IBE Report - Czech Republic

Introduction
This report can be considered as being a complete research of the country, in this case the Czech Republic. The research is destinated to answer the questions/doubts for IK !"s board of directors, in order to ta#e the best decision for in$esting in the Czechs. The information is structured in % parts& first part includes a short description of the Czech Republic, the second part contains the ' (T ) analysis of the country, the third part describes the actual situation of IK ! together with the company"s history and (*+T analysis reported to the country and the last part of the report gi$es the concrete conclusions and recommendations. The ' (T ) analysis of the country was written in order to gi$e clear information about the political, economical and legal situation of the country together with the social and cultural aspects. These aspects are directly in$ol$ed in influencing the good de$elopment of IK !"s future pro,ects in the Czech Republic. The third part will describe the slow beginnings of IK !, pointing out the history of the store. The description goes till nowadays, when IK ! it is a worldwide company, with a great international e-posure and a recognized brand. The analysis of the strengths and wea#nesses related to the threats and opportunities of the country also clears up possibilities which the enterprise has on the Czech mar#et. The last part will include conclusions and recommendations which were noticeable in order to help the company to e-pand in one of the central uropean countries.

IBE Report - Czech Republic

Division of Work:
!ndreea Ko$acs& /. (hort description of Czech Republic 0 p. % .. 'olitical landscape 1 p. 2 3. conomic landscape 1 p. 4 1 5 %. Culture of Czech Republic 1 p. /3 2. )egal landscape 0 p./6 4. n$ironmental aspect 0 p. .7 8iamei 9ao& /. :oreword .. ;ar#et !nalysis 1 p. /70// 3. (ocial landscape 1 p. /% 1 /< )u#as 9rzon#a& /. n$ironmental aspect 1 p..7 .. I#ea"s porter 2 forces 1 p. ./. 3. Target 9roups 1 p. .3 %. (*+T analysis 1 p. .% *eng =uang& /. >emographic landcape 1 p. /. *ang ?itian .. >escription IK ! 1 p. ./ Presentation: )u#as 9rzon#a and !ndreea Ko$acs

IBE Report - Czech Republic

Table of Content
1 Short description of the Czech Republic...................................5 2 PESTEL n!l"sis # Czech Republic............................................$ ../ 'olitical )andscape&.............................................................................................4 ... conomic )andscape..........................................................................................< ..../ The Czech Republic"s macro economy........................................................< ...././ ;onetary policy and interest rates.........................................................6 ..../.. )abor mar#et and household..................................................................5 ..../.3 *ages Czech Republic......................................................................../7 ..../.% Inflation................................................................................................./7 ..../.2 -change rates& .................................................................................../7 ..../.4 ;ar#et en$ironment............................................................................../7 ..3 ;ar#et !nalysis................................................................................................../. ..3./ -change rates ........................................................................................../3 ..% >emographical landscape ................................................................................/% ..2 Culture of the Czech Republic ........................................................................../2 ..4 (ocial landscape................................................................................................/4 ..< )egal landscape................................................................................................./5 ..6 n$ironmental landscape ................................................................................./ ..6./ (tructure and policies.................................................................................../ ..6././ n$ironmental regulations...................................................................../ ..6./.. 'olicy...................................................................................................../ % I&E .................................................................................... 22 3./ >escription IK !.................................................................................................. 3.. 'orter@s 2 forces& ................................................................................................ 3.3 Target groupAsB...................................................................................................% 3.% (*+T !nalysis country 0 company...................................................................2 ' Conclusions !nd reco((end!tions........................................2) 5 Sources* .............................................................................. 2+ $ nne,es .............................................................................. %2

IBE Report - Czech Republic

1 Short description of the Czech Republic

*i#ipedia states that& former part of the !ustro0 =ungarian territory, Czechoslo$a#ia became independent in Canuary /st /553, under the name of the Czech Republic. The Czechs generally consider the national day in +ctober .6th, the day when Czechoslo$a#ia declared its independence from the !ustro =ungarian mpire in /5/6. (ituated in the center of urope, the Czech Republic has % neighborsD 9ermany, 'oland, (lo$a#ia and !ustria. The Czech Republic"s total surface is almost 67.777 square #m. The geographical di$ersity is characterized by small mountains. The climate is temperate, with warm Map of Europe in the circle the Cezch Republic summers and cold winters and a mi-ture of continental and oceanic influences. The Czech Republic has as natural resources hard coal, soft coal, #aolin, clay, graphite timber and many others. !ccording the CI! :actboo#, the Czech Republic has a total population of /7,.7/,<7< and it is the .//th country in the world, with a population growth of 07.//E. conomically, the Czech Republic is considered one of the most steady and de$eloping country between Central and astern uropean states. Czech Republic maintains a free functional mar#et, being the best en$ironment for in$estments. The Czech Republic is a democratic country. The current president is Facla$ Klaus. The parliament has two chambers& the Chamber of >eputies and the (enate. Map of the Czech Republic The president of the Czech Republic is elected by the parliament for a period of 2 years, but not more than . consecuti$e leaderships. The president is a formal head of the state with limited powers, most important to return bills to the parliament nominate Constitutional court ,udges for the (enate"s appro$al and dissol$e the parliament under certain special and unusual circumstances. The Czech Republic has been a member of G!T+ since /553 and from .77% member of the uropean Hnion. The republic is also member of the +rganization for (ecurity and Cooperation in urope A+(C B.

IBE Report - Czech Republic

2 PESTEL Analysis Czech Republic
2.1 Political Landscape:

*i#ipedia states that since the Czech Republic turned to democracy, once with the separation from (lo$a#ia, the Czechs also adopted democratic $alues in the country. Ietween the other uropean Hnion states, the Czech Republic is classified as ha$ing a high ran#ing on go$ernance indicators such as rule of law, accountability and $oice. !s it is #nown from the article Czech RepublicJ, the Czechoslo$a# Republic was founded in .6 +ctober /5/6 by Tomas ;asary#, bac# then the president of the state. The communist go$ernment fell in the time of the Fel$et re$olution in /565. In /55. too# place the separation of Czechoslo$a# Republic in two independent states& the Czech Republic and (lo$a#ia. In /555 the Czech Republic became member of G!T+ and in .77% the country adhered to the uropean Hnion as a member state. In .77< the Czech Republic ,oined the uropean Hnions" (chengen Treaty of free mo$ement between the H member states. !s it is mentioned in the lines abo$e, the Czech Republic is a democratic country, meaning that it has its own go$ernment, its own rules and it is unrestricted. !ccording to the article Parliament of the Czech Republic the state"s parliament is considered bicameral Atwo chambersB& The Chamber of >eputies and the (enate. The supreme law of the country is considered the Constitution, which was appro$ed by the Czech Gational !ssembly in >ecember /55.. The president of the Czech Republic is considered the official head of the state, but his powers are limited. :or the go$ernment the prime minister is the head. The legislati$e powers are conferred in the bicameral parliament. The Chamber of >eputies has .77 members elected on a period of four years. :or a party to be accepted in the Chamber of >eputies, it must gather at least 2E from the $otes. The Chamber of >eputies is the lowest house of the go$ernment. The senate is the upper house and has in total 6/ members elected for a period of 4 years. The Czech Republic is di$ided into /3 regions with the capital city of 'rague since .777. !fter entering in the uropean Hnion zone in .77%, the Czech Republic had to face many challenges according foreign trade. !ccording to Fladimir Ta- the trade between the H member states would not be considered foreign trade Aestimated around 62E from the total trade of the countryB. The Czech Republic adopted the common trade policy directed centrally from Irussels. The accession of the Czech Republic to uropean Hnion brought not only changes in the trade mar#ets, but also according the labor law. The )abor Code was amended to reflect uropean directi$es in relation to discrimination, employees, redundancies, wor#ing times and many other sub,ects. These changes related mostly to the free mo$ement rights, transnational rights and non discrimination rules.

IBE Report - Czech Republic

2.2 Economic Landscape

!ccording to KEuropean Economy NewsJ, the Czech Republic has one of the most flourishing and e$ol$ed economies, with a strong growth, a low inflation and continues to raise its incomes from the foreign in$estments. tructure and policies: :inancial authorities/regulators& Czech Gational Ian#ACGIB !ccording to the !nnual Report A.776B of the CGI, the principal ob,ecti$e is to #eep the stability of the price, by creating low inflation in the financial situation of the state. The ban# has also the ob,ecti$e to de$elop economic growth. The CGI sets the monetary policy and controls the payment system and the balances between the commercial ban#s of the country. The ban# has also the duty to create conditions for sustainable economic growth. It Kcreates ban#notes and manages the money circulationJ. CGI also counts as being a super$isor for the insurance companies, the ban#ing system, pensions and among others the foreign e-change. !s national ban#, CGI pro$ides ser$ices to the state and the public sector. :rom .776 CGI functions independently in the financial sector. Ap.6B (toc# mar#et 'rague (toc# -changeA'( B In >epth ' (T ) !nalysisA+ctober .775B presents '( as being the biggest securities mar#et in the Czech Republic. It is a ,oint stoc# company based on membership principle. +nly '( members are licensed securities dealers and ha$e access to its system. Ap.%/B !e" policies The In >epth ' (T ) analysisA+ctober .775B from >atamonitor stated that the go$ernment too# the responsibility to decrease the budget deficit from %E of the 9>' in .774 to ..3E in .7/7, with e-penditure and the size of the deficit closely tied to the rate of real0term 9>' growth. Ap.32B

2.2.1 T#e C$ec# %epublic&s macro econom"

The Czech Republic has a strong focus on the secondary sector, including transport and transport related equipment, oil refining products and chemicals, machinery production and brewery. Iecause of the worldwide recession, the economic acti$ity of the Czech Republic dropped considerable in the last months of .776. Ioth imports and e-ports contracted dramatically and the industrial production slowed down. These factors caused a decrease in the growth of the gross domestic product A9>'B with 3..E in .776. !lso the international trade was affected by the economic crisis, this being another factor of influence in the national income of the country.

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IBE Report - Czech Republic

E hibit 1! "n depth PESTEL Analysis

!ccording the data from the Exhibit 1, the 9ross >omestic 'roduct dropped drastically to 0%.7 E in .775. The forecast assumes that in .7/7 the economy of the state will get bac# to /, 2E, growing till ., %E in .7// meaning that the economic situation of the country is gradually reco$ering. !ccording to the In depth 'estel !nalysisA+ctober .775B and from Exhibit 2, the 9>' of the Czech Republic is composed by ser$ices, industrial sector and agricultural sector. Ap.%%B !s it is shown in Exhibit 2, the ma,or sectors which contribute to the growth of the 9>' is the ser$ices sector, with an implication of 47,/E followed by the industrial sector with 3<.4E and the agricultural sector with ..3E.

E hibit 2! "n depth PESTEL Analisys

The country is also well de$eloped in the technology sector, car manufacturing, transport and transportation equipment. 2.2.1.1 'onetar" polic" and interest rates The Czech Gational Ian#"s monetary policy ob,ecti$e is gi$en by !rticle 56 of the Constitution of the Czech Republic and !rticle . of !ct Go.4//553 CoII, on the Czech Gational Ian#. CGI has to #eep price stability and is in$ol$ed in sustaining the economic growth of the country. The Constitution of the Czech Republic proclaims& !rticle 56 LCzech Gational Ian#M A/B The Czech Gational Ian# is the central ban# of the (tate. Its acti$ities are primarily oriented towards currency stabilityD it is possible to interfere with its acti$ities e-clusi$ely on the basis of law. A.B The status, ,urisdiction, and other details are set down by law. !ct Go. 4//553 Coll. on the Czech Gational Ian# declares the following& !rticle .

IBE Report - Czech Republic

A/B The primary ob,ecti$e of the Czech Gational Ian# shall be to maintain price stability. *ithout pre,udice to its primary ob,ecti$e, the Czech Gational Ian# shall support the general economic policies of the 9o$ernment leading to sustainable economic growth. The Czech Gational Ian# shall act in accordance with the principle of an open mar#et economy. A.B In accordance with its primary ob,ecti$e, the Czech Gational Ian# shall& aB set monetary policyD bB issue ban#notes and coinsD cB manage the circulation of currency, administer payments and clearing between ban#s, foreign ban# branches and credit unions, promote smooth and efficient operation thereof, and contribute to the safety, soundness and efficiency of payment systems and to the de$elopment thereofD dB super$ise the acti$ities of entities operating on the financial mar#et, analyze the e$olution of the financial system, see to the sound operation and de$elopment of the financial mar#et in the Czech Republic, and contribute to the stability of its :inancial system as a wholeD eB carry on other acti$ities pursuant to this !ct and pursuant to special legal rules./aB A3B *hen performing its tas#s, the Czech Gational Ian# shall co0operate with the central ban#s of other countries, with the authorities super$ising the financial mar#ets of other countries, and with international financial organizations and international organizations engaged in the super$ision of ban#s, electronic money institutions and :inancial mar#ets. 'rice stability means a moderate growth in price. The main instrument of the monetary policy of CGI is the limit interest rate for . wee#s repo operations. The a$erage interest rate from deposits of household are e-pected to remain stable in .7/7, with a rate of 7.<2E as Exhibit presents, and to meet a slow rise till /.%E in .7//. The nominal interest rates from credits are e-pected to grow in .7/7 till %..E.

E hibit -! Monetary policy instru%ents

2.2.1.2 Labor market and #ouse#old )abor :orce (ample (ur$ey stated that the employment decreased to ../E year on year. The total labor mar#et was around 2.3 million in .776. Iy the end of !pril .7/7 there were 3/4.777 foreigners wor#ing in the Czech republic. >ue to the reduction of ,obs in the industrial sector the numbers of employees dropped. The employment rate reaches 4%E, the lowest employment rate since /553. The numbers of unemployment persons reached %<6.777 in the first quadrant of .7/7, the general unemployment rate reaching 6..E in .775. Exhibit ! shows that the unemployment in the Czech Republic will grow.
#raf 1 $a%&stnan'( neza%&stnan' )absolutn&* "raph 1 Employe#, unemploye# $absolutely%
2747 27.7 %567 %5%7 za%&stnan'( emplo"ed %577 %647 %6.7 %<67 %<%7 %<77 %447 %4.7 %267 %2%7 3.N..77< %.N..77< /.N..776 ..N..776 3.N..776 %.N..776 /.N..775 ..N..775 3.N..775 %.N..775 /.N..7/7 +t,rtlet'( (ua rters 467 4%7 neza%&stnan'( unemplo"ed 477 247 2.7 %67 %%7 %77 347 3.7 .67 .%7 .77

zamOstnanP, employed zamOstnanP 0 sezQnnO oRiStOnT, employed 0 seasonally ad,usted nezamOstnanP, unem ployed nezamOstnanP 0 sezQnnO oRiS tOnT, unemployed 0 seasonally ad,usted

E hibit .! ///0czso0cz

IBE Report - Czech Republic

2.2.1.) Wa*es C$ec# %epublic The )abor Code in the (ection // A;inimum *agesB stipulates as following& K The basic rate of the minimum wage differentiates with a $iew to influence a certain employee"s e-ercise of wor#, and the conditions for minimum wage payment, shall be set out in a 9o$ernment >ecree, as a rule ta#ing legal force as of the beginning of a calendar year, ta#ing into account the de$elopment of wages and consumer prices. The basic rate of the minimum wage shall be CUK <,552 per month or CUK %6./7 per hour further rates of the minimum wage may not be lower than 27E of the basis rate of the minimum wageJ. The law also stipulates the premiums for wor# at night and wor# (aturdays and (undays. !n employee who wor#s on (aturday and (unday, at the gross wage0month is added also /7E of his earning per hour, for the hours wor#ed (aturdays and (undays. !ccording night wor#, to an employee must be guaranteed .7E of the earning per hour, for the hours wor#ed at night. 2.2.1.+ Inflation Inflation is the growth of the price le$el o$er a certain period of time. The inflation is based on measuring net changes in prices using consumer price inde-. !s a result of lower import price than in the year .76, the inflation rate decreased within ..4E, reaching / E in .775 AExhibit &'B . !ccording the assumptions of the macroeconomic forecast gi$en by the ;inistry of :inances Ap..5B of and the Czech Gational (tatistics +ffice, the inflation rate in .7/7 is E hibit 1! http!22///0czso0cz2csu2dyn3rafy0nsf23raf2en34inflace e-pected to raise to /.2E bringing till the end of the year an increase of ..3E at the prices of goods and ser$ices. The growth of the 9>' deflator should reach /./E in .7/7, and growing due the acceleration of consumer inflation. 2.2.1., E-c#an*e rates: The e-change rates, as it can be seen are free floatingAExhibit (B. In .7/7 it will be a slightly appreciation of the Czech Koruna, for both foreign currencies& dollar and euro and in .7/. will be a E hibit 5! Macroecono%ic 6orecast depreciation of the national coin. The depreciation of the uro and >ollar in .7/7 can facilitate the e-port of the Czech Republic in order to increase the national income with flows of foreign in$estment. 2.2.1.. 'arket environment The #ey dri$ers in the Czech mar#et en$ironment for .7/7 are gi$en as followed&

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IBE Report - Czech Republic

E hibit 7! 8ey %ar9et dri,ers for 2:1:

In the simple scoring system means& greenVgood, yellowVa$erage and redVpoor. :rom Exhibit ) can be assumed that the Czech Republic is out of the economic crisis, with a growing economy, with good percentages of interest rates, with a low inflation related to other countries, only the labor mar#et would be a sector for which the Czechs would still ha$e to wor# on.

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IBE Report - Czech Republic

2.) 'arket /nal"sis

Trade 'oint Iei,ing writes that in .775 the Czech economy was in$ol$ed in the recession, with domestic demand, stoc# building and e-ternal balance contributing negati$ely to economic growth. =owe$er, although the inflation decreased significantly at the beginning of .775, positi$ely influencing real disposable income and deteriorating the conditions in the labor mar#et, the pessimistic consumer e-pectations and tight credit conditions will weigh on pri$ate consumption, which is e-pected to remain stable in .7/7. The Czech mar#et is di$erse and contains many industries. Czech traditional competiti$e industries, includes machinery, glass products and some high0tech products, such as electron microscopy etc. Czech !griculture +$er$iew Czech main e-ported agricultural products include& barley, feed, hops, por#, dairy products, mainly imported goods pac#age. Include& nuts, fruits, $egetables, $egetable oil, fish, rabbits, non0alcoholic be$erages, rice, tobacco, coffee, etc. ;a,or trading partners& 9ermany, (lo$a#ia, 'oland, !ustria, Italy, =ungary, the Getherlands and China. Czech :orestry +$er$iew Czech forest is rich in resources, 33E forest co$er, forest area is ..4% million hectares, from which /.5< million public timber hectares, accounting for <%E. The $olume of 4%7 million cubic meters of wood, %<< million cubic meters coniferous forests, accounting for <4./E, broadleaf forest /.%3 billion cubic meters, accounting for ...6E. :orest about 47E of the state, and local ownership of /2.%E, .3./E in pri$ate hands. Czech ;anufacturing +$er$iew /. ;achinery and equipment manufacturing and repair industry

The industry has a long tradition in the Czech Republic and is a $ery important manufacturing sector in the Czech Republic. It co$ers the production technology lead in$estments indispensable types of machinery and equipment, including mechanical power production equipment Ainternal combustion engines, marine engines, etc.B !fter ,oining the H, the Czech industrial sector had to meet the H"s strict en$ironmental and energy standards, many of the original #ey technology transformations, so that the pollutant emissions, energy consumption and economy has become more ad$anced and become the HWs main base of the new energy industry. .. +ffice equipment and computer manufacturing

>ue to historical reasons of isolation from world mar#ets, the Czech office equipment and computer industry in the eighties of last century far behind the technologically ad$anced countries, their products uncompetiti$e in the mar#et. The rapid de$elopment of computer industry in the nineties, the whole global economic integration process, a number of multinational companies in their strategic de$elopment, beginning to consider their production bases to the labor power, better infrastructure and strategic location in the region. Czech Republic became an attracti$e country. :oreign opened Czech Republic before entering the field of office equipment and computer production. The important representation of companies is located in 'ardubice of :o-conn CU and in Rudna the :IC CU.

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IBE Report - Czech Republic

(tatus of the Czech te-tile and clothing industry Czech te-tile and garment industryWs de$elopment is relati$ely wea# sector accounts for a lower proportion of the processing and manufacturing. The industry characteristics are& the dominant foreign0funded enterprises, mainly rely on imports of raw materials, a large share of clothing in the processing of about 42E. In Exhibit * can be seen the e-ternal trade of the country, both e-ports and imports being e-pressed in percentages
E hibit ; E-ternal Trade 200122010 <ot seasonally ad=usted -ports inde<2,7 <4,6 5/,/ <6,/ <6,5 6%,5 6.,5 5/,2 6<,3 65,4 /7/,2 /72,/ /76,< //7,3 //.,< Import inde-/ <<,% <4,6 62,/ <%,. <4,5 67,< 67,7 64,6 63,4 67,. 53,7 5<,6 /7.,/ /7<,4 //2,6 Seasonally ad=usted -ports in E of imports /7.,2 /72,5 //.,/ /76,3 /7<,< //.,. /7<,/ /74,3 /75,2 /75,/ /76,2 /7/,4 /75,/ /76,2 /75,/ -ports inde<<,3 <<,2 63,< 6.,3 6/,% 6.,% 62,2 5/,% 6<,. 5.,3 56,% /7.,7 //.,7 //7,3 //.,/ Imports inde<5,6 <<,< <6,4 <<,< <5,< <6,3 63,/ 64,6 63,2 63,/ 57,/ 52,7 /72,. /7<,2 //3,5

?ear .775

;onth Canuary :ebruary ;arch !pril ;ay Cune Culy !ugust (eptember +ctober Go$ember >ecember

-ports /47.37< /4<.7.4 /5%.6<% /<2.6%2 /42.%/< /64./<< /</../% /26.57< /5%.<2. /52.6/5 /5<.<%2 /42...5 /<%..<6 /6%./<5 ./5.23%

Imports /24.344 /2<.45< /<3.626 /4..3<5 /23.422 /42.664 /25.6%5 /%5.2.6 /<<.62. /<5.232 /6..373 /4..465 /25.<.< /45.<3% .7/..4<

Ialance 3.5%/ 5.3.5 ./.7/2 /3.%44 //.<4. .7..5/ //.342 5.3<5 /4.577 /4..6% /2.%%. ..2%7 /%.22/ /%.%%4 /6..46

-ports /<3.2/2 /<..32% /<6.%/2 /<<.%3/ /<7.<.4 /<3.544 /<2.664 /6..475 /6/.7/6 /6/.2/2 /6%.<77 /6/.<47 /5%.366 /57./.3 .77.7<.

Imports /<..</4 /4<.663 /42./67 /4%.7%5 /4..43< /4/./2% /4/./6< /46.%66 /46.433 /42.3.% /<7.%7% /45.527 /6/.<27 /67.%65 /66...3

Ialance <56 %.%</ /3..32 /3.363 6.765 /..6/. /%.455 /%././ /..362 /4./5/ /%..54 //.6/7 /..436 5.433 //.627

.7/7

Canuary :ebruary ;arch

2.).1 E-c#an*e rates

!ccording to +ra,el -ocument .ystems the Czech #oruna AcrownB became e-changeable for businesses in /552. Iecause of the hea$y foreign in$estments the appreciation of the crown against the euro and dollar grew. This appreciation of the national currency, helped the inflation to be #ept stable. Iecause of the increasing of the energy and food prices in .776, the inflation reached 4.3E, but it fell to /.6E in .775. The Czech Republic will not adopt the euro earlier than .7/3. Currency /orl# +ra,el "ui#e posts that the Koruna ACUKD symbol KRB or Crown V /77 haler can be found on the mar#et as follows& ban#notes of 2,777, .,777, /,777, 277, .77, /77 and 27KR, and coins of 27, .7, /7, 2, . and /KR, and 27 haler. Currency -change

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IBE Report - Czech Republic

Currency e-changes are possible to all the commercial ban#s and authorized e-change offices. Cards such as !merican -press, >iners Club, >isco$er, Fisa, ;asterCard, are also accepted in hotels, restaurants or shops and also at the !T;"s. ;a,or cards such as !merican -press, >iners Club, >isco$er, Fisa, ;asterCard and others may be used to e-change currency and are also accepted in some hotels, restaurants and shops, and at !T;"s. -change Rate Indicators /.77 9I' V 37.%3 CUK /.77 H(> V .7.55 CUK /.77 HR V .2.65 CUK

2.+

Demo*rap#ical landscape

In .775 followed a research about the population in the Czech Republic. There are //.27 million people li$ing in the Czech Republic. The ma,ority of inhabitants of Czech Republic are Czech occupies 57.%E seen in Exhibit 0. In addition the other ethnic and immigration account for 5.4E include ;ora$ianD (lo$a#D 'olishD 9ermanD (ilesianD RomaD =ungarian and others. Iecause of the assimilation, the traditional minority li#e 9ermans and 'oles ha$e decreased. =owe$er the other ethnic communities li#e 9ree#s, Tur#s, Italians and ?ugosla$s were found in the capital city. (ince .77<, the population of immigrants is increased nearly by /E of the total population.

E hibit >! Population C$

/%

IBE Report - Czech Republic

2., Culture of t#e C$ec# %epublic

ncyclopedia Iritannica describes in the article Czech Republic1 Cultural 2ife that Kthe territory of the Czech Republic traditionally has been between the 9erman and (la$ lands, and the Czech cultural traditions are a mi-ture of both. Influences from farther afield also ha$e been strong. Fisually the most stri#ing influences are ItalianXin Renaissance and Iaroque architecture, for instanceXwhile literature, music, the $isual arts, and popular culture also are indebted to a $ariety of e-ternal influences. ;ost of the *estern cultural influences on the Czech )ands ha$e passed through a 9erman filter, and for this reason Czech traditions in popular culture are mar#ed by a strong sense of national identity.J =ofstede"s culture dimensions for Czech Republic are gi$en by Exhibit 134 It is analyzed the country conform the power distance, indi$idualism, masculinity and uncertain a$oidance. Countr" C$ec# %epublic PDI ,5 ID3 ,6 '/ ,5 4/I 5+

E hibit 1:! ?ofstede@s di%ensions

PDI 7 Po8er Distance 2 The Czech score 2< in power distance. >escribing business situations, the Czech republicans are showing respect to their bosses, and they #eep in mind that the ,ob le$els are not equal. They do not treat their superiors informal, but rather formal. The citizens consider that in business situations, it is not really equality between indi$iduals. ID3 7 individualism 7 Czechs are quite indi$idual persons and they rather prefer to do things on their own than wor# in a team and rely on other persons for achie$ing their purposes. They score 26 at indi$idualism. '/ 7 masculinit" 7 The citizens consider that it stays in their powers to do something for themsel$es. The persons tend to characterize themsel$es as being asserti$e. 4/I 7 uncertain avoidance 2 the Czechs tend to a$oid matters which can cause them problems, they tend to a$oid ambiguity. The Czech population does not ha$e a long term orientation, but rather they focus on things which are achie$able in the appropriate future or ,ust simply focus on the present.

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IBE Report - Czech Republic

2.. ocial landscape Composition between age and gender The population of the Czech Republic is appro-imately /7.. million. !mong <.3 million people are at the age between /2 and 4< years and that is </E of the population. The amount of people abo$e 420year0old is about /.2 million, which constitutes around /2.2E of the total population. This is a portion of the population that is dependent on the social security. Hrban / rural composition and migration The urban population of the Czech Republic constitutes appro-imately <2E of the population. .2E +f the country"s population li$es in the rural areas. In .774 migration for the Czech Republic has reached to 46,777. (ince the establishment of the Czech Republic in /553, an increase of /3E was compared to the pre$ious year. In total there were 3./,777 foreigners in the country in .774, which represents a growth of more than /2E in comparison with .772. The Czech go$ernment has ta#en $arious positi$es to attract highly0 s#illed people. The ;inistry of Industry and Trade introduced a green card system in the year .776 for the special group professions, which are confronting the shortage of manpower. Religious composition !ccording to Exhibit 11 , Roman Catholics constitute .4.6E, 'rotestants ../E, other 3.3E, unspecified people 6.6E and unaffiliated 25E.

E hibit 11! "n depth PESTEL Analysis

ducation

The education system in the Czech Republic is dated bac# to /<<%, when compulsory school attendance was established. 'rimary education is compulsory and ta#es nine years, from the age of si- until the age of /2. 'upils ha$e to fulfill the nine0year compulsory school attendance and they can apply for study at a secondary school. The student can lea$e secondary school after completing two to three years of study, which follows with a report and a final e-am together with a $ocational certificate stating their professional capability. This entitles the student to a secondary education with a $ocational certificate. !fter four years of study, a student can complete secondary education with a lea$ing e-amination. The students whom completes secondary education with a lea$ing e-amination, can pursue their tertiary education. Tertiary education includes ad$anced $ocational and uni$ersity education. ;ost uni$ersities ha$e IachelorWs and ;asterWs degrees, lasting for three and respecti$elly two years.

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=ealthcare =ealthcare ser$ices in the Czech Republic are well de$eloped. Czech had 3.4 practicing physicians per /,777 population in the year .774, which is abo$e the + C> a$erage of 3./. There were 6./ qualified nurses per /,777 population in .774, which is minimum below the a$erage of 5.< in the + C> countries. The number of acute care hospital beds in the Czech Republic was 2.% per /,777 population in .774, which is well abo$e the + C> a$erage of 3.5 beds per /,777 population. =owe$er, the number of hospital beds per capita in the Czech Republic has fallen o$er time. This decrease has coincided with a reduction in the a$erage length of stay in hospitals and an increase in the number of surgical procedures performed on a same0day or outpatient basis. (ocial welfare The social security pro,ect includes sic#ness insurance, pension insurance, state social support benefits, and social care. The sic#ness insurance system of benefits constitute four benefits& sic#ness benefit, financial support for care of a family member, maternity benefit, and pregnancy and maternity compensation benefit. The pension insurance scheme secures citizens in terms of old age, disability or loss of the breadwinner. 14 .ic5ness benefits http166www4mps,4cz6en61(13 !n employee who is declared as not being able to wor# for a period of time, is able to get sic#ness benefits starting with the /2th day of his/her sic# lea$e until he is totally reco$ered. It is allowed for a ma-imum of 367 calendar days from the beginning of the inability to wor# . If after 367 days of sic# lea$e the employee is still unable to wor#, his or her contract will be ended. 24 7aternity benefits http166www4mps,4cz6en61(13 The condition for the maternity lea$es remained unchanged. :rom the day that the pregnancy is recognized, the employee still has to participate to the sic#ness contribution. It is considered that the employee participated at the health insurance contribution with . years ago. The new law allows that the mother can switch with the father for ta#ing care of the child, and the parents both are allowed to be paid for maternity benefits, stipulated under the (ic#ness Insurance !ct. It is allowed to switch the duties for child care from mother to father from the <th wee# of the birth of the baby. The women can use from the go$ernment maternity benefits, a ma-imum of /67 calendar days. 4 Care benefits http166www4mps,4cz6en61(13 mployees can get care benefitsAbecause of family, child under /7 years oldB if they are not able to wor# because they ta#e care of a sic# relati$e, or they ta#e care of the child under /7 years oldAin e-ceptional conditionsB. +nly one of the employees and parents are allowed to benefit of the care financials. !4 Pre8nancy an# maternity compensation benefits http166www4mps,4cz6en61(13 ! person can benefit of the pregnancy and maternity financials in case they are transferred to a different ,ob and they are earning less than before.. &4Pension 9enefit $http166www4mps,4cz6en61(3( % The pension benefits are described in . categories.

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IBE Report - Czech Republic

The first category is the compulsory basic pension insurance, which is paid during the wor# years, from the bruto income. The legal issues are the same for e$ery person and it does not matter of the industry sector. In the organizational and administrati$e areas the pensions are in $ariation. The other category is the $oluntary pension contribution, which is capital funded. This $oluntary insurance is generally made to a commercial insurance company 1 life insurance. The fundamental substanti$e law regulation which go$erns the entitlement to a pension from the basic pension insurance, methods of determination of pension benefits and conditions of payment, is the !ct Go. /22//552 Coll., on pension insurance, as amended, which came into effect on / Canuary /554.

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2.5 Le*al landscape

2313 in#ex of economic free#om characterizes the Czech Republic as being the 3%th freest country for doing business, being the /<th in the uropean mar#et. The foreign and national in$estors are treated the same, most of the companies are in the pri$ate sector. (tarting a business in the Czech republic ta#es appro-imately /2 days, and it gathers a total of 6 procedures. The Czech Republic"s trade policy are gi$en by the uropean Hnion regulations and it is the same as any other member state. Gon0tariff barriers reflects in H and Czech policy including agricultural and manufacturing subsidies, quotas, import restrictions and bans for some goods and ser$ices, mar#et access restrictions in some ser$ices sectors, non0transparent and restricti$e regulations and standards, and inconsistent regulatory and customs administration among H members The Czech Republic is not considered a country with high ta-es. In the case of starting up a business/opening a branch in the Czech Republic, companies tend to rely on the following legal aspects. Commercial Code !ccounting and audit :iscal policies with direct and indirect ta-es )abor Code Trade

Commercial Code: The Commercial Code was re$ised in order to be in harmonization with the uropean Hnion law and international standards, stipulating the following& 0 the headquarters of the businesses are located at the place where the business acti$ity ta#es place, 0 registering in the Commercial Register has constituti$e effect, 0 the documents about the incorporation of the company, annual reports and audit reports must be handed in one copy to the Commercial register. /ccountin* and audit: !ll the accounting registration must be under the >ecree of >ouble ntry !ccounting and the Czech Gational !ccounting (tandards. 9iscal Policies The Czech fiscal policy presents . types of ta-es& indirect ta-es and direct ta-es. The indirect ta-es are as following& ta-es on di$idends for /2E, corporate ta- of income /5E for .7/7, social security ta-es which are for the employer 3%E of the e-penditures, and for employee which is //E from the bruto income. The indirect ta-es are as following& F!T 0 $alue added ta- 1 /5E according the uropean Hnion legislation, and for e-ceptional branches 5E. Custom duties, en$ironmental ta-es, real estate ta-es, road ta-es are also included in the indirect ta-es.

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Labor Code The )abor Code stipulates the employment contract, which has to be written. The wor# contract can be signed for a fi-ed term period of . years, or for undefined period. The law also stipulated the holiday days, wor# hours, minimum wages. Iecause of the membership at the uropean Hnion, the trade between H members is not considered anymore foreign trade.

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IBE Report - Czech Republic

2.6 Environmental landscape

Tra$el >ocument (ystem states that the Czech Republic is starting slowly to deduct the high pollution dependence. In .77<, according the Czech (tatistical +ffice, 4<,3E of the energy of the country was produced by coal steam, .5,<Efrom nuclear plants and only 3E from recyclable sources.

2.6.1

tructure and policies

2.6.1.1 Environmental re*ulations !ccording to the :n #epth PE.+E2 ;nalysis$+ctober .775% pro$ided by >atamonitor, the country already used a multitude of laws and regulations in order to straighten the en$ironmental policies. The laws used are on protection of the air against pollutants, on protection of the ozone layer of the earth, on water, on payments and ta-es for discharging the waste waters into the surface waters, on the protection of the agricultural land fund 2.6.1.2 Polic" The significant features of the ( ' are to protect the nature and the biodi$ersity, to be sustainable for the natural resources and to ta#e care of the hydrographic system. Iesides that the features of the ( ' are to protect against floods and optimization of waste management, to reduce the damages made by human acti$ities and to impro$e en$ironmental standards in order to ha$e a better life quality. Ap.</B

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IBE Report - Czech Republic

- "8EA
).1 Description I!E/

IK ! was found in /5%3 in (weden. The goal of the company was to Kcreate a better life for e$erybodyJ. The products from IK ! ha$e good quality, design and price. Gowadays, IK ! is the biggest furniture and household products company. (ales include chair/ sofa series, office supplies, bedroom series, #itchen series, lighting series and so on. Size! IK ! has a huge international e-posure. The company has 37% large stores in 3< countries. ;ost of the stores are located in urope, in Hnited (tates, Canada, !ustralia and !sia. The company printed /77 million IK ! catalogs of a collection about /.,777 goods in e$ery year. IK ! has %4 trading companies in3. countries and /,377 suppliers in 23 countries. ;oreo$er, they ha$e .6 distribution centers in /4 countries to supply products for IK ! mar#ets. ?istory! IK ! started /5%3. Ing$ar Kamprad Kbuilt upJ this company in (weden when he was /< years old. The name of IK ! was according to the first letter of his name AIng$ar KampradB, farm A lmtarydB and $illage A!gunnarydB. !t first, Ing$ar Kamprad ,ust sold some small stuff such as pencils, wallets, ,ewelry or anything which he thought it made mar#et demand and it was more cheaper. The first furniture was sold in /5%<. In /522, IK ! started to design their furniture. Ing$ar Kamprad was selling its products in his home or $ia the post. !fter a while he opened his store near his $illage named !lmhult. In addition, !lmhult was the first warehouse for IK ! and became the model for other stores in the future business. In /543 was opened the first IK ! in Gorway. Corporate culture and values: !ccording to the corporate culture of the company it can be considered that the company has an adaptable culture because of its e-ternal focus on the customers. IK !@s products and ser$ices are designed to satisfy the customers needs. The support gi$en by the IK ! wor#ers is also customer oriented. IK ! $alues simplicity, togetherness, cost0consciousness and respect. ).2 Porter:s , forces: !nalyzing the 2 forces in the industry competition for IK !, it can be supposed that there are no threats for new entrants, because entering a furniture retail mar#et in$ol$es a good strategy, good prices and a high demand. Iargaining power of supplier is low, because IK ! does not produce the products in the Czech Republic, but in the affiliate countries for the proper production li#e China or (weden. Iargaining the power of buyers can be considered high, because people are interested in new modern shops, which may create and
E hibit 12! PorterAs 1 forces

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IBE Report - Czech Republic

gi$e a home atmosphere and gi$e them the freedom to choose, plus the fact that the products may be affordable for any class of income. Ri$alry among the competitors 1 ta#ing in consideration that IK ! is a well #nown international company, with a good brand and good quality products, it would not be a high ri$alry or not at all a ri$alry among competitors. Threat of substitute products 1 IK ! has its own design/materials, so the threat for substitute products is low.

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IBE Report - Czech Republic

).) Tar*et *roup;s<

! company should always focus on their target groups" needs. ! company li#e IK ! has to focus on their customers" needs to wor# sufficiently. If a company does not fit to their customers needs, they would not be able to #eep their customer base and if a company loses their customers they probably get ban#rupted after a while. (o the success of IK ! is based on their target group. !s a result IK !"s whole retail branch is designed to fit as perfect to their target group as possible A(trategic Retail ;anagement& .77<, p. /3<B. The entire concept of the IK ! retail stores with childcare, restaurants and information des#s is compiled to shop unstressed and with an open mind. Consequently their customers are willing to spend long time in the store and to get inspired by the many different modern articles offered. !lso IK !"s Ke$erything under one roofJ concept is set up to ensure the customers con$enience and to deli$er their mission Kto create a better e$eryday life for the many peopleJ during shopping at IK ! AIK ! websiteB. IK ! has a big, not $ery specified, target group. ;artenson defined it as Kyoung people in all agesJ A/56<, p./2B. That means IK ! focus on young people and those who are remain young at heart. *hich does not signifies that IK ! only focuses on single or student households, but also on young families. IK ! targets on all educated people with a low to middle income A(trategic Retail ;anagement& .77<, p. /3<B and do not set $alue on status symbols A!benteuer *irtschaft& .773, p./%%B. ?oung people who mo$e out from their parents house and furnish their first own flats, are $ery welcome in IK ! stores. !lso if a couple ha$e a baby, IK ! is $ery attracti$e to them to furnish the baby"s room. +$erall IK ! attracts e$eryone who needs stylish, sturdy furniture for a relati$ely cheap price ACoo#, .773B. !t the $ery beginning Ing$ar Kamprad sold small products li#e pencils, wallets and picture frames AIK ! websiteB. Gowadays IK ! offers a huge range of products to their target group. Ieginning with a soft toy and ending with a prefabricated house. The array of products includes e$erything for #itchen, bathroom and li$ing room. :urthermore in retail shops are offered products for babies and children in all ages. Iaby changing tables for the smallest, different toys for the older ones and modern writing des#s for teenagers. (eniors get less attracted by furniture, but more from the IK ! restaurant which offers traditional (wedish food for a relati$ely cheap price. The population in the Czech Republic fits $ery well to IK !"s target group. The a$erage number of members of a Czech household is ..2/ people, which ha$e a net income per year of 3.5,/5/Y Koruna Aabout Z /.,<37B which probably match to the low and middle income households of their target groups. !lso the well0heeled people are with /5%,/6/ CUK per head not $ery rich. (o se$eral would probably also shop at IK ! stores. :urthermore there li$e many people between .7 and 37 years. Those people are probably K,ust starting outJ and in Kneed of relati$ely cheap, sturdy furnitureJ ACoo#, .773B they could afford at IK !.

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IBE Report - Czech Republic

).+ W=T /nal"sis countr" 2 compan"
Bea9nesses Iad quality image Gothing indi$idual (candal Acruelty to animals on cooperating farmsB

Stren3th Cheap transportation of goods Cheap production costs resulting from quantity discount Iig customer base Competiti$e selling prices asy to access 1 good transport connection )arge and di$erse assortment 'ersonal and -otic contact to customers Construction of stores where real estate prices are low )ow ta-es $erything under one roof Ainc. food court and child care beyond otherB Cpportunities Iooming Czech economy Close to production sites A'oland /< E, Italy 6E, (weden and 9ermany 4 E eachB ;any possible customers in a relati$ely small area Iooming prefabricate house mar#et )ow ta-es AheadquarterB :alling uro e-change rate (table Czech Koruna e-change rate ntry into the uropean Hnion economic growth 1 stability buying power higher because of low inflation cheap wor# wages low costs for ta-es good international trade pri$atization system "nternal En,iron%ent

Threats :inancial crises :alling uro e-change rate aging of population air pollution probable growth of inflation and price increase

IK ! is a well performing global retail company, which opened % new stores only in ;ay .7/7, this success is the result of good strategies. The world biggest furniture mar#et chain"s $ision is Kto create a better e$ery day li$e for the many peopleJ AIK ! websiteB. This $ision they want to achie$e by offering stylish, functional furniture to a price as low as possible so that the many people are able to afford it. To offer cheap prices procures IK ! products a competiti$e ad$antage against other furniture retailers. Combined with style and quality of their articles it secures IK ! a big customer base. Iut to pro$ide such low prices to their customers IK ! has to sa$e money where e$er it goes. IK ! tries to sa$e money in the production, transport and at the stores it sel$es. ! lot of money they sa$e in the production. >ue to the numbers of products IK ! buys e$ery time, they get a high quantity discount from their manufacturers. Iut also IK ! has its own

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production called [(wedwood 9roup", which is actually a union of /2,777 co0wor#ers which wor# in more than 27 different factories in /. countries A(wetwood websiteB. :urthermore IK !"s transportation costs are also $ery low, because they buy high numbers of articles e$ery time, so they can ship many containers at one time, which insure again a quantity discount from the haulier. *hen the goods come inD at the stores IK ! also sa$es money. Ieginning with self0ser$ice of their customers until the location of the store it sel$es. In IK ! retail stores the customers are mainly on their own, they ta#e the articles from the high0rise rac# and bring it to the chec#out. It gets also common to use the self0ser$ice chec#out which sa$es IK ! e$en more money, because they only need to employ one person to o$ersee % chec#outs. The store"s locations are also $ery important and can include potential sa$ings. Therefore IK ! retail stores are not located in the city centre but in outs#irts of big towns. 'roperties at those places are much cheaper than in city centers and if the transport connection is good the same number of customers is able to go there. IK ! also mo$ed the headquarter from (weden to the Getherlands to sa$e more money in long term. Iecause in the Getherlands non profit foundations do not pay any ta-es IK ! cooperates with a >utch pri$ate company which parent entity is the [(tichting Ing#a :oundation", a non profit organization. !lso Ilea"s properties are held by a concern in )u-emburg which also recei$es income from the franchisees. :urthermore Ing$ar Kamprad, the founder of the IK ! 9roup li$es in (witzerland A9lobal ta- re$olution& .776, p. 54 / IK ! websiteB. !s a result of the cheap products the price is $ery competiti$e. Iut not only that ensures the big customers base they ha$e. To attract that many customers e$ery day a company has to offer something special. :or e-ample IK ! has a $ery personal contact to their customers, also in their announcements they spea# to the customers personally. !lso they ma#e the customers comfortable by offering child care and food courts for e-ample. The comfort of the buyers is $ery important to IK ! because than the people are more willing to spend long time in the store and to going through the whole assortment of the company. !s it can be seen in picture 31 IK ! has much less wea#nesses than strengths. Iut probably no company has absolutely no wea#nesses. The worst wea#ness is probably the bad quality image of IK ! products resulting from the cheap price. ;any people thin# the quality of the goods cannot be good, because the price is $ery low. (ometimes it is the truth but IK ! try to #eep the quality high by sustainability and quantity in the production. *hich unfortunately cause that IK ! cannot offer customized goods. !lso the furniture chain has to fight with scandals li#e cruelty to gooses on a farm which cooperates with IK ! restaurants. IK ! offered goose flesh from a =ungarian farm which employees pluc# gooses when they are still ali$e A)amprecht, .775B. E ternal En,iron%ent! The financial and economical crises since .774 also left its mar#s on the Czech Republic and IK !. The economic growth of the Czech Rep. slowed down. *hereas IK ! probably benefit from the crises, because the target group of low to middle income families risesAIK ! websiteB. Iut the falling e-change rate of the uro could ha$e a huge impact on the company"s performance because the uro falls for uropean companies it gets more e-pensi$e to buy good abroad. ! result could be that IK ! will not be able to #eep the prices of their articles that low. +therwise the IK ! could also profit from that, because the money they get from retailers in non uropean countries is worth more than before. Iut due to the close relationship between the uro zone and the Czech Republic the e-change rate from the Czech Koruna and the uro did not change rapidly, so the e-change rate would only ha$e a small impact on in$estments in the Czech Republic AIan# of CanadaB. The Czech Republic is with <6,64< #m\ the //2th biggest country and with a population of /7,.7/,<7< ACuly .7/7 est.B the country with the 6/st highest population ACentral Intelligence

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IBE Report - Czech Republic

!gencyB. That means in the area almost as big as !ustria li$e about as many people as in Ielgium or /.5 people per square #m, that is /4 more than in the a$erage in the uropean Hnion. The high number of people li$ing in such a small country ma#es it easy to reach potential new customers. The central position of the Czech Republic is also a strong ad$antage. The country is located between 'oland, (lo$a#ia, !ustria and 9ermany which are all members of the uropean Hnion, so as the Czech Republic. (ince the entrance in the H the country"s economy growth steadily and the trade with *est urope got easier. (o transports from production sites such as (weden, 'oland, 9ermany and Italy, which together produce more than a third of all IK ! products, are now easy to handle AIK ! websiteB. !nother pro for IK ! to in$est in this country is the booming prefabricated house mar#et. *ith a .7 E rate of growth the prefabricate houses mar#et could get the leading force in some ast uropean countries Awww.tagblatt.chB.

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IBE Report - Czech Republic

. Conclusions and reco%%endations
The pre$ious chapters ga$e a clear aspect of the Czech Republic according the possibilities to in$est in. Relating to the political aspect, Czech Republic is a democracy and it is also directed by the uropean Hnion, at which adhered in .77%. Tal#ing about the economic part, and e$aluating the macro economics of the country, it is clear that the Czech Republic is one of the most stable economies from urope. The Czech Republic declared at the end of .775 that the recession in the country was o$er. conomy will grow till the end of .7/7, reaching /.2E with an inflation of /.2E and in .7// will raise to ..%E. This can be a positi$e sign for IK ! to in$est in new stored in the country. Hnemployment will raise. The e-change rates crown euro/crown dollar will stimulate, as it is supposed, the e-ports to other countries. Creating also a demand for the national Czech currency and increasing the national income of the country. )abor force is cheap, so that is also a good point for the company. This because the company does not ha$e to spend a big amount in order to pay the salaries for the employees. +pening a branch in the Czech Republic, it will gi$e IK ! the opportunity to create more a$ailable ,obs and to stipulate the slow decrease of the Czech unemployment. It is an open mar#et, so it is supposed that the competition in the furniture retail domain is not $ery powerful. IK ! is an international well #nown brand, so it is a good chance for the enterprise to de$elop in the Czech Republic. The costs are slightly small according to implementation of the company. It ta#es quite a short amount of time till all the procedures are completed, with an a$erage of /2 days. )egally, IK ! being an international company, will be seen as a Czech company, and it will rule under the regulations of uropean Hnion. Relating to the (*+T analysis of the company in the Czech Republic, the mar#et for prefabricate products is growing day by day. (ituated in the Central urope, with neighbors & 9ermany, 'oland, (lo$a#ia and !ustria, the Czech Republic can be considered one of the outflows of urope, Iecause the country is close to the fabrication points of IK !, it will be a good opportunity to build strong relationships with the countries where the products are made. Iecause of the moderate in$estment e-penses, it would be a positi$e chance for IK ! to open an own shop, not a franchise. *ith an own shop is gi$en much more time to analyze the mar#et situation, to recruit the needed employees, e$en if they are at the managerial le$el or ,ust at the wor# floor. It is much more time to s#ill the employees, to procure them trainings for impro$ing their s#ills and be customer oriented. (imply it is the best way to communicate IK !"s way of li#e in the community.

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1 Sources!
!nnual Reports. An.d.B. Czech Gational Ian#. Retrie$ed Cune 6, .7/7, from www.cnb.cz/miranda./e-port/sites/www.cnb.cz/en/about]cnb/performance/annual]reports/d ownload/$z].776]en.pdf Ian. KIan# of CanadaJ. www.ban#ofcanada.ca , .5th ;ay .7/7, +ttawa& Ian# of Canada CI!, C. I. An.d.B. CI! 0 the world :actboo# 0 Czech Republic. Central Intelligence !gency. Retrie$ed Cune 6, .7/7, from https&//www.cia.go$/library/publications/the0world0 factboo#/geos/ez.html CU C= R 'HI)IC C+HGTR? !G!)?(I(. An.d.B. Iusiness source 'remier. Retrie$ed Cune 6, .7/7, from http&//web.ebscohost.com/bsi/pdf^$idV///_hidV///_sidV2bb.caa.0f2fe0%a360 5a4b0.2e4%47475<6E%7sessionmgr//% Czech Republic. A.7/7B. In ncyclopedia Iritannica. Retrie$ed Cune 76, .7/7, from ncyclopedia Iritannica +nline& http&//www.britannica.com/ Ichec#ed/topic//%5762/Czech0 Republic Chris dwards. A.776B. 9lobal Ta- Re$olution Rise of Ta- Competition and the Iattle to >efend It. *ashington, >.C. & Cato Inst,.776. Czech Republic 0 *i#ipedia, the free encyclopedia. An.d.B. *i#ipedia, the free encyclopedia. Retrie$ed Cune 6, .7/7, from http&//en.wi#ipedia.org/wi#i/Czech]Republic Czech Republic conomy. An.d.B. Tra$el >ocument (ystems. Retrie$ed Cune 6, .7/7, from www.tra$eldocs.com/cz/economy.htm Czech money and -change rate. An.d.B. *orld Trade 9uide. Retrie$ed Cune 6, .7/7, from www.worldtra$elguide.net/country/<./money/ urope/Czech0Republic.html Czech Republic Constitution. An.d.B. Ferfassungsgeschichte. Retrie$ed Cune 6, .7/7, from www.ser$at.unibe.ch/icl/ez77777].html Czech Republic Information on conomic :reedom. An.d.B. Inde- of conomic :reedom& )in# between economic opportunity and prosperity. Retrie$ed Cune 6, .7/7, from www.heritage.org/inde-/country/CzechRepublic >orsch, ;., _ Candl, T. A.773B. !benteuer *irtschaft. <2 :allstudien mit )`sungen.. 9ermany& +ldenbourg. dwards, C. R., ;itchell, >. C., ;itchell, >. K9)+I!) T!8 R F+)HTI+G& The Rise of TaCompetition and the Iattle to >efend ItJ. *ashington >.C.& C!T+ IG(TITHT , .776 mployment and unemployment measured by the )(:. An.d.B. Czech (tatistical +ffice. Retrie$ed Cune 6, .7/7, from www.czso.cz/eng/csu.nsf/informace/azam72/7/7.doc IK ! a !bout IK !. An.d.B. *elcome to IK !.com. Retrie$ed Cune 5, .7/7, from http&//www.i#ea.com/ms/en]9I/about]i#ea/inde-.html

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IBE Report - Czech Republic

)amprecht, (. K9bnse0(#andal bei ;`bel09igant I#eaK <ambur8er 7or8enpost4 http&//archi$.mopo.de/archi$/.775/.775/.7./hamburg/panorama/gaense]s#andal]bei]moeb el]gigant]i#ea.html, .5th ;ay .7/7, =amburg& ;+'+ +nline 9mb= ;eh. K;ehr :ertighbuserJ. +;"92;++. http&//www.tagblatt.ch/magazin/leben/tb0le/;ehr0 :ertighaeuserDart/.4,/.<4<5., .4th ;ay .7/7, (t.9aller Tagblatt ;'(F.CU& )abor )aw. An.d.B. ;'(F.CU & ;inistry of )abor and (ocial !ffairs. Retrie$ed Cune 6, .7/7, from www.mps$.cz/files/clan#y/3..//labour]code.pdf ;inistry of :inance of the Czech Republic & ;acroeconomic :orecast. An.d.B. ;inistry of :inances of the Czech Republic. Retrie$ed Cune 6, .7/7, from www.mfcr.cz/cps/rde/-bcr/mfcr/;a#ro're G].7/7N.]#omplet]pdf.pdf ;onetary 'olicy. An.d.B. Czech Gational Ian#. Retrie$ed Cune 6, .7/7, from www.cnb.cz/miranda./e-port/sites/www.cnb.cz/en/legislation/acts/download/act]on]cnb.pdf ;'(F.CU & 'ensions. An.d.B. ;'(F.CU & ;inisterst$o prcce a sociclnPch $OcP. Retrie$ed Cune 5, .7/7, from http&//www.mps$.cz/en//474 ;orschett, >., (chramm0Klein, =., _ Uentes, C. A.77<B. (trategic Retail ;anagement& Te-t and International Cases A/ ed.B. Gew ?or#& 9w$0Fieweg. 'ower distance inde-. An.d.B. Clearly Cultural Communication. Retrie$ed Cune 6, .7/7, from www.clearlycultural.com/geert0hofstede0cultural0dimensions/power0distance0inde-/ (ic#ness insurance. An.d.B. ;inistry of )abor and !ffair. Retrie$ed Cune 5, .7/7, from www.mps$.cz/en//4/7 Ta-, F. An.d.B. Czech trade after H accession& re$olutionary changes 0 Radio 'rague. ;ain page 0 Radio 'rague. Retrie$ed Cune 6, .7/7, from http&//www.radio.cz/en/article/2/26< The main instruments of monetary policy. An.d.B. Czech Gational Ian#. Retrie$ed Cune 6, .7/7, from www.cnb.cz/en/monetary]policy/instruments/inde-.htmldd% The ob,ecti$es of monetary policy. An.d.B. Czech Gational ban#. Retrie$ed Cune 6, .7/7, from www.cnb.cz/en/monetary]policy/ob,ecti$e.html Trade 'oint Iei,ing. An.d.B. english.smes0tp.com/ . Retrie$ed Cune 6, .7/7, from http&//english.smes0tp.com/ *i#ipedia, *. An.d.B. 'arliament of the Czech republic. *i#ipedia, the free encyclopedia. Retrie$ed Cune 6, .7/7, from http&//en.wi#ipedia.org/wi#i/'arliament]of]the]Czech]Republic mployment and unemployment measured by the ):(. An.d.B. Czech (tatistical +ffice. Retrie$ed Cune 6, .7/7, from www.czso.cz/eng/csu.nsf/informace/azam72/7/7]//7.-ls (we. K(wedwoodJ. www.swedwood.com, .5th ;ay .7/7, (wedwood 9roup

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IBE Report - Czech Republic

The. KThe *+R)> :!CTI++K& CU C9 R 'HI)ICJ. https&//www.cia.go$/library/publications/the0world0factboo#/geos/ez.html, .7th ;ay .7/7, *ashington >. C.& Central Intelligence !gency The economy of Czech Republic. An.d.B. uropean Commission 0 economic and commercial affairs. Retrie$ed Cune 6, .7/7, from http&//ec.europa.eu/economy]finance/een/776/article]4/<.]en.htm Uentes, C., ;orschett >., (chramm0Klein, =. K(trategic Retail ;anagementJ. *iesbaden& Ietriebswirtschaftlicher Ferlag >r. Th. 9abler / 9*F Ferlage, .77<

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IBE Report - Czech Republic

5 Anne es
Assess%ent Sheet "DE Report! Econo%ics assessed by M0 6ransen2E0Doels (tudents& relation number and names
Gr. Gr. Gr. Gr. Gr. /.635. /.%<3< 6.%6. 6.6/< /.%526 name& !ndreea Ko$acs name& 8iamei 9ao name& *eng =uang name& *ang ?itian name& )u#as 9rzon#a
Remar#s/feedbac# 'ts ma%7 (core

(ub,ect Pestel Analysis Country conomic features& macroeconomy, mar#et en$ironment, competition resources international scope demographic data ;ar#et analysys and 'orter@s 2 : )egalDbusiness format (ocial aspects Conclusion& +pportunities and threats

Retail for%ula! F description( sizeAuse different criteriaB, etc. F history F international e-posure target groups (trengths and *ea#nesses and Threath found in II analysis F relation of the retail for%ula with econo%ic situation in country

%7

Su%%ary of conclusions and recco%endations )conclusions fro% "DE analysis and recco%endations fro% Retail 6or%ula*

.7

Total a%ount )di,ided by 1:*

1::

3.

IBE Report - Czech Republic

Assess%ent Sheet "DE Report! En3lish assessed by Mr0 Cude LohuisFMr0 MurphyFMs0 Beld9a%pFMr0 Roze%a
(tudents& relation number and names Gr. Gr. Gr. Gr. Gr. /.635. /.%<3< 6.%6. 6.6/< /.%526 name& !ndreea Ko$acs name& 8iamei 9ao name& *eng =uang name& *ang ?itian name& )u#as 9rzon#a
(core %7 :eedbac#

9ood use of the structure F 'roper introduction F >o findinfs address the original issues for in$estigation^ F :indings are illustrated using clear summary tables and figures F (tatistical data is lin#ed to the te-t F 'roper conclusion 10 (ummary of main points from the research 20 It re$iews the problem statement and the main points )anguage and (tyle F Te-tboo# theory is paraphrased by meand of reporting $erbs F :unctional phrases clarify the logic in the de$elopment of the argument F There are no more than 2 spelling errors F ! professional and formal writing style throughout F Go grammatical errors (ourcing and references F Complete bibliography or list of references F Hse of !'! style of referencing F !$oiding plagiarism Total A>i$ided by /7B

37

37

/77

33

IBE Report - Czech Republic

Assess%ent Sheet final presentation assessed by M0 6ransen2E0Doels (tudents& relation number and names
Gr. Gr. Gr. Gr. Gr. /.635. /.%<3< 6.%6. 6.6/< /.%526 name& !ndreea Ko$acs name& 8iamei 9ao name& *eng =uang name& *ang ?itian name& )u#as 9rzon#a Remar#s0feedbac# 'ts. ma(core

(ub,ect Content )3roup assess%ent* A con,incin3 presentation of! F The PESTEL analysis F The Retail for%ula

%7 %7

Clear recco%endations 3i,en to the co%pany

.7

Total amountAdi$ided by /7B

/77

3%