercial profits) 2014
Profit tax (% of commercial profits) 2014
PARAMETERS OF INFLUENCING COSTS
Tunisia Turkey Israel
145.44
425.17
1063.56
Minimum Wages Eur/Month 2015Minimum Wages Eur/Month 2015
PARAMETERS OF INFLUENCING COSTS
Israel Turkey Tunisia
0.89 €
0.11 € 0.06 €
Price (Eur) of electricity / KWhPrice (Eur) of electricity / KWh
Tunisia Turkey Israel
805990
620
Costs of Export (US dollar per container) price 2014
Costs of Export (US dollar per container) price 2014
Tunisia Turkey Israel
9101235
565
Costs of Import (US dollar per container) price 2014
Costs of Import (US dollar per container) price 2014
PARAMETERS OF INFLUENCING COSTS
ISRAEL TURKEY TUNISIAInflation rate
Profit TaxGetting
Electricity Price of
ElectricityLabour and
Social Database
ISRAEL TURKEY TUNISIAMinimum Wages-
EUR/Months
Economic Policy and
Debt Database
CONCLUSION KEY SUCCESS FACTOR #1
ISRAEL TURKEY TUNISIACosts to exportCosts to import
Private sector
QUALITY
Tunisia Turkey Israel
79.6594.92 97.76
Literacy rate, adult total (% of people ages 15 and above)Literacy rate, adult total (% of people ages 15 and
above)
Tunisia Turey Israel
47.6 49.463.4
Labor force participation rate (% of female population ages
15+)Labor force participation rate (% of population ages ...
QUALITY
Tunisia Turkey Israel0
5
10
15
20
25
30
Long-term Unemployment (%)
Long-term Unemployment (%)
NC
QUALITYInternational Human Development Indicators
QUALITY
ISRAELYES! * For Israel sees energy revolution as an opportunity to seize, creating wealth and employment
TUNISIA
YES! * Environment? A priority area of work with Tunisian civil society* Companies and associations participate independently in the dynamics of the sector know-how and investments.
TURKEY
YES!* Istanbul 2020 reinforces its commitment to ecology by announcing a tree will be planted for each person participating in the 10th United Nations Forum on Forests in Istanbul; (already more than one million trees in Istanbul since 2011)
Sensitive to Sustainable Development / Green Tech
CONCLUSION KEY SUCCESS FACTOR #2
TUNISIA TURKEY ISRAEL
HDI
Literacy
Labor force participation rate
Labor Force Female
Long Term Unemployment
OPERATIONS AND RANKING
Tunisia Turkey Israel
20
1410
Time to import (days) 2014Time to import (days) 2014
Tunisia Turkey Israel
1613
10
Time to Export (days) 2014Time to Export (days) 2014
OPERATIONS AND RANKING
Tunisia Turkey Israel
47.7
40.5
Average usual weekly hours worked 2014Average usual weekly hours worked 2014
NC
Countries Risk Analysis
Sovereign Risk
Currency Risk
Banking Sector Risk
Political Risk
Economic structure
Risk
Country Risk
France A B BBB AA A A
TunisiaCCC B CCC CCC B CCC
TurkeyB B BB B BB BB
IsraelBB1 A+ NC NC NC A3
RISK ANALYSIS
Perception Index 2014
Tunisia Turkey Israel
40 4560
Corruption Perception (score 2014)
Corruption Perception (score 2014)Ranking (out of 174 countries) 37 e – Israel 64 e – Turkey 79 e – Tunisia
CORRUPTION
TUNISIA TURKEY ISRAEL
Time to Import
Time to Export
Global Country Risk
Av. Hours worked NC
Corruption
CONCLUSION KEY SUCCESS FACTOR #3
ANALYSE RESULTS
MATRICES - ISRAELMC KINSEY 1/5
We’ll assign weighted coefficients 1 to 3 shades representing low, medium, high.
Parameters Coefficient Notes
Growth potential in this market 3
The company is structured for large series. The growth potential in the green tech market is very important.
Margin potential 1It's not really the focus of the company because it is in a growth period.
Risk in this market 2
Risk inherent in all types of market, however it has to be limited because the goal is the sustainability of the business.
Geographical location 3
It is the company's differentiator.
MATRICES
Parameters Growth Potential
Margin Potential
Risk Location ∑ X
Coefficient 3 1 2 3 9 2.25
Tree Trunk Creation
1 (Introduction / Launching product)
1 (Launch, reduced profit)
1 (weak) 3 (very important)
6 1.5
Assembling photovoltaic
panels
3 (growth in the green tech market is important)
1 (reduced profit)
1 (weak) 3 (responsiveness, cost optimization)
8 2
Accessibility to electricity
1 (basic service)
1 (no marge) 1 (no-existent)
3 (Cost optimization)
6 1.5
Assembly Terminal Wifi
2 (medium) 1 (no marge) 1 (no-existent)
3 (Cost optimization)
7 1.75
Production of fresh water
2 (medium) 1 (no marge) 2 (no-existent)
3 (Cost optimization)
8 2
MC KINSEY 2/5
1 to 3 : low, medium, high (= good)
MATRICESStrengths of the business sub-segments: (KFS)
- Costs : ability to master the costs and offer competitive prices- Deadlines : ability to master supply chain and master delays
-Quality : ability to deliver the expected quality- Location : Closeness- Reactivity : responsiveness to changes and schedules
Parameters Costs Deadlines Quality Location Reactivity X
Coefficient 3 3 3 3 3 15/5 =3
Tree Trunk Creation
1 (non competitive company)
2 (medium) 3 (would be good)
3 (important because many imports from France)
3 (would be good)
(1+2+3*6) = 12/5 =2.4
Assembling photovoltaic
panels
1 (non competitive company)
2 (medium) 3 (Good) 3 (Strong point : at the heart of market)
3 (would be good) 2.4
Accessibility to electricity
3 (important) 3 (important) 3 (would be recognized by customers)
3 (important) 3 (would be good) 3
Assembly Terminal Wifi
3 (important) 3 (important) 3 (would be recognized by customers)
3 (important) 3 (would be good) 3
Production of fresh water
3 (important) 3 (important) 3 (would be recognized by customers)
3 (important) 3 (would be good) 3
MC KINSEY 3/5
MATRICESMC KINSEY 4/5
Strength of E-Tree
Competitive position / Market attractions Strong Medium Weak
StrongMaintain its position Invest to increase Invest selectively
MediumInvest selectively Selective profitability Limited expansions
WeakProtect and stay
focusSelective profitability Abandon
MATRICESMC KINSEY 5/5
MATRICESANSOFF 1/1
The matrix Ansoff is one of the most used in the decision on growth strategies.
Product / Market Existent New
Existent Market Penetration Product Development
New Market Development Diversification
E-tree Project?New market + new product = new product diversification
-Involves the development of new activities.
-The new strategic business area (SBA) comes from the creation of the company.
- Our start-up has a 'diversification' strategy as we are affected by costs of new product development as well as trying to break into the marketplace.
I
S
R
A
E
L
WHICH COUNTRY DO WE CHOOSE?
According to our various analyzes, it was found that Israel wins!
The Israeli economy is an atypical case in the Middle East:
Economically isolated from the others The only truly developed to join the OECD Economic & Technological performances Vital Resources (water, electricity, weather)
https://www.youtube.com/watch?t=38&v=gCAdxeH0ITg
S O U R C E S
http://www.imf.org/external/country/TUN/index.htm http://www.tradingeconomics.com/morocco/gdp-growth (indicators) http://data.worldbank.org/country/turkey?display=default (data, countries, indicators) http://www.tradingeconomics.com/country-list/inflation-rate http://www.doingbusiness.org/Rankings (Data, rankings, methodology) http://www.unicef.org/ http://epi.yale.edu/epi/country-rankings http://ec.europa.eu/eurostat/statistics-explained/index.php/Labour_cost_structural_statistics_-_levels (statistics) http://www.insee.fr/ UNESCO Institute for Statistics http://www.indexmundi.com/ http://www.bls.gov/ http://hdr.undp.org/ International Labour Organization https://stats.oecd.org http://country.eiu.com/ https://www.kpmg.com/Africa/en/KPMG-in-Africa/Documents/Tunisia.pdf http://www.coface.fr/ http://www.transparency.org/cpi2014/results http://chohmann.free.fr/fp_kinsey.htm Ansoff, I. (1957). Strategies for Diversification, Harvard Business Review, 35, 5 (Sep-Oct), 113-124
E-TREE PROJECT SOURCES
Thank You For Your Attention