Al Ali Stage Cultural Analysis

2.Cultural Analysis

I-Introduction:

In order to enter a global market, we need to have an idea about the country’s cultural background, which helps him or her to build up a good business. As was explained in Stage 1, Italy is one of the five largest industrialized economies in the world. It is the gateway to the world’s largest single market, the European Union. It enjoys excellent economic contacts with the new democracies in Central and Eastern Europe. The products to be marketed are trade “Camel leather” bags and accessories. The company started in 2010 and has currently gained business success to almost 800 million dollars in assets. The company started with only 5 employees but it is currently employing more than 500 employee. The turnover of the company started at 500 but currently is at 3000.

III-Geographical setting:

Italy has very old history as a location and with the other countries, as Italy has experienced a tumultuous period that saw a mass exodus of her people and the disastrous consequences of two World Wars.

Yet over the past 60 years the country has reclaimed its position as a major social and cultural player in world affairs. Italian goods and services have excellent international reputations, and Italy remains one of the most popular tourist destinations in Europe so far.

Location:

Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia.

Climate:

Predominantly Mediterranean; Alpine in far north; hot, dry in south.

Topography:

Italy is located in Southern Europe and comprises the boot-shaped Italian Peninsula and a number of islands including the two largest, Sicily and Sardinia. The Apennine Mountains form the peninsula’s backbone, the Alps form its northern boundary.

IV-Social Institutions:

Before Italian families seemed to be as extended families which includes grandparents, aunts, uncles, and cousins and parents. But the average Italian family today is made up of one or two children.

Family:

Typically, due to different cultural concepts of lifestyle and values, families in the South will have more children than those of the North of the country, often more than two. The family is the center of the social structure and provides a stabilizing influence for its members; the family provides both emotional and financial support to its members. Nowadays nuclear family style is more embraced, as it contains of parents and two children only, as there are only few left that live with extended family style which contains grandparents, parents, children, cousins, aunties, uncles.

4.Role of male & female:

As the culture is being changed in Italy time by time, so, the responsibilities are being more, this responsibilities before was taking cared by the male only, but after the development and education, women also playing a huge role. The role of being a traditional housewife to Italian women is no longer appealing. Young housewives see this job as more of a necessity than a choice. Working positions of women vary depending on their location in Italy. The majority of mothers who have a child from ages 0 to 2 are working mothers (47.4 percent) while 42.8 percent are housewives.

Education:

Free education is available to children of all nationalities who are residents of Italy. They start with nursery then primary school, middle school, high school, then professional institutions that include higher education. At present the Italian school system is divided into three parts:

Primary school (scuole elementare)

Lower secondary (scuola media)

Upper secondary school (scuola superiore)

Political System:

Independence Day of Italy is 17 March 1861 (Kingdom of Italy proclaimed; Italy was not finally unified until 1870).

Political structure: In June 1946, the Italian people voted to abolish the Monarchy and the country became a Democratic Republic. The Italian Parliament is made up of 946 elected members. There are two houses, both with equal rights and powers.

Political Parties: Also Italian voting system is based on a ‘Party List’ system, where each party’s candidates are ranked in order of priority.

Stability of Government:

Italian governments have been known to be unstable, and it has had a lot more general elections than other countries.

Taxes:

Taxation in Italy is levied at national, regional and municipal level. The Italian tax system is managed by the (Italian Inland Revenue). The Tax Year runs from 1st January to 31st December. All workers are subject to taxation of their income or other benefits, except for daily allowances paid for business trips and lunch tickets. The amount of tax to be paid depends on the type and duration of the contract. I have to keep in my mind about this point before opening a business over there, as a residence also I have to pay taxes, and it differs from business to business.

Role of Regional and local government:

The Italian constitution provides for four types of territorial bodies: regions, provinces, metropolitan cities and towns.

The republic is divided into regions, provinces, and communes. There are 15 ordinary regions and an additional 5 to which special autonomy has been granted. The organs of regional government are the regional council, a popularly elected deliberative body with power to pass laws and issue administrative regulations; the regional committee, an executive body elected by the council from among its own members; and the president of the regional committee. Type of government: republic, capital: Roma (Rome).

D- Legal System:

The Italian legal system is governed by the Constitution of the Italian Republic, promulgated in 1948. This is a fixed constitution, meaning that it cannot be amended by ordinary laws.; It can be amended or added to solely by means of a special procedure, which is highly complex and is laid down in the Constitution itself. And it’s based on civil law system; appeals treated as new trials; judicial review under certain conditions in Constitutional Court; has not accepted compulsory ICJ jurisdiction

The legislative power of Parliament: The Constitution confers upon Parliament, which is made up of the Senate and the Chamber of Representatives the task of creating laws, which are the primary sources of the State’s legal order.

The company is a member of the intellectual property rights of Italy in order to protect its patent from competitive growing market.

In order to meet the current corporate responsibility, the company has registered several social organizations ranging from sports organizations to scholarship body that help the society.

V-Religion & Aesthetics:

A-Religion:

Includes: Roman Catholic, Protestant, Jewish, Muslim. Before Christianity gained a firm grip on the people of Italy, ancient Romans worshipped a series of gods and goddesses. In the Italy of today, the Roman Church still wields a powerful sword, and the people of the Church look to the Pope for guidance. Italy is a Christian country, some 88 per cent of the population belonging to the Roman Catholic Church.

B- Aesthetics:

Visual Arts

The country is a home for visual arts ranging from domestic and foreign visual arts. In order to promote this, the country organizes visual arts fairs to display their artistic works.

Music:

Italy is the home of opera music. Opera music was created in Italy in the 17th Century by Italian music composer Claudio Monteverdi. He wrote his first opera, named L’Orfeo, in 1607 which was composed to commemorate the annual festival of Mantua.

Italy has produced a few very significant names in the world of classical music over the past few hundred years. The most prevalent form of popular music in Italy during the past few decades has been rock music as well.

Drama:

Italian rulers began in 1485 to finance productions of Roman plays and imitations of them. This prompted interest in rewriting Roman plays into Italian as well as the writing of new plays. One of first important vernacular tragedy was Sofonisha by Giangiorgio Trissino.

National Holidays & Events:

There are a few major religious and historical celebrations, which are National Public Holidays and are celebrated all over Italy. On these days the shops, businesses, museums and other attractions tend to be closed. Festivals form a large part of life in Italy and these celebrations are not just confined to religion, historical events, art and culture.

Famous Sports:

Football, Men’s tennis & Stadio Olympico.

Painting:

Leonardo da vinci is the most famous in Italy, Having shown an early talent for painting, he was apprenticed at the age of fourteen to the artist, Verrocchio, patron of one of the finest workshops in Florence.

Theater:

The Commedia dell’ Arte, or The Italian Comedy, as it is sometimes called, flourished all over Italy, and later in France, as a popular form of theatre in the sixteenth and seventeenth centuries. The characters of the commedia fall into three classes: servants (zanni), older men, (vecchi) and young lovers.

Cinema:

Italian Cinema was not that much famous, as Italian Cinema has had its ups and downs, ranging from trashy, low budget films, local comedy. The foundations for this important industry were laid before the Second World War, when the Fascist Government set up a Board of Judgment for popular culture, and with Mussolini’s approval, they created some important structures for Italian Cinema.

VI-Living Conditions

With high per capita and income rate the people of Italy enjoy outstanding living standards. This is also contributed with growing GDP.

VII-Language:

The Italian language is a member of the Romance group of the Italic subfamily of the Indo-European family of languages. During the long period of the evolution of Italian, many dialects sprang up. 93% of population is native Italian speakers. Around 50% of population speaks a regional dialect as mother tongue. Italian (official) 94%; Sardinian, Ladino, Friaul, German, French, Slovene

References:

HYPERLINK “http://geography.about.com/library/cia/blcitaly.htm” http://geography.about.com/library/cia/blcitaly.htm

HYPERLINK “http://global.britannica.com/EBchecked/topic/297474/Italy/258797/Regional-and-local-government” http://global.britannica.com/EBchecked/topic/297474/Italy/258797/Regional-and-local-government

HYPERLINK “http://www.infoplease.com/country/italy.html” http://www.infoplease.com/country/italy.html

3.Economic Analysis

I-Introduction:

Italy’s economy in the 21st Century has been mixed, experiencing both relative economic growth and stagnation, recession and stability. Italy has a great industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian government has struggled to limit government spending, but Italy’s exceedingly high public debt remains above 115% of GDP.

II-Population:

Italy ended 2012 with a population of 59,685,227 people, which represents an increase of 291,020 people compared to 2011. The female population is greater, with 30,795,630 women, representing 51.59% of the total, compared to 28,889,597 or 48.40% men.

The current population of the Italian Republic is estimated to be about 61,470,336. The Italian population makes up only 0.85% of the total world population and ranks 23rd in the population rankings, behind the United Kingdom, but ahead of Myanmar. It is also the sixth-most populous country in Europe.

Age structure: 0-14 years: 13.8% (male 4,335,746/female 4,148,249) 15-24 years: 9.9% (male 3,059,140/female 3,035,991) 25-54 years: 43.2% (male 13,133,733/female 13,416,626) 55-64 years: 12.3% (male 3,675,324/female 3,913,918) 65 years and over: 20.8% (male 5,454,283/female 7,309,287) (2013 est.)

A.Total?

1. Growth Rates

The GDP of Italy has reduced by 0.2% in the first quarter of this year. The average Gross Domestic product of Italy is about 7% from 2012 to 2013 reaching 13% in 2014. A clear indication that the GDP will be 20 by 2015.

2. Number of Live Births

According to the last record as released by the Italian government statistically agency ISTAT in 20th, June, 2014 indicated that more 10,000 live births were evident in the first three months as compared to last year (2013)

3. Birthrates

The Italian birth rate is 8.9 births/1000 populations according to the 2013 population analysis. This indicated that the market has limited birth rate reducing the potentials of future target market.

4.Migration rates and patterns

4.47 migrant(s)/1,000 population (2013 est.), the net migration rate indicates the contribution of migration to the overall level of population change. High levels of migration can cause problems such as increasing unemployment and potential ethnic strife.

5.Ethnic Groups:

Ethnic groups: Italian 94%; German, French, Greek, Albanian, Slovene, Ladino.

III.Economic Statistics and Activities:

Land use: arable land: 41% //; – grass land: 16% //; – wooded area: 23% //; – arid land and desert: %

Agriculture: labor force: 9% //; – part of agriculture in GDP: 3%- Agricultural products: wheat, barley, vegetables, grapes, fruit, olives, fish Energy use (kg per capita): 2932

GNP (This is the Gross National Product of Italy as per 2013)

Total: The total GNP for Italy is 1756. 8 billion Euros in 2013. This indicates a potentials target market opportunity.

Rate of Growth. According to Italy’s statistics for 2013, the GNP for the country is 23%.

Personal Income per capita

The per capita income for Italy as per 2013 statistics is 250 euros, however the rate varies from place to place in the country. For example, those dwelling in the cities enjoy more per capita as compared to those in the rural areas.

C.Average family income:

The average income per person in Italy is $23,917 per year. They also spend almost a quarter of their disposable income.

D.Distribution of wealth:

As a result of Italy’s generous welfare state, the great majority of poor families do not live in extremes of squalor or deprivation. Essential needs provided by the state include basic health care and education, clean water supplies, and housing.

Income Classes

There are only two classes of income among the entire Italy’s population. The class is divided into high income earners and low income earners. These classes are noted to affect the rate of purchase.

Proportion of Population in Each Class

According to the national statistics, the low-income earners take 56% of the total population and 44 for the high-income earners

Is the distribution distorted

The best things with the country is that both the classes are evenly distributed in the all the localities.

Minerals and Resources

Italy was a reach country in the past in terms of minerals but the minerals capacity was exhausted after although resource such as fishing is abundant in the country.

Personal Income per capita

Modes

There are only two modes of earning income in the country. The first is from wages and salary from the government and the other is from private means such as businesses.

Availability

The availability of income in the country is uneven hence depends on other income modes for stable income expect for those getting from the government.

Usage Rates

The saving rate in the country (Italy) is only 25% hence meaning that the rate of use of the income in 75% mostly on medical bills and food.

Communications:

There are many types of media such as television, radio, newspapers, phone, fax and Internet. Italy is the fifth largest market in the world for communication services and television. Italy also has a good communication network to provide information to all Italian regions.

Types

There are two main types of communication in Italy that is oral and written means of communication. Written means found in letters, emails etc. and oral using cell phones and human oral communication.

Availability

The availability of means of communication in Italy is evenly distributed hence communication is easy to access.

Usage Rates

The rate of usage of the two means of communication is Italy is 99% meaning all people communicate effectively.

H. Working conditions:

The normal working day is set at 40 hours per week, not necessarily calculated on the basis of a working week but for each seven-day period. Collective contracts may agree a normal working period of less than 40 hours.

Employer-Employee Relations

Italy has a very good employee-to-employee relationship because of excellent employees’ unions in the country.

Employee Participation

The rate of employee participation in the country is 98% meaning that employees have Job satisfaction.

Salaries and Benefits

Employees are heavily remunerated in Italy leading to increased employee retention and motivation.

I. Principal Industries

Proportion

The main industries in the country and privately owned however the government also has some industries in manages

Ratio

The rate of private to government principles industries is 8: 2

J.Foreign Investment:

Compared to its European neighbors, Italy attracts little foreign direct investment (FDI) but nevertheless ranks 14th among global investors. As FDI flows are highly volatile and fall and rise in reaction to the opportunities created by the crises of the Italian economy. After recovering in 2011, they have now again fallen sharply. A recovery of the FDIs is expected in this year if the country becomes more politically and economically stable.

Opportunities

Several business opportunities in the Italian market that has a population demand Camel leather bags.

Which Industries

There are several leather bag industries in Italy that bring competition to camel leather bags hence the target market is expected to have a stiff competition.

K.International Trade Statistics

Major Exports

Dollar Value

Italy offers export market for its products in more than 100 countries, however its main products is its domestic market more than 1700.6 billion dollars are sold as exports.

Trends

Most of the exports are taken to European countries accounting for 54% all the exports and 30% to Asia and the rest to Africa. Rarely does their product go to United States.

Major Imports

a.Dollar Value

Italy offers import market for its products in more than 10 countries, however its main products is its domestic market more than 1250 billion dollars are bought as imports.

Trends

Most of the imports are taken to European countries accounting for 34% all the exports and 50% to Asia and the rest to Africa. Rarely does their product move from the United States.

Balance-of-payments Situation

Surplus or deficit

The UK current record deficiency wa s£10.7 billion in Quarter 4 2014, up from an updated setback of £3.2 billion in Quarter 3 2013. The deficiency in Quarter 3 2013 likened to 5.1% of GDP at current business sector costs, up from 2.5% in Quarter 2 2013

Trends

The UK has had a relentless deficiency since the mid-1980s. Nations with expansive current record surplus have not so much improved, e.g. Japan had a long time of stagnation

Exchange Rates

Single or Multiple

The country uses multiple rates to do its national business and other foreign business, including dollars, euros, and pounds

Current Rate

The current rate is 1 usd= 0,73 Euro and 1 GBP = 1.25657 EUR

Trends

The current exchange rate trend in Italy is diverse since the country is at its peak of financial growth.

L-Trade Restrictions:

Embargoes

Embargoes are viewed as solid conciliatory measures forced in an exertion, by the forcing nation, to inspire a given national-investment result from the nation on which it is forced. Embargoes are like monetary endorses and are for the most part considered lawful boundaries to exchange, not to be befuddled with barricade which does not exist in Italy

Quotas

Italy has no current trade bans hence the country is open for the camel leather bagd business.

Import Taxes: Import duty and taxes are due when importing goods into Italy from outside of the EU whether by a private individual or a commercial entity. Excise duty is payable on for example tobacco and alcohol. Additional customs fees can be charged to cover the expense of performing any required examinations, verification and or testing of the imported goods.

Tariffs: Tariff rate, applied, simple mean, manufactured products (%) in Italy was 1.42 as of 2011. Its highest value over the past 23 years was 5.86 in 1990, while its lowest value was 1.42 in 2011.

Licensing

The country has several licensing platform in both imports and exports and it considers low licensing fee for potentials investors

Customs Duties

The Italy has several Customs fee platform in both imports and exports and it considers low licensing fee for potentials investors

M.Extent of Economic Activity not included

Major Exports

Dollar Value

Italy offers economic growth for its products in more than 100 countries, however its main products is its domestic market more than 1330 billion dollars of economic activity.

Trends

Most of the economic activity is taken with other European countries accounting for 54%

Major Imports

Dollar Value

The main product is its domestic market more than 1050 billion dollars are bought as imports.

Trends

20 percent to Asia and the rest to Africa. Rarely does their imports come from US.

Balance-of-payments Situation

Surplus or deficit

The deficiency in Quarter 1 2014 likened to 2.1% of GDP at current business sector costs, up from 3.5% in Quarter 1 2014

Trends

The UK has had a relentless deficiency since the mid-1980s. Nations with expansive current record surplus have not so much improved, e.g. Japan had a long time of stagnation

Exchange Rates

Single or Multiple

The country uses multiple rates to do its national business and other foreign business, including dollars, euros, and pounds

Current Rate

The current rate is 1 usd= 0,73 Euro and 1 GBP = 1.25657 EUR

Trends

The current exchange rate trend in Italy is diverse since the country is at its peak of financial growth

Government: There is hardly any assistance in Italy for promoting foreign investment. This trend is reinforced by the European Union which wants Italy to harmonize its tax incentives with the Community regulations.

-Media:

Radio television Italiana (RAI) is the Italian state owned public service broadcaster. RAI is the biggest television company in Italy. It is funded by a mixture of license fee and advertising.

-Shopping:

Shopping in Italy is an amazing experience. The high level of fashion, the beautiful colors, and the high end designers that are offered throughout the country make shopping in Italy one of the finest experiences. Famous shops such as (Andrea Morando, Babylon Bus, Bernardelli, Russo Capri, Spinnaker 101).

-References:

HYPERLINK “http://www.populstat.info/Europe/italyg.htm” http://www.populstat.info/Europe/italyg.htm

HYPERLINK “http://internationalliving.com/countries/italy/the-economy-in-italy/” http://internationalliving.com/countries/italy/the-economy-in-italy/

HYPERLINK “http://goitaly.about.com/od/shoppinginitaly/” http://goitaly.about.com/od/shoppinginitaly/

HYPERLINK “http://www.ajob.cz/en/about-countries-at5/italy-living-and-working-conditions-a563” http://www.ajob.cz/en/about-countries-at5/italy-living-and-working-conditions-a563