Market entry country report

P ercentage of income spent on leisure? 30−40% All kinds of sportg) What do people wear? W hat is business dress? P.

ercentage of income spent on clothes European styleh) Housing: How and where do people live? P ercentage of income spent on housing. A t the end of the communist era, housing was a major social problem.

A lthough the postwar era saw steady growth in housing quality and quantity, that growth fell far short of demand in both geographic distribution and total availability. I n 1990 the disparity between available dwellings and number of households requiring housing was estimated at between 1.6 million and 1.8 million units. T.

he causes of this enduring shortage were complex. T hey included the failures of the communist centralized approach to housing policy before 1989 and the economic downturns that occurred in the 1980s and after the reform era began in 1990. In 1989 and 1991, new housing legislation concentrated on privatizing the ownership of housing units. O f the 2.7 million cooperative apartments in Poland, 57 percent were still tenantoccupied rather than owner-occupied in 1991. A n additional 1.5 million apartments were owned by enterprises, which continued the uneconomical communist system of subsidizing as much as 80 percent of the property upkeep for their tenant workers. B.

eginning in 1989, private owners of multifamily houses could receive subsidies for maintenance, for which they had paid in full under the old system. The 1991 legislation set financial and legal conditions under which renters of cooperative-owned and enterprise-owned housing could assume ownership, creating individual property units from the larger units formerly administered by a central agency.

3. Political/legal environment a) Political structure, parties, stability Poland is a democracy, with a president as a head of state, whose current constitution dates from 1997. T he government structure centers on the Council of Ministers, led by a prime minister. T he president appoints the cabinet according to the proposals of the prime minister, typically from the majority coalition in the Sejm.

T he president is elected by popular vote every five years. T he president is BronisławKomorowski.

K omorowski replaced President Lech Kaczyński following the latter’s death in an April 10, 2010 air crash. T he prime minister, Donald Tusk, was appointed in 2007 after his Civic Platform party made significant gains in that year’s parliamentary elections. I n 2011, Tusk was reelected. Polish voters elect a bicameral parliament consisting of a 460-member lower house (Sejm) and a 100-member Senate (Senat).

T he Sejm is elected under proportional representation according to the d’Hondt method, a method similar to that used in many parliamentary political systems. T he Senat, on the other hand, is elected under the First-past-the-post voting method, with one senator being returned from each of the 100 constituencies. With the exception of ethnic minority parties, only candidates of political parties receiving at least 5% of the total national vote can enter the Sejm. W hen sitting in joint session, members of the Sejm and Senat form the National Assembly (the ZgromadzenieNarodowe). T he National Assembly is formed on three occasions: when a new President takes the oath of office; when an indictment against the President of the Republic is brought to the State Tribunal (TrybunałStanu); and when a president’s permanent incapacity to exercise his duties because of the state of his health is declared.

T o date only the first instance has occurred. The judicial branch plays an important role in decision-making. I ts major institutions include the Supreme Court of the Republic of Poland (SądNajwyższy); the Supreme Administrative Court of the Republic of Poland (NaczelnySądAdministracyjny); the Constitutional Tribunal of the Republic of Poland (TrybunałKonstytucyjny); and the State Tribunal of the Republic of Poland (TrybunałStanu). O.

n the approval of the Senat, the Sejm also appoints the ombudsman or the Commissioner for Civil Rights Protection (RzecznikPrawObywatelskich) for a five-year term. T he ombudsman has the duty of guarding the observance and implementation of the rights and liberties of Polish citizens and residents, of the law and of principles of community life and social justice. In 2011, Poles elected Anna Grodzka as the first ever transsexual MP in European history,[53] and the second transgender MP in European history, after the Italian Vladimir Luxuria. 54]b) Political risk averagec) Type of legal system the Republic of Poland (Polish: Rzeczpospolita Polska; Kashubian: PòlskôRepùblikad) Restrictions on foreign investment; laws related to joint ventures or foreign ownershipFinancial support for foreign investments. T he rules and the procedure for theawarding the State aid are determined in the Act on Proceedings in the casesconcerning State aid of 30 April 2004 upon which business entities may benefit fromState aid.

T he aid granted to business entity constitutes State aid as defined in theTreaty establishing the European Community (EC Treaty) if the following conditionsare met: — it is granted by the State or from the State’s fundsit is granted on more attractive terms than market termsit is selective in nature (it privileges a selected business entity or entities orproduction of specific goods) — it threatens or distorts competition and affects trade between EU Member States. The European Commission is the sole competent authority to determine compliance ofgranted under Community law. A ny type of aid granted to business entities by central andlocal government agencies on the basis of individual applications or aid schemesmust be notified to the EC. U ntil the Commission’s approval the aid may not begranted. De minimis aid, i.e. support of up to EUR 100.

000 granted to the businessentities within three consecutive years and aid granted on the basis of groupexemptions — is an exception. e) Quotas, tariffs, trade barriers Export Target Requirements. T he law does not impose requirements concerningexport targets of an intended investment with foreign participation. All business entities operating in Poland, including those with foreign participation, enjoy equal rights in the field of international trade. T.

hey are subject to the same dutieswith regard to administrative procedures concerning the export of goods and services. However, the export of some goods (e.g., weapons or technology which can be usedfor military purposes) requires permissions. II/7 INTERNATIONAL PROTECTION OF FOREIGN INVESTMENTLocal Equity Requirements. A s a general rule, foreign investors are allowed toparticipate in investment projects in Poland on the basis of 100 per cent foreign equity. No local equity is required. Nonetheless, the law governing business activity in a specific field may provide thatsuch activity can be run by an entity with its registered office in Poland, in whichforeign participation does not exceed a prescribed level. F.

or example a license fordissemination of radio and television programs may be granted only to an entity withits registered office in Poland, in which foreign participation does not exceed 49%.f) Laws about advertising message / media / times aired / products 4. S earch through newspapers, magazines, and periodicals (e.g. the Economist’s country reports) for recent marketing events (e.g. articles about new companies entering the market, competition, ad campaigns, etc). W hat do these tell you about consumers, competition, and marketing in this country? W hat support may home country institutions (government, banks, industry associations) provide? I.

n the two decades after World War II, the health of Poland’s people improved overall, as antibiotics became available and the standard of living rose in most areas. I n the 1970s and 1980s, however, alarming trends appeared in certain national health statistics. B etween 1970 and 1986, the mortality rate rose from 8.1 to 10.1 persons per 1,000, and from 8.8 to 10.9 males per 1,000.

T he increase was sharpest among males between the ages of forty-five and fifty-four. F or the same period, working days lost because of illness or accidents increased by 45 percent.

B etween 1988 and 1991, the incidence of newborns requiring intensive care rose from 2.9 to 4.5 percent. Experts listed the major contributing factors as high levels of air and water pollution, unsatisfactory working conditions, overcrowded housing, psychological depression because of deteriorating economic conditions, poorly balanced diets, alcoholism, and deterioration of health services, especially in prenatal and postnatal care.

5. Other marketing implications: What types of products or services would be suited for introduction into this country or region? W hy? W hich ones wouldn’t be? W hy not? I.

n 1992 Poland had fifty-seven hospital beds per 10,000 citizens, about half the ratio of beds available in France and Germany. T he ratio had been declining since the 1960s; in 1991 alone, however, over 2,500 beds and nearly 100 clinics and dispensaries were eliminated in the drive for consolidation and efficiency. A lready in the mid-1980s, about 50 percent of the medicines officially available could not be obtained by the average Pole, and the average hospital had been in service sixtyfive years. B.

ecause the reform budgets of the early 1990s included gradual cuts in the funding of the Ministry of Health and Social Welfare, additional targeted cuts of 10 to 20 percent were expected in clinics and hospital beds by 1994. W hat are the main sources of information for marketing in this country (for all the issues described above)? G uidelines for Final Presentation Components of Market Entry Strategy Targeted country: PolandProduct: Beverage (beer) BalticaWhy Poland? Many people are interested in Poland (not only politics) according to Internet pollsBeverage is the easiest way to sell the product (on line) Big developed and strong market disadvantages — not a good notion about Poland and Polish2. T arget market: — 25 years old or oldermen and women equally3.

M arketing objectives- 10% of the target group the first year- 5% each of the subsequent year4. M ode of entrydirect entry-establishment of the company in Poland5. C ompetitionhighcompetition6.

O verall positioning-expect to be a market leader in the Polish beverage market and in Euriope7. N ecessitiesplans, factories, susidiaries-news vendors (wholesalers or retailers)-own website-advertising campaign-headquarters (head office)8. P rice-average price-competitive price, depending on the mode of selling9.

B randing and communicationbranding against Poland background-on line ads-mass media form of getting ideas across-leaflets-other means of communication10. D elivery to the end userDistribution (delivery) RetailersPost officesOutletsInternet As a result — target audience — end user11. B iggest challengers-foreign laws different from Polishsevere competitionCultural awareness (blunders, misunderstanding,, language, etc.)Ways to increase profitplacement of advertisements in mass media-contests on knowledge about Poland awareness (in order to attract more people) BibliographyDegen, Robert. T he Triumph of Capitalism.

1st ed. N ew Brunswick, NJ: Transaction Publishers, 2008. Warburton, David, Macroeconomics from the beginning: The General Theory, Ancient Markets, and the Rate of Interest. P aris: RecherchesetPublications, 2003. Stark, Rodney.

V ictory of Reason, (Random House New York, 2005) Ferguson, Niall. T he Ascent of Money, (Pengiun, 2008) Skinner, Quentin, The Foundations of Modern Political Thought, vol I: The Renaissance; vol II: The Age of Reformation. CambridgeUniversityPress, 1978).