Switzerland Country Analysis pt 4 - Assignment Example

? Switzerland Country Analysis pt 4 Lecturer: Introduction Swaziland is situated adjacent to major cities and is being consideredas a centre for international trade and business due to its strategic location (Oberson & Hull, 2011). Despite being a land lock country, the country has a competitive edge over other countries in the surrounding. According to a Global Competitive Report, 2012 Switzerland is among the most competitive countries in international trade. The country is made up of a strong federal political systems, infrastructure and judiciary system that makes more competitive that its counter parts. Additionally, the country consists of cities like Geneva and Zurich where, the headquarters for various international banks and financial institutions are situated (Global Competitive Report, 2012). In above connection, Switzerland participates in international trade in various ways. For instance, Switzerland contains approximate 2/3 of its international investments in Europe and the rest in the united state, Germany, Italy and France (Federal Department of Environment Transport, Energy & Communication, 2012). Therefore, this study will focus on Switzerland’s international strategy and organization. Additionally, the study will focus at developing and marketing products in Switzerland as well as managing international operations. Switzerland’s international strategy and organization Switzerland has been undergoing via a tremendous economic growth. However, Switzerland international business has been affected by political and economic activities (Ghauri, 2003). However, various firms in Switzerland come together to form collaborations such as; strategic alliances in order to overcome this challenges. Strategic alliances help towards ensuring effective participation in the international business (Ghauri, 2003). Additionally, strategic partnership and alliances ensures efficient flow of imports and exports (Ghauri, 2003).Additionally, Switzerland has well established international labor organization that is based in ‘Geneva. The organization helps in formulating policies and minimum employment’s requirements (Government of the Netherlands). Switzerland has also displayed exceptional performance in production of pharmaceutical product as well as establishment of value chain activities unlike its counterparts (Aswathappa, 2010). The country has well defined strategies that help towards value creation as well as poverty reduction (Ghauri, 2003). The federal government of Switzerland has well established Information Communication technology that enhances efficiency in communication process (Federal Department of Environment Transport, Energy & Communication, 2012). Additionally, Switzerland has formulated poverty reduction strategy. Those strategies aim at ensuring alleviation of poverty through harmonization of development activities across the country (Federal Department of Environment Transport, Energy & Communication, 2012). Initially, Switzerland was a centralized state made up of small independent states united by treaties (Kalin, 2000). The country was made up of twenty six cantons as well as communes who had an approximate figure of three hundreds before they decided to become decentralized under one federal government (Kalin, 2000). The country become decentralized in 1884 with an aim of establishing a common market that could allow free flow of goods and services between different state.Additionally, the old system of government was unable to solve disputes and relied heavily on Cantons (Kalin, 2000). Therefore, there was a great need to formulate a decentralized federal system of government that could help local governments at grass root levels in solving their problems (Kalin, 2000). Majority of the firms in Switzerland have functional and divisional structures as well as matrix organizational structures (Hoag & Cooper, 2006). Functional structures tend to allot task based on expertise that each department can perform better. On the contrary, divisional structures are based on products that organizations are offering (Hoag & Cooper, 2006). On the other hand, SBU organizational structure tends to integrate both functional and divisional structure so that they can work together as one unit (Hoag & Cooper, 2006). Developing and Marketing Products in Switzerland Switzerland employs standardization strategy in over 170 countries to market and sell its pharmaceutical products (Ahlstrom & Bruton, 2010). However, most the firms in Switzerland face tough decisions of deciding whether to utilize Standardization or adoptive strategies (Ahlstrom & Bruton, 2010). Standardization strategy involves applying the same marketing mix in all the countries when selling and marketing products. The standardization marketing mix of consist of the following element; products, place, promotion, price; people to mention just but a few (Ahlstrom & Bruton, 2010). On the other hand, adoption strategies involve employing different marketing strategies in different nations. This strategy is considered to be most expensive; however, some of the multinational firms in Switzerland still employ this strategy despite the cost because their benefit outweighs its disadvantages (Ahlstrom & Bruton, 2010). On 1st April 2007, Swiss government established a law governing advertisement using emails, telephone, fax and even social media under Swiss unfair competition Act 2007 (Data Protected Link laters, 2013). Zurich and Geneva are the major legal centers in Switzerland that ensures law and regulation on marketing have been upheld (Data Protected Link laters, 2013). The law has clearly stipulate rules and policies aimed at protecting consumers against deceptive advertisements, exploitation as well as ensuring goods and services produced are of high quality standards (Data Protected Link laters, 2013). In terms of culture, Switzerland has a multifaceted culture made up of different social groupings. The culture contains a blend of different languages. Swiss culture was adversely affected by Celt’s, Helvetiis and Pagan Remnants (Switzerland & Culture, 2013). According to Swiss culture, body language has a different meaning and therefore, one should be careful when using body language because it may signify a different thing (Switzerland & Culture, 2013). Switzerland has a reputable national image due its diverse culture and beautiful geographical setting making it more suitable for business and agriculture (Anholt, 2009). The Swiss flag act as an important symbol for National image. The flag contain a red square and a white cross inside the square (Anholt, 2009). This flag represent freedom, honor and fidelity.Additionally, Swiss government protect its national image by ensuring that there is no contamination of low quality products with its products (Anholt, 2009). Switzerland has taken measure of ensuring that Counterfeit goods and black markets have been eradicated from its economy. This aims at protecting its consumers against substandard commodities from the neighboring countries as well as illegal business emanating within and outside the country (Anholt, 2009). Managing International Operations in Switzerland Switzerland has been able to manage its international operation via various activities such as production. Though production has been experiencing numerous challenges because most of the areas are covered by mountains making production to be it quit difficult (Gru?nig & Morschett, 2012). However, despite the above challages, Swiss government has been able to come up with various production strategies. Among the strategies include: adoption of cattle farming in areas covered by mountains, combining both traditional and modern methods of production to make production more effective and efficient. Additionally, Swiss government has established policies aimed at facilitating production activities (Gru?nig & Morschett, 2012).Acquiring physical resources is another issue in Switzerland especially tractors and other farming machinery because most of those items have to be imported. Additionally, some specialized vendors such as seed companies provide seeds and advice to famers (Switzerland Business year book, 2012). Switzerland has got some key production concerns for instance; famers rely heavily on rain water in carry out farming activities (Switzerland Business year book, 2012). Additionally, land is acquired through certain laws and customs. Most of the area low land and are densely populated. Though, there is ample land in the mountain, it become difficult for famers to carry out farming activities due to transportation problems (Switzerland Business year book, 2012). In above connection, financing business operations in Switzerland is quite easy. This is because the country has a well establish financial system with an efficient capital markets and banking systems that provide loan facilities to different clients at a low interest rates (United Legal Network, 2012). Conclusion Based on the above analysis, it can be scrutinized that Swaziland has a multifaceted culture and a reputable national image. The country has managed to have a robust economy through application of different international business strategies in marketing and developing its product. Connectively, the country has managed to utilize both adoption and standardization strategies in marketing its product internationally. Conclusively, the country has a well established financial system that provides financial solutions to all forms of business. References Anholt, S. (2009). Places: Identity, image and reputation. Hound mills, Basingstoke: Palgrave Macmillan. Ahlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning. Aswathappa, K. (2010). International business. New Delhi: Tata McGraw Hill Education. Federal Department of Environment Transport, Energy & Communication (2012 March).”Strategy of the Federal Council for an Information Society in Switzerland”. Retrieved :< http, www.inforsociety.admin.sc>on 11th March 2013 Gru?nig, R., & Morschett, D. (2012). Developing international strategies: Going and being international for medium-sized companies. Dordrecht: Springer. Ghauri, P. N. (2003). International business negotiations. Amsterdam [u.a.: Pergamon. Global Competitive Report (2012). World Economic Forum. 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