University Of Finance & Administration

INTERNATIONAL BUSINESS[B_IB]

Ing. Pavla Břečková, Ph.D.pavla.breckova@mail.vsfs.cz

2.

INTERNATIONAL BUSINESS

Full-time course = 12 lectures (summer term 2010) 1-2 What is international business. Comparative advantage. Protectionism x Liberalism.3-4 Internationalisation and Globalisation. Foreign expansion. Entry modes.5-6 Culture and its role in IB. Culture differences. Negotiation and presentation of business results.7-8 CASE Study elaborated in teams (no regular lecture held at VSFS, April 1st, 2010)9-10 Czech IB. European Union. International market research (analysis). Data collection.11-12 International trade barriers. Economic integration. Personal preconditions for working in IB. SWOT of Czech companies.

Within each lecture: - practical discussions on topical economical issues- article: reading + analyses- team knowledge competition

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

3.

CREDIT conditions B_IB

Full-time course = 12 sessions (summer term 2010)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

CONDITIONS: PRESENCE at IB lectures: 50%

short TEAM PRESENTATION - preparation at home: 10-15 min. presentation on international business issue

lecture marks based on active PARTICIPATION: communication, reading and discussing topical economic issues / team knowledge COMPETITION

If unfulfilled: 1. knowledge test / 2. semester elaborated paper + test

4.

TEAM PREZENTATION

10-15 mins. team presentation (normally in ppt, each team member talks/presents, preparation at home necessary)

Following topics:

4.3.2010Globalisation: influence on business, examples

18.3.2010CSR (Corporate Social Responsibility): opportunity or necessity, examples

15.4.2010EU (European Union): influence on Czech businesses, examples

29.4.2010Personal preconditions for working in IB (International Business)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

5.

Common session STRUCTURE

IB NEWS – small talk / discussion – topical business issues

LECTURE

READING – analyzing – interpretation of an article

(team work) / Prezentation of the materials prepared at

home

Team PRESENTATION + audience evaluation

Quick team knowledge COMPETITION

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

6.

Lecture content

History of Czech international business [IB]

European Union principles of IB

Opporturnities & threats of CZ membership in the EU

International market research (analysis)

Data collection & selection in IB

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

7.

History of Czech IB

100 years ago: in “top ten” of the most advanced countries in the world

Before 2nd World War: orientation on western markets, still Czechoslovakia =10th most industrially developed country

After 2nd World War (communist period): CZ „manufactury“ of the communist bloc with over 70 % of export into these countries

1989 fall of socialism: CZ’s IB shift to the western partners again (Questionable move today)

2004 CZ joins EU: • Elimination of trade barriers (duties, quotas and other restrictions)• Solid business climate in CZ => inflow of FDI (often based on governmental INCENTIVES)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

8.

CZ – joining EU

CZ member of EU since 1.5.2004 (in the wave of 10 countries – the biggest enlargement in the EU history)

1st half of 2009 Czech presidency of the EU

today 27 countries

members are sovereign nations that have agreed to cede certain of their powers to the EU

Negotiations about further countries accession  

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

9.

EU business principles

single market non-existence of tariffs (custom duty), quotas and administrative restrictions of import & export

prohibition of EU companies DISCRIMINATION (tenders, market operations, certification)

no DUTY CHECKS on the borders within EU members

single business, duty & immigration approach (policy) towards third parties strict regulations – environment single currency (EUR) / Schengen Space

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

10.

Business Advantages & Disadvantages of Czech accession of EU

DISADVANTAGES - stronger competition - less freedom in some of state economical decisions

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

ADVANTAGES- duties elimination- free movement of goods / partly free mov.of labor- larger market (single market)

11.

OPPORTUNITIES for Czech ent. at EU single market

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

12.

THREATSfor Czech ent. at EU single market

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

13.

ŘÍZENÍ OBCHODU [ROb] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz::

INT environment & its influence on business

IB works in a certain environment, which has an influence on:

Decision making WHETHER OR NOT to enter this market (market selection)

Entry mode (the form of entry)

Choosing of mktg strategy

PEST analysis = analysis of int.envi:Political & Legal e.Economical e.Social & Cultural e.Technological e.

14.

Basic business analysis

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

15.

ŘÍZENÍ OBCHODU [ROb] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz::

[PEST] P – Political & Legal environment

Legal environment: possibility to control ownership possibility to buy properties (lands, buildings) possibility to repatriate the profit abroad law enforcement possibility to set up a new company & finishing

entrepreneurship

Political environment: o political system and political stabilityo influence of interest groups / stakeholderso relation to foreign companieso corruption

16.

[PEST] (P) - LEGAL environment

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

17.

[PEST] (P) – POLITICAL environment

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

18.

[PEST] E – Economic environment

economic policy of government: o IB policyo rate policy

basic macro-economic measures and their development / trend

proportion of ‘grey economy’

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

19.

[PEST ] S – Social & Cultural environment

• Culture: Extent of freedom of society Hierarchy Value orientation (e.g.: western pattern etc.)

• Institutions:– Family – Religious bodies– Educational institutions

• Further factors:– Language– Non-verbal communication – Way of dressing – Aesthetics– Life styles

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

20.

[PEST] T – Technological environment

existence & quality of basic infrastructure

quality & availability of communication infrastructure: TV,

broadcast, phones etc.

IT – possibility of data transfer abroad =>

internationalization of services, standardisation

approach to information

E-commerce / e-business

B2C, B2B, C2C (e-Bay), C2B

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

21.

Basic business analysis

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

22.

Decision making – foreign market evaluation

PEST / STEEP / STEEPLE analysis

Competition analysis (Porter)

SWOT analysis

BENCHMARKING

Emerging market trends

DATA collection: Secondary data

= was collected already Primary data

= necessary to obtain it

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

23.

Data collection

SECONDARY / desk • analysing of secondary data

• low cost

• quick execution

PRIMARY / terrain • collection & analysis of primary d.

• relatively high cost

• time-consuming

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

- Czech presidency of the EU

- EU international business principles

- Single market

- International market analysis / Competition analysis / Internal analysis

- Types of law systems [Case / Civil / Religion / Bureaucratic]

- Business Analysis- PEST – international business environment evaluation

- Primary x Secondary data, collection

24.

KEY terms

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

25.

Thank you for your attention

Ing. Pavla Břečková, Ph.D.19063@mail.vsfs.cz

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz