1 / 40

Belgium Pepsi – Spadel Alliance

Belgium Pepsi – Spadel Alliance. By: Chae Torres, Kelley Regan, Mary Hayes, Brynn Curry. Introduction to Belgium. Kelley Regan. Introduction. Belgium A small country in Western Europe Capital: Brussels Belgium’s Borders France Germany The Netherlands The North Sea Area

parley
Télécharger la présentation

Belgium Pepsi – Spadel Alliance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. BelgiumPepsi – Spadel Alliance By: Chae Torres, Kelley Regan, Mary Hayes, Brynn Curry

  2. Introduction to Belgium Kelley Regan

  3. Introduction • Belgium • A small country in Western Europe • Capital: Brussels • Belgium’s Borders • France • Germany • The Netherlands • The North Sea • Area • 11,787 square miles • about the size of Maryland

  4. Introduction Cont’d • People • Population 10.4 million • 79.8 year life expectancy • 99% literacy rate • Labor force: 5.189 million • Religion • Approx. 75% Roman Catholic • Approx. 25% Protestant and other religions • Currency • Euro

  5. Economy • Economy • Developed ,depends heavily on world trade • Modern, open, and private-enterprise- based • Capitalizes on geographic location, and transport network • Industries • Engineering , metal products, motor vehicle assembly, processed food and beverages, chemicals • Agriculture • Sugar beets, fresh vegetables, fruits, grains, beef • Exports • Machinery and equipment, chemicals, diamonds, metals, and metal products

  6. Economy Cont’d • Natural resources • coal and natural gas • Imports • raw materials • Three quarters of trade is with other EU countries • 2012 • Reduced budget deficit to 3.3% of GDP, Goal of 3% • GDP (PPP) $427.2 billion; GDP (per capita PPP) $38,500 • Exports: $315.4 billion • Imports: $322 billion • External debt: $1.424 trillion • exchange rate: euros per dollar .7778

  7. Political and Legal System • Government system • Federal parliamentary democracy under a constitutional monarchy • October 4, 1830 provisional government declared independence from the Netherlands • July 21, 1831 King Leopold I ascended to the throne • Current King, Philippe, son of King Albert II, is Chief of Staff • Prime Minister, Elio Di Rupo is the Head of Government • Legal system • Civil law system basedon French Civil Code

  8. Political and Legal System Cont’d • Judges • Appointed for life by the monarch • 1993 • Constitution revised to create a federal state • Legislative powers • national, regional, and community levels • Giving political representation to French, Dutch and German cultures • Europe’s most costly political system • 6 governments, 57 ministers and state secretaries ,seven parliaments and a dozen provincial government • Increasing national debt may be due to this system

  9. Country Risk • Country Rating • A2, political and economic situation is good • Business environment: stable and efficient • Corporate default probability: low on average • Business Climate Rating • A1, business environment is very good • Corporate financial information: available and reliable • Debt collection: efficient • Institutional quality: very good • Intercompany transactions: run smoothly

  10. Technology • Brussels • Home to main EU institutions, key decision-making center and hotbed of economic activity • Many lobbyists, ranking it second ,behind Washington DC • Recent interests • Scientific research, space travel, medicine, biochemistry, pharmaceuticals and IT

  11. Human Rights • Promotion and protection of human rights • Priority at the national level and in relations with other countries • Priority subjects in Belgian human rights • Abolition of the death penalty • Protection of the rights of women • The fight against discrimination of all forms especiallysexual orientation • Department of Foreign Affairs in Brussels works withdefenders of human rights • Pioneering at international level to defend andadvance human rights

  12. US-Belgian Relations • US – Belgian diplomatic relations • Began in 1832 independence declared from the Netherlands • US provides no development assistance to Belgium • Goal • diversify and expand trade opportunities with non-EU countries • Many US firms have their European headquarters in Belgium • US companies have investments in • the chemical sector • automotive assembly • petroleum refinery • pharmaceutical sector • Property rights • Well protected by law, as is the right to acquire or sell interests in business enterprises

  13. Belgian Culture Mary Hayes

  14. Family and Home Life • Family • Priority • Stay in town • Close extended family • Close Community • Home Appearance • Sweep/Scrub sidewalks • Tidy homes • Tidy gardens • Good lawn care

  15. Home Socializing • Written invitations and RSVP • Flowers or quality chocolate • Liquor and wine

  16. Business Etiquette • Bureaucratic meetings, paperwork • Socialize before business • Subtlety vs. directness vs. confrontation • Appearance • Difference of men and women • Never remove your jacket

  17. Business Etiquette Cont’d • Meetings • Greeting • Appointments • July, August, Holidays • Language • Business Cards • Dutch and French

  18. Employment and Business • < 90 days: Declare arrival, U.S. passport accepted • > 90 days: Visa, electronic residence card • Eligible for residency in 3-7 years

  19. Doing Business • Easy Access • Central location is gateway for exports • Antwerp, Leige river port, Leige Airport,Brussels Airport- Keys to export • U.S. Embassy in Brussels • Support to American firms • Banks • Top 5 hold 80% of deposits

  20. Doing Business Cont’d • High urbanization, dense transportation • 3/4th of trade is with EU • U.S. ranked 5th in trade with Belgium • Corporate taxes 33% • Innovation, quality, competitive pricing

  21. Belgians as Negotiators Brynn Curry

  22. Culturally Accepting • Foreign business experienced • Culturally open-minded • Two cultures • Flanders (Flemings) • Wallonia (Walloons) • Avoid discussing differences

  23. Interpersonal Relationships • Build lasting, trusting relationships • Respect: Education and achievement • Gifting is rare • Invites to home, consider flowers

  24. Communication • Flemings and Walloons dislike being addressed in others language • Use English • Ask for language preference • Tone, emotion, and personal space similar to U.S.

  25. Meetings • Schedule well in advance • Send agenda proposal • They may add items • Allows information gathering time • Follow agenda • Be punctual

  26. Overall Business Atmosphere • Easiest to stay formal • Similar to U.S. • DO NOTs • Use exaggerations • Use sarcasm • Use overly aggressive approach • Precise facts

  27. Joint Problem-Solving • Both sides create agreements • Cooperative • Open to compromise • Believe in Win-Win • Logical reasoning for disputes

  28. Pace of Negotiations • Long information gathering time • Belgians share some information • OK with asking for information(not about salaries) • Use list of objectives(Ensure an effective agenda)

  29. Final Decision Making • No haggling • Bargain for common-ground • Belgian pressure techniques • Opening with best offer • Serious final offers • Do not try to manipulate No haggling!

  30. Post-Meeting Document • Create document of meeting • Meeting details • Main points • Decisions made • Corrects misunderstandings • Complete this step before creating legal contracts

  31. US and Belgian Company Alliance Chae Torres

  32. Spadel Group • Family owned • Free of chemicals and does not undergo treatment • Beneficial health effects • Export to 6 of the 28 EU countries • 1925 introduced carbonated drinks • Just acquired Carola Water • Newest packaging is 100% recyclable • Sustaining health and the environment http://www.spadel.eu/images/header.jpg

  33. Packaging

  34. Packaging Cont’d http://www.levensmiddelenkrant.nl/uploads/foto/Spadel.jpg

  35. PepsiCo • Beverages and food industry • Expanding global market with large distribution • Global campaign “Live for now” • $13 million net revenues in Europe • Aquafina • Utilizes public water • HydRO-7 • Eco-Fina • 50% less plastic http://ecoki.com/wp-content/uploads/eco-fina.jpg

  36. Formalizing an Alliance • Joint venture agreement • Non equity • Continue the Spa Water product • PepsiCo resources willbe used to distribute • Contract on detailsand profits • Increase globalcompetitiveness

  37. Marketing Strategy • Spa Reine for nursery water • Safe for preparing formula • Free from pollutants • Low mineral contents ofnitrates and sodium • Continue European marketing • Customize American marketing for nursery water and ahigh-end pure water http://www.spadel.eu/images/biberonDessin01.jpg

  38. Organizational Structure • Staffing may need to increase • Organizational structure and culture are similar • Employee Representation Council • Both companies have awards for their business strategies http://www.docnews.fr/data/classes/actualite/actu_5199_vignette.jpg

  39. Future Possibilities • Including Spadel’s sodas and flavored waters • Including Wattwiller, Bruand Brecon-Carreg bottled waters http://popsop.com/wp-content/uploads/bru_03.jpg

  40. Questions? http://www.spadel.eu/magazines.html

More Related