MyOwnBag Corp.
A JV in Italy
Introduction
MyOwnBag Corporation is a US company providing high-end affordable handbags to the cosmopolitan woman. After successfully selling bags in the US they are looking to move to sell their bags globally. After performing thorough due diligence on the several countries, entrance strategies and possible partners we have decided to move into Italy, in a joint venture with an Italian leather producer, the Italian Leather Group. Italy is a hub of quality leather production in the world with a booming fashion industry. Using this partnership, the raw materials available in this region, and the laborers skilled in working with these materials- it will allow our business to capitalize on what this company and Italy have to offer. The following is a report on the situation of Italy, our business strategies and our plan for the future.
Political System
Italy abolished the monarchy in 1946 and switched to a democracy in 1984, after Mussolini’s fascism and the Second World War, in the form of perfect bicameralism with an equal power of both Parliamentary Houses. The President of the Republic is the head of the country holding a position for seven years. Today’s President, former Communist party member, Giorgio Napolitano has been unprecedentedly elected for the second term at the age of 87. The Parliament has no real powers as they cannot change the power distribution.
The most powers are concentrated in the hands of the Prime Minister. Current reforms incline towards assigning more substantial power to him. The head of the winning party is appointed as the President of the Council, i. e. Matteo Renzi, by the President of the Republic and has rights to propose Ministers. Anyone can be appointed as a Minister, being a member of a party or the Parliament is not necessary. The Ministers make up the Council of Ministers. Today’s Council is a democratic coalition.
The general direction of the...