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Norway Team 4: Becky Tibbenham Charlotte Windberg Taylor Jameson Matt Byler Summary Introduction to Norway History Demographics Culture Culture and Business Government The Economy Business Schools Tromsø Norway: Climate Varies from north to south and depends on elevation January July Oslo 19 62 Sognefjellhytta 13 42 Tromsø 25 53 Sognefjellhytta Oslo Natural Resources Richly endowed with natural resources Petroleum Hydropower Fish Forestry Minerals and mining Highly dependent on petroleum sector Accounts for half of all exports and 30%+ of total state revenue Third-largest gas exporter in world Down to 7th globally in crude oil exporter as production declined Environment Environmental Problems Water pollution Acid rain Air pollution Government Response “Norway is to be an international leader in environmental policy” Working to achieve international agreement on climate change Seeks global emissions cut 85% by 2050 Wants to ensure polar regions monitored closely History 1814 Part of Denmark Naval Blockade by King of Sweden Declared an independent country Joined with Sweden in union later in year 1905 Union was dissolved Norway became fully independent History Remained neutral in both WWI and WWII, but occupied by German forces for most WWII 1960’s Discovery of Oil and Gas reserves Became very rich Fund extensive social welfare system Demographics Death Rate: One of lowest in world(8.6 for 1,000) Women Average Life: 83.1 years Men Average Life: 78.6 years Birth Rate:10.9 births for 1,000 people Growth Rate: 0.33% Demographics: Population Norway Men Women United States 0 200 400 (in millions) Demographics: Population By Age Age 0-14 Age 15-64 Age 65+ Demographics: Ethnic Groups Five largest immigrant groups: Polish, Swedish, Pakistani, Iraqi, Somali Other immigrant groups: Armenians, Greeks Ethnic Issues Integration: language problems Employment: unusual names do not get interviews Crime Demographics: Class Structure Welfare state Equitable distribution of wealth Responsibility for the less fortunate Equal health care, pension, education Norwegian values: people, environment More equitable than in other countries Demographics: Family Structure and Roles Number of children: 75% have 1 or 2 siblings, 20% have 0 Waiting longer: Average age 26 (up 3 years from 1970) Children live with biological parents Not necessarily married 46% of children born to unwed parents (1995) Parents more physically present Maternity/Paternity Leave Ten days of leave per year to care for child Work-Life balance (less work hours) Demographics: Religion When born, automatically added to list of Protestant Christians unless “sign out” of the church. When baptized, registered as members of Church of Norway Many remain in church to use services, which have strong cultural standing Baptism Confirmation Marriage Burial Demographics: Religion Christianity: Evangelical Lutheran Church (82.7%) Other religious or philosophical communities (8.6%) Roman Catholics Orthodox Christians Jews Hindus Buddhists Sikhs Non-religious (8.7%) Demographics: Religion Least religious country in Western Europe Statistics: 29% Believe in a church or deity 70% Say they have faith 32% Practice their faith 12% Attend church services each month 26% Atheist Demographics: Education Graduation Rates Elementary: 100% High School: 90% (within 5 years) University: 70% attend, 41% graduate Literacy Rate: 99% Public education is free, so very few private schools Demographics: Education Higher Education: Admissions: General University Admissions Certificate Types of Colleges Universities University Colleges Private Schools Demographics: Education Universities: 70 total institutions 7 universities 9 specialized universities 24 university colleges Various private university colleges Higher Education: 90% Public Institutions 10% Private Institutions Demographics: Education Private Institutions Primarily in courses that have limited spots in public schools Most are foundations, either autonomous or religious Pay school fees equivalent to entire cost of education Norwegian Loan Fund System Apprenticeship Programs Demographics: Employment 1980: less than half of Norwegian women were employed or active job seekers. Since 1972, weekly work time for men has decreased by five hours (a.k.a. they work less) 1970s to 1983/1984 recession, unemployment near 2% 2009: unemployment was 3.2% Demographic: Employment Majority of adult population in Norway is employed. 80% 70% women work 50% 80% men work 2.3 million person labor market 70% 60% 40% 30% Women 20% Men 10% 0% United States Norway Culture: Dimensions Kluckhohn & Strodtbeck Culture: Dimensions Hofstede Power Distance Individualism 100 80 90 70 80 60 70 60 50 50 40 40 30 30 20 20 10 10 0 0 Norway U.S. U.K. China Norway U.S. U.K. China Culture: Dimensions Hofstede Masculinity Uncertainty Avoidance Index 70 50 45 60 40 50 35 40 30 30 20 25 15 20 10 10 5 0 0 Norway U.S. U.K. China Norway U.S. U.K. China Culture: Dimensions Hofstede Long Term Orientation 120 100 80 60 40 20 0 Norway U.S. U.K. China Culture: Dimensions Trompenaar & Hampden-Turner Culture: Dimensions Trompenaar & Hampden-Turner Culture: Values Individualistic society: comparable to U.S. Value Hard work, honesty, modesty Environment-friendly Value animal protection Health conscious Culture: Values Geographic position: Scandavia Jante Law High success and achievement negatively portrayed Emphasis on collective success Gives sense of modesty; Egalitarian outlook Negative light on those who do not conform Ironic because individualistic society Culture: Customs Greet with handshake, eye contact, smile Gift giving only at Christmas or closing deal Tipping not expected, but not uncommon Holidays Constitution Day: May 17 Christmas New Year’s Eve Midsummer’s Eve (Summer Solstice) Easter (non-religious) Culture: Communication Language Norwegian: 95% first language Most fluent in English Many speak Swedish, Danish, German, French, and Spanish Topics Avoid: government, culture, salary, family, personal background, complaints high cost of living Okay: Norwegian culture, politics, nature, environment, current events, travel Culture: Leisure & Arts Sports Skiing: National Sport Handball Soccer Fishing: Deep sea, Freshwater Handball Hiking (autumn, late summer) Dog Sledding (winter) Scuba Diving Mountain Climbing Culture: Leisure & Arts Landscape Painters: Dahl, Kielland, Baker, Thaulow Karveskurd (chip carving) Rosemaling (rose painting) Most Famous Artist: Edvard Munch “The Scream” Culture: Food & Eating Be punctual No business discussion during casual dining Table manners: use utensils Toasts Offer to help clean up Reciprocate invitation Culture and Business: Conflict & Negotiation If possible, avoid conflict If not possible, deal with directly or have mediator Decisions by consensus Cost-driven Straight-to-the-point No bargaining No discounts Commitments must be honored Culture and Business: Ethics 2010 Freedom Score: 69.4 (37th most free in world) Transparency International Corruption Perception Index: 14th of 179 countries 2010: 10th least corrupt country in world (above US!) Corrupt activity: criminal offense Freedom to start, operate, and close a business Starting business: average of 7 days (world average: 35) Obtaining license: less than world average of 18 procedures Bankruptcy: Simple and straightforward Culture and Business: Impressions of Americans Hollywood-like OR fat and lazy Friendly but loud Only interested in America Convenient: Drive-thru restaurants Shopping These views are similar to what other European countries believe Culture and Business: Impressions of American Businesses Efficient Individuality, imagination, initiative, inventive, independence of mind Often approving: brainstorming Mecca High regard Students go to study in the US Business schools going to American-style curriculum Culture and Business: Business Relationships Member of the European Free Trade Association (EFTA) Founding member of General Agreement on Tariffs and Trade (GATT) G10 group within WTO Traditionally strongest trade relationships with closest geographic neighbors Culture and Business: Business Relationships Casual leadership culture Low power distance Less formal Employees’ input valued Egalitarian Promotions: achievement Leader’s Role: Harness talent of employees Culture and Business: Management Practices Values hard work Motivating employees Give challenging tasks Benefits other than salary (tuition) Organizational structure: Depends on size Large: Hierarchy Small: Flat Culture and Business: Women in the Workplace Strong presence: 50% of workforce Government positions: 50% women President of Parliament Commissioner of Oslo Police President of University of Oslo Business positions: Executives: 3.5% women Middle Managers: 7.5% women Work conflicts with “home duties” Culture and Business: Human Resources Practices Not well trained prior to employment Classes very lecture-oriented Few presentations compared to USA Laws No national minimum wage Working Environment Act: Safety + Benefits Recruiting: Interviews (similar to United States) Promotions: Based on individual achievement Culture and Business: Human Resources Practices Compensation Base salary Vacation time: 21 days Public Holidays Sick time & Maternity leave Disability Extras: bonuses, company car, cell phone, newspaper Pension National: Required contribution from employer and employee Company: Required defined benefit or defined contribution New Law 2006: Based on years and salary Culture and Business: Business Practice Norms Similar to United States Clothing dependent on individual company Generally less formal Business cards: given, but no distinct tradition Work week 40 hours per week 9 hours per day Overtime: 40%+ normal hourly rate Sundays and Public Holidays are statutory holidays Culture and Business: Business Practice Norms Meetings Plan early Be on time! Very little small talk Very straightforward At beginning, shake hands Build trust: Don’t change project Emphasize facts, benefits, and profitability Show usefulness and technical quality Keep deadlines Culture and Business: Business Practice Norms Dos & Don’ts Do be on time Do keep to your project’s schedule Be careful about culture-related humor Don’t give gifts excessively Don’t give the hard sell Don’t misinterpret their less expressive body language Don’t interrupt the speaker Don’t complain about the cost of living Don’t smoke without asking Government Norway is a unitary constitutional monarchy Parliamentary system King of Norway is the head of state Prime Minister is the head of government Similar to UK Welfare state Government Rights for people: Free public health care free Both parents get 12 months paid parental leave Pension for everyone All children right to kindergarten All 16-19 year olds right to 3 years of high school Government: Legal System Main Crime: Economic Constitution 1814 Three branches: legislative, executive and judicial Also mixture of: Customary Law Civil Law Common Law Government and Business US and Norway friendly association Foreign Policy Magazine ranks Norway last in its Failed States Index for 2009, so Norway is the world’s most wellfunctioning and stable country Norway will remain among the richest countries in world for foreseeable future Government and Business Infrastructure Domestic & International travel: airlines, buses, trains, car ferries to other European countries Communications: mobile phone coverage, Internet usage Technology One of most advanced networks in Europe Domestic Satellite System Advancements in petroleum sector Several higher education schools devoted to science and technology Government and Business: Infrastructure Issues Energy requirements Electricity generation 99% from 27 million kilowatts of hydroelectric capacity 850 hydroelectric plants Often exports electricity to western Europe Top consumer of electricity in the world (per person) Renewable Development (soil, biomass, wind) Wind Farm Development Off western coast Invested $4 billion 4 major wind farms online in last 10 years Government and Business: Infrastructure Issues Road network most dense on east coast Building roads and railroads difficult and expensive Rugged terrain Water traffic important in many places Merchant Marine Merchant Marine: 1831 vessels, one of largest in world Oslo is the main port Government and Business: Infrastructure Issues Tariffs: Rating of 10 in 1996, down to 4 in 2008 The Economy Economy is a developed mixed economy with heavy state-ownership in strategic areas Almost half of the GDP goes back to the national treasury and is distributed through the state budget. So through taxes, the government distributes money to the society through the state budget. Economic Statistics (as of July 2010) 10.00% 8.00% 6.00% Inflation 4.00% Unemployment 2.00% 0.00% United States -2.00% Norway Economic Statistics (GDP Comparison) 16,000 14,000 12,000 10,000 USA (GDP) 8,000 6,000 4,000 2,000 0 2000 2005 2010 (in billions) Economic Statistics (GDP Per Capita Comparison) 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 United States Norway 2000 2005 2009 (in billions) Economic Statistics (GDP Sector Comparison) Norway United States Agriculture Industry Services Economy: Taxes Income tax: 28% Applies to all forms of income of the corporate bodies; Generally lower than EU average VAT tax: 25% standard 14% for food and drinks 7% for move theater tickets and public transportation Largest source of government revenue Economy: Currency Currency: Norwegian Kroner ($1 = 5.85 NOK) Oslo Stock Exchange Main market for trading in shares of Norwegian companies Petro exchange: driven by oil Economy: Main Industries Shipping Forestry Petroleum Fisheries Agriculture has declined Public sector among largest as percentage of GDP Economy: Relationship with EU Largest Trade Partner: EU Growing stronger Diminished trade barriers EU becoming stronger EU’s 4th largest import partner €91.85 billion Behind only China, Russia, and United States EU’s 6th largest export partner €43.58 billion Behind United States, Russia, Switzerland, China, and Turkey Economy: Imports and Exports Imports Machinery and equipment, chemicals, metals, foodstuffs Main partners (2008): Sweden 14.3%, Germany 13.4%, Denmark 6.8%, China 6.4%, UK 5.9%, USA 5.4% Netherlands 4.1% Exports Petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish Main partners (2008): UK 27%, Germany 12.8%, Netherlands 10.4%, France 9.4%, Sweden 6.5%, US 4.5% MBA Students Marius Sebastian Ramnæs Kine Sofie Espedal Knudsen Frikk Aleksander Brynestad Stokke Ann Sofi Grantangen Strysse MBA Students: Business Schools Norwegian University of Science and Technology (NTNU) Norwegian School of Economics and Business Administration Norwegian School of Management (BI) Buskerud University Norway vs. USA MBA Students Part-Time/Full-Time Norway USA Marius Full-time Full-time Matt Kine Full-time Full-time Taylor Frikk Full-time Full-time Becky Ann Full-time Full-time Charlotte Norway vs. USA MBA Students Number of Languages Norway USA Marius 2 Norwegian & English 2 Spanish & English Matt Kine 2 Norwegian & English 2 Portuguese & English Taylor & 1 (basic Arabic & Chinese) Becky & 2 Norwegian & English Charlotte Frikk 2 Norwegian English Ann 2 Norwegian English Norway vs. USA MBA Students Work Experience Norway USA Marius Grocery store cashier 4 years veterinarian technician Matt Kine 3 years in Shipping industry 3 years Agriculture Taylor Frikk Part-time, selfemployed 3 years HR 1 yr teaching 1 yr Bus Intern Becky Ann 1 year as accountant Charlotte Norway vs. USA MBA Students Concentration Norway USA Marius Control Theory General Business Matt Kine International Business General Business Taylor Frikk Finance Management Becky Ann General Business Charlotte Norway vs. USA MBA Students Job Post-Graduation Norway USA Marius Management Medical School Matt Kine Continue in shipping industry Sales and Finance (international) Taylor Frikk Entrepreneurial Creative/Dyna mic Job HR or Educational Administration Becky Ann Business Manager Charlotte
