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Sweden
Introduction to the Economics
Econ 100 Section 1
Group 2
Introduction to Sweden

Sweden is a country in North Europe …

Sweden became an independent state in the 11th
century.

member of the European Union.

The country is a parliamentary democratic
monarchy.

Personal income tax : 35.6% & GDP :$25985.33
per person
Early Industrial Development

A slow starter in the development
process
 Economic development in the rest of
Europe
The 1970s and 80s
negative :
 domestic market is relatively small
 The 1973 oil crisis and the subsequent

structural problem
The 1970s and 80s
Positive:
 chemical
 plastics
 electronics
 car industries
All did fairly well
!
Nowadays (20th century )
 a mixed system of high-tech
capitalism
 welfare benefits
 modern distribution system
 skilled labor force
Composition :
Agriculture :
-2% in GDP
-Product : Barley,wheat,sugar beets,meat,milk
-Labor force: 2%
Industries :
-29% in GDP
-Product:iron and steel, precision equipment,wood pulp
and paper products,processed foods, motor vehicles
-Labor force: 24%
Services :
-69% in GDP
-Labor force : 74% (2000est)
Other :
-Unemployment Rate : 4.9 % (2003est)
-Labor force : 4.449 million (2003est)
Import :
-Commodities : machinery, petroleum and petroleum
products, chemicals, motor vehicles, iron and steel,
foodstuffs , clothing,
-Total of import : $83.27 billion f.o.b. (2003est)
-Partners :Germany 18.7 %
UK 8%
Norway 8%
Netherlands 6.8%
France 5.5%
Denmark 9%
Finland 5.6%
Belgium 4.2% (2003)
Exports :
-Commodities : machinery , motor vehicles , paper
products, pulp and wood, iron and steels products,
chemical
-Total of exports : $ 102.8 billion f.o.b. (2003est)
-Partners : US 11.5 % Germany 10%
Norway 8.4%
UK 7.8%
Denmark 6.4%
Finland 5.7%
Netherlands 4.9%
Belgium 4.5 %
France 4.9%
(2003est)
Major Company in
Sweden
-> IKEA
-> Ericsson
What is IKEA?
 Swedish home furnishing retailer ,Ingvar
Kamprad
 202 large stores in 32 countries
 Most large stores are throughout Europe,
the rest are in the US, Canada, Asia and
Australia.
 Product : business idea is to offer a wide
range of home furnishings with good design
and function at prices so low.
All IKEA stores are
franchisees
 There are 202 IKEA stores in 32
countries. Of these, 180 stores
belong to the IKEA Group. The
remaining 22 stores are owned and
run by franchisees outside the IKEA
Group.
 IKEA was named one of the 100 Best
Companies for Working Mothers in
2004 by Working Mothers magazine.
Figures
turnover for the IKEA group
Sales for the IKEA Group for the financial year 2004
(1 September 2003 - 31 August 2004)
totaled 12.8 billion euro (15.5 billion USD).
Charts
sales by region
Asia 3 %
North America 16 %
Europe 66 %
purchasing by region
North America 3%
Asia 3 %
Europe 66 %
Workers
co-workers by region
Asia + Australia 3,000
North America 13,000
Europe 68,000
The IKEA group employs a total of 84,000
co-workers in 44 countries.
co-workers by function
Range, purchasing/trading,
wholesale and others: 8,000
Industrial production: 11,000
Retail: 65,000
Top five sales countries
 Top five sales countries
Germany 20%
United Kingdom 12%
USA 11%
France 9%
Sweden 8%
Top five purchasing countries
 Top five purchasing countries
China 19%
Poland 12%
Sweden 8%
Italy 7%
Germany 6%
Ericsson
What is Ericsson?
What is Ericsson?
 Swedish telecommunications equipment
manufacturer, founded in 1876.
 largest supplier of mobile systems in the
world
 Today it presents in more than 140
countries. Its headquarters are located in
Stockholm, Sweden.
 In 2004, Ericsson is has been given a fresh
start in the form of a joint venture with
Sony called Sony Ericsson.
Products and Services
Ericsson provides communication
networks, enabling everything from
traditional phone calls to corporate
data links, Internet communications
and mobile phone services.
Its products range stretches from the
latest mobile handsets to broadband
Internet access devices and network
routers.
Notable products
 Sony Ericsson t68 -- first Ericsson
mobile phone with color display.
Small and light, it was probably best
phone of its time.
Swedish
Government
Enterprises
Vattenfall
 Literally “Waterfall”
 A Sweden energy company
 One of the leading energy producers
in Northern Europe
 Wholly owned by the state of
Sweden
 About 8000 employees
Services Provided By
Vattenfall
 Focus on generation, distribution and
sales of electricity and heat
 Offer private customers telephony
(more than 100000 customers
 Provide customized energy solution
and consulting and contracting
services
Figures about Vattenfall
 About 50% of Sweden’s electricity
production
 About 1.3 million customers in the
industrial and household sectors in
Nordic countries (20% of the Nordic
electricity market)
END