The 12 Pillars of Competitiveness (see appendices 1.2) 1. Institution Ireland’s institution is ranked on the efficiency of its public and private sectors, the legal framework which individual, companies and governments interact. This determines the quality of the public institutions of a country and influences the competitiveness and growth of the economy. According to the WEF report (2015-2016) Ireland scored relatively high in the strength of investor protection and low in the wastefulness of government spending, this highlights that Ireland has implemented laws and policies to protect investors. 2.
In 2016 alone, Ireland exported over $128 billion and imported $75.2 billion, which then resulted in a $52.9 billion positive trade balance. In 2016 the Gross Domestic Product (GDP) of Ireland was $294 billion and its GDP per capita was $68.9 thousand. The economic complexity has fluctuated quite a lot since 1990 while imports and exports have gradually increased ("Ireland"). The most valuable sectors of Ireland’s economy in 2016 were wholesale and retail trade, industry, transport, accommodation and food service activities, along with public administration, defense, education, human health and social work activities (Éire). The top exports of Ireland in 2016 were packaged medicaments, nitrogen heterocyclic compounds, and human or animal blood.
Competitiveness of business depends directly on productivity, motivation and loyalty of employees available to an enterprise. Generating of new ideas often coming also from the companies’ employees is one of the factors improving business competitiveness through providing of innovations (Subramaniam & Youndt, 2005). Similarly, skills of employees in rendering high quality service to clients, and ability to sell products or services have direct effect on financial performance of the company Business
It starts with the physical and superficial but goes beyond. It governs behaviour, language, customs; it directs the etiquette of business dealings and the machinations of politics.” In Italian culture, appearance and others opinions are considered tremendously influential. It is vital therefore, when undertaking business in Italy, to make sure that all presentations and business materials are aesthetically pleasing to your Italian
Dunning in 1979. This model identifies three main factors that leads a company to internationalize: 1) Factor O of ownership, that is the advantages link to the factor’s property, for example production skills or managerial or entrepreneurial specific skills. Ceteris paribus the greater the competitive advantages of the investing firms, relative to those of other firms the more they are likely to be able to engage in their foreign production. 2) Factor L of location, that define the advantages link to the localization that is the advantages link to the characteristics of the host country, as for example natural resources, the infrastructures or the availability of workforce. The more the immobile, natural or created endowments, which firms need to use jointly with their own competitive advantages, are located in foreign market, the more firms will choose to augment or exploit their O specific
There are many things that make some countries consistently seek for improvements and capable of consistent innovation, Innovation is important for companies in order to achieve competitive advantage and to sustain this competitive advantage it needs to be followed with consistent improvements. Porter had made a framework to understand the competitiveness of nations and address why certain companies are always looking for more sophisticated source of competitive advantage. As porter stated a nation gain competitive advantage if its firms are competitive, a company become competitive through innovation and improvements. The Framework consist of four attributes that, they together form porter diamond of national advantage model, these attributes are: Factor condition, Demand condition, Related and supporting industries, and Strategy, structure and rivalry. These factors create the national environment where organizations compete.
Home-based suppliers who boast international competitiveness serve to work with others in their own and related industries to promote the creation of innovations within groups of interrelated organizations. The cooperation of related industries can also aid in providing competitive advantages, especially when it indirectly supports the creation of new skills in other industries. When both of these players work together to promote the competitiveness of a region, they must have “short lines of communication, quick and constant flow of information, and an ongoing exchange of ideas and innovations”. (Porter M. E., 1990, p. 228) However, this is only possible if all companies work together, which identifies the importance of cooperative clusters and the advantages of geographical proximity. In addition, internationally competitive firms lead all members of related and supporting industries to gather knowledge about worldwide needs and possibilities for
In order to keep the economy running smoothly, central banks try to limit inflation. Generally inflation looks at the speed at which the general levels of goods and services is increasing and as a result the buying power of currency is decreasing. Inflation in the Republic of Ireland fell in 2010, this was measured by the Harmonised Index of Consumer Prices. During the past ten years Irish prices became less competitive, this was suggested by the downfall of the harmonised competitiveness indicator, which was deflated by the Irish consumer prices. During 2009 and 2010, consumer prices in Ireland fell however prices still remain high according to EU standards.
World class related industries can be sources of ideas, technology, individuals, while supporting industries often deliver the most cost effective or highest quality input. All of these can be advantages in international competition. Close working relationships creates a quick and constant flow of information and a continuing exchange of ideas and innovations between suppliers and end users. Nations are typically competitive in industries where clusters of related and supporting industries are geographically concentrated, making the interactions closer and more dynamic. It is difficult to have the same level of interaction with foreign companies.
In this year book competitiveness is computed into four groups i.e Economic performance, Govt. Efficiency, Business Efficiency and Infrastructure. Doing Business Report focuses on the business sector to understand the availability of regulatory environment for business. The 12 pillars of competitiveness WEF’s annually published Global Competitiveness Report carries out respective computations of the competitiveness index by different indicators. This report focuses on economic welfare and increasing standards of living.