[Challenge:Future] Moral underpinnings of Capitalism
[Challenge:Future] Nexusofminds: The Future of Work
1. Team Name : Nexusofminds
EE Country : Poland
Team Leader : Gautam Gill
Team Members : Alexander Fogt
Countries of Origin : India, Germany
School : Kozminski International
Business School, Warsaw
2. Macroeconomic situation of Poland
“Polish economy booms in European Wasteland” Global
Post, 2012
22nd in the world in GDP. World Bank,2011
Only Economy in 2009 with +ve GDP growth.
Stable currency ; cheaper production.
4.2 Zl/Eur in 2003 to 4.2 Zl/Eur in 2013.
Continuously growing economy; 2.2% GDP Growth for
2013.
Massive service sector : 63% of the economy.
3. Stable trade deficit maintained, between 3.5% & 4.5%.
www.tradingeconomics.com
Sectors which have boomed in Poland are :-
1. Financial & Banking Sector
2. Efficient Urban Electricity Supply
3. Construction
4. Infrastructure and public transportation
-A cheap market for production inputs and labour.
- Stuck in a position of a being a feeder market.
-Production is higher quality than the east, lacks original cutting
edge production and technology.
- major reasons for economic success:
-Privatizations
-Labor market characteristics
-Currency not begged to the Euro
4. Strengths & Weaknesses
Strengths
• Technical know-how with a cheap labour
force.
• Strong public infrastructural development.
• Courage to Innovate. Example : Solarius Buses
Weaknesses
• Stuck in the frame of a feeder economy.
• Not self sustainable, dependant on the west.
• Inefficient and naïve management. Example LOT
5. Interview
1. What are the weaknesses and opportunities of Eastern Europe?
• Weak Legal & Tax Systems.
• Effect of Communism – Lack of Trust
2. Which should be the focus industries and what kind of companies should emerge?
• New technologies due to educated and not expensive work force.
3. What will be the most wanted profession in 2022?
• All kinds of specialists, people with technical education. Lawyers will always be
needed - economic growth and capital investment creates need for legal services.
• Economic growth & capital investment – Ideal for a construction co.
• The ever growing service sector
4. How EE could escape the bind between the West and the Far East?
• Stable economy and political situation, improve legal and tax systems to
encourage investments
Invest in education.
Interview with Jacek Bocheneck – General Manager, Diners Club, Poland
6. Vision 2022
Assumptions :
1. Large Scale Urbanization.
2. Economic expansion in key sectors.
3. Large educated & trained youth workforce.
4. Stable and inexpensive input and labour costs
5. Increasing need for infrastructural development.
6. State encouragement for domestic start up
companies.
7. Construction Sector
• Boom in residential segment coupled with a
boom in the road construction segment
excessively subsidized by the EU.
• Large amount of foreign investors such
MetLife & Jones Lang LaSalle.
• Low price of workers along with a growing
demand for construction in Poland.
• Increasing need for Freeways. Example
between Poznan & Wroclaw.
8. Definition of our Company
• Company’s top management is an integrated
mix of Polish and other nationalities to bring a
varied amount of professionalism and strategy
for the business.
• Company combines technical know-how along
with an international flair.
• Construction of high quality buildings and
infrastructure.
• Customized service.
9. Goals of the Company
• Strictly adhere to project deadlines.
• Meet customers expectations by delivering
high quality products.
• Employ skilled labour.
• Expand to key western european markets.
• Get Listed on the Stock Exchange in order to
facilitate growth and expansion.
• Maintain a diversified construction portfolio.
10. Success
• Economies of scale by expanding to key
markets in Western Europe
• High quality products along with motivated
workers as well as guaranteed customized
service
• Become major player in the home market and
survive excessive competition abroad
• High market share, positive Future Cash Flow
while having stable costs