The Slovakia flag was officially adopted on September 1, 1992.
Red, white and blue are traditional Pan-Slavic colors.
The current population of Slovakia is 5,449,497 as of Tuesday, May 8, 2018, (Worldometers,2018)
Population growth rate
According to the Charts, comparing 2017 and 2018, the population of growth rate has been constant for over a year.
Slovakia has an estimated population of 5.45 million, compared to 5.39 million at the 2011 census.
Heavily-forested, the rugged Ore Mountains dominate the central regions of Slovakia, while the Carpathian Mountains cover its northern borders with the Czech Republic and Poland.
,Total Area 49,035km2 .(Worldatlas,2017)
Four decades of official atheism ended with the collapse of communist control in 1989.now, The majority of Slovaks are Roman Catholic, but Protestant churches, particularly the Evangelical Church . (Calvinist).
Although the majority of the population identifies Slovak as its mother tongue.(Blazek,2018)
Bratislava is the most populous city in Slovakia with a population of 583,600. It is the capital city of Slovakia and located along the Danube river and bordering Hungary and Austria. The city is one of the fastest expanding cities in the European union with a booming industrial and commercial establishment.(WorldAtlas,2018)
Median Population Rate
In 2015, the median age of the Slovakian population was 39.2 years.
Climate or weather Conditions
Slovakia's easterly position gives it a more continental climate than that of the Czech Republic. Its mountainous terrain is another determining factor. The mean annual temperature drops to about 25 °F (−4 °C) in the High Tatras and rises to just above 50 °F (10 °C) in the Danubian lowlands. (Blazek,2018)
A standard working week (40 hours and five days) is the dominant form of working time distribution in Slovakia. According to the statistical data, 73.1% of employed people usually work five days a week and 36.9% of the employed use to work in average from 39 to 41 hours per week in their main job. (Eurwork,2009)
More than four-fifths of Slovakia's population are ethnic Slovaks. Hungarians, concentrated in the southern border districts, form the largest minority, making up less than one-tenth of the republic's population. Small numbers of Czechs, Germans, and Poles live throughout the country.(Blazek,2017)
According to IndexMundi.com (2017) the literacy rate in Slovakia is 99.6% over the years. This means that 99.6 of Slovakians have the ability to understand and respond to written text.
Type of Government
Slovakia operates under a representative democracy, which means the general public elects individuals to represent their interests in government. The Prime Minister of Slovakia is Peter Pellegrini. (Pariona, 2017)
How The Government is formed
The constitution addresses the issue of local administration only cursorily, defining the single unit of municipality as a territorial and administrative entity exercising jurisdiction over its permanent residents. Actually, Slovakia is composed of eight administrative regions (including Greater Bratislava), with each region divided into a number of districts. In March 1996 the Mečiar government implemented a new scheme of local governments that resulted in a redrawing of the political borders of many southern districts, with borders running from north (where the population is solidly Slovak) to south.(Britannica,2018)
Political issues affecting the business climate and international
Current Political situation in the country
Slovakia has become the latest country in Eastern Europe to face a major political crisis. But while regional neighbours such as Poland and Hungary have been clashing with the EU over their perceived illiberalism, for Slovakia, the pressure on the government has come from the country's own citizens.
The tension has been such that the entire cabinet of prime minister Robert Fico had to resign in a single day.. (Makovicky,2018)
Tariffs, embargoes, quotas
Goods imported into Slovakia are liable to three kinds of charges: customs duties, value-added tax (VAT) of 10% or 23%, and excise tax. A 3% import surcharge was eliminated on 1 January 2001. However, Slovakia imposes surcharges on approximately 80% of its imports.(nationsencyclopedia,2001)
Corruption is a problem for businesses in Slovakia. Companies cite the lack of transparency and inefficient government bureaucracy as the largest impediments to business. The Slovak Penal Code, the Criminal Procedure Code and the Specialised Criminal Act provide for the criminalization of most forms of corruption, including active and passive bribery, bribery of foreign officials and extortion. However, insufficient law enforcement negatively affects foreign companies in Slovakia. Companies report the possibility of facilitation payments and bribes in the customs, public utilities, public procurement, and judicial sectors. ( Integrity,2015)
Type of Economy
(Since the establishment of the Slovak Republic in January 1993, Slovakia has undergone a transition from a centrally planned economy to a free market economy
GDP per capita
GDP growth rate
Stability of currency
The salary impose in Slovakia is demanded at two unique rates of 19% .
Exporting partners and products:
In 2016 Slovakia traded $190B, making it the 38th biggest exporter on the planet.).
Stability of Economy
There are four specific licensing regimes: Extremely dangerous poisons, hazardous chemical substances, pesticides and additive chemical substances are subject to non-automatic licenses that may be issued upon written application of the Slovak importer/exporter of the goods.
Narcotics, psychotropic substances, precursors and additive chemical substances are also subject to non-automatic licenses that may be issued upon written application of the Slovak importer/exporter of these goods.
The unemployment rate in Slovakia edged down to an all-time low of 5.55 percent in March of 2018 from 5.72 percent in the previous month, in line with market expectations.
International Organization Memberships
Slovakia keeps up diplomatic relations with around 173 nations and is an individual from an large number of international associations, including:
EU - the European Union, since 2004
UN - the United Nations, since 1993,
WTO - the World Trade Organization , since 1995,
NATO – North Atlantic Treaty Organization, since 2004
UNESCO – United Nations Educational, Scientific and Cultural Organization, since 1993,
INTERPOL – International Criminal Police Organization, since 1993
Gathering to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94,
Laws on investment/exports/International Business
Slovakia is under the Eu hence it has to follow its head,
Products tested and certified in the United States to American standards are likely to
have to be tested and recertified to EU requirements as a result of the EU's different
approach to the protection of the health and safety of consumers and the environment.
Business etiquette focuses on the behaviour deemed appropriate in a professional setting and you'll be more likely to make an excellent impression on people you encounter if you maintain a professional approach.
Greetings should include a firm handshake and direct eye contact; a weak handshake means that you are weak and no direct eye contact could be taken to mean that you are hiding something.
Remain standing after greeting until invited to sit down as there might be a seat reserved specifically for you.
Do not give chrysanthemums or calla lilies as gifts because these are traditional funeral flowers.
Polychronic or Monochronic Culture
Slovakia is Monochronic. Punctuality is important because arriving late for a business meeting does not paint a good picture of the individual. The Slovak business community is very punctual and people don't like to be kept waiting for a meeting.
A 15 minute grace period is normal in social settings,
Hofstede's Cultural Dimension vs Canada's cultural dimension
Market Entry Strategy
The best way to penetrate the slovakian market is by a Joint Venture. Joint venture is when a company A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Here we see how there will be much benefits like access to distribution networks, larger market shares, increased capacity, sharing risk and cost with a partner, access to greater resources, including specialised staff, technology and finance and they will have greater ideas together and decrease the possibilities of failure.
Primary or Secondary Research
Research can be conducted both ways, primarily or secondarily.
Primary research is likely to be more expensive and it will be done firsthand,by conducting interviews, handing out questionnaires and surveys. However by conducting it this way it costs alot of time and effort to analize it . It is the more effective way of research compared to secondary data research. “How often do you consume Chocolate?”, “would you consume chocolate with liquor?” This will give the company a better understanding of the country through this data collected about the public towards the country.
Adjust Product Culturally
Slovaks star on the World Top 10 most Consuming Chocolate Countries in the world. Slovaks purchased 10.7 pounds of chocolate per person in 2015. Local chocolatier Lyra Mandala became the country's first Great Taste Award winner in 2014 for their chocolate-dusted freeze-dried fruit. The small operation employs no more than 20 people at time and only offers products regionally
(Mcphilips,2014) Although the company is entering into Slovakia's Home market, Goodies Inc, will not have to adjust their product to the country's culture is it is proved by the Hofstede's research about the country's uncertainty avoidance dimension, They have scored a high 51 . This makes Goodies inc, easy to enter the market because the slovakians would be open and welcoming to new cultures.
The product will be culturally designed to suit this culture. This culture requires a special set of design because not all Slovakians speak or read the language of its current wrappers. I we will need to get break the language barrier and to penetrate and get their attention because people will not be interested in translating I themselves and it will not be feasible or quick to grab attention if they do not understand the language. The brand and colour and words would be created psychologically which would be violet and use soothing fonts to induce a feeling of calm and relaxation feeling of luxury, the perception of speciality, just like starbucks.Alcohol plays a significant role in the culture of Slovakia, from wine sampling in private cellars to knocking back shots on the morning after a wedding, this would be a amazing idea to adjust the product towards this culture which is tilting towards alcohol, we will create a variety of tastes.
list price, discounts, allowance, payment period, credit terms
For the price range we would start of marketing our product using the price penetration, this is so people wage ranges would be able to experience the product first hand. We will also be offering discount for this product on apps and qupone tickets next we will also promote our products to retail stores with a good period payment plan and good credit terms. Next the price range to their daily budget to gradually go down the maslows hierarchy table to become a need.
Promoting will be key to introduce this product. There are many new techniques of promotion these day which we would enhance the market share of the product. We are targeting the advertisement of this product culturally. I we are going to be not ethnocultural, instead we will chose to understand the culture of the unique Slovakians. We are going to use. Push promotional strategies work well for lower cost items, or items where customers may make a decision on the spot. This will create and generate exposure. Once a product is already in stores, a pull strategy creates additional demand for the product. We will have a amazing catchphrase and logo that will be suitable for promotion in this country's social medias, I like facebook and instagram. I we will target the more popular one which is Instagram (557%) on it.
Buyers would be interested in getting products in convenient places. It is close to a daily necessity so retail stores, Supermarket,
Direct selling, selling booths in marts or public transportation or public locations would be a high turnaround. Getting he license and providing it to distributors will be a helpful fact to start up with to easy the promoting through the right distribution (Piscis) of the item when we will promote the product . To make the place transportation and have the product at the right place at he right one, I we will need to get the necessary documents to get pass the problems like tarrifs and barriers. Our competitors promote their products the same way but our differentiation would be accessing the right international distribution channels. this can be so when we will be using the methods to promote this consumer product. This is an example of effective methods we will use.
The challenges would be to penetrate through this economy with less political stability. This economy has a good market because it has a large market share available but despite that this is a country it slightly higher poverty which is equivalent to Bangladesh's poverty. The poverty rate is 11%. So the poverty rate would hinder the purchase of this product. Another Advantage would be it's advantage of trying to get in his market with Goodies chocolates would be it's 7th top ranking In Eastern European -most xpensive city to live in (Bratislava). I think this would be a good idea because people would have higher disposable income. This would increase spending on wants after reaching the wants. Which is after you pass through he hierarchy table of maslow. We can now target the higher quadrants like esteem needs. another problem would be the price of labour little be higher than the average because they avoid cheap foreign workers.
Since the cocoa market will be bloomimg in this country in the near future (CoherentNews. 2018),it will be good to participate in the revolution of chocolate in this country. Slovakians are not famous for their chocolatey taste buds but during the revolution Slovakians being high in their uncertainty avoidance level wouldn't mind . I would also recommend to fit in their culture because they are very culturally rich. I in other words their culture is important in expects of decision making. Hence adding the liquor to chocolate would be a good flavour. Next I would recommend investing in this country due to its economical stability when it stopped it's Slovak korona and joined the Euro currency in 2009. I would recommend also changing the origin of products language to suit the country's native language which is Slovak. This is how we can get the attention not only of the foreigners which understand English but the native Slovakians. I would recommend to rent a local store house in the country where we can supply the products after locally suited to taste in the warehouse. I would recommend to hire customer support in the country by itself by outsourcing because not much outsiders of the country would know the Slovak language and it would increased in cost to nearsourse,we can insource. With a branch plant existent, I there are less problems with tarrifs and and duties, and we can modify the product easily like it is available to modify to custom needs or seasons.
In conclusion, Slovakia is an amazing country to invest Goodies Inc. I in because of he various facts we have deeply research about it suitability in this country's political, economical, cultural and household systems. Goodies Inc will be predicted to so well in this country. The benefits are much and it is a safe risk to take cause of the less consider involved or risk measured in this country.chocolates sector would be a good invest with the predicted revolution in Slovak upcoming. I would also Conclude with the perfect marketing strategy taking into country economic cost and accounting cost, I know there will be no mistakes in this venture.
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