Your SlideShare is downloading. ×
  • Like
Group 3z Poland Project Presentation Polaris
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Group 3z Poland Project Presentation Polaris


Market Entry Analysis and Proposal for the Polish Market Polaris Industries, Inc.

Market Entry Analysis and Proposal for the Polish Market Polaris Industries, Inc.

Published in Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. EMBA Team 3ZAlexandra BrooksRuben PedrozaSharon SingletonPolaris Industries, Inc.Poland Investment Proposal
  • 2. Polaris ProductsManufacturer of Off-RoadVehicles (ORV’s)Motorcycles, ATV’sSnow mobilesImages from Polaris Investor Presentation May 7, 2013
  • 3. Polaris’ International MarketInternational unit sales upEuropean (EU) Sales70% of international14% of total company1100 Dealers in EUOff-Road Vehicles areleading product line65 distributors inapproximately 130countries outside of NorthAmericaImages from Polaris Investor Presentation May 7, 2013
  • 4. Investment – Typical Projects Two typical projects: Development of new manufacturing facilities Acquire firm’s that build adjacent products
  • 5. Poland Proposal
  • 6. Poland Proposal SummaryInternational InvestmentWhere: PolandWhat: State-of-the-Art Manufacturing FacilityEstimated Cost: $30mProduct Focus: Off-Road Vehicles
  • 7. What’s Happening in Poland
  • 8. Poland- Geographic LocationMajor AutomotiveManufacturing CentersWroclawKrakow
  • 9. Poland- Country StatisticsCapital: WarsawOfficial Language: Polish25% English SpeakingPopulation: 38.5mGDP per Capita: $21,000Currency: Polish Zloty (PLN)Government: Parliamentary RepublicReligion: 90% Roman CatholicUnemployment Rate: 13%
  • 10. Poland- Business CultureFormal to informal social etiquetteCommon GreetingsFirm hand shake and eye contactBusiness cards are exchangedUse Surnames and Refer to Honorary TitlesMove to first name basis when invited toHigh trust society where relationships are keyCommon Relationship Building ActivitiesSmall talk at start of meetingsBusiness lunches and dinnersHierarchical decision making
  • 11. Why Poland?Create operational efficiency to support existingcustomer base in EUAlignment with strategic ObjectivesLocal market-ORV sales to farms is growing marketMinimal competition with key competitorsFirst to market in PolandEstablishing brand of choice
  • 12. Polaris Strategic Objectives
  • 13. Strategic ObjectivesPillar 1: Global Market LeadershipGreater than 33% of company revenuePillar 2: Operations as a Competitive AdvantagePillar 3: Strong Financial Net Income Margin10% or greater
  • 14. Poland’s Alignment- Global Market Leadership Geographic Location Located in Heart of Europe- Between Russia andEurope Existing Distribution Channels for Automotive Industry Strongest Emerging Economy in Europe GDP is 514.5 Bn USD in 2011 GDP growth is 4.3%
  • 15. Poland’s Alignment- Operations CompetitiveAdvantage Infrastructure for heavy manufacturing Sea and cargo shipping ports Rail and Highways runningEast/West and North/South Highly skilled labor force Pre-communist education focusedon training for Heavy Industry Labor Costs have been flat- High unemployment
  • 16. Poland’s Alignment- Strong FinancialPerformance Regional subsidies offset building costs and labor costsNational subsides to procure tax exemption:Up to 50% of two years gross labor costs of newlycreated jobsNational tax benefits in special economic zones:No corporate income taxFinancial Arbitrage using Exchange RatesLabor: $1.0 = 3.3 PLNSales: $1.3 = 1 €
  • 17. Risk Factors
  • 18. Risk FactorsEmployment contracts are required in Poland. Poland hasa strong labor union presencePolaris is non-unionTax benefits will expire in 2020Exchange rate benefit will expire once Poland fully joins theEU and adopts euroLaws are not quite up to US and EU standards, but they areimproving
  • 19. Conclusion
  • 20. ConclusionPoland aligns well with Polaris’ strategic pillarsNew factory will support future growth in EMEAcountriesBusiness Culture aligns with USBenefits of Investing in Poland:Financial arbitrageTax and local subsidiesKnowledgeable and inexpensive workforceGeographically connects European countries