Introduction: Country Name
Rationale
Greece was selected due to its rich history and significance to the modern world as a first place to embrace reason and philosophy as well as develop very initial versions of democracy.
Location and Geography
- Southern Europe.
- The Mediterranean Sea, Ionian Sea, and the Aegean Sea (CIA, 2021).
- Albania, Fyrom, Bulgaria, and Turkey (CIA, 2021).
- Dry and hot summers, mild and wet winters, and temperate climate (CIA, 2021).
Sociocultural Environment
Country Composition
- Literacy Rate – 97.7%, male – 98.5%, female – 96.9% (CIA, 2021).
- Rate of Urbanization – 0.11% annual rate of change (CIA, 2021).
- Heavily Populated Cities – Athens (3,153M) and Thessaloniki (813K).
- Major Religions – Greek Orthodox 81-90% (CIA, 2021).
- Educational Data – 20 years (from primary to tertiary education).
- Age Structure:
- 0-14 years: 14.53%,
- 15-24 years: 10.34%,
- 25-54 years: 39.6%,
- 55-64 years: 13.1%,
- 65 years and over: 22.43% (CIA, 2021).
Values and Communication
- Hofstede dimensions of culture describe a different aspects of cultural features, which include indulgence vs. restraint, long-term vs. short-term, masculinity vs. femininity, tolerance of uncertainty, individualism vs. collectivism, and power distance (Hofstede Insights, 2021).
- Scores of indulgence vs. restraint, long-term vs. short-term, masculinity vs. femininity, tolerance of uncertainty, individualism vs. collectivism, and power distance for Greece and United States are 60-40, 35-91, 57-62, 100-46, 45-26, and 50-68, respectively (Hofstede Insights, 2021).
- Languages – Greek (99%) official (CIA, 2021).
- Non-verbal communication – restrained and limited use (CG, 2021).
Business Etiquette
- Appointments made 1-2 weeks prior the meeting, lunch time is between 13.00-15.00, materials should be in both official and English, interruptions are acceptable and normal, and agenda deviations are normalcy (CG, 2021).
Sociocultural Environment: Observation Deck
Business Observations
- Marketing – marketing needs to be done in Greek as well as English. Appealing to the local cultural intricacies is important since Greeks have strong sense of national identity.
- Employment and Labor Force – labor is not expensive compared to other European nations, and Greeks value their jobs due to experiences with high degree of unemployment in the past. The unemployment rate – 6.3% (World Development Indicators, n.d.).
- Product Demand – the demand is highest for the service sector, especially tourism and sightseeing industries.
- Managerial Approach – authoritative form of management is appropriate since Greeks extremely competitive and respectful of an authority figure. The lack of respectful relations can hinder employees’ performance.
- Rules to Business Etiquette – more relaxed compared to other nations, such as Germany or United States, and less focused on a selected agenda. Meetings and appointments should attempt to solve several topics in one sitting.
Political-Legal Environment
Government and Ideologies
- Government Type – parliamentary republic (CIA, 2021).
- Political Leaders and their ideologies – Katerina Sakellaropoulou – conservative New Democracy party (Labropoulou, 2020).
- Political Pressure Groups – Communist Party of Greece or KKE, Democratic Left or DIMAR, Union of Centrists or EK, and Anticapitalist Left Cooperation for the Overthrow (CIA, 2021).
- Recent Changes in Governing Rule – Katerina Sakellaropoulou became first female president (Labropoulou, 2020).
Corruption
- Corruption Perception Index – 50/100 (Transparency International, 2021).
- Enforcement – Greek Penal Code or GPC.
- Bribery measure – 5-15 years in prison or up to €100000 (Transparency International, 2021).
Trade Regulations and Legal Considerations
The minimum wage must be set in accordance with NGCLA terms, Law 4093/2012, issued on November 12, 2012) (“Work and wages,” 2021).
Vat (sales tax): 24% (“Duty Calculator,” 2015).
No sanctions are imposed on Greece by the United States.
In 2015 The Greek Parliament passed a new law to avoided triangle trade (International Trade Administration U.S. Department of Commerce, 2021).
According to Article 21 of the new law, a company which imports goods into Greece from another country with a lower tax rate must prepay the 26% withholding tax (International Trade Administration U.S. Department of Commerce, 2021).
Greece imposes an 8% to 18% value-added tax and special consumption taxes on alcohol and tobacco up to 150% (International Trade Administration U.S. Department of Commerce, 2021).
Greek exports to EU countries are tariff-free. Imports from non-EU countries are subject to the EU’s common customs tariff (International Trade Administration U.S. Department of Commerce, 2021).
Political-Legal Environment: Observation Deck
Business Observations
- Safety Concerns – although Greece is part of the European Union it is not strong and resilient.
- Additional Costs – the primary costs are centered around high value added taxes.
- Specific Industry Barriers – the nation is mainly reliant on a service sector, specifically tourism, which means higher competition. However, other industries are not as lucrative.
- High Corruption Rates – corruption in Greece is present, but not as severe as in other nations, which means that businesses can be run with some adjustments in strategies.
- Risky Political Ideologies In Government – Greece is a hub for a wider range of political views than the United States, since it has communists, far left, far right, centrists, and traditional democrats. Although unlikely, there is still a chance that extreme parties could become the leaders under crises conditions.
Economic-Infrastructural Environment
Economic Measures
Trade
Major trading partners – Italy, Germany, Turkey, Cyprus, Bulgaria, Germany, Iraq, Italy, Russian Federation, and China (WTO, 2021).
Greece RTAs include Albania, Algeria, Andorra, Armenia, Bosnia and Herzegovina, Cameroon, Canada, CARIFORUM States, Central America, Chile, Colombia and Peru, CĂ´te d’Ivoire, Eastern and Southern Africa States, Egypt, Faroe Islands, Georgia, Ghana, Iceland, Israel, Japan, Jordan, Republic of Korea, Lebanon, Mexico, Moldova, Republic of, Montenegro, Morocco, North Macedonia, Norway, Overseas Countries and Territories (OCT), Pacific States, Palestine, SADC, San Marino, Serbia, Singapore, South Africa, Switzerland Liechtenstein, Syria, Tunisia, Turkey, Ukraine, United Kingdom, Viet Nam, Treaty, European Economic Area (EEA) (WTO, 2021).
Major Ports
Economic-Infrastructural Environment: Observation Deck
Business Observations
- Ease of Distribution – well-developed infrastructure – a strategic transport hub.
- Economic Growth – the economic growth of Greece – a major risk factor.
- Telecommunication Barriers – not significant and unlikely to cause problems.
- These factors are important since all businesses are influenced by these three factor substantially.
Ease of Distribution – Greece has a well-developed infrastructure for distribution of goods and services supported by the fact that the nation is a strategic transport hub that connects three continents – Europe, Asia, and Africa. OECD Economic Surveys (2020) notes that Greece is an attractive source for investment in the transport trade and maritime industry, as cargo flows are constantly increasing every year.
Economic Growth – the economic growth of Greece can be categorized as a major risk factor since it is not stable and sustainable due to the lack of resilience to crises events. The pandemic increased this risk factor by a significant margin, which means that business initiatives will also be at risk under national financial challenges.
Telecommunication Barriers – Greece’s telecommunication barriers are not significant and unlikely to cause problems since telecommunications are run by three major organizations, which are Cosmote, Vodafone, and WIND. Although the service quality is not the most outstanding compared to other EU members, it is sufficient to run businesses.
These factors are important since all businesses are influenced by these three factor substantially.
Final Recommendations
Market Entry Strategies
Greece – a risky option for international business – economic and political factors.
Plausible modes of entry – exporting, joint venture, and foreign direct investment or FDI.
Cultural Awareness
Marketing – appeal to strong national identity of the local population.
Labor force – cheap by European standards and people value their jobs.
Business interactions are relaxed, but reliant on authority and hierarchal respect.
Market Entry Strategies
Greece can be considered as a risky option for international business entry due to economic and political factors. A business, which considers entering Greek market, should either be a tourism or sea transportation company. Such a business should have reserve capital in order to be able to survive potential crises periods. Only Athens and Thessaloniki should be considered as possible regions due to their developed infrastructure.
Plausible modes of entry – exporting, joint venture, and foreign direct investment or FDI. Exporting – specific industries can be dominated with sufficient resources utilizing the weakened state of local businesses after the pandemic. Joint venture – prospective companies can be used to create a joint ventures since they need resources to jump start their operations. FDI – Greek economy needs foreign investment in general, which also applies to local companies.
Cultural Awareness
Marketing should appeal to strong national identity of the local population. Labor force is cheap by European standards and people value their jobs. Business interactions are relaxed, but reliant on authority and hierarchal respect.
References
Airports in Greece. (n.d.). FlightConnections. Web.
ATHINA. (n.d.) UrbanRail.Net. Web.
(2021). Greece – Culture, etiquette and business practices. Commisceo Global. Web.
CIA. (2021). Greece. Web.
Duty calculator. (2015). Web.
Global Rankings 2018. The World Bank Group. Web.
Hofstede Insights. (2021). Compare countries. Hofstede Insights. Web.
International Trade Administration U.S. Department of Commerce. (2021). Trade barriers. Web.
Labropoulou, E. (2020). Katerina Sakellaropoulou becomes Greece’s first woman president. CNN. Web.
Map of Greece vector image. (2021). Web.
Network Coverage Maps. (n.d.). GSM Association. Web.
OECD Economic Surveys. (2020). Greece: Overview [PDF document]. Web.
Transparency International. (2021). Country data. Transparency International. Web.
Work and wages. (2021). Web.
World Development Indicators. (n.d.). Web.
WTO. (2021). Participation in Regional Trade Agreements. Web.