norway

Norway

Team 4: Becky Tibbenham

Charlotte Windberg

Taylor Jameson

Matt Byler

Summary Introduction to Norway History Demographics Culture Culture and Business Government The Economy Business Schools

Norway: Climate

Varies from north to south and depends on elevation

January JulyOslo 19 62Sognefjellhytta

13 42

Tromsø 25 53

Tromsø

Oslo

Sognefjellhytta

Natural Resources

Richly endowed with natural resources Petroleum Hydropower Fish Forestry Minerals and mining

Highly dependent on petroleum sector Accounts for half of all exports and 30%+ of total state revenue Third-largest gas exporter in world Down to 7th globally in crude oil exporter as production declined

Environment

Environmental Problems Water pollution Acid rain Air pollution

Government Response “Norway is to be an international leader in environmental

policy” Working to achieve international agreement on climate change Seeks global emissions cut 85% by 2050 Wants to ensure polar regions monitored closely

History

1814 Part of Denmark Naval Blockade by King of Sweden Declared an independent country Joined with Sweden in union later in year

1905 Union was dissolved Norway became fully independent

History

Remained neutral in both WWI and WWII, but occupied by German forces for most WWII

1960’s Discovery of Oil and Gas reserves Became very rich Fund extensive social welfare system

Demographics Death Rate: One of lowest in world(8.6 for 1,000)

Women Average Life: 83.1 years Men Average Life: 78.6 years

Birth Rate:10.9 births for 1,000 people Growth Rate: 0.33%

Demographics: Population

United States

Norway

0 200000000 400000000

MenWomen

(in millions)

Demographics: Population

By Age

Age 0-14Age 15-64Age 65+

Demographics: Ethnic Groups

Five largest immigrant groups: Polish, Swedish, Pakistani, Iraqi, Somali

Other immigrant groups: Armenians, Greeks Ethnic Issues

Integration: language problems Employment: unusual names do not get interviews Crime

Demographics: Class Structure

Welfare state Equitable distribution of wealth Responsibility for the less fortunate Equal health care, pension, education

Norwegian values: people, environment More equitable than in other countries

Demographics: Family Structure and Roles

Number of children: 75% have 1 or 2 siblings, 20% have 0 Waiting longer: Average age 26 (up 3 years from 1970) Children live with biological parents

Not necessarily married 46% of children born to unwed parents (1995)

Parents more physically present Maternity/Paternity Leave Ten days of leave per year to care for child Work-Life balance (less work hours)

Demographics: Religion

When born, automatically added to list of Protestant Christians unless “sign out” of the church.

When baptized, registered as members of Church of Norway

Many remain in church to use services, which have strong cultural standing Baptism Confirmation Marriage Burial


Christianity: Evangelical Lutheran Church (82.7%) Other religious or philosophical communities (8.6%)

Roman Catholics Orthodox Christians Jews Hindus Buddhists Sikhs

Non-religious (8.7%)


Least religious country in Western Europe Statistics:

29% Believe in a church or deity 70% Say they have faith 32% Practice their faith 12% Attend church services each month 26% Atheist

Demographics: Education

Graduation Rates Elementary: 100% High School: 90% (within 5 years) University: 70% attend, 41% graduate

Literacy Rate: 99% Public education is free, so very few private schools


Higher Education: Admissions: General University Admissions Certificate Types of Colleges

Universities University Colleges Private Schools


Universities: 70 total institutions 7 universities 9 specialized universities 24 university colleges Various private university colleges

Higher Education: 90% Public Institutions 10% Private Institutions


Private Institutions Primarily in courses that have limited spots in public

schools Most are foundations, either autonomous or religious Pay school fees equivalent to entire cost of education

Norwegian Loan Fund System Apprenticeship Programs

Demographics: Employment

1980: less than half of Norwegian women were employed or active job seekers.

Since 1972, weekly work time for men has decreased by five hours (a.k.a. they work less)

1970s to 1983/1984 recession, unemployment near 2%

2009: unemployment was 3.2%

Demographic: Employment

Majority of adult population in Norway is employed. 70% women work 80% men work 2.3 million person

labor market

United States

Norway0%

10%20%30%40%50%60%70%80%

WomenMen

Culture: DimensionsKluckhohn & Strodtbeck

Culture: DimensionsHofstede

Norway U.S. U.K. China0

1020304050607080

Power Distance


102030405060708090

100

Individualism



10

20

30

40

50

60

70

Masculinity


101520253035404550

Uncertainty Avoidance Index



20

40

60

80

100

120

Long Term Orientation

Culture: DimensionsTrompenaar & Hampden-Turner

Culture: DimensionsTrompenaar & Hampden-Turner

Norwegian Culture

Specific

Individualism

Achievement

SychronicInternal

Universalism

Mostly Neutral

Culture: Values

Individualistic society: comparable to U.S. Value Hard work, honesty, modesty Environment-friendly Value animal protection Health conscious

Culture: Values

Geographic position: Scandavia Jante Law

High success and achievement negatively portrayed Emphasis on collective success Gives sense of modesty; Egalitarian outlook Negative light on those who do not conform Ironic because individualistic society

Culture: Customs

Greet with handshake, eye contact, smile Gift giving only at Christmas or closing deal Tipping not expected, but not uncommon Holidays

Constitution Day: May 17 Christmas New Year’s Eve Midsummer’s Eve (Summer Solstice) Easter (non-religious)

Culture: Communication

Language Norwegian: 95% first language Most fluent in English Many speak Swedish, Danish, German, French, and

Spanish

Topics Avoid: government, culture, salary, family, personal

background, complaints high cost of living Okay: Norwegian culture, politics, nature, environment,

current events, travel

Culture: Leisure & Arts Sports

Skiing: National Sport Handball Soccer

Fishing: Deep sea, Freshwater Hiking (autumn, late summer) Dog Sledding (winter) Scuba Diving Mountain Climbing

Handball

Culture: Leisure & Arts Landscape Painters:

Dahl, Kielland, Baker, Thaulow

Karveskurd (chip carving)

Rosemaling (rose painting)

Most Famous Artist: Edvard Munch “The Scream”

Culture: Food & Eating

Be punctual No business discussion during casual dining Table manners: use utensils Toasts Offer to help clean up Reciprocate invitation

Culture and Business:Conflict & Negotiation

If possible, avoid conflict If not possible, deal with directly or have mediator Decisions by consensus Cost-driven Straight-to-the-point No bargaining No discounts Commitments must be honored

Culture and Business: Ethics

2010 Freedom Score: 69.4 (37th most free in world) Transparency International Corruption Perception Index: 14th of

179 countries 2010: 10th least corrupt country in world (above US!) Corrupt activity: criminal offense Freedom to start, operate, and close a business

Starting business: average of 7 days (world average: 35) Obtaining license: less than world average of 18 procedures

Bankruptcy: Simple and straightforward

Culture and Business: Impressions of Americans

Hollywood-like OR fat and lazy Friendly but loud Only interested in America Convenient: Drive-thru restaurants Shopping These views are similar to what other European

countries believe

Culture and Business: Impressions of American Businesses

Efficient Individuality, imagination, initiative, inventive,

independence of mind Often approving: brainstorming Mecca High regard

Students go to study in the US Business schools going to American-style curriculum

Culture and Business:Business Relationships

Member of the European Free Trade Association (EFTA) Founding member of General Agreement on Tariffs and

Trade (GATT) G10 group within WTO Traditionally strongest trade relationships with closest

geographic neighbors

Culture and Business: Business Relationships

Casual leadership culture Low power distance Less formal Employees’ input valued

Egalitarian Promotions: achievement Leader’s Role: Harness talent of employees

Culture and Business:Management Practices

Values hard work Motivating employees

Give challenging tasks Benefits other than salary (tuition)

Organizational structure: Depends on size Large: Hierarchy Small: Flat

Culture and Business:Women in the Workplace

Strong presence: 50% of workforce Government positions: 50% women

President of Parliament Commissioner of Oslo Police President of University of Oslo

Business positions: Executives: 3.5% women Middle Managers: 7.5% women

Work conflicts with “home duties”

Culture and Business:Human Resources Practices

Not well trained prior to employment Classes very lecture-oriented Few presentations compared to USA

Laws No national minimum wage Working Environment Act: Safety + Benefits

Recruiting: Interviews (similar to United States) Promotions: Based on individual achievement

Culture and Business:Human Resources Practices

Compensation Base salary Vacation time: 21 days Public Holidays Sick time & Maternity leave Disability Extras: bonuses, company car, cell phone, newspaper

Pension National: Required contribution from employer and employee Company: Required defined benefit or defined contribution New Law 2006: Based on years and salary

Culture and Business:Business Practice Norms

Similar to United States Clothing dependent on individual company Generally less formal Business cards: given, but no distinct tradition

Work week 40 hours per week 9 hours per day Overtime: 40%+ normal hourly rate Sundays and Public Holidays are statutory holidays


Meetings Plan early Be on time! Very little small talk Very straightforward At beginning, shake hands Build trust: Don’t change project Emphasize facts, benefits, and profitability Show usefulness and technical quality Keep deadlines


Dos & Don’ts Do be on time Do keep to your project’s schedule Be careful about culture-related humor Don’t give gifts excessively Don’t give the hard sell Don’t misinterpret their less expressive body language Don’t interrupt the speaker Don’t complain about the cost of living Don’t smoke without asking

Government

Norway is a unitary constitutional monarchy Parliamentary system

King of Norway is the head of state Prime Minister is the head of government Similar to UK

Welfare state

Government

Rights for people: Free public health care free Both parents get 12 months paid parental leave Pension for everyone All children right to kindergarten All 16-19 year olds right to 3 years of high school

Government: Legal System

Main Crime: Economic Constitution

1814 Three branches: legislative, executive and judicial

Also mixture of: Customary Law Civil Law Common Law

Government and Business

US and Norway friendly association Foreign Policy Magazine ranks Norway last in its Failed

States Index for 2009, so Norway is the world’s most well-functioning and stable country

Norway will remain among the richest countries in world for foreseeable future

Government and Business

Infrastructure Domestic & International travel: airlines, buses, trains, car

ferries to other European countries Communications: mobile phone coverage, Internet usage

Technology One of most advanced networks in Europe Domestic Satellite System Advancements in petroleum sector Several higher education schools devoted to science and

technology

Government and Business: Infrastructure Issues

Energy requirements Electricity generation

99% from 27 million kilowatts of hydroelectric capacity 850 hydroelectric plants Often exports electricity to western Europe

Top consumer of electricity in the world (per person) Renewable Development (soil, biomass, wind) Wind Farm Development

Off western coast Invested $4 billion 4 major wind farms online in last 10 years


Road network most dense on east coast Building roads and railroads difficult and expensive

Rugged terrain Water traffic important in many places

Merchant Marine Merchant Marine: 1831 vessels, one of largest in world Oslo is the main port


Tariffs: Rating of 10 in 1996, down to 4 in 2008

The Economy

Economy is a developed mixed economy with heavy state-ownership in strategic areas

Almost half of the GDP goes back to the national treasury and is distributed through the state budget. So through taxes, the government distributes money to the society through the state budget.

Economic Statistics(as of July 2010)

United States Norway-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

InflationUnemployment

Economic Statistics(GDP Comparison)

2000 2005 20100

2,0004,0006,0008,000

10,00012,00014,00016,000

USA (GDP)

(in billions)

Economic Statistics(GDP Per Capita Comparison)

2000 2005 20090

100002000030000400005000060000700008000090000

United StatesNorway

(in billions)

Economic Statistics(GDP Sector Comparison)

Norway

AgricultureIndustryServices

United States

Economy: Taxes

Income tax: 28% Applies to all forms of income of the corporate bodies;

Generally lower than EU average

VAT tax: 25% standard 14% for food and drinks 7% for move theater tickets and public transportation Largest source of government revenue

Economy: Currency

Currency: Norwegian Kroner ($1 = 5.85 NOK) Oslo Stock Exchange

Main market for trading in shares of Norwegian companies Petro exchange: driven by oil

Economy: Main Industries

Shipping Forestry Petroleum Fisheries Agriculture has declined Public sector among largest as percentage of GDP

Economy: Relationship with EU

Largest Trade Partner: EU Growing stronger Diminished trade barriers EU becoming stronger

EU’s 4th largest import partner €91.85 billion Behind only China, Russia, and United States

EU’s 6th largest export partner €43.58 billion Behind United States, Russia, Switzerland, China, and Turkey

Economy: Imports and Exports

Imports Machinery and equipment, chemicals, metals, foodstuffs Main partners (2008): Sweden 14.3%, Germany 13.4%,

Denmark 6.8%, China 6.4%, UK 5.9%, USA 5.4% Netherlands 4.1%

Exports Petroleum and petroleum products, machinery and

equipment, metals, chemicals, ships, fish Main partners (2008): UK 27%, Germany 12.8%, Netherlands

10.4%, France 9.4%, Sweden 6.5%, US 4.5%

MBA Students

Marius Sebastian Ramnæs Kine Sofie Espedal Knudsen Frikk Aleksander Brynestad Stokke Ann Sofi Grantangen Strysse

MBA Students: Business Schools

Norwegian University of Science and Technology (NTNU)

Norwegian School of Economics and Business Administration

Norwegian School of Management (BI) Buskerud University

Norway vs. USA MBA StudentsPart-Time/Full-Time

Norway USA

Marius Full-time Full-time Matt

Kine Full-time Full-time Taylor

Frikk Full-time Full-time Becky

Ann Full-time Full-time Charlotte

Norway vs. USA MBA StudentsNumber of Languages

Norway USA

Marius2

Norwegian & English

2Spanish & English

Matt

Kine2

Norwegian & English

2 Portuguese & English

Taylor

Frikk2

Norwegian & English

1(basic Arabic

& Chinese)Becky

Ann2

Norwegian & English

2 Norwegian

& EnglishCharlotte

Norway vs. USA MBA StudentsWork Experience

Norway USA

Marius Grocery store cashier

4 years veterinarian technician

Matt

Kine3 years in Shipping industry

3 years Agriculture Taylor

Frikk Part-time, self-employed

3 years HR1 yr teaching 1 yr Bus Intern

Becky

Ann 1 year as accountant

Charlotte

Norway vs. USA MBA StudentsConcentration

Norway USA

Marius Control Theory

General Business Matt

Kine International Business

General Business Taylor

Frikk Finance Management Becky

Ann General Business

Charlotte

Norway vs. USA MBA StudentsJob Post-Graduation

Norway USAMarius Management Medical School Matt

KineContinue in

shipping industry

Sales and Finance

(international)Taylor

FrikkEntrepreneurial Creative/Dynam

ic Job

HR or Educational

AdministrationBecky

Ann Business Manager

Charlotte

norway

Documents

independent norway

norwegian sea

natural gas

norway norwayteam

sea lanes

barents sea

independent kingdom

north atlanticcoastline