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Post by pieter on Nov 28, 2018 8:58:41 GMT -7
Bringing Poland to the world and the world to Poland Poland Today is the media interface bringing Poland to the world and the world to Poland. Through print, digital and event platforms we provide information and networking opportunities to integrate both Poles and foreigners interested in Poland. Poland Today is business-focused, but understands that doing business well requires a broader political, cultural and societal context. By providing a common platform for both Poles and foreigners we connect businesspeople to the contacts and knowledge they need to succeed in Poland and internationally. Poland Today is distinguished by an international perspective that permeates every aspect of the company. An international team of Poles and non-Poles passionate about the country are complemented by contributors including top international journalists and foreign correspondents. We publish in English to give the broadest international platform. We are independent: we are not affiliated with any institution, nor with any political party.
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Post by pieter on Nov 28, 2018 9:03:07 GMT -7
CURRENT AFFAIRSWhat Poland can learn from the Hidden ChampionsInternationalization and globalization offer unlimited growth opportunities. Since 2000, global per-capita exports have almost tripled. Even the current nationalistic trends are unlikely to stop globalization. They may slow it down for a few years, but the positive trend will continue. International business is usually associated with large corporations. This is true for most countries where we find an almost linear correlation between exports and the number of large firms. However, it’s not true for Germany, undoubtedly the most successful exporter among the larger countries. German per-capita exports are more than twice as high as those of France, the UK or Italy. In absolute terms, Germany exports more than France and the UK combined. The causes of this outstanding performance are not Germany’s large corporations but its mid-sized exporters, especially the “Hidden Champion”. A Hidden Champion is a company that is in its market one of the top three in the world or number one on its continent, but only mid-sized and little-known to the general public. I have identified more than 3000 Hidden Champions worldwide, and 1300 of them are from Germany.
Why are these unknown global leaders so successful and what can Polish companies learn from them? The most important lessons are:
1 - Ambitious goals The Hidden Champions set themselves extremely ambitious goals. They want to be the best in their markets and attain the market leadership position. Chemetall, the world market leader in special metals like lithium and cesium, says: “The goal of Chemetall is the worldwide technology and marketing leadership.” 3B Scientific, the world market leader in anatomical teaching aids, clearly states: “We want to become and stay no. 1 in the world.” And Rosen Group, the global market leader in pipeline inspection systems, has a similar claim: “It is our objective to be the world’s most competitive provider. We go far beyond present market requirements. We envision the market’s future needs.” Focus and depth Only focus leads to world class. The Hidden Champions are highly focused on their technologies and markets. This is reflected by the motto of Uhlmann, the world market leader in packaging systems for the pharmaceutical industry: “We always had one customer and will only have one customer in the future: the pharmaceutical industry. We only do one thing, but we do it right.” Flexi, the global leader in retractable dog leashes, says: “We only focus on one thing, but we do it better than anyone else.” This focus is combined with a deep value chain. Wanzl, the global leader in airport luggage carts, says: “We produce all parts ourselves, based on the quality standards we define.” Faber-Castell, the global leader in pencils, even produce their own wood for the pencil manufacturing. They operate 100 square kilometers of plantations in Brazil.
2 Globalization Focus makes a market small. How do the Hidden Champions make it big? By selling and marketing their products everywhere in the world. They do this through their own subsidiaries. Kärcher, the global leader in high-pressure water cleaners, has 107 subsidiaries in the world and intends to continue entering new countries until they are present in every country of the globe.
3 Innovation Global leadership cannot be attained through imitation, only through innovation. The Hidden Champions are extremely effective innovators and spend twice as much as a normal company on research and development. As a result, they have five times more patents per employee than large corporations. In their innovation activities they integrate customer needs and technology very effectively. While some Hidden Champions have been founded on breakthrough innovations, most of their novelties are incremental improvements, the sum of which leads to superior products and higher value-to-customer.
3 Closeness-to-customer The biggest strength of the Hidden Champions is not technology but the closeness to their customers. 38 percent of the Hidden Champion employees have regular customer contact, compared to only 8 percent of the employees of large companies. This creates a completely different culture and, ultimately, higher value-to-customer. As a consequence, the prices for the Hidden Champions’ products are 10-15 percent higher than the market average. Despite this price premium they are the market leaders.
4 Competitive advantages The Hidden Champions do not have one but several competitive advantages. Of greatest relevance is product quality, but service, advice, systems integration, reliability are also superior to what the competitors offer. Over the last ten years, the biggest increase in importance was in advice, systems integrations and ease-of-use, attributes that become more critical as the products get more complex.
5 Employees and leaders The Hidden Champions have “more work than heads”. This means that they are a little short of people, which is an enormous productivity driver. They have high performance cultures. Their employees are highly qualified. People turnover is extremely low. Only 2.7 percent of the employees leave them per year. This is extremely low, even compared to the German average of 7.3 percent, which is much lower than in other countries. The Hidden Champions spend twice as much on vocational training as the average firm, and they have upgraded the percentage of college and university graduates from 10 to 20 percent over the last ten years. The leadership style is ambivalent, authoritarian in the principles but flexible and participative in the details of implementation. The chief executives come into power at a young age, usually in their 30s. Women play a more important role than in large corporations. The most significant difference is the continuity of leadership. The average tenure of the Hidden Champions CEOs is 20 years, compared to six years for large corporations.
We summarize these lessons in three circles:
Lessons for Polish companies:
1 Nothing can replace entrepreneurial energy and ambitious goals. Poland has many young and inspired entrepreneurs. I suggest that these entrepreneurs set bigger goals for themselves and strive for European and even global market leadership. I know what I am talking about. When I founded Simon-Kucher & Partners we had the ambition to become the number one in our segment in the world. After 30 years, we have achieved this goal. Today Simon-Kucher the global leader in price consulting.
2 Focus, focus, focus! Only focus leads to world class. I see quite a few Polish entrepreneurs who think they can be excellent in different fields. This is an illusion. You only have the chance to become the best if you concentrate your competencies and capabilities on one field. You should combine this with a deep value chain. Don’t outsource any core competencies, because they are the defining elements of your uniqueness and superiority.
3 Go international early on. There are many things you cannot learn in Poland, only in more demanding foreign markets. This is again corroborated by my own experience. The first foreign market we entered was the US, not Austria or Switzerland. We were convinced that we would only make it in the world if we succeeded in the lion’s den of consulting, in America.
4 Innovation is indispensable, but combine it with closeness-to-customer. The decisive factor is how well you fulfill your customers’ needs. This is not a purely technological matter. Closeness-to-customer will lead you to understand the requirements of your customers very deeply and enable you to adjust your products or services accordingly.
5 Poland has a well-educated young generation; education and knowledge are not the bottleneck for Polish companies. The problems are application and internationalization. You need stamina and a long-term orientation. A quick initial public offering (IPO) is not the way to Hidden Championship. Stick to your knitting and don’t give up. It will take decades, not years or quarters. Again I can refer to my own experience. Simon-Kucher & Partners is now present in 24 countries, but this took us 30 years. And we still have a long way to go: The world has about 200 countries. My motto has always been Seneca’s: Per aspera ad astra – on rough roads to the stars.
6 Poland should build its economic future on mid-sized companies of the Hidden Champion type. The country is unlikely to create many global Fortune 500 corporations but has a good chance to succeed in the mid-sized sector. There are thousands of markets where you can become the global leader.
BY HERMANN SIMON 9 MAY 2017 Herman SimonProf. Dr. Dr. h.c. mult. Hermann Simon is founder and honorary chairman of Simon-Kucher & Partners, a global consultancy which operates 34 offices in 24 countries. His most recent book in Polish is “Pricing Man: Jak zarzadzanie cena moze odmienic biznes”.
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Post by pieter on Nov 28, 2018 9:09:34 GMT -7
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Post by pieter on Nov 28, 2018 9:16:12 GMT -7
Poland Balance of TradePoland recorded a trade deficit of EUR 449 million in September of 2018 compared to a EUR 430 million surplus in the corresponding month of the previous year. Imports surged 5.4 percent to EUR 18,132 million and exports rose only 0.3 percent to EUR 17,683 million. Considering the January to September period of 2018, the country registered a trade gap of EUR 2,876 million compared to a EUR 2,451 million surplus in the same period of 2017. Purchases grew at a faster 10.1 percent to EUR 212,726 million while sales advanced 7.3 percent to EUR 209,850 million. Balance of Trade in Poland averaged -592.13 EUR Million from 2000 until 2018, reaching an all time high of 783 EUR Million in June of 2016 and a record low of -2263 EUR Million in December of 2008.
For data, graphics see this link: tradingeconomics.com/poland/balance-of-trade
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Post by pieter on Nov 28, 2018 9:20:14 GMT -7
Economic forcasts from the worlds leading economistsPoland Economic OutlookNovember 27, 2018Poland’s economy continued defying expectations of an impending slowdown in the third quarter, matching the second quarter to record one of the best readings of the past decade. A breakdown by expenditure is still outstanding; that said, analysts have speculated that domestic demand again drove growth as it has done so over the past several quarters. Household spending and fixed investment likely posted robust gains on lower unemployment and heavy EU-linked structural funding, respectively, and seem to have offset tepid external demand from the European Union. Available data for the fourth quarter has thus far been upbeat: Consumers appear on track for another busy quarter as reflected by retail sales bouncing back in October and the jobless rate stable at its lowest in decades. Nevertheless, analysts have continued to forecast a slowdown in light of deteriorating supply-side metrics.Poland Economic GrowthA maturing business cycle is expected to muffle the growth rate over the next few years amid higher inflation and as gains in the labor market taper. As it stands, fixed investment should benefit from low interest rates and higher absorption of EU-linked funds. However, external-sector anxieties—especially over a broad slowdown across the EU and a further pullback in global trade—pose the key short-term risks. Meanwhile, uncertainty surrounding the 2021–2027 EU budget hangs over the long-term outlook. FocusEconomics panelists expect growth of 3.6% in 2019, which is unchanged from last month’s forecast, and 3.1% in 2020.
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Post by pieter on Nov 28, 2018 11:52:29 GMT -7
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Post by pieter on Nov 28, 2018 13:13:12 GMT -7
People hold a giant Polish and EU flag in Warsaw to mark the 60th anniversary of the Treaty of Rome | Wojtek Radwanski/AFP via Getty ImagesLETTER TO THE EDITORPoland is Europe’s ‘dynamic’ futureBrussels and Warsaw may be quarrelling now, but the country will stay an integral part of the bloc.By PIOTR ARAK 9/4/18, 1:17 PM CET Updated 9/6/18, 5:57 PM CETWARSAW — Poland is different from the rest of Europe, the author of “Poland is Europe’s future — but which one?” (August 2018) argues. This is true — but it is not necessarily a bad thing.Poland is indeed Europe’s future. It is younger, more dynamic than “old Europe.” It’s been 14 years since Poland joined the EU, and it is showing the “old club” that it is ready to rock the boat. But Poles are also devoted Europeans: According to European Social Survey, some 86 percent of Poles would vote to join the EU if they were asked again today. These are some of the highest numbers across the bloc. Europe may be quarrelling more now, as families do, but young and old members will come together in the end. Poland will mature. The European Commission this year proposed beginning accession negotiations with Macedonia and Albania. By the time they join, Poland will no longer be considered a “new member state.” In 2020, our country will overtake Portugal in terms of GDP per capita and will be on its way to having a GDP per inhabitant higher than Italy. Experts have also predicted Poland could step into the space left behind by Britain when it leaves the EU. Without the U.K., Germany and France will be missing a partner. This is an opportunity for Warsaw. But it will need more soft power and even faster economic growth. The government’s strategy for responsible development will ensure continued growth. Poland has increased its VAT collection and taxation of the wealthy, and grown its capital for investment and social solidarity. It is following in the footsteps of many of the older EU members that built competitive economies focused on export and innovation to ensure income security. In the next seven years, Poland — and its fellow Central and Eastern Europe countries — will become full-fledged adults within the European community. They will join the ranks of their older and more experienced peers to jointly “deal with” countries such as Albania and Macedonia, infants with their own problems. They’ll want to know about anti-corruption procedures, effective spending of European funds or carrying out reforms. On all of these issues, Poland will be one of the best placed members to share its experience with other countries. Piotr ArakDeputy head of Polish Economic Institute Warsaw, Poland
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Post by pieter on Nov 28, 2018 13:20:45 GMT -7
The First NewsPoland moving towards greater “social solidarity” says reportNEWS & POLITICS | BUSINESSAnne Chatham August 30, 2018“Poland is seeking a balance between liberalism and solidarism,” said Paweł Borys - Tytus Żmijewski/PAPA new report claims that Poland is moving towards greater solidarity owing to the government' tax-spending mix. Entitled “Capitalism the Polish way”, the report, compiled by the Polish Economic Institute, which is currently being established, investigates the Polish economic model and how it has changed in recent years. Prepared for the Prime Minister’s Chancellery and based on detailed analysis of data, it shows how Poland has been moving towards greater social ‘solidarity’ -- i.e. words moving the economy towards a stronger social welfare model. “Poland is seeking a balance between liberalism and solidarism,” said Paweł Borys, head of the Polish Development Fund (PFR), introducing the report in Warsaw on August 22. “This can be considered a balanced development, with no extremes.” As the report shows, some areas of the Polish economy remain more liberal than others, like the labour market. In public finances, solidarism dominates, having increased since Law and Justice (PiS) won the elections in October 2015. “The new economic model being built by Mateusz Morawiecki’s government is a tax-spending mix. On the one hand, we have higher VAT collection and taxation of the richest Poles, and on the other capital for investment and social solidarism,” said Bogusław Bławat, director of the Institute for Market, Consumption and Business Cycle Research (IBRKK). Poland spent 2.5% of GDP on family policy in 2016, putting it in sixth place in the EU and eighth among the developed countries surveyed in the report, between Estonia and France (Denmark, Sweden and Luxembourg topped the list). This is largely because of the 500+ programme introduced PiS government in April 2016, which offers a monthly payment of 500 złoty (around 120 euros) per child, from the second onwards (and from the first in low-income families). Despite these changes, continuing to fight poverty remains a challenge for Poland, the report notes. Meanwhile, social inequality may be bigger than generally assumed. “It is possible that official social inequalities in Poland are underestimated, as the latest research using tax data shows that our country is closer to China than Western Europe in terms of income inequalities,” explained the Institute’s deputy director Piotr Arak, who presented the report. The Polish Economic Institute currently being established will replace the IBRKK. Based in Warsaw, it will support policy-making by providing the government with in-depth economic and social research.
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Post by karl on Nov 28, 2018 15:08:13 GMT -7
Pieter An excellent presentation of Poland in reality in as far as market share, production and business model. With this, the vast potential that has been Poland for some many years. Perhaps it is not fair to compare Polish potential with German market share, for many years, manufacturing and export of both products and export of German facturies has been the life blood of German existence. For all of this,has been for also many years that could have been Poland as well. For every thing is in past and present, for Poland to do as simuler. But, for why not? Many stumbling blocks to Polish success in the International market has been self made. For not as a single situation or factor, but a seemingly concentration of their home market to satisfy only their own needs. Yes, of course, Polish exports may be seen in home appliences, clothing and such. But, where are the polish exports in Steel, Automobiles, aircraft, heavy machinery, medical machines such as MIR's and such? The Poles have an excellent market practically next door to them and yet they try in every manner of insult to deny them selves that open market, and that is the Russian. The Russian market is practically an open book of needs that at this time is practically only filled by German exports. Even the Americans, although keeping a lid on it, have teamed up for some years with Russian firms in aviation. If to observe the closeness in Russian commercial aviation, will be noticed some very remarkable closeness of Boeing engineering. The American market is another open book of export. Even with the present Trump situation, and with the currant and past vastness of American industry, German exported facturies are building and selling German autos for their home market. Not to cut our selves out, but this could have been Polish manufacturing with Polish auto facturies in this stead. financialobserver.eu/poland/trade-between-poland-and-germany-reaches-record-levels/Yes, although this is not in my field of concern, there is a tremendus potentual in Poland for manufacturing and exporting, but it is simply not being used. Potentual is one thing, but results is reality. Please of noten: The reply my self have given is in no manner of intent of insult to our Polish friends here, or as a manner of demeaning in any way the Polish state. But simply a reply of the state of affairs at present and past as noted in the above reply. Karl
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Post by Jaga on Nov 28, 2018 19:06:20 GMT -7
Pieter,
thanks. I will be checking this website from time to time.... it sound quite business like and there are some generalizations there. So, I am not sure yet....
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Post by pieter on Nov 29, 2018 11:39:37 GMT -7
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