INDUSTRIAL DEVELOPMENT AGENCY'

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CAPSTONE INTERNATIONAL STRATEGY TEAM
PROJECT Module BMG900J1 MBA 2004

• IRELAND
• THE WRIGHT CHOICE FOR WRIGHTBUS
• Executive Client Team
• Colin Neill 15387402
• Gary Nicholl 11146202
• Richard Robinson 14841202
• Maggie Flynn 14565002
• Irene Millar 14160001

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OVERVIEW

• IDA IRELAND More than an investment agency
• IRELAND More than tax benefits and cost savings
• WRIGHTBUS The Diamond of Competitive Advantage
• WRIGHTBUS An Environmental Analysis
• WRIGHTBUS An Industry Environmental Analysis
• WRIGHTBUS Competitive Position
• WRIGHTBUS The Value Chain

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"We will win for Ireland, its people and its
regions, the best in international innovation and
investment so as to contribute to the continued
transformation of Ireland to a world-leading
society which is rich in creativity, learning and
personal and social well-being.We will work in
partnerships with other organisations to enhance
the best of Irish capabilities and talents and
match them to the best of global investment.We
will carry out our mission with integrity,
professional excellence and responsiveness to all
with whom we work or are in contact."
OUR MISSION
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IDA IRELANDMORE THAN AN INVESTMENT AGENGY

• IDA IRELAND Investment Partners, promoting
• Foreign investment in Ireland
• Matching needs of the global markets
• Links between business education
• Ensuring skills, research capabilities are in
  place
• The competitive needs of the economy
• Infrastructure, business support, telecoms,
  regulation

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IRELANDS FAVOURABLE ECONOMIC FISCAL ENVIRONMENT

• One of the most beneficial corporate tax
  environments in the world 12.5

Source Deloitte Touche, 2004
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IRELANDS FAVOURABLE ECONOMIC FISCAL ENVIRONMENT

• RD Credit potential tax write-off 32.5
• Available to Irish tax-resident companies
• Intellectual Property (IP)
• Stamp duty exemption on sales transfers
• HQ Holding companies capital gains tax
  exemption
• Available to Irish resident companies

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IRELAND MORE THAN TAX BENEFITS AND COST SAVINGS

• Knowledge, innovation flexibility
• The ability to adopt adapt to change in a
  unique way
• Meeting the demands of the world markets
• A young skilled educated workforce
• Location of choice 1050 overseas companies

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WRIGHTBUS IN IRELANDTHE DIAMOND OF
COMPETITIVEADVANTAGE
CHANCE
FIRM STRATEGY STRUCTURE RIVALS
FACTOR CONDITIONS
DEMAND CONDITIONS
RELATED SUPPORTING INDUSTRIES
THE IRISH GOVERNMENT
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WRIGHTBUS IN IRELAND

• Strategy
• - High Quality
• - Differentiation
• - Low cost of ownership
• Structure
• - Family owned
• - Highly trained / quality workforce
• Rivalry
• -Based on superior quality

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WRIGHTBUS IN IRELAND

• Impressive economic growth
• Stable economy
• Young well educated workforce
• - engineering skills
• - highly motivated
• - highly productive
• Favourable tax environment
• Excellent Infrastructure

• .

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WRIGHTBUS IN IRELAND

• Mechanical Engineering
• Sheet Metal Workers
• Glass Manufacturing
• Finish/trim

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WRIGHTBUS IN IRELAND

• Local Market
• European Market
• Far Eastern Market
• American Market

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WRIGHTBUS IN IRELAND

• Favourable tax environment
• Financial Incentives grants
• Pro-business environment
• Stable economic environment
• Stable political environment

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WRIGHTBUS IN IRELAND AN ENVIRONMENTAL
ANALYSESPORTERS 5 FORCES

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WRIGHTBUS IN IRELANDINDUSTRY ENVIRONMENT ANALYSIS

• Weaknesses
• Development costs
• Lack of qualified workforce
• Lack of RD support from Gov.

• Threats
• Rivals
• Suppliers
• Substitutes

Threats
WRIGHTBUS THE IDA IN IRELAND

• Opportunities
• Increase partnerships
• Increase capacity
• Increase profitability
• Rapid time to production

• Strengths
• Expertise
• Technology
• Existing supplier base

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WRIGHTBUSS COMPETITIVE POSITION THE STRATEGY
COMPASS
Competitive Position
C
Asset Utilisation
M
A
Leadership
Markets Addressed
L
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WRIGHTBUSS COMPETITIVE POSITION THE STRATEGY
COMPASS

12m Niche Market
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WRIGHTBUSS COMPETITIVE POSITIONTHE STRATEGY
COMPASS

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WRIGHTBUSS COMPETITIVE POSITION THE STRATEGY
COMPASS

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WRIGHTBUSS COMPETITIVE POSITION THE STRATEGY
COMPASS
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WRIGHTBUSS COMPETITIVE POSITION SUMMARY

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WRIGHTBUS THE VALUE CHAIN

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Firm Infrastructure 8
M
Human Resource Management 2.5
A
Technology Development 5
R
Procurement 3
G
Operations 61
I
Inbound Logistics 3.0
Service 5.5
Outbound Logistics 3.5
Marketing Sales 1.5
N

2003 sales 60 Million
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WRIGHTBUS IN IRELANDTHE STRATEGIC SCHISM
Wrightbus
Expertise
Grant Aid
Skills Base
Brand
Superior R D
Move Create Innovate Quality by Design
IT Network
Management
Clusters
Technical Innovation
Infrastructure
Market Position
Education
Finance
European Gateway
Innovative Solutions
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WRIGHTBUS IN IRELANDTHE FIGURES

• Start-up costs 50
• Operating costs Comparable
• Training costs 100
• Taxation 12.5

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WRIGHTBUS IN IRELANDTHE FIGURES

• Equity Stake
• - 5 preference shares
• - 5 year payback

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CONCLUSIONWRIGHTBUS IN IRELANDTHE WRIGHT
CHOICE
Mutual Benefits - - Sharing Risk