Global Competitiveness Report and Switzerland Essay Sample
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Introduction of TOPIC
This Global Business Cultural Analysis will explain how Switzerland is a great place to start a business because of its import and export ratings. Research shows that Switzerland ratings are higher than any other European country. As you read this paper you will understand that running a business in Switzerland is very easy and can be done by many outsiders. The first question will explain how culture, religion, customs and tradition impact on making business decisions in Switzerland Business Operations (SBO). The next information will be to explore the advantages and disadvantages of foreign trades and investment in reference to (SBO). To run a business in the (SBO) you must know there culture, religion, and how they operate. Even though it is easy to run a business in the (SBO), there are some advantages and disadvantages that one must think about are before taking that step. This (GBCA) will also be show how Switzerland’s is compared to other countries on what they export and import. As a Christian I would also like to add my perspective in doing business in the (SBO). This paper explains the life style and the culture of the (SBO).
Keywords: Global Business Cultural Analysis, Switzerland business operations
Global Business Cultural Analysis: Switzerland
Numerous studies have been conduct on various facts that the (SBO) in Switzerland is one of the best place to do business. The (SBO) economy is highly mixed in the international economy, gaining on an open trade establishment for industrial products but with a protected agricultural sector. Switzerland is characterized by prosperity and stability Switzerland (2012). The benefit of the (SBO) allows a mindset that addresses the concerns of foreign investors and enterprises and their advisors looking to invest in a business or already invested. Switzerland has one of the highest per capital gross domestic products worldwide. Switzerland has always been a very stable country with booming rates. (SBO) is a very charming business partner.Switzerland has four official languages which are German, French, Italian and Romansch. About 1% of the population in the eastern part of the country speaks Romansch. Swiss/ German is an accent spoken in all the German-speaking division. Communication style depends greatly on the person but the Swiss are normally polite and direct in their communication. When Germans speak their communication is very formal.
The Swiss nationality does not care if they are your friend or not, they will still do business with you. They are only concerned with what you can bring to the table. Domestic economy and fiscal policy, regulations, infrastructure, the education of the workforce, and many others are the factors that affect the environment in which (SBO) operate (Pasquali & Aridas 2012). This is only for certain nations. This is the show the country ability to show the quality of life in Switzerland. For the last four years Switzerland has been on top. All of these aspects shows that (SBO) is doing something well. (SBO) will always continue to look to the future. By examining the future of a nation they will be able to determine of their investments. Switzerland is positively ranked as the world’s 6th-freest economy, according to the Heritage Foundation’s 2011 Index of Economic Freedom. This is a measure of the freedoms enjoyed in countries determined by monetary, financial, business, trade, labour markets liberties and investment. Switzerland is the only nation is the world that uses direct democracy (International Coalition for Religious Freedom, 2013). Freedom of religion is guaranteed by Switzerland’s constitution. Switzerland Cultural Analysis
Switzerland culture, religion, customs and tradition make a big impact on making business decisions. According to the World Bank’s 2011 Doing Business Survey, Switzerland is the world’s 27th-easiest and best place to do business. Meier-Dallach & Nef (1987), states that the Switzerland is so unique due to the decentralization. Social divisions are the cause of this decentralization. This also explains why there are industrial cultures. This defines its culture and the people of that region. Switzerland is not solid as of today. (SBO) is known for its non-concurring patterns. The elements of all these cultures are rooted in the different memories of history that coexist. They also exercise varying degrees of influence on the orientations and behavior of people (Meier-Dallach & Nef, 1987). This is divided and both are combined. Switzerland culture vested in the differences amongst citizens in a nation. In (SBO) they developing Swiss regions these divisions are welcomed and lead to clique type groups. Switzerland religious Beliefs are Catholicism and Protestantism. Catholics were outnumbered for many years. The Constitution calls for division between the church and state.
However, in 1990 there were more Catholics than Protestants. In the Muslim community they are representing the largest religious minority. The constitutional rights held by the Christian fellow citizens were received by the Swiss Jews in 1866. The most advantageous business locations in Europe are in Switzerland. Only the highest managers in authority make final decisions no matter if others disagree with it. Doing Business in Switzerland (2012), says that Swiss labor laws is normally characterized by its flexibility. Swiss business culture follows the chain of command in every aspect. Many managers who holds a senior position will come across as bashful in there exist very clear lines of authority that are not crossed. This can allow (SBO) workforce to be able to handle any and every situation that comes about. This will allow many Switzerland businesses to welcome commercial shifts in a more comfortable manner. Switzerland has a strong and stable economy with low taxes, low inflation and unemployment; a highly qualified workforce, and freedom of trade (Lhabitant 2003).Germans display great submission to people in authority.
It is critical that they understand the level relative to their own. Germans do not have an open door policy. Many Germans mostly work with the door of their office closed. Meetings are normally formal with (SBO). To maintain a record of decisions one must expect a great deal of written conversation (Travisa 2013). Initial meetings are used to get to know each (SBO) worker. There is a very (SBO) strict order to follow when entering a room in a business meeting. The eldest or highest ranking person enters the room first in all (SBO) meeting. Men enter before women. The Swiss are known for getting the best promising deal in agreements without ever coming across aggressive or ambitious. Germans are very organizing. They will refuse to rush any business decision until they have perfectly inspected all the facts and information and reported these to whoever the decision maker is. Advantages and Disadvantages of Foreign Trades
There are many advantages and disadvantages of foreign trades and investment in reference to (SBO). 99% literacy is in Switzerland. Many are pulling funds out while they still can. In Switzerland a strong independent nation comes with a solid education. Business owners can be more informed on how to proceed in business. All of the transactions will be beneficial to their growth. They are welled informed. They also know what is going on with everyone around the globe. Many times globalization involves the trading of goods and therefore, getting educated on trade laws can be very beneficial to a global manager. A nation’s trade policies and procedures can either have a positive or negative impact on investments and other business transactions.
It also helps some nations to better compete with others. According to the (Lhabitant 2007), “the sovereign debt crisis currently unfolding in neighboring euro-zone countries pose a significant risk to Switzerland’s financial stability. They are also driving up the demand for the Swiss franc. This is because many investors are seeking a safe haven currency.” due to the European debt crisis (SBO) changed the way they do business. (SBO) is very cautious. Investors believe that a range and comfortable policy is the safest route in business. Switzerland’s commercial and trade relations with the EU are primarily governed through different of mutual agreements. Switzerland has cho
sen to agree to take on different aspects of EU legislation in exchange for promoting the EU’s
An advantage of Switzerland’s foreign trades and investment is that there is a special tax rates offered in different division for joint companies. Switzerland foreign trades and investment is attractive for corporations wishing to set up universal headquarters in their country. Switzerland foreign trades and investment requires a small amount of one leader. For 150 years the Swiss legal system has guaranteed security and consistency. They also guaranteed a very comparatively high level of entrepreneurial liberty. Corporate leaders are not acceptable. Switzerland foreign trades and investment allows business owners to gain access to a network of double taxation arrangement. According to the Global Competitiveness Report 2011-2012 Switzerland ranks first as the most competitive country in the world, and this arrange by the World Economic Forum. Bettschart & Tscahnz (2008), states that the stock company is the main corporate entities used to conduct business in Switzerland. Limited Liability Company overhauled the most common form of companies. Management is concerned and has a vested amount of flexibility as far as business.
To designate specific officers to supervise the management of the firm they must allow the board to manage the company (Bettschart & Tschanz, 2008). Company directors are non-executive. 90% of the members are recommended that the board and the executives should be entities (Bettschart & Tschanz, 2008). Corruption will be limited due to this. Because of this, this make Switzerland homes have a very low corruption rate. This is to ensure that it becomes more effective oversight and checks on all of the executives. This can also be beneficial to separate the two governing bodies. This will allow for outside opinions. Marti & Desax (2009), states that exceptionally attractive business located in Switzerland has a long tradition.
Mixture of a wide variety of factors is the recipe for its success Switzerland success. Marit & Desax (2009) believe, soft factors, play a much more significant role in fostering business. History is significant for investors when deciding where to invest. If have an unstable pass and is very they feel uncertain about you, they will not do business with you. Switzerland has a long-standing history of stability. This makes them more reputable to a location. The corporate tax rate in (SBO) is very low compared to the other nations. Marti & Desax (2009), Switzerland has a long tradition. It is known to be an exceptionally attractive business location. History is significant for investors when deciding where to invest. This is why many investors want to invest.
Switzerland Disadvantages of Running a Business
A disadvantage of (SBO) foreign trades and investment is that a Swiss resident company is accountable to pay federal corporate income tax. There disadvantage is also within the municipal corporate tax and municipal net worth tax. A Switzerland’s foreign trades and invest requires a minimum of two shareholders. (SBO) foreign trades and investment is a part of the European Union (EU) or European Free Trade Area (EFTA) (Healy Consultants 2006). A long-standing nation that has history of stability is a more reputable location to do business. They rather do this instead of taking a chance on an emerging nation with a very unstable past and uncertain future. Switzerland corporate tax rate is very low compared to the other nations. However, Marit & Desax (2009) believe, soft factors, play a much more significant role in fostering business. (SBO) is an ideal example of a successful multicultural and multilingual society living in a harmonized way. Switzerland has among the strictest laws in Europe against money laundering, insider trading and organized crime. Nevertheless, administrative offences in other countries-such as fiscal evasion are not considered a crime in Switzerland. Therefore, the banking secrecy laws protect Swiss bank accounts from foreign fiscal inquiries (Lhabitant 2007). (SBO) is a worldwide leader of innovation, surprisingly far ahead of Canada, France, or even the United States. Switzerland’s main trading partner is the EU.
Why Switzerland imports and exports makes the a great place to run a Business (SBO) export and import do not compare to any other country. Switzerland imports out number their own exports numbers. The country has far been a very stable country with predictable rates and stable economic policies. Switzerland is located Europe. Switzerland is a very small country. Switzerland is very close economically with the EU. Swiss merchandise exports to the EU are rich on a few categories, particularly chemicals and medicinal products, machinery, instruments and watches. During the 1990s the openness of the economy increased substantially in Switzerland. Also the value of exports of goods and services as a shared of GDP is one of the highest in the world. Particularly when taking into account that Swiss data are not boosted much by imports for re-export (EIU ViewsWire 2008).
The high degree of openness of the economy also means that (SBO) is strongly affected by developments in the world economy. With poor productivity growth the Swiss economy has shown a low dynamism, this has recently improved in years owing to government reforms (EIU ViewsWire 2008). The Swiss franc is very important. Especially when determining its significance on an international level. Also when examination Switzerland currency. According to Groux & Jesswein (2011), currently the Swiss franc is currently the sixth most highly traded currency in the world. They are accountable for 6.4 percent of daily transactions. Switzerland is known for being a safe haven as far as foreign investment goes (Groux & Jesswein, 2011). (SBO) direct importance banking plays on the global scale. Many major investors have accounts with Switzerland. With the low inflation rate and stable economic outlook, it is clear why investors find it the best. The Operating Environment (2009), “found as at November 2009 the Swiss economy is in one of the deepest recessions for many years. It has been shallower more than many other OECD countries.”
Regardless the many failures of banks in neighboring nations, (SBO) remained on top. Private consumption remained steady. This will contribute to why exports were not expected to decline as much as imports in 2009 (The Operating Environment 2009). Many businesses had to cut-back on spending and reduce costs which in turn reduced output. Switzerland came out of the recession as the lead competitive nation in the world despite the bleak outlook. Switzerland is a member of the European Free Trade Association. Switzerland is a member of the European Free Trade Association. Switzerland is a small market economy at the center of Europe with a population of around 7m people. On the commercial side, the main challenges are related to limiting the impact on public finances of slower medium-term growth and rising welfare spending as the population ages. Beneficial for Switzerland in reducing inventory anticipated cut-back in demand the author also explained how the government is currently running a simple budget default and the debt ratio is increasing (Switzerland 2006). Proposals to contain deficits in social programmers are being discussed as part of measures to set the public finances on a more believable footing.
How is Switzerland culture and communication different from the United States? The Switzerland culture and communication is not that much different from the United States? The United States has most technologically and the largest powerful economy in the world. They are private individuals. Their business firms make most of the decisions. And there federal and state governments buy needed goods and services from a private marketplace (CIA World Factbook 2012). CIA World Factbook found that the United States is highly dependent on global trade. This could make the United States an important force in the global business world. The United States first established a clever and understanding relationship with Switzerland in 1853. This will be following the formation of a cooperative Swiss state. Switzerland is a democratic country. (SBO) democratic is too subscribed to the fundamental ideals with which the United States also is identified. “Switzerland has long been considered to be a wealthy economy” (Camlek, 2012, p. 25 Switzerland essentially strong economy is politically stable with this country. Switzerland and the United States values are very worldwide. Communication between two cultures can be awkward if professionals do not conduct proper research it can lead to misinterpretation in communication which can be very costly” to organizations (Satterlee, 2009, p. 40). And it also takes these factors into account.
Switzerland is currently the United States’ 21st largest trading partner in goods, reflecting the countries’ long history of cooperation both bilaterally and within the WTO (Zhan 2005). The United States only chooses to do business with certain people, especially when trying to get into the overseas markets. They have to make sure that all business and transactions is stable. As (SBO) remains economic top on them any other country. There are many similarities that can be drawn. Swiss people should be accustomed to diversity just like the Americans. All these play into how corporations do business. This is especially on a global scale. According to Cann (2012), “the top overall rankings in The Global Competitiveness Report 2012-2013 were Switzerland, for the fourth consecutive year.” This is to show how Switzerland remains poise. And it shows how they out ranked the United States. Cann (2012), the United States position has dropped every year. They are currently in 7th place globalization global competitiveness.
This for the (SBO) to have a great economic growth than any other nation. The United States is declining competitiveness. Global scale does not do well for any nation that is not doing well. Switzerland commercial banking report (2012) states that, the “Strength, weaknesses, opportunities, and threats shows the firms operating in Switzerland. They benefit from a sound institutional environment. Benefit from very stable political conditions. Also benefit from a very and well-kept excellent infrastructure. Last but not least they benefit from low government interference and the country’s openness to trade and capital.” Switzerland moves up the scale when they are being monitored on everything that they do. Many multinational corporations find this attractive when looking to access the European market (Switzerland Commercial Bank 2012). “Switzerland has long been considered to be a wealthy economy” (Camlek, 2012). The anxiety of government spending is decreased in Switzerland. According to OECD, the public sector consumes only 33.1 percent of economic output in Switzerland, compared to 41.1 percent of GDP in the United States (Mitchell 2013).
Switzerland has a strong human rights approach that protects commercial privacy. Switzerland is very genuine. (SBO) government is responsible for only about one-third of government national spending. The United States used to be like that. At least half of the united stated government investments are coming from Washington. Because they believe that people have a right to control private information about their personal happenings. Switzerland does offer an excellent tariff policy (Switzerland Commercial Banking 2012). Despite different languages Switzerland community is very positive. Even the community who has different religions also keep thing positive and get along very well. A brawl and animosity with a system of racial spoils is caused by the government of the United States. Christian Perspective
For Christians, because their entire life is meant to both glorify God and reflect Jesus Christ, their business should be conducted with unconditional integrity. This means that in every part, the business is genuine, responsible, truthful, and that the company, no matter the size, offers unchanging quality products or services. According to 2 Timothy 2:5 of the Bible, “if a man strives for masteries, yet is he not crowned, except he strive lawfully.” Christian business leaders and managers should always conduct themselves in a Christ like manner at all times when conducting business. Conclusion
In conclusion, the performance of the business in (SBO) should add value to the quality of life, and should improve and enhance the community. Switzerland is a great place for business and one of the top import and export countries in Europe.
Bettschart, S. (2008). Corporate Governance in Switzerland. OECD Observer, (267), 80-81. Retrieved June 19, 2013 from: Business Source Complete Database
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