BONFIGLIO CONSULTING

Bonfiglio Consulting overall recommends that REI expand to Sweden. We came to this decision through research in the following areas.

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Geography

 

The geography department of Bonfiglio Consulting would overall recommend that REI expands to Sweden. Sweden's diversity of climates allows for outdoor sports to occur year-round, making it a good place to have an REI. Furthermore, the geography department recommends that REI choose Stockholm as the city that they expand to. Stockholm is the population center of Sweden and is also in roughly the center of the country. Additionally, Sweden's largest airport is in Stockholm, which would aid e-commerce efforts.

 

Demography

 

Demographic trends are an important consideration in REI's decision to expand to Sweden. The fact that Sweden has an aging population could be a cause for concern for other companies. However, this could be a good thing for REI, as retired people have more time for leisure activities, like skiing, hiking, and water sports. Additionally, although Sweden's native-born population is slightly decreasing, the overall population is increasing because of immigration. This is also good for REI because REI would not want to expand to a country that has a decreasing population.

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Government

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Sweden's government and business regulations are important things to consider when starting a business like REI. Luckily, both factors have positive implications for REI and Bonfiglio Consulting would highly recommend that REI expands to Sweden. Especially since there is no license or corporate tax payable necessary for this business, it would be highly profitable for REI to expand. Even relocating managers and their families would be fairly easy considering the accessibility to permits for work.  

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Economy

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Overall the economic value Sweden has to offer entices REI to induce itself. Low corporate tax, rapid expansion, positive government interventional help, and high-ranking business practices implicates that REI can fit in well with other competing establishment. The nominal GDP is ranked 21st whereas GDP by PPP is ranked 33rd in the world. Sweden’s per capita gross national product (GNP) is among the highest in the world, but so are its taxes. Through the business aspect, Sweden proves itself as an advocate for the growth in multiple companies.

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Religion & Holidays

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Tourism brings in 14 billion dollars, which is 3 times the amount the mining industry brings in

•  Holidays and vacations are spent recreationally, meaning a vast majority of the Swedish population

  • 70-80% of population reports to hiking

  • Physical exercise increased from 46% in 1980 to 74% in 2010

  • In December 2010 the Swedish parliament passed a government bill “the future of Outdoor Recreation” in which outdoor recreation was monitored and evaluated in order to greater implement policies serving the needs of the general public.

  • Only 1% of visitor nights in the Swedish mountains were generated by someone outside of Europe. 4% came from Europe outside of Scandinavia and 9% from Scandinavia outside of SwedenAlpine skiing and snowmobiling have grown, and hiking, backpacking, and cross country skiing have remained stable

    • Recent increase of mushroom hunting in national forests

    • Recreation has become increasingly mechanized, meaning there is a greater demand of consumers in need of products

Customs & Etiquette

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“Lagom” ideology prevents employees from overworking, there is a definite separation of work and recreation. Employers cannot overwork employees and must be transparent and simplify demands. The“Fika” coffee tradition in the workplace exemplifies the need Swedish people feel to take time to themselves, in order for work to be enjoyable. Free time is to be spent with friends and family, on holidays there is an emphasis upon returning to nature and spending times outside. Sweden is ranked 3rd in English in the EF English Proficiency Index, and English is taught in all levels of public education making the transition from a primarily US company to an international asset easier.

Sports, Arts, and Entertainment 

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Sports, Arts and Entertainment are the preliminary factors that establish the countries inclinational steps when engaging themselves within a society. Having a strong historical development background, traditions from the 1770’s carryout to modern day. The Gustavian era sets the foundation in what society today implicates. This all intertwines with how the community functions and go about their fashion basis. With REI, the community benefits from the supplemental product that impacts their day to day uses. Jogging, hiking, canoeing, and other active ideologies the community abides by are all provided at REI. Sweden is a prime destination for recreational services to correspond to everyday life of a swede.