International Business Case PPT

1. Group 15 WASANA KAHATAGOLLE GEDARA PARAMI SAPUTHANTHRI IGNATEVA MARINA SARBAD ANSARI

Nokian Tire Case
GROUP 15
WA S A N A K A H ATA G O L L E G E D A R A
PA R A M I S A P U T H A N T H R I
I G N AT E VA M A R I N A
SARBAD ANSARI

2.

Content
Introducing the Company
The company's plight during the
Ukraine-Russia War
Two major choices
Alternatives

3. Internal Analysis (SWOT)

I N T E R N A L A N A LY S I S ( S W O T )
Strengths – high quality winter tires, production factories, perfect
operations, and corporate culture.
Weaknesses – geopolitical crisis, stock price reduces drastically
Opportunities – Establishment in Slovakia
Threats – Geopolitical sanctions, government interference, and
competition

4. External Analysis PESTLE  

E X T E R N A L A N A LY S I S P E S T L E
P Slovakia is a member of the EU and NATO.It is access to the European market without duties, structural funds,
general political stability and predictability in the business environment
E Slovakia is the world leader in the production of cars. Building a new plant in Slovakia is a big expense,
according to CAPEX. Operating cost are below the EU average
S Slovakia has personnel with experience in the automotive industry and related fields
T Technology Center has been opened in the Trenčínská Teplí region.Slovakia also has technical universities that
train specialists
L Slovakia ranks 45th in the world on the World Bank's Ease of Doing Business Index.
E Green Slovakia strategy until 2030

5. External Analysis Porter's 5 Force

E X T E R N A L A N A LY S I S P O R T E R ' S 5 F O R C E
Strength/Evaluation
Determination of availability
Probability of new rivals coming in
High
Customer Influence
Average
Supplier Impact
Low
Substitute products
Low
Degree of rivalry
Average

6.

Strategic Options and Evaluation & Recommendation
Option 1: Stay in Russia
•Avoids new costs but high political &
sanctions risk
•Poor long-term fit
Option 2: Exit & Relocate to Slovakia
•Stable location, stronger supply chain,
ESG-friendly
•Best strategic match despite high
investment
Option 3: Exit Without Relocation
•Removes risk but loses capacity and
competitiveness
Decision Scores:
•Stay in Russia: 9/25
•Exit and Relocate: 23/25
•Exit without Relocation: 14/25
Best Option:
SECOND OPTION: Exit Russia and
relocate production to Slovakia
•Lowest long-term risk
•Maintains production capacity
•Improves reputation and
sustainability

7. Financial Analysis

F I N A N C I A L A N A LY S I S
• High initial investment for new factory,
machinery, and technology
• Higher labor costs in Slovakia, but still cheaper
than Western Europe
• Government incentives help reduce costs
• Temporary supply chain and training expenses
• Short-term costs increase, but long-term risks
and volatility decrease
• Move to Slovakia removes Russian geopolitical
risks

8. Impact on Profitability & Revenue + Comparison

I M PA C T O N P R O F I TA B I L I T Y &
R E V E N U E + C O M PA R I S O N
• Short-term profitability drops due to high CAPEX and
slower production
• Long-term revenue becomes stable with full EU market
access
• Better brand image and stronger ESG compliance
• Lower logistics costs due to central EU location
• Slovakia offers best balance vs Poland, Romania, and
Czech Republic
• Strong labor availability, lower costs, and excellent
logistics

9. ImplementationPlan

I M P L E M E N TAT I O N P L A N
• Stage 1. Preparation
Negotiations with the Government of Slovakia. Selection of a site for
construction. Possibly a SEZ in Košice. Signing preliminary contracts with
Suppliers. This stage lasts from 0 to 6 months.
• Stage 2. Construction.
Obtaining all permits.Zero construction cycle. Installation of the main
structures. Readiness of buildings for equipment installation. This stage
lasts from 6 to 18 months
• Stage 3. Start-up of the plant and reaching the planned capacity.
Start-up work. Installation, debugging of equipment and technological
processes and standards. Certification.

10. THANK YOU

T H A N K YO U