ItalyPresented By:

Presented to: DeLorean Motor Company

LocationMathematical Location: 9 degrees east, 45 degrees north

Situation: France, Slovenia, Switzerland, Austria

Formal Region: Western Europe

Functional Region: Milan

Demographic Transition

If a country has a high birth rate and a low death rate, the natural increase rate will obviously rise. If a country has a low birth rate and high death rate, it will decline.

Italy is currently in stage 4 of the demographic transition model.

The Agricultural revolution elevated the natural increase rate because it made it easier for people to survive off growing food rather than hunting and gathering. The Industrial Revolution made it easier for people to get work done faster and more efficiently.

Demographic Analysis

In Italy, there are many strengths. For example, Italy is excellent in all of these categories, and it has one of the higher populations in the region. With a high population comes a larger labor pool. All the countries have a high literacy rate, which provides an intelligent work force. Countries like Austria, Switzerland, and Slovenia have a lower population. The Human Development Index is considered to be very high for each of these countries. Italy’s main weakness is their Per Capita GDP, which is obviously lower than its neighbors.

Country

Population

Growth Rate(2010)

HDILife

Expectancy

Population

(Millions)

Per Capita GDP

LiteracyRate

Italy -0.08% 0.828 81 60 $35,435 99%

France 0.53% 0.872 81 65 $42,747 99%

Austria 0.04% 0.851 80 8.5 $45,989 99%

Switzerland

0.22% 0.874 82 7.5 $67,560 99%

Slovenia -0.14% 0.854 78 2 $24,417 99.7%

Economic Development

Primary: Mainly Agriculture, such as grains, fruits, vegetables, olive oil, soybeans, and meat. Italy is 1st in wine production in the world.

Industry: Motor vehicles, chemical engineers, electrical engineers, fashion/clothing design.

Services: Service jobs keep tourism going. For example, waiters, chefs, cab drivers, and tour guides.

In order to support high end sports auto manufacturing a country must have the human resources that come from a high level of development.

Tourism is key to Italy’s economy. It’s the 5th most visited country in the world. When tourists see the array of cars, they want to take one home.

Site Factors: Land and labor

Hourly cost of labor

Note: Italy has no minimum wage

It will cost less for Italy factoryIt will cost less to pay workers in Italy

Site Factors: Resources

List of Inputs: Steel, glass, rubber, electrical components, and plastic.

Italy offers 21 auto manufacturers, 19 auto design firms, and 18 auto part supply companies.

All European, Middle Eastern, and African auto markets are available for sales.

Italy is home to 50% of world-recognized name brand sports car manufacturers.

Situation Factors

Miles to Major Markets

Paris 500 Brussels 600

Berlin 700Amsterda

m700

Barcelona

700 London 750

Vienna 550 Prague 550

All Western European countries are within 1000 miles.

Infrastructure:Transportation

Countries

Airports Railways RoadsWaterway

s

Italy 132 airports with 15 major airports

•19.729 kilometers•Main category of express trains is domestic service

•487,700 kilometers•All highways are paved•1st country in the world to start building motor ways

•2,400 kilometers•Used for commercial traffic•Limited overall value to road and rail

France 475 airports 29,213 kilometers 951,500 kilometers 8,501 kilometers

Switzerland

66 airports 4,888 kilometers 71,298 kilometers 65 kilometers

Austria 55 airports 6,399 kilometers 107,262 kilometers 358 kilometers

Slovenia 14 airports 1,228 kilometers 38,709 kilometers none

There are many transportation options available

Infrastructure: Communication

Note: Italy is the second largest mobile communications market in Western Europe.

CountryInternet Users

(%)Internet Hosts(Per 1000)

Cell Phones (Per 1000)

Italy 52% 375 1341

France 69% 354 789

Austria 75% 373 1191

Switzerland 75% 523 1072

Slovenia 65% 286 960

Taxes

Country Corporate Tax % VAT

Italy 3.9/27.5 20

Austria 25 20

France 33 19.6

Switzerland 8.5 7.6

Slovenia 21 20

Italy does not appear to have a property tax

Social StabilityHuman Rights: Freedom of religion is allowed because of the 1947 Constitution of the Italian Republic. Blasphemy is the only rule against the freedom of speech law.

Levels of Corruption: The Sicilian Mafia is the main problem in Italy which uses its strength by using scare tactics on innocent people. They also formed their own government party and gained some of its own political power.

Political Opposition: Italy has six major parties including the People of Freedom, Democratic Party, North League, Future and Freedom, Italy of Values, and the Union of Christian and Centre Democrats. They also have 28 minor parties.

Free and Open Elections: People elect the Parliament and the Parliament elects the President every seven years.

Sicilian Mafia

ConclusionItaly would be a great place to build a factory for the DeLorean motor company. Italy is home to the majority of the best-selling sports cars in the world. There is easy access to some of the major markets of the world. The cost to build a factory and employ workers is lower than neighboring countries. The infrastructure for communication and transportation is already well-established. The people of Italy have made themselves known for building popular sports cars. The resources are already in place for building high-end automobiles. All of these factors combined make Italy the perfect place for the DeLorean motor company to be successful.