How to do Business with the Czech Republic? The case of beer markets

Résumé du document

Within the framework of the course "International Trade and Business Challenges", our professor Miss Chau asked us to analyze and to develop a strategy to enter a specific sector of one of the BRIC countries and the 8+2 new EU members. In this context, we decided to tackle the beer sector in the Czech Republic. Since 2004, the Czech Republic is part of the European Union. This adhesion conducts them to adapt their commercial and juridical framework. Today, doing business with the Czech Republic is more reachable and favorable for international actors. This has been possible thanks to the abolition of the tariff and non-tariff barriers and the setting up of investment incentives by governmental plans to promote the country abroad. All these efforts have been rewarded. The Czech Republic is one of the most prosperous and stable post-Communist state. On the one hand, the GDP is constantly increasing, what is making them nowadays the fastest growing economy in the European Union. On the other hand, several Czech sectors, including food and beverage industry, are really full of promises. All these statements have attracted and pushed us to focus on the Czech Republic for the elaboration of this paper. More specifically, we have chosen the beer sector because beer is really anchored in the Czech culture and its daily life. The consumption of beer is a tradition and Czech breweries are well-known for their particular skills and their special beers.

Extraits

[...] Concerning the political level, the Czech Republic has adapted all the reforms and agreements needed to join the global policies and the vision of the European Union. Industrial tradition and skilled workforce The Czech Republic knows a worldwide first-class reputation for industrial skills and workforce. This reputation is based on a quality background of schools. Investors are aware about the qualified workforce and that represents a real advantage of the Czech Republic to compete with competitor countries. Infrastructure The state, i.e. quality and density of infrastructure, is an important attribute as well. [...]

[...] It will be adapted according to the region we will invest in. The capital city of Prague is the major business hub of the Czech Republic. More than 10% of the country's population lives here and the city's economy accounts for of the Czech GDP[22]. Quality housing, international schools and universities, sports facilities and world-class cultural opportunities as well as unspoilt nearby countryside make Prague a pleasant city to live in. Tens of thousands of foreign residents share the Prague's cosmopolitan atmosphere. [...]

[...] How to do Business with Czech Republic? The case of beer market Table of contents Introduction I. Highlight the entry regulations Statement and constraints 1. Statement 2. General burden National common opportunities Reforms and trade agreements Imports and exports of the country II. The beer sector in the Czech Republic Description of the sector and its evolution Major actors in the Czech beer sector Purchasing behaviors Norms and laws III. Specific issues and risks of the market IV. The right strategy to enter the market - Recommendations Conclusion Bibliography Annexes Introduction Within the framework of the course “International Trade and Business Challenges”, our professor Miss Chau asked us to analyze and to develop a strategy to enter a specific sector of one of the BRIC countries and the 8+2 new EU members. [...]

[...] Once the businesses are transferred it is important, when completing the business model and transferring the staff, to ensure that the alignment of the diverse cultures of both partners is a strengthening and positive process. The joint venture' shareholders bring to the table exceptional values, traditions, unrivalled brand building experience and a commitment to quality and efficiency that will form a basis for our new company. Regarding the management, it is crucial when creating a joint venture to have an adapted management. [...]

[...] Since its successful entry in the EU from an economical and social point of view, Czech Republic knows a fast expansion becoming the place to invest for companies that expect to have a long term expansion and evolution and give a great interest to future global view. Moreover, we realized that the gap between poor people that are generally living in the rural area and rich people who live near or in the capital is present in Czech Republic. The company that invests in the country has to be aware of these cultural and social differences and to take them into account when establishing its strategy. [...]