Group: Noctiluca

Isabella Christina Navarro de Abreu Capilla

BrazilUniversidade Estadual Paulista - UNESP

Companies• Most companies are manufacturer, importer / exporter or trading

company.

• Many oil and energy companies, but most Eastern European countries are highly dependent on energy imports.

• Most problematic factors: difficult access to financing, tax rates, inefficient government bureaucracy and corruption.

• Positive points: High level of education in most of the Eastern Europe countries, similar time zones and culture, growing labour market.

• In 2009, the number of IT specialists employed in companies providing IT outsourcing and software development in the region (not including Russia) reached 95,000, found the Central and Eastern Europe Outsourcing Review 2010 report. Romania was found to be the country with the highest growth of IT specialists, increasing by about 12% compared with 2008. Ukraine followed with over 9% growth.

Competitiveness• Some countries competes primarily on unskilled labour and natural resources –

low productivity.

• Armenia and Ukraine demonstrate shifting from unskilled to a more educated workforce.

• Many of the EE countries (Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Montenegro, Romania, Russia and Serbia) are becoming more efficient and their productivity and wages are rising.

• Czech Republic and Slovenia compete with new and unique products, so they can be able to sustain higher wages and cost of living.

• In most countries normally importation exceeds exportation.

• “India faces increasing competition from Eastern Europe because of the similar time zone and culture between the Eastern European countries and the West European countries.” - Kathleen Hall, ComputerWeekly.com

Interviews and Discussion

Environment

Engineering

Health

Education

Other

40%

22%

16%

7%

15%

What will be the most wanted profession in 2022?

Populations are growing fast and food is disappearing. Consumerism is increasing and our supplies are decreasing. The livestock growing and deforesting, while food plantation lose space. Besides, clean energy technology still expensive and each day passes we note the effects of the global warming. That’s some reasons why professions related to Environment are going to be the most wanted.

What are the weaknesses and opportunities of Eastern Europe?Many people say that the Eastern Europe countries were for so long closed and isolated that they don’t know much about them. Most of these countries were fighting for their independence not long ago and were closed in a communist-socialist regime, that, unfortunately, left them behind. Other weaknesses like corruption, ethnic and religious divergence were also cited.For the other hand, people in Eastern Europe are very dedicated and educated and despite their past, they've built wonderful places for living that are more and more attracting foreign investments.

Interviews and DiscussionWhich should be the focus industries and what kind of companies should

emerge?

Companies generating knowledge.

How Easter Europe could escape the bind between the West and the Far East?

Cooperatives Industries.Industries of social innovation. Those were the companies that were most cited.

Cooperative industries are able to fortify common ideas and grow with them.

Industries of social innovation refers to new strategies, concepts, ideas and organizations that meet social needs of all kinds.Companies generating knowledge can motivate and instruct people, so their knowledge and technical skills can offer great potential for processes improvement.

The West Europe includes some more developed countries with a higher life quality, while the Far East offers a lot of low-cost skilled labour. So, the West is the more productive side and the East is the cost-efficient side.Because of that, the Eastern Europe is seen as an “intermediate” Europe, where things are not cheap and the life quality in most of the countries is not that bad.Eastern Europe countries must invest in skilled labour, professional training in companies and new universities of high quality that could encourage and stimulate youth all over the world to come to these countries, changing the way it is seen by the rest of the world.

Vision of future EEWhich industries, sectors and types of companies will emerge in EE?

Many companies from the West are nearshoring in Eastern Europe, not just because of similar time zone and culture, but also because it is closer and delivery is faster, there is a lot of technical talent and high skilled labour, Data Protection Act within the EU and a growing labour market.

In the future, manufacturing industries (automobile, textile and clothing, etc.) are going to be everywhere. ITO is going to be common, because NASSCOM will lose its power, and more and more specialists will be employed in companies providing IT outsourcing and software development in the region.

All companies and industries will have a sector responsible for environmental analysis, like environmental degradation caused by the companies, sewage facilities, recycling, etc.

The drinks business already has high growth rates and it will be even higher in 10 years. So, there will be more drink companies.

New traveling agencies are going to open because of the immense international tourism that is already growing. In order to attract more tourist the sustainable development is indispensable. “The tourism will lead the economic growth, social growth and environmental sustainability”, (R. Taleb, 2011)

How should these future Eastern European companies look like (size, ownership, structure, etc.)?

Vision of future EE

Many companies are going to be small business, specially the outsourcing companies, that will be owned by middle class. Middle class will also make presence in fields semi-professionals, such as lower-level managers and school teachers. These people should have a comfortable living. The Eastern European middle class is diversifying and growing. Constructions companies will also start up and compete.

There will be a lot of new medium enterprises and many more people are going to be employed by these companies. Security and intelligence technologies, meteorology, construction, environment, recycling, manufacturer and biology/medicine-innovations are some of the topics of companies that will be most common in the medium enterprises competition. These companies will be bigger and able to employ many people.

It is important to invest in innovations, in things that is not common around the world. With that in mind, big enterprises will have “innovation” in focus and new big high-tech medical centers, technology and internet companies and research centers will start up looking forward to new consumers

How will these companies interact with the rest of the world?Vision of future EE

By 2020 more Eastern European countries will join the EU, but not necessary will all of them be part of the Euro Zone.

Everything that happens in those countries from EE affects the European Union. These countries are each day closer to the EU and their stability impact on the EU’s. Enhancing relationships with the EE countries would imply new agreements and deeper integration, including free trade agreements and easier travel visa .

Because of great energy supplies from EE countries, the Partnership would promote energy security for the Europe.

By 2020 the number of member states could increase to 37. The Partnership will also make it easier to work in another country and globalization will get higher. More and more people are going to travel in the Europe for work, fun or studies. Math and science education in Eastern European countries are exceptional and will attract more youth - looking forward to learn different experiences and languages - to the region.

What will be their unique values that are making them competitive and how will they be achieved?

Vision of future EE

The enlargement of European Union helps to spread prosperity, democracy, stability and security. By 2020 more countries from Eastern Europe will join the EU and common values are very important, the union has been built on it. Enlargement encourage economic growth and specialization.

Europeans support the idea of a rules-based system of global governance and their values are more social. Job satisfaction and work values are crucial in the success of a companies. Lower work performance is because of low level of job satisfaction and consequently quitting behavior.

Value is the interaction of demand and supply and social value shape markets, conversations and negotiations. Social values like Change, Cooperation, Education, Respect and Democracy (as a representative government) are unique values making the EE competitive. Democracy encourages cooperation and religion tolerance that leads to a peaceful living. All members of the European Union share a commitment to freedom of conscience and religion and the EE countries must share it too.

The path to be a developed country is long and exhaustive, it does not happen from a day to another, it’s a continuous work made of simple and small actions that interacts will the whole problem.

Which sectors within a company will be the most important (IT, Marketing, Finance, Logistics)?

Vision of future EE

Nowadays we receive many information and we have to assimilate it all. IT will be the most important, because it will help humans to store, retrieve, manipulate and transmit data to anywhere. By developing new and innovative systems we’ll be able to transform and transmit information, receive data from other companies and cooperate easily.

Information is going to travel worldwide much faster than today and a very efficient system is indispensable.

Second, an environmental sector will be very important to analyze soil damage, air pollution, area loss, etc. All information about environmental degradation will be stored by IT and worldwide organizations will know the situation the region, the company (if it’s legal or not) encounters.