Switzerland in 2004

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Case Details:

Case Code : ECOA119
Case Length : 14 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : Switzerland
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

One of the smallest but most prosperous nations in the world, Switzerland symbolised democracy, fairness, stability, quality, meticulousness, punctuality, thrift, efficiency, openness and political neutrality. Swiss watches, stood for clockwork reliability.

Affluent people could confidently entrust their money to a Swiss bank. The country was well known for its hospitality. Swiss chocolates were among the most delicious in the world. Switzerland had a Moody's AAA credit rating. The Swiss franc was considered a safe haven.

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For a small, landlocked country of 7 million people with a difficult geography and no natural resources to speak of, the Swiss economy had done remarkably well for several decades. But since the early 1990s, Switzerland's income per head had been almost static. Many other rich countries had grown faster and overtaken Switzerland. One reason for this trend was the country's heavy dependence on exports. The country had suffered badly when the dotcom bubble burst, stockmarkets collapsed and other economies slowed down...

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