France with six othercountries, France is a natural
June 1, 2019
France is the largest country in Western Europeand the fifth economic power. France plays animportant role in the European and worldwidemarket. Bounded by the North Sea, the EnglishChannel, the Mediterranean Sea and theAtlantic Ocean with borders with six othercountries, France is a natural crossroads forEuropean and International trade. France islocated at the heart of Europe and shares itsborders with Belgium, Germany, Luxembourg,Switzerland, Italy and Spain. France also hasdirect links to the UK, Algeria and Tunisia. Thisunique location is recognized for its ability ofbeing a great asset for internationalorganisations wanting to sell their products onthe European and International market. NATURAL HAZARDS AND ENVIRONMENTALISSUESThe Ministry for the Environment is the principalenvironmental agency. Water pollution is aserious problem in France due to theaccumulation of industrial contaminants,agricultural nitrates, and waste from the nation'scities. As of 1994, 20% of France's forests weredamaged due to acid rain and othercontaminants. Natural hazards in France mainlyconsist of flooding, avalanches, midwinterwindstorms, droughts, and forest fires in southnear the MediterraneanNATIONAL POPULATION AND GROWTHRATEThe current population of France is 65,118,998as of Thursday, January 18, 2018, based on thelatest United Nations estimates. France ranksnumber 22 in the list of countries (anddependencies) by population. It has a populationgrowth rate of about 0.4% annually. France hasthe second largest population in WesternEurope behind Germany and a good purchasingpower. These two elements make France anattractive market for a large variety of productsand services. Like in many other westerncountries, the French market is open tocompetition and presents many opportunities tointernational businesses looking for a newventure.CAPITAL CITIES AND MAJOR CITIESFor a country of such size, it is surprising thatthere is only one city proper with a populationexceeding 2 million. The largest cities in Franceinclude: Paris (2.2 million), Marseille(853,000)While it's the second largest city in France, ithas the third largest urban and metropolitanarea with a population of 1.6 million.MAJOR ETHNICGROUPS/RELIGIONS/LANGUAGES SPOKENMost of the people in France are ethnic French,but due to large immigration numbers in recentyears and today the percentage of non-Frenchis slowly growing. The ethnic French are acombination of Celtic (Gauls), Latin (Roman)and Germanic (Teutonics & Franks) people.Most of the French proclaim Catholicism as theirreligion, although there is a small and growingMuslim minority due to immigration trends,primarily from North and West Africa. The officiallanguage of France is French. English, German,and other popular international languages arealso spoken as secondary languages in France,but often times only at a basic level.TOTAL KILOMETRES OF RAILWAYS, ANDWATERWAYS; TOTAL NUMBER OFAIRPORTSFrance has one of the most well designed andefficient transport networks in the world. Thehigh speed train networks such as the FrenchTGV (Trains à Grand Vitesse) is known forbreaking speed records and is one of the bestways to get to destinations allowing fastjourneys between all French major cities Thereis also approximately one million kilometres ofroads and motorways which is a fast andreliable way to transport and deliver goodsaround France. French waterways are also atrustable alternative for transportingmerchandise, thanks to thousands of canals anda large commercial fleet of canal boats. Lastlythere are over 500 airports in France allowingfor fast domestic travel and access tointernational destinations.BRIEF OVERVIEW OF CURRENTPOLITICAL/ SOCIAL/ENVIRONMENTALCHALLENGESOne of the major social challenges that Franceconsists of is the unemployment rate.Unemployment is high and the government'sfinances are weak. About three million peopleare unemployed – 10.2% of the workforce. Thatcompares with a figure of 4.3% across theborder in Germany. Youth unemployment is aparticular problem, as it is in a number of otherEuropean countries. Almost one in four of thoseunder 25 who want a job don't have one. Thisrelates backto the concept of opening up a candy line inFrance as this would open up several jobopportunities for both youth and older people.Some of the main environmental challengesthat France faces currently are water pollution,air pollution and acid rain damagingforests/wildlife. Water pollution is a problembecause industrial toxins, pesticides andfertilizers from farms, and waste from cities likeMarseille collect and become harder to clean upas more becomes present. Air pollution iscaused by a variety of reasons but France’smain contribution to this is caused by industrialfactories and buildings giving off chemicals intothe air as well as the automobiles that peopledrive give off fossil fuel gases that pollute theair. Lastly, the air pollutants that released causereactions, which contribute to acid rains, whichfurther damage forests and wildlife.GENERAL ASSESSMENT OF THECOMMUNICATION SYSTEMSThe communication systems in France arehighly effective but it is dependent on which areyou are running your business in. Internetaccess and better server connections are betterin more populated areas such as the majorcities as many businesses are located in thisarea. Areas like this have very high-speedmodern Broadband systems offering connectionspeeds up to 100Mbit if connection via the fibreoptic network is accessible. Although FranceTelecom is continuing to work on improvinginternet access across France, some ruralareas have a much slower rate of operation incomparison with more populated areas.Although these isolated properties have moredifficulties to access communication systems, itis more rare to find organizations running inareas like this. Therefore, it is still greatlyaccessible in areas of need.THE MANUAL:POLITICAL ;ECONOMICALINFORMATIONTYPE OF GOVERNMENT AND CURRENTNATIONAL GOVERNING PARTYFrance is a republic government by constitution ofthe fifth republic where majority of political power isheld by the people and elected representatives ofthe country. The nation consist of left-wing party;socialist Party, right-wing party; Les Républicains,center; The democratic movement. The newlyelected President is Emmanuel Macron and PrimeMinister is Édouard Philippe.MAJOR POLITICAL PRESSURE GROUPSFrench Confederation of Management – GeneralConfederation of Executives (union of white collard)French Democratic Confederation of Labor (left-leaning labor union)French Confederation of Christian Workers(independent labor union founded by Catholicworkers)General Confederation of Labor (historicallycommunist labor union)General Confederation of Labor – Worker's Force(independent labor union)Mouvement des entreprises de France or MEDEF(employers' union)LEVEL OF POLITICAL CORRUPTION ANDMAJOR INTERNATIONAL POLITICAL ANDTERRITORIAL DISPUTESLevel 23 of 176 with score of 69 of 1002006: Youth protest due to labour deregulationNovember 2007: Riot with police after 2 motorcyclistwere killed in a collision with police cars2007-2009: Series of university protests concerningthe minister of higher education for reform2009 July 14: Endless brutal youth rioters markingthe day of the storming of bastille2013 July 19th and 20th: Riots when a police officerinsisting on woman removing burqa to be identified2014 July 19: Pro palestinian riots eventuallymerged into anti semitic riots2015 November 13: Paris terrorist attacks2016 March 31: Protest against reform concerninglabour2017 March: Rape protest due to rape of youngblack man2017 May: May day clash between rioters andpolice as protesters fight for better workers rightsECONOMIC SYSTEM, GDP REAL GROWTHRATE/ GDP PER CAPITAThe French economy sits between the market andgovernment making it a mixed system. The realgrowth rate as of 2016 1.2% change and the GDPper capita is 36,854.97 USD.MAJOR IMPORT AND EXPORT PARTNERS ;NATURAL RESOURCESThe top five import partners of France are Germany,Belgium, Italy, Spain, Netherlands and the top fiveexport partners are Germany, Spain, United States,Italy, United Kingdom. Major natural resources ofFrance consist of coal, iron ore, bauxite, zinc,uranium, antimony, arsenic, potash, feldspar,fluorspar, gypsum, timber, arable land, and fish.DOMESTIC CURRENCY AND EXCHANGE RATEThe domestic currency of France is Euros and 1EURO is equivalent to 1.523 CADINFLATION RATE AND UNEMPLOYMENT RATEThe inflation rate is 1.19% and unemployment is 9.8% while the minimum wage is 9.76 euros howeverwhen converted to Canadian dollars is $14.87.MAJOR INTERNATIONAL TRADEORGANIZATION MEMBERSHIPS ANDAGREEMENTSA major trade agreements that France is involved inis, Economic and Monetary Union (EMU). France isalso a member of the OECD, the WTO and theWCO (customs) and Comprehensive Economic andTrade Agreement (CETA) between Canada and theEuropean Union. When it comes to Canadaspecifically there is the Declaration on the JointEconomic Action Plan Canada-France 2016-2017and the Canada-France Joint Action Plan in thefields of science and technology, innovation andentrepreneurshipTHE MANUAL:CULTURALINFORMATIONCOMMON FORMS OF FORMAL AND INFORMALGREETINGS AND GOODBYESThe appropriate greeting is a handshake. Frenchstyle handshakes are known to be brisk and light.You should expect a loose grip with only one or twoup and down movements. Kissing cheeks acrossgenders is a common greeting among colleagues atwork, but do not attempt to do it until your femalecounterpart makes the initial move. Regarding titlesof courtesy, it is customary to only use first nameswhen invited to do so.CULTURAL NORMS REGARDING USE OF HANDGESTURES, HEAD NODDING, PHYSICALCONTACT, PERSONAL SPACE AND EYECONTACTIt’s usually common to shake hands with everyonewhen arriving and leaving. Men tend to initiatehandshakes whereas; women tend to initiate kisseson the cheek. Yawning, scratching, sneezing,blowing your nose is seen down upon, so ask to beexcused for a short period of time, if you must doany of the above. The action of closing your openpalm over your fist is also considered disrespectfulas it is seen as a vulgar gesture. A respectfuldistance between one another at business meetingswould be an arms length of distance or a bit closer.PREFERRED DECISION-MAKING ANDLEADERSHIP STYLESThe French are often very passionate people whoaim to achieve all organization goals. The Frenchmanagers tend to follow an authoritarian leadershipstyle because they often focus on the bigger picture.They look at the issues facing the company beforeconsidering the issues that affect the staff. They arevery goal-oriented people and opinions given bymiddle managers or technical staff are usuallydismissed. They believe that all decisions must befinalized by the top position, as they know best. It isconsidered a more organized and error-free methodas there will be less miscommunication betweenone another due to one person in control oforganization. APPROPRIATE ATTIRE IN THE WORKPLACEFashion and appearance is much more important inthis country compared to others because thiscountry is known for their high-end brands. TheFrenchperceive the way you dress as being a reflection ofyour social status and level of success. High qualityand conservative suits and accessories arerecommended. Men should wear a dark moderatelyslim cut suits, with white dress shirts. Frenchwomenare particularly fashion conscious in both their socialand business wear, and are famous for theirrestrained, feminine chic. Careful accessorising iskey in France as it is the statement of your outfit.French women are also more careful with makeupthan many of their European counterparts.USE OF GIFTS AND BUSINESS CARDS IN THEWORKPLACEGifts are commonly expected when attending socialevents in France. Either you give a good quality giftor none at all because the quality of the gift is key.Business cards are also accepted here but they arenot to be paired with gifts. It is common to bringflowers, quality chocolates, or liquer. Good giftselections can also include coffee table books aboutyour home country, or anything that reflects theinterests of your hosts and is representative of yourcountry.PUNCTUALITY IN THE WORKPLACEIn France it is vital to ensure that you makeappointments for both business and socialoccasions at least two weeks ahead of time. Whileyou should strive to be punctual, you will not beconsidered to be late, should you arrive ten minutesafter the scheduled time. It is also considered rudeto ‘drop in’ on someone announces as it isconsidered an act of rudeness. Punctuality istreated quite casually in France but the furtherSouth you go, the more casual the approach to timeis. The French are very relaxed people and attendmeeting with a laid back attitude when attendingappointments themselves, so they are very lenientwhen others arrive late.ROLE OF MEN, WOMEN, AND CHILDRENThe role of women in France has changedsignificantly over time because woman rightsweren’t granted until the French Revolution hadtaken place. Nowadays, roles have changed as themodern world allows both men and women go towork to support the family. They both have equalroles at home and at work, both take care of thefamily and also contribute economically. The legalworking age for children is 16 years old. Before theage of 16, it required by law to attend school andattain education.THE MANUAL: MARKETINFORMATIONPRODUCT”Goodies inc” or in French “Petits CadeauxIncorporé”, would have a specific line ofgoodies only available for distribution in Franceunder the name “Montélimar”. This namecomes from a classic medieval looking region inthe department of Drôme from which ourspecialty candy first earned it popularity duringthe 19th century. The logo is very simple beingthat it is very easy to draw out and alsorecognizable. Colours within the logo follow thetheme of renaissance with our originalrenaissance font and mauve colour scheme.Our slogans objective would be to make surethat consumers know that there is no othercandy company that sells such a unique andhigh-class quality candy like ours. For thisreason our slogan would be, “Too Good to beTrue” and in French the slogan would be “TropBeau Pour Être Vrai”.Despite our variety of sweet candies andchocolates, we specialize in nougat, a verysweet that is considered very traditionalaccording to French history. The most popularnougat is known as “Montelimar Nougat” whichrefers to the traditional recipe, which consists ofthe highest quality eggs, almonds and localhoney and many other very rich ingredients.Centuries ago, nougat would be made not onlywith the highest quality of ingredients but withthe most complex techniques for such a treatwould often be presented to and by frenchroyalty and the upper class. In attempt to carryout these traditions “Goodies Inc” uses the bestquality ingredients and techniques whencrafting such a treat which is hard to find henceour slogan “True Good to be True”.Consumers would have the option ofpurchasing pre-packaged bars, boxes or evencustomize their own baskets making this goodythe classiest gift one can receive.PLACEConsidering that Goodies Inc uses adecentralized strategy, the most efficient wayfor our company to reach a greater consumermarket would be to invest in e-commerce,especially for the purchase of larger qualities orfor gift delivery. A branch plant would also bevery effective especially in higher class frenchmalls rather than stand alone shops howeverstand alone shops are still a possibilitydepending on how consumer react to shopswithin malls. However, with in mall shops wouldbe a great way for customers to “grab and go”with the added option of placing large orders forpick up for French people especially higherbusiness class people tend to be very busypeople.Another option would be for customers topurchase our high quality drinks from our largeselection of cafe beverages, for the perfectpairing for your nougat. “Montélimar” would berequired to pay franchising fees formanufacturing and distributing under the”Goodies Inc”. PRICINGDue to the high quality and cost of suchtechnical processing, processing and labour forour products will have to be done domesticallywhich will be costly. Therefore, our products willalso be costly however still worth the pricecustomers will be paying. Because “Montélimar”will be a domestic line of goodies, there will beno additional expense for overseas distributionrequired, however that money would beinvested into domestic delivery for thosecustomers who wish to have their large ordersor personalized gifts shipped and delivered.All products required for the production ofNougat are ingredients that can be found locallysometimes in the naturalist form especially inthe region of Montélimar, for this region isknown for this speciality sweet. Nougat can beprocessed in very large masses which meanspacking will require lots of effort howeverinspections would be simpler for there would beminimal inspections required per batch. PROMOTIONConsidering that Montélimar’s main mission isto conserve the traditions and history of Frenchculture, as an organization we will investwhatever amount we can spare into historicalconservation. This would mean closely workingwith the Fédération Française desConservateurs/Restaurateurs which would helpwith campaigning and publicity. By working withsuch an organization we would be letting ourconsumers know of passion for historical andtraditional conservation while using promotionsto increase sales for both donating andincreasing the company's value.Seasonal promotions will also play a big factorforholidays and celebrations like Easter, VictoriaDay, Bastille Day and multiple celebrations thatMontélimar will take into consideration due toour belief in marking the days of historicalimportance. CONSUMERTarget consumers will consist of men womenand families of higher class. Consumers will bebusy working professionals who value suchhigh quality goodies and sweets and can affordsuch a luxury.Consumers would also include those who wishto impress business partners or even lovedones making such a gift equivalent to sendingto sending a very extravagant bouquet offlowers. According to studies and surveyswomen consume more sweet goods than men,which is why women are specifically a greatertarget.COMPETITIONIndirect competitors would include, PatrickRoger, one of France’s foremost contemporarychocolatiers, “La Cure Gourmande” a chocolateand candy shop and “Le Bonbon au Palais” acandy shop. All of the companies arecompanies who do not specialize in anyparticular sort of chocolate or candy, makingthem indirect competitors.A very big direct competitor is “ArnaudSoubeyran” whose specialty is also MontélimarNougat. This company has a similar mission asit is preserving the artisanal manufacturingtechniques of sweets and we carefully selectingquality ingredients.THE MANUAL: INDUSTRYSPECIFICINFORMATIONCONFECTIONARY INDUSTRY DOMESTICVOLUME, REVENUE AND PROFIT FIGURESThe French Confectionery market is the fourthbiggest in Europe, behind Germany, the UK, andRussia, at 532 kg million in volume terms and ismainly driven by consumers' desire for indulgenthigh-quality products that provide them with adecadent treat. Revenue in the Confectionerysegment amounts to CAD$14,999m in 2018. Themarket is expected to grow annually by 2.5 %(CAGR 2018-2021) as consumption per capita andoverall consumption increases. Confectionaryindustry in France is said to be the fastest growingsegment in terms of businesses. France was alsoWestern Europe’s third-largest confectionerymarket, with retail value sales of CAD$9.4 billion,following Germany (CAD$15.9 billion) and theUnited Kingdom (CAD$15.2 billion). France has thesecond-highest food retail sales per capita inEurope. France's consumer foodservice salesthrough travel locations have been on an upwardtrend, and are on track for the most impressivegrowth in the foodservice sector for 2013.NUMBER OF DOMESTIC AND INTERNATIONALMANUFACTURERS, WHOLESALERS ANDRETAILERSInternational brands dominated the Frenchconfectionery market in 2010, due to their intensivepublicity campaigns, product innovations and well-known brands. Domestic brands are a minority inthe French sugar confectionery market, and aremostly artisanal manufacturers of traditionalproducts. As if2013, according to statistics, it is observed thatthere were 1,380 enterprises in the manufacture ofcocoa, chocolate and sugar confectionery industryin France. A forecast statistic was able to collectprior data of revenue of sugar confectionarywholesale in France which stated that aroundUSD$13 124 billion of revenue will be reached in2018. This is significantly higher than 2017 whichwas a revenue of US $12 700 billion.INFORMATION THAT MAY BE RELEVANT TOPOTENTIAL INVESTORSThere have been a number of high profile terroristattacks since 2015 across France. On 13 November2015 terrorist attacks killed 130 and injuredhundreds more at multiple sites across Paris.Terrorists are very likely to carry out attacks infrancedue to the high amounts of tourists that they areable to target at. One of the major crimes that takeplace on the streets of france are pickpocketing.France is also known for organized crime in whichthe crime is planned and controlled by powerfulgroups and carried out on a larger scale.RECOMMENDATIONS AND CONCLUSIONGoodies Inc should select France as the nextlocation in which to invest for France plays animportant role in the European and worldwidemarket. The location is recognized for its ability ofbeing a great asset for international organisationswanting to sell their products on the European andInternational market. France is located in the heartof Europe surrounded by Belgium, Germany,Luxembourg, Switzerland, Italy and Spain. Thesecountries are very popular for their tourism, which isalways an advantage when it comes to marketing.From a more political side, France receives majorityof imports from Germany, Belgium, Italy, Spain, andNetherlands which are all nations not too far fromFrance making receiving imports and advantage.France is also a member of multiple tradeagreements like the OECD (Organisation forEconomic Co-operation and Development), theWTO (World Trade Organization) and the WCO(World Customs Organization) meaning they havethe advantage of not having trade barriers andtariffs. In French culture especially when it comes tobusiness and professionalism it is common to giftflowers or liquor but in most cases it is mostappropriate to gift quality sweets. If not as a giftmost often after a formal meal, a sweet is pairedwith the serving of coffee or tea to mark the end of ameal. The products overall mission for wanting topreserve traditional French candy crafting, is why”Montelimar Nougat” is going to be a high demandproduct along for the high quality ingredients andtechniques use of production. The product will be ofeasy purchase to all for the main source ofdistribution, e-commerce. Such purchasingopportunities and flexibility is an advantage we havecompared to competitors along with our company'sstrong mission. Our main mission is to conserve thetraditions and history of French culture, which wouldhelp with campaigning for historical preservation,and also help with promoting our products. Ourtarget markets consist of upper class professionalsand in France there is no shortage of such ademographic especially in major cities. For thesereasons Goodies Inc should select France as thecountry to further expand investments in.