SM0269 Assignment AlexandrosNathanailidis 8 January 2015
Assessing Porter’s Framework for
National Advantage: The case of
Tunisian wine industry
ASSESED COURSEWORK FOR “GLOBAL AND INTERNATIONAL
BUSINESS CONTEXT
MODULE CODE: SM0269
SEMINAR TUTOR: DR GREGORY LUDWIG
STUDENT NUMBER: 1 3 0 0 2 1 4 8
I certify that this assignment is the result of my own work and does not exceed the word count noted below.
Number of words: 3862 Words (3600 +10% allowance)
(Excluding title page, content page, abbreviations page, references page, and appendices)
8 TH JANUARY 2015
Student Number: 13002148
Table of content:
1) Introduction…………………………………………………………………….p.3
PART 1
2) Tunisia and Tunisian wine industry background……………………….pp.3-7
2.1 Country overview (For definitions Appendix 2)
2.2 Wine market background (For definitions Appendix 2)
3) Analysis of the overall competitiveness and investment attractiveness of the
Tunisian wine industry………………………………………….………...…pp.7-13
3.1 Factors conditions
3.2 Demand conditions
3.3 Related and supporting industries
3.4 Firm Strategy, Structure and Rivalry
3.5 The role of government
3.6 The role of chance
PART 2
4) Contemporary management issues………………………………………..pp13-15
4.1 Expatriation of parent-country nationals (Appendix 6 for definitions)
4.2 Managing the Cultural Diversity (Appendix 7 for definitions)
PART 3
5) Market entry strategy suggestions…………………………………………p.15
6) Conclusion……………………………………………………………………...p.16
7) List of References……………………………………………………………..pp.16-21
8) Appendices…………………………………………………………………..…pp.22-27
Appendix 1: Porter’s National Diamond Literature Background
Appendix 2: Several definitions for the section 2.1 and 2.2
Appendix 3: Tunisian PEST Macro-Environmental Analysis
Appendix 4: IHS Economics and Country Risk Perspectives
Appendix 5: Porter’s Five Forces Model Applied to the Tunisian wine market
Appendix 6: Definitions for section 4.1
Appendix 7: Definitions for section 4.2
Appendix 8: Entry strategy modes advantages and disadvantages
1
Student Number: 13002148
List of
National Advantage: The case of
Tunisian wine industry
ASSESED COURSEWORK FOR “GLOBAL AND INTERNATIONAL
BUSINESS CONTEXT
MODULE CODE: SM0269
SEMINAR TUTOR: DR GREGORY LUDWIG
STUDENT NUMBER: 1 3 0 0 2 1 4 8
I certify that this assignment is the result of my own work and does not exceed the word count noted below.
Number of words: 3862 Words (3600 +10% allowance)
(Excluding title page, content page, abbreviations page, references page, and appendices)
8 TH JANUARY 2015
Student Number: 13002148
Table of content:
1) Introduction…………………………………………………………………….p.3
PART 1
2) Tunisia and Tunisian wine industry background……………………….pp.3-7
2.1 Country overview (For definitions Appendix 2)
2.2 Wine market background (For definitions Appendix 2)
3) Analysis of the overall competitiveness and investment attractiveness of the
Tunisian wine industry………………………………………….………...…pp.7-13
3.1 Factors conditions
3.2 Demand conditions
3.3 Related and supporting industries
3.4 Firm Strategy, Structure and Rivalry
3.5 The role of government
3.6 The role of chance
PART 2
4) Contemporary management issues………………………………………..pp13-15
4.1 Expatriation of parent-country nationals (Appendix 6 for definitions)
4.2 Managing the Cultural Diversity (Appendix 7 for definitions)
PART 3
5) Market entry strategy suggestions…………………………………………p.15
6) Conclusion……………………………………………………………………...p.16
7) List of References……………………………………………………………..pp.16-21
8) Appendices…………………………………………………………………..…pp.22-27
Appendix 1: Porter’s National Diamond Literature Background
Appendix 2: Several definitions for the section 2.1 and 2.2
Appendix 3: Tunisian PEST Macro-Environmental Analysis
Appendix 4: IHS Economics and Country Risk Perspectives
Appendix 5: Porter’s Five Forces Model Applied to the Tunisian wine market
Appendix 6: Definitions for section 4.1
Appendix 7: Definitions for section 4.2
Appendix 8: Entry strategy modes advantages and disadvantages
1
Student Number: 13002148
List of
References: Tunisia is the geographically smallest country in North Africa; however, with a population of up to 11.2 million (Coleman, 2014; World Bank, 2014a), is more populous than its neighbour Libya and accounts for a third of population of Algeria and Morocco (IHS, 2014). Due to the immediate access to the Mediterranean Sea (Figure 1), it has close trade relationships with Europe (Coleman, 2014), and according to the European Commission (2013), and IHS (2014) estimates, about 66% (USD 12.1 billion) of Tunisian goods exports, in 2013, were dedicated to the European Union. Before the end of 2010, Tunisia was regarded as the most politically and economically stable country in the MENA region (Coleman, 2014) public dissatisfaction particularly over the high unemployment rates, social inequality and regional development (AfDB, 2014) grew, and led to protests, which turned in what it is called now the ‘Jasmine Revolution’ (Euromonitor International, 2014; Department of State, 2014). Libraries. (2014). PerryCastañeda Library Map Collection: Tunisia Maps. The culmination of this revolution (January 2011), was the overthrow of the President Ben Ali, formation of a new unity government, and the beginning of political reforms (Day, 2011; Coleman, 2014). Before the revolution, Tunisia had the most hospitable business environment in Maghreb region (Euromonitor International, 2009) trust of foreign investors (Department of State, 2014) and as the World Bank (2014b) and IMF (2013) claim, the FDI inflows dropped by 24.12% in the year 2011 (Table1) Tunisian governmental attempts to retrieve investors and their capital were fruitful (Euromonitor International, 2014a).As a result, the FDI inflows in 2014 accounted for USD