1. Modern business operations in the Czech Republic …..since 1989

2. An appreciation of dates Pre 1914 –Austro-Hungarian empire; Czechoslovakia created 1918 1918-1939 1939-1945 –German occupation 1945-1989 –Communist regime (Influenced by Russia) –“Prague spring” 1968 –“Velvet revolution” November 1989 Post 1989

3. Traditional industries (1) “Heavy industry” –Engineering Skoda Tesla –Mining “Black” coal “Soft” coal Clay Graphite Silver  Uranium

4. Traditional industries (2) Specialised –Chemical –Medical –Shoes –Glassware –Contact lenses –Films –Musical instruments etc, etc, etc………

5. Traditional industries (3) Other –Brewing …….also, wines and spirits –Agribusiness Livestock  milk/cheese/meat Timber Fruit/vegetables etc, etc, etc………

6. During the years up to 1939 Czech business was oriented towards the west Czechoslovakia was the 10 th most developed industrialised country in the world

7. After 2 nd World War: Communist era Czechoslovakia became the “workshop of the Soviet bloc” 70% of exports went to Soviet bloc Series of yearly and 5-yearly plans

8. In more detail….in 1974: Skoda Tesla Bata

9. In more detail….in 1974: Skoda Tesla Bata

10. Europe in the 1970’s

11. 70% 30% Europe 1978: Czechoslovakia was considered the workshop of the Soviet bloc

12. Europe in 1990 70% 30%

13. Europe in 1990 70% 30%

14. Europe in 1993 70% 30% Lost exports eastwards

15. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

16. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

17. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

18. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

19. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

20. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

21. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

22. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

23. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

24. After 1989 Local companies needed to find new business partners Foreign trade re-oriented towards western markets

25. Nowadays European Union is the biggest trade partner In 2005, more than 84% exports went to the EU-15 countries Sharp increase of foreign investment, especially from Germany

26. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

27. Automotive industry in the Czech Republic

28. Passenger car production (per 100 residents) Source: Automobile Industry 4/2006

29. Some recent foreign investments in the Czech automotive industry Volkswagen – sole owner of Skoda Toyota-Peugeot-Citroen Iveco

30. Some Czech automotive component suppliers

31. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

32. Aerospace industry in the Czech republic 10,000 people working across the country10,000 people working across the country

33. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

34. Electrical engineering and electronics

35. Examples of who does what: (1) consumer electronics Panasonic –flat-panels TVHitachi –flat-panels TVIPS Alpha –LCD modules Bang & Olufsen –various consumer electronics Candy –refrigerators

36. Examples of who does what: (2) automotive Kostal –electronic modules Visteon/Autopal –lighting Tyco Electronics –various components Siemens VDO –Automotivecontrol modules, sensors, panels

37. Examples of who does what: (3) IT Foxconn –PC routers Asus –PC –High-tech repair centre FIC –PC Inventec –PC

38. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

39. High-tech engineering Between 80% and 90% of production is exported R&D driven Includes: –Instrumentation –Machine tools –Railway industry

40. Instrumentation Around 4,000 specialised workers in this sector, eg: –Central Bohemia region 13.9% Siemens and Linet –Olomouc region 12.5% Meopta – optics and Invensis appliance controls –Prague 12.4% Honeywell

41. Machine tools Approx 50 companies About 90% of production are specialist cutting machines. Approx 80% are exported to: –(mostly) Germany –Other EU countries –US & Canada –and: China, Russia, India and South America

42. Railway industry (Includes tramways) Three large factories: Prague, Plzen and Koprivnice 30% turnover is exported worldwide

43. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

44. Life science and Medical devices Life science –Especially Biotech and pharmaceutical industries Medical devices, eg: –Hospital beds –Ventilators –X-ray equipment –Dental technology –Mobile hospitals –Technical gases

45. Modern “Service businesses” in the Czech Republic

46. A few statistics

47. 56% of all employees are in the service sector 53% of those are women

48. The main service industries Tourism Retail Accommodation Boarding ie: Restaurants and catering Banking & Finance Post and Telecommunications Jachymov Radon Spa Karlovy vary spa Beer spa Czech chata

49. Other service industries Information services, guides, translators Cultural (Concerts; castles; programmes) Health (Private & public; insurance; prescriptions; “alternative” treatments) Transportation (city transport; taxis; car rentals; international logistics) Libraries (including e-government) Cleaning (Public and private; buildings and households) Education (includes specialised education) Consultants (entrepreneurial opportunities – eg: HR) Legal Real estate

50. Some service businesses in Prague Business process outsourcing –Accenture; Ariba; Infosys IT and Logistics –DHL; Fedex; IBM; Tesco Customer support centre –GE Bank; Icon; Lufthansa; Phillips; Team Trackers Shared services centre –Exxon Mobil; Johnson & Johnson; Siemens; Tesco High-tech repair centre –Symbol technologies

51. Links Czech Statistics Office: http://www.czso.cz/eng/redakce.nsf/i/home http://www.czso.cz/eng/redakce.nsf/i/home Czech Republic (Official website): http://www.czech.cz http://www.czech.cz About Czech service industries ( you can open this website with confidence – Richard ): http://tinyurl.com/35wdx5 http://tinyurl.com/35wdx5

52. Thank you!