• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Make investors in the Retail and Consumer goods sector aware of business development opportunities within Eastern Europe, and more generally, to a 343 million consumer market extending from Russia to Albania, from Estonia to the Czech Republic.

Extracts from this document...


The objective of the following Business Report is to make investors in the Retail and Consumer goods sector aware of business development opportunities within Eastern Europe, and more generally, to a 343 million consumer market extending from Russia to Albania, from Estonia to the Czech Republic. Lucy Hewitt EASTERN EUROPE: A region defined geographically as that part of Europe covering the eastern part of the continent. Generally, this means that it lies between the Ural and Caucasus Mountains and the western border of Russia. 1 For the purpose of this report Eastern Europe will include: * Belarus * Estonia * Latvia * Lithuania * Russia * Ukraine * Moldova * Bosnia - Herzegovina * Bulgaria * Croatia * Macedonia * Romania * Czech Republic * Hungary * Poland * Slovakia * Slovenia A Brief History2 In late 1989 the countries of Eastern Europe broke loose from the Soviet Union, threw off communism, and began to construct democratic institutions and market-oriented economies. This great transformation is founded on the idea that adopting the institutions and practices, that have proven successful in Western Europe since World War II, can best advance freedom and prosperity. ...read more.


Russia is home to 143 million people and is highly urbanised (69.5%), Table 3: Unemployment Figures for Russia (millions) 1998 1999 2000 2001 2002 8.9 9.0 7.0 6.4 5.7 however there has been a decline in birth rate with the majority of the population being aged 15+. Nevertheless, the economy is still highly sensitive to instability and price fluctuations within the world raw materials market. The driver behind economic growth has been the oil industry. Due to this economic growth, Russia has experienced a significant consumption boom (30% growth since 2003), which can be attributed to the recovery of real incomes and the reduction of unemployment rates. Furthermore, Russia is now looking at a booming consumer sector with personal finance becoming more readily available in the form of Credit and Loans. Russia's low cost, highly skilled labour force is highly attractive to investors. However, poor education has meant there are significant skill shortages at industry and regional levels: there is an underlying reliance on an unskilled workforce to fill low paying jobs, however, in regions the labour market is more comparable to developing countries. In contrast to Russia, Poland's macro economic environment has known turbulent and violent times. ...read more.


The following table portrays just some of the major barriers to entry: Table 6: Barriers to Entry Russia Poland * Regulatory constraints are strong but changing * Some regulation constraints * Unreliable suppliers and large delivery expenses * Unclear legal status of high street properties in prime location * Extremely high import tariffs (20%) * High corporate income tax (27%) * Land code means investors may only purchase land under a tendering process which is restricted and limited * Purchase property requires permission from the minister of internal affairs and administration * Restricted opening hours - employees working non standard working hours must receive added compensation * Since joining the EU there is a 10 year transition period thus limiting access * Heavy vertical integrations * Tight zoning laws - restriction on locations for Hypermarkets * Heavy geographic segmentation * There is an act on counteracting unfair competition * Intellectual property rights and enforcements * Waste law - environment tax on those that do not attain regulatory recovery or recycling rate for that given year * Technical barriers to trade * Weighted average tariff rate is 7.4% (2000) which is very high * Problematic customers valuation * To defend their market and domestic retailers, Poland are extremely proficient at employing temporary import tariffs, quotas and antidumping duties Source: GMID, www.econlib.org, www.atkearney.com, www.cidiharvard.edu,www,bbc,co. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Retailing In India - A Government Policy Perspective

    The fast-growing Indian vendors that provide back-office services to foreign companies got a start only after multinationals pioneered this approach-and trained a critical mass of local employees. (The CEO of Wipro Spectramind, for instance, started out at GE Capital, and the CEO of Daksh came from Motorola.)

  2. Discuss the view that the free market economy encourages negative externalities and thus the ...

    Not all negative externalities need to be corrected, according to Coase who argued that public policy should aim to maximize the value of output, which may or may not involve the "internalization" of external costs. Taking the example of a factory polluting a river and killing the fish, Coase argues

  1. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    Thus, dedicated investors had taken underweight positions in risky credits (e.g. Brazil) and overweight positions on relatively immune credits. A new, reasonably large issuance was made by emerging markets in May 2002, following an 11 week drought from the Russian crisis.

  2. Case Study: The Home Depot

    -How important are the current strategic managers to the success of Home Depot? The first question will be answered with the EFAS (External Factor Analysis Summary), the second will be answered with the IFAS (Internal Factor Analysis Summary) and the answer to the third question will contain a summary

  1. Causes of the Great Depression

    In 1929 the world's most prosperous nation was the United States. But despite the confidence in the United States and the apparent economic well-being in other countries, the world economy was in an unhealthy state. One by one, the pillars of the prewar economic system-multilateral trade, the gold standard, and the interchangeability of currencies-were crumbling.

  2. Use game theory to analyze an oligopoly competition of two great rivals, Wal-Mart and ...

    It is obvious that from 2001 Wal-Mart boosts the speed of store opening in China. The number of new stores opened within the following three years was double that of the previous five years. Besides that, Carrefour, which had just stepped out the reform limitation, was even more too impatient to wait for expansion.

  1. Industrial revolution in Russia

    Foreign capital was absolutely essential to Russian industry. It constituted at least 20% of all capital invested before the 1890s and then began to expand even further. France, Germany and even Britain developed wide interests in Russian Industry. West European activities spread across Russia's industrial territory.

  2. Free essay

    Do high house prices in Trafford deter key public sector workers from seeking a ...

    * Police officers and community support officers * Social workers * Local authority planners * Firefighters and other uniformed staff below principal level in Fire and Rescue Services * Connexions personal advisors * Qualified environmental health officers/practitioners who work in a local authority, government agency, NHS or other public sector

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work